ABN 43 107 159 713
FORMERLY
PACIFICO MINERALS LIMITED
2021 ANNUAL REPORT
CORPORATE DIRECTORY
DIRECTORS
Gary Comb (Chairman)
Simon Noon (Managing Director & CEO)
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 Audit and Consulting Pty Ltd
Level 2, 1 Walker Avenue
WEST PERTH WA 6005
STOCK EXCHANGE LISTING
Boab Metals Limited shares are listed on the
Australian Stock Exchange under the ticker code ‘BML’.
WEBSITE ADDRESS
www.boabmetals.com
TABLE OF CONTENTS
CHAIRMAN’S REPORT
MANAGING DIRECTOR’S REPORT
OPERATIONS REVIEW
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENT DECLARATION
5
7
9
21
34
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 36
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
37
38
39
40
69
71
77
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 regard-
ed 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 circumstanc-
es 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.
CHAIRMAN’S REPORT
5
ANNUAL REPORT 2021BOAB METALS LIMITED Dear Shareholders, On behalf of your Board of Directors, I am delighted to present the 2021 Annual Report and recap on the significant progress that Boab Metals has made over the past financial year. In January 2021, the company was pleased to bring into effect a name change from Pacifico Minerals Ltd to Boab Metals Ltd. The change of company name was not a decision taken lightly, but was made in order to reflect our commitment to the Sorby Hills Project and to align our company to a symbol which connects to the Kimberley community in which we plan to operate for many years. The 2021 financial year began with the delivery of a Pre-Feasibility Study (PFS) for Sorby Hills confirming a project with robust economic outcomes and it ended with a Defini�ve Feasibility Study (DFS) well underway and due for delivery in the first half of CY 2022. We were able to establish a financial pla�orm to execute the extensive work for delivering the DFS by successfully comple�ng a strongly supported $12m capital raise in September 2020. This funding has enabled Boab and our Joint Venture partner, Yuguang, to embark on a Phase V drilling program which is designed to increase the mineral inventory at Sorby Hills. Pleasingly, the success of this drilling program to date may allow the JV to consider an increase in the project’s overall scale. From a project funding perspec�ve, Boab has advanced discussions with key Australian Government debt funding organisa�ons, whilst also progressing discussions with several commercial banks to ensure the project’s capital requirements are underwri�en for a financial investment decision in Q2 CY 2022. During the financial year we’ve welcomed several new highly experienced professionals to complement a team and a project in which I have great confidence will develop a base metal mine with a�rac�ve C1 costs and significant returns to shareholders. The Board is grateful for the support of all shareholders and would like to commend all staff on their hard work and dedica�on during the year. We look forward to a year of substan�al milestones for Boab as the company progresses the Sorby Hills project towards a development outcome. Gary Comb Chairman MANAGING DIRECTOR’S REPORT
I’m pleased to report that financial year 2021 was an extremely successful period for Boab Metals with our
commi�ed team pushing to progress our 75% owned Sorby Hills Project to become a long-term and highly
profitable mining company.
In August 2020, we were delighted to report an updated Pre-Feasibility Study (PFS) on the Sorby Hills Project
which confirmed the following robust financial outcomes:
Pre-produc�on capital spend of $183m to be paid back from outstanding early cash flows within 1.6
years.
A project NPV of $303m and IRR of 46% using conserva�ve assump�ons for commodity prices.
A project life of 10 years with an average of $127m EBITDA over the first two years of opera�ons.
These outstanding PFS results have given your Board and our JV partner confidence to progress to a Defini�ve
Feasibility Study (DFS) which is fully funded for comple�on and due to be delivered in 1H CY 2022.
In April 2021 we announced an interim Mineral Resource Es�mate (44.9Mt at 3.2% Pb, 0.5% Zn and 37g/t Ag)
following a very successful Phase IV drilling program which mostly focussed on securing metallurgical and
geotechnical samples to support the DFS. The results from this program also confirmed several material
extensions outside of the proposed open pits in the PFS. These results gave us confidence to include a further
phase V drilling program to inves�gate the poten�al to expand the mining and processing capacity in our DFS.
Post 2021 FY, the company has been able to report encouraging drilling results from the Phase V campaign (s�ll
ongoing at �me of wri�ng) which are expected to contribute to an increased mining inventory at Sorby Hills.
Boab was able to add to our asset por�olio by acquiring the Manbarrum Zinc-Silver-Lead Project in July 2021.
The 100% owned Manbarrum Project is located approximately 25km east of the Sorby Hills Project and the
company will inves�gate how Manbarrum may be incorporated into Boab’s regional produc�on strategy.
The Board was pleased to acquire the services of Mr David English as Chief Opera�ng Officer during the financial
year. David brings extensive experience from his �me working in senior roles in the development of some of
Australia’s premier mining opera�ons such as Sandfire’s Dugrussa Mine and IGO’s Nova Bollinger Mine.
Corporately, the Company is fully funded to deliver the Sorby Hills DFS. Boab is ac�vely engaged with
government funding agencies (such as NAIF and EFA) and commercial banks alongside advanced nego�a�ons
with several poten�al off-take partners as the Sorby Hills Project moves rapidly towards a final investment
decision in 1H CY 2022.
We were pleased to have effected a name change to Boab Metals Ltd during FY 2021, which be�er reflects our
commitment to the Kimberley region in which we operate. Coinciding with the name change, Boab also
conducted a capital reconstruc�on.
From a community perspec�ve, Boab was delighted to be able to secure the naming rights of the Ord Valley
Muster. Our sponsorship of this iconic event underlines our company’s commitment to the town of Kununurra
and the broader Kimberley community.
I’d like to take this opportunity to acknowledge all of our staff and their families for their con�nued hard work
and extend my apprecia�on to my fellow Board members for their invaluable guidance over the 2021 financial
year. Lastly, I express a deep thanks to our loyal shareholders as we look forward to a rewarding financial year
ahead for Boab Metals.
Simon Noon
Managing Director & CEO
7
ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
OVERVIEW
The Financial Year 30 June 2021 has seen Boab Metals Limited (“Boab”) or the (“Company”) take significant steps
towards reaching a Decision to Mine at its 75% owned Sorby Hills Project (“Sorby Hills” or “the Project”), located
within the Kimberley Region of Western Australia.
The Company undertook a range of Technical, Project Execu�on and Corporate ac�vi�es that have laid a solid
founda�on to leverage into what is shaping to be a transforma�onal FY22.
Key Technical activities completed during period include:
release of an op�mised Pre-Feasibility Study on the Sorby Hills Project (“PFS”);
commencement of the Sorby Hills Defini�ve Feasibility Study (“DFS”);
comple�on of a Phase IV drilling program aimed obtaining metallurgical and geotechnical samples and
further de-risking the exis�ng Sorby Hills mining inventory ahead the DFS;
commencement of the DFS Metallurgical Testwork program;
release of an updated Mineral Resource Es�mate incorpora�ng the Phase IV drilling results; and
commencement of a high impact Phase V drilling program aimed at expanding Sorby Hills mining
inventory and increasing the proposed processing plant capacity adopted in the DFS;
Key Project Execution activities completed during the period include:
successful progression to the Due Diligence stage of the financing approval and assessment process of
the Northern Australia Infrastructure Facility (“NAIF”);
receipt of a Le�er of Support from Export Finance Australia (“EFA”) with respect to the provision of
debt finance for the Sorby Hills Project;
the appointment of highly experienced Mr David English as the Companies inaugural Chief Opera�ng
Officer;
agreement with Joint Venture partner Henan Yuguang Gold and Lead Co., Ltd to fast track the
finalisa�on of a Mining Joint Venture Agreement to govern the development and opera�on of Sorby
Hills following a Decision to Mine;
produc�ve ini�al soundings with Tier 1 o�akers confirming the high saleability of the Lead-Silver
concentrate to be produced from Sorby Hills; and
successful Lender engagement where Boab presented and received posi�ve feedback from poten�al
Commercial Bank financiers on the Sorby Hills Project and indica�ve financing structure.
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
Key Corporate activities completed during the period include:
a A$15 million Placement, Share Purchase Plan (“SPP”) and Op�on Exercise Program to fully fund the
Company to a Decision to Mine at Sorby Hills;
undertaking a Company name change from Pacifico Minerals Limited to Boab Metals Limited (ASX:
BML);
undertaking 25 to 1 consolida�on of share capital reducing outstanding shares form 3.8 billion to 152
million;
becoming the naming rights sponsor of the renowned Ord Valley Muster; and
subsequent to the year end, undertaking the strategic acquisi�on of the Manbarrum Zinc-Silver-Lead
Project located 25km east of Sorby Hills.
Technical Ac�vi�es
Release of the Sorby Hills Pre-Feasibility Study
On 25 August 2020, the Company released the results of the Op�mised PFS on the Project. The PFS confirmed
the Project is technically and economically robust, underpinned by detailed test work and growing demand for
Lead and Silver as part of the global transi�on to clean energy. The PFS findings strengthen the Company’s
convic�on to develop the deposit into a profitable mine.
Highlights of the PFS included:
Low-risk Open Pit project underpinned by a well-defined large-scale Mineral Resource, 92% Ore
Reserves and conven�onal crush-mill-float processing circuit delivering high metal recoveries;
Mining and processing of 14.8Mt of ore from four deposits at a rate of 1.5Mt per annum over an ini�al
10-year mine life producing an average 50kt Lead and 1.5Moz of Silver per annum in a high quality 62%
Lead concentrate product;
Gross Revenue of A$1.85 billion with revenues from Lead and Silver contribu�ng approximately 77%
and 23% respec�vely over the Life of Mine (‘LoM’);
C1 cash costs of US$0.40/lb payable Pb (including a net Silver credit of US$0.27lb/ payable Pb) delivering
a LoM opera�ng margin of 40%;
Total LoM opera�ng cash flow of A$747 million and average EBITDA of A$75 million per annum
(including A$127 million per annum over the first 2 years of produc�on);
Upfront Capex of A$183 million comprising:
o Pre-Produc�on Mining capex of A$24 million;
o Process Plant and Infrastructure of A$126 million;
o Owners Costs of A$13 million; and
o Con�ngency of A$20 million.
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
11
ANNUAL REPORT 2021BOAB METALS LIMITED Strong Pre-Tax NPV8 of A$303 million, genera�ng an IRR of 46% with a payback period of ~1.6 years (assuming conserva�ve average 10-year Lead (US$2,095/t) and Silver (US$21.1/oz) prices and an A$:US$ exchange rate of 0.70. Following the posi�ve PFS results, the Company decided to immediately commence workstreams related to the comple�on of a DFS on the Sorby Hills Project. Figure 1: Sorby Hills PFS Base Case key metrics. 1) Life on mine average 2) NPV based on 10-year average commodity prices. Lead US$0.95/lb, Silver US21.10/oz. AUDUSD FX rate of 0.70 Phase IV Drilling Program On the back of the posi�ve PFS result, a Phase IV drilling program comprising 4,803m was undertaken to advance the Project towards DFS status. The bulk of the Phase V drilling (3,340m) was appor�oned to genera�ng material for metallurgical and geotechnical testwork with the balance targe�ng Resource extensions and brown-fields explora�on (~1,460m). Assay results from the Phase IV drilling not only achieved the primary DFS objec�ves but also confirmed up and down-dip extensions of mineralisa�on outside the exis�ng Mineral Resource envelope and open pit designs. The new results allowed previously excluded historic intercepts to be incorporated into the Sorby Hills Mineral Resource and encourage the Company to embark on a Phase V program to further assess high impact opportuni�es revealed by the Phase IV program. Updated Mineral Resource Es�mate In April 2021, an updated Mineral Resource Es�mate was undertaken by CSA Global incorpora�ng the results of the Phase IV drill program. The updated Mineral Resource Es�mate comprised 44.9Mt at 3.2% Pb, 0.5% Zn and 37g/t Ag using a cut-off of 1% Pb. A comprehensive breakdown of the Mineral Resource by Resource classifica�on and deposit is shown in Table 1. The updated es�mate resulted in an increase in Measured and Indicated Tonnes of 1.3Mt (6%), 24Kt contained Lead (3%) and 1.2Moz contained Silver (5%). Importantly, the update saw the conversion of 4.0Mt of Indicated Resources to Measured Resources (an increase of 56%) and a significant increase in shallow Resource tonnes (<60m). OPERATIONS REVIEW
Table 1: Updated Sorby Hills Mineral Resource Es�mate – Pb Domains only.
Classifica�on
by Deposit
A
Inferred
Sub Total
B
Measured
Indicated
Sub Total
Omega
Measured
Indicated
Inferred
Sub Total
Norton
Measured
Indicated
Inferred
Sub Total
Alpha
Indicated
Inferred
Sub Total
Beta
Inferred
Sub Total
Total Resource
Measured
Indicated
Inferred
Total
Mt
0.6
0.6
1.0
1.3
2.3
7.3
6.5
2.9
16.7
2.8
2.2
15.0
20.0
1.0
1.0
2.0
3.3
3.3
11.1
11.0
22.8
44.9
Pb
%
5.1%
5.1%
4.0%
3.8%
3.9%
3.4%
3.5%
3.0%
3.4%
4.1%
3.2%
2.4%
2.7%
2.8%
3.4%
3.1%
4.6%
4.6%
3.6%
3.4%
2.9%
3.2%
Grade
Zn
%
Ag
g/t
Pb Eq.
