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Corporate
Directory
DIRECTORS
Kevin Tomlinson
Non-Executive Chairman
Stephen Parsons
Managing Director
Michael Naylor
Executive Director,
Chief Financial Officer
Fiona Robertson
Non-Executive Director
Shannon Coates
Non-Executive Director
Joint Company Secretaries
Amber Stanton
Maddison Cramer
Principal & Registered Office
Ground Floor
24 Outram Street
West Perth, WA 6005
P: (08) 6373 9000
Website
www.bellevuegold.com.au
ASX Listing
ASX Code: BGL
Australian Business Number
99 110 439 686
Legal Adviser
HWL Ebsworth Lawyers
Level 20, 240 St Georges Terrace
Perth WA 6000
Auditor
Ernst & Young
11 Mounts Bay Road
Perth WA 6000
Share Registry
Computershare Investor Services
Level 11, 172 St Georges Terrace
Perth WA 6000
P: 1300 850 505
Contents
Values & Vision
Bellevue Gold Snapshot
Chairman’s Letter
Operations Review
Sustainability
People & Culture
Social & Community
Development & Early Works
Exploration
Resources & Reserves Statement
2
4
6
8
10
12
20
22
26
38
Competent Person’s Statement, Notes and Cautionary
Statements
42
Directors’ Report
Directors’ Details
Remuneration Report (Audited)
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
44
46
59
81
82
84
85
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87
88
110
111
ASX Additional Information
116
Values & Vision
At the start of 2020, BGL surveyed our
workforce for their views in setting
our PACE core Company values and
shaping our organisational culture.
We are very proud of the values,
vision and mission we developed as
a result of this survey. We strongly
believe that our values accurately
reflect the Bellevue Gold identity.
P
Passion
C
Community
Each day we will pursue our mission with passion
and belief – a fierce determination to succeed
and an excitement about what we do.
The health, safety and wellbeing of our community
is critical to our success. This includes respect for
our people, stakeholders and the environment.
A
E
Accountability
Excellence
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.
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.
2 Bellevue Gold Limited
2 Bellevue Gold Limited
Bellevue Gold’s Vision and Mission
At Bellevue Gold we strongly believe that a clear vision is the driving force behind our every success.
Our vision is simple: ‘To be one of Australia’s leading gold producers and explorers.’
Our mission, ‘To be a sustainable, high margin and growing organisation which is an employer of choice,’
reflects our commitment to ensuring we are a sustainable operation that delivers returns to all our
stakeholders and is aligned with, and supportive of, the concept of shared value.
Our Vision
Our Mission
To be one of Australia’s leading gold producers
and explorers.
To be a sustainable, high margin and growing
organisation which is an employer of choice.
Bellevue Gold staff on site in February 2021.
Values & Vision 3
Values & Vision 3
Bellevue Gold Snapshot
One of Australia’s highest-grade gold mines,
with exciting exploration potential and an
accelerated development timeline.
GRADE AND SCALE
Forecast to be one of the highest-grade, lowest cost
mines with LOM All-in Sustaining Costs of A$1,014/oz; and
one of the fastest growing gold developments globally in
a Tier 1 mining jurisdiction.
3.0 Moz
9.9g/t
Global Resource
at
PROFITABILITY
$
B
1.8 72
%
Free
Cashflow
Internal Rate
of Return
The project is forecast to deliver sector leading
EBITDA Margins of 66% and A$1.8b of free cashflow
pre-tax (assuming a A$2,400/oz gold price) over
the initial 8.1yr mine life.
FULLY FUNDED
M
$
200
Debt Facility
Underwritten and credit-approved project
loan of A$200M from leading resource
specialist bank Macquarie Bank Limited.
4 Bellevue Gold Limited
1. Refer to ASX announcement dated 2 September 2021
GROWTH
$
18 /oz
CASH
~$
202 M
STRONG ESG FOCUS
Low GHG
Emissions
Further upside potential with multiple drill rigs turning,
low discovery costs to date of A$18/oz and a resource that
has grown at a compound annual growth rate of 81%.
Proforma cash of ~A$202m2 to fully fund the
development of the Bellevue Gold Project, increase
Resource/Reserves and progress exploration.
Forecast to be the lowest GHG emitter on a per ounce basis
on the ASX with a vision to be one of Australia’s best-in-class
‘Green and Gold’ miners.
Bellevue is forecast to have the least total Scope 1 emissions
of any major off-grid gold mine in Australia and to have one
of the cleanest power supplies for any gold mine in Australia.
For the same carbon emissions, Bellevue is forecast to produce
3.6 ounces of gold compared to 1 ounce for the average
Australian gold mine.
2. Unaudited as at 31 July 2021 and post adjustment for creditors.
Bellevue Gold Snapshot 5
Chairman’s
Letter
Dear Shareholders
It is my pleasure to present
to you the Annual Report of
your Company for the 2021
financial year.
Over the past 12 months,
Bellevue has been
transformed from a highly
successful explorer to a
project developer, marking
another milestone in our
strategy to unlock the value
of our exceptional asset.
6 Bellevue Gold Limited
As with most value-creating resources companies, Bellevue’s
achievements have been underpinned by our success with
the drill bit. Outstanding drilling results have driven our growth
since day one, taking the Company from a junior explorer to
an emerging gold producer.
The extensive gold Resources and Reserves we have
established at the Bellevue Gold Project have provided the
platform for our Company’s dual track exploration and project
development strategy. As a result, we now have two very clear
avenues for creating value for all stakeholders: ongoing growth
in the resource and the achievement of key development
milestones which advance the project towards production.
In the year under review, our exploration team continued to
generate exceptional results which not only drove further growth
in our total Resources, but also resulted in the completion of our
first Indicated Resource and a maiden Reserve which we recently
upgraded. By the end of the year, their outstanding work had
culminated in the total Resource surging to three million ounces
at 9.9g/t. This superb result included a 34 per cent increase in
the Indicated Resource to 1.4Moz at 11g/t.
The benefits of the Resource growth have been reflected in the
recently released Stage 2 Feasibility Study which has delivered
an increase in production rate, life of mine and resulted in
significantly improved project economics relative to the Stage 1
Feasibility Study for minimal increase in capital cost.
The Company is now fully funded to production, with the
underwritten and credit-approved project loan of A$200M
from leading resource specialist bank Macquarie Bank Limited.
At the heart of the Company’s two-pronged strategy is one
of the most far-reaching Environmental, Social and Corporate
Governance (ESG) frameworks of any ASX company in our peer
group. As Chairman, I believe Bellevue’s genuine commitment
to effective ESG policies, ranging from diversity targets and
environmental measures to corporate governance and
community contribution, is sector leading.
Our ESG policies are so embedded in our culture and
strategies that they are an integral part of our overall
decision-making process. The ESG implications are a
fundamental and unavoidable consideration in every
aspect of our strategy and conduct.
The success we have enjoyed in implementing our two-
pronged growth strategy ultimately emanates from two
sources. First is the exceptional quality of the mineralised
system we are blessed with at Bellevue. The size, the
grade and the geometry, among other highly favourable
characteristics, become more obvious with virtually
every hole we drill. Second, the quality of this system is
matched by the quality of our team. Their work on every
front, from raising the capital to the way it has been
spent on this extraordinary exploration campaign and
the project development streams, has been world-class.
We are fortunate to have these people and on behalf of
the Board, I thank them for their tireless commitment to
the Bellevue cause.
Finally, I would like to thank our shareholders, whose
support on so many levels has enabled our team to get
on with their business. I wish you all the best for the new
financial year.
Kevin Tomlinson
Non-Executive Chairman
Chairman's Letter 7
Operations
Review
8 Bellevue Gold Limited
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Operations Review 9
Sustainability
Bellevue Gold is committed
to operating sustainably,
and it aims to be Australia’s
most profitable ‘Green
and Gold’ miner. Our
vision, mission and PACE
core values have been
established and are
now translating to real
differences across the
environmental, social and
governance (ESG) matters at
Bellevue Gold. During 2020,
the decision was made
to release a standalone
Sustainability Report and
align to the United Nations
Sustainable Development
Goals (UN SDGs) with a
view to also adopt the
recommendations of the
Task Force on Climate-
related Financial Disclosures
(TCFD) prior to production.
Bellevue Gold’s 2020
Sustainability Report was
the first sustainability report
published by an Australian
resources development
company before releasing
a feasibility study or
generating revenue. This is
a testament to the team at
Bellevue Gold and the vision
to become Australia’s next
‘Green and Gold’ miner.
10 Bellevue Gold Limited
Bellevue Gold recognises that shared value is paramount for any
sustainable organisation. We believe shared value is creating economic
value in a way that also creates value for society by addressing its
needs and challenges; this then creates a more prosperous environment
in which to operate, making a business more sustainable and resilient.
The concept of shared value comes with a commitment to actively
regenerate landscapes in line with the principles of the circular economy.
We will pursue sustainable development to deliver on the needs of the
present, without compromising the needs of future generations, and to
integrate ESG considerations into all aspects of our decision making.
We seek to maintain our strong track record of discovery success while
progressing the Bellevue Gold Project towards production. A key feature
of our work will be the assessment of climate change impacts and
the identification of opportunities to minimise adverse environmental
effects and maximise community benefits. BGL is also committed to
best practice when considering human capital, social capital and
good governance in its operations.
Our recently established Health, Safety and Sustainability Committee is
responsible for overseeing all aspects of sustainability at Bellevue Gold,
including our sustainability strategy, target-setting, risk assessments,
and initiatives pursued in line with our sustainability ambitions and
PACE core values.
By embedding climate change and sustainability considerations into our
pre-production efforts, we are confident that the Bellevue Gold Project can
set a positive example in our industry. We are fortunate to be starting with
a clean slate, without legacy issues, which should translate to improved
opportunities to implement climate risk reduction options in the project.
Throughout 2020/21, sustainability has been integrated across the business.
This was strongly evident in the Stage 1 and Stage 2 Feasibility Studies,
which included a thorough analysis of forecasted greenhouse gas (GHG)
emissions and energy use, including a comparison to our peer group –
which forecasts Bellevue Gold to have the lowest carbon intensity of any
gold mine in Australia. The Stage 2 Feasibility Study also highlighted our
economic value add, with over $88 million spent in economic contributions
since the discovery hole and a forecast further spend and economic
contributions over the initial 8.1 year mine life of $2.3 billion. Bellevue Gold
is and will continue to contribute to the economic success of our region,
state, and country – by delivering returns to our shareholders, employees,
governments and local communities. In addition to the $88 million expended
during the exploration and pre-development phase, and as stated in
our Stage 1 study, we are forecasted to be spending over $200m in pre-
production capital at the project. As we build, commission, and then
operate the Bellevue Gold mine we expect to employ up to 380 employees.
This is an important economic contribution, but to attract
skilled and passionate staff we need to continue to foster our
positive culture. We believe that a positive company culture
is vital in attracting and retaining the right staff and we are
proud to have high retention rates of our staff, which is further
bolstered by our employee equity incentive scheme.
Sustainability reporting
Bellevue Gold is committed to operating sustainably, and
transparently disclosing and promoting our ESG data. This
means reporting on the material topics to our business and
on the topics relevant to our stakeholders. Sustainability
reporting is an ever-evolving field and Bellevue Gold
aims to be best in class. This means we will continue
to report in alignment with the UN SDGs and the TCFD
recommendations, and in our upcoming 2021 Sustainability
Report we intend to also report in alignment with the Global
Reporting Initiative (GRI) and the Sustainability Accounting
Standards Board’s (SASB) reporting for the ‘Metals and
Mining’ sector. This decision follows a comprehensive review
of international expectations and assessment of industry
trends. Bellevue Gold is also considering other sustainability
reporting frameworks which may be relevant in future
years once the Company is in production, such as the
International Cyanide Management Code and the World
Gold Council’s Responsible Gold Mining Principles.
Responding to investors
Bellevue Gold is investing in sustainability because this
is the right thing to do, and we believe that we can be
industry leaders. Additionally, we are investing time in
sustainability and data collection in order to respond to
investor expectations, such as those publicly espoused
by BlackRock, Inc.1 Societal trends are demanding
greater focus on sustainability, especially on climate
change, employee diversity and modern slavery. During
the last year, we have had focused questions from major
international investors and Bellevue Gold recognises
these demands and will continue to increase its
disclosure as further policy initiatives are rolled out
on the Company’s pathway to production.
ESG initiatives
As part of our pathway to production and further
development of our sustainability practices, Bellevue Gold
is considering and implementing additional sustainability
initiatives, such as reporting to mandatory and voluntary
standards, delivering specific training and changing our
business practices - and then providing transparent
disclosure on these ESG initiatives.
Figure 1: Forecast life of mine economic contributions by Bellevue, based on the Stage 2 Feasibility Study.
Procurement (goods & services)
Bellevue salary and wages
State and Federal taxes and government fees
Royalties, donations and community investment
1. https://www.blackrock.com/corporate/literature/publication/our-2021-stewardship-expectations.pdf
Sustainability 11
People &
Culture
During the year, Bellevue
Gold continued its Human
Resources strategy of
becoming an ‘Employer
of Choice’ through
building an organisation
with a great workplace
culture and environment
that attracts and retains
superior employees. We
outline in more detail
below how we have
implemented policies and
practices to support us
achieve our objective.
12 Bellevue Gold Limited
Recruitment process
Bellevue Gold has thus far been successful in recruiting a high calibre
workforce through the use of our recruitment methodology that
identifies preferred candidates who suit the company culture, core
values and have the right technical knowledge required for their role.
Our employees play an essential role in supporting the organisation to
achieve its objectives and vision of becoming one of Australia’s leading
and most profitable gold mining producers and explorers.
With the Mining and Resource sector currently experiencing a boom,
skills shortages are being experienced in Western Australia. Now more
than ever employees have an opportunity to be selective about their
next role and career move and the type of organisation they want to
work for. At Bellevue Gold we believe our main competitive advantage
lies with our people, and we don’t take for granted how lucky we are to
have such a dedicated workforce of employees whose personal values
align to our core Company values of PACE: Passion, Accountability,
Community, and Excellence. As such we are selective about the type
of people we want to join our team in order to maintain the great
culture we have built to date.
In exchange Bellevue offers a truly progressive workplace, with some
of the highlights mentioned below:
• Bellevue Gold is committed to operating sustainably. We seek to
minimise our environmental footprint as we progress the project
into production and are on track to be one of the “greenest” gold
operations in Australia.
• Gender diversity is currently at 42%, and Indigenous diversity is at
5%. We value and promote diversity, equality and inclusion, and
seek to build an organisation which reflects the diversity seen in
the general population.
• A truly inclusive workplace where everyone’s ideas are welcomed,
valued and considered. Our positive workplace culture was rated
highly by employees in the BGL Culture Survey.
• Ongoing job security, with our Feasibility Studies outlining a robust
long-life project and an exciting future for the organisation.
• An employee incentive program which offers employees equity in
the organisation, linked to performance, so that all employees get
to share in the success of the organisation and are rewarded for their
efforts and hard work. 88% of employees currently hold performance
rights in the organisation.
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 are not discriminated against
on the basis of race, ethnic origin, religion, colour, age,
gender, sexual orientation, marital status, disability,
political affiliation or any other category prohibited
by Australian laws and regulations.
• A positive experience for applicants that will enhance
the Company’s reputation.
• That the BGL Equal Employment Opportunity & Diversity
Policy is applied, which recognises the many benefits to
be realised by increasing diversity in our organisation.
• We are attracting the right individuals to the organisation
by conducting a thorough recruitment process.
Remuneration strategy
As competition increases within the labour market,
Bellevue Gold has taken proactive steps to attract,
retain and motivate top talent. Bellevue Gold has an
Employee Remuneration and Benefits Policy, which
outlines our commitment to conducting a formal annual
remuneration review each year to ensure we continue
to offer competitive remuneration to our employees
aligned to market rates. During this process we complete
a thorough review, considering both internal and external
comparisons, to support Bellevue in attracting and
retaining a highly skilled workforce. This is a way for BGL
to recognise and reward employees and demonstrate
our investment in each of our employees’ future.
Employee short-term incentive program
Bellevue Gold understands that how it chooses to pay
its employees and articulate its values must be aligned
with the Company’s business objectives and recognises
that this underpins the type of people it attracts and the
results they deliver. The Company offers equity securities
in BGL to certain eligible employees under a short-
term incentive program on an annual basis. Under the
program, eligible employees are entitled to additional
remuneration in the form of equity securities which
equate to a percentage of their total fixed remuneration
and which vest based on employee performance in the
annual performance 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.
BGL is currently in a strong position with a unique offering
which has enabled us to attract the right calibre of high
performing employees. Even in a competitive employment
market, we will continue investing in our people and
building on our company culture as we believe this forms
an essential part of our employee value proposition.
On site consultation with traditional knowledge holders.
People & Culture 13
Equal employment opportunity
& diversity commitments
At Bellevue Gold we promote diversity, equality,
and inclusion in all that we do, and we seek to build
an organisation which reflects the diversity seen in
the general population. Diversity refers to all the
characteristics that make individuals different from each
other, including attributes such as religion, race, ethnicity,
language, gender, sexual orientation, disability and age.
The ages of our employees range from 18 to 63, with an
average age of 37 years old. Our workforce is made up
of various nationalities working together to collectively
deliver on the Company objectives.
We believe our success can be attributed to the
Company wide commitment and energy focused on
delivering on these objectives. Bellevue Gold has put
policies in place which demonstrate our commitment
to diversity and align with our BGL PACE core values.
We implemented a Parental Leave Policy which supports
both primary and secondary carers to take paid time
off work to focus on family responsibilities. We also
implemented a Flexible Work Policy which enables
employees to create a balance between their family
caring responsibilities and their work responsibilities,
which we know supports mums in particular to return
to and/or stay in the workforce.
During the reporting period, BGL appointed three
Diversity Ambassadors within the organisation to meet
regularly to promote diversity initiatives within the Company
and work in alignment with Human Resources to ensure our
commitment to inclusion and diversity is at the forefront of
all we do. Activities undertaken during the year include:
• Participating in a high school education program
which promotes careers in mining, especially
targeting young females to enter the industry.
This program involved BGL employees facilitating
interactive presentations with high school aged
students regarding gold exploration and mining.
BGL employees also talked to students about their
personal experiences working in the industry and
promoted careers in mining with an emphasis on
opportunities for women.
• Ensuring the BGL diversity statement is included
in all BGL employment advertisements.
• Appointing an Indigenous Mentor to provide support
and guidance to our Indigenous workforce.
• Providing resources to BGL leaders for appropriately
By setting measurable objectives and reporting on
them, BGL is demonstrating its genuine commitment to
creating a diverse and inclusive workplace and building
an organisation which provides equal opportunities for
all its employees.
To ensure meaningful and lasting changes take place,
BGL is committed to working towards implementing
long term strategies to be embedded across the
organisation. It is important these strategies (including
policies, processes, culture and ways of working) consider
how BGL can best support and enable diverse talent,
increase retention and build a stronger and more diverse
leadership pipeline.
The results of all these efforts are reflected in the below
Table 1 which illustrates how BGL currently stands against
the Workplace Gender Equality Agency’s (WGEA)
averages for the mining sector.
Table 1: Diversity at BGL as at 30 June 2021 in
comparison to current mining industry averages
managing Indigenous employees (with specific regard
to cultural specifications and communication).
Diversity
Employee female
participation
Board female
representation
Gender Diversity
in leadership roles
(excluding executive
management team)
Gender Pay Gap
BGL
42%
WGEA:
mining sector
18%
40%
19.6%
33%
13%
20.2%
13.6%
Indigenous participation
5%
4.7%
(2019 WA Resources
Sector CME Report)
• Attending University Career Days. Employees from
BGL met with university students to promote careers
in mining, with a particular focus on encouraging
opportunities for women.
• Regular policy reviews to ensure inclusive, gender neutral
language is used throughout Company documents.
It is a priority for BGL to ensure that we continue to place
an emphasis on diversity within the organisation. During
the year, the BGL Board set measurable objectives for
female and Indigenous employment, which are disclosed
publicly on the principle that “what gets measured, gets
done”. We set quite ambitious targets for our first year
and are pleased to report that each target has been
met, see below Table 1.
