T
R
O
P
E
R
L
A
U
N
N
A
2
2
0
2
BOAB METALS LIMITED
4 Clive St, West Perth WA 6005
TEL: (08) 6268 0449
www.boabmetals.com
ABN 43 107 159 713
CORPORATE DIRECTORY
DIRECTORS
Gary Comb (Executive Director and Chairman)
Simon Noon (Managing Director & CEO)
Richard Monti (Non-Executive Director)
Andrew Parker (Non-Executive Director)
COMPANY SECRETARY
Jerry Monzu
REGISTERED OFFICE
4 Clive Street
WEST PERTH WA 6005
SHARE REGISTRY
Automic Group Pty Ltd
Level 5
191 St Georges Terrace
PERTH WA 6000
BANKERS
Australian and New Zealand Banking Group Limited
Level 1
1275 Hay Street
WEST PERTH WA 6005
AUDITORS
Stantons International Audit and Consulting Pty Ltd
40 Kings Park Road
WEST PERTH WA 6005
SECURITIES EXCHANGE LISTING
Boab Metals Limited shares are listed on the
Australian Securities Exchange (Home Branch - Perth)
ASX Code: BML
WEBSITE ADDRESS
www.boabmetals.com
TABLE OF CONTENTS
Chairman’s Report
Managing Director’s Report
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement Of Profit Or Loss & Other Comprehensive Income
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
2
3
5
16
29
30
31
32
33
34
70
71
76
FORWARD LOOKING STATEMENTS
This Annual Report may contain forward looking statements. Such statements are only predictions, based on certain assumptions and involve known
and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. Actual events or results may differ materially
from the events or results expected or implied in any forward-looking statement. The inclusion of such statements should not be regarded as a
representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are
likely to be fulfilled. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date
of this document (subject to securities exchange disclosure requirements). The information in this document does not consider the objectives, financial
situation or needs of any person. Nothing contained in this document constitutes investment, legal, tax, or other advice.
1
Annual Report for the Year Ended 30 June 2022 2
CHAIRMAN’S REPORT ________________________________________________________ 2 BOAB METALS LIMITED Dear Shareholders, On behalf of your Board of Directors, I am pleased to present the 2022 Annual Report and recap on the progress that Boab Metals Limited has made over the past financial year at our flagship Sorby Hills Lead-Silver Project and delivering on our objective to become a profitable low-cost producer and responsible economic contributor to the east Kimberley community. Over the year, the Company delivered on a range of key project execution milestones including an expanded Mineral Resource estimate, execution of a Port Access and Services Agreement with Cambridge Gulf Limited for Wyndham Port, execution of a Power Purchase Heads of Agreement with Horizon Power, updated Environmental Approvals to facilitate an Early Works program, and commencement of EPC Contract tenders. Our agreement with Horizon Power is particularly exciting as it lays the foundation for a power solution that will see Boab source the majority of Sorby Hills forecast electricity requirements from renewable energy generated by the Ord River Hydroelectric Plant. From a project funding perspective, Boab has continued to advance discussions with engaged financing parties including Australian Government debt funding organisations NAIF and EFA and a suite of leading commercial banks. During the year, the Company was pleased to welcome a select group of financiers on a site visit of the Project to demonstrate the progress that has been made to date and the potential value of Sorby Hills to the local stakeholders. In addition to progressing Sorby Hills, the Company has executed several strategic growth initiatives throughout the year. The acquisition of the Manbarrum Zinc-Silver-Lead Project, located 25m east of Sorby Hills, and the commencement of drilling at our highly prospective Eight Mile Creek Project, located immediately south of Sorby Hills, are two such initiatives that demonstrate high potential to generate long-term value for shareholders. Looking forward, our strategy over the coming 12 months is built around delivering a robust Definitive Feasibility Study underpinned by tendered capital and operating costs that will allow us to move efficiently and confidently towards securing project finance and commencing construction works at Sorby Hills. The Board is grateful for the support of all shareholders and would like to commend all staff on their hard work and dedication during the year. We look forward to an exciting year ahead. Gary Comb ChairmanBOAB METALS LIMITED MANAGING DIRECTOR’S REPORT
________________________________________________________
Throughout the 2022 financial year, the Boab team has focused on workstreams required to bring
about a Final Investment Decision on our 75% owned Sorby Hills Lead-Silver Project. Our team has
achieved key project execution milestones to ensure we remain on track to be in position, subject
to a Final Investment Decision, to commence major Project construction work in Q2 calendar year
2023 following the lifting of the wet season in the Kimberley region.
Highlights have included:
• A 78% increase in Measured Resources to 12.6Mt, further enhancing the geological
confidence in our Sorby Hills deposit.
• Completion of a comprehensive Metallurgical program that built up extensive previous
testwork and confirmed high metal recoveries and provide robust input for the final process
plant design criteria.
• Execution of a Port Access and Services Agreement with Cambridge Gulf Limited for
Wyndham Port securing a critical element of the path to market for the concentrates that
will be produced at Sorby Hills.
• Execution of a Power Purchase Heads of Agreement with Horizon Power that incorporates
renewable energy from the Ord River Hydroelectric Power Plant into a one-stop solution
that simultaneously provides secure power, positive environmental outcomes and
economic benefit to the Sorby Hills Project.
• Execution of a multi-stream approval strategy that has successfully derisked the Project
construction schedule by decoupling Early Works approvals from those required for the
commencement of Major Works.
• Completion of a tender for the process plant EPC with submissions received from a suite
of high-quality engineering firms providing real-time competitive pricing data and toward
final contract award.
• Receipt of strong offtake proposals from a host of international and domestic lead
concentrate smelters and traders, demonstrating the depth of market demand for our Sorby
Hills Lead-Silver concentrate.
With respect to project funding, we were delighted to host NAIF together with a number of
commercial mining banks on a site visit of the Sorby Hills Project giving them a unique first-hand
experience that we believe will provide potential lenders confidence in Boab’s ability to execute
the Project and demonstrate the positive impact the Project will have on the local community. We
look forward ramping up our engagement with financiers over the first half of the coming financial
year.
Outside of Sorby Hills, Boab completed the strategic acquisition of the Manbarrum Zinc-Silver-
Lead asset located 25km east of the Sorby Hills. The acquisition was both a logical step and an
exciting strategic opportunity for the Company to grow its Resource base and further establish
itself as a long-term mineral producer and economic contributor to the east Kimberley region.
Annual Report for the Year Ended 30 June 2022
3
3
Annual Report for the Year Ended 30 June 2022
MANAGING DIRECTOR’S REPORT
________________________________________________________
I’d like to take this opportunity to acknowledge all of our staff and their families for their continued
hard work. Against the backdrop of a volatile economic environment and unpredictable working
conditions, I am proud of the milestones the Company has achieved and the progress that has
been made. I would like to also extend my appreciation to my fellow Board members for their
invaluable guidance over the 2022 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
4
BOAB METALS LIMITED
4
BOAB METALS LIMITED
REVIEW OF OPERATIONS
________________________________________________________
OVERVIEW
During the Financial Year to 30 June 2022, Boab has continued to focus on 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. Sorby Hills is the largest undeveloped, near-surface Lead-
Silver-Zinc deposit in Australia.
Key activities undertaken during the period included:
Progressing the Sorby Hills Definitive Feasibility Study (“DFS”)
• Completion of the Phase V diamond and RC drilling campaign at Sorby Hills.
• Finalised Sorby Hills DFS metallurgical test work.
• Updated Mineral Resource Estimate for Sorby Hills.
Progressing Sorby Hills Project Execution Workstreams
• Execution of a Head of Agreement with Horizon Power with respect to a Power Purchase
Agreement.
• Execution of an Access and Service Agreement with Cambridge Gulf with respect to
Wyndham Port.
• Securing amendments to the Project’s existing environmental approvals to allow for an
increase in the permitted Development Area.
• Completion of the Tender of the Process Plant EPC Contract.
Progressing Sorby Hills Project Finance and Offtake
• Site visit undertaken by Northern Australia Infrastructure Facility (“NAIF”) and commercial
banks.
• Competitive tender for the Boab’s share of Lead-Silver Concentrate from Sorby Hills
commenced with strong offers being received from a suite of domestic and international
traders and smelters.
Progressing Growth opportunities
• Acquisition of the Manbarrum Zinc-Silver-Lead Project strategically located 25km east of
Sorby Hills.
• Maiden drilling of the highly prospective Eight-Mile Creek Project located immediately
south and along strike of the Sorby Hills Project.
Annual Report for the Year Ended 30 June 2022
5
5
Annual Report for the Year Ended 30 June 2022
REVIEW OF OPERATIONS
________________________________________________________
Completion of Phase V Diamond and RC Drilling Campaign
Boab’s Phase V drilling program was designed to expand the proposed production capacity at
Sorby Hills for the purposes of the DFS. At the conclusion of the program, 59 diamond drill holes
(5,284m) and 15 RC drill holes (888m) were completed across the deposit. The Phase V drilling
program proved successful, and the assay results confirmed extended and shallow mineralisation
on the margins of the current Sorby Hills open pit designs and at high Lead Silver grades within the
Beta Deposit. It is anticipated these results will have a positive impact on both the confidence and
size of the DFS mining inventory.
Selected results from the Phase V Program (ASX releases 25 August 2021, 28 September 2021 and
1 February 2022) include:
Omega Deposit
SHMD_066: 5m @ 6.77% Pb & 26g/t Ag from 100m;
SHMD_074: 5m @ 7.08% Pb & 91g/t Ag from 108m; and
SHMD_099: 5m @ 5.37% Pb & 16g/t Ag from 90m.
Beta Deposit
SHMD_088: 6m @ 5.37% Pb & 21g/t Ag from 50m;
SHMD_091: 12m @ 5.82% Pb & 24g/t Ag from 35m; and
SHMD_104: 6m @ 3.89% Pb & 13g/t Ag from 65m.
Alpha Deposit
SHDD_059: 4.5 m @ 2.39% Pb & 101g/t Ag from 31m.
Beta Deposit
SHMD_111: 26m @ 2.58% Pb & 25g/t Ag from 53m;
Incl. 2m @ 7.50%Pb & 58g/t Ag from 71m;
SHRC_123: 27m @ 3.47% Pb & 37g/t Ag from 34m;
Incl. 3m @ 7.04% Pb & 95g/t Ag from 35m;
5m @ 5.60% Pb & 44g/t Ag from 45m;
6m @ 4.50% Pb & 49g/t Ag from 55m;
SHRC_124: 17m @ 3.51% Pb & 46g/t Ag from 49m; and
Incl. 8m @ 6.93% Pb & 90g/t Ag from 57m.
Wildcat Prospect
SHMD116: 26m @ 1.39% Pb & 17g/t Ag from 14m;
Incl. 5m @ 2.12% Pb & 27g/t Ag from 15m; and
SHRC_129: 6m @ 5.37% Pb & 21g/t Ag from 12m.
6
BOAB METALS LIMITED
6
BOAB METALS LIMITED
REVIEW OF OPERATIONS
___________________________________________________
Figure 1 - Plan view of the Sorby Hill deposits showing drill hole locations, PFS proposed
pit outlines and Resource classification.
Sorby Hills DFS Metallurgical Test Work Results
The DFS Metallurgical Test Work Program was launched on the back of the successful Phase IV
drilling program with the primary objective of delivering robust results to underpin the Sorby Hills
DFS Process Plant design criteria.
Approximately 1,420kg from 399m of half core was recovered from 35 HQ diamond holes drilled
during the Phase IV and V programs and then combined and composited into Variability Samples,
Schedule Composites and Master Composites.
Annual Report for the Year Ended 30 June 2022
7
7
Annual Report for the Year Ended 30 June 2022
REVIEW OF OPERATIONS
________________________________________________________
Samples and Composites were utilised for a range of test work including Flotation, Comminution,
Mineralogy, Heavy Liquid Separation, Tailings Thickening, Concentrate Filtration and Concentrate
Analysis.
Flotation results (ASX release 19 November 2021) confirmed recoveries of:
• up to 95%Pb (Fresh Ore) and 90%Pb (Oxidised Ore); and
• up to 87%Ag (Fresh Ore) and 92%Ag (Oxidised Ore).
The DFS Metallurgical Test work Program builds upon a significant body of previous metallurgical
test work undertaken by Boab since acquiring the Sorby Hills Project in 2018 and test work by
others dating back to 1979.
