A N N U A L R E P O R T
2 0 2 0
A B N 4 3 1 O 7 1 5 9 7 1 3
For personal use only CORPORATE DIRECTORY
DIRECTORS
Gary Comb (Executive Chairman)
Simon Noon (Managing Director)
Richard Monti (Non-Executive Director)
Andrew Parker (Non-Executive Director)
COMPANY SECRETARY
Jerry Monzu
REGISTERED OFFICE
Level 1, 105 St Georges Terrace
PERTH WA 6000
SHARE REGISTRY
Automic Group Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
BANKERS
Australian and New Zealand Banking Group Limited
Level 1, 1275 Hay Street
WEST PERTH WA 6005
AUDITOR
Stantons International
Level 2, 1 Walker Avenue
WEST PERTH WA 6005
STOCK EXCHANGE LISTING
Pacifico Minerals Limited shares are listed on the
Australian Stock Exchange under the ticker code ‘PMY’.
WEBSITE ADDRESS
www.pacificominerals.com.au
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TABLE OF CONTENTS
CHAIRMAN’S REPORT
MANAGING DIRECTOR’S REPORT
OPERATIONS REPORT
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
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1
2
4
15
24
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 25
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
SHAREHOLDER INFORMATION
26
27
28
29
52
53
57
FORWARD LOOKING STATEMENTS
This Annual Report may contain forward looking statements. Such statements are only predictions, based on certain assumptions
and involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. Actual
events or results may differ materially from the events or results expected or implied in any forward-looking statement. The inclusion
of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying
assumptions or that any forward-looking statements will be or are likely to be fulfilled. The Company undertakes no obligation to
update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities
exchange disclosure requirements). The information in this document does not consider the objectives, financial situation or needs
of any person. Nothing contained in this document constitutes investment, legal, tax, or other advice.
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CHAIRMAN’S REPORT
Dear Shareholders,
P a g e | 1
On behalf of your Board of Directors, I am delighted to present the 2020 Annual Report and report on the significant
progress that Pacifico Minerals has made during the past financial year.
I was incredibly pleased to have joined Pacifico as Chairman in March 2020 and continue to be impressed by the
outstanding calibre of the team and our partners. I share the team’s very deserved enthusiasm about the significant
opportunity presented by the Sorby Hills project which has the potential to be a regional project of scale given its well-
defined large-scale Mineral Resource.
Firstly, let me acknowledge the outstanding work of the team in the preparation of the Optimised Pre – Feasibility
Study (‘PFS’) on the Sorby Hills deposit, which was released following the conclusion of the financial year in August
2020. The PFS has further strengthened our view of the great opportunity presented by the Sorby Hills project and
confirms the attractive economics of the project and rapid payback period, even when taking a conservative view on
the 10-year average forecast prices for lead and silver.
We are particularly pleased by our continued progress towards de-risking the project and the team has made
significant progress on this front with key approvals already secured, including Mining Leases and Western Australian
Environmental Protection Authority approval.
The team continues to take a long-term view that will see shareholder value delivered. Consistent with this view, and
to complement the already large global resource at Sorby Hills, Pacifico strategically expanded south of the deposit
through the acquisition of tenement E80/5317 ‘Eight Mile Creek’ during the financial year. This expanded tenement
package is an attractive development that potentially lays the foundation for Pacifico’s long term growth in the region
and complements the existing Sorby Hills Project.
With the PFS now completed, it has strengthened our resolve and conviction to make this deposit a profitable mine.
To help turn this into a reality, the team was pleased to execute a $10 million capital raising in September 2020 that
will see Pacifico fully funded until a Financial Investment Decision is made on the Project.
The team has already started financial year 2021 strongly and following the recent capital raising, Pacifico is fully
funded to progress its Definitive Feasibility Study of the proposed mine plan and operations at Sorby Hills.
The Board is thankful for the continued support of our shareholders and I would like to commend the Pacifico team
for their hard work and dedication during the year.
We look forward to another exciting year as we continue to advance the Sorby Hills Project towards development.
Gary Comb
Executive Chairman
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MANAGING DIRECTOR’S REPORT
P a g e | 2
The 2020 financial year (‘FY20’) has been a successful year for Pacifico Minerals and I would like to thank the team for
their significant efforts.
Following an updated Mineral Resource Estimate earlier in the year, and just following the completion of FY20 in August
2020, we were pleased to release an Optimised Pre-Feasibility Study (‘PFS’) on the Sorby Hills Project.
The PFS confirms the attractiveness of the Sorby Hills project. Highlights from the PFS included the following:
•
•
•
•
•
•
The Project delivers strong Pre-Tax economics with a Pre-Tax NPV8 of A$303 million generating an IRR of 46% with
a payback period of ~1.6 years (assuming conservative average 10-year lead and silver prices).
Sorby Hills can be brought into production for an anticipated A$183 million of pre-production expenditure
comprising:
o Pre-Production Mining capex of A$24 million;
o Process Plant & Infrastructure of A$126 million; and
o Contingency and other capex of A$33 million.
Sorby Hills will have a strong C1 cash costs position of US$0.40/lb payable Pb (including a Net Silver Credit of
US$0.27lb/ payable Pb) delivering a life of mine (‘LoM’) operating margin of 40%.
The Project is anticipated to produce an average 81kdmt of 62% Lead-Silver Concentrate, 50kt of recovered lead
& 1.5Moz recovered silver per annum across an expected 10 years mine life.
Sorby Hills is supported by a significant large, near surface Pb-Ag-Zn deposit. Mineral Resource of 44.1Mt at 3.3%
Pb, 38g/t Ag and 0.5% Zn (4.2 % Pb equivalent) and Proved and Probable Reserves of 13.6Mt at 3.6%Pb and 40.2g/t
Ag (5.0% Pb equivalent).
Further significant expansion and exploration upside potential to Base Case assumptions through the inclusion of
a Dense Media Separator (‘DMS’) within the process circuit and exploration upside from tenement E80/5317 –
‘Eight Mile Creek.’
The advanced permitting of the Sorby Hills project, coupled with the detailed PFS, will allow Pacifico to progress to the
immediate commencement of a Definitive Feasibility Study (‘DFS’). Running concurrently with our DFS process, Pacifico
focused on financing initiatives for the project, including discussions with potential offtake partners. Reflecting this,
Pacifico was pleased to complete a $10 million Placement and launch a Share Purchase Plan (‘SPP’) to fully fund a DFS
and Final Investment Decision on its Sorby Hills Lead-Silver-Zinc Project in September 2020.
To further bolster the already robust Sorby Hills project, Pacifico Minerals acquired a newly granted tenement E80/5317
– ‘Eight Mile Creek’ during the financial year. This strategic acquisition covers 217km2 to the northeast of Kununurra
and south of the Sorby Hills project and adds over 30km of strike length of prospective exploration ground adjacent to
the Sorby Hills deposit. Pleasingly, this acquisition results in Pacifico Minerals now holding all unrestricted exploration
property surrounding the Pincombe inlier which may provide extensions to Sorby Hills’ mineralisation corridor. This
will pave the way for Pacifico to operate a potential large scale mining district in the future.
Pacifico is committed to working with all local stakeholders and communities and with the Eight Mile Creek acquisition,
we were pleased to have executed on a Native Title, Heritage Protection and Mineral Exploration Agreement for the
tenement. This lays the foundation for a productive and collaborative relationship with the Miriuwung and Gajerrong
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MANAGING DIRECTOR’S REPORT (CONTINUED)
P a g e | 3
Aboriginal people, who will benefit from future exploration and any future production from the Eight Mile Creek
tenement.
Early during the 2020 financial year, we were pleased to have announced the completion of a $4.6 million capital raising
at $0.008 per share. The funds raised were used to complete the phase III drilling program, complete the PFS, and
advance the Definitive Feasibility Study. On behalf of the board and management team, we are thankful for the level
of shareholder support received.
In September 2020 we were pleased to execute an over-subscribed $10 million capital raising to fund Sorby Hills to a
final investment decision. The capital raising was strongly supported by quality institutional and strategic shareholders
and provides Pacifico with a solid platform to launch into Sorby Hill’s DFS workstreams and fully focus on further de-
risking and adding value to the Project ahead of a Final Investment Decision in 2021. In addition to the $10 million
Placement the company launched a Share Purchase Plan (‘SPP’) to raise up to $2 million at $0.018 per share.
I would like to thank the Board for their guidance and support this year and all Pacifico employees and partners for their
contributions to our success. I would also like to reiterate my thanks to our shareholders who have continued to support
Pacifico execute on its growth strategy.
I look forward to a productive and busy 2021 financial year.
Simon Noon
Managing Director
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
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P a g e | 4
OPERATIONS REPORT
PROJECTS
SORBY HILLS PROJECT, WESTERN AUSTRALIA – LEAD, SILVER, ZINC (PACIFICO 75%)
The Sorby Hills Project (the ‘Project’) is the largest undeveloped, near-surface Lead-Silver-Zinc deposit in Australia. The
Project is located in the Kimberley Region of Western Australia, 1.2 km west of the WA/NT border, 50km northeast of
Kununurra and 130km east of Wyndham Port (Figure 1). The Project comprises granted mining leases covering six
known Lead-Silver-Zinc deposits (Figure 2). Pacifico’s 75% interest in the Project is via a Joint Venture with contributing
partner Henan Yuguang Gold and Lead Co Ltd (‘Yuguang’), China’s largest Lead smelter and Silver producer.
During the period, the Pacifico undertook a Pre-Feasibility Study (‘PFS’) on the Sorby Hills Project. The study comprised:
•
•
•
•
•
•
over 9,200m of drilling and assaying across 124 drill holes;
detailed metallurgical testwork;
an updated Mineral Resource Estimate;
detailed hydrological studies;
revised mine, process plant and infrastructure design; and
an Ore Reserve Estimate.
The work culminated with the release of the PFS results in August 2020 and confirmed Sorby Hills as a technically and
economically robust project.
Based on the positive PFS results, Pacifico has immediately commenced a Definitive Feasibility Study (‘DFS’) and is
targeting a Decision to Mine in the second half of calendar year 2021.
Figure 1: Transport Route from the Project to Wyndham Port.
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P a g e | 5
Figure 2: Location of the Sorby Hills deposits with respect to local
Geology and the granted mining tenements.
Drilling Results
During the period, more than 9,200m across 124 holes were drilled and/or assayed. Drilling primarily focused on shallow
extensions and infill drilling at the Omega deposit (previously deposits CDEF) and B deposit (Figure 3).
Notable results from the drilling program are shown in Table 1.
The combined results of the drilling program have confirmed the continuity of mineralisation across shallow and
previously underexplored areas of the Sorby Hills deposit and discovered exciting new and shallow near-mine targets
for follow-up in future drilling programs.
In September 2020, Pacifico announced the commencement of a 5,200m 68-hole drilling campaign aimed at providing
material for DFS testwork, extending the size of the current Mineral Resource, and exploring new targets proximal to
the Sorby Hills deposit.
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Table 1: Significant results from drilling and assaying undertaken at Sorby Hills during the period.
P a g e | 6
Program
Phase II
Phase III
Hole ID
ACD058
ACD082
ACD071
ACD080
ACD056
AB052
AB050
AB051
SH_PD_A-18
SH_PD_A-31
SH_PD_A-15
SH_PD_A-15
SH_PD_A-05
SH_PD_A-032
SH_PD_A-35
Deposit
Length
From
Omega
Omega
Omega
Omega
Omega
B
B
B
Omega
Omega
Omega
Omega
B
Wildcat
Wildcat
8.0m
22.0m
23.0m
14.0m
21.0m
15.0m
11.0m
11.0m
18.0m
10.0m
6.0m
10.0m
9.0m
5.0m
7.0m
80m
68m
59m
24m
23m
15m
29m
25m
10m
110m
47m
25m
36m
5m
6m
Pb
12.4%
8.8%
9.0%
13.0%
5.0%
5.1%
6.9%
5.3%
5.1%
7.2%
9.5%
4.7%
4.3%
5.4%
2.3%
Ag
51g/t
52g/t
88g/t
89g/t
21g/t
18g/t
26g/t
31g/t
36g/t
383g/t
55g/t
34g/t
37g/t
24g/t
16g/t
Zn
0.3%
0.3%
1.2%
1.0%
0.5%
0.2%
0.1%
0.4%
0.2%
0.4%
0.3%
0.5%
0.8%
-
-
Figure 3: Location of drill hole collars relative to the surface projection of the Omega and B deposits.