%
0.9%
0.9%
0.3%
0.3%
0.3%
0.4%
0.4%
0.5%
0.4%
0.3%
0.5%
0.5%
0.4%
0.6%
1.4%
1.0%
0.4%
0.4%
0.3%
0.4%
0.5%
0.5%
22
22
21
22
22
36
33
32
34
76
37
28
36
50
85
67
61
61
45
34
36
37
5.7%
5.7%
4.6%
4.4%
4.5%
4.4%
4.4%
3.9%
4.3%
6.2%
4.2%
3.2%
3.7%
4.2%
5.8%
5.0%
6.3%
6.3%
4.9%
4.3%
3.9%
4.3%
Contained Metal
Zn
kt
5
5
3
5
7
26
28
15
69
9
10
70
89
6
13
19
14
14
Ag
koz
411
411
673
936
1,608
8,517
6,760
2,956
18,233
6,745
2,606
13,716
23,067
1,627
2,625
4,251
6,476
6,476
Pb Eq.
kt
34
34
45
59
105
324
283
111
718
173
94
479
745
42
56
98
208
208
Pb
kt
30
30
40
51
91
250
225
85
560
114
71
360
545
28
33
61
152
152
404
375
660
1,438
38
49
117
203
15,934
11,929
26,184
54,046
542
478
887
1,907
Note:
Tonnes and Grade are rounded. Reported at a 1.0% Pb Cut-Off.
Discrepancy in calculated Contained Metal is due to rounding.
See Compliance Statements for Metal Equivalent calcula�on method.
Lead Equivalent calcula�on excludes Zinc.
The Mineral Resource associated with the Zinc domains of the Alpha deposit (Table 2) was not included in the
latest Mineral Resource update and remains as previously released (ASX release 2 June 2020).
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
Table 2: Sorby Hills Mineral Resource Es�mate – Alpha Deposit Zn Domains only.
Classifica�on
by Deposit
Alpha
Indicated
Inferred
Sub Total
Mt
1.7
3.4
5.1
Pb
%
0.3
0.5
0.5
Zn
%
2.5
2.9
2.7
Ag
g/t
21
31
28
Pb
kt
5
17
22
Zn
kt
43
105
148
Ag
Moz
1.1
3.4
4.5
Note: Tonnes and Grade are rounded. Reported at a 1.0% Zn Cut-Off (ASX release 2 June 2020). Discrepancy in calculated
Contained Metal is due to rounding.
Phase V Drilling Program
On the back of posi�ve results from the Phase IV drilling program, Boab formed the view that a significant
opportunity existed to materially expand the Sorby Hills mining inventory ahead of the DFS through a high impact
Phase V drilling program.
The Phase V drilling program commenced in May 2021 with a planned objec�ve of comple�ng a minimum of
4,200m across 48 holes with specific targets including:
high impact targets iden�fied in the Phase IV drilling program located proximal to the current Sorby
Hills open-pit designs;
infill and extensional drilling of the Zinc-rich Alpha and high Silver Beta deposits for the first �me since
Boab’s acquisi�on of the Project in 2018;
further drill tes�ng of the Lead mineralisa�on previously intersected at the Wildcat target; and
inaugural tes�ng of the highly prospec�ve Eight Mile Creek Project, located immediately south of Sorby
Hills.
Preliminary results encouraged the Company to extend the Phase V drilling program with a total of 59 diamond
drill holes ul�mately being completed for a total of 5,284m.
Ini�al assay results from 24 of the Phase V diamond drills holes have confirmed observed mineralisa�on in the
drill core with selected results including:
SHMD070: 17m @ 3.39% Pb & 15g/t Ag from 58m
SHMD073: 17m @ 3.02% Pb &13g/t Ag from 75m
SHMD066: 5m @ 6.77% Pb & 26g/t Ag from 100m
SHMD066: 4.5m @ 2.39% Pb & 102g/t Ag from 31m
SHMD074: 5m @ 7.08% Pb & 91g/t Ag from 108m
Results from the remaining 29 diamond drill holes are pending at this point in �me.
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
Following the release of the diamond drill rig, Boab made the decision to undertake an addi�on 15 reverse
circula�on holes to �ghten drill spacing aimed at increasing Resource confidence at the Beta Deposit and test
conceptual targets at the Eight Mile Creek (E80/5317) immediately south and along strike of Sorby Hills.
The results of the Phase V diamond drill program will dovetail with those of the ongoing DFS Metallurgical
program and act as inputs to an inves�ga�on into the poten�al to expand the currently proposed processing
capacity at Sorby Hills.
Figure 2: Drill hole loca�ons
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
DFS Metallurgical Test work
In February 2021, Boab commenced the DFS Metallurgical Testwork Program. Key ac�vi�es of the program have
included:
Materials Handling testwork – to define bulk solids flow proper�es to provide materials handling design
details.
Comminu�on testwork - to define crushing and grinding characteris�cs as a func�on of ore type and
loca�on in the processing schedule.
Heavy Liquid Separa�on testwork - to define op�mum crush size for DMS beneficia�on of lower grade
ore and variability response.
Flota�on testwork - to define op�mal grind size, reagent regime and flota�on circuit design as a
func�on of ore type and loca�on in the processing schedule, including locked cycle tests for the
schedule composites.
Dewatering testwork - including tailings and concentrate thickening and filtra�on vendor equipment
selec�on/sizing testwork.
Lead-Silver Concentrate testwork - including Transportable Moisture Limit measurement and the
provision of concentrate product to support the securing of binding Of�ake agreements.
Results of the Metallurgical Testwork Program are expected to be finalised during September 2021.
Project Execu�on Ac�vi�es
Appointment of Chief Opera�ons Officer
On 12 January 2021, Mr David English was appointed as the inaugural Chief Opera�ng Officer of the Company.
The appointment represented a significant milestone in the progress towards a decision to mine and is a
testament to the ambi�on and ongoing growth of the Company.
Mr English brings to Boab a wealth of experience gained from nearly 40 years in opera�ons and project
development across some of Western Australia’s most prominent resource projects and processing opera�ons
including Independence Group’s Nova Nickel Project, Sandfire’s Degussa Project and BHP Billiton-Nickel West
Mount Keith Opera�on.
Engagement with NAIF
On 14 September 2020, Boab announced they had engaged with NAIF in regard to debt financing for the
development of Sorby Hills. NAIF is an Australian Federal Government organisa�on with an aggregate of A$5
billion of debt finance which may be lent on concessional terms to support infrastructure development that
generates public benefit for northern Australia.
Sorby Hills Project, located 50 kilometres north-east of Kununurra in the Kimberley Region of Western Australia,
will deliver employment opportuni�es and economic ac�vity to the Kimberley region, with a peak of 200 plus
construc�on personnel and over 170 opera�ons personnel during the life of the Project.
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
Sorby Hills has passed through the Stage 1 Ini�al Review of NAIF’s Assessment and Approval process and
con�nues to have an open dialogue with NAIF as the Project advances the Sorby Hills DFS and toward the Stage
2 Detailed Review.
Engagement with EFA
During the period, Boab received a Le�er of Support confirming that, subject to further due diligence and credit
assessment, EFA would consider par�cipa�ng in the project financing of Sorby Hills.
EFA is Australia’s export credit agency. It provides financial solu�ons to support Australian exporters, including
loans, bonds and guarantees. EFA finance complements debt finance from commercial lenders and works
alongside other Commonwealth financing bodies to fund commercially viable projects.
Projects which boost the ability to extract and process minerals in Australia for export, such as the Sorby Hills
Project, may be eligible for support from EFA.
Engagement with Commercial Banks
During the final quarter of the period, Boab undertook a Lender Roadshow where the Sorby Hills Project was
introduced to a suite of Commercial Banks.
Presenta�ons involved showcasing the results of the PFS, outlining the Companies pathway to a Decision to
Mine and discussing indica�ve debt financing structures.
The response from Commercial Banks was very posi�ve and provided an opportunity for early feedback for Boab
to consider incorpora�ng into the DFS and project execu�on workstreams.
O�ake Discussions
During the period, Boab undertook Preliminary O�ake Soundings process with a suite of leading base metals
customers with respect to Boab’s 75% share of the Lead-Silver concentrate to be produced at Sorby Hills. The
purpose of the Preliminary O�ake Soundings was:
to build rela�onships between Boab and a range of Tier-1 o�ake partners;
to receive indica�ve o�ake terms for the concentrate to be produced from Sorby Hills; and
canvas customer feedback to inform the ongoing Sorby Hills Defini�ve Feasibility Study.
The preliminary soundings were extremely posi�ve and demonstrated significant demand for the Lead-Silver
concentrate to be produced at Sorby Hills.
The Company intends to undertake a compe��ve o�ake tender for the O�ake Rights over the coming months
with the aim of concluding a binding o�ake agreement ahead of release the Sorby Hills DFS.
Joint Venture Discussions
The Sorby Hills Project is a Joint Venture with Henan Yuguang Gold and Lead Co., Ltd, (“Yuguang”) the largest
Lead smel�ng company and Silver producer in China.
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
During the period, Boab and Yuguang agreed to accelerate finalisa�on of the Mining Joint Venture Agreement
that will replace the exis�ng Joint Venture agreement and govern the development and opera�on of Sorby Hills
following a Decision to Mine.
Advancing the Mining Joint Venture Agreement will help facilitate engagement with poten�al financiers and
enable smooth transi�on from the DFS project development and construc�on.
Corporate Ac�vi�es
Name Change and Share Consolida�on
The Company held its AGM on 23 December 2020. Key Shareholder Approvals from the AGM were received for:
the change of Company name to Boab Metals Limited (previously Pacifico Minerals) with a new ASX
�cker code of ASX: BML – the new name was chosen to be�er reflect the loca�on of the Company’s
flagship Sorby Hills Project, located in the Kimberley Region of Western Australia; and
the consolida�on of share capital on a twenty-five (25) to one (1) basis resul�ng in a capital structure
be�er suited for the financing of the Sorby Hills Project.
Naming Rights Sponsor of the Ord Valley Muster
Boab was announced as the naming rights sponsorship for the Ord Valley Muster in 2022 and 2023.
The iconic Kimberley event, which celebrated its 20th year in 2021, brings together the vibrant Kununurra
community and a�racts thousands of visitors to experience the stunning landscape, cultural diversity and
famous Kimberley hospitality. Taking on the naming rights sponsorship from Rio Tinto and the Argyle Diamond
Mine is a big step for Boab Metals and one that the Company is incredibly proud of.
Strategic Acquisi�on of Manbarrum Zinc-Silver-Lead Project
Post the financial year end, Boab announced it had entered into a binding agreement with Todd River Metals
Pty Ltd to acquire the Manbarrum Zinc-Silver-Lead Project for a total considera�on of:
A$500,000 in Boab shares at an issue price of A$0.4214 per share (30 day VWAP); and
a Net Smelter Return Royalty of 1.25% on future revenue generated from minerals extracted from the
Manbarrum Project.
Boab has the right to buy-back the Royalty at market value following the comple�on of a Pre-Feasibility Study
on the Manbarrum Project.
The Manbarrum Project is located 25km east of Sorby Hills and covers geology that is gene�cally related to that
found at Sorby Hills allowing for an effec�ve transfer of technical knowledge to maximise explora�on and
Resource development poten�al. The Manbarrum Project comprises four tenements including 2 granted mining
leases and mul�ple deposits that have been the subject of Mineral Resource Es�mates (see Todd River
Resources prospectus dated 4 April 2017) and conceptual open pit mining studies (see Todd River Resources
announcement dated 10 April 2018).
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ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
While the Company remains focussed on the development of the Sorby Hills Project, the strategic acquisi�on of
the Manbarrum Project provides an opportunity to inves�gate a broader regional produc�on strategy that
leverages the clear synergies between the two projects.
No explora�on ac�vites were carried out during the financial year at the Borroloola West JV project in the
Northern Territory or at the company’s 100% owned explora�on projects in Colombia.
Share Placement and Op�on Exercise Program
On 18 September 2020, the Company announced that it had received firm commitments from sophis�cated and
professional investors to raise A$10 million (before costs) though the issue of 555,555,920 ordinary shares at
1.8 cents per Share, the placement was completed on 24 September 2020.
Furthermore, on 9 October 2020 the Company announced that it had raised A$240,000 from a SPP, through the
issue of 13,333,322 ordinary shares at 1.8 cents per share. An Op�on Exercise Program was also completed
during the period whereby A$4.8 million was raised.
Funds raised from the Placement, op�ons exercise and SPP have and will be used to execute the DFS
workstreams and focus on further de-risking, value-adding and explora�on opportuni�es aimed at progressing
Sorby Hills toward a Decision to Mine.
Conclusion
The Company finished Financial Year 2021 with a cash posi�on of A$12.9 million and is well placed to con�nue
the execu�on of Project workstreams aimed at delivering a high-quality DFS in early 2022 and moving swi�ly
toward a Decision to Mine.
Compliance Statements
Informa�on included in this Annual Report rela�ng to Explora�on Results has been extracted from the ASX
Announcement �tled “Assays Confirm Success at Sorby Hills” dated 25 August 2021 and available to view at
www.boabmetals.com. The Company confirms that it is not aware of any new informa�on or data that materially
affects the informa�on included in the original market announcement. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not been materially modified from the
Mineral Resource Es�mate.
Informa�on included in this Annual Report rela�ng to Mineral Resources has been extracted from the Mineral
Resource Es�mate dated 6 April 2021, available to view at www.boabmetals.com.au. The Company confirms
that it is not aware of any new informa�on or data that materially affects the informa�on included in the Mineral
Resource Es�mate and that all material assump�ons and technical parameters underpinning the es�mates,
con�nue to apply and have not materially changed. The Company confirms that the form and context in which
the Competent Person’s findings are presented have not been materially modified from the Mineral Resource
Es�mate.
Informa�on included in this Annual Report rela�ng to Ore Reserves, Produc�on Targets and Financial Forecasts
has been extracted from the Pre-Feasibility Report and Ore Reserve Statement dated 25 August 2020, available
to view at www.boabmetals.com.au. The Company confirms that it is not aware of any new informa�on or data
that materially affects the informa�on included in the Ore Reserve Statement and that all material assump�ons
and technical parameters underpinning the es�mates, produc�on targets and financial forecasts con�nue to
apply and have not materially changed. The Company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the Ore Reserves
Statement.