14 Bellevue Gold Limited
People strategy
In addition to the above-mentioned strategies
and policies BGL also commits to:
• Annual performance reviews for all employees
• Annual remuneration reviews for all employees
• Annual gender pay equity audit
• Employee development – training and upskilling
opportunities, study support, succession planning
• Awareness training – ensure all employees attend
training annually on:
- Inclusion and Diversity at BGL
- Bullying and Harassment Policy
- Indigenous Cultural Awareness training
•
Indigenous training program – ongoing partnership
with Clontarf Foundation (more details below)
• Paid Primary and Secondary Carer’s Leave for both
men and women
• Mentoring program – select employees take part
in mentoring programs each year. Where possible
BGL focuses on succession planning and creating
pathways for internal promotion, and as such we
need to ensure we have the right guidance and
mentoring in place for employees to develop.
We currently have three BGL employees participating
in the AusIMM mentoring program.
People & Culture 15
Graduate program
Our passionate and dynamic leaders at BGL are focused
on building and developing a great team to share in
Bellevue Gold’s success and to be part of the Company’s
exciting future. Critical to our success is the recruitment and
development of university graduates. In 2021 BGL employed
three Graduate Geologists (two females and one male)
who will be the first to complete the BGL graduate program
which involves on-the-job learning through a rotation
schedule in various areas of the organisation.
“ Bellevue’s graduate program has
been fantastic, with opportunities
to experience different aspects of
gold exploration complemented
by exceptional guidance.”
Hannah, Graduate Geologist at BGL
BGL Graduate Geologist Hannah is assisting the
Regional Geology Team for the drill programme.
Vacation student program
BGL has initiated a Vacation Student Program in 2021 for the first
time, which ran over Western Australia’s winter university break in
June/July. BGL was fortunate enough to have engaged a female
engineer from the WA School of Mines (WASM), to work on site and
provide support and gain some hands-on experience over the
program. The opportunity was really valued by Eva, pictured left,
and she is excited to have accepted a permanent role commencing
with BGL as a Graduate Mining Engineer in December 2021.
“ I am incredibly grateful for everything
that I’ve experienced with BGL over the
winter. It was very delightful and unique
to be a part of a project in development
stage. I’ve not only had a great time on
site, [I’ve] also cemented my passion
about the mining industry and learnt new
skills from my peers. I cannot thank my
leaders enough who have given me endless
opportunities to grow and facilitated my
exposure to underground mining.”
Eva, Mining Engineer Vacation Student
BGL Mining Engineer Vacation Student.
16 Bellevue Gold Limited
The Bellevue Gold and Clontarf
indigenous employment program
Bellevue Gold has partnered with the Clontarf
Foundation since 2019 to provide opportunities for
pathways to employment for Indigenous people.
We offer trainees the opportunity to gain work
experience in the mining industry to improve their
chances of gaining permanent employment. Where
an opportunity may become available at BGL, we
look to progress employees who have successfully
completed the program into permanent work.
Tyler commenced with BGL in
September 2020. Upon completion
of his trainee program he was
offered a permanent role as a Field
Technician and has been a valued
member of the Geology team since.
People & Culture 17
Strategies to support employee wellness
Bellevue Gold believes that the wellbeing of our
employees is key to our organisational success and
sustainability. Bellevue Gold has a Wellness Program
in place which delivers initiatives to encourage overall
employee wellbeing. The Company is committed to
supporting employee wellness from both a physical
and mental health point of view and has implemented
a number of initiatives in support of this over 2020-2021.
Gym contribution
Bellevue Gold contributed to our employees’ Health and
Wellness during the year by introducing an annual gym
membership reimbursement to the value of up to $1,000
for each employee. The amount will cover the cost of the
employee’s membership at a gym, pilates, yoga, boxing
or other health and fitness club/institute.
Employee assistance program
From the very early stages of the project BGL has
engaged the support of an Employee Assistance
Program (EAP) provider to ensure all employees have
access to a confidential counselling service to help
individuals 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.
Mental health first aid training
With 1 in 5 Australian adults experiencing a common
mental health challenge each year and, being equipped
with mental health first aid skills will enable individuals
to support a friend, family member or co-worker when
they are developing a mental health challenge or are in
a mental health crisis, which can make a real difference in
a person’s life. BGL is endeavouring to have all employees
trained and qualified as Mental Health First Aiders, with
multiple training sessions already delivered throughout
the reporting period.
RU OK? Day
Annually BGL holds events at both the Perth office and
on site to acknowledge RU OK? Day, to raise awareness
of the importance of mental health and to encourage
meaningful conversations between colleagues to check
in on each other. We also take the opportunity to remind
everyone that BGL has an EAP program should anyone
require support with a mental health issue.
COVID-19 response
In 2020/2021 BGL continued to review its working practices
due to the outbreak of the global pandemic. In response
to COVID-19 BGL swiftly adopted a COVID-19 Response
Guideline which included implementing work from home
practices during government mandated lockdowns. The
option to work from home to support flexible working
arrangements and to reduce the health risk associated
with COVID-19 continues to be exercised by employees
and we have adapted our work styles to accommodate
remote working options for employees where possible and
requested. Where required, BGL upgraded its systems
and practices to enable employees to work remotely and
remain equally as productive to ensure the workforce
continued to thrive during these unprecedent times and
ongoing disruptions caused by COVID-19.
18 Bellevue Gold Limited
Culture survey and engagement
BGL offers all its employees who are leaving the business
the opportunity to participate in an exit survey. This is
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 experiences of working at the organisation.
In December 2020 BGL conducted an independent
culture survey of all its employees. The survey was an
opportunity for employees to have their say on our
safety culture, employee engagement, values alignment,
relationship with immediate manager/supervisor,
executive leadership team and overall culture.
The engagement survey was distributed to all Bellevue
Gold employees resulting in a 93% response rate.
Overall, the survey results were very positive and
indicated Bellevue Gold employees are generally
satisfied in their respective roles and with the culture
of the organisation and its leadership group.
Employee engagement index
would promote
Bellevue Gold
want to stay at
Bellevue Gold
are inspired to go
above and beyond
A free text section asked employees to use any words they
could think of to describe the culture at Bellevue Gold.
The larger the word, the more frequently it was mentioned.
People & Culture 19
Social &
Community
Bellevue Gold regards engagement, communications and consultation with the community as a core value to its
business. Bellevue Gold believes this core value will assist the Company to maintain its social license to operate and
better inform its key stakeholders. Bellevue Gold aims to leave a lasting legacy of improved outcomes through its
community investment program with local communities and its wider corporate sponsorship programs, concentrating
on providing better life outcomes and creating a sustainable community.
As part of Bellevue Gold’s commitment to community
consultation we have:
Bellevue Gold’s Community Relations program has also
funded a number of programs including the following:
• Held various meetings with key stakeholders
• Leonora High School Meals program
• Enabled site visits for local stakeholders
• Nyunnga-gu Woman Group
• Donated items that were no longer required by sites
• Leonora Golden Gift sponsorship
to community groups
• Bellevue Gold Charity Cricket Day
• Provided sports equipment to Fair Game to distribute
throughout regional Western Australia
• Conducted several Aboriginal Heritage Surveys
and consultations
20 Bellevue Gold Limited
School children: Leonora High School taking
part in the schools meal program.
Leonora high school meals
program renewed
The decision to continue to support this
program was based on evidence that
suggested providing meals to students
would increase school attendance and
reduce the local crime rate.
Participants at the Charity Cricket Day.
Leonora golden gift
In June 2021 Bellevue Gold was a
proud sponsor of the Leonora Golden
Gift and participated in the event
for the first time. The Leonora Golden
Gift attracts hundreds of competitors
from around the State in what is the
one of the richest foot racing events in
regional Western Australia. The event
also attracts a number of tourists and
support people who make Leonora their
home for the long weekend in June.
School children: Leonora High School taking part in the schools meal program.
Charity cricket day
Bellevue Gold was able to hold its
annual Charity Cricket Day in March
2021. The event is held as a fundraiser
for two different charities every year.
In 2021 the two charities were the
Leonora Hospital and the Purple Truck
program, which supports access for
regional people to a self-contained
dialysis unit. Bellevue Gold would like
to thank all the participants in the day’s
activities for their generous donations.
A group of runners participating in Leonora Golden Gift.
People & Culture 21
Development
& Early Works
The establishment of safety systems and processes has continued to
evolve with the development of the project over the reporting period.
Establishment of emergency response systems and training to support
the project have been formed and continue to be reviewed and tested.
There has been one Lost Time Injury (LTI) event at the project to date,
resulting in the 12-month LTI frequency rate climbing to 3.2 at the end
of June.
The COVID-19 global pandemic has continued to affect the industry
and the general community throughout the period. However, operational
practices and controls implemented have allowed the project to continue
to operate and have resulted in minimal overall effect on the workforce
and site-based activities. No employee of Bellevue Gold or any of its
contractor partners was diagnosed with COVID-19 during the period.
During the year, Bellevue
Gold Limited continued to
advance on its dual track
strategy as it transitions
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 de-risk the
project throughout the year
as the ongoing exploration
activities worked towards
further delineation and
definition of the growing
Resources. The release of
the Stage 1 Feasibility Study
in the March quarter, and
then the Stage 2 Feasibility
Study in September 2021,
highlighted the potential for
sector leading profitability
with best-in-class ESG
metrics and an enviable
organic growth pathway.
Bellevue staff inspecting the underground development
following establishment of the Paris Portal in September 2020.
22 Bellevue Gold Limited
Decline development breaking through into the historical workings.
The underground development works commenced with
the successful establishment of the new Paris portal in
September to access the historical workings following the
appointment of specialist underground mining contractor
GBF Mining and Industrial Services Pty Ltd, part of the
Macmahon group of companies (GBF/Macmahon) to
complete Stage 1 of the early works.
Multiple drill platforms have been established allowing
for the commencement of underground diamond
drilling following the appointment of Australian
Underground Drilling Pty Ltd (AUD) in December 2020.
The commencement of drilling from underground has
accelerated the drilling rates and reduced the costs
associated with drilling the Resource.
The ongoing advancement and rehabilitation of the
decline face and associated lateral development
continued throughout the period with over 1,868m of
decline developed and 434m of lateral development
completed. In total, just over 2,300m has been advanced
over the 10 months since the milestone event of cutting
the new portal occurred.
The required infrastructure of the primary ventilation
circuit and electrical distribution networks in tandem
with the established dewatering infrastructure supported
the project to advance over 230 meters per month on
average in the single heading development. The current
water levels in the historic mine are below the planned
development activities for the Stage 1 works and ongoing
dewatering will continue throughout the coming year.
The appointment of highly experienced mining executive
Rod Jacobs to the newly-created role of Project Director
occurred in mid-March 2021. Mr. Jacobs will drive
the optimisation of the Stage 2 Feasibility Study and
construction of the required infrastructure to bring the
high-grade Bellevue Gold Project into production.
The Company released a Stage 1 Feasibility Study in
February 2021 which was subsequently upgraded in
the Stage 2 Feasibility Study released in September
2021. The upgraded study envisages a 1,000,000 tonnes
per annum conventional gravity and CIL processing
facility and predominantly underground LOM Resources
and Reserves.
The project is forecast to deliver robust free cashflows
and exceptional profit margins with a forecast production
of 200,000 ounces on an annual average over years one
to five and averaging 183,000 ounces per annum over an
8.1 year LOM.
Development & Early Works 23
The key financial forecasts are for the project to deliver
$1.8 billion of pre-tax free cashflow and EBITDA of $2.4
billion over the LOM assuming a gold price of A$2,400.
The project also benefits from an exceptional IRR of 72%
pre-tax and a rapid payback period of only 1.4 years.
The Stage 2 Feasibility Study defines a Probable Ore
Reserve of 5.3Mt @ 6.1g/t gold for 1,040,000oz (based
on a gold cut-off grade price of A$1,750/oz) utilising
conventional mechanised underground mining methods.
The Feasibility Studies have been managed in
consultation with highly regarded leading independent
consultants engaged for all key aspects.
The Project has continued to show its significant growth
potential, with new discoveries and additional high-
grade mineralisation continuing to be identified at the
project. The Company is continuing to invest in drilling
to deliver further growth subsequent to the Stage 2
Feasibility Study as well as commencing grade control
drilling ahead of development.
The focus for the coming year will be to finalise the
mine design and schedules that will deliver a positive
economic outcome which can further advance the
project. Continuing to advance the permitting of the
project whilst developing the underground decline to
the designed location to access exploration drill
platforms will be a major focus.
Early works are planned to continue the exploration
development, with village construction scheduled
to commence in the second half of 2021 along with
placement for long lead items such as ball mills.
Traditional owners and Senior Wati invited underground to inspect progress development of the project.
24 Bellevue Gold Limited
Development & Early Works 25
Exploration
Bellevue Gold Project, Western Australia
The Company has recently released the Stage 2 Feasibility Study for the
Bellevue Gold Project, located 400km north west of Kalgoorlie in Western
Australia. The project sits within a prolific high-grade gold and nickel district
within the Wiluna-Norseman gold belt and 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 quality 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.
Figure 2: Regional overview of the Bellevue and Yandal
Gold Projects, Western Australia.
High-grade gold has been
previously mined at the
project through to 1997 from a
predominantly underground
operation targeting the
Bellevue Lode. When the
operation shut down around
800,000 ounces of gold
had been produced at a
reported head grade of
~15g/t. During the mine’s
operation very little exploration
drilling was completed and
following closure, a hiatus
of almost 20 years with no
effective exploration ensued
before Bellevue Gold Ltd
recommenced activities at the
project in late 2016.
Since starting drilling at the
project the Company has made
a number of major discoveries
in the vicinity of the old mine
from surface with analogous
mineralisation to that which
was exploited from the historic
Bellevue Mine.
26 Bellevue Gold Limited
• Significant new high-grade discoveries in the Deacon
Corridor advanced to Resource status; in particular at
the Marceline and Deacon North targets. The Deacon
Corridor now totals 1.3Moz of the 3.0Moz Global Resource
and remains completely open for further growth.
• New high-grade discovery at the Armand Lode
(part of the Bellevue structure) added to the Resource.
Armand remains open for further growth.
• Advancement of the exploration pipeline with new
major targets identified in the EIS drilling; to the east
of Deacon, at the Lucien target; beneath the Bellevue
lode system; and at the Lucknow target located to the
north of the Bellevue lode system. Ongoing discovery
to provide a foundation for future growth.
• De-risking of the Resource through the completion of
first grade control drilling at the Tribune area with drilling
defining exceptional grade and continuity in the area of
assays received to date. The grade control is a key step
as the Company moves towards project development.
• Establishment of underground drilling services, with
two diamond rigs operating by the end of the financial
year; delivering a substantial saving in drilling costs
and increase in production.
• Recruitment of an experienced Underground Geology
Manager and establishment of an underground
geology team to advance the project development.
• Standout drill results received during the year include:
DDUG0037
DRDD684W3
DRDD545
DRDD544
DRRC337
5.6m @ 62.7g/t gold from 496.4m
12.5m @ 18.8g/t gold from 704.7m (including 0.3m @ 536.2g/t
gold from 716.9m) and 0.3m @ 16.3g/t gold from 726.6m
8.3m @ 32.1g/t gold from 358.5m
6.5m @ 23.4g/t gold from 384.8m
5m @ 76.4g/t gold from 55m
The 2021 financial year has seen the Company maintain
the benchmark established in previous years for new
discovery. The Resource continues to grow and during
the financial year a further 800,000 ounces of high-grade
resources were added to the project. The Company also
reported its maiden Indicated Resource, and subsequently
converted a further 540,000 ounces to Indicated category
during the reporting period, increasing the project
Indicated Resources to 1.4 Moz @ 11.0 g/t.
The Bellevue Gold Project Global Resource now totals
3.0 Moz @ 9.9 g/t. Resource development drilling is now
progressing from underground drill locations allowing
the Company to maintain an excellent all-in discovery
cost of $18 per ounce. New step out discovery is being
maintained from surface diamond drilling and the
Company has begun to invest in grade control drilling
ahead of mining development.
One of the central pillars of the Company strategy is to
continue to invest in drilling ahead of project development,
with the twofold purpose of adding organic growth while
de-risking the project ahead of commissioning.
During (and immediately after) the financial year
the Company has achieved the following:
• Announcement of a maiden Indicated Resource with
subsequent growth to 1.4Moz @ 11.0g/t gold, and an
increase in the global Mineral Resource to 3.0Moz @
9.9g/t gold. The Bellevue Mineral Resource Estimate
has been independently estimated and is based on
high-confidence diamond drilling.
• Completed a total of 315 surface diamond holes for
138,419m, 46 underground diamond holes for 25,974m
and 340 Reverse Circulation (RC) holes for 22,686m.
The total completed metres at the Project up until the
end of year is 393,006m of surface diamond drilling,
25,974m of underground diamond drilling and 34,962m
of RC drilling.
• Delivery of the Maiden Ore Reserve3 and subsequent
upgrade with the Stage 2 Feasibility Study to 1.04Moz
@ 6.1g/t gold based on the project Resources as at
July 2021.
3. The maiden Ore Reserve was based on 1.04Moz @ 11.4g/t of Indicated Resources as at November 2020. Refer ASX Announcement dated 11 November 2020.
Exploration 27
Project
Resources
During (and immediately after) the financial year the Company released four
Mineral Resource upgrades. Resource development drilling during the year
has focused on the new discoveries of the Armand lode hosted in the Bellevue
Structure and Deacon North and Marceline lodes hosted in the Deacon Structure.
The Resource and Reserve Statement for the Bellevue Gold Project is reported
on page 38 of this Annual Report.
Figure 3: Oblique long section of the Bellevue Global Resource of 3.0Moz @ 9.9g/t gold, including 1.6Moz @
9.0g/t of Inferred Resource (yellow) and 1.4Moz @ 11.0g/t of Indicated Resource (light blue). The proposed
development from the Stage 2 Feasibility Study is shown in dark blue. During the financial year the Company
discovered the Armand and Marceline Lodes and significantly expanded the Deacon North Resource areas
Figure 4: Plan view of the Bellevue Global
Resource of 3.0Moz @ 9.9g/t gold, including
1.6Moz @ 9.0g/t of Inferred Resource (yellow)
and 1.4Moz @ 11.0g/t of Indicated Resource
(light blue). The proposed development from the
Stage 2 Feasibility Study is shown in dark blue
28 Bellevue Gold Limited
Figure 5: Image showing long section of just the Deacon Lode looking west with the gold mineralisation
accumulation of the block model onto the vertical plane for the Resource. Note that RED and ORANGE colours
indicate higher gold mineralisation content such as higher-grade gold and/or wider intersections. Top image is
latest Resource and bottom image is November 2020 Resource used for the Stage 1 Feasibility Study
Exploration 29
Armand, Marceline and Deacon
North – High-grade Discoveries
Close to Development
During the year the Company
made or significantly
extended three significant
high-grade discoveries; at
Armand, Deacon North and
Marceline. The new discoveries
are all located at the Northern
end of the Bellevue Lode
system and will be accessed
by a northern decline from the
Paris Portal. Drilling during the
year returned some of the best
intersections at the project
to date and highlighted the
potential for additional growth
at the project.
The Company has delivered
over 800,000 ounces of
global Resource growth during
the year from these three
adjacent areas. Refer to page
38 of this Annual Report for
a breakdown of the current
Resource by domain.
Drill results from the Armand Lode received during the reporting period include:
DRDD545
DRDD544
DRDD539
DRDD524
DRDD517
DRDD513
DRDD508
DRDD516
DRDD506
DRDD505
DRDD496
8.3m @ 32.1g/t gold from 358.5m
6.5m @ 23.4g/t gold from 384.8m
5.0m @ 15.4g/t gold from 360.2m
1.9m @ 29.7g/t gold from 379.4m
4.6m @ 13.8g/t gold from 364.8m
1.9m @ 58.0g/t gold from 380.5m
2.3m @ 27.0g/t gold from 416.3m
2.1m @ 9.8g/t gold from 369.1m
1.5m @ 14.6g/t gold from 352.2m
6.1m @ 14.5g/t gold from 457.5m
3.7m @ 26.2g/t gold from 372.3m
Figure 6: Close up showing a 900m long section of the +2.2km long Deacon
and Marceline lodes looking East (red dotted outline on Figure 5 above)
that remains open in all directions. The Indicated Resource in light blue
and recent drill piercements are annotated as large dots that sit outside
the current Reserve. Previous drillholes are shown as small dots. The Deacon
and Marceline combined Resource currently totals 1.3Moz @ 10.0g/t including
0.7Moz @ 11.6g/t of Indicated and 0.6Moz @ 8.6g/t of Inferred Resources.