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Mineral Resource Estimate
During the period, the Company undertook two updates to the Sorby Hills Mineral Resource.
P a g e | 7
•
•
The first, completed by CSA Global in October 2019, resulted in a 20% increase in the global Mineral Resource
and a 53% increase in the Indicated portion Mineral Resource on a tonnage basis.
The second, completed by CSA Global in June 2020 (Table 2), represented in a further 20% increase in the
contained Lead within the Measured and Indicated Resource categories and a further 28% in the contained
Silver within the Measured and Indicated Resource categories.
Since acquiring Sorby Hills in 2018, Pacifico has undertaken three phases of drilling that have increased the total
Resource tonnage by more than 50% and almost tripled the contained metal classified as a Measured and Indicated
Resource (Figure 4).
As part of the Mineral Resource update, the Pacifico undertook an in-depth review of both historic and recently acquired
data and in doing so has, together with GSA Global, developed a significantly higher degree of confidence in the
geological and mineralisation model for Sorby Hills and an invaluable tool for targeting orebody extensions.
Table 2: Sorby Hills Project June 2020 Mineral Resource Estimate
Measured
Indicated
Inferred
Deposit Mt
A
B
Omega
Norton
Alpha
Beta
-
0.5
4.2
2.4
-
-
Pb
(%)
-
4.3
4.3
4.3
-
-
Ag
(g/t)
-
24
45
83
-
-
Zn
(%)
-
0.3
0.4
0.3
-
-
Mt
-
1.3
9.2
2.2
1
-
Pb
(%)
-
4.2
3.2
3.4
2.8
-
Ag
(g/t)
-
24
29
38
50
-
Zn
(%)
-
0.3
0.4
0.5
0.6
-
Mt
0.6
-
2.5
16
1
3.3
Pb
(%)
6.1
-
3
2.5
3.4
4.6
Total
7.1
4.3
57
0.4
13.7
3.3
31
0.4
23.4
3
Ag
(g/t)
32
-
23
30
85
61
36
Zn
(%)
1.2
-
0.6
0.4
1.4
0.4
Mt
0.6
1.8
15.8
20.6
2
3.3
Total
Pb
Ag
(%)
6.1
4.3
3.5
2.8
3.1
4.6
(g/t)
32
24
32
37
67
61
38
Zn
(%)
1.2
0.3
0.4
0.4
1
0.4
0.5
0.5
44.1
3.3
Notes. 1. Information is extracted from the report titled “Mineral Resource Update Sorby Hills Pb-Ag-Zn Project” released on 2 June 2020 and is
available at www.pacificominerals.com.au/.
2.Tonnes and grade are rounded.
Figure 4: Increase in the Sorby Hills Mineral Resource since acquisition in 2018.
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Metallurgical Testwork
During the period, Pacifico undertook a range of metallurgical testwork as part of the PFS to support process plant
design calculations and engineering.
P a g e | 8
Comminution
Comminution (crushing and grinding) tests were performed on four composite samples to add to the existing database.
The testwork included SMC Test, Bond rod and ball mill and abrasion index testing.
The testwork showed that Sorby Hills ore is amenable to semiautogenous grinding (‘SAG’), having medium-coarse
competency and a medium hardness ball mill work index in the range 9 to12kWh/t.
Flotation Recovery
Updated flotation testwork was conducted on four composite samples (one oxide and three fresh ore types). The
flotation circuit consists of a staged sulphide and oxide rougher followed by two stages of combined rougher
concentrate cleaning. The primary grind size is P80 106μm. No regrind is necessary to sufficiently liberate the valuable
minerals. The reagent regime is simple consisting of soda ash, collector, frother, and sodium hydrosulphide for oxide
ore sulphidisation.
The testwork culminated with a locked cycle test of the prime life of mine (‘LOM’) grade fresh composite which
represents the majority of the PFS feed schedule.
Heavy Liquid Separation (‘HLS’)
Updated HLS beneficiation testwork was carried out on six fresh (primary) ore composites with head grades ranging
from 1.0 to 5.4%Pb to confirm amenability to beneficiation. The samples were tested at -12 to +1 mm size fraction over
the specific gravity (‘SG’) range 2.7 to 3.0 in 0.1 increments
Results from HLS testwork on low-grade samples showed a good response averaging 79.5% Pb recovery to a -12 +1mm
sinks + -1mm fines product containing 24.5% mass, equating to an upgrade ratio of 3.24x.
Good upgrades were also obtained from the higher-grade samples; however, the reject grade also increases and is
considered too high at this stage.
While a conventional crush-mill-float processing circuit was adopted as the Base Case for the PFS, an alternative circuit
employing HLS via a Dense Media Separator (‘DMS’) was also investigated in detail. Pacifico will continue to investigate
the DMS option through the DFS work program as it has significant potential to enhance Project value by allowing for
the economic treatment of lower grade ore.
Hydrological Studies
During the period, a detailed hydrogeological site investigation and modelling was completed by Pennington Scott.
The results of the investigation, together with Pacifico’s reinterpreted geological model were combined to develop a
hydrogeological conceptual site model of the Sorby Dolomite and Webber Plane alluvial aquifers. Results from new
pump tests as well as reinterpreted historical pump tests have indicated that the Sorby Dolomite is not as permeable
as previously thought.
Modern radial flow analysis was undertaken to develop a regional groundwater model over the mining area.
Additionally, water balance modelling, coupled with catchment modelling of the Keep River, was undertaken to develop
a seasonal stormwater harvesting and surface water management strategy for the Project.
Pre-Feasibility Study
In August 2020, Pacifico released the results of the Sorby Hills PFS. The PFS Base Case incorporates the mining of 14.8Mt
of ore from four deposits, namely: Omega, A, B and southern portion of Norton. Mined ore will be treated via a simple
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crush-mill-flotation circuit at a rate of 1.5Mtpa over a nominal 10-year mine life to produce a Lead-Silver concentrate
with an average grade of 62% Pb and 580 g/t Ag. Concentrate produced at the Project will be transported by road to
Wyndham Port from where it will be shipped to customers.
P a g e | 9
Economic highlights of the Project include:
•
•
•
a strong Pre-Tax NPV8 of A$303M generating an IRR of 46% with a payback period of ~1.6 years and Pre-Tax
Life of Mine Net Operating Cash Flow of A$747M or ~A$75M per annum;
low C1 cash costs position of US$0.40/lb payable Pb (including a Net Silver Credit of US$0.27lb/ payable Pb1)
delivering an LOM operating margin of 40%; and
and anticipated $183M of pre-production expenditure comprising: Pre-Production Mining of A$24M; Process
Plant (including EPC Fee) of A$105M; Infrastructure of A$21M, Contingency A$20M and Owners costs A$13M.
A summary of the PFS LOM metrics and Operating costs is shown in Table 3 and Table 4, respectively.
Well advanced opportunities exist to scale-up the Project including the incorporation of known near-surface Resources
into the Mine Plan and the inclusion of a DMS within the processing circuit to increase throughput and allow for the
economic treatment of lower grade ore.
Next Steps
Having finalised the PFS, Pacifico will move immediately to progress DFS, offtake, financing and approvals workstreams,
with work expected to include:
• Drilling. The next phase of drilling program will endeavour to expand the Resource at the Alpha and Beta
deposits, demonstrate continuity between the Norton deposit and the Omega deposit and target a range of
exciting prospects located within the existing mining leases.
• DFS. The positive results of the PFS support progressing the Sorby Hills Project to a DFS level. Off the back of
the upcoming drilling program, Pacifico will begin a range of studies to further refine and elevate the Project
in preparation for securing financing during 2021.
•
Financing. Pacifico will execute its Project Financing Plan in parallel to the planned technical and approvals
workstream. To this end, Pacifico has received confirmation for the Federal Government’s Northern Australia
Infrastructure Facility that the Project had passed into the due diligence stage of its funding assessment
process.
• Offtake. Sorby Hills’ operations have demonstrated the ability to produce a lead-silver concentrate that is likely
to attract high payability and no penalties. Discussions with potential offtake partners, including Joint Venture
partner Yuguang, has commenced to both inform the optimisation of the concentrate specification, and
establish a pathway to reaching a binding offtake agreement prior to final investment decision.
• Approvals. Sorby Hills Project has already received Approvals from the Western Australian Minister for
Environment and EPA for an open pit mine and associated infrastructure. Moving forward with the DFS scope
of work, Pacifico will follow due process to amend these approvals and conditions in line with advancements
in the Project.
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Table 3: Key Life of Mine Metrics
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Item
Economic Assumptions
Lead Price
Silver Price
Exchange Rate
Physicals
Life of Mine (LOM)
Mined Ore
Strip Ratio
Processed Tonnes
Processed Lead Grade
Processed Silver Grade
Lead Recovery
Silver Recovery
Recovered Lead
Recovered Silver
Concentrate Produced
Payable Lead
Payable Silver
Cash Flow
Lead Revenue
Silver Revenue
Gross Revenue
Royalties
Unit
Base Case
US$/t
US$/oz
A$:US$
Years
kBCM
Waste : Ore (BCM)
2,095
21.10
0.70
9.9
5,161
8.0x
14,760
3.63%
39.5
93.3%
80.3%
500.2
15.1
806.8
475.2
14.3
1,422.3
431.1
1,853.3
(69.5)
(290.3)
1,493.6
(746.3)
747.3
(182.8)
(24.3)
(105.4)
(20.5)
(13.1)
(19.6)
(32.2)
532.3
303.4
46%
1.6
kt
%
g/t
%
%
kt
Moz
kdmt
kt
Moz
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
%
Years
TC/RC & Transport
Net Revenue
On Site Operating Costs
Net Operating Cash Flow
Upfront Capital Cost
- Mining Pre-Production
- Process Plant Incl. EPC Fee
- Infrastructure
- Owners Costs
- Contingency
Sustaining Capital Costs
Net Project Cash Flow (Pre-Tax)
Value Metrics
Pre-Tax NPV8
Pre-Tax IRR
Pre-Tax Payback Period#
# Payback calculated from first production.
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P a g e | 11
Cost Centre
Mining
Processing
G & A
Transport
Table 4: Unit Operating Costs
A$M A$/t ore A$/lb Pb# US$/lb Pb#
347
292
107
108
161
23.48
19.80
7.28
7.35
10.93
0.33
0.28
0.10
0.10
0.15
0.97
0.23
0.20
0.07
0.07
0.11
0.68
Lead Treatment Charges
C1 Cost excl. Silver Credits 1,016
68.85
Silver Revenue
(431)
(29.21)
(0.41)
(0.29)
Silver Refining Charge
20
1.38
C1 Cost incl. Silver Credits
606
41.03
Lead Royalty
Silver Royalty
Sustaining Capex
59
10
32
4.01
0.70
2.18
All-In Sustaining Cost
707
47.91
0.02
0.58
0.06
0.01
0.03
0.67
0.01
0.40
0.04
0.01
0.02
0.47
# Payable Metal basis
Ore Reserve Estimate
In conjunction with the PFS, Pacifico released a maiden Ore Reserve Estimate for the Sorby Hills (Table 5). The Ore
Reserve was prepared by independent mining consultants Entech Pty Ltd (‘Entech’). The PFS was used as the basis to
estimate Ore Reserves for the Project reported in accordance with the JORC Code 2012. The Ore Reserve was estimated
from the Mineral Resource after consideration of the level of confidence in the Mineral Resource and taking into
account material and relevant modifying factors.
The Ore Reserve Estimate represents a 100% conversion of Measured and Indicated Resource included in the PFS Mine
Plan.
Table 5: Sorby Hill Ore Reserve Estimate (August 2020)
Classification Mt
Pb
Ag
(%)
(kt)
(g/t)
(Moz)
Proved
6.8
4.1 275 53.0
11.5
Probable
6.9
3.2 219 27.6
6.1
Total
13.6 3.6 494 40.2
17.6
Notes:
1. Ore Reserves are a subset of Mineral Resources.
2. Ore Reserves are estimated using a lead price of US$2,095/tonne and silver price of US$21.10/ounce and USD/AUD
exchange rate of 0.7.