Updated Mineral Resource Estimate for Sorby Hills
Boab’s Pre-Feasibility Study (“PFS”) confirmed Sorby Hills as a low-risk, high value project
underpinned by a large near-surface lead-silver-zinc deposit comprising a Mineral Resource of
44.1Mt at 3.3% Pb, 38 g/t Ag and 0.5% Zn (ASX release 2 June 2020), and Proved and Probable
Reserves of 13.6Mt at 3.6% Pb, and 40 g/t Ag (ASX release 25 August 2020).
On the back of the positive PFS results, Phase IV and Phase V drilling programs were designed to
primarily advance the Project towards DFS status. An interim Mineral Resource update
incorporating the results of the Phase IV drilling was released in April 2021 (ASX release 6 April
2021) and delivered 44.9Mt at 3.2% Pb, 0.5% Zn and 37g/t Ag.
The updated Mineral Resource Estimate (ASX release 17 December 2021) was undertaken by CSA
Global and upgraded the PFS Mineral Resource Estimate via the inclusion of results from both
Phase IV and Phase V drilling programs. Highlights of the estimate included:
• A 5.6Mt increase (+78%) in Measured Resources versus the Mineral Resource Estimate that
underpinned the PFS.
•
Inaugural 1.0Mt Indicated Resource reported for the Beta Deposit. It is anticipated that the
Beta Deposit will now form part of the Sorby Hills DFS Mining Inventory where previously it
had been excluded.
• Total Resources to 47.3Mt at 4.1% Pb Eq (3.1% Pb, 35g/t Ag) and 0.4% Zn containing
1.47Mt Pb, 53 Moz Ag and 0.21kt Zn representing a 14% increase in Measured and
Indicated Resources to the PFS Resource.
A comprehensive breakdown of the Mineral Resource by Resource classification and deposit is
detailed in Table 1 and Table 2.
8
BOAB METALS LIMITED
8
BOAB METALS LIMITED
REVIEW OF OPERATIONS
________________________________________________________
Table 1: Updated Sorby Hills Mineral Resource Estimate - Pb Domains only.
Grade
Contained Metal
Classification by Deposit Mt
Pb
%
Zn
%
Ag Pb Eq.
g/t %
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
Indicated
Inferred
Sub Total
Total Resource
Measured
Indicated
Inferred
Total
0.6
5.3% 1.0% 23
6.0%
0.6 5.3% 0.1% 23 6.0%
1.4
1.3
3.8% 0.3% 19
4.3%
3.4% 0.3% 21
4.0%
2.7 3.6% 0.3% 20 4.2%
Pb
kt
31
31
52
44
97
Zn
kt
Ag
Pb Eq.
koz
kt
6
6
4
4
8
427
427
859
862
35
35
60
52
1,720
112
8.5
5.8
2.9
3.3% 0.4% 37
4.3%
3.5% 0.4% 34
4.4%
2.7% 0.4% 26
3.4%
279
205
76
32
25
13
9,995
6,331
2,414
366
259
97
17.2 3.3% 0.4% 34 4.2%
566
71 18,948 730
2.8
2.1
4.1% 0.3% 75
6.2%
112
3.2% 0.5% 38
4.3%
68
16.2 2.5% 0.5% 27
3.2%
402
9
11
75
6,668
2,617
170
91
14,039
523
21.1 2.8% 0.4% 34 3.8%
590
96 24,090 799
0.7
0.8
2.6% 0.5% 41
3.8%
3.6% 1.2% 86
6.0%
1.5 3.1% 0.9% 64 4.9%
18
27
45
4
9
923
2,052
13
2,975
26
44
71
1.0
3.2
4.1% 0.2% 42
5.3%
42
3.4% 0.4% 43
4.6%
109
4.2 3.6% 0.4% 43 4.8%
151
2
14
17
1,382
54
4,474
148
5,856
202
12.6 3.5% 0.4% 43
4.7%
11.0 3.4% 0.4% 34
4.4%
23.6 2.7% 0.5% 31
3.6%
444
377
645
45
46
17,521
12,114
117
23,406
596
482
848
47.3 3.1% 0.4% 35 4.1% 1,465 207 53,042 1,925
Note: Tonnes and Grade are rounded. Reported at a 1.0% Pb Cut-Off.
Discrepancy in calculated Contained Metal is due to rounding.
See ASX release 17 December 2021 for Lead Equivalent calculation method.
Lead Equivalent calculation excludes Zinc.
Annual Report for the Year Ended 30 June 2022
9
9
Annual Report for the Year Ended 30 June 2022
REVIEW OF OPERATIONS
___________________________________________________
Table 2: Sorby Hills Mineral Resource Estimate - Alpha Deposit Zn Domains only.
Classification
by Deposit
Alpha
Indicated
Inferred
Sub Total
Mt
2.1
2.1
4.2
Pb
%
0.3
0.4
0.5
Zn
%
2.8
2.3
2.5
Ag
g/t
22
21
22
Pb
kt
6
8
Zn
kt
59
48
Ag
koz
1,485
1,418
15
107
2,971
Note: Tonnes and Grade are rounded. Reported at a 1.0% Pb Cut-Off
Discrepancy in calculated Contained Metal is due to rounding.
Note that high grade results from the RC portion of the Phase V drill program at Beta deposit were
not received in time to be incorporated into the updated Mineral resource Estimate. The results will
be included in future updates.
Heads of Agreement executed with Horizon Power to Supply Cleaner and Cheaper Power
to the Sorby Hills Project.
During the year, Boab entered into a Heads of Agreement with Horizon Power with respect to a
Power Purchase Agreement to supply electricity to Sorby Hills (ASX release 22 April 2022). The
proposed one-stop solution would simultaneously provide secure power, positive environmental
outcomes and economic benefit to the Sorby Hills Project.
Key Indicative Terms of the Heads of Agreement include:
• Delivery of firm power over a 10-year term with an option for Boab to extend;
• Cleaner, cheaper electricity sourced from Ord River hydroelectric plant to provide majority
of the energy demand of the Project; and
• On-site diesel plant to provide 100% back-up power.
Preliminary supply modelling indicates that the integrated hydro-diesel power solution will provide
material economic benefit to the Project versus the Build Own Operate “BOO” diesel power solution
contemplated in the Sorby Hills Pre-Feasibility Study.
Boab and Horizon Power continue to advance technical and commercial discussions with a view
to executing a formal Power Purchase Agreement prior to a Decision to Mine.
Port Access Agreement
During the period Boab announced that it had executed an agreement with Cambridge Gulf Limited
(“Cambridge Gulf”) with respect to access and stevedoring services at Wyndham Port, the port
through which concentrates produced at the Sorby Hills will be stored, loaded and shipped to
customers (ASX release 31 March 2022). The Agreement extends to April 2034, with an automatic
rollover each 12-month period thereafter.
10
BOAB METALS LIMITED
10
BOAB METALS LIMITED
11
REVIEW OF OPERATIONS ________________________________________________________ Annual Report for the Year Ended 30 June 2022 11 Obligations of either party under the agreement are subject to customary conditions precedent including the obtainment of any outstanding environmental approvals, consents, permits or other authorisations required by any government body, department or authority. The Company and Cambridge Gulf are working closely with each other and the relevant stakeholders to finalise these workstreams. Wyndham Port is located 150 km by existing sealed road from Sorby Hills and is the only deep-water port between Broome and Darwin. The facility is a vital link within Northern Australia’s primary and secondary industries’ supply chains. The Port is designed for the export of metal concentrates. Figure 2 - Location of the Sorby Hills Project relative to Wyndham Port and the Ord River Hydroelectric Plant Annual Report for the Year Ended 30 June 2022 REVIEW OF OPERATIONS
________________________________________________________
EPC Contract Tender
The Sorby Hills DFS is investigating an expanded process plant capacity at Sorby Hills versus the
1.5Mpta incorporated in the PFS. Tenders for the EPC Contract covering the upsized process plant
and non-process infrastructure were received from a range of experienced engineering firms (ASX
release 31 May 2022). The quality of the tenders received, and the pricing of the EPC Contract has
been competitive and in line with expectations.
The Company is currently working with a short-list of tenderers to refine their submissions ahead
of commencing contract formation with the preferred party. The tendered pricing will underpin
capital costs included in the DFS, thus providing a higher level of accuracy.
Permitting
Throughout the Sorby Hills DFS, Boab has adopted a multi-stream approvals strategy to de-risk
the Project execution schedule. Specifically, Site Establishment and Early Works approvals
streams have been decoupled from the Main Works approval stream to afford Boab flexibility to
commence and complete on-site pre-construction work.
During the period (ASX release 1 July 2022), Boab received confirmation that the Western Australian
Environment Protection Authority (“EPA”) had approved amendments to Boab’s existing EPA
approval, a key regulatory prerequisite for the commencement of Site Establishment and Early
Works.
The amendments to the approval related primarily to an increase in the permitted “development
area”. The increase will allow for:
• early establishment of an all-weather access to the Project;
• development of a materials laydown and hardstand area to facilitate construction of the
expanded processing plant and associated infrastructure; and
• construction of an accommodation village at the Project site.
Sorby Hills Site Visit undertaken by NAIF and Commercial Banks
Representatives from the Federal Government’s Northern Australia Infrastructure Facility (“NAIF”),
together with representatives from a number of Australian and international commercial mining
banks, joined Boab management on a two-day site visit of the Sorby Hills Project and surrounding
infrastructure including Kununurra township and Wyndham Port, as part of their ongoing due
diligence of the Project (ASX release 7 October 2021).
NAIF is an Australian Federal Government organisation with an aggregate of A$5 billion of debt
finance which may be lent on concessional terms to support development that generates public
benefit for Northern Australia.
The site visit followed positive discussions held with potential project lenders earlier in the year
and provided attendees with a unique first-hand experience that will provide confidence in Boab’s
ability to execute the Project.
12
BOAB METALS LIMITED
12
BOAB METALS LIMITED
13
REVIEW OF OPERATIONS ________________________________________________________ Annual Report for the Year Ended 30 June 2022 13 Acquisition of the Strategically Located Manbarrum Zinc-Silver-Lead Project On 21 July 2021, Boab entered into an agreement with Todd River Metals Pty Ltd to acquire 100% of the Manbarrum Zinc-Silver-Lead Project (ASX release 21 July 2021). The acquisition was completed on 31 August 2021. The total consideration for the acquisition included: • 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 completion of a Pre-Feasibility Study on the Manbarrum Project. The Manbarrum Project is located 25 kilometres east of Sorby Hills and covers geology that is genetically related to the geology at Sorby Hills, therefore allowing for an effective transfer of knowledge to maximise both exploration and Resource development potential. While the Company remains focussed on the development of the Sorby Hills Project, the strategic acquisition of the Manbarrum Project provides an opportunity to investigate a broader regional production strategy that leverages the clear synergies between the two projects. Figure 3 - Location of the Manbarrum Project relative to the Sorby Hills Project and the recently completed road upgrades connecting the two projects. Annual Report for the Year Ended 30 June 2022 REVIEW OF OPERATIONS
___________________________________________________
Figure 4 - New intersection to access Sorby Hills Project
14
BOAB METALS LIMITED
14
BOAB METALS LIMITED
FINANCIAL
STATEMENTS
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and other Comprehensive Income
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
15
Annual Report for the Year Ended 30 June 2022 DIRECTORS’ REPORT
________________________________________________________
FINANCIAL AND OPERATING REVIEW
FINANCIAL REVIEW
The Group began the financial year with a cash reserve of $12,896,960. During the year, total
exploration expenditure incurred by the Group amounted to $4,436,892 (2021: $3,822,870). In line
with the Group’s accounting policies, all exploration expenditure incurred in the ordinary course
of operations was expensed. The result for the year was an operating loss after income tax of
$6,804,523 (2021: $5,038,982). As at 30 June 2022, available cash funds totalled $6,317,527 (2021:
$12,896,960).
OPERATING RESULTS
Summarised operating results for the year are as follows:
Geographic Segments
Australia
Revenues and (loss) from ordinary activities before income tax
expense
Colombia
Revenues and profit from ordinary activities before income tax
expense
Revenue/(Loss before income tax)
Shareholder Returns
Basic Loss per share (cents per share)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
2022
Revenues
$
Results
$
251,491
(6,787,157)
1
(17,366)
251,492
(6,804,523)
2022
(4.44)
2021
(3.55)
During the year there were no significant changes in the state of affairs of the Group other than as
disclosed in this report.
Annual Report for the Year Ended 30 June 2022
16
16
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
There were no matters subsequent to the end of the financial year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group will continue exploration and development activities and to assess commercial
opportunities for corporate growth, including the acquisition of interests in projects, as they arise.
Due to the unpredictable nature of these opportunities, developments may occur at short notice.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to substantial environmental regulation regarding its exploration activities.