Results of recent drilling expand significantly on the footprint around
particularly Deacon North. MGA94 Zone 51N
30 Bellevue Gold Limited
Drilling results from the Marceline and Deacon North areas during the reporting period include:
DDUG0037
DRDD684W3
DDUG027
DDUG0025
DRDD682W3
DRDD654W2
DRDD625
DRDD670
DRDD673
5.6m @ 62.7g/t gold from 496.4m
DDUG0005
4.0m @ 16.7g/t gold from 455.7m
12.5m @ 18.8g/t gold from 704.7m (including 0.3m @ 536.2g/t
gold from 716.9m) and 0.3m @ 16.3g/t gold from 726.6m
DDUG0010
3.5m @ 12.1g/t gold from 459.9m
DRDD589 1.5m @ 6.6g/t gold from 447m / and 1.2m @ 45.1g/t gold from 479.4m
2.7m @ 113.2g/t gold from 450.9m
10.1m @ 9.0g/t gold from 412.2m (including 2.6m @ 4.5g/t
gold from 412.2m and 5.3m @ 14.9g/t gold from 417m)
14.3m @ 5.5g/t gold from 692.3m / and 0.7m @ 19.0g/t
gold from 743.2m
0.8m @ 288.1g/t gold from 670.2m / including 0.3m
@ 768.8g/t gold from 670.2m
DRDD590
DRDD598
DRDD600
4.8m @ 20.1g/t gold from 489.4m / and 1.6m @ 22.8g/t gold
from 625.2
8.2m @ 6.0g/t gold from 379.8m and 4.9m @ 13.0g/t gold
from 462.1m
0.6m @ 22.8g/t gold from 480.1m / and 0.5m @ 40.1g/t gold from
494.6m / and 2.1m @ 45.5g/t gold from 503.4m / and 0.7m @
16.2g/t from 509.7m / and 1.2m @ 26.2g/t gold from 611.7m
3m @ 13.8g/t gold from 428m
DRDD614
4.2m @ 21.0g/t gold from 459m
2.2m @ 22.0g/t gold from 482.4m / and 3.6m @ 6.8g/t gold
from 482.4m
DRDD558
3.0m @ 14.4g/t gold from 435.6m / and 0.4m @ 72.0g/t
gold from 467m
2.2m @ 22.9g/t gold from 447.7m / and 2.7m @ 13.4g/t gold
from 491.2m / and 0.3m @ 70.5g/t gold from 579m
DRDD562
1.9m @ 30.3g/t gold from 480.7m
Figure 7: Drillhole DDUG0037
Deacon North down dip, milky
and smoky veining with 10%
pyrrhotite, trace chalcopyrite
and abundant fine grained
visible gold. Interval assayed
5.6m @ 62.7g/t gold from 496.4m
Figure 8: Drillhole DDUG0027 Deacon
North drillhole in the “gap” between
Marceline and Deacon North. 10%
pyrrhotite with trace chalcopyrite
and abundant fine grained visible
gold. Interval assayed 2.7m
@ 113.2g/t gold from 450.9m
Figure 9: Drillhole DRDD545
Armand Lode. Milky quartz veining
with narrow zones of smoky grey
quartz. There are roughly equal
amounts of 25% semi massive
pyrrhotite and trace chalcopyrite
fracture fill. 140+ flecks of visible
gold logged throughout the
interval. Interval assayed 8.3m
@ 32.1g/t gold from 358.5m
Exploration 31
Grade Control Drilling –
De-risking the Bellevue
Gold Project
The results cover the southern region of the planned Tribune open pit
with drilling on 10m x 10m spacing. Results confirm a near vertical and
laterally continuous high-grade lode in the southern end of the Tribune pit.
Pleasingly, there is exceptional continuity of the grade and geology at the
lode in the early drilling which reinforces the Company’s confidence in the
robust nature of the Resource model.
Beneath the planned Tribune open pit, diamond grade control drilling is
also currently being completed on 20m x 10m spacing with drilling again
consistently intersecting the lode at the expected position. At the end of
the reporting period, assays for the Tribune diamond drilling were pending
due to the prioritisation of Marceline and Deacon North drilling ahead of
the Stage 2 Feasibility Study.
Grade control results received from Tribune include:
DRRC337
DRRC338
DRRC341
DRRC342
DRRC346
DRRC347
DRRC350
DRRC351
DRRC357
DRRC359
DRRC362
DRRC363
DRRC415
DRRC417
DRRC418
DRRC420
DRRC424
DRRC425
DRRC426
DRRC452
DRRC454
DRRC458
5m @ 76.4g/t gold from 55m, including 2m @ 176.6g/t gold from 56m
3m @ 15.0g/t gold from 35m
2m @ 48.9g/t gold from 20m
5m @ 9.6g/t gold from 55m
5m @ 31.7g/t gold from 43m
6m @ 8.5g/t gold from 32m
2m @ 5.9g/t gold from 41m
7m @ 7.8g/t gold from 15m
1m @ 24.2g/t gold from 21m
3m @ 24.8g/t gold from 42m
5m @ 17.1g/t gold from 52m
5m @14.5g/t gold from 27m
5m @ 5.2g/t gold from 62m
4m @ 5.1g/t gold from 56m
5m @ 12.5g/t gold from 35m
2m @ 9.3g/t gold from 25m
3m @ 3.5g/t gold from 49m
4m @ 6.6g/t gold from 25m
2m @ 6.6g/t gold from 8m
4m @ 1.3g/t gold from 33m and 6m @ 7.3g/t gold from 40m
5m @ 30.5g/t gold from 28m
4m @ 4.1g/t gold from 27m
Grade control drilling
commenced at the project
late in the financial year.
The grade control drilling
will be completed at all mine
areas over the next eighteen
months and is an important
part of the Company’s
strategy to de-risk and
advance the project ahead
of production. During the
year results were reported
for the first thirty four holes
of the drilling with assays
demonstrating the excellent
continuity of the high-grade
mineralisation of the Bellevue
Lode system.
32 Bellevue Gold Limited
Exploration 33
Building the
Exploration Pipeline to
Drive Future Growth
The use of framework drilling
has been instrumental in
the discovery at the project
to date, resulting in both
the Viago and Deacon
Lode discoveries. Initial
broadly spaced diamond
drilling is used to define
potentially mineralised shears
which are then down hole
electromagnetic (DHEM)
surveyed to refine lode
positions for follow up
drill testing.
During the year the Company
continued to step out into
areas around the immediate
mine and successfully defined
a number of new advanced
drill targets. The step out
program benefited from an
Exploration Incentive Scheme
(EIS) co-funding grant from
the State Government of
$150,000 for drilling testing
the area to the east of the
Deacon Lode.
Further framework drilling
will be a key component of
the ongoing surface diamond
drilling during the next
12 months while Resource
development continues
from the underground
drill platforms.
34 Bellevue Gold Limited
Deacon footwall
Three holes have been drilled as extensions of existing drill holes, testing
the potential for conjugate faulting repeats of the Bellevue Lode system to
the east of Deacon lode. The holes are located 300m apart and drilled to
a depth of approximately 1,000m below surface.
Significant mineralisation that is analogous to the Bellevue, Deacon and Viago
lodes was intercepted in two of the three holes with new biotite, sulphide shear
zones with associated quartz veins and visible gold logged. Results include:
DRDD327 ext
DRDD309 ext
1.2m @ 9.0g/t gold from 1057m and 1.6m at 9.3g/t gold from 1096m
0.4m @ 42.3g/t gold from 646.7m
As a first pass drill program into this area, the results from the first two
holes are highly encouraging and indicate significant potential for further
discovery in this direction and at depth.
Lucien target
The Lucien target is a structural target located immediately down dip
of the Deacon Lode. A first pass program of three holes has been completed
at the target on 400m spaced platforms. Significant mineralisation was
intersected in two of the three holes and importantly a significant corridor of
conductive plates has been defined over 500m of strike associated with an
analogous orientation to the Viago shear zone at depth. The target remains
completely open. Results from the first three holes at Lucien have included:
DRDD369
DRDD137
0.9m @ 22.4g/t gold from 885.6m
2.0m @ 1.9g/t gold from 818.8m
Lucknow target
The Lucknow target is located 700m to the north of the Bellevue Lode
system. Previous historic drilling at Lucknow has been restricted to shallow
reverse circulation and a review by Bellevue Gold geologists indicated
the target was previously poorly tested. A total of five diamond holes
were completed at the target on 200m spaced lines over 600m of strike.
Significant Bellevue style mineralisation was intersected in three of the five
drill holes. Results from the first pass diamond drilling at Lucknow include:
DRDD536
DRDD503
DRDD492
1.1m @ 25.5g/t gold from 320m
0.9m @ 15.7g/t gold from 105.5m
1.0m @ 2.9g/t gold from 94.3m
The first pass diamond drill results from Lucknow are highly encouraging,
defining a large target size and confirming the presence of Bellevue-style
mineralisation with pyrrhotite mineralisation and visible gold associated
with biotite shearing.
Figure 10: Cross Section of Bellevue
lode system looking north showing
the location of Resource areas
defined to date as well as new
target areas ready for Resource
definition drilling and areas that
have limited or no drill testing.
Cross section is Centred on
6939450mN MGA94 51N
Figure 11: Long section of the Bellevue Resource estimate of 3.0 Moz @ 9.9g/t gold including 1.4 Moz @ 11.0g/t gold
of Indicated category Resources. Indicated Resources are shown in dark red and Inferred Resources are shown in
pink. The ounces per vertical metre is shown against drill metres to the left of the image. Resource growth during the
2021 financial year is shown in dark red on the ounces per vertical metre plot
Exploration 35
Regional
Exploration
Government well and Kathleen Valley
The Government Well Prospect is located approximately 7km north of the Bellevue Mine in a position where the mine
trend bends slightly to the northwest along the granite contact. Mineralisation at the prospect is associated with
pyrite and quartz veins which outcrop from the 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.
In May 2020 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.
Figure 12: Kathleen Valley and
Government Well Prospects,
located ~7km north of the
Bellevue Gold Project.
36 Bellevue Gold Limited
Yandal gold project
The Yandal Project (867km2) is a major advanced exploration project, located in an extremely well-endowed gold
province. The project is located 40km to the east of the Bellevue Gold Project and is the dominant land position
between the major projects Jundee (Northern Star Resources Ltd) and Thunderbox (Saracen Mineral Holdings).
Figure 13: Overview map of the
South Yandal Gold project showing
advanced gold targets for drill
testing located only 50km from the
Bellevue Mining Licence
Figure 14: Exploration pipeline for the Bellevue Gold Project and Regional Exploration. The Company has an aggressive
exploration budget to target further discovery and exploration success
Exploration 37
Resources &
Reserves Statement
Updated mineral resource and ore reserve estimates – Bellevue Gold project
The current Mineral Resource estimate for the Bellevue Gold Project (as at 8 July 2021) is reported below:
Global mineral resource estimate
Mineral Resource
Tonnes (Mt)
Grade (g/t Au)
Contained Ounces (Moz)
Indicated Mineral Resources
Inferred Mineral Resources
Total Mineral Resources
3.9
5.6
9.4
11.0
9.0
9.9
1.4
1.6
3.0
Notes: Figures may not add up due to rounding. Mineral Resources are reported at a 3.5g/t lower cut-off and include Ore Reserves.
Domain breakdown of indicated and inferred mineral resource estimate
Domain
Marceline/Deacon North
Deacon Main
Viago
Tribune
Hamilton/Henderson/Armand
Bellevue Remnant
Vanguard Pit
Southern Belle
Total
Indicated
Au Grade
(g/t)
Tonnes
(Mt)
Inferred
Gold
(Moz)
Tonnes
(Mt)
Au Grade
(g/t)
Gold
(Moz)
1.30
0.56
0.89
0.64
0.43
-
0.09
-
3.9
9.9
15.6
11.4
8.1
11.8
-
6.8
-
11.0
0.41
0.28
0.33
0.18
0.16
-
0.02
-
1.4
1.49
0.70
0.53
0.39
0.84
1.28
0.04
0.36
5.6
7.8
9.6
8.5
5.8
8.4
11.1
5.4
10.4
9.0
0.38
0.22
0.14
0.07
0.23
0.46
0.06
0.12
1.6
Notes: Figures may not add up due to rounding. Mineral Resources are reported at a 3.5g/t lower cut-off and include Ore Reserves.
The Ore Reserve estimates for the Bellevue Gold Project (as at 30 June 2021, based on the Stage 1 Feasibility Study)
is reported below:
Ore reserve estimate – Stage 1 feasibility study
Ore Reserve
Tonnes (Mt)
Grade (g/t Au)
Contained Ounces (Moz)
Proved Ore Reserve
Probable Ore Reserve
Total Ore Reserve
-
2.70
2.70
-
8.0
8.0
-
0.69
0.69
Notes: Figures may not add up due to rounding. Ore Reserves are reported using a $1,750 AUD gold price basis for cut-off grade calculations.
38 Bellevue Gold Limited
The Ore Reserve estimate for the Bellevue Gold Project (as at 2 September 2021, based on the Stage 2 Feasibility
Study) is reported below:
Ore reserve estimate – Stage 2 feasibility study
Ore Reserve
Proved Ore Reserves
Probable High Grade Underground Ore Reserve
Probable Low Grade Underground Ore Reserve
Probable Open Pit Ore Reserve
Total Ore Reserve
Tonnes
(Mt)
Grade
(g/t Au)
Contained Ounces
(Moz)
-
3.6
1.6
0.15
5.3
-
7.7
2.4
4.3
6.1
-
0.90
0.12
0.02
1.04
Notes: Figures may not add up due to rounding. Ore Reserves are reported using a $1,750 AUD gold price basis for cut-off grade calculations.
Previous mineral resource estimate - Bellevue Gold project
The previous Mineral Resource estimate for the Bellevue Gold Project (as at 7 July 2020) is reported below:
Global mineral resource estimate
Mineral Resource
Indicated Mineral Resources
Inferred Mineral Resources
Total Mineral Resources
Tonnes
(Mt)
2.31
4.72
7.03
Grade
(g/t Au)
Contained Ounces
(Moz)
11.6
9.2
10.0
0.86
1.4
2.26
Notes: Figures may not add up due to rounding. Mineral Resources are reported at a 3.5g/t lower cut-off.
Domain breakdown of indicated and inferred mineral resource estimate
Domain
Deacon
Viago
Tribune
Hamilton/Henderson
Bellevue Remnant
Vanguard Pit
Southern Belle
Total
Indicated
Au Grade
(g/t)
Tonnes
(Mt)
Inferred
Gold
(Moz)
Tonnes
(Mt)
Au Grade
(g/t)
Gold
(Moz)
0.43
0.89
0.64
0.26
-
0.09
-
2.3
18.0
11.4
8.1
9.3
-
6.8
-
11.6
0.25
0.33
0.18
0.08
-
0.02
-
0.86
1.50
0.53
0.39
0.66
1.28
0.04
0.36
4.7
9.2
8.5
5.8
7.5
11.1
5.4
10.4
9.2
0.44
0.14
0.07
0.16
0.46
0.06
0.12
1.4
Notes: Figures may not add up due to rounding. Mineral Resources are reported at a 3.5g/t lower cut-off.
There was no Ore Reserve statement for the 2020 financial year to compare the current Ore Reserve statement.
Resources & Reserves Statement 39
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. 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
“Global Resource increases to 2.7Moz at 9.9g/t” dated 15 April
2021). There have been three Resource upgrades completed
during the financial year which have been released to the ASX on
7 July 2020, 15 April 2021 ,11 November 2020 and one immediately
post the financial year 8 July 2021.
There has been a substantial amount of infill and extensional
drilling completed during the year. This has resulted in a material
change to both the Global Resource and classification relative to
that contained in the 2020 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 ordinary kriging for all lodes
except Southern Belle which used an inverse distance algorithm.
The Company reported its maiden Ore Reserve during the
financial year based on the results of the Stage 1 Feasibility
Study which was reported to the ASX on 18 February 2021.
This has subsequently been updated to the current Ore
Reserve statement reported to the ASX on 2 September 2021.
Governance controls
All Mineral Resource estimates are prepared by Competent
Persons using data that they have reviewed and consider
to have been collected using appropriate 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 2012 Edition of
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code).
All Ore Reserves estimates are prepared by Competent Persons
using data that they have reviewed and applied appropriate
modifying factors. All Ore Reserves quoted above are based on
and fairly represents information and supporting documentation
compiled by Mr Shane McLeay in accordance with the JORC Code.
40 Bellevue Gold Limited
Resources & Reserves Statement 41
Competent Persons’
Statements, Notes and
Cautionary Statements
Competent persons’ statements
The information in this report 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, a
Competent Person who is 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 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 report that relates to Ore Reserves at
the Bellevue Gold Project is based on, and fairly represents,
information and supporting documentation compiled by
Mr Shane McLeay, a Competent Person who is a full-
time employee of Entech Pty Ltd, a company engaged
by Bellevue. Mr McLeay is a Fellow of the Australasian
Institute of Mining and Metallurgy. Mr McLeay does not hold
securities in Bellevue. Mr McLeay has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which being
undertaken to qualify as a Competent Person as defined in
the JORC Code. Mr McLeay 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 compiled
by Mr Sam Brooks, a Competent Person who is a full-
time employee of and holds securities in Bellevue Gold
Limited. 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 being
undertaken to qualify as a Competent Person as defined
in the JORC Code. Mr Brooks consents to the inclusion
in this report of all technical statements based on his
information in the form and context in which they appear.
Notes
The Company first reported the production targets and
forecast financial information derived from its production
targets in accordance with Listing Rules 5.16 and 5.17 in its
ASX announcement on 18 February 2021 titled “Bellevue
Gold Stage 1 Feasibility Study”. This has subsequently
been revised in the ASX announcement 2 September
2021 titled “Bellevue Gold Stage 2 Feasibility Study”.
The Company confirms that all material assumptions
underpinning the production targets and the forecast
financial information derived from the production targets
continue to apply and have not materially changed.
Disclaimer
This report has been prepared by Bellevue Gold Limited
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 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
42 Bellevue Gold Limited
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.
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.
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
Competent Person’s Statement, Notes and Cautionary Statements 43
Directors’
Report
44 Bellevue Gold Limited
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Directors' Report 45
Directors’
Details
The Directors present their report on the consolidated financial
statements of Bellevue Gold Limited (Company or Bellevue) and the
entities controlled (together, the Group), for the year ended 30 June 2021.
The following persons were Directors of the Company during or since
the end of the financial year:
Kevin Tomlinson
Non-Executive Chairman – HBSc. MSc. Geology, Grad Dip. Finance
and Investment, Banking, Corporate, Finance and Securities Law
Mr Tomlinson has over 35 years’ experience in exploration, development and
financing of mining projects globally in the North American, Australasian and
European markets. He was previously Managing Director of Investment Banking
at Westwind Partners and Stifel Nicolaus (2006-2012) raising significant equity
and providing M&A corporate advice, and is the former Chairman of Cardinal
Resources Ltd, leading its C$587 million sale to Shandong Gold. He graduated
as a structural geologist and completed his MSc on narrow high-grade gold
veins in Victoria, Australia, has worked in technical and senior management
roles for mining companies including Plutonic Resources, and was Head of
Research at Hartley’s stockbroking.
Mr Tomlinson is currently an Independent Non-Executive Director of TSXV-
listed Kodiak Copper Corp, where he chairs the Health, Safety, Environment
and Community Committee, and was previously a director of Centamin Plc
and Chairman of Medusa Mining, as well as a member of the gold producers’
respective Health, Safety and Environment Committees. Former directorships
also include ASX/TSX-listed Cardinal Resources Ltd and ASX-listed Burkina
Faso gold developer Orbis Gold Ltd, where he was a member of their
respective Technical Committees and was involved with environmental and
community studies. He was the chair of the Remuneration Committee and a
member of the Audit Committee at Samco Gold Ltd, a member of the Audit
Committee at Kodiak Copper and a member of the Remuneration Committee
at Centamin Plc.