18
ANNUAL REPORT 2021BOAB METALS LIMITED
OPERATIONS REVIEW
Metal Equivalent Calcula�on Method
The contained metal equivalence formula is based on the Sorby Hills PFS including:
Lead Price US$2,095/t;
Lead recovery of 93.3% (weighted average of oxide and fresh Pb recoveries);
Lead Payability rate of 95%;
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 Boab’s opinion that all elements included in the metal equivalent calcula�on have a reasonable poten�al to
be recovered and sold.
The formula used to calculate lead equivalent grade is:
where R is the respec�ve metallurgical metal recovery rate, S is the respec�ve smelter return rate, V is metal
price/tonne or ounce, and G is the metal commodity grade for the suite of poten�ally recoverable commodi�es
(i) rela�ve to the primary metal (pri).
Metal equivalents are highly dependent on the metal prices used to derive the formula. Boab 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
penal�es or charges included in the calcula�on. Owing to limited metallurgical data, zinc grades are not included
at this stage in the lead equivalent grade calcula�on.
19
ANNUAL REPORT 2021BOAB METALS LIMITED
DIRECTORS’ REPORT
21
ANNUAL REPORT 2021BOAB METALS LIMITED Your Board of Directors (“Board” or “Directors”) present their report on the consolidated en�ty (referred to herea�er as the Group) consis�ng of Boab Metals Limited and the en��es it controlled at the end of, or during, the year ended 30 June 2021. FINANCIAL AND OPERATING REVIEW FINANCIAL REVIEW The Group began the financial year with a cash reserve of $2,908,551. During the year total explora�on expenditure incurred by the Group amounted to $3,822,870 (2020: $2,124,010). In line with the Group’s accoun�ng policies, all explora�on expenditure incurred in the ordinary course of opera�ons was expensed. The result for the year was an opera�ng loss a�er income tax of $5,038,982 (2020: $3,132,179). During the year, Boab completed capital raisings for $15,360,929 before costs. As at 30 June 2021, available cash funds totalled $12,896,960 (2020: $2,908,551). OPERATING RESULTS Summarised opera�ng results for the year are as follows: 2021 Revenues Results Geographic Segments $ $ Australia Revenues and (loss) from ordinary ac�vi�es before income tax expense 515,622 (5,055,394) Colombia Revenues and profit from ordinary ac�vi�es before income tax expense 6 16,412 Revenue/(Loss before income tax) 515,628 (5,038,982) Shareholder Returns 2021 2020 Basic Loss per share (cents per share) (3.55) (2.81) SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS During the year there were no significant changes in the state of affairs of the Group other than as disclosed in this report. DIRECTORS’ REPORT
22
ANNUAL REPORT 2021BOAB METALS LIMITED MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR On 21 July 2021, Boab announced that it had signed a Binding Agreement with Todd River Metals Pty Ltd to acquire 100% of the Manbarrum Project including associated mining leases, mining lease applica�ons, explora�on licences, and mining informa�on (“Sale Assets”). Consideration for the purchase of the Sales Assets comprises: a) The issue and allotment by Boab to Todd River (or its nominee) of A$500,000 of fully paid ordinary shares (“Considera�on Shares”) in the Company upon Comple�on of the transac�on at an issue price of A$0.4214 per share (being equal to the 30 day VWAP prior to the execu�on of the Binding Agreement); b) The Considera�on Shares will be issued out of the Company’s exis�ng capacity in accordance with ASX Lis�ng Rule 7.1 and will be subject to a voluntary escrow period of 12 months; and c) Net Smelter Return (NSR) Royalty of 1.25% payable on future revenue generated from the sale of minerals extracted from the Manbarrum Project. The royalty will be secured by a mining mortgage over the Manbarrum Project tenements that may be subordinated to poten�al project financiers provided certain condi�ons are met. Boab has retained the right to buy-back the royalty at market value subject to the comple�on of a Pre-Feasibility Study on the Manbarrum Project. On 31 August 2021, the Company announced that all condi�ons precedent had been met and that the Manbarrum aquisi�on was now complete. The Company has se�led the considera�on for the purchase being A$500,000 in the form of 1,186,521 fully paid ordinary shares (“Considera�on Shares”). The Considera�on Shares have been issued out of the Company’s exis�ng capacity in accordance with ASX Lis�ng Rule 7.1 and are subject to a voluntary escrow period of 12 months. LIKELY DEVELOPMENTS AND EXPECTED RESULTS The Group will con�nue explora�on and development ac�vi�es and to assess commercial opportuni�es for corporate growth, including the acquisi�on of interests in projects, as they arise. Due to the unpredictable nature of these opportuni�es, developments may occur at short no�ce. ENVIRONMENTAL REGULATION AND PERFORMANCE The Group is subject to substan�al environmental regula�on regarding its explora�on ac�vi�es. The Group endeavours to maintain an appropriate standard of environmental care through awareness of, and compliance with, new and exis�ng environmental legisla�on. The Directors are not aware of any breach of environmental legisla�on for the year under review. DIRECTORS’ REPORT
23
ANNUAL REPORT 2021BOAB METALS LIMITED RISK MANAGEMENT The Board is responsible for ensuring that risks and opportuni�es are iden�fied on a �mely basis and that ac�vi�es are aligned with these. The Board has not established a separate risk management commi�ee 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’ objec�ves are aligned with Board iden�fied risks. Mechanisms include board approval of a strategic plan (designed to meet stakeholders’ needs and reduce business risk), and Board approved opera�ng 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 responsibili�es individually, and as a Board, for the benefit of all Company stakeholders. That involves recogni�on 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 – 4th Edition’ established by the ASX Corporate Governance Council. Given the size and structure of the Group, the nature of its business ac�vi�es, the stage of its development and the cost of strict and detailed compliance with all of the recommenda�ons, it has adopted a range of modified systems, procedures and prac�ces which enable it to meet the principles of good corporate governance. The Groups’ prac�ces are consistent with the guidelines and where these do not directly relate to the recommenda�ons in the guidelines the Group considers that its adopted prac�ces 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 liabili�es that may arise from an officer’s posi�on, except for conduct involving a wilful breach of duty or improper use of informa�on or posi�on to gain personal advantage. The contract of insurance prohibits the disclosure of the nature of the liabili�es and the amount of premium. DIRECTORS MEETINGS The following table sets out the number of directors’ mee�ngs held during the financial year and the number of mee�ngs a�ended by each director while they held the posi�on. During the financial year, 5 board mee�ngs were held (2020: 4). Board of Directors Directors Eligible A�ended Gary Comb 5 5 Simon Noon 5 5 Richard Mon� 5 5 Andrew Parker 5 5 DIRECTORS’ REPORT
24
ANNUAL REPORT 2021BOAB METALS LIMITED INFORMATION ON DIRECTORS GARY COMB BE(Mech), BSc, Dip Ed. 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 opera�ng base metal mines. Interests in Shares, Op�ons and Performance Rights (Post-consolida�on) 560,237 Ordinary Shares. 120,000 Class “B” Unlisted Performance Rights 140,000 Class “C” Unlisted Performance Rights 160,000 Class “D” Unlisted Performance Rights Other Directorships in Listed En��es in the past three years Ironbark Zinc Limited and Cyprium Metals Limited. SIMON NOON MAICD, AFAIM Managing Director & CEO Simon was appointed 19 October 2013. Simon is an experienced execu�ve 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 commodi�es. Simon’s career highlights include managing Groote Resources Limited from a market capitalisa�on of less than $5M, to market highs in excess of $100M as the Execu�ve Director. A�er leaving Groote, Simon co-founded West Rock Resources Limited where he held the posi�on of Managing Director un�l the company was acquired by Boab in 2013. While managing West Rock, Simon secured and operated joint ventures and strategic alliances with mid and top �er miners. As Boab’s Managing Director & CEO, Simon has led the company from a greenfields explorer to a company that has the poten�al to become a significant global lead and silver producer. Simon is a passionate member of the WA resources industry, a member of the Australian Ins�tute of Company Directors and an Associate Fellow of the Australian Ins�tute of Management. Interests in Shares, Op�ons and Performance Rights (Post-consolida�on) 1,817,119 Ordinary Shares 480,000 Class “B” Unlisted Performance Rights. 480,000 Class “C” Unlisted Performance Rights. Other Directorships in Listed En��es in the past three Years Nil. DIRECTORS’ REPORT
25
ANNUAL REPORT 2021BOAB METALS LIMITED RICHARD MONTI BSc (Hons), Grad Dip AppFin., MAusIMM Non-Execu�ve Director Richard was appointed 12 October 2009 and resigned as Non-Execu�ve Chairman on 6 March 2020, from this date Richard assumed the role of Non-Execu�ve Director. Richard is a geologist with a successful career of over thirty years in the interna�onal mineral resource industry resul�ng in broad industry knowledge and strong strategic planning capabili�es. Richard has over forty-six director-years’ experience on thirteen ASX and TSX listed mining and explora�on 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, Op�ons and Performance Rights (Post-consolida�on) 1,324,982 Ordinary Shares. 100,000 Class “B” Unlisted Performance Rights. 100,000 Class “C” Unlisted Performance Rights. Other Directorships in Listed En��es in the past three years Zinc of Ireland NL, Black Dragon Gold, Alto Metals Limited and Caravel Minerals Limited. ANDREW PARKER LLB Non-Execu�ve Director Andrew was appointed 12 October 2009,and holds a law degree from the University of Western Australia and has significant experience in the explora�on and mining industry and a wealth of exper�se in corporate advisory, strategic consultancy, and capital raisings. Before joining Boab, he co-founded Trident Capital Pty Ltd, a corporate advisory and venture capital firm where he held the posi�on of Managing Director un�l 2008. Interests in Shares, Op�ons and Performance Rights (Post-consolida�on) 369,005 Ordinary Shares. 80,000 Class “B” Unlisted Performance Rights. 80,000 Class “C” Unlisted Performance Rights. Other Directorships in Listed En��es in the past three years Nil. JERRY MONZU FGIA, CPA, Bbus Company Secretary Jerry is a corporate execu�ve with over 25 years’ experience in corporate governance, finance and accoun�ng across various industry sectors globally ac�ng as Company Secretary, Chief Financial Officer and Director of several private and listed ASX, JSE and AIM companies throughout his career. DIRECTORS’ REPORT
26
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) Our remunera�on 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 informa�on provided under headings A-E includes disclosures that are required under Accoun�ng 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 Remuneration Policy The remunera�on policy of the Group aligns Directors and execu�ves with shareholder and business objec�ves by providing a fixed remunera�on component and offering specific long-term incen�ves based on key performance areas affec�ng the Group’s financial results. The Board believes the policy is appropriate and effec�ve in its ability to a�ract and retain high calibre execu�ves and Directors. The Board’s policy for determining the nature and amount of remunera�on for Directors and execu�ves of the Group is as follows: All execu�ves receive a base salary (based on factors such as experience) plus statutory superannua�on. The Board reviews execu�ve packages with reference to the Group’s performance, execu�ve performance and informa�on from relevant industry sectors and comparable listed companies. Independent external advice is sought where required. The Board may exercise discre�on in rela�on to approving incen�ves, bonuses, and the issue of op�ons. All remunera�on paid to Directors and execu�ves is valued at the cost to the Group and expensed. The maximum aggregate amount of fees that can be paid to Non-Execu�ve Directors is subject to approval by shareholders at the Annual General Mee�ng (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 has issued performance rights which form part of the Directors and Execu�ve remunera�on packages. These performance rights have various ves�ng condi�ons based on market and opera�onal hurdles being met. Group Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration The Group’s remunera�on policy encourages the alignment of personal and shareholder interests through the issue of op�ons to Directors and execu�ves. The Board believes this policy is effec�ve in increasing shareholder wealth. The Group currently benchmarks remunera�on paid against other peer group companies and the Board acts in its capacity as the Remunera�on Commi�ee in assessing Execu�ve remunera�on, the Company did not use any external remunera�on consultants in the financial year. DIRECTORS’ REPORT
27