The Group endeavours to maintain an appropriate standard of environmental care through
awareness of, and compliance with, new and existing environmental legislation. The Directors are
not aware of any breach of environmental legislation for the year under review.
RISK MANAGEMENT
The Board is responsible for ensuring that risks and opportunities are identified on a timely basis
and that activities are aligned with these. At this stage of the Company’s development the Board
has not established a separate risk management committee under the belief that it is crucial for
all Board members to be a part of this process. The Board has several mechanisms in place to
ensure that managements’ objectives are aligned with Board identified risks. Mechanisms include
board approval of a strategic plan (designed to meet stakeholders’ needs and reduce business
risk), and Board approved operating plans and budgets (with progress monitored by the Board).
CORPORATE GOVERNANCE
The Directors support and adhere to the principles of corporate governance, recognising the need
for the highest standard of corporate behaviour and accountability. The Directors are focused on
fulfilling their responsibilities individually, and as a Board, for the benefit of all Company
stakeholders. That involves recognition of, and a need to adopt, principles of good corporate
governance. The Board supports the guidelines on the ‘Principles of Good Corporate Governance
and Recommendations – 4th Edition’ established by the ASX Corporate Governance Council. Given
the size and structure of the Group, the nature of its business activities, the stage of its
development and the cost of strict and detailed compliance with all of the recommendations, it
has adopted a range of modified systems, procedures and practices which enable it to meet the
principles of good corporate governance. The Groups’ practices are consistent with the guidelines
and where these do not directly relate to the recommendations in the guidelines the Group
considers that its adopted practices are appropriate. Corporate Governance policies can be found
on the Company website.
17
BOAB METALS LIMITED
17
Annual Report for the Year Ended 30 June 2022
DIRECTORS’ REPORT
________________________________________________________
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Group has paid an insurance premium in respect of a Directors’ and
Officers’ Liability insurance contract. The insurance premium relates to liabilities that may arise
from an officer’s position, except for conduct involving a wilful breach of duty or improper use of
information or position to gain personal advantage. The contract of insurance prohibits the
disclosure of the nature of the liabilities and the amount of premium.
DIRECTORS MEETINGS
The following table sets out the number of directors’ meetings held during the financial year and
the number of meetings attended by each director while they held the position. During the financial
year, 5 board meetings were held (2021: 5).
Directors
Gary Comb
Simon Noon
Richard Monti
Andrew Parker
Board of Directors
Eligible Attended
5
5
5
5
5
5
5
5
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
operating base metal mines.
Interests in Shares, Options and Performance Rights
560,237 Ordinary Shares.
160,000 Class “D” Unlisted Performance Rights
Other Directorships in Listed Entities in the past three years
Ironbark Zinc Limited and Cyprium Metals Limited.
18
Annual Report for the Year Ended 30 June 2022
18
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
INFORMATION ON DIRECTORS (CONTINUED)
SIMON NOON MAICD, AFAIM
Managing Director & CEO
Simon was appointed 19 October 2013. Simon is an experienced executive having spent the past
13 years managing Public Resources Companies. Simon has a strong background in strategic
management, business planning, finance and capital raising across a variety of commodities.
Simon’s experience includes managing Groote Resources Ltd from a Market Cap under $10M to
market highs in excess of $200M. After leaving Groote, Simon co-founded West Rock Resources
Ltd where he held the position of Managing Director until the company was acquired by Boab
Metals Ltd in 2013. As Managing Director of West Rock, Simon secured and operated joint
ventures and strategic alliances with mid and top tier miners.
Since his appointment in 2013, Simon has managed the Company’s exploration and evaluation of
a range of projects across Australia and South America. Most notably, Simon led the Company’s
transformative acquisition of Sorby Hills in Western Australia in 2018.
Over the past 4 years, Simon has overseen the rapid development of Sorby Hills including a 50%
increase in the size of the Mineral Resource and the delivery of a high-quality Pre-Feasibility Study
detailing the Project’s low risk and robust economics.
Simon is a passionate member of the WA resources industry, a member of the Australian Institute
of Company Directors and an Associate Fellow of the Australian Institute of Management.
Interests in Shares, Options and Performance Rights
1,882,000 Ordinary Shares
Other Directorships in Listed Entities in the past three Years
Nil.
19
BOAB METALS LIMITED
19
Annual Report for the Year Ended 30 June 2022
DIRECTORS’ REPORT
________________________________________________________
RICHARD MONTI
BSc (Hons), Grad Dip AppFin., MAusIMM
Non-Executive Director
Richard was appointed 12 October 2009 and resigned as Non-Executive Chairman on 6 March
2020, from this date Richard assumed the role of Non-Executive Director. Richard is a geologist
with a successful career of over thirty years in the international mineral resource industry resulting
in broad industry knowledge and strong strategic planning capabilities. Richard has over forty-six
director-years’ experience on thirteen ASX and TSX listed mining and exploration companies from
micro-caps through to mid-size miners and has built and managed teams of up to seventy
personnel. Richard was principal of a corporate advisory firm, Ventnor Capital, from 2005 to 2010
and is currently principal of Terracognita which supplies advice to resource industry companies.
Interests in Shares, Options and Performance Rights
1,324,982 Ordinary Shares.
Other Directorships in Listed Entities in the past three years
Zinc of Ireland NL, Black Dragon Gold, Alto Metals Limited and Caravel Minerals Limited.
ANDREW PARKER LLB
Non-Executive Director
Andrew was appointed 12 October 2009, and holds a law degree from the University of Western
Australia and has significant experience in the exploration and mining industry and a wealth of
expertise 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
position of Managing Director until 2008.
Interests in Shares, Options and Performance Rights
369,005 Ordinary Shares.
Other Directorships in Listed Entities in the past three years
Widgie Nickel Limited.
JERRY MONZU FGIA, CPA, Bbus
Company Secretary
Jerry is a corporate executive with over 25 years’ experience in corporate governance, finance and
accounting across various industry sectors with Australia and globally, acting as Company
Secretary, Chief Financial Officer and Director of several private and listed ASX, JSE and AIM
companies throughout his career.
Annual Report for the Year Ended 30 June 2022
20
20
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED
Our remuneration report is set out under the following main headings:
PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION;
DETAILS OF REMUNERATION;
SERVICE AGREEMENTS;
SHARE-BASED COMPENSATION; and
ADDITIONAL INFORMATION.
The information provided under headings A-E includes disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been
transferred from the financial report and have been audited.
A. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
Remuneration Policy
The remuneration policy of the Group aligns Directors and Executives with shareholder and
business objectives by providing a fixed remuneration component and offering specific long-term
incentives based on key performance areas affecting the Group’s financial results. The Board
believes the policy is appropriate and effective in its ability to attract and retain high calibre
Executives and Directors.
The Board’s policy for determining the nature and amount of remuneration for Directors and
Executives of the Group is as follows:
All Executives receive a base salary (based on factors such as experience) plus statutory
superannuation.
The Board reviews Executive packages with reference to the Group’s performance, Executive
performance and information from relevant industry sectors and comparable listed companies.
Independent external advice is sought where required.
The Board may exercise discretion in relation to approving incentives, bonuses, and the issue
of options.
All remuneration paid to Directors and Executives is valued at the cost to the Group and
expensed.
The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to
approval by shareholders at the Annual General Meeting (currently $200,000). Director fees are not
linked to the performance of the Group however, to align Director and shareholder interests, the
Directors are encouraged to hold Company shares.
Performance Based Remuneration
The Group has issued performance rights which form part of the Directors and Executive
remuneration packages. These performance rights have various vesting conditions based on
market and operational hurdles being met.
21
BOAB METALS LIMITED
21
Annual Report for the Year Ended 30 June 2022
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
Group Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration
The Group’s remuneration policy encourages the alignment of personal and shareholder interests
through the issue of options to Directors and Executives. The Board believes this policy is effective
in increasing shareholder wealth. The Group currently benchmarks remuneration paid against other
peer group companies and the Board acts in its capacity as the Remuneration Committee in
assessing Executive remuneration. The Company did not use any external remuneration
consultants in the financial year.
Voting and comments on the Remuneration Report at the 2021 Annual General Meeting
At the Company’s 2021 Annual General Meeting (“AGM”), a resolution to adopt the 2021
remuneration report was put to a vote and passed unanimously on a show of hands with proxies
received also indicating majority. 95.04% of validly appointed proxies were in favour of adopting
the remuneration report. No comments were made on the remuneration report at the AGM.
B. DETAILS OF REMUNERATION
Details of the remuneration 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 operations of the Group, no other employees are required to have their remuneration
disclosed in accordance with the Corporations Act 2001.
Annual Report for the Year Ended 30 June 2022
22
22
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
Salary &
Fees
$
Non-
Monetary(1)
$
Superannuation
$
Options/
Performance
Rights/Reversal
of Performance
Rights Expense(3)
$
Total
$
Proportion of
remuneration
performance
related
100,000
50,000
-
50,000
11,187
4,750
(11,778)
8,040
99,409
112,790
-
7%
320,000
283,539
24,963
56,280
27,500
25,935
(55,340)
91,339
317,123
457,093
48,000
40,200
-
-
4,800
3,819
(11,529)
29,401
41,271
73,420
Director
G. Comb
2022
2021
S. Noon
2022
2021
R. Monti
2022
2021
A. Parker
2022
48,000
-
4,800
(9,223)
43,577
2021
D. English(2)
2022
2021
Totals
2022
2021
40,200
-
3,819
28,480
72,499
199,480
169,615 9,581
(9,581)
19,304
16,113
199,863
9,340 204,649
(9,340)
715,480
583,554
15,382
115,861
67,591
54,436
(97,210)
166,600
701,243
920,451
(1) Relates to the movement in leave provisions for the period.
(2) D. English resigned. His last day with the company was on 6 January 2022, salary payments are
reflected up to this period.
(3) During the year Share based Payments expense previously recognised has been reversed due to
the Performance rights not vesting. (See Note 29).
No retirement benefits are payable post-employment under the Group’s executive services agreements.
23
BOAB METALS LIMITED
-
20%
-
40%
-
39%
-
5%
23
Annual Report for the Year Ended 30 June 2022
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
C. SERVICE AGREEMENTS
Material terms of the Executives service agreements are as follows:
Gary Comb - Executive Chairman
• Remuneration payable of $100,000 per annum plus statutory superannuation;
• The right to participate in the Company’s Employee Share Incentive Plan as approved by the
Board; and
• The right to resign with no formal resignation period.
Simon Noon - Managing Director
• Remuneration payable of $320,000 per annum plus statutory superannuation;
• Either party may terminate the agreement without cause on three months’ written notice;
• The right to participate in the Company’s Employee Share Incentive Plan as approved by the
Board; and
• The Managing Director will not be paid a separate Director’s fee for service to the Board.
Richard Monti - Non-Executive Director
• Remuneration payable of $48,000 per annum plus statutory superannuation;
• The right to participate in the Company’s Employee Share Incentive Plan as approved by the
Board; and
• The right to resign with no formal resignation period.
Andrew Parker - Non-Executive Director
• Remuneration payable of $48,000 per annum plus statutory superannuation;
• The right to participate in the Company’s Employee Share Incentive Plan as approved by the
Board; and
• The right to resign with no formal resignation period.
David English - Chief Operating Officer - (Resigned 6 January 2022)
• Remuneration payable of $350,000 per annum plus statutory superannuation;
• Either party may terminate the agreement without cause on three month’s written notice
• The right to participate in the Company’s Employee Share Incentive Plan as approved by the
Board.
D. SHARE-BASED COMPENSATION
During the year no additional compensation was issued to Directors and Key Management
Personnel (2021: 280,000 Performance Rights). No shares were issued to Directors upon exercise
of remuneration options (2021: 142,699 ordinary shares).
Annual Report for the Year Ended 30 June 2022
24
24
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
Performance Income as a Proportion of Total Compensation
No performance-based bonuses were paid during the year (2021: Nil).
E. ADDITIONAL INFORMATION
Movements in Shares
Movement in the number of ordinary shares in the Company held (directly, indirectly or beneficially)
by each Director, including their related parties, is shown below. There were no shares issued as
part of Director remuneration during the year (2021: 126,903).
KMP
G Comb
R. Monti
S. Noon
A. Parker
D.English (2)
KMP
G Comb
R. Monti
S. Noon
A. Parker
D. English
Held at 1 July 2021
560,237
1,324,982
1,817,119
369,005
-
4,071,343
Movement Held at 30 June 2022
560,237
-
1,324,982
-
64,881(1)
1,882,000
369,005
-
-
-
4,136,224
64,881
Movement
Held at 1 July 2020
360,237
200,000
216,231
1,108,751
657,119
1,160,000
153,635
215,370
-
-
2,684,121 1,387,222
Held at 30 June 2021
560,237
1,324,982
1,817,119
369,005
-
4,071,343
(1)
Movement relates to shares purchased on market.