Mr Tomlinson is a Fellow of the Chartered Institute of Securities and Investment
(CISI) and a Liveryman of the Worshipful Company of International Bankers (UK).
He holds a Bachelor of Science (Honours) and a Masters degree in Structural
Geology and has a Graduate Diploma in Finance and Investment, Banking,
Corporate, Finance and Securities Law from the Securities Institute of Australia.
Director since 9 September 2019.
Mr Tomlinson chairs Bellevue’s Health, Safety & Sustainability Committee and is
a member of Bellevue’s Nomination & Remuneration Committee and the Audit
& Risk Management Committee.
Current Listed Directorships:
• C3 Metals Inc
(Appointed 5 January 2021)
• Kodiak Copper Corp
(Appointed 14 December 2020)
• Churchill Resources Inc
(Appointed 21 June 2021)
Past Listed Directorships (last 3 years):
• Cardinal Resources Limited
(from 7 November 2016 to
31 January 2021)
• Xanadu Mines Limited (from
29 May 2017 to 30 April 2019)
•
Infinity Lithium Corporation (from
8 June 2017 to 27 November 2019)
• Samco Gold Limited (from
15 January 2012 to 15 April 2021)
46 Bellevue Gold Limited
Stephen Parsons
Managing Director – BSc (Hons) Geology, MAusIMM
Michael Naylor
Executive Director and Chief Financial Officer – BCom., CA
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 in 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, creating shareholder
wealth and advocating for the future generation of
workers through ensuring sustainability, diversity and
inclusion remain a priority within the industry. Mr Parsons
has an honours degree in Geology.
Director since 31 March 2017.
Mr Parsons is a member of Bellevue’s Health, Safety
& Sustainability Committee.
Mr Naylor has 25 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.
Mr Naylor was Company Secretary from 1 December 2017
to 26 July 2021.
Current Listed Directorships:
• Auteco Minerals Limited (Appointed 30 November 2018)
• Midas Minerals Ltd (Listed 7 September 2021)
Current Listed Directorships:
• Auteco Minerals Limited (Appointed 28 January 2020)
Past Listed Directorships (last 3 years):
• Helix Resources Limited (from 28 November 2016
to 16 February 2018)
Past Listed Directorships (last 3 years):
• Centaurus Metals Limited (from 31 March 2017
to 28 February 2019)
• African Gold Limited (from 1 February 2018
to 1 April 2020)
• Blackstone Minerals Ltd (from 30 October 2017
to 24 December 2020)
Directors' Report 47
Fiona Robertson
Non-Executive Director –
MA (Oxon) Geology, FAICD,
MAusIMM
Ms Robertson is a
professional non-executive
director specialising in the
resources sector. She has
over 40 years’ experience in
corporate finance, including
30 years working with emerging and mid-tier mining and
oil & gas companies as a banker, CFO and non-executive
director, guiding growth-oriented resource companies
through major transitions. She has worked previously for The
Chase Manhattan Bank in London, New York and Sydney,
and as CFO of ASX-listed Delta Gold Limited. Her executive
experience in resources spans exploration, development
and producing projects across Australia, North America,
Africa and Asia, and includes finance, strategy, mergers and
acquisitions, corporate governance and risk management
(including health, safety and environmental risk oversight),
and management of stakeholder engagement spanning
investor, public and local community relations.
She is currently a Non-Executive Director of ASX-
listed Whitehaven Coal Limited and 29Metals Limited,
where she chairs the Audit & Risk Committees for both
companies as well as being a member of their respective
Health, Safety & Environment Committees. Prior NED roles
include ASX-listed Drillsearch Energy Limited (2009-2016)
Shannon Coates
Non-Executive Director –
LLB, BJuris, GAICD,
ACIS/ACSA
Ms Coates has more than
25 years’ experience in
corporate law, compliance
and the provision of
corporate advisory
services to publicly listed
companies across a variety of industries including resources,
manufacturing and technology. Her significant experience
in representing and advising boards of public companies
has equipped her with skills in a wide range of corporate
and commercial matters, including strategy, remuneration,
mergers and acquisitions, debt and equity capital markets,
risk management and compliance, regulation and
corporate governance, both in Australia and internationally.
Ms Coates founded and is currently Managing Director
of Evolution Corporate Services, a boutique corporate
advisory, compliance and governance service provider,
with clients predominantly in the mineral exploration,
development and production sector. In this role,
Ms Coates has advised on numerous IPO and M&A
transactions, and equity capital raisings.
48 Bellevue Gold Limited
where she was Chair of the Audit & Risk Committee and
a member of the People, Remuneration, & Health, Safety,
Environment and Community Committee.
Fiona was an active member of the leadership team of
WIMnet, the AusIMM’s Women in Mining Network, from 2012
to 2017 and remains a strong advocate for diversity and
inclusion in optimizing workforce effectiveness.
Ms Robertson was recognised as one of the 100 Global
Inspirational Women in Mining in 2020 by WIM UK and
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 holds a Masters degree in Geology from the
University of Oxford, is a Fellow of the Australian Institute
of Company Directors and is a Member of the Australasian
Institute of Mining and Metallurgy.
Director since 13 May 2020.
Ms Robertson chairs Bellevue’s Audit & Risk Management
Committee and is a member of the Nomination and
Remuneration Committee and the Health, Safety &
Sustainability Committee.
Current Listed Directorships:
• Whitehaven Coal Limited (Appointed 16 February 2018)
• 29Metals Limited (Appointed 27 May 2021)
Past Listed Directorships (last 3 years):
• Heron Resources Limited (from 9 April 2015 to 31 July 2020)
Ms Coates is company secretary to a number of ASX-
listed companies, including Mincor Resources NL and
ASX 200 Nearmap Limited. She is also a Non-Executive
Director of ASX-listed Vmoto Limited, an electric vehicle
company with manufacturing operations in China and
a global distribution network.
Ms Coates is a qualified lawyer, Chartered Secretary
and graduate of the Australian Institute of Company
Directors’ (AICD) Company Directors course.
She is a past recipient of the West Australian Women
in Mining scholarship and was selected for the AICD
Chairman’s Mentoring Program.
Director since 13 May 2020.
Ms Coates chairs Bellevue’s Nomination & Remuneration
Committee and is a member of the Audit & Risk
Management Committee.
Current Listed Directorships:
• Vmoto Limited (Appointed 22 May 2014)
Past Listed Directorships (last 3 years):
• Flinders Mines Limited (from 20 June 2018
to 25 November 2019)
• Kopore Metals Limited (from 14 October 2015
to 16 March 2020)
Executive Management Team
Craig Jones
Chief Operating Officer – B.Eng. Mining and Mineral Engineering
Mr Jones is a highly experienced mining executive and qualified mining engineer
with more than 26 years’ experience in underground hard-rock mining within
the resource industry. Prior to his appointment as Chief Operating Officer in
December 2019, he held senior roles in operations, mine management and
business development for various mining companies.
Mr Jones has a Bachelor of Engineering (Mining) from the University of Ballarat
and holds a WA First Class Mine Manager’s Certificate.
Sam Brooks
Chief Geologist – BSc. Geology, MSc. Geostatistics
Mr Brooks is a geologist with over 17 years of experience in gold and mineral
exploration, resource estimation and project development. He led the discovery
of the Banfora Gold deposit and was involved in the Bankable Feasibility study.
The Banfora deposit is now one of Endeavour Mining’s key assets. He has
been instrumental in leading geological teams to over 7 million oz of gold
discoveries globally.
Mr Brooks holds a Bachelor of Science degree majoring in Geology, Otago
University, with postgraduate geostatistics and is a member of the AIG.
Luke Gleeson
Head of Corporate Development – Bachelor of International Finance, Graduate
Diploma Mineral Exploration Geoscience, MSc Mineral Economics, MAusIMM
Mr Gleeson was previously head of Investor Relations and a Business
Development Officer with ASX listed gold producer Northern Star Resources
(ASX: NST) for 5 years. At Northern Star, he was involved with their asset
acquisitions and played key roles in securing equity funding and communicating
with the global analyst and investment community.
He has a Bachelor of International Finance from Griffith University QLD & post-
graduate qualifications in Mineral Exploration Geoscience (WASM) and a Masters
of Science (MSc) in Mineral Economics, Western Australian School of Mines and is
also a Member of AusIMM.
Directors' Report 49
Daina Del Borrello
GM People & Company Culture – B(Psych)
Daina is an experienced Human Resources professional with over 18 years’ experience
working in mining HR developing and implementing strategies and initiatives which
align with the overall business strategy. Daina has a track record of success in
managing employee relations issues, workplace grievances, the development
and management of company culture, employee development and the recruitment
and selection process.
Daina holds a Bachelor of Psychology Degree specialising in Organisational Psychology.
Amber Stanton
General Counsel and Joint Company Secretary – LLB
Ms Stanton has more than 19 years of legal, commercial, strategic and corporate
governance experience. Ms Stanton was most recently General Counsel and
Company Secretary at Resolute Mining Limited and was previously a partner
in two international law firms.
During this time, she played key roles in an extensive range of transactions,
including mergers and acquisitions and capital market raisings, and provided
advice on mining law, corporate governance and general corporate and
commercial matters.
Ms Amber Stanton was appointed to the position of Joint Company Secretary
on 26 July 2021.
Maddison Cramer
Joint Company Secretary – LLB, GAICD
Maddison is a corporate lawyer with experience in both the listed and unlisted
space, advising entities across a variety of different sectors, but with a focus
on mining and resources. A former Associate at Bellanhouse Legal and HWL
Ebsworth Lawyers, Ms Cramer specialises in corporate and commercial
transactions, including capital raisings, IPOs and backdoor listings, and
corporate governance issues.
Ms Maddison Cramer was appointed to the position of Joint Company Secretary
on 27 November 2020.
50 Bellevue Gold Limited
Interests in the shares, options and performance rights of the Company and related bodies corporate
At the date of this report, the interests of the Directors in the shares and performance rights of Bellevue Gold were:
Name
Kevin Tomlinson
Stephen Parsons
Michael Naylor
Fiona Robertson
Shannon Coates
Ordinary Fully Paid Shares
Performance Rights
140,000
33,830,000
2,210,000
106,300
40,000
600,000
5,500,000
1,740,000
-
-
No options were held by Directors of the Bellevue Gold Limited.
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
Audit & Risk
Management Committee
Nomination, Remuneration
& Culture Committee
Held While
Director
Attended
Held While
Director
Attended
Held While
Director
Attended
7
7
7
7
7
7
7
7
7
7
7
7*
7*
7
7
7
7*
7*
7
7
5
7*
7*
5
5
5
7*
7*
5
5
Director Name
Kevin Tomlinson
Stephen Parsons
Michael Naylor
Fiona Robertson
Shannon Coates
* Mr Parsons and Mr Naylor were invitees to the Audit & Risk Management Committee and Nomination, Remuneration & Culture Committee meetings except for
those parts of the meetings held “in-camera” from management.
All Directors were eligible to attend all meetings held. Mr Parsons and Mr Naylor were invitees to the Audit & Risk
Management Committee and Nomination, Remuneration & Culture Committee meetings except for those parts
of the meetings held “in-camera” from management.
Note that the Health, Safety & Sustainability Committee was established on 28 July 2021 and no meetings have been
held yet. The Nomination, Remuneration and Culture Committee was also renamed the Nomination and Remuneration
Committee on that date due to People and Culture responsibilities being moved to the new Health, Safety &
Sustainability Committee.
Principal activities
The principal activity of the Group during the year was exploration, early works development and feasibility studies
in relation to the Bellevue Gold Project.
The only change in activities was the completion of feasibility studies in relation to the Bellevue Gold Project.
There have been no other significant changes to the nature of these activities during the year.
Directors' Report 51
Operating and Financial Review
Operations review
Exploration
The 2021 financial year has seen the Company maintain
the benchmark established in previous years for new
discovery. The Resource continues to grow at a rapid rate
and during the financial year a further 800,000 ounces
of high-grade Resources were added to the project. The
Company also reported its maiden Indicated Resource,
converting a total of 540,000 ounces to Indicated
Resources during the reporting period.
Subsequent to year end the Bellevue Gold Project now
totals 3.0Moz @ 9.9g/t gold of Global Resources including
1.4Moz @ 11.0g/t of Indicated Resources. New step out
discovery is being maintained through surface diamond
drilling and the Company has now begun to invest in
grade control drilling ahead of mining development.
One of the central pillars of the Company’s strategy is
to continue to invest heavily in drilling ahead of project
development, with the twofold purpose of adding
organic growth while de-risking the project ahead
of commissioning.
During (and immediately after) the financial year
the Company has achieved the following:
• Announcement of a maiden Indicated Resource with
subsequent growth to 1.4Moz @ 11.0g/t gold, and an
increase in the global Mineral Resource to 3.0Moz @
9.9g/t gold. The Bellevue Mineral Resource Estimate
has been independently estimated and is based on
high-confidence diamond drilling.
• Significant new high-grade discoveries in the Deacon
Corridor advanced to Resource status; in particular at
the Marceline and Deacon North targets. The Deacon
Corridor now totals 1.3Moz of the 3.0Moz Global Resource
and remains completely open for further growth.
• New high-grade discovery at the Armand Lode
(part of the Bellevue structure) added to the Resource.
Armand remains open for further growth.
• Advancement of the exploration pipeline with new
major targets identified in the EIS drilling; to the east
of Deacon, at the Lucien target; beneath the Bellevue
lode system; and at the Lucknow target located to the
north of the Bellevue lode system. Ongoing discovery
to provide a foundation for future growth.
• De-risking of the Resource through the completion of
first grade control drilling at the Tribune area with drilling
defining exceptional grade and continuity in the area of
assays received to date. The grade control is a key step
as the Company moves towards project development.
• Establishment of underground drilling services, with
two diamond rigs operating by the end of the financial
year; delivering a substantial saving in drilling costs
and increase in production.
• Recruitment of an experienced Underground Geology
Manager and establishment of an underground
geology team to advance the project development.
• Standout drill results5 from new discoveries at Armand
and Deacon North/Marceline received during the
year include:
• Completed a total of 315 surface diamond holes for
138,419m, 46 underground diamond for 25,974m and
340 Reverse Circulation (RC) holes for 22,686m. The total
completed metres at the Project up until the end of
year is 393,006m of surface diamond, drilling 25,974m of
underground diamond drilling and 34,962m of RC drilling.
DDUG0037
DRDD684W3
DRDD545
DRDD544
5.6m @ 62.7g/t gold from 496.4m
12.5m @ 18.8g/t gold from 704.7m (including 0.3m @ 536.2g/t
gold from 716.9m) and 0.3m @ 16.3g/t gold from 726.6m
8.3m @ 32.1g/t gold from 358.5m
6.5m @ 23.4g/t gold from 384.8m
• Delivery of the Maiden Ore Reserve at the project
of 0.69Moz @ 8.0g/t gold4 based on the project
Resources as at November 2020. Followed by
significant Resource growth and conversion to be
included in the Stage 2 Feasibility Study update
scheduled for Q3 2021.
The Resource and Reserve Statement for the Bellevue Gold
Project is reported on page 38 of this Annual Report.
4. The maiden Ore Reserve is based on 1.04Moz @ 11.4g/t of Indicated Resources. Refer ASX Announcement dated 11 November 2020.
5. Refer ASX Announcement dated 11 November 2020 & ASX Announcement dated 23 June 2021.
52 Bellevue Gold Limited
Development and early works
During the year, the Company continued to advance
on its dual track strategy as it transitions from explorer
into a project developer with a vision of becoming one
of Australia’s leading and most profitable gold mining
producers and explorers.
The Company released a Stage 1 Feasibility study in
February 2021 which was subsequently upgraded in the
the Stage 2 Feasibility Study released in September 2021.
The upgraded study envisages a 1,000,000 tonnes per
annum conventional gravity and CIL processing facility and
predominantly underground LOM Resources and Reserves.
Operational activities continued to de-risk the project
throughout the year as the ongoing exploration activities
worked towards further delineation and definition of the
growing Resources. The release of the Stage 1 Feasibility
Study in the March quarter highlighted the potential for
sector leading profitability with best-in-class ESG metrics
and an enviable organic growth pathway.
The underground development works commenced with
the successful establishment of the new Paris portal
in September 2020 to access the historical workings
following the appointment of specialist underground
mining contractor GBF Mining and Industrial Services Pty
Ltd, part of the Macmahon group of companies (GBF/
Macmahon) to complete Stage 1 of the early works.
The ongoing advancement and rehabilitation of the
decline face and associated lateral development
continued throughout the period with over 1,868m of
decline developed and 434m of lateral development
completed. In total, just over 2,300m has been advanced
over the 10 months since the milestone event of cutting
the new portal occurred.
The required infrastructure of the primary ventilation
circuit and electrical distribution networks in tandem
with the established dewatering infrastructure supported
the project to advance over 230 meters per month on
average in the single heading development. The current
water levels in the historic mine are below the planned
development activities for the stage 1 works and ongoing
dewatering will continue throughout the coming year.
Multiple drill platforms have been established allowing
for the commencement of underground diamond
drilling following the appointment of Australian
Underground Drilling Pty Ltd (AUD) in December 2020.
The commencement of drilling from underground has
accelerated the drilling rates and reduced the costs
associated with drilling the Resource.
The project is forecast to deliver robust free cashflows
and exceptional profit margins with a forecast
production of 200,000 ounces on an annual average
over years one to five and averaging 183,000 ounces per
annum over an 8.1 year LOM.
The key financial forecasts are for the project to deliver
$1.8 billion of pre-tax free cashflow and EBITDA of
$2.4 billion over the LOM assuming a gold price of
A$2,400. The project also benefits from an exceptional
IRR of 72% pre-tax and a rapid payback period of only
1.4 years.
The Stage 2 Feasibility Study defines a Probable Ore
Reserve of 5.3Mt @ 6.1g/t gold for 1,040,000oz (based
on a gold cut-off grade price of A$1,750/oz) utilising
conventional mechanised underground mining methods.
Financial results for the period
The Group’s cash position as at 30 June 2021 was
$94,087,743 and the Company’s market capitalisation
was $816 million.
The Group’s consolidated net loss for the year ended
30 June 2021 was $12,233,435 (2020: net loss $5,687,302).
As the Company built its employee base and established
processes and systems in readiness for the transition to
development, the loss included the following items:
• Share-based payment expense $4,210,436
(2020: $1,729,713);
• Employee benefits expense of $3,506,469
(2020: $1,217,036); and
• Corporate costs of $1,815,029 (2020: $955,313).
The Group’s net assets increased to $220,675,160
(2020: $95,510,000).
Directors' Report 53
Share placements and issues
During the financial year, the Company issued the following shares, excluding options and performance rights exercised:
Description
Date
Placement
10 July 2020
Share Purchase Plan
18 August 2020
STI CY20
STI CY20
16 March 2021
25 June 2021
No. of Shares
100,045,000
35,000,742
81,490
8,432
Price Per Share
$
1.00
1.00
1.15
1.15
Shares issued on exercise of options
During the financial year, the Company issued the following shares on exercise of options:
Date
14 August 2020
17 November 2020
4 December 2020
25 June 2021
No. of Shares
19,000,000
10,000,000
1,000,000
2,500,000
Price Per Share
$
0.10
0.10
0.10
0.40
Shares issued on vesting of performance rights
During the financial year, the Company issued the following shares on vesting of performance rights:
Date
14 August 2020
17 November 2020
16 March 2021
Amount Raised
Before Costs
$
100,045,000
35,000,742
-
-
Amount Raised
Before Costs
$
1,900,000
1,000,000
100,000
1,000,000
No. of shares
1,300,000
300,000
5,000,000
Options issued
During the financial year, no options were granted over the ordinary shares of the Company.