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) (CONTINUED) Voting and comments on the Remuneration Report at the 2020 Annual General Meeting At the Company’s 2020 Annual General Mee�ng (“AGM”), a resolu�on to adopt the 2020 remunera�on report was put to a vote and passed unanimously on a show of hands with proxies received also indica�ng majority. 99.98% of validly appointed proxies were in favour of adop�ng the remunera�on report. No comments were made on the remunera�on report at the AGM. B. DETAILS OF REMUNERATION Details of the remunera�on of the Directors and Key Management Personnel as defined in AASB 124 Related Party Disclosures of the Group are set out in the following table. Given the size and nature of opera�ons of the Group, no other employees are required to have their remunera�on disclosed in accordance with the Corpora�ons Act 2001. Salary & Fees Non-Monetary (1,2) Superannua�on Op�ons/ Performance Rights Total Propor�on of remunera�on performance related Director $ $ $ $ $ G. Comb 2021 50,000 50,000 (1) 4,750 8,040 112,790 7% 2020 31,666 - 3,008 14,079 48,753 29% S. Noon 2021 283,539 56,280 (2) 25,935 91,339 457,093 20% 2020 240,000 15,037 22,800 83,888 361,725 23% R. Mon� 2021 40,200 - 3,819 29,401 73,420 40% 2020 40,842 - 4,121 17,476 62,439 28% A. Parker 2021 40,200 - 3,819 28,480 72,499 39% 2020 32,677 - 3,335 13,981 49,993 28% D. English 2021 169,615 9,581 (2) 16,113 9,340 204,649 5% 2020 - - - - - - Totals 2021 583,554 115,861 54,436 166,600 920,451 2020 345,185 15,037 33,264 129,424 522,910 (1) Relates to compensation paid through shares, 126,903 shares were issued to Gary Comb in lieu of directors fees. (2) Relates to the movement in leave provisions for the period. No re�rement benefits are payable post-employment under the Group’s execu�ve services agreements. DIRECTORS’ REPORT
28
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) (CONTINUED) C. SERVICE AGREEMENTS Material terms of the Execu�ves service agreements are as follows: Gary Comb – Execu�ve Chairman Remunera�on payable of $100,000 per annum plus statutory superannua�on; At the Boards discre�on up to 50% of the Execu�ve Chairman’s remunera�on may be payable in shares, subject to shareholder approval; The right to par�cipate in the Company’s Employee Share Incen�ve Plan as approved by the Board; and The right to resign with no formal resigna�on period. Simon Noon – Managing Director Remunera�on payable of $320,000 per annum plus statutory superannua�on; Either party may terminate the agreement without cause on three months’ wri�en no�ce; The right to par�cipate in the Company’s Employee Share Incen�ve 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 Mon� – Non-Execu�ve Director Remunera�on payable of $48,000 per annum plus statutory superannua�on; The right to par�cipate in the Company’s Employee Share Incen�ve Plan as approved by the Board; and The right to resign with no formal resigna�on period. Andrew Parker – Non-Execu�ve Director Remunera�on payable of $48,000 per annum plus statutory superannua�on; The right to par�cipate in the Company’s Employee Share Incen�ve Plan as approved by the Board; and The right to resign with no formal resigna�on period. David English – Chief Opera�ng Officer Remunera�on payable of $350,000 per annum plus statutory superannua�on; Either party may terminate the agreement without cause on three months’ wri�en no�ce; The right to par�cipate in the Company’s Employee Share Incen�ve Plan as approved by the Board. D. SHARE-BASED COMPENSATION During the year 280,000 performance rights were issued to Directors and Key Management Personnel (2020: 2,740,000 post consolida�on). 142,699 shares were issued to Directors upon exercise of remunera�on op�ons during the year (2020: Nil). Performance Rights granted during the year: KMP Grant Date Number Granted Grant Date Fair Value $ Expiry Date Ves�ng Date D English (Class B) 16 Jan 2021 120,000 30,000 30 June 2022 30 June 2022 D English (Class D) 16 Jan 2021 160,000 80,000 06 March 2025 06 March 2025 280,000 110,000 DIRECTORS’ REPORT
29
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) (CONTINUED) Performance Income as a Proportion of Total Compensation No performance-based bonuses were paid during the period (2020: Nil). E. ADDITIONAL INFORMATION Movements in Shares (Post-consolidation) Movement in the number of ordinary shares in the Company held (directly, indirectly or beneficially) by each Director, including their related par�es, is shown below. There were 126,903 shares issued as part of Director remunera�on during the year (2020: Nil). KMP Held at 1 July 2020 Movement Held at 30 June 2021 G Comb 200,000 360,237 560,237 R. Mon� 1,108,751 216,231 1,324,982 S. Noon 1,160,000 657,119 1,817,119 A. Parker 215,370 153,634 369,004 D. English - - - 2,684,121 1,387,221 4,071,342 KMP Held at 1 July 2019 Movement Held at 30 June 2020 G Comb - 200,000 200,000 R. Mon� 908,751 200,000 1,108,751 S. Noon 1,056,000 104,000 1,160,000 A. Parker 215,370 - 215,370 P. Harold* 170,020 (170,020) - 2,350,141 333,980 2,684,121 *Number of ordinary shares held by Mr P Harold up to the date of his resignation on the 7 April 2020. Movements in Options (Post-consolidation) Movement in the number of op�ons in the Company held (directly, indirectly or beneficially) by Directors and Key Management Personnel, including their related par�es, during the repor�ng period is as follows: KMP Held at 1 July 2020 Other Changes (1) Held at 30 June 2021 Vested at 30 June 2021 G. Comb - - - - R. Mon� 237,669 (237,669) - - S. Noon 424,000 (424,000) - - A. Parker 193,333 (193,333) - - D. English* - - - - 855,002 (855,002) - - DIRECTORS’ REPORT
30
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) (CONTINUED) Fair Value of op�ons exercised KMP No of op�ons Exercised No of shares Issued Amount Paid $ Fair Value on Exercise $ G Comb - - - - R. Mon� 237,669 116,231 29,126 23,178 S. Noon 424,000 177,118 35,250 44,453 A. Parker 193,333 73,633 12,500 20,635 D. English* - - - - 855,002 366,982 76,876 88,266 The value of op�ons exercised during the year is calculated at the market price on the date of exercise a�er deduc�ng the price paid on the exercise the op�ons. The number of shares issued differs from op�ons exercised due to the cashless issue of shares. *Mr. English joined as Chief Opera�ng Officer on the 6th of January 2021. (1) Shows op�ons converted to ordinary shares in the year. (2) Shows number of op�ons held by Mr P. Harold at the date of resigna�on 7 April 2020. KMP Held at 1 July 2019 Other Changes Held at 30 June 2019 Vested at 30 June 2020 G. Comb - - - - R. Mon� 237,669 - 237,669 237,669 S. Noon 424,000 - 424,000 424,000 A. Parker 193,333 - 193,333 193,333 P. Harold 160,000 (160,000)(2) - - 1,015,002 (160,000) 855,002 855,002 DIRECTORS’ REPORT
31
ANNUAL REPORT 2021BOAB METALS LIMITED REMUNERATION REPORT (AUDITED) (CONTINUED) Movements in Performance Rights (Post -consolidation) Movement in the number of Performance Rights in the Company held (directly, indirectly or beneficially) by Directors and Key Management Personnel, including their related par�es, during the repor�ng period is as follows: KMP Held at 1 July 2020 Other Changes (1) Held at 30 June 2021 Vested at 30 June 2021 G. Comb 520,000 (100,000) 420,000 - R. Mon� 300,000 (100,000) 200,000 - S. Noon 1,440,000 (480,000) 960,000 - A. Parker 240,000 (80,000) 160,000 - D. English* - 280,000 280,000 - 2,500,000 (480,000) 2,020,000 - *Mr. English joined as Chief Opera�ng Officer on the 6th of January 2021. During the period, Mr. English was issued Performance Rights with various ves�ng condi�ons. (1) Nega�ve movements in Performance Rights are due to Performance Rights being exercised on achievement of milestones. KMP Held at 1 July 2019 Other Changes Held at 30 June 2020 Vested at 30 June 2020 G. Comb - 520,000 520,000 - R. Mon� - 300,000 300,000 - S. Noon - 1,440,000 1,440,000 - A. Parker - 240,000 240,000 - P. Harold(1) - - - - - 2,500,000 2,500,000 - (1) Mr P Harold held 6,000,000 Performance Rights up to the date of his resigna�on on 7 April 2020, these Performance rights were cancelled on his resigna�on date. KMP Number Granted Exercise Price Grant Date Fair Value at Grant Date $ Expiry Date D. English 280,000 Nil 16/01/2021 110,000 Various A total of 280,000 Performance Rights (2020:2,500,000) were issued during the period with variable ves�ng condi�ons based on the achievement of Performance milestones. END OF THE REMUNERATION REPORT DIRECTORS’ REPORT
32
ANNUAL REPORT 2021BOAB METALS LIMITED OPTIONS OVER ORDINARY SHARES No Op�ons were issued in 2021 (2020: Nil). Op�ons on issue at the date of the Directors Report had the following expiry dates and exercise prices: Performance Rights Performance rights on issue at the date of the Directors Report had the following expiry dates and exercise prices: NON-AUDIT SERVICES No non-audit services were provided by the auditor of the Group, Stantons Interna�onal Audit and Consul�ng Pty Ltd during the financial year. AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor's independence declara�on as required under sec�on 307C of the Corpora�ons Act 2001 is set out on the following page. Signed in accordance with a resolu�on of the Directors. Gary Comb Chairman 21 September 2021Expiry Date Status Exercise Price Op�ons No. 16/10/2021 Unlisted $0.50 400,000 Details Performance Rights Exercise Price Grant Date Expiry Date Class "B" Performance Shares 900,000 Nil 29/11/2019 30/06/2022 Class "C" Performance Shares 800,000 Nil 29/11/2019 30/06/2022 Class "D" Performance Shares 320,000 Nil Various 6/03/2025 2,020,000 AUDITOR’S INDEPENDENCE DECLARATION
34
ANNUAL REPORT 2021BOAB METALS LIMITED Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms 21 September 2021 Board of Directors Boab Metals Limited Level 1, 105 St Georges Terrace PERTH. WA. 6000. Dear Directors, RE: BOAB METALS LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Boab Metals Limited. As Audit Director for the audit of the financial report of Boab Metals Limited for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours sincerely STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director FINANCIAL REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Revenue from Con�nuing Opera�ons
Expenditure
Explora�on Expenses
Salaries and Employee Benefits Expenses
Deprecia�on Expenses
Corporate Expenses
Occupancy Expenses
Consul�ng Expenses
Administra�on Expenses
Share Based Payments
Deprecia�on of Right of Use Assets
Interest paid on leased liabili�es
Stamp Duty
Gain on sale of subsidiary
(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 Transla�on Reserve
Total Comprehensive (Loss)
(Loss) A�ributed to the Members
Total Comprehensive (Loss) A�ributed to the Members
Basic and Diluted Loss per Share for Loss A�ributable to
the Ordinary Equity Holders of the Company (Cents per
Share)
Notes
5
6
6,12
29
6,13
13
7
20
2021
$
515,628
(3,822,870)
(638,661)
(11,908)
(181,548)
(33,522)
(269,364)
(390,464)
(186,114)
(53,598)
(2,850)
-
36,289
(5,038,982)
-
(5,038,982)
-
-
2020
$
291,906
(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)
-
-
-
-
(280,852)
(5,319,834)
(5,038,982)
(5,319,834)
(4,268)
(3,136,447)
(3,132,179)
(3,136,447)
28
(3.55)
(2.81)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the Notes to the Financial Statements.
36
ANNUAL REPORT 2021BOAB METALS LIMITED
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Other Assets
Total Current Assets
Non-Current Assets
Explora�on and Evalua�on Assets
Investments
Other Assets
Plant and Equipment
ROU Asset
Total Non-Current Assets
Total Assets
Current Liabili�es
Trade and Other Payables
Provisions
Lease liability
Total Current Liabili�es
Non-Current Liabili�es
Lease liability
Deferred tax liability
Total Non-Current Liabili�es
Total Liabili�es
Net Assets
Equity
Contributed Equity
Reserves
Accumulated Losses
Total Equity
Notes
8
9
9
10
11
12
13
14
15
16
16
17
18
20
2021
$
12,896,960
362,118
12,778
13,271,856
5,160,560
60,000
84,849
42,380
44,237
5,392,026
18,663,882
1,291,781
175,879
45,531
1,513,191
-
169,153
169,153
1,682,344
16,981,538
2020
$
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
641,627
46,719
178,913
225,632
867,259
7,612,809
47,698,398
1,290,053
(32,006,913)
16,981,538
32,980,318
1,600,422
(26,967,931)
7,612,809
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the
Financial Statements.
37
ANNUAL REPORT 2021BOAB METALS LIMITED
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued
Capital
Share /
Op�on
Reserve
Foreign
Currency
Transla�on
Reserve
$
32,980,318
$
1,653,328
- - -
$
(52,906)
Accumulated
Losses
Total
$
(26,967,931)
(5,038,982)
$
7,612,809
(5,038,982)
- -
(280,852)
-
(280,852)
-
(280,852)
-
(5,038,982)
(5,319,834)
15,145,298
(642,849)
-
-
115,200
(115,200)
100,431
85,683
-
-
-
-
-
-
-
-
15,145,298
(642,849)
-
186,114
2021
Balance at 1 July 2020
(Loss) for the Year
Other Comprehensive
(Loss) for the Year
Total Comprehensive
(Loss) for the Year
Issue of Shares/Op�ons
Share/Op�on Issue
Expense
Performance Rights
converted to Ordinary
Shares
Share Based Payments
Balance at 30 June 2021
47,698,398
1,623,811
(333,758)
(32,006,913)
16,981,538
2020
Balance at 1 July 2019
(Loss) for the Year
Other Comprehensive
(Loss) for the Year
Total Comprehensive
(Loss) for the Year
Issue of Shares
Share/Op�on Issue
Expense
28,705,740
1,523,902
(48,638)
(23,835,752)
6,345,252
-
-
-
4,600,000
(325,422)
-
-
-
-
-
-
(3,132,179)
(3,132,179)
(4,268)
-
(4,268)
(4,268)
(3,132,179)
(3,136,447)
-
-
-
-
-
-
4,600,000
(325,422)
129,426
Share Based Payments
-
129,426
Balance at 30 June 2020
32,980,318
1,653,328
(52,906)
(26,967,931)
7,612,809
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the
Financial Statements.
38
ANNUAL REPORT 2021BOAB METALS LIMITED
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Cash Flows from Opera�ng Ac�vi�es
Expenditure on Mining Interests
Payments to Suppliers and Employees
Receipts from Federal Government "Cash Flow Boost"
Interest Received
Management fees
Net Cash (Ou�low) from Opera�ng Ac�vi�es
Cash Flows from Inves�ng Ac�vi�es
Proceeds from disposal of assets - Colombia
Proceeds from sale of assets - Colombia
Cash transferred into Security deposits
Payments for Purchase of Tenements/Projects
Payments for Purchase of Property, Plant and Equipment
Net Cash Inflow/(Ou�low) from Inves�ng Ac�vi�es
Cash Flows from Financing Ac�vi�es
Proceeds from Issues of Shares
Proceeds from conversion of op�ons
Payment of Share Issue Costs
Payments on lease liability
Net Cash Inflow from Financing Ac�vi�es
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at the Beginning of the Financial Year
Effects of Foreign Exchange
Cash and Cash Equivalents at the End of the Financial Year
8
Notes
2021
$
2020
$
(3,104,780)
(1,710,704)
67,648
21,598
172,721
(4,553,517)
(2,551,427)
(923,367)
50,000
33,811
123,732
(3,267,251)
27
164,985
27,190
436
-
(44,212)
148,399
-
-
(60,948)
(1,829)
(5,825)
(68,602)
10,240,007
4,851,958
(642,849)
(55,589)
14,393,527
9,988,409
2,908,551
-
12,896,960
4,600,000
-
(325,422)
(9,265)
4,265,313
929,460
1,983,359
(4,268)
2,908,551
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial
Statements.