3. Ore Reserves are estimated using a cut-off grade of 1.5% Pb.
4. The above data has been rounded to the nearest 100,000 tonnes, 0.1% lead grade and 10,000 lead tonnes, 1g/t silver
grade and 1,000,000 silver ounces. Errors of summation may occur due to rounding.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
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P a g e | 12
OPERATIONS REPORT(CONTINUED)
EIGHT MILE CREEK – LEAD, SILVER, ZINC (PACIFICO 100%)
On 21 April 2020, the Company announced the acquisition of tenement E80/5317 ‘Eight Mile Creek’. This strategic
landholding has the potential to become a new mining district (Figure 5) and the Company is paving the way for a long-
term future within the region.
Eight Mile Creek is 100% Pacifico owned, covers 217km2 and adds a further 30km strike length of near-surface
prospective horizon for exploration adjacent the Sorby Hills deposit. Pacifico now holds all unrestricted exploration
property surrounding the Pincombe Inlier which provides the potential for extensions to the Sorby Hills mineralisation
corridor.
A native title and mineral exploration agreement has been executed for the tenement laying the foundation for a
productive and collaborative relationship with the traditional owners and providing employment and economic
opportunities.
Figure 5: Location of the E80/5317 ‘Eight Mile Creek’ tenement with respect to the Sorby Hills Project.
BORROLOOLA WEST PROJECT, NORTHERN TERRITORY – COPPER, ZINC, LEAD, SILVER (PACIFICO 51%)
The Project consists of five exploration licences and one mining licence spanning approximately 812 km2 within the
McArthur and Mt Isa Basins, host to several world-class mines including McArthur River, Mount Isa, Teena, and Century.
Our Joint Venture Partner, with a contributing 49% interest, is Sandfire Resources NL. Pacifico also owns a 100% interest
in the strategically located tenement EL31354 covering 122km2. There is also an exploration licence application
ELA26599 covering around 858km2 (manganese potential).
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OPERATIONS REPORT(CONTINUED)
During the period EL30157 was relinquished. Further exploration work is on hold to allow the Company to focus on the
Sorby Hills Project.
P a g e | 13
MOUNT JUKES PROJECT, TASMANIA – GOLD, BASE METALS (PACIFICO 15%)
The Mt Jukes Project is adjacent to the Mt Lyell copper-gold project in Tasmania. Corona Resources Limited is the
operator and manager of this Project. Further details can be found at www.coronaresources.com.au.
SOUTH AUSTRALIAN PROJECT – COBALT, COPPER, MANGANESE (PACIFICO 100%)
During the quarter, Pacifico’s South Australian tenements (EL6168 and EL6169) were relinquished.
COLOMBIAN PROJECTS – GOLD, COPPER, SILVER (PACIFICO 100%)
The Berrio Project is situated within the southern part of the Segovia Gold Belt, from which several million ounces of
gold have been produced over the past century. The Project is 35km from the Magdalena River, which is navigable to
the Caribbean Sea, and has excellent infrastructure in place. The Project area is underlain by the Sergovia and Antioquia
Batholiths which are prospective for large gold systems in vein and stockwork systems.
The Natagaima Project is situated in the department of Tolima, 5km west of the Magdalena River. It is located within
the Middle Cauca Porphyry Belt.
The Urrao Project is part of the Choco Porphyry copper belt and is located 35km northwest of Tarso. The Projects are
considered highly prospective for the discovery of economic copper-gold deposits.
Work on the Colombian Projects has been suspended while the Company focuses on the Sorby Hills Project. Pacifico is
working towards securing Joint Venture Partners or buyers for the Colombian Projects.
COMPETENT PERSONS STATEMENTS
Information relating to Production Targets and Financial Forecasts is sourced from an ASX announcements titled “Sorby
Hills PFS Delivers Outstanding Results” and “Amended Announcements” released on 25th August 2020 and available at
www.pacificominerals.com.au. The Company confirms that all material assumptions underpinning the Production
Targets and Financial Forecasts included in these announcements continue to apply and have not materially changed.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Daniel Donald, who
is a full-time employee of Entech Pty Ltd and has sufficient experience relevant to the style of mineralisation and type
of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2012 edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Mr Donald consents to the inclusion in this report of the matters based on his information in the form and context in
which it appears and is a Member of the AusIMM.
The information in this report that relates to Mineral Resources is based on, and fairly reflects, information compiled
by Mr David Williams, a Competent Person, who is an employee of CSA Global Pty Ltd and a Member of the Australian
Institute of Geoscientists (#4176). Mr Williams has enough experience relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in
the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves
(JORC Code). Mr Williams consents to the disclosure of information in this report in the form and context in which it
appears.
The information in this release that relates to Exploration Results is based on information prepared by Dr Simon Dorling.
Dr Dorling is a member of the Australasian Institute of Geoscientists (Member Number: 3101). Dr Dorling has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the JORC Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Dorling consents to the inclusion in
the release of the matters based on their information in the form and context in which it appears.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
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OPERATIONS REPORT(CONTINUED)
All parties have consented to the inclusion of their work for the purposes of this announcement. The interpretations
and conclusions reached in this presentation are based on current geological theory and the best evidence available to
the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment
of probabilities and, however high these probabilities might be, they make no claim for absolute certainty. Any
economic decisions which might be taken on the basis of interpretations or conclusions contained in this announcement
will therefore carry an element of risks.
P a g e | 14
METAL EQUIVALENT CALCULATION METHOD
The contained metal equivalence formula is based on the Sorby Hills PFS including:
•
•
•
•
Lead Price US$2,095/t;
Silver Price US$21.1/oz;
Silver recovery of 80.3% (weighted average of oxide and fresh Ag recoveries); and
Silver Payability rate of 95%.
It is Pacifico’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be
recovered and sold. The formula used to calculate lead equivalent grade is:
MetalEq (%) = Gpri + (Gpri × [∑i Ri Si Vi Gi ]/(Rpri SpriVpriGpri))
where R is the respective metallurgical metal recovery rate, S is the respective smelter return rate, V is metal price/tonne
or ounce, and G is the metal commodity grade for the suite of potentially recoverable commodities (i) relative to the
primary metal (pri).
Metal equivalents are highly dependent on the metal prices used to derive the formula. Pacifico notes that the metal
equivalence method used above is a simplified approach. The metal prices are based on the PFS values adopted and do
not reflect the metal prices that a smelter would pay for concentrate nor are any smelter penalties or charges included
in the calculation.
Owing to limited metallurgical data, zinc grades are not included at this stage in the lead equivalent grade calculation.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
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DIRECTORS’ REPORT
Your Board of Directors (‘Board’ or ‘Directors’) present their report on the consolidated entity (referred to hereafter as
the Group) consisting of Pacifico Minerals Limited and the entities it controlled at the end of, or during, the year ended
30 June 2020.
P a g e | 15
FINANCIAL AND OPERATING REVIEW
FINANCIAL REVIEW
The Group began the financial year with a cash reserve of $1,983,359. During the year total exploration expenditure
incurred by the Group amounted to $2,124,010 (2019: $2,220,830). In line with the Group’s accounting policies, all
exploration expenditure incurred in the ordinary course of operations was expensed. The result for the year was an
operating loss after income tax of $3,132,179 (2019: $3,344,077). During the year, Pacifico completed capital raisings
for $4,600,000 before costs. As at 30 June 2020, available cash funds totalled $2,908,551 (2019: $1,983,359).
OPERATING REVIEW
Summarised operating results for the year are as follows:
Geographic Segments
Australia
2020
Revenues
$
Results
$
Revenues and loss from ordinary activities before income tax expense
667,138
(3,073,688)
Colombia
Revenues and loss from ordinary activities before income tax expense
Consolidation
Revenue/(Loss before income tax)
Shareholder Returns
Basic Loss per share (cents per share)
154
(58,491)
(375,386)
-
291,906
(3,132,179)
2020
(0.11)
2019
(0.22)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the year there were no significant changes in the state of affairs of the Company other than as disclosed in this
report.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 25 August the Company announced the results of its completed Pre-Feasibility study and updated its Ore Reserve
Statement. It was noted that the Project delivers strong Pre-Tax Economics with a Pre-Tax NPV8 of A$303M generating
an IRR of 46% with a payback period of ~1.6years1. Pre-Tax Life of Mine Net Operating Cash Flow of A$747M or ~A$75M
per annum. The PFS base case (‘Whole Ore’) Production Target mines 14.7Mt (circa 92% Measured and Indicated, 8%
Inferred) at an average grade of 3.6% Pb and 39 g/t Ag.
On 18 September 2020 the Company announced that it had executed a capital raising to fund the Sorby Hills Project to
final investment decision. The Company had received binding commitments for a A$10 million Share Placement to
professional and institutional investors at an issue price of $0.018 issuing a maximum of 555,555,920 ordinary shares.
Concurrently the Company also announced that it would conduct a Share Purchase Plan to raise a maximum of A$2
million at an issue price of $0.018 per share, through the issue of up to 111,111,111 ordinary fully paid shares.
On 24 September 2020 the Company announced that the $10 million capital raising announced on the 18 September
2020 had been completed.
There were no further matters or circumstances that arose since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of the
Group in future financial years.
1 Economic assumptions are based on conservative 10-year average lead and silver prices
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DIRECTORS’ REPORT (CONTINUED)
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue exploration and development activities and to assess commercial opportunities for corporate
growth, including the acquisition of interests in projects, as they arise. Due to the unpredictable nature of these
opportunities, developments may occur at short notice.
P a g e | 16
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to substantial environmental regulation regarding its exploration activities. The Group endeavours
to maintain an appropriate standard of environmental care through awareness of, and compliance with, new and
existing environmental legislation. The Directors are not aware of any breach of environmental legislation for the year
under review.
RISK MANAGEMENT
The Board is responsible for ensuring that risks and opportunities are identified on a timely basis and that activities are
aligned with these. The Board has not established a separate risk management committee under the belief that it is
crucial for all Board members to be a part of this process. The Board has several mechanisms in place to ensure that
managements’ objectives are aligned with Board identified risks. Mechanisms include board approval of a strategic
plan (designed to meet stakeholders’ needs and reduce business risk), and Board approved operating plans and
budgets (with progress monitored by the Board).
CORPORATE GOVERNANCE
The Directors support and adhere to the principles of corporate governance, recognising the need for the highest
standard of corporate behaviour and accountability. The Directors are focused on fulfilling their responsibilities
individually, and as a Board, for the benefit of all Company stakeholders. That involves recognition of, and a need to
adopt, principles of good corporate governance. The Board supports the guidelines on the ‘Principles of Good
Corporate Governance and Recommendations – 3rd Edition’ established by the ASX Corporate Governance Council.
Given the size and structure of the Group, the nature of its business activities, the stage of its development and the
cost of strict and detailed compliance with all of the recommendations, it has adopted a range of modified systems,
procedures and practices which enable it to meet the principles of good corporate governance. The Groups’ practices
are consistent with the guidelines and where these do not directly relate to the recommendations in the guidelines
the Group considers that its adopted practices are appropriate. Corporate Governance policies can be found on the
Company website.
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Group has paid an insurance premium in respect of a Directors’ and Officers’ Liability
insurance contract. The insurance premium relates to liabilities that may arise from an officer’s position, except for
conduct involving a wilful breach of duty or improper use of information or position to gain personal advantage. The
contract of insurance prohibits the disclosure of the nature of the liabilities and the amount of premium.
DIRECTORS MEETINGS
The following table sets out the number of directors’ meetings held during the financial year and the number of
meetings attended by each director while they held the position. During the financial year, 4 board meetings were held
(2019: 4).
Directors
Gary Comb
Simon Noon
Richard Monti
Andrew Parker
Peter Harold
Board of Directors
Eligible
2
4
4
4
3
Attended
2
4
4
4
3
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DIRECTORS’ REPORT (CONTINUED)
P a g e | 17
INFORMATION ON DIRECTORS
GARY COMB BE(Mech), BSc, Dip Ed.
Executive Chairman
Gary was appointed 9 March 2020. Gary is an engineer with over 30 years’ experience in the Australian mining industry,
with a strong track record in successfully commissioning and operating base metal mines.
Interests in Shares, Options and Performance Rights
7,500,000 Ordinary Shares.
3,000,000 Class “B” Unlisted Performance Rights.
3,500,000 Class “C” Unlisted Performance Rights.