Performance rights granted
During the financial year, the Company granted the following performance rights which convert to shares subject
to the satisfaction of certain performance and/or retention milestones:
No. of Performance Rights
2,990,000
413,006
108,471
50,000
Grant date
1 July 2020
2 November 2020
22 March 2020
18 December 2020
Expiry date
28 July 2025
31 July 2023
31 July 2023
31 July 2022
54 Bellevue Gold Limited
Corporate review
COVID-19 response
In 2020/2021 Bellevue continued to review its working
practices due to the outbreak of the global pandemic.
In response to COVID-19 the Company swiftly adopted
a COVID-19 Response Guideline which included
implementing work from home practices during
government mandated lockdowns. The option to work
from home to support flexible working arrangements
and to reduce the health risk associated with COVID-19
continues to be exercised by employees and we have
adapted our work styles to accommodate remote
working options for employees where possible and
requested. Where required, Bellevue upgraded its
systems and practices to enable employees to work
remotely and remain equally as productive to ensure the
workforce continued to thrive during these unprecedent
times and ongoing disruptions caused by COVID-19.
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 under a non-underwritten
Share Purchase Plan (SPP) for 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.
Change of auditor
The Company appointed Ernst & Young (EY) as auditor of
the Company, effective 2 February 2021. A resolution will be
tabled at the Company’s 2021 Annual General Meeting to
confirm the appointment of EY as the Company’s auditor.
Significant changes in the state of affairs
Other than the 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
On 2 September 2021, the Company announced both
the results of the Stage 2 Feasibility Study and the
underwritten and credit-approved loan of $200 million
from leading resource specialist Macquarie Bank Limited
for 6 years at an interest margin of 3.5% per annum (above
BBSY) pre-Project Completion and 3% per annum post
Project Completion.
On 3 September 2021, the Company successfully
completed a $106 million fully underwritten share
placement to institutional investors before costs at
$0.85 per share.
Bellevue also announced plans to undertake a non-
underwritten share purchase plan targeting up to
$25 million at the placement price of $0.85 per share.
The impact of the COVID-19 pandemic is ongoing, and
while it had limited impact on the Group up to 30 June
2021, it is not practicable to estimate the potential
impact after the reporting date. The Group will continue
to monitor the restrictions and health advice from the
West Australian Government and diligently respond to
risks that may arise.
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.
Subject to the finalisation of funding arrangements and
or/regulatory approvals, the Company is likely to make
a final investment decision in the coming year about the
development of the Bellevue Gold Project.
Environmental regulation and compliance
Bellevue is committed to ensuring compliance with
environmental laws and minimising the environmental
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 of Western Australia. Refer
Note 19 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 2021.
Directors' Report 55
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 on behalf of the company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party,
for the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
Shares options
Unissued shares
At the date of this report unissued shares of the
Company under option are outstanding:
50,000 unlisted options expiring 14 February 2022,
exercisable at 60 cents each.
Option holders do not have any right, by virtue of the
option, to participate in any share issue of the Company
or any related body corporate.
Indemnity of auditors
The Company has agreed to indemnify its auditors,
Ernst & Young, 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 Company
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
Ernst & Young and related entities for audit and non-
audit services provided during the year are set out in
Note 23 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.
Dividends
No dividend was paid or declared by the Company in
the financial period and up to the date of this report.
Rounding
The amounts contained in the financial report have
been rounded to the nearest $1,000 (where rounding
is applicable) where noted ($’000) under the option
available to the Company under ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument
2016/191. The Company is an entity to which this
legislative instrument applies.
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 81 and forms part of this report.
56 Bellevue Gold Limited
Letter from our Nomination,
Remuneration and Culture
Committee Chair
Dear Shareholders
On behalf of the Board,
I am pleased to present the
Remuneration Report for
the year ended 30 June
2021 (FY21).
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 FY21 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 PACE
values and strategy.
Our year
Bellevue continues to respond to the ongoing COVID-19 pandemic impacting
people worldwide. Bellevue has implemented protocols which support the
health and well-being of employees and the community, including the utilisation
of flexible and agile work practices for our West Perth office staff and remote
workforce at the Bellevue Gold Project. We believe the practices we have
implemented enable us to minimise risk to our people and communities,
ensuring we can safely deliver on our objectives during this period.
Despite the challenges faced, our people made significant
achievements, including:
• The release of our Stage 1 Feasibility Study which demonstrated outstanding
project economics at the Bellevue Gold Project and our maiden Reserve;
• Continued exploration success which resulted in continued significant
Mineral Resource growth during the year, which underpinned our Stage 2
Feasibility Study released after year-end; and
• Continuing our dedication to sustainability with the release
of our inaugural Sustainability Report.
The performance outcomes for FY21 are testament to the Executive team’s
leadership, which remained focused throughout a challenging year, and the
alignment that all Bellevue employees demonstrate towards our common vision
and values. On behalf of the Board, I sincerely thank our Executive team and all of
our employees and contractors for their significant efforts during challenging times.
FY21 remuneration overview
The Company’s remuneration strategy is designed to compensate KMP
and employees with remuneration packages that are competitive within the
market, whilst encouraging sustainable, high levels of performance aligned
to our values and strategic objectives. The current remuneration framework,
which consists of total fixed remuneration (TFR), short term incentives (STI)
and long term incentives (LTI), supports our principles by motivating staff to
be innovative, and to be accountable for their decisions and behaviours as
well as their associated risk management.
During FY21, Bellevue continued to review the remuneration framework to
ensure it continued to align with the strategic objectives of the Company,
whilst linking Company and shareholder value creation. The Board
determined to implement the following remuneration initiatives for the
Executive team on the basis of this review:
• TFR increases taking into consideration independent market remuneration
benchmarking against peers, increased role complexity due to the Company’s
significant growth trajectory as it moves from explorer towards producer,
Directors' Report 57
surrounding market conditions and sentiment, the
competency and skillset of individuals, and the current
demands on talent and retention considerations:
and subject to a 12-month holding lock. The terms and
conditions of the 2021 Gap STI Program are consistent
with previous STI programs.
Looking forward
The West Australian employment market has been
directly impacted by the COVID-19 pandemic, with
border closures both nationally and internationally
making it increasingly difficult for companies to attract
and retain high quality staff. This is compounded in
the resources sector where buoyant commodity prices
and the increasingly positive outlook has resulted in a
reduction in the number of the ‘right’ calibre executives
available for recruitment. To retain our existing quality
Executives and ensure we are competitive in recruiting
for additional critical roles as we ramp up towards
production, the Board is applying a long-term approach
to retention and incentivisation. It is more important than
ever that our Executives are remunerated competitively
for the work that they perform.
As the Company continues moving through uncertain
times while delivering on our objectives and strategy
to drive shareholder value, the Board recognises
the criticality in ensuring competitive remuneration
continues to be extended to our KMP and employees.
The Company continues to review the remuneration
framework by referencing benchmarks in remuneration
offered through analysis of practices implemented by
organisations of similar business growth and of relative
size by market capitalisation. Independent external
reviews and data supplied by advisors form a basis that
will underpin any potential KMP remuneration movements
and structural changes to the remuneration framework
(TFR and variable remuneration) in FY22. This review is
anticipated to be finalised in the first quarter of FY22,
with details on any updates to the framework to be
disclosed in the FY22 Annual Report.
On the following pages you will find the Company’s
audited FY21 Remuneration Report. I encourage all
shareholders to consider this report and I look forward
to receiving your views and support at the 2021 Annual
General Meeting.
Your sincerely
Shannon Coates
Nomination and Remuneration Committee Chair
- Managing Director - increase of 33%
- Other Executives - average increase of 10%
(see page 65 for more information)
• The establishment of a 2021 Gap Short Term Incentive
Program, running from 1 January 2021 – 30 June 2021
to align our STI program from an historic calendar to
financial year performance period; and
• Developing the structure of an FY22 – FY24 LTI
program, with the performance period being from
1 July 2021 – 30 June 2024. The finalisation of the
award structure is currently in its last stages of
development at the time of writing this report and
will be presented in more detail in the 2021 Notice of
Annual General Meeting and the FY22 Annual Report.
Short Term Incentives (STIs)
The STIs granted to Executives under the calendar year
2020 STI Program were based on short term objectives
to be achieved by 31 December 2020 that the Board
considered critical to the longer-term strategy of becoming
a significant gold producer. These included successful
dewatering of the Bellevue decline, exploration drilling from
underground, significant resource growth and increased
shareholder engagement. Performance against these
measures resulted in an outcome for all Executive KMP of
70% of the maximum incentive bonus, with the award of the
remaining 30% subject to an ongoing external investigation
relating to a water discharge event. More information on
this can be found in the STI outcomes section.
As a result of the transition in the Company’s incentive
remuneration period from a calendar to a financial
year, there was a six (6) month period for which the
Executive would not have otherwise been covered by
an applicable STI program. In recognition of this, the
Board devised an STI gap program for the six (6) month
transition period between 1 January 2021 and 30 June
2021 (2021 Gap STI Program). The award under the 2021
Gap STI Program was subject to the achievement of
critical individual and Company short term strategic
performance targets by 30 June 2021. These included
group and individual targets around critical areas
of resource growth, feasibility studies, ESG, strategy,
financing, HR, safety and culture. The maximum quantum
an individual was able to be awarded was the equivalent
of 50% of the annual 12-month STI award. Performance
against these measures resulted in an outcome for
all Executive KMP of 100% of the maximum potential
incentive. More information on this can be found in
the STI outcomes section.
Consistent with the 2020 STI Program, STI bonuses
(except for the two Executive Directors) under the 2021
Gap STI Program will be paid 50% in cash and 50% in
Shares. Stephen Parsons and Michael Naylor will receive
their Gap STI bonus 100% in cash. Shares will be issued
pursuant to the Company’s employee incentive plan
58 Bellevue Gold Limited
Remuneration
Report (Audited)
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 2021. This report forms part of the Directors’ Report and has been
audited in accordance with section 300A of the Corporations Act 2001 (Cth). This report details the remuneration
arrangements for Bellevue’s key management personnel (KMP):
• Non-Executive Directors (NEDs); and
• 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.
Table 1: KMP of the Group and their movements during FY21
Name
Position
Non-Executive Directors
Kevin Tomlinson
Non-Executive Chair
Fiona Robertson
Non-Executive Director
Shannon Coates
Non-Executive Director
Executive Directors
Stephen Parsons
Managing Director
Michael Naylor
Executive Director, Chief Financial Officer & Joint
Company Secretary1
Key Management Personnel (Executives)
Samuel Brooks
Chief Geologist
Craig Jones
Luke Gleeson
Chief Operating Officer
Head of Corporate Development
Daina Del Borrello
General Manager People & Company Culture
1. Mr Naylor resigned as Joint Company Secretary effective from 26 July 2021.
Term as KMP
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Full financial year
Additional KMP from FY22
Amber Stanton has been appointed as General Counsel and Joint Company Secretary for the Company,
effective 26 July 2021. Refer to the Directors’ report for information.
There were no further changes to KMP after the reporting date and before the date the financial report
was authorised for issue.
Directors' Report 59
Remuneration
Governance
The Nomination and Remuneration (NR) Committee was established on 1 June 2020 (previously called the Nomination,
Remuneration and Culture Committee) and is responsible for making recommendations to the Board on remuneration
arrangements for Directors and Executives, among other things. Executive remuneration is reviewed annually, taking into
consideration benchmarking data and 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 NR Committee is also tasked with making recommendations
to the Board regarding performance targets, including assessing performance and outcomes against these targets.
The roles and responsibilities of our Board, NR Committee, Executives and external advisors in relation to remuneration
for KMP and employees at Bellevue Gold are outlined below:
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 NR Committee.
Nomination
and
Remuneration
Committee
• Assists the Board in satisfying its responsibilities to the Company’s shareholders, by reviewing
and recommending a remuneration policy for 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 Executive.
• Oversees selection, appointment and induction of new Non-Executive Directors.
• Considers and makes recommendations regarding 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 NR Committee has no decision-making authority unless delegated by the Board from time
to time.
Managing
Director
The Managing Director makes recommendations to the NR Committee regarding the Executives
such as:
•
Incentive targets and outcomes
• STI and LTI participation
•
Individual remuneration and contractual arrangements for executives.
60 Bellevue Gold Limited
External
Advisors
• The Company, via the NR Committee or management, may engage external advisors.
• External advisors provide independent information and/or recommendations relevant
to remuneration-related issues, including benchmarking and market data.
During FY21, the Board engaged the services of external remuneration consultants BDO
Remuneration (BDO) to review the Company’s Executive total fixed remuneration, undertake
a market benchmarking review of remuneration and to assist with the implementation of the
changes to the Executive remuneration framework. In addition to using BDO for the Executive fixed
remuneration review, the Company engaged BDO for the collection and analysis of market data
used in the remuneration framework for all employees. The NR Committee considered the data from
BDO, along with other contributing factors, in making its remuneration recommendations to the
Board for Executive KMP total fixed remuneration increases in December 2020.
The NR Committee engaged executive remuneration consultants, The Reward Practice, to
conduct a further independent review of KMP remuneration in May 2021. The review focused on
variable incentive plans, providing the Board with industry trends and best practice within this
area. This independent review will be considered when reviewing any potential KMP remuneration
movements (TFR and variable remuneration) for the year ended 30 June 2022.
During the year, advisors did not provide a remuneration recommendation as defined in section
9B of the Corporations Act 2001 (Cth). The Board is satisfied that any advice provided by BDO
and The Reward Practice was made free from undue influence from any of the KMP.
The composition of the NR Committee is set out on below. Further information on the Committee’s role, responsibilities
and membership is set out in the NR Committee charter, a copy of which is available at: https://www.bellevuegold.
com.au/corporate-governance.
Nomination and remuneration committee
Members of the Board Committee during the year were:
Name
Shannon Coates
Fiona Robertson
Kevin Tomlinson
Position
Committee Chairperson
Committee Member
Committee Member
Appointment
1 June 2020
1 June 2020
1 June 2020
Directors' Report 61
Historical performance,
shareholder wealth and
remuneration
Historical performance, shareholder wealth and remuneration at 30 June 2021
SHARE PRICE
Five-year share price
increase of 3,554%.
DISCOVERY
Discovery of global Resources of 3.0Moz of gold at 9.9g/t in fewer than four years
from discovery hole Maiden Indicated Resource announced in July 2020.
DELIVERY
Delivery of Stage 1 Feasibility Study in February 2021 and
maiden Probable Ore Reserve of 0.7Moz of gold at 8.0g/t.
MARKET CAPITALISATION
Market capitalisation increased
by $90 million in FY21.
Figure 1 – Total shareholder returns
3,554%
3.0 Moz
0.7 Moz
90 M
$
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
FY16
FY17
FY18
FY19
FY20
FY21
BGL AU Equity
ASX 300 Index
62 Bellevue Gold Limited
Figure 2 – Bellevue resource growth
Resource growth evolution (koz)
84 %
Resource
CAGR
2,410 koz
1,040 koz
1,370 koz
1,800 koz
1,040 koz
3,000 koz
1,400 koz
2,700 koz
1,200 koz
1,500 koz
1,600 koz
500 koz
Maiden
Resource
Q4 2018
Q3 2019
Q4 2020
Q1 2021
Current R&R
Inferred Resource (koz)
Indicated Resource (koz)
Table 2: Business performance
Share Price as at 30 June ($)
Share Price Increase / (Decrease) (%)
2021
0.95
(10)
2020
1.06
51
2019
0.70
312
2018
0.17
709
2017
0.021
0
Market Capitalisation ($)
815,848,025
725,624,835
350,722,176
67,796,086
5,428,511
Inferred Resources
Indicated Resources
Total Mineral Resources
Probable Ore Reserve
1.5m ounces
@ 9.1g/t gold
from 5.2Mt1
2.2m ounces
@ 11.3 g/t gold
from 6.1Mt
1.53m ounces
@ 11.8 g/t gold
from 4Mt
1.2m ounces
@ 11.0g/t gold
from 3.4Mt1
Nil
Nil
2.7m ounces
@ 9.9g/t gold
from 8.6Mt1
2.2m ounces
@ 11.3 g/t gold
from 6.1Mt
1.53m ounces
@ 11.8 g/t gold
from 4Mt
0.7m ounces
@ 8.0g/t gold
from 2.7Mt2
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Loss After Income Tax ($)
12,233,435
5,687,302
7,146,369
5,900,323
1,791,733
1. This was the Resource at the Bellevue Gold Project as at 30 June 2021. However, the Company updated its Resource in the ASX release dated on 8 July 2021
and titled “Bellevue Increases Total Resources to 3.0Moz at 9.9g/t”. Mineral Resources include Ore Reserves.
2. This was the Ore Reserve for the Bellevue Gold Project as at 30 June 2021, which is based on the February 2021 Stage 1 Feasibility Study.
Directors' Report 63
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 to best align with the Company’s strategic objectives.
For the year ended 30 June 2021 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 KMP 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 align Executive remuneration in a manner that attracts, motivates and retains KMP 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 KMP 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 - Annualised maximum potential earnings as at 30 June 2021
The breakdown shown in the graphs below is the maximum potential fixed and at risk STI & LTI remuneration based
on FY21 stretch remuneration opportunities.
Managing
Director
CFO/
Executive
Director
Other
Executives
STI
LTI
Fixed
13%
37%
50%
STI
LTI
Fixed
13%
36%
51%
STI
LTI
Fixed
8%
58%
34%
The graphs represent the typical annual potential remuneration package at stretch/maximum for key management personnel. Although Other Executives’s were not
granted LTI’s in FY21, they were granted LTI’s in FY20 (retention and performance) that related to the full calendar year and hence 50% of those grants are recognised in the
above remuneration mix graph for FY21. In addition, the Executive Directors were also granted LTIs that related to the full calendar year 2020, however due to shareholder
approval, they were not issued until FY21. Therefore 50% of those grants are also recognised in the above remuneration mix graph for FY21.
As a result of this transition in the Company’s incentive remuneration period from a calendar to a financial year, the Company is devising an annual LTI program, with the
first award under this program being the FY22 LTI award. The performance period will commence on 1 July 2021 and run for 3 years. The terms and performance conditions
have not yet been finalised by the Board at the time of publishing this report. In determining the quantum of the FY22 LTI award, the Board and Remuneration Committee
will take into account a period of 6-months where employees were not entitled to an LTI, being the period from 1 January 2021 – 30 June 2021. Detailed information
pertaining to the plan and objectives will be disclosed within the 2021 Notice of Annual General Meeting and the FY22 annual report.
64 Bellevue Gold Limited
Performance Linked
Remuneration
Fixed remuneration
Most KMP received increases in TFR in FY21. In determining this, the Board considered a number of contributing factors
including, but not limited to, the significant growth in the Company, increased role complexity, increased responsibility
and the need to motivate and retain the existing KMP, as well as the growth trajectory of the Company. The increases
in TFR were benchmarked against market data for the industry and Bellevue’s specific peer group.
Table 3: Executive KMP total fixed remuneration for FY20 and FY21
Incumbent
Position
Stephen Parsons
Managing Director
Michael Naylor
Executive Director, Chief Financial
Officer & Joint Company Secretary
Samuel Brooks
Chief Geologist
Craig Jones
Chief Operating Officer
Luke Gleeson
Head of Corporate Development
FY20 TFR
$400,000
FY21 TFR
$530,000
$261,705 (.8 FTE)
$280,000 (.8 FTE)
$266,425
$350,400
$355,875
$300,000
$380,000
$355,875
$295,650
% Change from
FY20 to FY21
33%*
7%
13%
8%
0%
23%**
Daina Del Borrello General Manager People
$192,720 (.8 FTE)
& Company Culture
*
Mr Parsons received a 33% increase in TFR for the year ended 30 June 2021. The NR Committee took into consideration the growth in the market capitalisation of
the Company, Company status (eg. project developer), years of experience, the level of responsibility assigned to the Managing Director (increase in number of
direct reports), the exceptional performance achieved to date and data relative to the benchmarking process in assessing the TFR remuneration increase during
the year.
** This increase is comparing 100% of the full time equivalent of Ms Del Borrello’s FY20 TFR ($240,900) to the FY21 TFR to ensure a like-for-like comparison
for transparency. The General Manager People and Company Culture received a fixed remuneration increase to align remuneration to the Industry Market and
reflect the additional responsibilities associated with the role. Further, the General Manager People and Company Culture increased working hours to a Full-time
role from the previous.8 FTE the year prior as the work demands have increased as BGL moved into the Project Development phase in the last FY.