(2) David English resigned on 6 January 2022, no shares were held by Mr English either directly or
beneficially as at his resignation date.
25
BOAB METALS LIMITED
25
Annual Report for the Year Ended 30 June 2022
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
Movement in Options
There were no KMP options on issue during the financial year ended 30 June 2022. The options on
issue and converted in the 2021 financial year are as per below:
Fair Value of options exercised in the 2021 financial year.
KMP
G Comb
R. Monti
S. Noon
A. Parker
D. English
No of options
Exercised
-
237,669
424,000
193,333
-
855,002
No of shares
Issued
-
116,231
177,118
73,633
-
366,982
Amount Paid
$
-
29,126
35,250
12,500
-
76,876
Fair Value on
Exercise
$
-
23,178
44,453
20,635
-
88,266
The value of options exercised was calculated at the market price on the date of exercise after
deducting the price paid on the exercise the options.
The number of shares issued differs from options exercised due to the cashless issue of shares.
KMP
G. Comb
R. Monti
S. Noon
A. Parker
D. English
Held at 1 July 2020 Other Changes 1
Held at 30 June
2021
Vested at
30 June 2021
-
237,669
424,000
193,333
-
855,002
- -
(237,669)
(424,000)
(193,333)
-
(855,002)
-
-
-
-
-
-
-
-
-
-
-
(1) Shows options converted to ordinary shares in the year.
Annual Report for the Year Ended 30 June 2022
26
26
BOAB METALS LIMITED
DIRECTORS’ REPORT
________________________________________________________
REMUNERATION REPORT - AUDITED (CONTINUED)
Movements in Performance Rights
Movement in the number of Performance Rights in the Company held (directly, indirectly or
beneficially) by Directors and Key Management Personnel, including their related parties, during
the reporting period is as follows:
KMP
G. Comb
R. Monti
S. Noon
A. Parker
D. English(2)
Held at
1 July 2021
420,000
200,000
960,000
160,000
280,000
2,020,000
Other Changes
(260,000)1
(200,000)1
(960,000)1
(160,000)1
(280,000)2
(1,860,000)
Held at
30 June 2022
160,000
-
-
-
-
160,000
Vested at
30 June 2022
-
-
-
-
-
-
(1) These Performance Rights were cancelled on 30 June 2022 as the milestones attaching to them could
not be met.
(2) Mr English resigned on 6 January 2022 and held 280,000 Performance Rights up to the date of his
resignation, these Performance Rights were cancelled on his resignation date.
KMP
G. Comb
R. Monti
S. Noon
A. Parker
D. English(2)
Held at
1 July 2020
520,000
300,000
1,440,000
240,000
-
2,500,000
Other Changes
(100,000)(1)
(100,000)(1)
(480,000)(1)
(80,000)(1)
280,000(2)
(480,000)
Held at
30 June 2021
420,000
200,000
960,000
160,000
280,000
2,020,000
Vested at
30 June 2021
-
-
-
-
-
-
(1) These Performance Rights were converted into Ordinary Shares in the 2021 financial year as the
attaching Performance Milestones were met.
(2) Mr English was issued these Performance Rights (with various vesting conditions) during the 2021
financial year.
END OF THE REMUNERATION REPORT
27
BOAB METALS LIMITED
27
Annual Report for the Year Ended 30 June 2022
28
DIRECTORS’ REPORT ________________________________________________________ Annual Report for the Year Ended 30 June 2022 28 OPTIONS OVER ORDINARY SHARES There were no options on issue as at the date of the Directors Report. 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 International Audit and Consulting Pty Ltd during the financial year. AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page. Signed in accordance with a resolution of the Directors. Gary Comb Chairman 2 September 2022 Details Performance Rights Exercise Price Grant Date Expiry Date Class "D" Performance Rights 160,000 Nil 06/03/2020 6/03/2025 160,000 BOAB METALS LIMITED AUDITOR’S INDEPENDENCE DECLARATION
________________________________________________________
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
2 September 2022
Board of Directors
Boab Metals Limited
4 Clive Street,
WEST PERTH, WA 6005
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 statements of Boab Metals Limited for the
year ended 30 June 2022, 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 faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
29
BOAB METALS LIMITED
29
Annual Report for the Year Ended 30 June 2022
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
________________________________________________________
Revenue from Continuing Operations
Expenditure
Exploration Expenses
Salaries and Employee Benefits Expenses
Depreciation Expenses
Corporate Expenses
Occupancy Expenses
Consulting Expenses
Administration Expenses
Share Based Payments
Depreciation of Right of Use Assets
Interest Paid on Leased Liabilities
Write Down of Investment
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 Translation
Reserve
Total Comprehensive (Loss)
(Loss) Attributed to the Members
Total Comprehensive (Loss) Attributed to the
Members
Basic and Diluted Loss per Share for Loss
Attributable to the Ordinary Equity Holders of the
Company (Cents per Share)
Notes
5
6
2022
$
2021
$
251,492
515,628
(4,436,892)
(3,822,870)
(858,676)
(638,661)
6,12
(17,087)
(11,908)
29
6,13
13
6,10
6
7
(231,044)
(181,548)
(63,676)
(33,522)
(180,115)
(269,364)
(274,433)
(390,464)
97,210
(186,114)
(64,559)
(53,598)
(2,071)
(2,850)
(1,024,672)
-
-
36,289
(6,804,523)
(5,038,982)
-
-
(6,804,523)
(5,038,982)
-
-
-
-
-
-
20
316
(280,852)
(6,804,207)
(5,319,834)
(6,804,523)
(5,038,982)
(6,804,207)
(5,319,834)
28
(4.44)
(3.55)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the Notes to the Financial Statements.
Annual Report for the Year Ended 30 June 2022
30
30
BOAB METALS LIMITED
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
________________________________________________________
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Prepayments
Total Current Assets
Non-Current Assets
Exploration and Evaluation Assets
Investments
Other Assets
Plant and Equipment
ROU Asset
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and Other Payables
Provisions
Lease Liabilities
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Deferred Tax Liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Reserves
Accumulated Losses
Total Equity
Notes
2022
$
2021
$
8
9
9
10
11
12
13
14
15
16
16
17
18
20
6,317,527
12,896,960
350,051
36,458
362,118
12,778
6,704,036
13,271,856
4,668,040
5,160,560
60,000
74,889
61,800
98,631
60,000
84,849
42,380
44,237
4,963,360
5,392,026
11,667,396
18,663,882
616,271
208,163
69,974
1,291,781
175,879
45,531
894,408
1,513,191
30,220
162,647
192,867
-
169,153
169,153
1,087,275
1,682,344
10,580,121
16,981,538
48,198,398
47,698,398
1,193,159
1,290,053
(38,811,436)
(32,006,913)
10,580,121
16,981,538
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the
Financial Statements.
31
BOAB METALS LIMITED
31
Annual Report for the Year Ended 30 June 2022
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2022
________________________________________________________
Issued
Capital
Share /
Option
Reserve
$
$
47,698,398
-
1,623,811
-
Foreign
Currency
Translation
Reserve
$
(333,758)
-
Accumulated
Losses
Total
$
$
(32,006,913)
(6,804,523)
16,981,538
(6,804,523)
-
-
316
-
316
-
-
316
(6,804,523)
(6,804,207)
500,000
-
-
(97,210)
-
-
-
-
500,000
(97,210)
2022
Balance at 1 July 2021
(Loss) for the Year
Other Comprehensive
(Loss) for the Year
Total Comprehensive
(Loss) for the Year
Issue of Shares/Options
Share Based Payments
Balance at 30 June 2022
48,198,398 1,526,601
(333,442)
(38,811,436) 10,580,121
32,980,318
1,653,328
(52,906)
(26,967,931)
7,612,809
-
-
-
2021
Balance at 1 July 2020
(Loss) for the Year
Other Comprehensive
(Loss) for the Year
Total Comprehensive
(Loss) for the Year
Share/Option Issue
Expense
Performance Rights
converted to Ordinary
Shares
Issue of Shares
15,145,298
(642,849)
115,200
(115,200)
Share Based Payments
100,431
85,683
-
-
-
-
-
-
(5,038,982)
(5,038,982)
(280,852)
-
(280,852)
(280,852)
(5,038,982)
(5,319,834)
-
-
-
-
-
-
-
-
15,145,298
(642,849)
-
186,114
Balance at 30 June 2021
47,698,398 1,623,811
(333,758)
(32,006,913) 16,981,538
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the
Financial Statements.
Annual Report for the Year Ended 30 June 2022
32
32
BOAB METALS LIMITED
FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CASH FLOWS
AS AT 30 JUNE 2022
________________________________________________________
Cash Flows from Operating Activities
Expenditure on Mining Interests
Payments to Suppliers and Employees
Receipts from Federal Government "Cash Flow Boost"
Interest Received
Management Fees
Other Income
Notes
2022
$
2021
$
(4,846,003)
(3,104,780)
(1,984,288)
(1,710,704)
-
67,648
35,915
21,598
304,033
172,721
1,100
-
Net Cash (Outflow) from Operating Activities
27
(6,489,243)
(4,553,517)
Cash Flows from Investing Activities
Proceeds From Disposal of Assets - Colombia
Proceeds From sale of Assets - Colombia
Payments of Security Deposit – Bank Guarantee
Cash Transferred From Security Deposits
Payments for Purchase of Property, Plant and
Equipment
-
-
164,985
27,190
(28,300)
40,541
-
436
(36,507)
(44,212)
Net Cash (Outflow)/Inflow from Investing Activities
(24,266)
148,399
Cash Flows from Financing Activities
Proceeds From Issues of Shares
Proceeds From conversion of options
Payment of Share Issue Costs
Payments on Lease Liability
Net Cash (Outflow)/Inflow from Financing Activities
Net (Decrease)/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
-
-
-
10,240,007
4,851,958
(642,849)
(65,924)
(55,589)
(65,924) 14,393,527
(6,579,433)
9,988,409
12,896,960
2,908,551
-
-
8
6,317,527
12,896,960
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Financial
Statements.
33
BOAB METALS LIMITED
33
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial report are set out
below. These policies have been consistently applied to all years presented unless otherwise
stated. The financial report includes the financial statements for Boab Metals Limited (“Parent” or
“Company”) and its subsidiaries (the “Group”) for the year ended 30 June 2022. The financial
report was authorised for issue in accordance with a resolution of the Board of Directors of Boab
Metals Limited 2 September 2022. Boab Metals Limited is a company incorporated in Australia
whose shares are publicly traded on the Australian Securities Exchange. The nature of the
operations and principal activities of the Group is exploration of mineral tenements in Australia
and Latin America.
(a)
BASIS OF PREPARATION
This general-purpose financial report has been prepared in accordance with Australian
Accounting Standards, other authoritative pronouncements of the Australian Accounting
Standards Board, Australian Interpretations, and the Corporations Act 2001.
(i) Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International
Financial Reporting Standards (“AIFRS”). Compliance with AIFRS ensures that the
financial statements and notes of Boab Metals Limited comply with International
Financial Reporting Standards (“IFRS”).
(ii) Historical Cost Convention
Financial statements have been prepared under the historical cost convention, as
modified by the revaluation of available-for-sale financial assets, financial assets and
liabilities at fair value through profit or loss, certain classes of property, plant and
equipment.
(iii) Going Concern Basis
The financial report has been prepared on a going concern basis, which contemplates
continuity of normal business activities and realisation of assets and settlement of
liabilities in the ordinary course of business. The going concern of the Group is
dependent upon maintaining enough funds for its operations and commitments. The
Directors continue to monitor the funding requirements of the Group and are confident
that funding can be secured as required to enable the Group to continue as a going
concern and are of the opinion that the financial report has been appropriately prepared
on a going concern basis.
(b)
PRINCIPLES OF CONSOLIDATION
(i)
Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern the financial
and operating policies, generally accompanying a shareholding of more than half of the
voting rights.
Annual Report for the Year Ended 30 June 2022
34
34
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i)
(ii)
Subsidiaries (continued)
The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date that control ceases. The acquisition
method of accounting is used to account for business combinations by the Group (refer
to Note 1(d)). Intercompany transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of the impairment of the asset transferred. Accounting
policies of subsidiaries have been changed where necessary to ensure consistency with
policies adopted by the Group.