4,000,000 Class “D” Unlisted Performance Rights
Other Directorships in Listed Entities in the past three years
Flinders Resources Limited, Aurelia Metals Limited, Ironbark Zinc Limited and Cyprium Metals Limited.
RICHARD MONTI
BSc (Hons), Grad Dip AppFin., MAusIMM
Non-Executive Director
Richard was appointed 12 October 2009 and resigned as Non-Executive Chairman on 6 March 2020. Richard is a
geologist with a successful career of over thirty years in the international mineral resource industry resulting in broad
industry knowledge and strong strategic planning capabilities. Richard has over fourty-six director-years’ experience on
thirteen ASX and TSX listed mining and exploration companies from micro-caps through to mid-size miners and has built
and managed teams of up to seventy personnel. Richard was principal of a corporate advisory firm, Ventnor Capital,
from 2005 to 2010 and is currently principal of Terracognita which supplies advice to resource industry companies.
Interests in Shares, Options and Performance Rights
30,218,766 Ordinary Shares.
1,941,729 Listed Options.
4,000,000 Unlisted Options.
2,500,000 Class “B” Unlisted Performance Rights.
2,500,000 Class “C” Unlisted Performance Rights.
Other Directorships in Listed Entities in the past three years
Zinc of Ireland NL, Black Dragon Gold Corp, Alto Metals Limited and Caravel Minerals Limited.
PETER HAROLD B. AppSc (Chem), AFAICD
Non-Executive Director
Peter was appointed 8 October 2013 and resigned 7 April 2020.
Interests in Shares and Options at Resignation Date
4,250,495 Ordinary Shares.
Other Directorships in Listed Entities in the past three Years
Panoramic Resources Limited, Horizon Gold Limited, Ocean Grown Abalone Limited and Peak Resources Limited.
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DIRECTORS’ REPORT (CONTINUED)
ANDREW PARKER LLB
Non-Executive Director
Andrew was appointed 12 October 2009. Andrew is a lawyer with significant experience in the exploration and mining
industry and a wealth of expertise in corporate advisory, strategic consultancy, and capital raisings. Before Andrew
joined Pacifico, he co-founded Trident Capital Pty Ltd, a corporate advisory and venture capital firm where he held the
position of Managing Director until 2008.
P a g e | 18
Interests in Shares, Options and Performance Rights
7,384,262 Ordinary Shares.
833,333 Listed Options.
4,000,000 Unlisted Options.
2,000,000 Class “B” Unlisted Performance Rights.
2,000,000 Class “C” Unlisted Performance Rights.
Other Directorships in Listed Entities in the past three years
Nil.
SIMON NOON MAICD, AFAIM
Managing Director
Simon was appointed 19 October 2013. Simon is an experienced executive having spent the past 10 years’ managing
listed resources companies. Simon has a strong background in strategic management, business planning, finance and
capital raising, and experience with a variety of commodities.
Simon's career highlights include managing Groote Resources Limited from a market capitalisation of less than $5M, to
market highs in excess of $100M as the Executive Director. After leaving Groote, Simon co-founded West Rock Resources
Limited where he held the position of Managing Director until the company was acquired by Pacifico in 2013. While
managing West Rock, Simon secured and operated joint ventures and strategic alliances with mid and top tier miners.
As Pacifico’s Managing Director, Simon has led the company from a greenfields explorer to a company that has the
potential to become a significant global lead and silver producer.
Simon is a passionate member of the WA resources industry, a member of the Australian Institute of Company Directors
and an Associate Fellow of the Australian Institute of Management.
Interests in Shares, Options and Performance Rights
41,000,000 Ordinary Shares.
2,100,000 Listed Options.
8,500,000 Unlisted Options.
12,000,000 Class “B” Unlisted Performance Rights.
12,000,000 Class “C” Unlisted Performance Rights.
Other Directorships in Listed Entities in the past three Years
Nil.
JERRY MONZU FGIA, CPA, BBus
Company Secretary
Jerry is a corporate executive with over 25 years’ experience in corporate governance, finance and accounting across
various industry sectors globally acting as Company Secretary, Chief Financial Officer and Director of several private and
listed ASX, JSE and AIM companies throughout his career.
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P a g e | 1 9
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED)
Our remuneration report is set out under the following main headings:
A. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION;
B. DETAILS OF REMUNERATION;
C. SERVICE AGREEMENTS;
D. SHARE-BASED COMPENSATION; and
E. ADDITIONAL INFORMATION.
The information provided under headings A-D includes disclosures that are required under Accounting Standard AASB
124 Related Party Disclosures. These disclosures have been transferred from the financial report and have been audited.
A. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION (AUDITED)
Remuneration Policy
The remuneration policy of the Group aligns Directors and executives with shareholder and business objectives by
providing a fixed remuneration component and offering specific long-term incentives based on key performance areas
affecting the Group’s financial results. The Board believes the policy is appropriate and effective in its ability to attract
and retain high calibre executives and Directors.
The Board’s policy for determining the nature and amount of remuneration for Directors and executives of the Group is
as follows:
▪ All executives receive a base salary (based on factors such as experience) plus statutory superannuation.
▪
The Board reviews executive packages with reference to the Group’s performance, executive performance and
information from relevant industry sectors and comparable listed companies. Independent external advice is
sought where required.
The Board may exercise discretion in relation to approving incentives, bonuses, and the issue of options.
▪
▪ All remuneration paid to Directors and executives is valued at the cost to the Group and expensed.
The maximum aggregate amount of fees that can be paid to Directors is subject to approval by shareholders at the Annual
General Meeting (currently $200,000). Director fees are not linked to the performance of the Group however, to align
Director and shareholder interests, the Directors are encouraged to hold Company shares.
Performance Based Remuneration
The Group currently has no performance-based remuneration component built into Director and executive remuneration
packages.
Group Performance, Shareholder Wealth and Directors' and Executives’ Remuneration
The Group’s remuneration policy encourages the alignment of personal and shareholder interests through the issue of
options to Directors and executives. The Board believes this policy is effective in increasing shareholder wealth.
Voting and comments on the Remuneration Report at the 2019 Annual General Meeting
At the Company’s 2019 Annual General Meeting (“AGM”), a resolution to adopt the 2019 remuneration report was put
to a vote and passed unanimously on a show of hands with proxies received also indicating majority. 99.59% of validly
appointed proxies were in favour of adopting the remuneration report. No comments were made on the remuneration
report at the AGM.
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P a g e | 20
DIRECTORS’ REPORT (CONTINUED)
B. DETAILS OF REMUNERATION (AUDITED)
Details of the remuneration of the Directors as defined in AASB 124 Related Party Disclosures of the Group are set out in
the following table. Given the size and nature of operations of the Group, no other employees are required to have their
remuneration disclosed in accordance with the Corporations Act 2001.
Director
G. Comb
S. Noon
R. Monti
P. Harold
A. Parker
Totals
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
Salary & Fees
$
Non-Monetary (1)
$
Superannuation
$
31,666
-
-
-
3,008
-
240,000
209,539
15,037
58,826
22,800
19,906
40,842
43,200
-
-
4,121
4,104
25,725
32,400
-
-
2,629
3,078
32,677
36,400
-
-
3,335
3,458
370,910
321,539
15,037
58,826
35,893
30,546
Options
$
14,079
-
83,888
-
17,476
-
-
-
13,983
-
129,426
-
Total
$
48,753
-
361,725
288,271
62,439
47,304
28,354
35,478
49,995
39,858
551,266
410,911
(1) Relates to the movement in leave provisions for the period.
No retirement benefits are payable post-employment under the Group’s executive services agreements.
C. SERVICE AGREEMENTS (AUDITED)
Material terms of the Executives service agreements are as follows:
Gary Comb – Executive Chairman
• Remuneration payable of $100,000 per annum plus statutory superannuation;
• At the Boards discretion up to 50% of the Executive Chairman’s remuneration may be payable in shares,
subject to shareholder approval;
The right to participate in the Company’s Employee Share Incentive Plan as approved by the Board; and
The right to resign with no formal resignation period.
•
•
Simon Noon – Managing Director
• Remuneration payable of $240,000 per annum plus statutory superannuation;
•
•
•
Either party may terminate the agreement without cause on three months’ written notice;
The right to participate in the Company’s Employee Share Incentive Plan as approved by the Board; and
The Managing Director will not be paid a separate Director’s fee for service to the Board.
Richard Monti – Non-Executive Director
• Remuneration payable of $43,200 per annum plus statutory superannuation, on 9 March 2020 this was
reduced to $32,400 per annum plus statutory superannuation, upon his resignation as Non-Executive
Chairman;
The right to participate in the Company’s Employee Share Incentive Plan as approved by the Board; and
The right to resign with no formal resignation period.
•
•
Andrew Parker – Non-Executive Director
• Remuneration payable of $32,400 per annum plus statutory superannuation;
•
•
The right to participate in the Company’s Employee Share Incentive Plan as approved by the Board; and
The right to resign with no formal resignation period.
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DIRECTORS’ REPORT (CONTINUED)
D. SHARE-BASED COMPENSATION (AUDITED)
During the year 68,500,000 performance rights where issued to Directors (2019: Nil). No ordinary shares were issued to
Directors upon exercise of remuneration options during the year (2019: Nil).
P a g e | 21
Performance Income as a Proportion of Total Compensation
No performance-based bonuses were paid during the period (2019: Nil).
E. ADDITIONAL INFORMATION (AUDITED)
Movements in Shares
Movement in the number of ordinary shares in the Company held (directly, indirectly or beneficially) by each Director,
including their related parties, is shown below. There were no ordinary shares issued as part of Director remuneration
during the year (2019: Nil).
KMP
G Comb
R. Monti
S. Noon
A. Parker
P. Harold
KMP
R. Monti
S. Noon
P. Harold
A. Parker
Held at 1 July 2019
Movement
-
5,000,000
22,718,766
26,400,000
5,384,262
4,250,495
5,000,000
2,600,000
-
(4,250,495)*
58,753,523
8,349,505
Held at 1 July 2018
18,835,308
22,200,000
4,250,495
3,717,596
49,003,399
Movement
3,883,458
4,200,000
-
1,666,666
9,750,124
Held at 30 June 2020
5,000,000
27,718,766
29,000,000
5,384,262
-
67,103,028
Held at 30 June 2019
22,718,766
26,400,000
4,250,495
5,384,262
58,753,523
* Number of Ordinary Shares held by Mr. P Harold up to the date of his resignation on 7 April 2020.
Movements in Options
Movement in the number of options in the Company held (directly, indirectly or beneficially) by Directors, including their
related parties, during the reporting period is as follows:
KMP
G. Comb
R. Monti
S. Noon
A. Parker
P. Harold
KMP
R. Monti
S. Noon
P. Harold
A. Parker
Held at 1 July 2019
Other Changes (1)
Held at 30 June 2020
Vested at 30 June
2020
-
-
-
-
5,941,729
10,600,000
4,833,333
4,000,000
-
-
-
5,941,729
10,600,000
4,833,333
5,941,729
10,600,000
4,833,333
(4,000,000)
-
-
25,375,062
(4,000,000)
21,375,062
21,375,062
Held at 1 July 2018
4,000,000
8,500,000
4,000,000
4,000,000
20,500,000
Other Changes (2)
1,941,729
2,100,000
-
833,333
4,875,062
Held at 30 June 2019
5,941,729
10,600,000
4,000,000
4,833,333
25,375,062
Vested at 30 June
2019
5,941,729
10,600,000
4,000,000
4,833,333
25,375,062
(1) Shows number of Options held by Mr. P Harold up to the date of his resignation on 7 April 2020.
(2) Shows free attaching options on a 1-for-2 basis relating to the pro-rata issue in September 2018.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
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P a g e | 22
DIRECTORS’ REPORT (CONTINUED)
E. ADDITTIONAL INFORMATION (AUDITED) CONTINUED
Movements in Performance Rights
Movement in the number of Performance Rights in the Company held (directly, indirectly or beneficially) by Directors,
including their related parties, during the reporting period is as follows:
KMP
G. Comb
R. Monti
S. Noon
A. Parker
P. Harold
Held at 1 July 2019
-
-
-
-
-
-
Other Changes (1)
13,000,000
7,500,000
36,000,000
6,000,000
-
62,500,000
Held at 30 June 2020
13,000,000
7,500,000
36,000,000
6,000,000
-
62,500,000
Vested at 30 June 2020
-
-
-
-
-
-
(1) Mr P Harold held 6,000,000 Performance Rights up to the date of his resignation on 7 April 2020, these Performance rights were
cancelled on his resignation date.