Peer group
The Company is in a unique situation as it has a market capitalisation which is generally consistent with a producer
environment whilst still a project developer. BDO were appointed to utilise a number of comparator markets that
serves to capture the ‘size’ of Bellevue from a sustained market capitalisation perspective as well as its current
stage of ‘business maturity’, which is that of a non-producer project development company. The comparator group
therefore is representative of companies with similar skills and competency sets to and/or required by Bellevue i.e.
where skills may be lost to or recruited from. Other criteria include number of sites, employee numbers, location and
revenues i.e. complexity of operations. The majority of the companies in the comparator groups generally face similar
risks and market conditions as Bellevue which include common value drivers such as commodity price, wage and
funding costs.
Comparator market data alone is not sufficient to be utilised for remuneration benchmarking purposes but rather, has
been utilised to inform the Bellevue pay approach which is based on role accountability over the next 12 to 18 months,
and internal relativities. The Board is confident that the approach adopted is sufficient to attract, retain and motivate
the right calibre of individual for Bellevue.
Directors' Report 65
Short Term Incentives (STIs) - CY20 and gap period
The STI program is an annual incentive program designed to reward Executives for meeting or exceeding performance-
based objectives over a one-year period. The STI program has been designed to support the objective of short term 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.
As a result of the transition in the Company’s incentive remuneration period from a calendar to a financial year, the
Board devised a STI program for the six month transition period between 1 January 2021 and 30 June 2021 (Gap
Period), (2021 Gap STI Program). The award of any short term incentive bonus (STI Bonus) under the 2021 Gap STI
Program was subject to the achievement of critical short term performance targets by 30 June 2021.
The below table outlines the details of the 2020 calendar year STI program (CY20 STI Program) and 2021 Gap STI Program.
How is it paid? STI Bonuses under the CY20 STI Program are paid 50% in cash and 50% in fully paid ordinary shares
in Bellevue Gold Limited (Shares). Shares are issued under Bellevue’s Employee Securities Incentive
Plan (Plan) and are subject to a 12-month holding lock and any required shareholder approvals.
STI Bonuses under the 2021 Gap STI Program are paid 50% in cash and 50% in Shares, except for
the two Executive Directors who will receive their Gap STI Bonus 100% in cash. Shares are issued
under the Plan and are subject to a 12-month holding lock.
The number of Shares issued is calculated based on a deemed issue price equal to the volume
weighted average price (VWAP) of Shares for the five trading days up to and including the last
day of the relevant performance period.
How much can
Executives
earn?
Under the CY20 STI Program, the Managing Director had a maximum STI opportunity of 35% of TFR,
and other Executives had a maximum STI opportunity of 26% of TFR.
Under the 2021 Gap STI Program, the Managing Director had an STI opportunity of 20% of TFR for
target and 35% of TFR for stretch, and other Executives had an STI opportunity of 18% of TFR for target
and 26% of TFR for stretch, noting that the maximum that can be earned is pro rata for the six-month
Gap Period. 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
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 summarised below.
How is
performance
measured?
A combination of Company-specific performance targets were 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.
Payments under the CY20 STI Program were subject to the achievement of health and safety
measures, including nil major incidents as a result of failure of policy/procedure, which acted
as a gateway to the CY20 STI Bonus. The STI Bonus was also subject to the achievement of
the following performance objectives:
• Successful dewatering of the decline
• Commencement of drilling from underground
•
Indicated Resource of at least 500,000 ounces of gold
• Successful global market, increased analyst coverage and increased institutional shareholder base.
66 Bellevue Gold Limited
How is
performance
measured?
For the 2021 Gap STI Program, there were three gateway objectives which required satisfaction
to receive any STI Bonus:
• No loss of life or serious incidents injury occurs in respect of the Company or the Bellevue
Gold Project
• No serious environmental or heritage breach occurs in respect of the Company or the Project
• The retention, malus and clawback conditions are not triggered in respect of an individual’s role
The concept of target and stretch opportunities was applied when establishing the 2021 Gap STI
objectives. There are three shared Company-wide objectives applied to all Executives which are
weighted at 75% of the total STI entitlement which relate to:
• Resource growth
• Delivery of Feasibility Studies
• ESG strategies
In addition to these objectives each Executive had individual objectives for assessment that were
role specific and accounted for 25% of the award. Details of the Managing Director’s individual
objectives can be found in the STI outcomes section.
When is it
paid?
The STI Bonuses to be paid under the CY20 STI Program and the 2021 Gap STI Program are
determined after the end of the relevant performance period following a review by the NR
Committee of performance during the period against the STI performance measures.
The Board approves the final STI Bonus based on this assessment of performance, with each STI
Bonus paid in cash and/or Shares (as applicable) approximately three months after the end of
the relevant performance period.
What happens
if Executive
leaves?
For retention purposes, the Executive must remain an employee, office-bearer or consultant of the
Company for two months following the end of the performance period to be entitled to receive an
STI award.
However, if an Executive’s role is made redundant before this date, they will still be entitled to
receive the STI Bonus for any performance targets that have been met.
If the Executive’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,
taking into account longevity in the role and the reasons for leaving.
What happens
if there is a
change of
control?
If 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 the end of the performance period, the Board may
in its discretion determine whether and in what amount to pay any STI Bonuses under the STI program.
Malus and
Clawback
The Board retains the discretion to adjust any STI Bonus payable under the CY20 STI Program or
the 2021 Gap STI Program 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 non-compliance; or
• significant harmful act by an individual.
Directors' Report 67
STI outcomes
Table 4: CY20 STI Outcomes
Performance
Measure
Rationale
Successful dewatering
of the decline
Commencement of
Underground Drilling
The Company embarked on the dewatering activities to enable
the Company to commence rehabilitation and refurbishment
of the decline such that it can be used in future mining and
exploration activities. The target of “successful dewatering of
the decline” was intended to encompass dewatering activities
to a depth where underground access could be achieved,
rather than complete dewatering of the mine.
Short term success of the rehabilitation and refurbishment
of the Bellevue decline which could be measured by gaining
access to certain areas to allow infill and step out exploration
drilling. Being able to utilise certain areas of the Bellevue
decline for exploration drilling significantly reduces drilling
costs and turnaround of exploration results.
Indicated Resource
of at least 500,000
ounces of gold
Bellevue has stated that its focus is to become a high margin
Australian gold producer. A key milestone was to be able to
demonstrate a higher geological confidence in the Resource
in order to commence a feasibility study.
Weighting
30% for all
Executive KMP
Level of
Achievement
Performance
met, final
outcome
pending*
30% for all
Executive KMP
Met
20% for the
Managing
Director and
Head of
Corporate
Development
40% for all other
Executive KMP
Met
Met
Market Increase -
Successful global
market, increased analyst
coverage and increase
in our institutional
shareholder base
Increased analyst coverage was driven by the fact that
the world had mostly been closed to travel due COVID 19
travel restrictions. Given the hardship, it was important that
the Company was still engaged with current and future
shareholders, and independent analyst coverage was
obtained on an international and domestic scale.
20% for the
Managing
Director and
Head of
Corporate
Development
*
As at 30 June 2021, the payout of the remaining 30% is pending the outcome of an ongoing investigation regarding a potential discharge of water at the Bellevue Gold Project.
The appropriateness of awarding this component of the CY20 STI Program will be re-assessed by the independent Directors when the outcome of the investigation is known.
Table 5: Executive KMP STI Bonuses recognised in respect of CY20 performance
Total STI Bonus
available
for CY202
$
Achieved
STI3
%
Total STI
Bonus
awarded2,3
$
Target STI
%
Cash
$
Shares
$
Cash
$
Shares
$
Recognised in FY20
Recognised in FY211
100
100
100
100
100
100
140,000
68,640
70,200
91,000
92,300
41,756
70
70
70
70
70
70
98,000
28,585
28,585
20,415
20,415
48,048
14,015
14,015
10,009
10,009
49,140
14,333
14,333
10,237
10,237
63,700
18,580
18,580
13,270
13,270
64,610
18,846
18,846
13,459
13,459
29,229
8,526
8,526
6,089
6,089
Executive KMP
Stephen Parsons
Michael Naylor
Samuel Brooks
Craig Jones
Luke Gleeson
Daina Del Borrello
1. The vesting expense recognised in FY21 as remuneration, which relates to the period 1 July 2020 to 31 December 2020. The value of the cash and Share portion
has been expensed over the testing period (24 February 2020 to 31 December 2020).
2. STI Bonuses are paid half in cash and half in Shares, subject to any required shareholder approvals.
3. 70% of the total STI Bonus available was paid in March 2021, with 30% ($151,169) to be paid at the absolute discretion of the Independent Directors. As at 30 June 2021,
the payout of the remaining 30% is pending the outcome of an ongoing investigation regarding a potential discharge of water at the Bellevue Gold Project.
The appropriateness of awarding this 30% component of the CY2020 STI Program will be re-assessed when the outcome of the investigation is known. Shares were issued
to Executives pursuant to the Plan and are subject to a 12-month holding lock. Shares to be issued to Executive Directors are subject to required shareholder approvals,
which will be sought in the upcoming 2021 Annual General Meeting of Shareholders. The actual number of Shares issued to KMP Executives and to be issued to the
Executive Directors pending shareholder approvals was calculated based on a deemed issue price equal to the VWAP of Shares for the 5 trading days up to and including
31 December 2020 (being $1.1492 per Share). Refer to Table 16 for the number of Shares issued under the CY20 STI Program during FY21.
68 Bellevue Gold Limited
2021 gap STI program outcomes
The below performance targets are based on short term objectives that are critical to the Company’s strategy of becoming
a significant gold producer. Performance was measured by the Board based on a ‘balanced score card’ approach at the
end of FY21. As this STI period runs for six months only, the remuneration applied for the formula was halved.
The individual performance targets for the other KMP Executives include objectives relating to development and
execution of corporate strategy, ESG strategy, Resource growth, new discoveries, financing, budgeting, project
approvals, safety, diversity and culture.
Table 6: Managing Director’s balanced scorecard
Performance Area
Performance Objective
Level of Achievement
Company
Wide
Objectives
Resource
Growth
Weighting
25%
Target
Indicated Resource for the Project,
announced to the ASX, equal to or
greater than 1.2Moz @ 5g/t gold.
Maximum Indicated Resource for the Project,
announced to the ASX, is equal to
or greater than 1.4Moz @ 5g/t gold.
Feasibility
Study
Target
Weighting
25%
The Company announces to the ASX
a Definitive Feasibility Study by the
end of Quarter 1 2021.
Maximum The Company announces to the
ASX a second, optimised Definitive
Feasibility Study by the end of
Quarter 2 2021, and is ready for
final investment decision.
ESG
Target
Weighting
25%
The Company ensures a cost-
effective ESG approach as
evidenced by planned actions to
implement ways to enhance the
environment and community in
which the Company operates.
Maximum The Company develops a
comprehensive, appropriate and
balanced optimised ESG plan for
Board approval by 30 June 2021.
The plan is expected to outline short,
medium, long term deliverables,
setting out the actions the Company
intends to take to address the risks
identified by the ESG Plan.
100% outcome against maximum
On 8 July 2021, the Company announced to
the ASX that the Indicated Resource for the
Project had increased to 1.4Moz @ 11.0g/t
gold. The process for finalizing the outcome
with independent external geologists
resulted in this not being officially announced
until after 30 June 2021, however the Board
determined that this strong result reflected
Stretch performance under the Resource
Growth measure.
100% outcome against maximum
On 18 February 2021, Bellevue announced
its Stage 1 Feasibility Study results, which
forecast strong profits and robust free
cashflows, demonstrating achievement
of the Target Opportunity.
Strategic decisions have meant the second,
optimised definitive feasibility study has been
pushed back to the second half of the 2021
calendar year, with the Board assessing that
Management has put the Company in a
position to complete the Stage 2 Feasibility
Study at a time that is strategically optimal
for the business.
100% outcome against maximum
The Company has ensured a cost-effective
ESG approach and finalised an optimized ESG
plan that has been approved by the Board.
Directors' Report 69
Performance Area
Performance Objective
Level of Achievement
100% outcome against maximum
The overall business plan has been signed off
incorporating meaningful ESG targets for the
Bellevue Gold Mine following a successfully
completed robust review of material ESG
opportunities and risks in FY21.
Mr Parsons has provided leadership,
guidance and directed the development
activities of the business, demonstrated
clear safety leadership and overseen
implementation of effective safety systems to
Group operations. He has demonstrated that
the safety culture and processes and systems
are in place and operating as intended/
required to support the construction phase.
Further, Bellevue has been successful in
achieving and maintaining >35% gender
diversity, achieving 40% consistently from
March 2021.
Strategy
Target
Individual
Objectives
Weighting
25%
Develop and get Board sign-off for
overall business plan, strategy, targets
and budgets at a critical juncture in
BGL’s strategic outlook in the pursuit
of becoming a gold producer.
Maximum Proposed strategy incorporates
meaningful ESG targets for the
Bellevue Gold Mine following a
successfully completed robust
review of material ESG opportunities
and risks in FY21.
Target
Safety
and
Culture
• Provides leadership, guidance and
directs the development activities
of the business, demonstrates
clear safety leadership,
driving and overseeing the
implementation of effective safety
systems to Group operations.
• Positive culture embedded within
the organisation, as evidenced
by Culture Survey participation
results/outcomes.
• Maintain gender diversity >30%.
Maximum • Demonstrates that the safety
culture and processes and systems
are in place and operating as
intended/required to support
the construction phase.
• Maintain and lead the positive
Culture which reflects BGL’s PACE
values being applied.
• Gender diversity >35%.
Table 7: STI bonuses earned by Executive KMP in respect of 2021 gap STI program1
Maximum
STI at 100%
%
Maximum
STI available
(based on Stretch)
$
Target STI
%
Achieved
STI
%
Total STI
Achieved
$
Cash
$
Shares2
$
57
69
69
69
69
69
100
100
100
100
100
100
92,750
36,400
39,000
49,400
46,150
38,434
100
100
100
100
100
100
92,750
92,750
36,400
36,400
-
-
39,000
19,500
19,500
49,400
24,700
24,700
46,150
23,075
23,075
38,434
19,217
19,217
Executive KMP
Stephen Parsons
Michael Naylor
Samuel Brooks
Craig Jones
Luke Gleeson
Daina Del Borrello
1. The STI Bonus is paid half in cash and half in Shares for Executive KMP, with the two Executive Directors receiving their STI Bonus 100% in cash. Neither cash nor
Shares were actually paid during FY21.
2. Shares were issued following the end of FY21 pursuant to the Plan and are subject to a 12-month holding lock. The actual number of Shares issued has been
calculated based on a deemed issue price equal to the VWAP of Shares for the 5 trading days up to and including 30 June 2021 (being $0.9671 per Share).
For accounting purposes, the fair value of the cash and shares has been amortised over the service period which is between 1 January 2021 and 31 August 2021
to the value of $218,268 for FY21. The amortisation to 31 August 2021 is due to an additional 2-month service period requirement from 30 June 2021.
70 Bellevue Gold Limited
Long Term Incentives (LTIs)
Under the Company’s 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 performance targets set represent challenging, but achievable, progression for the Company. It is through the
achievement of these milestones, and continued development of the Bellevue Gold Project, that Shareholder value
will sustain growth best aligned with the growth of the Company.
As a result of the transition in the Company’s incentive remuneration period from a calendar to a financial year, the
Company is devising an annual LTI program, with the first award under this program being the FY22 LTI award. The
performance period will commence on 1 July 2021 and run for 3 years. The terms and performance conditions have not
yet been finalised by the Board at the time of publishing this report. In determining the quantum of the FY22 LTI award,
the Board and NR Committee will take into account a period of 6-months where employees were not entitled to an
LTI, being the period from 1 January 2021 – 30 June 2021. Detailed information pertaining to the plan and objectives
will be disclosed within the 2021 Notice of Annual General Meeting and the FY22 annual report.
At the General Meeting held on 1 July 2020, shareholders voted 90.90% in favour of approving the project and retention
related LTI performance rights for Executive Directors Stephen Parsons and Michael Naylor on the following terms:
Who is eligible
Executives who are responsible for setting the strategic direction for projects and
functions of the Group.
How the award
is delivered
The LTI award for FY21 is in the form of Performance Rights. The Performance Rights, being
over ordinary fully paid shares, were issued for no consideration and carry neither rights to
dividends nor voting.
Performance Period
The Performance Rights will vest subject to the relevant participant remaining an
employee, office-bearer or consultant of the Company for three years from the date
of grant and the satisfaction of the relevant performance milestones within that
timeframe (further details on performance conditions and vesting scales below).
Quantum of the
award and allocation
methodology used
The Company used the 5-day VWAP of Shares to 31 March 2020 to determine the
number of Performance Rights to be issued.
Managing Director Stephen Parson’s Performance Rights equated to 200% of his total
fixed remuneration and Executive Director and CFO Michael Naylor’s Performance
Rights equated to 150% of his total fixed remuneration.
Expiry date for the
Performance Rights
All unvested, or vested but unexercised, Performance Rights will expire automatically at
5.00 pm WST on 28 July 2025 unless an earlier lapsing date applies (as set out below)
or as otherwise set out in the Plan.
Directors' Report 71
Performance conditions
& Vesting Scales
The performance rights are subject to the following vesting conditions:
(a) the Director remaining an employee, office-bearer or consultant of the Company
for three years from the date of grant (Retention Condition); and
(b) the satisfaction of the following performance milestones within that timeframe
(Performance Milestones):
(i) 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 Mineral Reserve located
within the Bellevue Gold Project
% of Class U Performance Rights eligible
for vesting
Less than 400,000oz of gold
At 400,000oz of gold
At 500,000oz of gold
At 650,000oz of gold or more
0%
50%
75%
100%
Between the above points
Pro-rata vesting
(iii) 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 located within the Bellevue Gold Project as follows:
JORC 2012 global Mineral Resource
located within the Bellevue Gold Project
% of Class V Performance Rights eligible
for vesting
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
0%
50%
75%
100%
Between the above points
Pro-rata vesting
For the avoidance of doubt, both the Retention Condition and the relevant
Performance Milestone must be satisfied before a performance right will vest.
What happens in the
event of a change of
control?
If the Bellevue Gold Project is sold or a “Change of Control Event” (as defined in the
Plan) occurs or the Board determines that either event is likely to occur before the
Vesting Conditions are met, the Board will have discretion as to whether to allow
the vesting of the Performance Rights and on what terms.
Retesting
There is no retesting of performance rights.
Malus/Clawback
Provisions
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.
72 Bellevue Gold Limited
Table 8: Performance rights granted to KMP during FY21
Performance Rights
Name
Position
Class U
Class V
Total1
Stephen Parsons
Managing Director
1,000,000
1,000,000
2,000,000
Michael Naylor
Executive Director, Chief Financial
Officer & Joint Company Secretary
495,000
495,000
990,000
1. These performance rights were granted on 28 July 2020 under the Company’s Employee Securities Incentive Plan, following receipt of shareholder approval on 1 July 2020.
LTI outcomes
In February 2021, the Company announced the Stage 1 Feasibility Study (ie. a positive definitive feasibility study) for
the Bellevue Gold Project, resulting in the vesting and conversion of performance rights issued on 10 January 2019 to
Mr Stephen Parsons, Mr Michael Naylor and Mr Samuel Brooks.
During FY21, Daina Del Borrello & Kevin Tomlinson achieved the milestones for their individual performance rights issued
during the previous period, which resulted in the vesting and conversion of Ms Del Borrello’s performance rights and the
vesting of Mr Tomlinson’s performance rights.
Please refer to Table 17 for a summary of the conditions of the aforementioned performance rights.
Table 9: LTI associated performance rights held by Executives which vested and were converted to Shares in FY21
Name
Position
Kevin Tomlinson
Chairman
Stephen Parsons
Managing Director
Michael Naylor
Executive Director, Chief Financial Officer & Joint Company Secretary
Samuel Brooks
Chief Geologist
Daina Del Borrello
General Manager People & Company Culture
Performance Rights
200,0001
3,500,0002
750,0002
750,0002
50,0003
1. These performance rights vested on 13 November 2020 following 12 months’ continuous service, but as at 30 June 2021 have not yet been converted to Shares.