39
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accoun�ng policies adopted in the prepara�on 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 Boab Metals Limited (“Parent” or “Company”) and its subsidiaries (the
“Group”) for the year ended 30 June 2021. The financial report was authorised for issue in accordance with a
resolu�on of the Board of Directors of Boab Metals Limited on 21 September 2021. Boab Metals Limited is a
company incorporated in Australia whose shares are publicly traded on the Australian Securi�es Exchange. The
nature of the opera�ons and principal ac�vi�es of the Group is explora�on of mineral tenements in Australia and
La�n America.
(a)
BASIS OF PREPARATION
This general-purpose financial report has been prepared in accordance with Australian Accoun�ng Standards,
other authorita�ve pronouncements of the Australian Accoun�ng Standards Board, Australian Interpreta�ons,
and the Corpora�ons Act 2001.
(i)
Compliance with IFRS
Australian Accoun�ng Standards include Australian equivalents to Interna�onal Financial Repor�ng Standards
(“AIFRS”). Compliance with AIFRS ensures that the financial statements and notes of Boab Metals Limited comply
with Interna�onal Financial Repor�ng Standards (“IFRS”).
(ii)
Historical Cost Convention
Financial statements have been prepared under the historical cost conven�on, as modified by the revalua�on of
available-for-sale financial assets, financial assets and liabili�es 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 con�nuity of normal
business ac�vi�es and realisa�on of assets and se�lement of liabili�es in the ordinary course of business. The
going concern of the Group is dependent upon maintaining enough funds for its opera�ons and commitments.
The Directors con�nue to monitor the funding requirements of the Group and are confident that funding can be
secured as required to enable the Group to con�nue 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 en��es over which the Group has the power to govern the financial and opera�ng policies,
generally accompanying a shareholding of more than half of the vo�ng rights. The existence and effect of
poten�al vo�ng rights that are currently exercisable or conver�ble are considered when assessing whether the
Group controls another en�ty. 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 acquisi�on method of accoun�ng
is used to account for business combina�ons by the Group (refer to Note 1(d)). Intercompany transac�ons,
balances and unrealised gains on transac�ons between Group companies are eliminated. Unrealised losses are
also eliminated unless the transac�on provides evidence of the impairment of the asset transferred. Accoun�ng
policies of subsidiaries have been changed where necessary to ensure consistency with policies adopted by the
Group.
40
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(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 obliga�ons for its liabili�es. Joint control
is defined as the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant ac�vi�es require the unanimous consent of the par�es sharing control. Interests in joint
ventures are accounted for using the equity method.
Under the equity method of accoun�ng, the investments are ini�ally recognised at cost and adjusted therea�er
to recognise the Group’s share of the post-acquisi�on 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 rela�ng to the joint venture is included in the carrying amount of the investment and is not amor�sed
or tested individually for impairment. Dividends received or receivable from joint ventures are recognised as a
reduc�on in the carrying amount of the investment.
Financial statements of the joint venture are prepared for the same repor�ng period as the Group. When
necessary, adjustments are made to bring accoun�ng policies in line with those of the Group.
A�er applica�on 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 es�mates 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 par�es that have joint control of the arrangement have rights to the
assets, and obliga�ons for the liabili�es, rela�ng to the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant ac�vi�es require
unanimous consent of the par�es sharing control.
41
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When a group en�ty undertakes its ac�vi�es under a joint arrangement, the Group as operator, recognises in
rela�on to its interest in a joint arrangement its:
assets, including its share of any assets held jointly;
liabili�es, including its share of any liabili�es incurred jointly;
revenue from the sale of its share of the output arising from the joint opera�on;
share of the revenue from the sale of the output by the joint opera�on; and
expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabili�es, revenues, and expenses rela�ng to its interest in a joint opera�on
in accordance with the Australian Accoun�ng Standards applicable to the certain assets, liabili�es, revenues,
and expenses. When a group en�ty transacts with a joint opera�on in which a group en�ty is a joint operator
(such as a sale or contribu�on of assets), the Group is considered to be conduc�ng the transac�on with the
other par�es to the joint opera�on, and gains and losses resul�ng from the transac�ons are recognised in the
Group’s consolidated financial statements only to the extent of other par�es’ interests in the joint opera�on.
When a group en�ty transacts with a joint opera�on in which a group en�ty is a joint operator (such as
a purchase of assets), the Group does not recognise its share of the gains and losses un�l it resells those assets
to a third party.
(c)
FOREIGN CURRENCY TRANSLATION
(i)
Functional and presentation currency
Items included in the financial statements of each of the Group’s en��es are measured using the currency of the
primary economic environment in which the en�ty operates (func�onal currency). The consolidated financial
statements are presented in Australian dollars, Boab’s func�onal and presenta�on currency, unless otherwise
stated.
(ii)
Transactions and balances
Foreign currency transac�ons are translated into the func�onal currency using the exchange rate at the date of
the transac�on. Foreign exchange gains and losses resul�ng from the se�lement of such transac�ons and from
the transla�on at year end exchange rates of monetary assets and liabili�es 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 a�ributable to part of the net investment in a foreign opera�on. Foreign
exchange gains and losses rela�ng 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. Transla�on differences on assets and liabili�es carried at fair
value are reported as part of the fair value gain or loss.
42
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iii)
Group companies
The results and financial posi�on of foreign opera�ons that have a func�onal currency other than the
presenta�on currency are translated into the presenta�on currency as follows:
assets and liabili�es 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 approxima�on of the
cumula�ve effect of the rates prevailing on the transac�on dates, in which case income and
expenses are translated at the dates of the transac�ons); and
all resul�ng exchange differences are recognised in other comprehensive income.
On consolida�on, exchange differences arising from the transla�on of any net investment in foreign en��es,
and of borrowings and other financial instruments designated as hedges of such investments, are recognised
in other comprehensive income. When a foreign opera�on 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 acquisi�on of a foreign opera�on are treated as assets and
liabili�es of the foreign opera�on and translated at the closing exchange rate.
(d)
BUSINESS COMBINATIONS
The acquisi�on method of accoun�ng is used to account for all business combina�ons, regardless of whether
equity instruments or other assets are acquired. The considera�on transferred for the acquisi�on of a
subsidiary comprises the fair values of the assets transferred, the liabili�es incurred and the equity interests
issued by the Group. The considera�on transferred also includes the fair value of any asset or liability resul�ng
from a con�ngent considera�on arrangement and the fair value of any pre-exis�ng equity interest in the
subsidiary. Acquisi�on-related costs are expensed as incurred. Iden�fiable assets acquired and liabili�es and
con�ngent liabili�es assumed in a business combina�on are, with limited excep�ons, measured ini�ally at
their fair values at the acquisi�on date. On an acquisi�on-by-acquisi�on basis, the Group recognises any non-
controlling interest in the acquiree either at fair value or at the non-controlling interest’s propor�onate share
of the acquiree’s net iden�fiable assets.
Excess considera�on transferred and the amount of any non-controlling interest in the acquiree over the fair
value of the net iden�fiable assets acquired is recorded as goodwill. If those amounts are less than the fair
value of the net iden�fiable 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 se�lement of any part of cash considera�on 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 en�ty’s incremental
borrowing rate (rate at which a similar borrowing could be obtained from an independent financier under
comparable terms and condi�ons). Con�ngent considera�on 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.
43
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
SEGMENT REPORTING
(e)
Opera�ng segments are iden�fied, and segment informa�on disclosed based on internal reports received by
the Board.
REVENUE RECOGNITION
(f)
Interest revenue is recognised on a �me propor�onate basis that considers the effec�ve 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 2021. The Group recognised revenue from the
Sorby Hills Joint Venture in accordance with its propor�onal holding.
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 na�onal income tax rate for each jurisdic�on adjusted by changes in deferred tax assets and
liabili�es a�ributable 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 liabili�es
and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises
from ini�al recogni�on of an asset or liability in a transac�on other than a business combina�on that at the
�me of the transac�on affects neither accoun�ng nor taxable profit or loss. Deferred income tax is determined
using tax laws and rates that have been enacted or substan�ally 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 se�led.
Deferred tax assets are recognised for deduc�ble temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to u�lise those temporary differences and losses.
Deferred tax assets and liabili�es are offset where there is a legally enforceable right to offset current tax
assets and liabili�es and where the deferred tax balances relate to the same taxa�on authority. Current tax
assets and liabili�es are offset where the en�ty has a legally enforceable right to offset and intends either to
se�le on a net basis, or to realise the asset and se�le the liability simultaneously. Current and deferred tax
balances a�ributable to amounts recognised directly in equity are also recognised directly in equity.
IMPAIRMENT OF ASSETS
(h)
Goodwill and intangible assets that have an indefinite useful life are not subject to amor�sa�on 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 iden�fiable cash inflows that are largely independent of the cash inflows
from other assets or groups of assets (cash-genera�ng units). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the impairment at each repor�ng date.
44
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
CASH AND CASH EQUIVALENTS
(i)
For presenta�on purposes on the cash flow statement, cash and cash equivalents includes cash on hand and
deposits held by financial ins�tu�ons.
TRADE AND OTHER RECEIVABLES
(j)
Trade and other receivables are non-deriva�ve financial assets with fixed or determinable payments that are
not quoted in an ac�ve market. Trade receivables are ini�ally recognised at fair value and subsequently
measured at amor�sed cost using the effec�ve interest method, less any allowance for expected credit losses.
Trade receivables for goods and services are generally due for se�lement within 30 days from date of invoice.
The group has applied the simplified approach to measuring expected credit losses, which uses a life�me
expected loss allowance. To measure the expected credit losses, trade receivables would be grouped based
on days overdue.
Other receivables are recognised at amor�sed cost, less any allowance for expected credit losses.
(k)
FINANCIAL INSTRUMENTS
(i) Recognition, Initial Measurement and Derecognition
Financial assets and financial liabili�es are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
ini�ally at fair value adjusted by transac�ons costs, except for those carried “at fair value through profit or
loss”, in which case transac�on costs are expensed to profit or loss. Where available, quoted prices in an ac�ve
market are used to determine the fair value. In other circumstances, valua�on techniques are adopted.
Subsequent measurement of financial assets and financial liabili�es are described below.
Trade receivables are ini�ally measured at the transac�on 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 substan�al risks and rewards are transferred. A financial liability is
derecognised when it is ex�nguished, 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 ini�ally measured at fair value
adjusted for transac�on costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effec�ve as
hedging instruments, are classified into the following categories upon ini�al recogni�on:
amor�sed cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
45
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Classifica�ons are determined by both:
The contractual cash flow characteris�cs of the financial assets; and
The en��es business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amor�sed cost if the assets meet the following condi�ons (and are not
designated as FVPL):
they are held within a business model whose objec�ve 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.
A�er ini�al recogni�on, these are measured at amor�sed cost using the effec�ve interest method. Discoun�ng
is omi�ed where the effect of discoun�ng is immaterial. The Group’s cash and cash equivalents, trade and most
other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
Upon ini�al recogni�on, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the defini�on 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 ini�al recogni�on 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 liabili�es are classified, at ini�al recogni�on, as financial liabili�es at fair value through profit or loss,
loans and borrowings, payables, or as deriva�ves designated as hedging instruments in an effec�ve hedge, as
appropriate.
Financial liabili�es are ini�ally measured at fair value, and, where applicable, adjusted for transac�on costs
unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabili�es are measured at amor�sed cost using the effec�ve interest method except for
deriva�ves and financial liabili�es designated at FVPL, which are carried subsequently at fair value with gains or
losses recognised in profit or loss.
46
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 amor�sed 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 permi�ed by
AASB, which requires expected life�me losses to be recognised from ini�al recogni�on of the receivables.
(iv)
Valuation Techniques
In the absence of an ac�ve market for an iden�cal asset or liability, the Group selects and uses one or more
valua�on techniques to measure the fair value of the asset or liability. The Group selects a valua�on 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 characteris�cs of the asset or liability
being measured. The valua�on techniques selected by the Group are consistent with one or more of the
following valua�on approaches:
Market approach: valua�on techniques that use prices and other relevant informa�on generated by
market transac�ons for iden�cal or similar assets or liabili�es.
Income approach: valua�on techniques that convert es�mated future cash flows or income and
expenses into a single discounted present value.
Cost approach: valua�on techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valua�on technique requires inputs that reflect the assump�ons that buyers and sellers would use when
pricing the asset or liability, including assump�ons about risks. When selec�ng a valua�on 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 informa�on on
actual transac�ons) and reflect the assump�ons 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 informa�on available about such assump�ons are considered unobservable.
47
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(v)
Fair Value Hierarchy
AASB 13 requires the disclosure of fair value informa�on 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 ac�ve markets for iden�cal assets or liabili�es that the
en�ty 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 liabili�es that are not traded in an ac�ve market are determined using one or more
valua�on techniques. These valua�on 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 categorisa�on within the fair value hierarchy only in the following circumstances:
if a market that was previously considered ac�ve (Level 1) became inac�ve (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 categorisa�on 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.
(l)
PLANT AND EQUIPMENT
All plant and equipment are stated at historical cost less deprecia�on. Historical cost includes expenditure that
is directly a�ributable to the acquisi�on of the items. Deprecia�on of plant and equipment is calculated using
the straight-line method to allocate their cost (net of their residual values) over their es�mated useful lives.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date. An asset’s carrying amount is wri�en down immediately to its recoverable amount if the asset’s carrying
amount is greater than its es�mated 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.
48
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m)
EXPLORATION AND EVALUATION COSTS
Explora�on and evalua�on costs are wri�en off in the year they are incurred apart from acquisi�on 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 explora�on of the area of interest, or, where
explora�on and evalua�on ac�vi�es 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 acquisi�on costs in respect of that area are
wri�en off in the financial period the decision is made. Each area of interest is reviewed at the end of each
accoun�ng period and accumulated costs wri�en off to the extent that they will not be recoverable in the
future.
TRADE AND OTHER PAYABLES
(n)
Trade and other payables represent liabili�es 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.