Performance Rights issued to Directors during the period pursuant to terms approved by Shareholders at the 2019 Annual
General Meeting are shown below, All Performance Rights have various vesting conditions based on the achievement of
predetermined milestones.
KMP
G. Comb
R. Monti
S. Noon
A. Parker
Number Granted
13,000,000
7,500,000
36,000,000
6,000,000
62,500,000
Exercise Price
Nil
Nil
Nil
Nil
Grant Date
6/03/2020
29/11/2019
29/11/2019
29/11/2019
Fair Value at
Grant Date
26,000
29,750
142,800
23,800
Expiry Date
Various
30/06/2022
30/06/2022
30/06/2022
Details
Performance Rights
Exercise Price
Grant Date
Expiry Date
Class "A" Performance Shares
Class "B" Performance Shares
Class "C" Performance Shares
Class "D" Performance Shares
19,000,000
19,500,000
20,000,000
4,000,000
62,500,000
Nil
Nil
Nil
Nil
29/11/2019
29/11/2019
29/11/2019
6/03/2020
30/06/2022
30/06/2022
30/06/2022
6/03/2025
On 2 September 2020, Class “A” Performance Rights vested as the milestones associated with this class of Performance
Right were achieved, being the successful completion and announcement of the PFS and that the VWAP of the Company
Shares traded on the ASX equalled or exceed $0.012 per share for 10 consecutive business days.
END OF THE REMUNERATION REPORT
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 23
DIRECTORS’ REPORT (CONTINUED)
OPTIONS OVER ORDINARY SHARES
No Options were issued in 2020 (2019: 361,271,969).
Options on issue at the date of the Directors Report had the following expiry dates and exercise prices:
Expiry Date
Status
Exercise Price
Options
21/11/2020
21/11/2020
16/10/2021
Unlisted
Listed
Unlisted
$0.015
$0.015
$0.020
22,500,000
351,202,759
10,000,000
Performance Rights
A total of 68,500,000 Performance Rights (2019: Nil) were granted during the period to Directors with variable vesting
conditions based on the achievement of Performance milestones. During the period 6,000,000 Performance Rights were
cancelled on the resignation of Mr Peter Harold. Share-based payments booked during the period amounted to $129,426
(2019: $53,185).
Performance rights on issue at the date of the Directors Report had the following expiry dates and exercise prices:
Details
Class "B" Performance Shares
Class "C" Performance Shares
Class "D" Performance Shares
Performance
Rights
19,500,000
20,000,000
4,000,000
62,500,000
Exercise Price
Grant Date
Expiry Date
Nil
Nil
Nil
29/11/2019
29/11/2019
6/03/2020
30/06/2022
30/06/2022
6/03/2025
NON-AUDIT SERVICES
A technical valuation of performance rights was completed by Stantons International Securities, a company affiliated with
Stantons International who are the Auditors of the Company.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
on the following page.
Signed in accordance with a resolution of the Directors.
Gary Comb
Executive Chairman
30 September 2020
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
AUDITOR’S INDEPENDENCE DECLARATION
P a g e | 24
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
P a g e | 2 5
Revenue from Continuing Operations
Expenditure
Exploration Expenses
Salaries and Employee Benefits Expenses
Depreciation Expenses
Corporate Expenses
Occupancy Expenses
Consulting Expenses
Administration Expenses
Share Based Payments
Depreciation of Right of Use Assets
Interest paid on leased liabilities
Stamp Duty
Write Off Exploration and Evaluation Assets
(Loss) Before Income Tax
Income Tax
Total (Loss) for the Year
Other Comprehensive Income
Items That Will Not be Reclassified to Profit or Loss
Items That May be Reclassified Subsequently to Profit or Loss
Movement in Foreign Exchange Translation Reserve
Total Comprehensive (Loss)
(Loss) Attributed to the Members
Total Comprehensive (Loss) Attributed to the Members
Notes
5
6
6,12
6,13
13
6,10
7
2020
$
2019
$
291,906
104,877
(2,124,010)
(530,323)
(8,552)
(147,147)
(53,451)
(6,879)
(203,548)
(129,426)
(9,019)
(681)
(211,049)
-
(3,132,179)
-
(3,132,179)
-
-
-
(4,268)
(3,136,447)
(3,132,179)
(3,136,447)
(2,220,830)
(499,481)
(3,139)
(84,524)
(61,851)
(85,958)
(231,201)
(53,185)
-
-
(45,000)
(163,785)
(3,344,077)
-
(3,344,077)
-
-
-
(5,063)
(3,349,140)
(3,344,077)
(3,349,140)
Basic and Diluted Loss per Share for Loss Attributable to the Ordinary Equity
Holders of the Company (Cents per Share)
28
(0.11)
(0.22)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
Notes to the Financial Statements.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
P a g e | 2 6
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Other Assets
Total Current Assets
Non-Current Assets
Exploration and Evaluation Assets
Other Assets
Plant and Equipment
ROU Asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Provisions
Lease liability
Other Liabilities
Total Current Liabilities
Non-Current Liabilities
Lease liability
Deferred tax liability
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Reserves
Accumulated Losses
Total Equity
Notes
2020
$
2019
$
8
9
9
10
11
12
13
14
15
16
16
17
18
20
2,908,551
188,932
17,521
3,115,004
5,170,320
85,462
10,076
99,206
5,365,064
8,480,068
492,800
95,905
52,922
0
641,627
46,719
178,913
225,632
867,259
7,612,809
1,983,359
370,271
12,431
2,366,061
5,210,586
24,514
19,238
0
5,254,338
7,620,399
654,270
83,512
0
316,357
1,054,139
0
221,008
221,008
1,275,147
6,345,252
32,980,318
1,600,422
(26,967,931)
7,612,809
28,705,740
1,475,264
(23,835,752)
6,345,252
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Financial Statements.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
P a g e | 2 7
Issued Capital
Share / Option
Reserve
Foreign Currency
Translation Reserve
Accumulated
Losses
Total
2020
Balance at 1 July 2019
(Loss) for the Year
Other Comprehensive (Loss) for the Year
$
28,705,740
-
-
$
1,523,902
-
-
$
$
(48,638)
-
(23,835,752)
(3,132,179)
(4,268)
-
$
6,345,252
(3,132,179)
(4,268)
Total Comprehensive (Loss) for the Year
-
-
(4,268)
(3,132,179)
(3,136,447)
Issue of Shares/Options
Share/Option Issue Expense
Share Based Payments
4,600,000
(325,422)
-
-
-
129,426
-
-
-
-
-
-
4,600,000
(325,422)
129,426
Balance at 30 June 2020
32,980,318
1,653,328
(52,906)
(26,967,931)
7,612,809
2019
Balance at 1 July 2018
(Loss) for the Year
Other Comprehensive (Loss) for the Year
20,856,645
-
-
1,459,717
-
-
(43,575)
-
(20,491,675)
(3,344,077)
(5,063)
-
1,781,112
(3,344,077)
(5,063)
Total Comprehensive (Loss) for the Year
-
-
(5,063)
(3,344,077)
(3,349,140)
Issue of Shares
Share/Option Issue Expense
Share Based Payments
Balance at 30 June 2019
7,907,042
(587,947)
530,000
-
-
64,185
-
-
-
-
-
-
7,907,042
(587,947)
594,185
28,705,740
1,523,902
(48,638)
(23,835,752)
6,345,252
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Financial Statements.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
P a g e | 2 8
Cash Flows from Operating Activities
Expenditure on Mining Interests
Payments to Suppliers and Employees
Receipts from Federal Government "Cashboost"
Interest Received
Management fees
Net Cash (Outflow) from Operating Activities
Cash Flows from Investing Activities
Cash transferred into Security deposits
Payments for Purchase of Tenements/Projects
Payments for Purchase of Property, Plant and Equipment
Net Cash (Outflow) from Investing Activities
Cash Flows from Financing Activities
Proceeds from Issues of Shares
Payment of Share Issue Costs
Net Cash Inflow from Financing Activities
Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Financial Year
Effects of Foreign Exchange
Notes
2020
$
2019
$
(2,551,427)
(1,952,023)
(923,367)
(899,512)
50,000
-
33,811
23,286
123,732
-
27
(3,267,251)
(2,828,249)
(60,948)
-
(1,829)
(3,278,602)
(15,090)
(15,089)
(77,867)
(3,293,691)
4,600,000
7,907,042
(325,422)
(587,947)
4,274,578
7,319,095
929,460
1,197,155
1,983,359
791,267
(4,268)
(5,063)
Cash and Cash Equivalents at the End of the Financial Year
8
2,908,551
1,983,359
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial Statements.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 2 9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTES TO THE FINANCIAL STATEMENTS
1.
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies
have been consistently applied to all years presented unless otherwise stated. The financial report includes the financial
statements for Pacifico Minerals Limited (‘Parent’ or ‘Company’) and its subsidiaries (the ‘Group’) for the year ended
30 June 2020. The financial report was authorised for issue in accordance with a resolution of the Board of Directors of
Pacifico Minerals Limited on 30 September 2020. Pacifico Minerals Limited is a company incorporated in Australia
whose shares are publicly traded on the Australian Securities Exchange. The nature of the operations and principal
activities of the Group is exploration of mineral tenements in Australia and Latin America.
BASIS OF PREPARATION
(a)
This general-purpose financial report has been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Australian Interpretations, and the
Corporations Act 2001.
(i)
Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards
(‘AIFRS’). Compliance with AIFRS ensures that the financial statements and notes of Pacifico Minerals Limited comply
with International Financial Reporting Standards (‘IFRS’).
(ii)
Historical Cost Convention
Financial statements have been prepared under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of
property, plant and equipment.
(iii)
Going Concern Basis
The financial report has been prepared on a going concern basis, which contemplates continuity of normal business
activities and realisation of assets and settlement of liabilities in the ordinary course of business. The going concern
of the Group is dependent upon maintaining enough funds for its operations and commitments. The Directors
continue to monitor the funding requirements of the Group and are confident that funding can be secured as required
to enable the Group to continue as a going concern and are of the opinion that the financial report has been
appropriately prepared on a going concern basis.
(b)
PRINCIPLES OF CONSOLIDATION
(i)
Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies,
generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date that control ceases. The acquisition method of accounting is used to account for
business combinations by the Group (refer to Note 1(d)). Intercompany transactions, balances and unrealised gains
on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with policies adopted by the Group.
(ii)
Investment in Joint Ventures
A joint venture is an arrangement under which the Group has joint control, whereby the Group has rights to the net
assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Joint control is defined as
the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
relevant activities require the unanimous consent of the parties sharing control. Interests in joint ventures are
accounted for using the equity method.
P a g e | 3 0
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s
share of movements in other comprehensive income of the investee in other comprehensive income. Goodwill
relating to the joint venture is included in the carrying amount of the investment and is not amortised or tested
individually for impairment. Dividends received or receivable from joint ventures are recognised as a reduction in
the carrying amount of the investment.
Financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary,
adjustments are made to bring accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise an impairment
loss on its investment in the joint venture. An impairment loss is measured by comparing the recoverable amount
of the investment with the carrying amount. An impairment loss is recognised in the Consolidated Statement of
Profit or Loss and Other Comprehensive Income and is reversed if there has been a favourable change in the
estimates used to determine the recoverable amount.
Upon loss of significant influence over the joint venture, the Group measures and recognises any retained
investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of joint
control and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.
(iii)
Investment in Joint Operations
A joint arrangement occurs whereby the parties that have joint control of the arrangement have rights to the assets,
and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.
When a group entity undertakes its activities under a joint arrangement, the Group as operator, recognises in
relation to its interest in a joint arrangement its:
liabilities, including its share of any liabilities incurred jointly;
▪ assets, including its share of any assets held jointly;
▪
▪ revenue from the sale of its share of the output arising from the joint operation;
▪ share of the revenue from the sale of the output by the joint operation; and
▪ expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in
accordance with the IFRS Standards applicable to the certain assets, liabilities, revenue and expenses. When a group
entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or contribution of
assets), the Group is considered to be conducting the transaction with the other parties to the joint operation, and
gains and losses resulting from the transactions are recognised in the Group’s consolidated financial statements only
to the extent of other parties’ interests in the joint operation. When a group entity transacts with a joint operation
in which a group entity is a joint operator (such as a purchase of assets), the Group does not recognise its share of
the gains and losses until it resells those assets to a third party.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P a g e | 3 1
(c)
FOREIGN CURRENCY TRANSLATION
(i)
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (functional currency). The consolidated financial
statements are presented in Australian dollars, Pacifico’s functional and presentation currency, unless otherwise
stated.