Investment in Joint Ventures
A joint venture is an arrangement under which the Group has joint control, whereby the
Group has rights to the net assets of the arrangement, rather than rights to its assets
and obligations for its liabilities. Joint control is defined as the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
Interests in joint ventures are accounted for using the equity method.
Under the equity method of accounting, the investments are initially recognised at cost
and adjusted thereafter to recognise the Group’s share of the post-acquisition profits
or losses of the investee in profit or loss, and the Group’s share of movements in other
comprehensive income of the investee in other comprehensive income. Goodwill
relating to the joint venture is included in the carrying amount of the investment and is
not amortised or tested individually for impairment. Dividends received or receivable
from joint ventures are recognised as a reduction in the carrying amount of the
investment.
Financial statements of the joint venture are prepared for the same reporting period as
the Group. When necessary, adjustments are made to bring accounting policies in line
with those of the Group.
After application of the equity method, the Group determines whether it is necessary
to recognise an impairment loss on its investment in the joint venture. An impairment
loss is measured by comparing the recoverable amount of the investment with the
carrying amount. An impairment loss is recognised in the Consolidated Statement of
Profit or Loss and Other Comprehensive Income and is reversed if there has been a
favourable change in the estimates used to determine the recoverable amount.
Upon loss of significant influence over the joint venture, the Group measures and
recognises any retained investment at its fair value. Any difference between the
carrying amount of the joint venture upon loss of joint control and the fair value of the
retained investment and proceeds from disposal is recognised in profit or loss.
35
BOAB METALS LIMITED
35
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iii)
Investment in Joint Operations
A joint arrangement occurs whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the
arrangement. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require
unanimous consent of the parties sharing control.
When a group entity undertakes its activities under a joint arrangement, the Group as
operator, recognises in relation to its interest in a joint arrangement its:
liabilities, including its share of any liabilities incurred jointly;
assets, including its share of any assets held jointly;
revenue from the sale of its share of the output arising from the joint operation;
share of the revenue from the sale of the output by the joint operation; and
expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues, and expenses relating to its
interest in a joint operation in accordance with the Australian Accounting Standards
applicable to the certain assets, liabilities, revenues, and expenses. When a group entity
transacts with a joint operation in which a group entity is a joint operator (such as a sale
or contribution of assets), the Group is considered to be conducting the transaction with
the other parties to the joint operation, and gains and losses resulting from the
transactions are recognised in the Group’s consolidated financial statements only to the
extent of other parties’ interests in the joint operation. When a group entity transacts with
a joint operation in which a group entity is a joint operator (such as a purchase of assets),
the Group does not recognise its share of the gains and losses until it resells those assets
to a third party.
(c)
FOREIGN CURRENCY TRANSLATION
(i)
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured
using the currency of the primary economic environment in which the entity operates
(functional currency). The consolidated financial statements are presented in Australian
dollars, Boab’s functional and presentation currency, unless otherwise stated.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the
exchange rate at the date of the transaction. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year end exchange
rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit or loss, except when they are deferred in equity as qualifying cash flow hedges
and qualifying net investment hedges or are attributable to part of the net investment in a
foreign operation.
Annual Report for the Year Ended 30 June 2022
36
36
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii)
Transactions and balances (continued)
Foreign exchange gains and losses relating to borrowings are presented in the income
statement within finance costs. All other foreign exchange gains and losses are
presented in the income statement on a net basis within other income or other
expenses.
Non-monetary items that are measured at fair value in a foreign currency are translated
using the exchange rate at the date when the fair value was determined. Translation
differences on assets and liabilities carried at fair value are reported as part of the fair
value gain or loss.
(iii) Group companies
The results and financial position of foreign operations that have a functional
currency other than the presentation currency are translated into the presentation
currency as follows:
assets and liabilities for each balance sheet presented are translated at the
for each
closing rate at the date of that balance sheet;
income and expenses
income statement and statement of
comprehensive income are translated at average exchange rates (unless this is
not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at
the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive
income.
On consolidation, exchange differences arising from the translation of any net
investment in foreign entities, and of borrowings and other financial instruments
designated as hedges of such investments, are recognised in other comprehensive
income. When a foreign operation is sold or any borrowings forming part of the net
investment are repaid, the associated exchange differences are reclassified to profit
or loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation
are treated as assets and liabilities of the foreign operation and translated at the
closing exchange rate.
(d)
BUSINESS COMBINATIONS
The acquisition method of accounting is used to account for all business combinations,
regardless of whether equity instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the fair values of the assets
transferred, the liabilities incurred and the equity interests issued by the Group.
37
BOAB METALS LIMITED
37
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
(d)
(e)
(f)
(g)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
BUSINESS COMBINATIONS (continued)
The consideration transferred also includes the fair value of any asset or liability resulting
from a contingent consideration arrangement and the fair value of any pre-existing equity
interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the
acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-
controlling interest in the acquiree either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net identifiable assets.
Excess consideration transferred and the amount of any non-controlling interest in the
acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill.
If those amounts are less than the fair value of the net identifiable assets of the subsidiary
acquired and the measurement of all amounts has been reviewed, the difference is
recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in
the future are discounted to their present value as at the date of exchange. The discount
rate used is the entity’s incremental borrowing rate (rate at which a similar borrowing
could be obtained from an independent financier under comparable terms and
conditions). Contingent consideration is classified either as equity or a financial liability.
Amounts classified as a financial liability are subsequently remeasured to fair value with
changes in fair value recognised in profit or loss.
SEGMENT REPORTING
Operating segments are identified, and segment information disclosed based on internal
reports received by the Board.
REVENUE RECOGNITION
Interest revenue is recognised on a time proportionate basis that considers the effective
yield on the financial assets. Grant income received from Governments is recognised on
a cash basis upon receipt. This includes grants received from the ATO from the Cashflow
Boost during 2021. The Group recognised revenue from the Sorby Hills Joint Venture in
accordance with its proportional holding.
INCOME TAX
The income tax expense or revenue for the year is the tax payable on the current periods
taxable income (based on the national income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to
unused tax losses). Deferred income tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements.
Annual Report for the Year Ended 30 June 2022
38
38
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
(g)
(h)
(i)
(j)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAX (continued)
Deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss. Deferred income tax is
determined using tax laws and rates that have been enacted or substantially enacted by
the balance sheet date and are expected to apply when the related deferred income tax
asset is realised, or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax
losses only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses. Deferred tax assets and liabilities are offset where
there is a legally enforceable right to offset current tax assets and liabilities and where the
deferred tax balances relate to the same taxation authority. Current tax assets and
liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity
are also recognised directly in equity.
IMPAIRMENT OF ASSETS
Goodwill and intangible assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment, or more frequently if events or
changes in circumstances indicate that they might be impaired. Other assets are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell, and value in use. To assess
impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows that are largely independent of the cash inflows from other assets
or groups of assets (cash-generating units). Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the impairment at each
reporting date.
CASH AND CASH EQUIVALENTS
For presentation purposes on the cash flow statement, cash and cash equivalents
includes cash on hand and deposits held by financial institutions.
TRADE AND OTHER RECEIVABLES
Trade and other receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Trade receivables are initially
recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses.
39
BOAB METALS LIMITED
39
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
(j)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
TRADE AND OTHER RECEIVABLES (continued)
Trade receivables for goods and services are generally due for settlement within 30 days
from date of invoice.
The group has applied the simplified approach to measuring expected credit losses,
which uses a lifetime expected loss allowance. To measure the expected credit losses,
trade receivables would be grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected
credit losses.
(k)
FINANCIAL INSTRUMENTS
(i) Recognition, Initial Measurement and Derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party
to the contractual provisions of the financial instrument. Financial instruments (except for
trade receivables) are measured initially at fair value adjusted by transactions costs,
except for those carried “at fair value through profit or loss”, in which case transaction
costs are expensed to profit or loss. Where available, quoted prices in an active market
are used to determine the fair value. In other circumstances, valuation techniques are
adopted. Subsequent measurement of financial assets and financial liabilities are
described below.
Trade receivables are initially measured at the transaction price if the receivables do not
contain a significant financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the
financial asset expire, or when the financial asset and all substantial risks and rewards are
transferred. A financial liability is derecognised when it is extinguished, discharged,
cancelled or expires.
(ii) Classification and Subsequent Measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component
and are measured at the transaction price in accordance with AASB 15, all financial assets
are initially measured at fair value adjusted for transaction costs (where applicable).
Annual Report for the Year Ended 30 June 2022
40
40
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii)
Classification and Subsequent Measurement (Continued)
Financial assets (continued)
For the purpose of subsequent measurement, financial assets other than those
designated and effective as hedging instruments, are classified into the following
categories upon initial recognition:
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
The contractual cash flow characteristics of the financial assets; and
The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following
conditions (and are not designated as FVPL):
they are held within a business model whose objective is to hold the financial assets
and collect its contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest
method. Discounting is omitted where the effect of discounting is immaterial. The Group’s
cash and cash equivalents, trade and most other receivables fall into this category of
financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments
as equity instruments designated at fair value through OCI when they meet the definition
of equity under AASB 132 Financial Instruments: Presentation and are not held for trading.
41
BOAB METALS LIMITED
41
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading,
financial assets designated upon initial recognition at fair value through profit or loss, or
financial assets mandatorily required to be measured at fair value. Financial assets are
classified as held for trading if they are acquired for the purpose of selling or repurchasing
in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit
or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective
interest method except for derivatives and financial liabilities designated at FVPL, which
are carried subsequently at fair value with gains or losses recognised in profit or loss.
(iii)
(iv)
All interest-related charges and, if applicable, gains and losses arising on changes in fair
value are recognised in profit or loss.
Impairment
The Group assesses, on a forward-looking basis, the expected credit losses associated
with its debt instruments carried at amortised cost and FVOCI. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. For trade
receivables, the Group applies the simplified approach permitted by AASB, which requires
expected lifetime losses to be recognised from initial recognition of the receivables.
Valuation Techniques
In the absence of an active market for an identical asset or liability, the Group selects and
uses one or more valuation techniques to measure the fair value of the asset or liability. The
Group selects a valuation technique that is appropriate in the circumstances and for which
sufficient data is available to measure fair value. The availability of sufficient and relevant
data primarily depends on the specific characteristics of the asset or liability being
measured.
Annual Report for the Year Ended 30 June 2022
42
42
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iv)
Valuation Techniques (continued)
The valuation techniques selected by the Group are consistent with one or more of the
following valuation approaches:
Market approach: valuation techniques that use prices and other relevant
information generated by market transactions for identical or similar assets or
liabilities.
Income approach: valuation techniques that convert estimated future cash flows
or income and expenses into a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of
an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and
sellers would use when pricing the asset or liability, including assumptions about risks.
When selecting a valuation technique, the Group gives priority to those techniques that
maximise the use of observable inputs and minimise the use of unobservable inputs.
Inputs that are developed using market data (such as publicly available information on
actual transactions) and reflect the assumptions that buyers and sellers would
generally use when pricing the asset or liability are considered observable, whereas
inputs for which market data is not available and therefore are developed using the
best information available about such assumptions are considered unobservable.
(v)
Fair Value Hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value
hierarchy, which categorises fair value measurements into one of three possible levels
based on the lowest level that an input that is significant to the measurement can be
categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly.
43
BOAB METALS LIMITED
43
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(v)
Fair Value Hierarchy (continued)
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable market data. If all significant
inputs required to measure fair value are observable, the asset or liability is included in
Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the
following circumstances:
if a market that was previously considered active (Level 1) became inactive (Level
2 or Level 3) or vice versa; or
if significant inputs that were previously unobservable (Level 3) became observable
(Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between
levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value
hierarchy) on the date the event or change in circumstances occurred.
(l)
PLANT AND EQUIPMENT
All plant and equipment are stated at historical cost less depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items. Depreciation
of plant and equipment is calculated using the straight-line method to allocate their cost
(net of their residual values) over their estimated useful lives. The assets’ residual values
and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount (Note 1(h)).
Gains and losses on disposals are determined by comparing proceeds with the carrying
amount. These are included in the income statement. When revalued assets are sold, it is
Group policy to transfer the amounts included in other reserves in respect of those assets
to retained earnings.