(o)
EMPLOYEE BENEFITS
(i)
(ii)
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. Liabili�es arising in respect of employee benefits are measured
at their nominal amounts based on remunera�on rates to be paid when the liability is se�led.
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-se�led transac�ons”). The cost of these equity-
se�led transac�ons is measured by reference to the fair value at the date at which they are
granted. The fair value is determined by an internal valua�on using a Black-Scholes op�on pricing
model. The cost of equity-se�led transac�ons is recognised, together with a corresponding
increase in equity, over the period in which the performance condi�ons are fulfilled, ending on the
date on which the relevant employees become fully en�tled to the award (“ves�ng date”).
The cumula�ve expense recognised for equity-se�led transac�ons at each repor�ng date un�l ves�ng date
reflects the extent to which the ves�ng period has expired and the number of op�ons that the Directors think
will vest ul�mately. This opinion is formed based on the informa�on available at balance date.
No adjustment is made for the likelihood of market performance condi�ons being met as the effect of these
condi�ons is included in the determina�on of fair value at grant date. No expense is recognised for awards that
do not ul�mately vest, except for awards where ves�ng is condi�onal upon a market condi�on. Where an
equity-se�led award is cancelled, it is treated as if it had vested on the date of cancella�on, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is subs�tuted 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 modifica�on of the original award.
49
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(p)
CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Incremental costs directly a�ributable to the issue of new shares or
op�ons are shown in equity as a deduc�on (net of tax) from the proceeds. Incremental costs directly a�ributable
to the issue of new shares or op�ons, for the acquisi�on of a business, are not included in the cost of the
acquisi�on as part of the purchase considera�on.
(q)
EARNINGS PER SHARE
(i)
Basic Earnings Per Share
Basic earnings per share are calculated by dividing the profit a�ributable to equity holders of the Parent en�ty,
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 determina�on of basic earnings per share to take into
account the a�er income tax effect of interest and other financing costs associated with dilu�ve poten�al
ordinary shares and the weighted average number of shares assumed to have been issued for no considera�on
in rela�on to dilu�ve poten�al ordinary shares.
(r)
GOODS AND SERVICES TAX (‘GST’)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxa�on authority. In this case it is recognised as part of the cost of acquisi�on 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 taxa�on 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
inves�ng or financing ac�vi�es which are recoverable from, or payable to the taxa�on authority, are presented
as opera�ng cash flow.
(s)
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The carrying amount of certain assets and liabili�es is o�en determined based on es�mates and assump�ons
of future events. The key es�mates and assump�ons that have significant risk of causing a material adjustment
to the carrying amounts of certain assets and liabili�es within the next annual repor�ng period are:
(i)
Deferred Taxation
The poten�al 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.
50
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii)
Capitalised Exploration Costs
The applica�on of the Group’s accoun�ng policy for explora�on and evalua�on expenditure requires judgement
in determining whether future economic benefits are likely, either from explora�on or sale, or where ac�vi�es
have not reached a stage which permits reasonable assessment.
(iii)
Share-Based Payments
The Group measures the cost of equity-se�led and cash-se�led transac�ons 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 assump�ons and carrying amount at the repor�ng date is disclosed in Note 29.
(t)
LEASES
The Group as lessee
At incep�on 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 opera�ng expense on a straight-line basis
over the term of the lease.
Ini�ally, the lease liability is measured at the present value of the lease payments s�ll 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 incen�ves;
variable lease payments that depend on an index or rate, ini�ally 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 op�ons if the lessee is reasonably certain to exercise the op�ons;
lease payments under extension op�ons, if the lessee is reasonably certain to exercise the op�ons; and
payments of penal�es for termina�ng the lease, if the lease term reflects the exercise of op�ons to
terminate the lease.
The right-of-use asses comprise the ini�al measurement of the corresponding lease liability, any lease payments
made at or before the commencement date and any ini�al direct costs. The subsequent measurement of the
right-of-use assets is at cost less accumulated deprecia�on 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 an�cipates exercising a purchase op�on, 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.
51
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
2. NEW STANDARDS AND INTERPRETATIONS ADOPTED AND NOT YET ADOPTED
The Group has considered the implica�ons of new and amended Accoun�ng Standards which have become
applicable for the current financial repor�ng period.
Ini�al adop�on of AASB 2020-04: COVID-19-Related Rent Concessions
AASB 2020-4: Amendments to Australian Accounting Standards – COVID-19-Related Rent Concessions amends
AASB 16 by providing a prac�cal expedient that permits lessees to assess whether rent concessions that occur
as a direct consequence of the COVID-19 pandemic and, if certain condi�ons are met, account for those rent
concessions as if they were not lease modifica�ons.
2018-6 amends and narrows the defini�on of
Ini�al adop�on of AASB 2018-6: Amendments to Australian Accounting Standards – Definition of a Business
a business specified in AASB 3: Business
AASB
Combinations, simplifying the determina�on of whether a transac�on should be accounted for as a business
combina�on or an asset acquisi�on. En��es may also perform a calcula�on and elect to treat certain
acquisi�ons as acquisi�ons of assets.
Ini�al adop�on of AASB 2018-7: Amendments to Australian Accounting Standards – Definition of Material
This amendment principally amends AASB 101 and AASB 108 by refining the defini�on of material by improving
the wording and aligning the defini�on across the standards issued by the AASB.
Ini�al adop�on of AASB 2019-3: Amendments to Australian Accounting Standards – Interest Rate Benchmark
This amendment amends specific hedge accoun�ng requirements to provide relief from the poten�al effects of
the uncertainty caused by interest rate benchmark reform.
Ini�al adop�on of AASB 2019-1: Amendments to Australian Accounting Standards – References to the
Conceptual Framework
This amendment amends Australian Accoun�ng Standards, Interpreta�ons and other pronouncements to reflect
the issuance of Conceptual Framework for Financial Repor�ng by the AASB.
The standards listed above did not have any material impact on the amounts recognised in prior periods and are
not expected to significantly affect the current or future periods.
3
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT OBJECTIVES
The Group’s ac�vi�es 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 poten�al adverse effects on the financial
performance of the Group.
Various methods are used to measure risks to which the Group is exposed, including sensi�vity analysis for
interest rate, foreign exchange and other price risks, and ageing analysis for credit risk.
52
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
Risk management is carried out by the accoun�ng team under Board approved policies covering iden�fica�on
and analysis of risk exposure, risk limits, and appropriate procedures and controls. Repor�ng is provided to the
Board on a monthly basis.
MARKET RISK
Foreign Currency Risk
(i)
The Group completes certain transac�ons denominated in foreign currency and is exposed to foreign currency
risk through exchange rate fluctua�ons. Foreign currency risk arises from future commercial transac�ons and
recognised financial assets and financial liabili�es in a currency other than the Group’s func�onal currency. The
risk is measured using sensi�vity analysis and cash flow forecas�ng.
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.
Price Risk
(ii)
Presently, the Group is not directly exposed to commodity price risk as it is in the explora�on phase. The Group
is indirectly exposed to price movements for commodi�es such as gold, copper and silver as these may affect
the Group’s ability to access capital markets.
Interest Rate Risk
(iii)
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.
Credit Risk
(iv)
Credit risk refers to the risk that a counterparty will default on its contractual obliga�ons, resul�ng in financial
loss to the Group. The maximum exposure to credit risk at the repor�ng 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 posi�on and notes to the financial statements.
Liquidity Risk
(v)
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 con�nuously
monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabili�es.
53
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
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 2021, 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 $114,575 lower/higher (2020 – change
of 100 bps: $20,125 lower/higher) as a result of lower interest income. The Group's exposure to interest rate
risks and the effec�ve interest rates of financial assets and financial liabili�es, both recognised and unrecognised
at the balance date, are as follows:
Floa�ng
Interest Rate
$
Fixed Interest Rate Maturing in:
1 - 5
Years
$
<5 Years
$
>1 Year
$
Non-
Interest
Bearing
Total
Carrying
Amount
$
$
-
11,451,486
-
-
-
-
60,534
-
11,451,486 60,534
-
-
-
-
-
- 1,445,474
362,118
-
60,000
-
24,315
- 1,891,907
-
12,896,960
362,118
60,000
84,849
13,403,927
-
-
-
-
- 1,230,961
1,230,961
-
-
-
60,820
60,820
- 45,531
- 45,531
-
-
-
-
- 1,291,781
45,531
1,337,312
Financial Instrument
2021
Financial Assets
Cash and Cash Equivalents
Trade & Other Receivables
Investments
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and
Accruals
Lease Liabili�es
Total Financial Liabili�es
Weighted average effective interest rate is 0.31%
2020
Financial Assets
Cash and Cash Equivalents
Trade & Other Receivables
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and
Accruals
Lease Liabili�es
Total Financial Liabili�es
1,992,492
- -
- - -
- 20,000
20,000
1,992,492
- 916,059
- 188,932
- - 65,462
1,170,453
-
-
2,908,551
188,932
85,462
3,182,945
- - -
- 448,491
448,491
- - -
- 44,309
44,309
- 52,922
52,922
-
46,719
46,719
-
-
-
492,800
99,641
592,441
54
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
NET FAIR VALUES
All financial assets and liabili�es have been recognised at the balance date at amounts approxima�ng their
carrying value.
CREDIT RISK EXPOSURES
The Group has no significant concentra�ons of credit risk. The maximum exposure to credit risk at balance date
is the carrying amount (net of provision for doub�ul 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 opera�ng segments to be iden�fied based on internal reports provided to the Board in order
to allocate resources to the segments and assess performance. Informa�on reported to the Board is based on
explora�on in the principal loca�ons of the Group’s projects, Australia and Colombia. The revenues and profit
generated by each of the Group’s opera�ng segments, assets and liabili�es are summarised as follows:
Australia
2021
$
Colombia
2020
$
2021
$
2020
$
Elimina�on
2021
$
2020
$
Total
2021
$
2020
$
Segment
Revenues
Segment
Opera�ng
(Losses)
Segment
Assets
Segment
Liabili�es
1,033,786
667,138
6
154
(518,164)
(375,386)
515,628
291,906
(5,055,395)
(3,073,688)
16,413
(58,491)
-
-
(5,038,982)
(3,132,179)
38,009,998
14,974,840
10,860
9,802
(19,356,976)
(6,504,576)
18,663,882
8,480,068
2,720,462
1,818,142
1,982
4,319
(1,040,100)
(955,202)
1,682,344
867,259
5. REVENUE
From Con�nuing Opera�ons
Sorby Hills Project Revenue
Interest
Other Income
6. EXPENSES
Loss Before Income Tax Includes the Following Expenses:
Deprecia�on of Plant and Equipment
Deprecia�on of ROU Asset
Explora�on and Evalua�on Expenditure
Gain of sale of subsidiary
55
Consolidated
2021
$
122,435
21,598
371,595
515,628
2020
$
123,732
33,811
134,363
291,906
Consolidated
2021
$
11,908
53,598
3,822,870
(36,289)
2020
$
8,552
9,019
2,124,010
-
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
7.
INCOME TAX
Income Tax Expense/(Benefit)
Current Tax
Deferred Tax
Adjustments for Current Tax of Prior Years
Numerical Reconcilia�on of Income Tax
Expense to Prima Facie Tax Payable
Loss from Con�nuing Opera�ons Before
Income Tax Expense
Prima Facie Tax Benefit at the Australian Tax
Rate of 26% (2020: 27.5%)
Tax Effect of Amounts Which are not
Deduc�ble (Taxable) in Calcula�ng 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 Deduc�ons
Write off Acquired Tenement Costs over 15
years
Accruals and Provisions for Employee
En�tlements
Carry Forward Tax Losses
Deferred Tax Liabili�es Prepayments
Total Unrecognised Tempory Differences
Deferred Tax Liabili�es
Beginning Explora�on and Evalua�on on
Acquisi�on
Reduc�on of Deferred Tax Liability Due to
Impairment
Deferred Tax Liability - Explora�on and
Evalua�on Assets
Consolidated
2021
$
2020
$
-
-
-
-
-
-
-
-
(5,038,982)
(3,132,179)
(1,310,135)
(861,349)
30,809
(1,279,326)
53,294
(808,055)
(140,932)
1,279,326
948,987
-
-
267,894
130,108
1,395,275
1,686,596
58,016
27,008
6,319,796
8,040,981
4,927,701
6,771,413
-
8,040,981
(216 )
6,771,197
178,913
221,008
(9,760)
(42,095)
169,153 178,913
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 deduc�ble temporary differences and tax losses can be u�lised.
56
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
8. CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Cash at Bank
Cash and Cash Equivalents as Shown in the Consolidated
Statement of Financial Posi�on and the Consolidated Statement
of Cash Flows
9. CURRENT ASSETS - OTHER
Other Receivables
Prepayments
Consolidated
2021
$
12,896,960
2020
$
2,908,551
12,896,960
2,908,551
Consolidated
2021
$
362,118
12,778
374,896
2020
$
188,932
17,521
206,453
The above receivables are within ini�al trade terms and therefore have not been impaired.
10. NON-CURRENT ASSETS – EXPLORATION AND EVALUATION ASSETS
Balance at Beginning of the Year
Addi�ons/(disposal)
Reduc�on of Deferred Tax Liability
Balance at the End of the Year
11. NON-CURRENT ASSETS – OTHER
Bonds and Security Deposits
VAT Receivable
Consolidated
2021
$
5,170,320
-
(9,760)
2020
$
5,210,586
1,829
(42,095)
5,160,560
5,170,320
Consolidated
2021
$
84,849
-
84,849
2020
$
85,285
177
85,462
Bonds and security deposits of $84,849 (2020: $85,285), are in rela�on to a credit card facility and office lease
obliga�ons.