(ii)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rate at the date of the
transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss, except when they are deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange gains
and losses relating to borrowings are presented in the income statement within finance costs. All other foreign
exchange gains and losses are presented in the income statement on a net basis within other income or other
expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at
the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
(iii)
Group companies
The results and financial position of foreign operations that have a functional currency other than the presentation
currency are translated into the presentation currency as follows:
▪ assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that
▪
balance sheet;
income and expenses for each income statement and statement of comprehensive income are translated
at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the
rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of
the transactions); and
▪ all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges of such investments, are recognised in other
comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are
repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and
liabilities of the foreign operation and translated at the closing exchange rate.
BUSINESS COMBINATIONS
(d)
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises
the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any asset or liability resulting from a contingent
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 2
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Acquisition-
related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at
fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
Excess consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value
of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the
net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the
difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate
(rate at which a similar borrowing could be obtained from an independent financier under comparable terms and
conditions).
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability
are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
SEGMENT REPORTING
(e)
Operating segments are identified, and segment information disclosed based on internal reports received by the
Board.
REVENUE RECOGNITION
(f)
Interest revenue is recognised on a time proportionate basis that considers the effective yield on the financial assets.
Grant income received from Governments is recognised on a cash basis upon receipt. This includes grants received
from the ATO from the Cashflow Boost during 2020.
INCOME TAX
(g)
The income tax expense or revenue for the year is the tax payable on the current periods taxable income (based on
the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses). Deferred income tax is provided in full, using the
liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax laws and rates that have
been enacted or substantially enacted by the balance sheet date and are expected to apply when the related
deferred income tax asset is realised, or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets
and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where
the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly
in equity are also recognised directly in equity.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 3
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
IMPAIRMENT OF ASSETS
(h)
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell, and value in use. To assess impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of
assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed
for possible reversal of the impairment at each reporting date.
CASH AND CASH EQUIVALENTS
(i)
For presentation purposes on the cash flow statement, cash and cash equivalents includes cash on hand and
deposits held by financial institutions.
TRADE AND OTHER RECEIVABLES
(j)
Receivables are recognised and carried at the original invoice amount less any provisions for doubtful debts. An
estimate for doubtful debts is made when collection of the full amount is no longer probable, and these are written-
off as required. Trade and other receivables include amounts due from customers for goods and services performed
in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets. Trade and other
receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment.
TRADE AND OTHER RECEIVABLES
(k)
Receivables are recognised and carried at the original invoice amount less any provisions for doubtful debts. An
estimate for doubtful debts is made when collection of the full amount is no longer probable, and these are written-
off as required. Trade and other receivables include amounts due from customers for goods and services performed
in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets. Trade and other
receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment.
TRADE AND OTHER RECEIVABLES
(l)
Receivables are recognised and carried at the original invoice amount less any provisions for doubtful debts. An
estimate for doubtful debts is made when collection of the full amount is no longer probable, and these are written-
off as required. Trade and other receivables include amounts due from customers for goods and services performed
in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets. Trade and other
receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment.
(m)
FINANCIAL INSTRUMENTS
(i)
Recognition, Initial Measurement and Derecognition
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 4
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions
of the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value
adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case
transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to
determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement of
financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
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.
(ii)
Classification and Subsequent Measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging
instruments, are classified into the following categories upon initial recognition:
▪ amortised cost;
▪
▪
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
▪ The contractual cash flow characteristics of the financial assets; and
▪ The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated
as FVPL):
▪
▪
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is
omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other
receivables fall into this category of financial instruments.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 5
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets at fair value through other comprehensive income (Equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments:
Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at
fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
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 FVPL, which are carried subsequently at fair value with gains or losses
recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in profit
or loss.
(iii)
Impairment
The Group assesses, on a forward-looking basis, the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a
significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by
AASB, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(iv)
Valuation Techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation
techniques to measure the fair value of the asset or liability. The Group selects a valuation technique that is
appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of
sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured.
The valuation techniques selected by the Group are consistent with one or more of the following valuation
approaches:
▪ Market approach: valuation techniques that use prices and other relevant information generated by
▪
market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and expenses
into a single discounted present value.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 6
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
▪ Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing
the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority
to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs
that are developed using market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable,
whereas inputs for which market data is not available and therefore are developed using the best information
available about such assumptions are considered unobservable.
(v)
Fair Value Hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair
value measurements into one of three possible levels based on the lowest level that an input that is significant to the
measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one
or more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
▪
▪
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa;
or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy
(i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances
occurred.
PLANT AND EQUIPMENT
(n)
All plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items. Depreciation of plant and equipment is calculated using the
straight-line method to allocate their cost (net of their residual values) over their estimated useful lives. The assets’
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P a g e | 3 7
residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet 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 (Note 1(h)).
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in the income statement. When revalued assets are sold, it is Group policy to transfer the amounts included in other
reserves in respect of those assets to retained earnings.
EXPLORATION AND EVALUATION COSTS
(o)
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition costs which are
carried forward where right of tenure of the area of interest is current, and they are expected to be recouped
through sale or successful development and exploration of the area of interest, or, where exploration and evaluation
activities in the area of interest have not reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves. Where an area of interest is abandoned, or the Directors decide that it is not
commercial, any accumulated acquisition costs in respect of that area are written off in the financial period the
decision is made. Each area of interest is reviewed at the end of each accounting period and accumulated costs
written off to the extent that they will not be recoverable in the future.
TRADE AND OTHER PAYABLES
(p)
Trade and other payables represent liabilities for goods and services provided to the Group during the financial year
which remain unpaid at the end of the period. The amounts are unsecured and are paid on standard commercial
terms.
(q)
EMPLOYEE BENEFITS
(i)
Wages and Salaries, Leave and Other Employee Benefits
Provisions are made for employee benefits for services rendered during the period. These benefits include salaries
and leave benefits. Liabilities arising in respect of employee benefits are measured at their nominal amounts based
on remuneration rates to be paid when the liability is settled.
(ii)
Share-Based Payments
The Group provides benefits to employees (including Directors) and consultants of the Group in the form of share-
based payments whereby employees and contractors render services in exchange for shares or rights over shares
(‘equity-settled transactions’). The cost of these equity-settled transactions is measured by reference to the fair value
at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes
option pricing model. The cost of equity-settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant
employees become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects
the extent to which the vesting period has expired and the number of options that the Directors think will vest
ultimately. This opinion is formed based on the information available at balance date.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. No expense is recognised for awards that do
not ultimately vest, except for awards where vesting is conditional upon a market condition. Where an equity-settled
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 8
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for
the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated
as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a
modification of the original award.
CONTRIBUTED EQUITY
(r)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction (net of tax) from the proceeds. Incremental costs directly attributable to the issue
of new shares or options, for the acquisition of a business, are not included in the cost of the acquisition as part of
the purchase consideration.
(s)
EARNINGS PER SHARE
(i)
Basic Earnings Per Share
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Parent entity,
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.
(ii)
Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
GOODS AND SERVICES TAX (‘GST’)
(t)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or
as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance
sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
(u)
The carrying amount of certain assets and liabilities is often determined based on estimates and assumptions of
future events. The key estimates and assumptions that have significant risk of causing a material adjustment to the
carrying amounts of certain assets and liabilities within the next annual reporting period are:
(i)
Deferred Taxation
The potential deferred tax asset arising from the tax losses and temporary differences has not been recognised as an
asset because recovery of the tax losses is not yet considered probable.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 3 9
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii)
Capitalised Exploration Costs
The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in
determining whether future economic benefits are likely, either from exploration or sale, or where activities have not
reached a stage which permits reasonable assessment.
(iii)
Share-Based Payments
The Group measures the cost of equity-settled and cash-settled transactions by reference to the fair value of the
goods and services received or, if this cannot be reliably measured, the fair value of the equity instruments at the
date at which they are granted. The fair value of the equity instruments is determined by using the Black-Scholes
model and the assumptions and carrying amount at the reporting date is disclosed in Note 29.
2. NEW STANDARDS AND INTERPRETATIONS ADOPTED AND NOT YET ADOPTED
NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED BY THE GROUP
The Group has considered the implications of new and amended Accounting Standards which have become applicable
for the current financial reporting period. The Group had to change its accounting policies and make adjustments as
a result of adopting the following Standard:
(i) AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2019 and was adopted by the
Group from 1 July 2019.
The Group has adopted AASB 16: Leases retrospectively with the cumulative effect of initially applying AASB 16
recognised as of 1 July 2019. As a result of the changes in Group’s accounting policies, current or prior year financial
statements were not required to be restated as the leases were deemed to be short term and minor.
The Group as lessee
At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease present, a right-
of-use asset and a corresponding liability are recognised by the Group where the Group is a lessee. However, all
contracts that are classified as short-term leases (i.e. leases with a remaining lease term of 12 months or less) and
leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement
date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily
determined, the Group uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows;
•
•
•
•
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of options to terminate
the lease.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 4 0
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2. NEW STANDARDS AND INTERPRETATIONS ADOPTED AND NOT YET ADOPTED (CONTINUED)
The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease payments made
at or before the commencement date and any initial direct costs. The subsequent measurement of the right-of-use
assets is at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the
lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that the Group
anticipates exercising a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
The Group as lessor
The Group does not have any property which has been leased out, and therefore not applicable.
3.
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT OBJECTIVES
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and
interest rate risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the Group.
Various methods are used to measure risks to which the Group is exposed, including sensitivity analysis for interest
rate, foreign exchange and other price risks, and ageing analysis for credit risk.
Risk management is carried out by the accounting team under Board approved policies covering identification and
analysis of risk exposure, risk limits, and appropriate procedures and controls. Reporting is provided to the Board on
a monthly basis.
MARKET RISK
(i)
Foreign Currency Risk
The Group completes certain transactions denominated in foreign currency and is exposed to foreign currency risk
through exchange rate fluctuations. Foreign currency risk arises from future commercial transactions and recognised
financial assets and financial liabilities in a currency other than the Group’s functional currency. The risk is measured
using sensitivity analysis and cash flow forecasting. The carrying amount of the Group’s foreign currency financial
assets and financial liabilities at the reporting date was as follows:
Consolidated
Colombian Pesos (COP)
Total
Financial Assets
Financial Liabilities
2020
AUD$
2019
AUD$
2020
AUD$
2019
AUD$
4,020
66,674
4,319
5,874
4,020
66,674
4,319
5,874
Based on the net exposure to foreign currencies, a change in the foreign exchange rate as at the end of the year would
not have a significant effect the Group’s financial results.
(ii)
Price Risk
Presently, the Group is not directly exposed to commodity price risk as it is in the exploration phase. The Group is
indirectly exposed to price movements for commodities such as gold, copper and silver as these may affect the
Group’s ability to access capital markets.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 4 1
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
(iii)
Interest Rate Risk
The Group's main interest rate risk arises from cash and term deposits held at variable interest rates as term deposits issued
at fixed rates expose the Group to fair value risk. The Group’s policy is to maximise interest rate returns, having regard to
the cash requirements of the business.
(iv)
Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the
Group. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount (net
of any provisions for impairment of those assets) as disclosed in the statement of financial position and notes to the financial
statements.
(v)
Liquidity Risk
Liquidity risk management requires the Group to maintain enough liquid assets to pay debts as and when they fall due. The
Group manages liquidity risk by maintaining adequate cash reserves through continuously monitoring actual and forecast
cash flows and matching the maturity profiles of financial assets and liabilities.