Annual Report for the Year Ended 30 June 2022
44
44
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
(m)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
EXPLORATION AND EVALUATION COSTS
Exploration and evaluation costs are written off in the year they are incurred apart from
acquisition costs which are carried forward where right of tenure of the area of interest is
current, and they are expected to be recouped through sale or successful development
and exploration of the area of interest, or, where exploration and evaluation activities in
the area of interest have not reached a stage that permits reasonable assessment of the
existence of economically recoverable reserves. Where an area of interest is abandoned,
or the Directors decide that it is not commercial, any accumulated acquisition costs in
respect of that area are written off in the financial period the decision is made. Each area
of interest is reviewed at the end of each accounting period and accumulated costs
written off to the extent that they will not be recoverable in the future.
(n)
TRADE AND OTHER PAYABLES
Trade and other payables represent liabilities for goods and services provided to the
Group during the financial year which remain unpaid at the end of the period. The amounts
are unsecured and are paid on standard commercial terms.
(o)
EMPLOYEE BENEFITS
(i) Wages and Salaries, Leave and Other Employee Benefits
Provisions are made for employee benefits for services rendered during the period.
These benefits include salaries and leave benefits. Liabilities arising in respect of
employee benefits are measured at their nominal amounts based on remuneration rates
to be paid when the liability is settled.
(ii) Share-Based Payments
The Group provides benefits to employees (including Directors) and consultants of the
Group in the form of share-based payments whereby employees and contractors
render services in exchange for shares or rights over shares (“equity-settled
transactions”). The cost of these equity-settled transactions is measured by reference
to the fair value at the date at which they are granted. The fair value is determined by
an internal valuation using a Black-Scholes option pricing model. The cost of equity-
settled transactions is recognised, together with a corresponding increase in equity,
over the period in which the performance conditions are fulfilled, ending on the date on
which the relevant employees become fully entitled to the award (“vesting date”).
45
BOAB METALS LIMITED
45
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(ii) Share-Based Payments (continued)
The cumulative expense recognised for equity-settled transactions at each reporting date
until vesting date reflects the extent to which the vesting period has expired and the
number of options that the Directors think will vest ultimately. This opinion is formed based
on the information available at balance date.
No adjustment is made for the likelihood of market performance conditions being met as
the effect of these conditions is included in the determination of fair value at grant date. No
expense is recognised for awards that do not ultimately vest, except for awards where
vesting is conditional upon a market condition. Where an equity-settled award is cancelled,
it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if they were a modification of the
original award.
(p)
CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a deduction (net of tax) from the proceeds.
Incremental costs directly attributable to the issue of new shares or options, for the
acquisition of a business, are not included in the cost of the acquisition as part of the
purchase consideration.
(q)
EARNINGS PER SHARE
(i) Basic Earnings Per Share
Basic earnings per share are calculated by dividing the profit attributable to equity
holders of the Parent entity, excluding any costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
Annual Report for the Year Ended 30 June 2022
46
46
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
(q)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
EARNINGS PER SHARE (Continued)
(ii) Diluted Earnings Per Share
Diluted earnings per share adjusts the figures used in the determination of basic
earnings per share to take into account the after income tax effect of interest and other
financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
(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 taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the taxation authority is included
with other receivables or payables in the balance sheet. Cash flows are presented on a
gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented
as operating cash flow.
(s)
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The carrying amount of certain assets and liabilities is often determined based on
estimates and assumptions of future events. The key estimates and assumptions that have
significant risk of causing a material adjustment to the carrying amounts of certain assets
and liabilities within the next annual reporting period are:
(i)
(ii)
Deferred Taxation
The potential deferred tax asset arising from the tax losses and temporary differences
has not been recognised as an asset because recovery of the tax losses is not yet
considered probable.
Capitalised Exploration Costs
The application of the Group’s accounting policy for exploration and evaluation
expenditure requires judgement in determining whether future economic benefits are
likely, either from exploration or sale, or where activities have not reached a stage
which permits reasonable assessment.
47
BOAB METALS LIMITED
47
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(iii) Share-Based Payments
The Group measures the cost of equity-settled and cash-settled transactions by
reference to the fair value of the goods and services received or, if this cannot be
reliably measured, the fair value of the equity instruments at the date at which they are
granted. The fair value of the equity instruments is determined by using the Black-
Scholes model and the assumptions and carrying amount at the reporting date is
disclosed in Note 29.
(t)
LEASES
The Group as lessee
At inception of a contract the Group assesses if the contract contains or is a lease. If there
is a lease present, a right-of-use asset and a corresponding liability are recognised by the
Group where the Group is a lessee. However, all contracts that are classified as short-term
leases (i.e. leases with a remaining lease term of 12 months or less) and leases of low-value
assets are recognised as an operating expense on a straight-line basis over the term of the
lease.
Initially, the lease liability is measured at the present value of the lease payments still to be
paid at the commencement date. The lease payments are discounted at the interest rate
implicit in the lease. If this rate cannot be readily determined, the Group uses incremental
borrowing rate.
Lease payments included in the measurement of the lease liability are as follows;
•
•
•
•
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using
the index or rate at the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise
the options;
lease payments under extension options, if the lessee is reasonably certain to
exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the
exercise of options to terminate the lease.
Annual Report for the Year Ended 30 June 2022
48
48
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t) LEASES
The Group as lessee (continued)
The right-of-use assets comprise the initial measurement of the corresponding lease
liability, any lease payments made at or before the commencement date and any initial
direct costs. The subsequent measurement of the right-of-use assets is at cost less
accumulated depreciation and impairment losses. Right-of-use assets are depreciated
over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use
asset reflects that the Group anticipates exercising a purchase option, the specific asset is
depreciated over the useful life of the underlying asset.
AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19
Related Rent Concessions beyond 30 June 2021.
The Group has applied AASB 2021-3: Amendments to Australian Accounting
Standards – COVID-19 Related Rent Concessions beyond 30 June 2021 this
reporting period.
The amendment amends AASB 16 to extend by one year, the application of the practical
expedient added to AASB 16 by AASB 2020-4: Amendments to Australian Accounting
Standards – COVID-19-Related Rent Concessions. The practical expedient permits lessees
not to assess whether rent concessions that occur as a direct consequence of the COVID-
19 pandemic and meet specified conditions are lease modifications and instead, to account
for those rent concessions as if they were not lease modifications. The amendment has not
had a material impact on the Group’s financial statements.
The Group as lessor
The Group does not have any property which has been leased out, and therefore not
applicable.
2.
NEW AND AMENDED ACCOUNTING POLICIES ADOPTED BY THE GROUP
The Group has considered the implications of new and amended Accounting Standards
which have become applicable for the current financial reporting period.
49
BOAB METALS LIMITED
49
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
2.
NEW AND AMENDED ACCOUNTING POLICIES ADOPTED BY THE GROUP
(CONTINUED)
AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19 Related
Rent Concessions beyond 30 June 2021
The Group has applied AASB 2021-3: Amendments to Australian Accounting Standards –
COVID-19-Related Rent Concessions beyond 30 June 2021 this reporting period.
The amendment amends AASB 16 to extend by one year, the application of the practical
expedient added to AASB 16 by AASB 2020-4: Amendments to Australian Accounting
Standards – COVID-19-Related Rent Concessions. The practical expedient permits lessees
not to assess whether rent concessions that occur as a direct consequence of the COVID-
19 pandemic and meet specified conditions are lease modifications and instead, to account
for those rent concessions as if they were not lease modifications. The amendment has not
had a material impact on the Group’s financial statements.
AASB 2020-8: Amendments to Australian Accounting Standards – Interest Rate
Benchmark Reform – Phase 2
The Group has applied AASB 2020-8 which amends various standards to help listed entities
to provide financial statement users with useful information about the effects of the interest
rate benchmark reform on those entities’ financial statements. As a result of these
amendments, an entity:
•
•
•
will not have to derecognise or adjust the carrying amount of financial statements
for changes required by the reform, but will instead update the effective interest
rate to reflect the change to the alternative benchmark rate;
will not have to discontinue its hedge accounting solely because it makes changes
required by the reform, if the hedge meets other hedge accounting criteria; and
will be required to disclose information about new risks arising from the reform and
how it manages the transition to alternative benchmark rates. The amendment has
not had a material impact on the Group’s financials.
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as
current or non-current. The Group plans on adopting the amendment for the reporting
period ending 30 June 2024. The amendment is not expected to have a material impact on
the financial statements once adopted.
Annual Report for the Year Ended 30 June 2022
50
50
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
2. NEW AND AMENDED ACCOUNTING POLICIES ADOPTED BY THE GROUP (CONTINUED)
AASB 2020-3: Amendments to Australian Accounting Standards – Annual
Improvements 2018-2020 and Other Amendments
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements
2018-2020 and Other Amendments is an omnibus standard that amends AASB 1, AASB 3,
AASB 9, AASB 116, AASB 137 and AASB 141. The Group plans on adopting the amendment
for the reporting period ending 30 June 2023. The impact of the initial application is not yet
known.
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies and Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice
Statement 2. These amendments arise from the issuance by the IASB of the following
International Financial Reporting Standards: Disclosure of Accounting Policies (Amendments
to IAS 1 and IFRS Practice Statement 2) and Definition of Accounting Estimates
(Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024.
The impact of the initial application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax
related to Assets and Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such
that it is not applicable to leases and decommissioning obligations – transactions for which
companies recognise both an asset and liability and that give rise to equal taxable and
deductible temporary differences. The Group plans on adopting the amendment for the
reporting period ending 30 June 2024. The impact of the initial application is not yet known.
The standards listed above did not have any material impact on the amounts recognised in
prior period and are not expected to significantly affect the current or future periods.
51
BOAB METALS LIMITED
51
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
3.
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT OBJECTIVES
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency
risk, price risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk
management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group.
Various methods are used to measure risks to which the Group is exposed, including sensitivity
analysis for interest rate, foreign exchange and other price risks, and ageing analysis for credit risk.
Risk management is carried out by the accounting team under Board approved policies covering
identification and analysis of risk exposure, risk limits, and appropriate procedures and controls.
Reporting is provided to the Board on a monthly basis.
MARKET RISK
(i)
Foreign Currency Risk
The Group completes certain transactions denominated in foreign currency and is
exposed to foreign currency risk through exchange rate fluctuations. Foreign
currency risk arises from future commercial transactions and recognised financial
assets and financial liabilities in a currency other than the Group’s functional
currency. The risk is measured using sensitivity analysis and cash flow forecasting.
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 on the Group’s
financial results.
(ii)
(iii)
Price Risk
Presently, the Group is not directly exposed to commodity price risk as it is in the
exploration phase. The Group is indirectly exposed to price movements for
commodities such as gold, copper and silver as these may affect the Group’s ability
to access capital markets.
Interest Rate Risk
The Group's main interest rate risk arises from cash and term deposits held at
variable interest rates as term deposits issued at fixed rates expose the Group to
fair value risk. The Group’s policy is to maximise interest rate returns, having regard
to the cash requirements of the business.
Annual Report for the Year Ended 30 June 2022
52
52
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
3. FINANCIAL RISK MANAGEMENT (CONTINUED)
MARKET RISK (Continued)
(iv) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual
obligations, resulting in financial loss to the Group. The maximum exposure to
credit risk at the reporting date to recognised financial assets is the carrying
amount (net of any provisions for impairment of those assets) as disclosed in the
statement of financial position and notes to the financial statements.
(v)
Liquidity Risk
Liquidity risk management requires the Group to maintain enough liquid assets to
pay debts as and when they fall due. The Group manages liquidity risk by
maintaining adequate cash reserves through continuously monitoring actual and
forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
INTEREST RATE RISK
The Group is exposed to market interest rate movements on short-term deposits. Group policy is
to monitor the interest rate yield curve to 120 days to ensure a balance is maintained between the
liquidity of cash assets and the interest rate return. At 30 June 2022, 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 $63,659 lower/higher (2021 – change of 100 bps: $114,575 lower/higher) as a result
of lower interest income.
53
BOAB METALS LIMITED
53
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
3.