57
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
12. NON-CURRENT ASSETS - PLANT AND EQUIPMENT
Plant and Equipment
Cost
Accumulated Deprecia�on
Net Carrying Amount
Plant and Equipment - Movement
Opening Net Book Amount
Addi�ons
Deprecia�on Charge
Foreign Exchange Transla�on
Closing Net Carrying Amount
13. RIGHT OF USE ASSETS
ROU Asset - Building Lease
Building Lease at cost
Accumulated Deprecia�on
Net Carrying Amount
ROU Asset - Movement
Opening Net Book Amount
Deprecia�on Charge
Adjustments on leasing cost
Closing Net Carrying Amount
Amounts recognised in the Profit and Loss
Deprecia�on Expense on Right of Use Asset
Interest Paid on lease liabili�es
Consolidated
2021
$
2020
$
87,288
(44,908)
42,380
132,929
(122,853)
10,076
10,076
44,212
(11,908)
-
42,380
19,238
15,090
(8,552)
(15,700)
10,076
Consolidated
2021
$
2020
$
106,854
(62,617)
44,237
99,206
(53,598)
(1,371)
44,237
108,225
(9,019)
99,206
108,225
(9,019)
-
99,206
(53,598)
(2,850)
(9,019)
(681)
In the prior year, the Group entered into a lease of the premises at Level 1, 105 St George’s Terrace, Perth.
The es�mated remaining life is 10 months. Discounted cashflows were calculated using the Group’s
incremental borrowing rate of 3.5%.
14 LIABILITIES - TRADE AND OTHER PAYABLES
Trade Payables
Other Payables and Accruals
Consolidated
2021
$
1,230,961
60,820
1,291,781
2020
$
448,491
44,309
492,800
The above payables are within ini�al trade terms and therefore are not past due.
58
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
15. PROVISIONS
Current
Provision for Annual Leave
Provision for Long Service Leave
16. LEASE LIABILITIES
Maturity Analysis
Less than 1 year
Greater than 1 year
Consolidated
2021
$
127,409
48,470
175,879
2020
$
61,830
34,075
95,905
Consolidated
2021
$
2020
$
45,531
-
52,922
46,719
The Group has a lease for its main office premise at Level 1, 105 St. Georges Terrace Perth, which has been
included in the Right-of-use asset (Note 13) . The remaining lease is payable within 12 months.
17. NON-CURRENT LIABILITIES – DEFERRED TAX LIABILITIES
Deferred Tax Liabili�es Comprise Temporary Differences
A�ributable to:
Beginning Explora�on and Evalua�on on Acquisi�on
Movement as a Result of Change in Tax Rate from 27.5% to 26%
Deferred Tax Liability
Consolidated
2021
$
2020
$
178,913
(9,760)
169,153
221,008
(42,095)
178,913
59
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
18. CONTRIBUTED EQUITY
SHARE CAPITAL
Ordinary Shares Fully Paid
Total Contributed Equity
MOVEMENTS IN ORDINARY SHARE CAPITAL
Beginning of the Financial Year
Issued during the year:
09 Sep 2019 Placement at $0.008
02 Sep 2020 Reclassifica�on of converted
Performance Rights
10 Sep 2020 Conversion of Op�ons @$.015
24 Sep 2020 Placement @ $0.018
09 Oct 2020 Placement @ $0.018
20 Oct 2020 Exercise of Op�ons @ $0.015
20 Oct 2020 Cashless issue
28 Oct 2020 Exercise of Op�ons @ $0.015
28 Oct 2020 Cashless issue
28 Oct 2020 Exercise of Op�ons @ $0.015
03 Nov 2020 Exercise of Op�ons @ $0.015
11 Nov 2020 Exercise of Op�ons @ $0.015
16 Nov 2020 Exercise of Op�ons @ $0.015
16 Nov 2020 Cashless issue
19 Nov 2020 Exercise of Op�ons @ $0.015
24 Nov 2020 Exercise of Op�ons @ $0.015
24 Dec 2020 Share consolida�on adjustments
(25 for 1)
20 Jan 2021 Shares issued in lieu of director
fees at $0.398
07 Apr 2021 Shares issued in lieu of director
fees at $0.450
Less Transac�on costs
2021
2020
Shares
152,307,006
152,307,006
$
Shares
$
47,698,398 2,888,104,604
2,980,318
47,698,398 2,888,104,604 32,980,318
2021
2020
Shares
2,888,104,604
$
Shares
32,980,318 2,313,104,604
$
28,705,740
-
-
575,000,000
4,600,000
19,000,000
115,200
69,210
555,555,920
13,333,322
1,941,729
1,446,034
4,013,333
3,085,460
250,000
3,798,420
30,899,003
96,746,862
499,602
127,797,511
57,947,810
(3,652,308,717)
1,038
10,000,007
240,000
29,126
28,578
60,200
61,864
3,750
56,976
463,485
1,451,203
9,989
1,916,963
869,217
-
71,278
28,333
55,625
25,000
-
152,307,006
(642,849)
-
47,698,398 2,888,104,604
(325,422)
32,980,318
ORDINARY SHARES
Ordinary shares en�tle the holder to par�cipate in dividends and the proceeds on winding up of the Parent
en�ty propor�onate to the number of and amounts paid for shares held. On a show of hands every holder of
ordinary shares present at a mee�ng in person or by proxy is en�tled to one vote and upon a poll each share is
en�tled to one vote.
CAPITAL RISK MANAGEMENT
Safeguarding its ability to con�nue as a going concern is the Group’s objec�ve when it comes to managing capital
in order to provide benefits to both shareholders and stakeholders and maintain an op�mal capital structure to
reduce cost of capital. When an opportunity to invest in, or explore, a project is seen as value adding rela�ve to
the share price at the �me of investment, the Group will seek to raise capital if required.
60
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
19. DIVIDENDS
No recommenda�on for payment of dividends or dividend payments were made during the report period.
20. RESERVES
Share/op�on reserve is used to recognise the fair value of shares and op�ons issued.
Share/Op�on Reserve
Foreign Currency Transla�on Reserve
SHARE/OPTION RESERVE
Balance at Beginning of Year
Reclassifica�on of Performance Rights upon conversion to ordinary
shares
Issue of Op�ons / Performance Rights
Balance at End of Year
Details of movement in share op�ons (Post-consolida�on)
Consolidated
2021
$
1,623,811
(333,758)
1,290,053
2020
$
1,653,328
(52,906)
1,600,422
Consolidated
2021
$
1,653,328
2020
$
1,523,902
(115,200)
85,683
1,623,811
-
129,426
1,653,328
2021
2020
Outstanding at beginning of the year
15,510,879
No of share
Op�ons
Weighted
Average
Exercise Price
0.325
No of share
Op�ons
18,090,879
Weighted
Average
Exercise Price
0.378
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the end of the year
-
-
(13,908,555)
(1,202,324)
400,000
-
-
0.375
0.375
0.500
-
-
-
(2,580,000)
15,510,879
-
-
-
0.379
0.325
Details of movement in performance rights (Post-consolida�on)
Balance at Beginning of Year
Granted during the year
Forfeited during the year
Converted during the year
Expired during the year
Balance at End of Year
2021
Number of
Performance Rights
2,500,000
280,000
-
(760,000)
-
2,020,000
2020
Number of
Performance Rights
-
2,500,000
-
-
-
2,500,000
61
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOREIGN CURRENCY TRANSLATION RESERVE
Foreign currency transla�on reserve is used to recognise exchange differences arising from the transla�on
of financial statements of foreign opera�ons that do not use Australian dollars as their func�onal currency.
Balance at Beginning of Year
Exchange Differences Arising on Transla�on of Foreign Opera�ons
Balance at End of Year
21. PARENT ENTITY INFORMATION
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabili�es
Total Non-Current Liabili�es
Total Liabili�es
Equity
Issued Capital
Share Based Payments Reserve
Accumulated Losses
Total Equity
Results of The Parent En�ty
Loss for the Year
Other Comprehensive Income
Total Comprehensive Loss for the Year
CAPITAL AND CONTINGENT LIABILITIES
Consolidated
2021
$
(52,906)
(280,852)
2020
$
(48,638)
(4,268)
(333,758)
(52,906)
Parent
2021
$
11,981,411
10,798,170
22,779,581
2020
$
2,200,965
6,197,729
8,398,694
2,008,773
-
2,008,773
1,613,757
-
1,613,757
47,698,398
1,623,811
(28,551,401)
20,770,808
32,980,318
1,653,328
(27,848,709
6,784,937
(702,692)
-
(702,692)
(6,211,589)
-
(6,211,589)
The parent en�ty had no capital or con�ngent liabili�es as at 30 June 2021 (2020: Nil).
SIGNIFICANT ACCOUNTING POLICIES
The accoun�ng policies of the parent en�ty 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 en�ty.
62
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
22. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabili�es and results of the following wholly
owned subsidiaries in accordance with the accoun�ng policy described in Note 1b(i):
Subsidiary
Incorporated
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 Explora�on SAS*
Pacifico Holdings SAS
Australia
Australia
Australia
Panama
Colombia
Colombia
Colombia
Ownership
2020
100%
100%
100%
100%
100%
100%
100%
2021
100%
100%
100%
100%
100%
0%
100%
*The Company entered into a Share and Asset Sale Agreement with Quimbaya Gold Inc. on 10 November
2020 to dispose of a Colombian subsidiary being Golden Pacifico Explora�on SAS which held interests in
various minor explora�on tenements in Colombia. The considera�on received was a total of $225,000,
which consisted of $165,000 in cash and $60,000 in shares (1,120,000 Combia Gold Inc shares valued at
Canadian $0.05 at exchange rate of CAN/AUD of 0.9333).
23. REMUNERATION OF AUDITORS
During the period the following fees were paid, or payable, for services provided by the auditors of the Group.
Audit Services
Stantons Audit and Review of Financial Reports
Total Remunera�on for Audit Services
Non-Audit Services
Technical Valua�on - Performance Rights
Consolidated
2021
$
2020
$
53,141
53,141
40,378
40,378
-
750
63
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
24. COMMITMENTS AND CONTINGENCIES
The Group plans to conduct explora�on work on its tenements to meet obliga�ons and retain rights of tenure.
If required, the Group can reduce these expenditure obliga�ons by establishing joint venture agreements,
applica�ons for expenditure exemp�ons, or selec�ve relinquishment of explora�on tenements. Due to the
nature of the Group’s opera�ons in exploring and evalua�ng areas of interest, it is difficult to accurately forecast
future expenditure. The annual commitment across the Group for the next year is $2,222,694 (2020: $230,094).
Explora�on Commitments
Within One Year
Later than One Year But Not Later Than Five Years
Over Five Years
Consolidated
2021
$
2,222,694
2,124,654
1,271,286
5,618,634
2020
$
230,094
920,375
-
1,150,469
There are no material con�ngent assets of the Group at balance date (2020: Nil). In 2019 the acquisi�on 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 Con�ngent Liability, this is s�ll in existence in 2021.
25. INTERESTS IN JOINT OPERATIONS
The Group recognises its share of jointly held assets, liabili�es, revenues and expenses of joint opera�ons. These
have been incorporated into the financial statements under the appropriate classifica�ons. Informa�on rela�ng
to joint opera�ons that are material to the Group are set out below:
Borroloola West Project (Boab 51%). Net assets carried as at 30 June 2021 are $1,024,672 (2020:
$982,532).
Mt Jukes Project (Boab 14.8%). Net assets carried as at 30 June 2021 are nil (2020: Nil).
Sorby Hills Project (Boab 75%). Net assets carried as at 30 June 2021 are $8,864,418 (2020: $4,187,787).
26. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
On 21 July 2021, Boab announced that it had signed a Binding Agreement with Todd River Metals Pty Ltd to
acquire 100% of the Manbarrum Project including associated mining leases, mining lease applica�ons,
explora�on licences, and mining informa�on (“Sale Assets”).
Considera�on for the purchase of the Sales Assets comprises:
a) The issue and allotment by Boab to Todd River (or its nominee) of A$500,000 of fully paid ordinary
shares (“Considera�on Shares”) in the Company upon Comple�on of the transac�on at an issue price
of A$0.4214 per share (being equal to the 30 day VWAP prior to the execu�on of the Binding
Agreement);
b) The Considera�on Shares will be issued out of the Company’s exis�ng capacity in accordance with ASX
Lis�ng Rule 7.1 and will be subject to a voluntary escrow period of 12 months; and
64
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
26. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE (CONTINUED)
c) Net Smelter Return (NSR) Royalty of 1.25% payable on future revenue generated from the sale of
minerals extracted from the Manbarrum Project. The royalty will be secured by a mining mortgage over
the Manbarrum Project tenements that may be subordinated to poten�al project financiers provided
certain condi�ons are met. Boab has retained the right to buy-back the royalty at market value subject
to the comple�on of a Pre-Feasibility Study on the Manbarrum Project.
On 31 August 2021, the Company announced that all condi�ons precedent had been met and that the
Manbarrum aquisi�on was now complete. The Company has se�led the considera�on for the purchase being
A$500,000 in the form of 1,186,521 fully paid ordinary shares (“Considera�on Shares”). The Considera�on Shares
have been issued out of the Company’s exis�ng capacity in accordance with ASX Lis�ng Rule 7.1 and are subject
to a voluntary escrow period of 12 months.