2. These performance rights vested and were converted to Shares on 16 March 2021 following the announcement of the Stage 1 Feasibility Study.
3. These performance rights vested on 1 September 2020 following 12 months’ continuous service and specific milestone being achieved, and were converted
to Shares on 17 November 2020.
Retention related performance rights
The Company implemented a Retention Related Performance Rights program for specific KMP in FY20; the program extends to
Samuel Brooks, Craig Jones, Luke Gleeson and Daina Del Borrello. The retention program utilised 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 who are able to message to the broader investment
community on how we are driving shareholder value. 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. Please refer
to Table 17 for the relevant performance conditions which relate to these retention related performance rights.
It is acknowledged that the issue of Retention Rights is a variation from the standard LTI approach, however
the Company considers that this grant is aligned with shareholder interests for the following reasons:
1. An addition of retention rights to the total packages of these Executives 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, these Executives have been identified as an important
aspect in underpinning and maintaining the Company’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.
Directors' Report 73
General Information
Minimum shareholding requirement
In FY21, 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 Shares, the value of which is equal to 100% of
the individual’s annual directors’ fees (in the case of Executive Directors, TFR) or such amount fixed by the Board from
time to time, 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 requirement.
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 10: Directors’ satisfaction of minimum holding requirements as at 30 June 2021
Director
Kevin Tomlinson
Shannon Coates
Fiona Robertson
Stephen Parsons
Michael Naylor
Shares held at
30 June 20211
Year Minimum
Holding needs
to be met
Shareholding
% of TFR2
Minimum Holding
requirement
140,000
40,000
106,030
33,830,000
2,210,000
2023
2023
2023
2023
2023
67%
38%
102%
6,064%
600%
On target
On target
Meets
Meets
Meets
1.
Fully paid ordinary shares in Bellevue held either directly, indirectly or beneficially by each Director, including their related parties.
2.
Share value based on the higher of the acquisition cost at the time of purchase, and the closing price of Shares on 30 June 2021 (being $0.95 per Share).
Other members of the Company’s KMP are encouraged, but not required, to acquire or hold Shares.
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.
Table 11: Contractual arrangements for Executive KMP
Name and Position
Stephen Parsons
Managing Director
Michael Naylor
Executive Director/Chief Financial
Officer/Company Secretary
Samuel Brooks
Chief Geologist
Craig Jones
Chief Operating Officer
Term of Agreement
Ongoing commencing
1 October 2018
Ongoing commencing
1 February 2019
Ongoing commencing
1 February 2019
Ongoing commencing
9 December 2019
Luke Gleeson
Head of Corporate Development
Ongoing commencing
18 February 2020
Daina Del Borrello
General Manager People
& Company Culture
Ongoing commencing
1 December 2019
74 Bellevue Gold Limited
Company / Employee
Termination Notice Period
Termination Benefit
12 / 3 months
6 / 3 months
6 / 3 months
6 / 3 months
6 / 3 months
6 / 3 months
12 months’
base salary
6 months’
base salary
6 months’
base salary
6 months’
base salary
6 months’
base salary
6 months’
base salary
Non-Executive
Directors’ Remuneration
Non-Executive Director 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 $750,000 per annum approved by shareholders at the 2020 Annual General Meeting. The Board
may apportion any amount up to this maximum level amongst the Non-Executive Directors as determined by the
Board. Remuneration consists of Non-Executive Director fees, committee fees and superannuation contributions
and does not include equity remuneration or fees received for special duties (unless so determined).
The table below outlines the fee levels (inclusive of superannuation) for FY21:
Table 12: FY21 Board fees
Fee
Description
Board Fees
Chair of the Board
Other Non-Executive Directors
Committee Fees
Audit and Risk Management Committee Member
Nomination and Remuneration Committee Member
FY21 Fees per Director
(A$ 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.
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.
Set out below are the statutory disclosures required under the Corporations Act and in accordance with Australian
Accounting Standards, in respect of FY21 remuneration paid to Non-Executive Directors.
Table 13: Non-Executive Director remuneration
Short term
benefits
Post-employment
benefits
Director
Year
Kevin Tomlinson2
FY21
FY20
Shannon Coates
FY21
FY20
Fiona Robertson
FY21
FY20
Ray Shorrocks2
FY21
Total
FY20
FY21
FY20
Board &
Committee fees
Superannuation
Share-based
payments1
Total
remuneration
Performance
related
200,000
127,000
91,326
11,145
91,326
11,145
-
20,000
382,652
169,290
-
-
8,676
1,059
8,676
1,059
-
-
17,352
2,118
180,474
75,621
-
-
-
-
-
-
180,474
75,621
380,474
202,621
100,002
12,204
100,002
12,204
-
20,000
580,478
247,029
47%
37%
-
-
-
-
-
-
31%
31%
1.
Rights relate to rights and options over ordinary shares issued to 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. These Performance Rights were issued in November 2019 when the Company was an explorer, and the Company subsequently
changed its policy and no longer issues Performance Rights to Non-Executive Directors.
2.
Ray Shorrocks resigned as a Director, and Kevin Tomlinson was appointed as a Director, on 9 September 2019.
Directors' Report 75
Statutory Disclosures
Statutory remuneration table
The following table sets 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 FY21.
Table 14: Statutory remuneration of Executive KMP in FY21
Short term
benefits
Post-employment
benefits
Share-based
payment (Non-cash)
Executive
KMP
Salary
Cash
Bonus1
Other
Benefits
Annual
Leave
Superannuation
benefits
Long
Service
Leave
STI1
Total
Remuneration
Performance
Related
LTI2
Executive Directors
Stephen Parsons – Managing Director
FY21
FY20
428,967
89,403
4,769
64,223
45,534
9,277
20,415 2,031,607
2,694,195
354,413
28,585
-
46,154
33,669
10,000
28,585
596,303
1,097,709
Michael Naylor – Executive Director/Chief Financial Officer/Joint Company Secretary
240,135
37,083
8,894
22,148
25,715
4,901
10,009
628,102
976,987
167,625
14,015
-
11,400
15,924
-
14,015
127,779
350,758
FY21
FY20
Executives
Samuel Brooks – Chief Geologist
FY21
FY20
237,324
24,741
28,436
24,254
26,945
5,251
23,284
544,432
914,667
240,811
14,333
-
20,535
22,878
-
14,333
202,191
515,081
Craig Jones – Chief Operating Officer
FY21
FY20
323,757
31,642
4,769
30,721
34,661
6,651
29,797
229,499
691,497
160,410
18,580
-
15,174
15,239
-
18,580
66,649
294,632
Luke Gleeson – Head of Corporate Development
FY21
FY20
320,878
30,622
4,769
28,770
25,305
6,229
28,899
183,500
628,972
118,333
18,846
-
9,774
11,242
-
18,846
53,291
230,332
Daina Del Borrello – General Manager People & Company Culture
FY21
FY20
Total
FY21
FY20
227,763
20,382
4,769
21,281
23,853
4,538
18,947
88,076
409,609
119,634
8,526
-
6,167
11,365
-
8,526
41,219
195,437
1,778,824
233,873
56,406
191,397
182,013
36,847
131,351 3,705,216
6,315,927
1,161,226
102,885
-
109,204
110,317
10,000
102,885
1,087,432
2,683,949
79%
60%
69%
44%
65%
45%
42%
35%
39%
40%
31%
30%
64%
48%
1.
The CY20 STI Bonuses were paid half in cash and half in shares (included in the cash bonus and share-based payments columns of the table, respectively).
The CY20 STI Bonuses (cash and Shares) were provided to Executives during FY21 rather than shares to be issued to the Executive Directors, which remain
subject to shareholder approval. The Cash Bonus and STI columns reflect the amortisation over the testing period for FY21, being 1 July 2020 to 31 December
2020. The value of the cash and Shares portions of the 2021 Gap STI is amortised over the testing period, being 1 January 2021 to 31 August 2021, in line with the
service requirements, with the Shares fair-valued at grant date. The 2021 Gap STI Bonuses have only been accrued, and not paid out, during FY21. They have
been accounted for on the basis that it was more than probable that they would be achieved at 30 June 2021, given the likelihood of these critical short term
performance targets being successfully achieved and awarded at the absolute discretion of the Board of Directors in August 2021.
2.
Table 16 refers to the performance rights held by Executives which were converted to Shares during FY21, with the remainder of the expense relating
to the expensing of unvested performance rights over the period.
76 Bellevue Gold Limited
Shareholdings of Directors and other KMP
The movement during the reporting period in the number of Shares held, directly, indirectly or beneficially,
by each KMP, including their related parties, is as follows:
Table 15: Detail and movement in KMP shareholdings during FY21
Received during
the year on the
conversion of
Performance Rights
Received during
the year on the
achievement
of STI
Held at
1 July 2020
Purchases
Sold during
the year
Held at
30 June 2021
Directors
Kevin Tomlinson
-
Fiona Robertson
36,300
Shannon Coates
-
-
-
-
Stephen Parsons
30,000,000
3,500,000
Michael Naylor
1,300,000
750,000
Executives
Samuel Brooks
2,537,500
750,000
Craig Jones
-
Luke Gleeson
408,000
-
-
Daina Del Borrello
-
50,000
Total
34,281,800
5,050,000
-
-
-
-
-
21,380
27,715
28,110
12,717
89,922
140,000
69,730
40,000
330,000
160,000
20,000
65,000
120,000
-
-
-
-
-
-
140,000
106,030
40,000
33,830,000
2,210,000
(1,065,570)
2,263,310
-
-
-
92,715
556,110
62,717
944,730
(1,065,570)
39,300,882
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. No options granted as compensation
in previous years and which have vested remain outstanding at the end of the year.
Details of rights held by Directors and other KMP
Performance rights
The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of FY21.
All vested performance rights were exercisable.
Table 16: Detail and movement in Director and KMP rights held overs shares during FY21
Held at
1 July 2020
Granted during
the year
Vested and
exercised
Vested and
not yet exercised
Forfeited
Unvested Value to Vest1
Directors
Kevin Tomlinson
600,000
Fiona Robertson
Shannon Coates
-
-
-
-
-
-
-
-
Stephen Parsons
7,000,000
2,000,000
3,500,000
Michael Naylor
1,500,000
990,000
750,000
Executives
Samuel Brooks
4,660,000
Craig Jones
2,799,998
Luke Gleeson
2,840,000
Daina Del Borrello
1,334,800
-
-
-
-
750,000
-
-
50,000
200,000
-
-
-
-
-
-
-
-
Total
20,734,798
2,990,000
5,050,000
200,000
-
-
-
-
-
-
-
-
-
-
400,000
70,905
-
-
-
-
5,500,000
2,123,600
1,740,000
840,571
3,910,000
636,519
2,799,998
424,929
2,840,000
363,277
1,284,800
164,344
18,474,798
4,624,145
1.
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 77
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78 Bellevue Gold Limited
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Directors' Report 79
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P
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, seek approval prior to dealing and provide confirmation of dealings in the Company’s
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 25 November 2020, the Company received more than 99.55% “For” votes
on its Remuneration Report for the year ended 30 June 2020. 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 2021 or 30 June 2020.
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 $60,542 in repayments for the provision of the office rent, outgoings and office
stationery, and office fit out from July 2020 to October 2020. (2020: $127,273), which is not included in the remuneration
tables. Mr Parsons ceased to be a Non-Executive Director of Blackstone Minerals Limited on 24 December 2020.
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 2021 totalling $77,000 (2019: $69,000), which is not included in the remuneration tables.
The contract with Blue Leaf Corporate Pty Ltd with regard to these services ceased on 1 April 2021.
END OF REMUNERATION REPORT
This report is signed in accordance with a resolution of the Board of Directors.
Stephen Parsons
Managing Director
23 September 2021
80 Bellevue Gold Limited
Auditor’s Independence
Declaration
Directors' Report 81
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation RC:TGF:BELLEVUE:011 Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843 Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au Auditor’s independence declaration to the directors of Bellevue Gold Limited As lead auditor for the audit of the financial report of Bellevue Gold Limited for the financial year ended 30 June 2021, I declare 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. This declaration is in respect of Bellevue Gold Limited and the entities it controlled during the financial year. Ernst & Young Russell Curtin Partner 23 September 2021 Financial
Statements
82 Bellevue Gold Limited
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1
Financial Statements 83
Financial
Statements
Consolidated Statement
of Profit or Loss and Other
Comprehensive Income
Income
Other income
Total Other Income
Expenses
Accounting and audit
Consultants and contractors
Corporate costs
Depreciation and amortisation expense
Depreciation of right-of-use asset
Employee benefits
Exploration expenditure expensed and written off
Listing and compliance
Office rental and outgoings
Share-based payments
Travel and accommodation
Other
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
12
11
3
4
5
6
84 Bellevue Gold Limited
2021
$’000
76
76
(115)
(512)
(1,815)
(703)
(138)
(3,506)
(8)
(1,348)
(320)
(4,210)
(125)
-
(12,800)
(12,724)
481
(12,243)
-
(12,243)
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)
(12,243)
(5,687)
(1.46)
(0.96)
For the year ended 30 June 2021 Consolidated Statement
of Financial Position
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
Right-of-use asset
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
The above should be read in conjunction with the accompanying notes.
Notes
2021
$’000
2020
$’000
7
8
9
10
11
12
13
12
14
12
14
15.1
15.2
94,088
1,151
1,010
96,249
4,776
139,916
1,063
145,755
242,004
16,320
106
1,006
17,432
1,008
2,888
3,896
21,328
220,676
273,555
3,504
(56,383)
220,676
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
Consolidated Financial Statements 85
For the year ended 30 June 2021
Consolidated Statement
of Cash Flows
Operating Activities
Payments for exploration & evaluation (expensed)
Payment to suppliers and employees
Interest received
Research and development tax credit received
Other income
Notes
2021
$’000
(2)
(6,487)
498
-
68
2020
$’000
(306)
(3,665)
216
2
50
Net cash flows used in operating activities
7.1
(5,923)
(3,703)
Investing Activities
Payment for exploration and evaluation (capitalised)
Payments for property, plant and equipment
EIS Grant Co-funded Exploration Drilling Program
Research and development tax credit received
Investment in term deposit
Other (deposit for credit cards facility)
Net cash flows used in investing activities
Financing Activities
Proceeds from issue of shares and option exercises
Capital raising costs for issue of shares
Principal elements of lease payments
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
The above should be read in conjunction with the accompanying notes.
15.1
15.1
12
7
(58,422)
(3,824)
165
-
5,000
(286)
(57,367)
139,046
(5,743)
(165)
133,138
69,848
-
24,240
94,088
(35,263)
(780)
-
663
(5,000)
(61)
(40,441)
50,591
(1,976)
-
48,615
4,471
-
19,769
24,240
86 Bellevue Gold Limited
For the year ended 30 June 2021 Consolidated Statement
of Changes in Equity
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 from reserve upon exercise of options
Transfer from reserve upon exercise of
performance rights
Share-based payments expensed
Share issue costs
Balance as at 30 June 2020
Loss for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year
Shares and options issued during the year
Transfer from reserve upon exercise of options
Transfer from reserve upon exercise of
performance rights
Share-based payments expensed
Share issue costs
Balance as at 30 June 2021
Contributed
equity
$’000
Notes
Share-
based
payments
reserve
$’000
Accumulated
losses
$’000
83,078
6,227
(38,453)
-
-
-
50,591
2,575
937
-
(1,976)
-
-
-
-
(2,575)
(937)
1,730
-
135,205
4,445
-
-
-
139,149
2,260
2,684
-
(5,743)
-
-
-
-
(2,260)
(2,684)
4,003
-
(5,687)
-
(5,687)
-
-
-
-
-
(44,140)
(12,243)
-
(12,243)
-
-
-
-
-
15.1
15.2
15.2
15.1
15.1
15.2
15.2
15.1
Total
equity
$’000
50,852
(5,687)
-
(5,687)
50,591
-
-
1,730
(1,976)
95,510
(12,243)
-
(12,243)
139,149
-
-
4,003
(5,743)
273,555
3,504
(56,383)
220,676
The above should be read in conjunction with the accompanying notes.
Consolidated Financial Statements 87
For the year ended 30 June 2021 Notes to the Consolidated
Financial Statements
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 accounting estimates and judgements applied
to these areas are disclosed in note 25(d).
(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 20. 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.
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 2021 (including comparatives) were approved
and authorised for issue by the Board of Directors on
23 September 2021.
(a) Historical cost
The financial statements have been prepared under the
historical cost convention, except for certain financial
instruments, which have been measured at fair value.
(b) Functional and presentation currency
The financial statements are presented in Australian dollars,
which is the Company’s presentation 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.
88 Bellevue Gold Limited
For the year ended 30 June 2021 2. Other income
COVID 19-Government Grant
Research and development incentive
Sundry Income
3. Share-based payments expense
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
Short-term incentives
Forfeiture of performance rights
4. Finance income
Interest income
30 June 2021
$’000
30 June 2020
$’000
68
-
8
76
50
2
-
52
30 June 2021
$’000
30 June 2020
$’000
4,436
-
207
(433)
4,210
1,907
33
-
(210)
1,730
30 June 2021
$’000
30 June 2020
$’000
481
481
227
227
Notes to the Consolidated Financial Statements 89
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
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 30% (2020: 27.5%)
Tax effects of amounts which are not deductible / (taxable) in calculating
taxable income:
Non-Deductible expenses
Share-based payment expense
Net deferred tax assets not brought to account
Income tax (benefit)/expense
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following:
Deferred tax assets temporary differences
Deferred tax assets losses
Deferred tax liabilities
30 June 2021
$’000
30 June 2020
$’000
(12,243)
(3,673)
-
17
1,263
2,393
-
3,844
46,922
(40,362)
10,403
(5,687)
(1,564)
-
6
476
1,082
-
1,679
24,810
(19,797)
6,692
Deferred tax assets have not been recognised in respect of tax losses because it is not probable that within the immediate
future taxable profit will be available against which deductible temporary differences and tax losses can be utilised.
The estimated potential deferred tax asset at 30% not brought to account which is attributable to tax losses carried
forward at 30 June 2021 is approximately $10.403 million (2020: $6.692 million at 27.5%).
6. Loss per share
Net loss attributable to ordinary shareholders of the Company used
in calculating basic and diluted loss per share
Weighted average number of ordinary shares outstanding during
the year used in calculation of basic and dilutive loss per share
Loss per share (cents per share)
30 June 2021
$’000
30 June 2020
$’000
(12,243)
(5,687)
836,509
(1.46)
590,997
(0.96)
The balance of unexercised options at the end of the period are 50,000 (2020: 32,550,000). The balance of performance
rights that have not been exercised at the end of the period are 19,405,406 (2020: 23,784,798). As the Company incurred a
loss for each year presented, these options and performance rights are anti-dilutive and are not used in the determination
of diluted earnings per share for the current and comparative periods.
90 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
7. Cash and cash equivalents
Cash at bank
Term deposits (maturity period less than 3 months)
30 June 2021
$’000
30 June 2020
$’000
94,088
-
94,088
1,687
22,553
24,240
The Group’s exposure to interest rate risk and sensitivity analysis for financial assets and liabilities are disclosed in note 16.