FINANCIAL RISK MANAGEMENT (CONTINUED)
INTEREST RATE RISK (Continued)
The Group's exposure to interest rate risks and the effective interest rates of financial assets
and financial liabilities, both recognised and unrecognised at the balance date, are as
follows:
Floating
Interest
Rate
$
Fixed Interest Rate Maturing in:
>1 Year
$
1 - 5
Years
$
<5 Years
$
Non-
Interest
Bearing
Total Carrying
Amount
$
$
Financial Instrument
2022
Financial Assets
Cash and Cash Equivalents
Investments
Trade & Other Receivables
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and Accruals
Lease Liabilities
Total Financial Liabilities
6,317,527
-
-
48.399
6,365,926
-
-
-
-
-
-
-
-
-
-
-
-
60,000
-
350,051
-
26,490
-
- 436,541
-
-
-
-
-
69,974
- 69,974
-
-
30,220
30,220
-
-
-
589,433
26,838
-
- 616,271
Weighted average effective interest rate is 0.102%
2021
Financial Assets
Cash and Cash Equivalents
Trade & Other Receivables
Investments
Deposits
Total Financial Assets
Financial Liabilities
Trade Creditors
Other Creditors and Accruals
Lease Liabilities
Total Financial Liabilities
11,451,486
-
-
-
11,451,486
-
-
-
-
- -
- -
-
60,534
60,534
-
-
-
-
- 1,445,474
362,118
60,000
- 24,315
- 1,891,907
-
-
-
-
-
45,531
45,531
-
-
- 1,230,961
60,820
-
- -
- 1,291,781
1,230,961
60,820
45,531
1,337,312
6,317,527
60,000
350,051
74,889
6,802,467
589,433
26,838
100,194
716,465
12,896,960
362,118
60,000
84,849
13,403,927
NET FAIR VALUES
All financial assets and liabilities have been recognised at the balance date at amounts approximating
their carrying value.
54
BOAB METALS LIMITED
54
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
CREDIT RISK EXPOSURES
The Group has no significant concentrations of credit risk. The maximum exposure to credit risk
at balance date is the carrying amount (net of provision for doubtful debts) of those assets as
disclosed in the balance sheet and notes to the financial statements. A formal credit risk
management policy is not maintained.
4.
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified based on internal reports provided to the
Board in order to allocate resources to the segments and assess performance. Information
reported to the Board is based on exploration in the principal locations of the Group’s projects,
Australia and Colombia. The revenues and profit generated by each of the Group’s
operating segments, assets and liabilities are summarised as follows:
Australia
Colombia
Consolidation
Adjustments
Total
2022
$
2021
$
2022
$
2021
$
2022
$
2021
$
2022
$
2021
$
894,926
1,033,786
1
6
(643,435)
(518,164)
251,492
515,628
(6,787,157)
(5,055,395)
(17,366)
16,413
-
-
(6,804,523)
(5,038,982)
42,095,451
38,009,998
6,102
10,860
(30,434,157)
(19,356,976)
11,667,396
18,663,882
728,098
2,720,462
4,381
1,982
354,796
(1,040,100)
1,087,275
1,682,344
Segment
Revenues
Segment
Operating
(Losses)
Segment
Assets
Segment
Liabilities
5.
REVENUE
From Continuing Operations
Sorby Hills Project Revenue
Interest
Other Income
6.
EXPENSES
Loss Before Income Tax Includes the Following Expenses:
Depreciation of Plant and Equipment
Depreciation of ROU Asset
Exploration and Evaluation Expenditure
Write-down of Borroloola Exploration Asset
Gain on Sale of Subsidiary
BOAB METALS LIMITED
55
Consolidated
2022
$
160,662
35,915
54,915
251,492
2021
$
122,435
21,598
371,595
515,628
Consolidated
2022
$
17,087
64,559
4,436,882
1,024,672
-
2021
$
11,908
53,598
3,822,870
-
(36,289)
55
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
7.
INCOME TAX
Income Tax Expense/Benefit
Current Tax
Deferred Tax
Adjustments for Current Tax of Prior Years
Numerical Reconciliation of Income Tax
Expense to Prima Facie Tax Payable
Loss from Continuing Operations Before
Income Tax Expense
Prima Facie Tax Benefit at the Australian
Tax Rate of 25% (2021: 26%)
Tax Effect of Amounts which are not
Deductible (Taxable) in Calculating Taxable
Income
Other Items
Unrecognised Temporary Differences
Tax Effect of Current Year Tax Losses for
which no Deferred Tax Asset has been
recognised
Income Tax Expense/(Benefit)
Unrecognised Temporary Differences
Deferred Tax Assets
On Income Tax Account
S. 40-880 Deductions
Write off Acquired Tenement Costs over 15
years
Accruals and Provisions for Employee
Entitlements
Carry Forward Tax Losses
Deferred Tax Liabilities Prepayments
Total Unrecognised Temporary Differences
Consolidated
2022
$
2021
$
-
-
-
-
-
-
-
-
(6,804,523)
(5,038,982)
(1,701,131)
(1,310,135)
278,460
(1,422,671)
30,809
(1,279,326)
1,422,671
1,279,326
-
-
172,810
267,894
1,397,142
1,395,275
51,771
58,016
7,835,423
9,457,146
-
9,457,146
6,319,796
8,040,981
-
8,040,981
56
Annual Report for the Year Ended 30 June 2022 56
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
7.
INCOME TAX (CONTINUED)
Deferred Tax Liabilities
Beginning Exploration and Evaluation on
Acquisition
Reduction of Deferred Tax Liability Due to
Impairment
Deferred Tax Liability - Exploration and
Evaluation Assets
Consolidated
2022
$
2021
$
169,153
178,913
(6,506)
(9,760)
162,647
169,153
The deferred tax assets have not been brought to account, as it is not probable within the
immediate future that tax profits will be available against which deductible temporary differences
and tax losses can be utilised.
8.
CURRENT ASSETS - CASH AND CASH EQUIVALENTS
Cash at Bank
Cash and Cash Equivalents as Shown in the Consolidated
Statement of Financial Position and the Consolidated
Statement of Cash Flows
9.
CURRENT ASSETS - OTHER
Trade and Other Receivables
Prepayments
Consolidated
2022
$
6,317,527
2021
$
12,896,960
6,317,527
12,896,960
Consolidated
2022
$
350,051
36,458
386,509
2021
$
362,118
12,778
374,896
The above receivables are within initial trade terms and therefore have not been impaired.
57
BOAB METALS LIMITED
57
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
10.
NON-CURRENT ASSETS - EXPLORATION AND EVALUATION ASSETS
Balance at Beginning of the Year
Additions
Disposal/Write down of Assets(1)
Reduction of Deferred Tax Liability
Balance at the End of the Year
Consolidated
2022
$
5,160,560
538,658
(1,024,672)
(6,506)
4,668,040
2021
$
5,170,320
-
-
(9,760)
5,160,560
(1) During the current financial year the Group has written off its investment in the Borroloola Project
amounting to $1,024,672.
11.
NON-CURRENT ASSETS - OTHER
Bonds and Security Deposits
VAT Receivable
Consolidated
2022
$
74,889
-
74,889
2021
$
84,849
-
84,849
Bonds and security deposits of 74,889 (2021: $84,849), are in relation to a credit card facility and office lease
obligations.
12.
NON-CURRENT ASSETS - PLANT AND EQUIPMENT
Plant and Equipment
Cost
Accumulated Depreciation
Net Carrying Amount
Plant and Equipment - Movement
Opening Net Book Amount
Additions
Depreciation Charge
Foreign Exchange Translation
Closing Net Carrying Amount
Consolidated
2022
$
2021
$
110,304
(48,504)
61,800
87,288
(44,908)
42,380
42,380
36,507
(17,087)
-
61,800
10,076
44,212
(11,908)
-
42,380
Annual Report for the Year Ended 30 June 2022
58
58
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
13.
NON-CURRENT ASSETS - RIGHT OF USE ASSETS
ROU Asset - Building Lease
Building Lease at Cost
Accumulated Depreciation
Net Carrying Amount
ROU Asset - Movement
Opening Net Book Amount
Recognition of New ROU Asset
Depreciation Charge
Adjustments on Leasing Cost
Closing Net Carrying Amount
Amounts recognised in the Profit and Loss
Depreciation Expense on Right of Use Asset
Interest Paid on Lease Liabilities
Consolidated
2022
$
2021
$
139,244
(40,613)
98,631
106,854
(62,617)
44,237
44,237
139,459
(64,559)
(20,506)
98,631
99,206
-
(53,598)
(1,371)
44,237
(64,559)
(2,071)
(53,598)
(2,850)
On 1 December 2021, the Group entered into a lease of the premises on 4 Clive St. West Perth for two years.
Discounted cash flows were calculated using the Group’s incremental borrowing rate of 3.36% per annum.
14.
CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
Trade Payables
Other Payables and Accruals
Consolidated
2022
$
589,433
26,838
616,271
2021
$
1,230,961
60,820
1,291,781
The above payables are within initial trade terms and therefore are not past due.
15.
CURRENT LIABILITIES - PROVISIONS
Current
Provision for Annual Leave
Provision for Long Service Leave
16.
CURRENT AND NON-CURRENT - LEASE LIABILITIES
Maturity Analysis
Less than 1 year
Greater than 1 year
Consolidated
2022
$
143,093
65,070
208,163
2021
$
127,409
48,470
175,879
Consolidated
2022
$
2021
$
69,974
30,220
45,531
-
The Group has a lease for its main office premise at 4 Clive St. West Perth, which has been included in the
Right-of-use asset (Note 13) . The remaining lease is payable within 1 and a half years.
59
BOAB METALS LIMITED
59
Annual Report for the Year Ended 30 June 2022
60
NOTES TO THE FINANCIAL STATEMENTS ________________________________________________________ Annual Report for the Year Ended 30 June 2022 60 17. NON-CURRENT LIABILITIES – DEFERRED TAX LIABILITIES Consolidated 2022 2021 $ $ Deferred Tax Liabilities Comprise Temporary Differences Attributable to: Beginning Exploration and Evaluation on Acquisition 169,153 178,913 Movement as a Result of Change in Tax Rate (6,506) (9,760) Deferred Tax Liability 162,647 169,153 18. CONTRIBUTED EQUITY SHARE CAPITAL 2022 2021 Shares $ Shares $ Ordinary Shares Fully Paid 153,493,527 48,198,398 152,307,006 47,698,398 Total Contributed Equity 153,493,527 48,198,398 152,307,006 47,698,398 MOVEMENTS IN ORDINARY SHARE CAPITAL 2022 2021 Shares $ Shares $ Beginning of the Financial Year 152,307,006 47,698,398 2,888,104,604 32,980,318 Issued during the year: Share Placement/Share Purchase Plan - - 568,889,242 10,240,007 Conversion/Exercise of Options + Performance Rights - - 342,463,878 4,967,158 Cashless Issues - - 5,031,096 100,431 Shares Issued in Lieu of Director Fees - - 126,903 53,333 Share Consolidation Adjustments (25 to 1) - - (3,652,308,717) - Shares Issued for Manbarrum Acquisition 1,186,521 500,000 - - Less Transaction costs - - - (642,849) 153,493,527 48,198,398 152,307,006 47,698,398 BOAB METALS LIMITED NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
18.
CONTRIBUTED EQUITY (CONTINUED)
ORDINARY SHARES
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of
the Parent entity proportionate to the number of and amounts paid for shares held. On a show of
hands every holder of ordinary shares present at a meeting in person or by proxy is entitled to one
vote and upon a poll each share is entitled to one vote.
CAPITAL RISK MANAGEMENT
Safeguarding its ability to continue as a going concern is the Group’s objective when it comes to
managing capital in order to provide benefits to both shareholders and stakeholders and maintain
an optimal capital structure to reduce cost of capital. When an opportunity to invest in, or explore,
a project is seen as value adding relative to the share price at the time of investment, the Group
will seek to raise capital if required.
19.
DIVIDENDS
No recommendation for payment of dividends or dividend payments were made during the report
period.
20.
RESERVES
Share/option reserve is used to recognise the fair value of shares and options issued.
Share/Option Reserve
Foreign Currency Translation Reserve
SHARE/OPTION RESERVE
Balance at Beginning of Year
Reclassification of Performance Rights upon conversion to
ordinary shares
Issue of Options / Performance Rights
Reversal of Lapsed Performance Rights
Balance at End of Year
61
BOAB METALS LIMITED
Consolidated
2022
$
1,526,601
(333,442)
2021
$
1,623,811
(333,758)
1,193,159 1,290,053
Consolidated
2022
$
1,623,811
2021
$
1,653,328
-
(115,200)
- 85,683
-
1,623,811
(97,210)
1,526,601
61
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
20.
RESERVES (CONTINUED)
Details of movement in share options
Outstanding at Beginning of Year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the End of the Year
2022
2021
No of share
Options
Weighted
Average
Exercise
Price
No of share
Options
Weighted
Average
Exercise
Price
400,000
-
-
-
(400,000)
-
0.50
-
-
-
0.50
-
15,510,879
-
-
(13,908,555)
(1,202,324)
400,000
0.325
-
-
0.375
0.375
0.500
Details of movement in performance rights
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
2022
Number of
Performance
Rights
2021
Number of
Performance
Rights
2,020,000
-
(280,000)
-
(1,580,000)
160,000
2,500,000
280,000
-
(760,000)
-
2,020,000
FOREIGN CURRENCY TRANSLATION RESERVE
Foreign currency translation reserve is used to recognise exchange differences arising from the
translation of financial statements of foreign operations that do not use Australian dollars as their
functional currency.