27. CASH FLOW RECONCILIATION
RECONCILIATION OF NET LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Net Loss for the Year
Non-Cash Items
Deprecia�on of Non-Current and ROU Assets
Interest on lease liabili�es
Share Based Payments - Director/Staff Op�ons
Sale of Investments (Non-Cash)
Sale of Investment (considera�on received included in inves�ng ac�vi�es
Foreign Exchange (Gain)/Loss
Change in Opera�ng Assets and Liabili�es
(Increase)/Decrease in Trade and Other Receivables
Decrease/(Increase) in Prepayments
Increase/(Decrease) in Opera�ng, Trade and Other Payables
Increase/(Decrease) in Provisions
Net Cash Ou�low from Opera�ng Ac�vi�es
Consolidated
2021
$
(5,038,982)
2020
$
(3,132,179)
65,506
2,850
186,114
(96,289)
(192,175)
-
8,552
-
129,426
-
-
-
(173,186)
4,743
607,928
79,974
(4,553,517)
197,472
(5,088)
(477,827)
12,393
(3,267,251)
65
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
28. LOSS PER SHARE (POST CONSOLIDATION)
RECONCILIATION OF EARNINGS USED IN CALCULATING LOSS PER SHARE
Loss a�ributable to the ordinary equity holders of the Parent En�ty used in
calcula�ng basic and diluted loss per share
WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Consolidated
2021
$
2020
$
(5,038,982)
(3,132,179)
Number of Shares
2021
2020
Weighted average number of ordinary shares used as the denominator in
calcula�ng basic and diluted loss per share
141,759,237
111,366,716
29. SHARE BASED PAYMENTS
ORDINARY SHARES (Post-consolida�on)
Share Based Payments
Issued to Directors
Issued to Key Management Personnel
Consolidated
2021
$
2020
$
176,774
129,426
9,340
186,114
-
129,426
During the year 201,244 shares were issued to Directors or consultants as part of the cashless exercise of op�ons
(2020: Nil). There were 126,903 ordinary shares issued to Directors in lieu of cash payments (2020: Nil).
OPTIONS OVER ORDINARY SHARES (Post-consolida�on)
No Op�ons were issued in 2021 (2020: Nil).
Op�ons on issue at the end of the period had the following expiry dates and exercise prices:
Expiry Date
16/10/2021
Status
Unlisted
Exercise Price
$0.50
Op�ons
400,000
Op�ons on issue at the end of the period had a weighted average exercise price of $0.50 cents and a weighted
average expiry period of 0.29 years.
66
ANNUAL REPORT 2021BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
29. SHARE BASED PAYMENTS (CONTINUED)
Performance Rights (Post-consolida�on)
A total of 280,000 Performance Rights (2020: 2,740,000) were granted during the year to Directors and Key
Management Personnel with variable ves�ng condi�ons based on the achievement of performance milestones.
During the year, a total of 760,000 Class "A" Performance Rights were converted to ordinary shares as a result of
perfomance hurdles being met. Performance Rights on issue at the end of the period had the following expiry
dates and exercise prices:
Details
Class "B" Performance Shares
Class "C" Performance Shares
Class "D" Performance Shares
Performance
Rights
900,000
800,000
320,000
2,020,000
Exercise Price
Grant Date
Expiry Date
Nil
Nil
Nil
29/11/2019
29/11/2019
Various
30/06/2022
30/06/2022
6/03/2025
30. RELATED PARTY TRANSACTIONS
There were no related party transac�ons to report for the period.
KEY MANAGEMENT PERSONNEL COMPENSATION
Short Term Employee Benefit
Share Based Payments
Post-Employment Benefit
Consolidated
2021
$
699,415
166,600
54,436
920,451
2020
$
360,222
129,424
33,264
522,910
67
ANNUAL REPORT 2021BOAB METALS LIMITED
DIRECTORS’ DECLARATION
69
ANNUAL REPORT 2021BOAB METALS LIMITED The Directors of the Group declare that: 1. The financial statements accompanying the notes are in accordance with the Corpora�ons Act 2001, and: a. Comply with Accoun�ng Standards, the Corpora�ons Act 2001 and other mandatory professional repor�ng requirements; b. Give a true and fair view of the financial posi�on as at 30 June 2021 and of the performance for the report period for the consolidated en�ty. 2. 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. 3. In the Directors’ opinion, the financial statements and notes are prepared in compliance with IFRS and interpreta�ons issued by the Interna�onal Accoun�ng Standards Board. 4. The remunera�on disclosures as set out on pages 26 to 31 of the Directors’ Report comply with Accoun�ng Standards AASB 124 Related Party Disclosures and sec�on 300A of the Corpora�ons Act 2001. 5. The Directors have been given the declara�ons required under sec�on 295A of the Corpora�ons Act 2001. This declara�on is made in accordance with a resolu�on of the Board of Directors and is signed on behalf of the Directors. Gary Comb Chairman 21 September 2021 INDEPENDENT AUDITOR’S REPORT
71
ANNUAL REPORT 2021BOAB METALS LIMITED Liability limited by a scheme approved under Professional Standards Legislation PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons Is a member of the Russell Bedford International network of firms INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BOAB METALS LIMITED Report on the Audit of the Financial Report Opinion We have audited the consolidated financial report of Boab Metals Limited (“the Company”) and its subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters We have determined the matters described below to be key audit matters to be communicated in our report. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. This matter was addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. INDEPENDENT AUDITOR’S REPORT
72
ANNUAL REPORT 2021BOAB METALS LIMITED Key Audit Matters How the matter was addressed in the audit Carrying Value of Exploration and Evaluation Assets As at 30 June 2021, the carrying value of the Group’s Exploration and Evaluation Assets totalled $5,160,560, as disclosed in Note 10. The carrying value of the Exploration and Evaluation Assets is a key audit matter due to: • The significance of the total balance (28% of total assets); • The necessity to assess management’s application of the requirements of the accounting standard Exploration for and Evaluation of Mineral Resources (“AASB 6”), in light of any indicators of impairment that may be present; and • The assessment of significant judgements made by management in relation to the Exploration and Evaluation Assets. Inter alia, our audit procedures included the following: i. Assessing the Group’s right to tenure over exploration assets by corroborating the ownership of the relevant licences for mineral resources to government registries and relevant third-party documentation; ii. Examined the directors’ assessment of the carrying value of the exploration and evaluation expenditure, ensuring the veracity of the data presented and that management has considered the effect of potential impairment indicators, commodity prices and the stage of the Group’s projects against AASB 6; iii. Evaluation of Group documents for consistency with the intentions for the continuation of exploration and evaluation activities in certain areas of interest and corroborated with enquiries of management. Inter alia, the documents we evaluated included: ▪ Minutes of meetings of the board and management; ▪ Announcements made by the Group to the Australian Securities Exchange; and ▪ Cash flow forecasts; and iv. Assessed the financial statements to ensure appropriate disclosures are made. Accounting for Joint Operations Refer to note 1(b)(iii) The Group has a joint arrangement with a 3rd party over the Sorby Hills Project. Under the arrangement, the Group owns 75% of the Project. Boab Metals Limited, through its wholly owned subsidiary, Sorby Hills Pty Ltd, manages the Project’s activities. Management have determined that the arrangement constitutes a joint operation and therefore, the Group has rights to the assets, and obligations for the liabilities of the joint arrangement. On consolidation, the Group accounts for its proportionate share of the assets and liabilities of the project. Inter alia, our audit procedures included the following: i. Assessing the management’s assessment and judgement of concluding that the arrangement is a joint operation and the accounting treatment relative to the relevant account standards and ensuring the correct treatment is adopted; ii. Reviewing the consolidation worksheets to ensure that Sorby Hills Project has been accounted for as a joint operation and therefore, the Group has accounted for their share of the assets and liabilities (proportionate basis) of the Sorby Hills Project; INDEPENDENT AUDITOR’S REPORT
73
ANNUAL REPORT 2021BOAB METALS LIMITED Accounting for the Sorby Hills Project is a key audit matter due to: • The significance of the total assets and liabilities of the joint venture; and • The nature and complexities involved in accounting as well as the judgement in the determination of whether the Group has an interest in the net assets or rights to the assets and obligations for liabilities and therefore, the accounting treatment in accordance with the relevant accounting standards. Under AASB 11 Joint Arrangements (“AASB 11”), if a party has the rights to the assets and the obligations for the liabilities of a joint arrangement, then the joint arrangement is considered to be a “joint operation” and those assets and liabilities should be recognised by the parties to the joint arrangement. iii. We have tested the controls over expenditure in the joint operation and appropriate substantive audit procedures in relation to assets, liabilities and expenses of the joint operation; and iv. Assessed the financial statements to ensure adequacy of the disclosures made. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance INDEPENDENT AUDITOR’S REPORT
74
ANNUAL REPORT 2021BOAB METALS LIMITED with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit. The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the consolidated financial report of the current period and are therefore key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. INDEPENDENT AUDITOR’S REPORT
75
ANNUAL REPORT 2021BOAB METALS LIMITED Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 21 to 26 of the directors’ report for the year ended 30 June 2021. In our opinion, the Remuneration Report of Boab Metals Limited for the year ended 30 June 2021 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 21 September 2021 SHAREHOLDER INFORMATION
Addi�onal informa�on is set out below in accordance with the lis�ng rules of the Australian Stock Exchange Limited
and is current as at 10 September 2021.
1.
STATEMENT OF ISSUED CAPITAL
Distribu�on of holdings for Ordinary Shares on Issue ‘BML’:
Number of Holders by Holding Size
Holders
Total Units
% of Issued
Capital
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
148
1,300
576
1,093
206
3,323
42,673
0.03%
3,532,596 2.30%
2.94%
23.28%
71.46%
100.00%
4,508,036
35,725,846
109,684,376
153,493,527
Ordinary shares carry one vote per share without restric�on. The number of fully paid ordinary shareholdings
held in less than marketable parcels is 342 (based on a share price of $0.38).
Distribu�on of holdings for Unlisted Op�on Holders Ex Price $0.050, Exp 16 October 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
1
0
0
0
0
400,000
400,000 *
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
*Unlisted Op�ons do not carry any vo�ng rights un�l they are exercised and converted into Ordinary Fully Paid
shares
Distribu�on of holdings for Performance Rights on issue, Performance Rights have various expiry dates and ves�ng
condi�ons. Each Performance Right vests into one Ordinary Fully Paid Share on conversion.
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
5
5
0
0
0
0
2,020,000
2,020,000*
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
*Performance Shares do not carry any vo�ng rights un�l they vest and are converted into Ordinary Fully Paid shares.
900,000 class “B” Performance Rights are on issue and they are held by 5 holders with Mr Simon Noon holding 53% of this class.
800,000 class “C” Performance Rights are on issue and they are held by 4 holders with Mr Simon Noon holding 60% of this class.
320,000 class “D” Performance Rights are on issue and they are held by 2 holders with Bluedale Pty Ltd and Mr David English
holding these securi�es equally.
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ANNUAL REPORT 2021BOAB METALS LIMITED
SHAREHOLDER INFORMATION
On-Market Buy back
There is no current on-market buy back.
Restricted Securi�es
The Company has issued 1,186,521 ordinary shares to Todd River Metals Pty Ltd, these shares are under a
voluntary escrow agreement and are in escrow un�l 30 August 2022.
SUBSTANTIAL SHAREHOLDERS
Holder**
VILLIERS QUEENSLAND PL*
ZERO NOMINEES PTY LTD
* Denotes merged holders.
** The holders detailed above held more than 5% of the Issued Capital of the Company as at the date of this additional Shareholder
Number
16,194,661
12,833,334
%
10.55
8.36
information.
2.
QUOTATION
Fully paid ordinary shares are quoted on the Australian Stock Exchange Limited. There is a total of 153,493,527
shares on issue. The top twenty shareholders, as listed below, hold 45.62% of these shares:
Position
1
2
3
4
5
5
6
7
8
9
10
11
12
13
14
15
16
17
17
18
19
20
Holder Name
VILLIERS QUEENSLAND PL*
ZERO NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
BRENT CONNOLLY*
AIGLE ROYAL SUPER FUND PL*
CRAIG CHAPMAN*
EQUITY TRUSTEES LIMITED
MR GRAHAM CHARLES POWELL
MATORICZ SUPER PTY LTD
SIMON NOON*
LADAKH PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MIEI RAGAZZI PTY LTD
SURPION PTY LTD
RICHARD MONTI*
TODD RIVER METALS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
JACANA GLEN PTY LTD
MR WARWICK DYSON
BOLTON & LING SUPER PTY LTD
TRAVIS CLARK*
BOXWOOD PTY LTD*
Total
Total Issued Capital - Ordinary Shares
Holding
16,194,661
12,833,334
5,394,747
4,481,740
3,400,000
3,400,000
3,261,659
2,500,000
2,000,000
1,817,119
1,773,182
1,714,556
1,520,000
1,500,000
1,324,982
1,186,521
1,122,798
1,000,000
1,000,000
937,888
%
10.55%
8.36%
3.51%
2.92%
2.22%
2.22%
2.12%
1.63%
1.30%
1.18%
1.16%
1.12%
0.99%
0.98%
0.86%
0.77%
0.73%
0.65%
0.65%
0.61%
860,000
799,563
70,022,750
153,493,527
0.56%
0.52%
45.62%
100.00%
*Denotes merged holders.
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ANNUAL REPORT 2021BOAB METALS LIMITED
SHAREHOLDER INFORMATION
3.
UNQUOTED SECURITIES
Holders with more than 20% of any unlisted class of security, other than those acquired under an employee
incen�ve scheme, are listed below:
Holder
Quintana Resources Holdings LP
Total
Total holders
50c Op�ons Expiring
16-Oct-21
400,000
400,000
1
4.
SCHEDULE OF INTERESTS IN MINING TENEMENTS HELD AT BALANCE SHEET DATE
Farm-In Agreements/
Projects/Tenements
Sorby Hills Project
M80/196
M80/197
M80/285
M80/286
M80/287
E80/5317
Borroloola West Project
EL31354
EL26938
EL26939
EL28508
EL28658
EL30305
MLN624
Mount Jukes Project
EL51/2008
EL12/2009
Urrao Project
2791
Loca�on
Held at Start of
Quarter
Held at End of
Quarter
75%
75%
75%
75%
75%
100%
100%
51%
51%
51%
51%
51%
51%
13.74%
13.74%
100%
75%
75%
75%
75%
75%
100%
100%
51%
51%
51%
51%
51%
51%
13.74%
13.74%
100%
WA,
Australia
NT,
Australia
TAS,
Australia
Colombia
79
ANNUAL REPORT 2021BOAB METALS LIMITED
BOAB METALS LIMITED
LEVEL 1, 105 ST GEORGES TCE, PERTH WA 6000
TELEPHONE: +61 (0)8 6268 0449, WWW.BOABMETALS.COM