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
Loss on written down assets
Other non-cash items
Changes in assets and liabilities
Change in trade and other receivables
Change in other assets
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
Fuel tax credit
Other receivables
(12,243)
(5,687)
841
4,210
8
63
33
284
(370)
547
704
307
1,730
102
-
13
(229)
-
203
(142)
(5,923)
(3,703)
30 June 2021
$’000
30 June 2020
$’000
3
750
128
270
1,151
19
441
48
201
709
Notes to the Consolidated Financial Statements 91
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
9. Other assets
Current
Prepayments
Security deposits
Fuel Inventory
Term deposits
30 June 2021
$’000
30 June 2020
$’000
493
436
81
-
1,010
149
150
-
5,000
5,299
Total
$’000
1,004
780
(307)
(12)
1,465
1,944
(479)
1,465
-
-
-
-
-
-
-
-
1,388
4,076
-
-
(703)
(62)
1,388
4,776
1,388
5,884
-
(1,108)
10. Property, plant and equipment
Furniture &
equipment
$’000
Computer
& office
equipment
$’000
Plant &
equipment
$’000
Mobile
equipment
$’000
Buildings &
infrastructure
$’000
Assets
under
construction
$’000
28
43
(14)
-
57
84
(27)
57
609
(78)
(46)
542
609
(67)
44
91
(30)
-
105
157
(52)
105
853
(208)
(16)
734
964
(230)
273
232
(103)
(12)
390
552
(162)
390
270
(139)
-
521
815
309
139
(86)
-
362
499
(137)
362
324
(149)
-
537
822
(294)
(285)
350
275
(74)
-
551
652
(101)
551
632
(129)
-
1,054
1,286
(232)
Net carrying values
Balance at 1 July 2019
Additions
Depreciation
Disposals
Balance at 30 June 2020
Cost
Accumulated depreciation
Net carrying values
Balance at 1 July 2020
Additions
Depreciation
Disposals
Balance at 30 June 2021
Cost
Accumulated depreciation
92 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
11. Exploration and evaluation
Carrying amount at the beginning of the year
Capitalised expenditure at cost
Change in rehabilitation provision
Written off exploration expenditure assets
EIS Grant Co-funded Exploration Drilling Program
Research and development tax credit
Carrying amount at the end of the year
30 June 2021
$’000
30 June 2020
$’000
75,028
64,626
435
(8)
(165)
-
36,903
38,677
-
(102)
-
(450)
139,916
75,028
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.
12. Leases
The Group has lease contracts for office rental used in its operations. The building has a lease term of five years plus
a three-year option. Set out below are the carrying amounts of right-of-use assets recognised and the movements
during the period:
Carrying amount at the beginning of the year
Additions
Depreciation
Carrying amount at the end of the year
Buildings
$’000
30 June 2020
$’000
-
1,201
(138)
1,063
-
1,201
(138)
1,063
Set out below are the carrying amounts of right-of-use liabilities recognised and the movements during the period:
Carrying amount at the beginning of the year
Additions
Accretion of interest
Payments
Carrying amount at the end of the year
Current
Non-current
30 June 2021
$’000
30 June 2020
$’000
-
1,201
78
(165)
1,114
106
1,008
-
-
-
-
-
-
-
Notes to the Consolidated Financial Statements 93
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 The following are the amounts recognised in profit or loss:
Depreciation expense for right-of-use-asset
Interest expense on lease liabilities
Total amount recognised in profit or loss
30 June 2021
$’000
30 June 2020
$’000
138
78
216
-
-
-
Expenses recorded that pertain to short-term leases, leases of low value assets and variable lease payments amounted
to $7,188,641 for 30 June 2021 (2020: $66,870).
13. Trade and other payables
30 June 2021
$’000
30 June 2020
$’000
11,068
556
4,696
16,320
6,788
158
1,434
8,380
30 June 2021
$’000
30 June 2020
$’000
563
443
1,006
128
2,760
2,888
286
206
492
34
2,325
2,359
Current
Trade payables
Other payables
Accrued expenses
14. Provisions
Current Provision
Provision for annual leave
Provision for short-term incentives
Non-Current Provision
Provision for long service leave
Mine rehabilitation
94 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
15. Contributed equity and reserves
15.1 Contributed equity
30 June 2021
Shares
30 June 2020
Shares
30 June 2021
$’000
30 June 2020
$’000
Fully paid ordinary shares
858,787,395
684,551,731
273,555
135,205
Movement in ordinary shares on issue
Number of Shares
Balance at 30 June 2019
Shares issued
Exercise of options
Vested performance rights1
Transfers from the reserve upon exercise of options
Share issue costs
Balance at 30 June 2020
Shares issued
Shares issued upon achievement of STI
Exercise of options
Vested performance rights1
Transfers from the reserve upon exercise of options
Share issue costs
Balance at 30 June 2021
501,031,680
120,870,051
58,750,000
3,900,000
-
-
684,551,731
135,045,742
89,922
32,500,000
6,600,000
-
-
$'000
83,078
50,000
591
937
2,575
(1,976)
135,205
135,046
103
4,000
2,684
2,260
(5,743)
858,787,395
273,555
1. 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 the share-based payments
reserve over the vesting period.
Notes to the Consolidated Financial Statements 95
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 15.2 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.
30 June 2021
$’000
30 June 2020
$’000
4,445
6,227
-
4,436
(2,260)
(2,684)
(433)
3,504
33
1,907
(2,575)
(937)
(210)
4,445
2020
WAEP
0.23
0.16
0.37
Share-Based Payments Reserve
Balance at beginning of the year
Share-based payment transactions
Share options issued
Performance rights issued
Transfer out of reserve upon
Exercise of share options
Exercise of performance rights
Forfeiture of performance rights
Balance at the end of the year
15.3 Share Options
There were no share options granted during the year.
The following tables illustrates options movement during the year ended 30 June 2021:
30 June 2021
$’000
2021
WAEP
30 June 2020
$’000
Outstanding at the beginning of the year
32,550,000
Exercised during the year
(32,500,000)
Outstanding at the end of the year
Exercisable at the end of the year
50,000
50,000
0.37
0.25
0.60
91,300,000
(58,750,000)
32,550,000
32,550,000
There was no share-based payment expense recognised in this period, as the options were fully expensed in prior
periods. The average share price on the exercise of options throughout the year was $1.035 (30 June 2020: $0.586).
96 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
15.4 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 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 non-market 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 table illustrates the number of, and movements in, Performance Rights during the year:
Outstanding at the beginning of the year
Performance Rights granted
Performance Rights vested
Lapsed/forfeited during the year
Outstanding at the end of the year
Vested and exercisable
30 June 2021
Number
30 June 2020
Number
23,784,798
3,561,477
19,350,000
11,434,798
(6,600,000)
(3,900,000)
(1,340,869)
(3,100,000)
19,405,406
23,784,798
200,000
1,100,000
During the period, the company issued 3,561,477 performance rights (30 June 2020: 11,434,798) to employees with various
non-market vesting conditions all of which pertained to the achievement of goals specific to each individual’s role.
2,990,000 of the performance rights issued relate to the Long-Term Incentive issued to Key Management Personnel the
details of the performance milestones are contained within the Remuneration Report. The performance rights have a
contained service period of 2-3 years. The average share price on the exercise of performance rights throughout the
year was $1.035 (30 June 2020: $0.586).
The fair value of each performance right has been determined to be equivalent to the company’s share price on grant
date. During the period, these fair values ranged from $0.136 to $1.23 (30 June 2020: $0.136 - $0.64) depending on the
date of grant.
During the period, the Company recorded a share-based payment expense of $4,436,000 (30 June 2020: $1,907,000)
equivalent to the total fair value of the performance rights amortised straight-line over any existing vesting period or
service period. In this respect, the company has judged that each individual will achieve the performance milestones
and meet any service condition criteria.
Forfeited rights resulted in a reversal of previously recognised expense through the profit or loss. These amounted
to $433,000 during the period (30 June 2020: $210,000).
Notes to the Consolidated Financial Statements 97
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 16. Financial instruments
Financial Risk Management
The Group has exposure to the following risks arising
from financial instruments:
16.2 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.
• 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.
16.1 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.
The Group holds all of its cash and cash equivalents
with banks and financial institution counterparties with
acceptable credit ratings of AA- or above. As part of
managing its credit risk on cash and cash equivalents,
all funds are only held in the big four 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:
Financial Assets
Cash and cash
equivalents
Trade and other
receivables
Term deposits
Total
30 June
2021
$’000
30 June
2020
$’000
Notes
7
8
9
94,088
24,240
1,151
709
-
5,000
95,239
29,949
None of the Company’s trade and other receivables
are past due or impaired at 30 June 2021.
98 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 16.3 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 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 Audit and Risk Management Committee meets on a
regular basis to analyse financial risk exposure, liquidity
management and evaluate treasury management
strategies in the context of the most recent economic
conditions and forecasts.
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.
6 months
$’000
6-12 months
$’000
1-5 years
$’000
>5 years
$’000
Total
$’000
30 June 2021
Non-derivative financial liabilities
Trade and other payables
Lease liabilities
30 June 2020
11,624
52
Non-derivative financial liabilities
Trade and other payables
6,946
16.4 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:
-
54
-
-
775
-
233
11,624
1,114
-
-
6,946
30 June
2021
$’000
30 June
2020
$'000
Financial Assets
Cash and cash equivalents
94,088
Term deposits
Total
Interest rate
-
94,088
24,240
5,000
29,240
0.10% 0.25% and 1%
Interest rate sensitivity
The sensitivity analysis in the following table illustrates the
impact of 100 basis points in variable interest rates, with all
other variables held constant, and would have resulted in an
increase/ (decrease) in the Group’s loss before tax as follows
100bp increase
100bp decrease
30 June
2021
$’000
941
(941)
30 June
2020
$'000
292
(292)
The Group has no loans or borrowings.
Notes to the Consolidated Financial Statements 99
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 17. 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.
18. Commitments
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:
30 June 2021
$’000
30 June 2020
$'000
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.
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 still unknown
as at 30 June 2021.
20. Subsidiaries
The following list contains the particulars of all of the
subsidiaries of the Group:
Within one year
1,462
1,396
More than one year but
less than five years
Total
5,848
7,310
5,583
6,979
Name of Entity
Parent Entity
Country of
Incorporation
30 June
2021
%
30 June
2020
%
19. 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:
a)
b)
2% net smelter royalty plus GST in respect
of any gold; and
1.5% net smelter return plus GST in respect
of any nickel or other minerals; and
Bellevue Gold Limited
Australia
100
100
Subsidiary
Golden Spur
Resources Pty Ltd
Giard Pty Ltd
Weebo Exploration
Pty Ltd
Australia
Australia
Australia
Green Empire Pty Ltd
Australia
100
100
100
100
100
100
100
100
100 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 21. Related party disclosures
a) Key Management Personnel
Disclosures relating to Key Management Personnel are set out in the remuneration report in the Directors’ Report.
Key Management Personnel Compensation
Short term employee benefits
Long-term employee benefits
Post-employment benefits
Share-based payments (non-cash)
30 June 2021
$’000
30 June 2020
$'000
2,644
37
199
4,017
6,897
1,543
10
112
1,266
2,931
b) Transactions with Related Parties
Transactions with related parties are on normal commercial terms and at conditions no more favourable than those
available to other parties unless otherwise stated.
Payment for Goods and Services
Blackstone Minerals Limited1
Blue Leaf Corporate Pty Ltd2
30 June 2021
$’000
30 June 2020
$'000
61
77
138
127
69
196
1. Blackstone Minerals Limited were paid for the provision of the office rent, outgoings and office stationery, and office fit out tables from
1 July 2020 to October 2020. Mr Parsons ceased to be a Non-Executive Director of Blackstone Minerals Limited on 24 December 2020.
2. Blue Leaf Corporate Pty Ltd, a company of which Mr Naylor is a Director, provided accounting services to the Group. The contract with
Mr Naylor with regard to these services ceased on 1 April 2021.
Payable to Related Parties
There were no amounts payable to related parties at the current and previous reporting date.
Loans to/from Related Parties
There were no loans to or from related parties at the current and previous reporting date.
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.
Notes to the Consolidated Financial Statements 101
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 22. Parent entity disclosure
The following information relates to the parent entity, Bellevue Gold Limited, as at and for the year ended 30 June 2021:
30 June 2021
$’000
30 June 2020
$’000
(11,700)
-
(11,700)
94,643
129,451
224,094
2,282
1,136
3,418
273,555
3,504
(56,383)
220,676
(6,394)
-
(6,394)
95,365
1,138
96,503
960
34
994
135,205
4,445
(44,141)
95,509
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
102 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021
23. Auditor’s remuneration
The following information relates to the parent entity, Bellevue Gold Limited, as at and for the year ended 30 June 2021:
Audit services
Current auditors of the company – Ernst & Young
Audit and review of financial statements
Other assurance services
Previous auditors of the company – Grant Thornton Audit Pty Ltd
Audit and review of financial statements
Other services
Tax advice and compliance services - Ernst & Young1
Tax advice and compliance services – Grant Thornton
30 June 2021
$’000
30 June 2020
$'000
71
5
-
77
-
153
-
-
38
-
13
81
1. These services were provided prior to the appointment of Ernst & Young as auditors.
24. Events subsequent to reporting date
On 2 September 2021, the Company announced both the results of the Stage 2 Feasibility Study and the underwritten and
credit-approved loan of $200 million from leading resource specialist Macquarie Bank Limited for 6 years at an interest
margin of 3.5% per annum (above BBSY) pre-Project Completion and 3% per annum post Project Completion.
On 3 September 2021, the Company successfully completed a $106 million fully underwritten share placement to
institutional investors before costs at $0.85 per share.
Bellevue also announced plans to undertake a non-underwritten share purchase plan targetting up to $25 million at
the placement price of $0.85 per share.
The impact of the COVID-19 pandemic is ongoing, and while it had limited impact on the Group up to 30 June 2021,
it is not practicable to estimate the potential impact after the reporting date. The Group will continue to monitor the
restrictions and health advice from the West Australian Government and diligently respond to risks that may arise.
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.
Notes to the Consolidated Financial Statements
103
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 25. 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 22 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.
(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
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 the performance rights with non-market
conditions are measured based on the fair value of the
security. The fair value of performance rights for 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
104 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 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 share-based payment expense
with a corresponding increase in equity. The fair value
is measured at grant date and recognised over the
period of service during which the employees become
unconditionally entitled to the performance rights.
Non-market based conditions
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 share-
based payment 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
were determined in the prior period using a combination
of analytical approaches, binomial tree and Monte Carlo
simulation where market conditions exist. There were
no long-term share rights with market conditions issued
during the current period. The fair 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 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
Fixtures and fittings
Computer equipment
Exploration equipment
Land and buildings
Depreciation rate
5 years
2–3 years
3–5 years
8–15 years
The assets’ 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.
Notes to the Consolidated Financial Statements 105
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 (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 if recognised.
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 taxable 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 Group
will derive sufficient future assessable income to enable
the benefit to be realised and comply with the conditions
of deductibility imposed by the law.
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.
(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
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.
Payments for exploration and evaluation expenditure
are recorded net of any government grants and
partner contributions.
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
106 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 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.
Given that the mine site has not yet been placed back in
production there are no amortisation charges to record for
the 2021 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 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.
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.
Classification and measurement of financial liabilities
The Group’s financial liability is in trade and other
payables is 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 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.
(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.
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.
Notes to the Consolidated Financial Statements 107
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 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.
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 discounted by reference to market
yields as at reporting date on high quality corporate bonds.
(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.
(m) Revenue
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.
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 2021 (2020: 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.
(q) Earnings per share
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.
(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.
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.
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.
108 Bellevue Gold Limited
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 (s) New accounting standards and interpretation
The Company has adopted all new or amended
Accounting Standards and Interpretations issued by
the AASB that are mandatory for the current reporting
year. Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not
been early adopted.
(t) Impact of standards issued but not yet applied
A number of new standards, amendment of standards
and interpretation that have recently been issued but
not yet effective have not been adopted by the Group
as at the financial reporting date. The Group has
reviewed these standards and interpretations and has
determined that none of the new or amended standards
will significantly affect the Group’s accounting policies,
financial position or performance.
(r) Leases
An assessment is made, at inception or when contract
terms are changed, to determine whether the contract
is, or contains a lease. A contract contains a lease if the
contract conveys a right to control the use of an identified
asset for a period of time in exchange for consideration.
The Group will assess whether a contract contains a lease,
at inception of the contract. The Group recognises a
right-of-use asset and a corresponding lease liability
with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases
with a lease term of 12 months or less) and leases of low
value assets.
For these leases, the Group recognises the lease
payments as an operating expense on a straight-line
basis over the term of the lease unless another systematic
basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present
value of the lease payments that are not paid at
the commencement date, discounted by using the
rate implicit in the lease. If this rate cannot be readily
determined, the Group uses its incremental borrowing rate.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
• fixed payments (including in-substance fixed
payments), less any lease incentives receivable;
• variable lease payments that are based on an index
or a rate;
• amounts expected to be payable by the lessee under
residual value guarantees;
• the exercise price of a purchase option if the lessee
is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the
lease term reflects the lessee exercising that option.
The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by
reducing the carrying amount to reflect the lease
payments made. The lease liability is measured with
reference to an estimate of the lease term.
Notes to the Consolidated Financial Statements 109
Notes to the Consolidated Financial StatementsFor the year ended 30 June 2021 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 2021 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 2021.
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 2021
110 Bellevue Gold Limited
Independent Auditor’s Report
Ernst & Young
11 Mounts Bay Road
Perth WA 6000 Australia
GPO Box M939 Perth WA 6843
Tel: +61 8 9429 2222
Fax: +61 8 9429 2436
ey.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
(collectively the Group), which comprises the consolidated statement of financial position as at 30
June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, 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 consolidated financial position of the Group as at 30 June 2021
and of its consolidated financial 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 (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matter
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. The matter we identified was addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do
not provide a separate opinion on the matters. For the matter below, our description of how our audit
addressed the matter is provided in that context. We have determined the matter described below to
be a key audit matter to be communicated in our report.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, Including in relation to this matter. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matter below, provide the basis for our audit opinion on the
accompanying financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RC:TGF:BELLEVUE:012
Independent Auditor’s Report 111
Independent Auditor’s Report
112 Bellevue Gold Limited
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation RC:TGF:BELLEVUE:012 1. Carrying value of capitalised exploration and evaluation assets Why significant How our audit addressed the key audit matter During the period, the Group capitalised $64.626M of costs incurred to exploration and evaluation assets. At balance date, the Group’s exploration and evaluation assets are $139.916M. This balance represents 58% of the Group’s total assets and is therefore considered a significant component of the financial statements. AASB 6 Exploration for and Evaluation of Mineral Resources requires specific criteria to be met for costs to initially be capitalised and then carried forward as exploration and evaluation assets. At each reporting date, management is required to apply judgment to determine whether facts and circumstances indicate that exploration and evaluation assets may be impaired. These judgments require greater audit attention. Therefore, the significance of the Group’s exploration and evaluation assets balance and the existence of judgments applied by management in assessing for indicators of impairment has resulted in our assessment that this is a key audit matter. We evaluated the Group’s assessment as to whether there were any indicators of impairment which would require the carrying value of exploration and evaluation assets to be tested for impairment. In performing our audit procedures, we: Considered the Group’s rights to explore in the relevant exploration areas which included obtaining and assessing supporting documentation. Considered the Group’s intention to carry out significant exploration and evaluation activities in the relevant exploration areas which included assessing whether the Group’s cash-flow forecasts included planned exploration and evaluation activities, and enquiring with senior management and Directors as to the intentions and strategy of the Group. Considered the Group’s assessment of whether the commercial viability of extracting mineral resources had been demonstrated and whether it was appropriate to continue to classify the capitalised expenditure for the area of interest as an exploration and evaluation asset. Considered whether there was any other data or information that indicated the carrying value of the capitalised exploration and evaluation expenditure would not be recovered in full from successful development or by sale. We also assessed the adequacy of disclosures in the financial report. Independent Auditor’s Report
Independent Auditor’s Report 113
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation RC:TGF:BELLEVUE:012 Information other than the financial statements and auditor’s report The Directors are responsible for the other information. The other information comprises the information included in the Company’s Annual Report for the year ended 30 June 2021, 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 accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. 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 consistent with the financial report and our knowledge obtained in the audit or otherwise doesn’t appear 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 relating to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit Independent Auditor’s Report
114 Bellevue Gold Limited
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation RC:TGF:BELLEVUE:012 evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the Directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Independent Auditor’s Report
ASX Additional Information 115
A member firm of Ernst & Young Global LimitedLiability limited by a scheme approved under Professional Standards Legislation RC:TGF:BELLEVUE:012 Report on the audit of the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in the Directors' report for the year ended 30 June 2021. In our opinion, the Remuneration Report of Bellevue Gold Limited for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Ernst & Young Russell Curtin Partner Perth 23 September 2021 ASX Additional Information
As at 24 August 2021
Top 20 Holders of Ordinary Shares
Rank
Holder name
No. Shares % of Issued capital
1
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15
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19
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
SYMORGH INVESTMENTS PTY LTD
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