INTEREST RATE RISK
The Group is exposed to market interest rate movements on short-term deposits. Group policy is to monitor the interest
rate yield curve to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest rate
return. At 30 June 2020, if interest rates had changed by -/+ 100 basis points from the year-end rates with all other variables
held constant, pre-tax loss would have been $20,125 lower/higher (2019 – change of 100 bps: $11,143 lower/higher) as a
result of lower interest income. The Group's exposure to interest rate risks and the effective interest rates of financial assets
and financial liabilities, both recognised and unrecognised at the balance date, are as follows:
Financial Instrument
2020
Financial Assets
Cash and Cash Equivalents
Trade & Other Receivables
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and Accruals
Lease Liabilities
Floating
Interest Rate
$
Fixed Interest Rate Maturing in:
>1 Year
$
1 - 5 Years
$
<5 Years
$
Non-Interest
Bearing
Total Carrying
Amount
$
$
1,992,492
-
-
-
-
20,000
-
-
-
-
-
-
916,059
188,932
65,462
2,908,551
188,932
85,462
1,992,492
20,000
-
-
1,170,453
3,182,945
-
-
-
-
-
52,922
-
-
46,719
-
-
-
448,491
44,309
-
448,491
44,309
99,641
Total Financial Liabilities
-
52,922
46,719
-
492,800
592,441
Weighted average effective interest rate is 0.18%
2019
Financial Assets
Cash and Cash Equivalents
Trade & Other Receivables
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and Accruals
1,131,693
-
-
-
-
-
-
-
-
-
-
-
851,666
370,271
24,514
1,983,359
370,271
24,514
1,131,693
-
-
-
1,246,451
2,378,144
-
-
-
-
-
-
-
-
618,076
36,194
618,076
36,194
Total Financial Liabilities
-
-
-
-
654,270
654,270
Weighted average effective interest rate is 0.85%
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 4 2
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
NET FAIR VALUES
All financial assets and liabilities have been recognised at the balance date at amounts approximating their carrying
value.
CREDIT RISK EXPOSURES
The Group has no significant concentrations of credit risk. The maximum exposure to credit risk at balance date is
the carrying amount (net of provision for doubtful debts) of those assets as disclosed in the balance sheet and notes
to the financial statements. A formal credit risk management policy is not maintained.
4.
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified based on internal reports provided to the Board in order to
allocate resources to the segments and assess performance. Information reported to the Board is based on
exploration in the principal locations of the Group’s projects, Australia and Colombia. The revenues and profit
generated by each of the Group’s operating segments, assets and liabilities are summarised as follows:
Australia
Colombia
Elimination
Total
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
2020
$
2019
$
667,138
348,643
154
1,005
(375,386)
(244,771)
291,906
104,877
(3,073,688)
(3,266,091)
(58,491)
(77,986)
-
-
(3,132,179)
(3,344,077)
14,974,840
7,772,424
9,802
74,502
(6,504,576)
(226,527)
8,480,066
7,620,399
1,818,142
1,230,537
4,319
5,874
(955,202)
38,736
867,259
1,275,147
Segment Revenues
Segment Operating (Losses)
Segment Assets
Segment Liabilities
5. REVENUE
From Continuing Operations
Sorby Hills Project Revenue
Interest
Other Income
6.
EXPENSES
Loss Before Income Tax Includes the Following Expenses:
Depreciation of Plant and Equipment
Depreciation of ROU Asset
Exploration and Evaluation Expenditure
Exploration and Evaluation Asset Write-Off
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
Consolidated
2020
$
123,732
33,811
134,363
291,906
2019
$
81,591
23,286
-
104,877
Consolidated
2020
$
8,552
9,019
2,124,010
-
2019
$
3,139
-
2,220,830
163,785
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
7.
INCOME TAX
P a g e | 4 3
Income Tax Expense/(Benefit)
Current Tax
Deferred Tax
Adjustments for Current Tax of Prior Years
Numerical Reconciliation of Income Tax Expense to Prima Facie Tax Payable
Loss from Continuing Operations Before Income Tax Expense
Prima Facie Tax Benefit at the Australian Tax Rate of 27.5% (2019: 27.5%)
Tax Effect of Amounts Which are not Deductible (Taxable) in Calculating
Taxable Income:
Other Items
Unrecognised Temporary Differences
Tax Effect of Current Year Tax Losses for Which no Deferred Tax Asset Has
Been Recognised
Income Tax Expense/(Benefit)
Unrecognised Temporary Differences
Deferred Tax Assets
On Income Tax Account
S. 40-880 Deductions
Write off Acquired Tenement Costs over 15 years
Accruals and Provisions for Employee Entitlements
Carry Forward Tax Losses
Deferred Tax Liabilities Prepayments
Total Unrecognised Temporary Differences
Deferred Tax Liabilities
Beginning Exploration and Evaluation on Acquisition
Reduction of Deferred Tax Liability Due to Impairment
Deferred Tax Liability - Exploration and Evaluation Assets
Consolidated
2020
$
2019
$
-
-
-
-
-
-
-
-
(3,132,179)
(861,349)
(3,344,077)
(919,621)
53,294
133,429
(808,055)
(786,192)
(140,932)
(232,785)
948,987
1,018,977
-
-
130,108
1,686,596
27,008
4,927,701
130,108
1,686,596
30,794
4,961,942
6,771,413
6,809,440
216
3,418
6,771,197
6,806,022
221,008
221,008
(42,095)
-
178,913
221,008
The deferred tax assets have not been brought to account, as it is not probable within the immediate future that tax
profits will be available against which deductible temporary differences and tax losses can be utilised.
8.
CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Cash on Hand
Cash at Bank (1)
Cash and Cash Equivalents as Shown in the Consolidated Statement of Financial Position and the
Consolidated Statement of Cash Flows
Consolidated
2020
$
2019
$
-
2,908,551
-
1,983,359
2,908,551
1,983,359
(1)
Restricted cash is $85,285 (2019: $37,302) and includes security deposits in relation to a credit card facility and office lease obligations.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
9.
CURRENT ASSETS - OTHER
P a g e | 4 4
Other Receivables
Prepayments
The above receivables are within initial trade terms and therefore have not been impaired.
10. NON-CURRENT ASSETS – EXPLORATION AND EVALUATION ASSETS
Consolidated
2020
$
188,932
17,521
206,453
2019
$
370,271
12,431
382,702
Consolidated
2020
$
5,210,586
1,829
(42,095)
2019
$
1,238,412
4,135,959
-
-
(163,785)
5,170,320
5,210,586
Consolidated
2020
$
85,285
177
85,462
2019
$
24,315
199
24,514
Consolidated
2020
$
2019
$
132,929
140,026
(122,853)
(120,788)
10,076
19,238
19,238
15,090
(8,552)
(15,700)
8,843
15,089
(3,139)
(1,555)
10,076
19,238
Balance at Beginning of the Year
Additions
Reduction of Deferred Tax Liability
Violin Project Write-Off
Balance at the End of the Year
11. NON-CURRENT ASSETS – OTHER
Bonds and Security Deposits
VAT Receivable
12. NON-CURRENT ASSETS - PLANT AND EQUIPMENT
Plant and Equipment
Cost
Accumulated Depreciation
Net Carrying Amount
Plant and Equipment - Movement
Opening Net Book Amount
Additions
Depreciation Charge
Foreign Exchange Translation
Closing Net Carrying Amount
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
P a g e | 4 5
13. RIGHT OF USE ASSETS
ROU Asset - Building Lease
Building Lease at cost
Accumulated Depreciation
Net Carrying Amount
ROU Asset - Movement
Opening Net Book Amount
Depreciation Charge
Closing Net Carrying Amount
Amounts recognised in the Profit and Loss
Depreciation Expense on Right of Use Asset
Interest Paid on lease liabilities
Consolidated
2020
$
2019
$
108,225
(9,019)
99,206
108,225
(9,019)
99,206
(9,019)
(681)
-
-
-
-
-
-
-
-
The Group has taken a lease of the premises at Level 1, 105 St George’s Terrace, Perth, with an estimated remaining
life of 12 months. Discounted cashflows were calculated on a discount rate of 3.5%.
14.
LIABILITIES - TRADE AND OTHER PAYABLES
Trade Payables
Other Payables and Accruals
The above payables are within initial trade terms and therefore are not past due.
Other Liabilities
15. CURRENT LIABILITIES – PROVISIONS
Provision for Annual Leave
16. LEASE LIABILITIES
Maturity Analysis
Less than 1 year
Greater than 1 year
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
Consolidated
2020
$
448,491
44,309
492,800
2019
$
618,076
36,194
654,270
Consolidated
2020
$
-
2019
$
316,357
Consolidated
2020
$
2019
$
95,905
83,512
Consolidated
2020
$
2019
$
52,922
46,719
-
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
17. NON-CURRENT LIABILITIES – DEFERRED TAX LIABILITIES
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Deferred Tax Liabilities Comprise Temporary Differences Attributable to:
Beginning Exploration and Evaluation on Acquisition
Movement in Deferred Tax Liability due to Impairment
Deferred Tax Liability
Consolidated
2020
$
2019
$
221,008
(42,095)
178,913
221,008
-
221,008
18. CONTRIBUTED EQUITY
SHARE CAPITAL
Ordinary Shares Fully Paid
Total Contributed Equity
2020
Shares
2,888,104,604
$
32,980,318
2,888,104,604
32,980,318
2019
Shares
2,313,104,604
2,313,104,604
$
28,705,740
28,705,740
MOVEMENTS IN ORDINARY SHARE CAPITAL
Beginning of the Financial Year
Issued During the Year:
5 Sept. 2018 (Rights Issue at $0.006)
3 Oct. 2018 (Rights Issue at $0.006)
16 Oct. 2018 (Placement at $0.005144)
22 Nov. 2018 (Placement at $0.006)
22 Nov. 2018 (Services Rendered)
18 Dec. 2018 (Placement at $0.006)
15 Apr. 2019 (Placement at $0.006)
23 May 2019 (Placement at $0.006)
2020
2019
Shares
$
Shares
$
2,313,104,604
28,705,740
893,063,749
20,856,645
-
-
-
-
-
-
-
-
213,333,333
1,280,000
158,506,899
951,042
97,200,622
500,000
262,666,667
1,576,000
5,000,000
30,000
16,666,667
100,000
410,000,000
2,460,000
256,666,667
1,540,000
9 September 2019 (Placement at $0.008)
575,000,000
4,600,000
-
-
Less: Transaction Costs
End of the Financial Year
-
(325,422)
-
(587,947)
2,888,104,604
32,980,318
2,313,104,604
28,705,739
ORDINARY SHARES
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Parent entity
proportionate to the number of and amounts paid for shares held. On a show of hands every holder of ordinary shares
present at a meeting in person or by proxy is entitled to one vote and upon a poll each share is entitled to one vote.
CAPITAL RISK MANAGEMENT
Safeguarding its ability to continue as a going concern is the Group’s objective when it comes to managing capital in
order to provide benefits to both shareholders and stakeholders and maintain an optimal capital structure to reduce
cost of capital. When an opportunity to invest in, or explore, a project is seen as value adding relative to the share
price at the time of investment, the Group will seek to raise capital if required.
19. DIVIDENDS
No recommendation for payment of dividends or dividend payments were made during the report period.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
20. RESERVES
Share/option reserve is used to recognise the fair value of shares and options issued.
P a g e | 4 7
Share/Option Reserve
Foreign Currency Translation Reserve
SHARE/OPTION RESERVE
Balance at Beginning of Year
Issue of Options
Balance at End of Year
Consolidated
2020
$
2019
$
1,653,328
1,523,902
(52,906)
(48,638)
1,600,422
1,475,264
Consolidated
2020
$
2019
$
1,523,902
1,459,717
129,426
64,185
1,653,328
1,523,902
FOREIGN CURRENCY TRANSLATION RESERVE
Foreign currency translation reserve is used to recognise exchange differences arising from the translation of
financial statements of foreign operations that do not use Australian dollars as their functional currency.
Balance at Beginning of Year
Exchange Differences Arising on Translating the Foreign Operations
Balance at End of Year
21.
PARENT ENTITY INFORMATION
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total Non-Current Liabilities
Total Liabilities
Equity
Issued Capital
Share Based Payments Reserve
Accumulated Losses
Total Equity
Results of The Parent Entity
Loss for the Year
Other Comprehensive Income
Total Comprehensive Loss for the Year
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
Consolidated
2020
$
(48,638)
(4,268)
(52,906)
2019
$
(43,575)
(5,063)
(48,638)
Parent
2020
$
2,200,965
6,197,729
2019
$
1,254,646
8,042,005
8,398,694
9,296,651
1,613,757
-
704,129
-
1,613,757
704,129
32,980,318
1,653,328
(27,848,709)
28,705,740
1,523,902
(21,637,120)
6,784,937
8,592,522
(6,211,589)
-
(6,211,589)
(979,480)
-
(979,480)
For personal use only
P a g e | 4 8
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
21. PARENT ENTITY INFORMATION (CONTINUED)
CAPITAL AND CONTINGENT LIABILITIES
The parent entity had no capital or contingent liabilities as at 30 June 2020 (2019: Nil).
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in Note 1, except for
investments in subsidiaries being accounted for at cost (less any impairment) in the parent entity.
22. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly owned
subsidiaries in accordance with the accounting policy described in Note 1b(i):
Subsidiary
Incorporated
Ownership
West Rock Resources Pty Ltd
Sorby Hills Pty Ltd
Sorby Management Pty Ltd
West Rock Resources Panama Corp.
Pacifico Minerals Sucursal Colombia (Branch)
Golden Pacifico Exploration SAS
Pacifico Holdings SAS
23. REMUNERATION OF AUDITORS
Australia
Australia
Australia
Panama
Colombia
Colombia
Colombia
2020
100%
100%
100%
100%
100%
100%
100%
2019
100%
100%
100%
100%
100%
100%
100%
During the period the following fees were paid, or payable, for services provided by the auditors of the Group.
Audit Services
Stantons International – Audit and Review of Financial Reports
Total Remuneration for Audit Services
Non-Audit Services
Technical Valuation - Performance Rights
24. COMMITMENTS AND CONTINGENCIES
Consolidated
2020
$
2019
$
40,378
32,966
40,378
32,966
750
-
The Group plans to conduct exploration work on its tenements to meet obligations and retain rights of tenure. If
required, the Group can reduce these expenditure obligations by establishing joint venture agreements, applications
for expenditure exemptions, or selective relinquishment of exploration tenements. Due to the nature of the Group’s
operations in exploring and evaluating areas of interest, it is difficult to accurately forecast future expenditure. The
annual commitment across the Group for the next year is $230,094 (2019: $360,072).
Exploration Commitments
Within One Year
Later than One Year But Not Later Than Five Years
Consolidated
2020
$
230,094
920,375
1,150,469
2019
$
360,072
1,459,617
1,819,689
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
24. COMMITMENTS AND CONTINGENCIES (CONTINUED)
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There are no material contingent assets of the Group at balance date (2019: Nil). In 2019 the acquisition of the Sorby
Hills Project included a provision for a 1% net smelter royalty payable to Quintana MH Holding Company LLC that has
been classified as a material Contingent Liability, this is still in existence in 2020.
25. INTERESTS IN JOINT OPERATIONS
The Group recognises its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have
been incorporated into the financial statements under the appropriate classifications. Information relating to joint
operations that are material to the Group are set out below:
• Berrio Gold Project (Pacifico 5.7 – 8.6%). Net assets carried as at 30 June 2020 are nil (2019: Nil).
• Borroloola West Project (Pacifico 51%). Net assets carried as at 30 June 2020 are $982,532 (2019:
$1,024,673).
• Mt Jukes Project (Pacifico 14.8%). Net assets carried as at 30 June 2020 are nil (2019: Nil).
•
Sorby Hills Project (Pacifico 75%). Net assets carried as at 30 June 2020 are $4,187,787 (2019: $4,185,913).
26. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
On 25 August the Company announced the results of its completed Pre-Feasibility study and updated its Ore Reserve
Statement. It was noted that the Project delivers strong Pre-Tax Economics with a Pre-Tax NPV8 of A$303M generating
an IRR of 46% with a payback period of ~1.6years1 . Pre-Tax Life of Mine Net Operating Cash Flow of A$747M or
~A$75M per annum. The PFS base case (‘Whole Ore’) Production Target mines 14.7Mt (circa 92% Measured and
Indicated, 8% Inferred) at an average grade of 3.6% Pb and 39 g/t Ag.
On 18 September 2020 the Company announced that it had executed a capital raising to fund the Sorby Hills Project
to final investment decision. The Company had received binding commitments for a A$10 million Share Placement to
professional and institutional investors at an issue price of $0.018 issuing a maximum of 555,555,920 ordinary shares.
Concurrently the Company also announced that it would conduct a Share Purchase Plan to raise a maximum of A$2
million at an issue price of $0.018 per share, through the issue of up to 111,111,111 ordinary fully paid shares.
On 24 September 2020 the Company announced that the $10 million capital raising announced on the 18 September
2020 had been completed.
There were no further matters or circumstances that arose since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of the
Group in future financial years.
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
27. CASH FLOW RECONCILIATION
RECONCILIATION OF NET LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
P a g e | 5 0
Net Loss for the Year
Non-Cash Items
Depreciation of Non-Current and ROU Assets
Share Based Payments - Inc. in Operational Expenses
Share Based Payments - Director/Staff Options
Write Off Exploration and Evaluation Assets
Foreign Exchange (Gain)/Loss
Change in Operating Assets and Liabilities
Decrease/(Increase) in Trade and Other Receivables
Decrease/(Increase) in Prepayments
Decrease/(Increase) in Other Assets
(Decrease)/Increase in Trade and Other Payables
Increase/(Decrease) in Provisions
Net Cash Outflow from Operating Activities
Non-Cash Financing and Investing Activities
Nil.
28. LOSS PER SHARE
RECONCILIATION OF EARNINGS USED IN CALCULATING LOSS PER SHARE
Consolidated
2020
$
2019
$
(3,132,179)
(3,344,077)
8,552
-
129,426
-
-
3,139
53,185
-
163,785
-
197,472
(5,088)
-
(477,827)
12,393
(357,855)
5,990
123
586,380
61,081
(3,267,251)
(2,828,249)
Consolidated
2020
$
2019
$
Loss attributable to the ordinary equity holders of the Parent Entity used in calculating basic and diluted loss
per share
(3,132,179)
(3,344,077)
WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Weighted average number of ordinary shares used as the denominator in calculating basic and diluted loss
per share
2,784,167,904
1,535,211,939
Number of Shares
2020
2019
29. SHARE BASED PAYMENTS
ORDINARY SHARES
During the period, no shares were issued to consultants for marketing services (2019: 5,000,000). There were no
share-based payments resulting in the issue of ordinary shares (2019: $30,000).
OPTIONS OVER ORDINARY SHARES
No Options were issued in 2020 (2019: 361,271,969).
Options on issue at the end of the period had the following expiry dates and exercise prices:
Expiry Date
Status
Exercise Price
Options
21/11/2020
21/11/2020
16/10/2021
Unlisted
Listed
Unlisted
$0.015
$0.015
$0.020
26,500,000
351,271,969
10,000,000
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
29. SHARE BASED PAYMENTS (CONTINUED)
Options on issue at the end of the period had a weighted average exercise price of 1.30 cents and a weighted average
expiry period of 0.66 years.
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Performance Rights
A total of 68,500,000 Performance Rights (2019: Nil) were granted during the year to Directors with variable vesting
conditions based on the achievement of performance milestones, (6,000,000 were subsequently cancelled on the
resignation of Mr. P Harold). Share-based payments booked during the period amounted to $129,426 (2019:
$53,185).
Details
Class "A" Performance Shares
Class "B" Performance Shares
Class "C" Performance Shares
Class "D" Performance Shares
Performance
Rights
19,000,000
19,500,000
20,000,000
4,000,000
62,500,000
Exercise Price
Grant Date
Expiry Date
Nil
Nil
Nil
Nil
29/11/2019
29/11/2019
29/11/2019
6/03/2020
30/06/2022
30/06/2022
30/06/2022
6/03/2025
Performance Rights on issue at the end of the period had the following expiry dates and exercise prices:
Expiry Date
30/06/2022
30/06/2022
30/06/2022
6/03/2025
Status
Unlisted
Unlisted
Unlisted
Unlisted
Exercise Price
Performance Rights
$0.000
$0.000
$0.000
$0.000
19,000,000
19,500,000
20,000,000
4,000,000
30. RELATED PARTY TRANSACTIONS
There were no related party transactions to report for the period.
31. KEY MANAGEMENT PERSONNEL COMPENSATION
Short Term Employee Benefit
Share Based Payments
Post-Employment Benefit
Consolidated
2020
$
385,947
129,426
35,893
2019
$
380,365
-
30,546
551,266
410,911
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
P a g e | 5 2
DIRECTORS’ DECLARATION
The Directors of the Group declare that:
1. The financial statements accompanying the notes are in accordance with the Corporations Act 2001, and:
a. Comply with Accounting Standards, the Corporations Act 2001 and other mandatory professional
reporting requirements;
b. Give a true and fair view of the financial position as at 30 June 2020 and of the performance for the
report period for the consolidated entity.
2.
3.
In the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts
as and when they become due and payable.
In the Directors’ opinion, the financial statements and notes are prepared in compliance with IFRS and
interpretations issued by the International Accounting Standards Board.
4. The remuneration disclosures as set out on pages 19 to 22 of the Directors’ Report comply with Accounting
Standards AASB 124 Related Party Disclosures and section 300A of the Corporations Act 2001.
5. The Directors have been given the declarations required under section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the
Directors.
Gary Comb
Executive Chairman
30 September 2020
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
INDEPENDENT AUDITOR’S REPORT
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PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
SHAREHOLDER INFORMATION
Additional information is set out below in accordance with the listing rules of the Australian Stock Exchange Limited
and is current as at 30 September 2020.
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STATEMENT OF ISSUED CAPITAL
1.
Distribution of holdings for Ordinary Shares on Issue ‘PMY’:
Number of Holders by Holding Size
Holders
Total Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
95
22
65
1,053
1,879
3,114
21,235
71,389
594,463
57,706,049
3,404,336,598
3,462,729,734
% of Issued
Capital
0.00%
0.00%
0.02%
1.67%
98.31%
100.00%
Ordinary shares carry one vote per share without restriction. The number of fully paid ordinary shareholdings
held in less than marketable parcels is 420 (based on a share price of $0.017).
Distribution of holdings for Listed Option Holders 'PMYO' Ex Price $0.015, Exp 21 November 2020 is as follows:
Number of Holders by Holding Size
Holders
Total Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
4
8
8
44
138
601
24,963
59,266
2,359,452
348,758,477
202
351,202,759
% of Issued
Capital
0.00%
0.01%
0.02%
0.67%
99.30%
100.00%
Listed Options do not carry any voting rights until they are exercised and converted into Ordinary Fully Paid Shares.
Distribution of holdings for Unlisted Option Holders Ex Price $0.015, Exp 21 November 2020 is as follows:
Number of Holders by Holding Size
Holders
Total Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
0
0
0
0
6
0
0
0
0
22,500,000
6
22,500,000*
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
Distribution of holdings for Unlisted Option Holders Ex Price $0.020, Exp 16 October November 2021 is as follows:
Number of Holders by Holding Size
Holders
Total Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
0
0
0
0
1
0
0
0
0
10,000,000
1
10,000,000 *
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
*Unlisted Options do not carry any voting rights until they are exercised and converted into Ordinary Fully Paid shares
PACIFICO MINERALS LIMITED | ANNUAL REPORT 2020
For personal use only
SHAREHOLDER INFORMATION (CONTINUED)
Distribution of holdings for Performance Rights on issue, Performance Rights have various expiry dates and vesting
conditions. Each Performance Right vests into one Ordinary Fully Paid Share on conversion.
P a g e | 5 8
Number of Holders by Holding Size
Holders
Total Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
0
0
0
0
4
0
0
0
0
43,500,000
4
43,500,000*
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
*Performance Shares do not carry any voting rights until they vest and are converted into Ordinary Fully Paid shares.
SUBSTANTIAL SHAREHOLDERS
Holder
VILLIERS QUEENSLAND PL*
*Denotes merged holders.
Number
368,203,340
%
10.63
QUOTATION
2.
Fully paid ordinary shares are quoted on the Australian Stock Exchange Limited. There is a total of 3.46 billion shares
on issue. The top twenty shareholders, as listed below, hold 42.68% of these shares:
Holder
SIMON NOON*
RICHARD MONTI*
CRAIG CHAPMAN*
EQUITY TRUSTEES LIMITED
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