Annual Report for the Year Ended 30 June 2022
62
62
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
20.
RESERVES (CONTINUED)
Balance at Beginning of Year
Exchange Differences Arising on Translation of Foreign
Operations
Balance at End of Year
21.
PARENT ENTITY INFORMATION
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total Non-Current Liabilities
Total Liabilities
Equity
Issued Capital
Share Based Payments Reserve
Accumulated Losses
Total Equity
Results of The Parent Entity
Loss for the Year
Other Comprehensive Income
Total Comprehensive Loss for the Year
Consolidated
2022
$
(333,758)
2021
$
(52,906)
316
(280,852)
(333,442)
(333,758)
Parent
2022
$
3,904,995
17,048,315
20,953,310
2021
$
11,981,411
10,798,170
22,779,581
410,373
30,220
440,593
2,008,773
-
2,008,773
48,198,398
1,526,601
(29,212,282)
20,512,717
47,698,398
1,623,811
(28,551,401)
20,770,808
(660,881)
-
(660,881)
(702,692)
-
(702,692)
63
BOAB METALS LIMITED
63
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
21.
PARENT ENTITY INFORMATION (CONTINUED)
CAPITAL AND CONTINGENT LIABILITIES
The parent entity had no capital or contingent liabilities as at 30 June 2022 (2021: Nil).
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in
Note 1, except for investments in subsidiaries being accounted for at cost (less any impairment) in
the parent entity.
22.
INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
wholly owned subsidiaries in accordance with the accounting policy described in Note 1b(i):
Subsidiary
Incorporated
Ownership
West Rock Resources Pty Ltd
Sorby Hills Pty Ltd
Sorby Management Pty Ltd
West Rock Resources Panama Corp.
Manbarrum Pty Ltd
Pacifico Minerals Sucursal Colombia (Branch)
Pacifico Holdings SAS
23.
REMUNERATION OF AUDITORS
Australia
Australia
Australia
Panama
Australia
Colombia
Colombia
2022
100%
100%
100%
100%
100%
100%
100%
2021
100%
100%
100%
100%
-
100%
100%
During the period the following fees were paid, or payable, for services provided by the auditors of
the Group.
Audit Services
Stantons Audit and Review of Financial Reports
Total Remuneration for Audit Services
No non-audit services were provided by Stantons.
Consolidated
2022
$
2021
$
52,408
52,408
53,141
53,141
Annual Report for the Year Ended 30 June 2022
64
64
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
24.
COMMITMENTS AND CONTINGENCIES
The Group plans to conduct exploration work on its tenements to meet obligations and retain rights
of tenure. If required, the Group can reduce these expenditure obligations by establishing joint
venture agreements, applications for expenditure exemptions, or selective relinquishment of
exploration tenements. Due to the nature of the Group’s operations in exploring and evaluating
areas of interest, it is difficult to accurately forecast future expenditure. The annual commitment
across the Group for the next year is $1,978,574 (2021: $2,222,694).
Exploration Commitments
Within One Year
Later than One Year But Not Later Than Five Years
Over Five Years
Consolidated
2021
2022
$
$
1,978,574
2,222,694
2,190,371 2,124,654
1,271,286
5,618,634
976,896
5,145,841
There are no material contingent assets of the Group at balance date (2021: Nil). In 2019 the
acquisition of the Sorby Hills Project included a provision for a 1% net smelter royalty payable to
Quintana MH Holding Company LLC that has been classified as a material Contingent Liability, this
is still in existence as at balance date 30 June 2022.
The terms of the acquisition of the Manbarrum Project included a 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 potential project financiers provided certain
conditions are met. Boab has retained the right to buy-back the royalty at market value subject to
the completion of a Pre-Feasibility Study on the Manbarrum Project.
25.
INTERESTS IN JOINT OPERATIONS
The Group recognises its share of jointly held assets, liabilities, revenues and expenses of joint
operations. These have been incorporated into the financial statements under the appropriate
classifications.
65
BOAB METALS LIMITED
65
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
25.
INTERESTS IN JOINT OPERATIONS (CONTINUED)
Information relating to joint operations that are material to the Group are set out below:
•
•
•
Borroloola West Project (Boab 51%). Net assets carried as at 30 June 2022 are Nil (2021:
$1,024,672).
Mt Jukes Project (Boab 14.8%). Net assets carried as at 30 June 2022 are nil (2021: Nil).
Sorby Hills Project (Boab 75%). Net assets carried as at 30 June 2022 are $7,404,482 after
write off of exploration costs of $8,868,342 (2021: $5,302,903 after write off of exploration
costs of $3,561,515).
26.
EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
There have been no other matters that would require disclosure subsequent to the end of the
financial year.
Annual Report for the Year Ended 30 June 2022
66
66
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
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
Depreciation of Non-Current and ROU Assets
Interest on Lease Liabilities
Share Based Payments - Director/Staff Options
Sale of Investments (Non-Cash)
Write Down of Borroloola investment
Sale of Investment (consideration received included in
investing activities
Foreign Exchange (Gain)/Loss
Consolidated
2022
$
(6,804,523)
2021
$
(5,038,982)
81,646
2,071
(97,210)
-
1,024,672
65,506
2,850
186,114
(96,289)
-
-
(192,175)
-
-
Change in Operating Assets and Liabilities
(Increase)/Decrease in Trade and Other Receivables
Decrease/(Increase) in Prepayments
Increase/(Decrease) in Operating, Trade and Other Payables
Increase/(Decrease) in Provisions
Net Cash Outflow from Operating Activities
9,786
(23,680)
(714,289)
32,284
(6,489,243)
(173,186)
4,743
607,928
79,974
(4,553,517)
28.
LOSS PER SHARE (POST CONSOLIDATION)
RECONCILIATION OF EARNINGS USED IN CALCULATING LOSS PER SHARE
Loss attributable to the ordinary equity holders of the Parent
Entity used in calculating basic and diluted loss per share
Consolidated
2022
$
2021
$
(6,804,523)
(5,038,982)
67
BOAB METALS LIMITED
67
Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
28.
LOSS PER SHARE (POST CONSOLIDATION) - CONTINUED
WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Weighted average number of ordinary shares used as the
denominator in calculating basic and diluted loss per share
153,226,966
141,759,237
Number of Shares
2022
2021
29.
SHARE BASED PAYMENTS
ORDINARY SHARES
Share Based Payments
Issued to Directors
Issued to Key Management Personnel
Reversal of previously recognised expense due to Performance
Right being forfeited or expiring prior to vesting
Consolidated
2022
$
-
-
2021
$
-
-
(97,210)
(97,210)
-
186,114
During the year no shares were issued to Directors or consultants (2021: 201,244). There were no ordinary
shares issued to Directors in lieu of cash payments (2021: 126,903).
OPTIONS OVER ORDINARY SHARES
No Options were issued in 2022 (2021: Nil) and there were no options on issue as at 30 June 2022.
Annual Report for the Year Ended 30 June 2022
68
68
BOAB METALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
________________________________________________________
29.
SHARE BASED PAYMENTS (CONTINUED)
Performance Rights
No Performance Rights were granted during the year to Directors and Key Management Personnel
(2021: 280,000). During the year, a total of 780,000 Class "B" and 800,000 Class “C” Performance
Rights were cancelled as the milestones attaching to them could not be met. Furthermore 120,000
Class “B” and 160,0000 Class “D” Performance Rights were forfeited and cancelled due to Key
Management Personnel ceasing employment.
Details
Class "D" Performance Rights
Performance
Rights
160,000
160,000
Exercise Price
Grant Date
Expiry Date
Nil
20/03/2020
6/03/2025
30.
RELATED PARTY TRANSACTIONS
Other than the transactions with Directors and Key Management Personnel as disclosed in the
Remuneration Report, there were no related party transactions to report for the period.
KEY MANAGEMENT PERSONNEL COMPENSATION
Short Term Employee Benefit
Share Based Payments
Post-Employment Benefit
Consolidated
2022
$
730,862
(97,210)
67,591
701,243
2021
$
699,415
166,600
54,436
920,451
69
BOAB METALS LIMITED
69
Annual Report for the Year Ended 30 June 2022
70
DIRECTORS’ DECLARATION ________________________________________________________ Annual Report for the Year Ended 30 June 2022 70 The Directors of the Company declare that: 1. The financial statements accompanying the notes are in accordance with the Corporations Act 2001, and: a. Comply with Accounting Standards, the Corporations Act 2001 and other mandatory professional reporting requirements; b. Give a true and fair view of the financial position as at 30 June 2022 and of the performance for the report period for the consolidated entity. 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 interpretations issued by the International Accounting Standards Board. 4. The remuneration disclosures as set out on pages 21-27 of the Directors’ Report comply with Accounting Standards AASB 124 Related Party Disclosures and section 300A of the Corporations Act 2001. 5. The Directors have been given the declarations required under section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the Directors. Gary Comb Chairman 2 September 2022 . BOAB METALS LIMITED INDEPENDENT AUDITOR’S REPORT
________________________________________________________
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
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
2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial 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 2022 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 following matters described 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.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
71
BOAB METALS LIMITED
71
DIRECTORS’ DECLARATION ________________________________________________________ Annual Report for the Year Ended 30 June 2022 70 The Directors of the Company declare that: 1. The financial statements accompanying the notes are in accordance with the Corporations Act 2001, and: a. Comply with Accounting Standards, the Corporations Act 2001 and other mandatory professional reporting requirements; b. Give a true and fair view of the financial position as at 30 June 2022 and of the performance for the report period for the consolidated entity. 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 interpretations issued by the International Accounting Standards Board. 4. The remuneration disclosures as set out on pages 21-27 of the Directors’ Report comply with Accounting Standards AASB 124 Related Party Disclosures and section 300A of the Corporations Act 2001. 5. The Directors have been given the declarations required under section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the Directors. Gary Comb Chairman 2 September 2022 . Annual Report for the Year Ended 30 June 2022 72
INDEPENDENT AUDITOR’S REPORT ________________________________________________________Key Audit Matters How the matter was addressed in the audit Carrying Value of Exploration and Evaluation Assets As at 30 June 2022, the carrying value of the Group’s Exploration and Evaluation Assets totalled $4,668,040, 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 (40% 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 overexploration assets by corroborating theownership of the relevant licences formineral resources to government registriesand relevant third-party documentation;ii.Examined the directors’ assessment of thecarrying value of the exploration andevaluation expenditure, ensuring theveracity of the data presented and thatmanagement has considered the effect ofpotential impairment indicators, commodityprices and the stage of the Group’sprojects against AASB 6;iii.Evaluation of Group documents forconsistency with the intentions for thecontinuation of exploration and evaluationactivities in certain areas of interest andcorroborated with enquiries ofmanagement. Inter alia, the documents weevaluated included:Minutes of meetings of the board andmanagement;Announcements made by the Group tothe Australian Securities Exchange;andCash flow forecasts; andiv.Assessed the financial statements toensure 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 Inter alia, our audit procedures included the following: i.Evaluating management’s assessmentand judgement of concluding that thearrangement is a joint operation in relationto the relevant accounting standards(including AASB 11) and ensuring thecorrect treatment is adopted;ii.Reviewing the consolidation worksheets toensure that the Sorby Hills Project hasbeen accounted for as a joint operation and Annual Report for the Year Ended 30 June 2022 72 BOAB METALS LIMITED 73
INDEPENDENT AUDITOR’S REPORT ________________________________________________________accounts for its proportionate share of the assets and liabilities of the project. Accounting for the Sorby Hills Project is a key audit matter due to: •The significance of the total assets andliabilities of the joint venture; and•The nature and complexities involved inaccounting as well as the judgement in thedetermination of whether the Group has aninterest in the net assets or rights to theassets and obligations for liabilities andtherefore, the accounting treatment inaccordance with the relevant accountingstandards. Under AASB 11 JointArrangements (“AASB 11”), if a party hasthe rights to the assets and the obligationsfor the liabilities of a joint arrangement,then the joint arrangement is considered tobe a “joint operation” and those assets andliabilities should be recognised by theparties to the joint arrangement.therefore, the Group has accounted for their share of the assets and liabilities (proportionate basis) of the Sorby Hills Project; iii.Testing controls over expenditure in thejoint operation and appropriate substantiveaudit procedures in relation to assets,liabilities and expenses of the jointoperation; andiv.Assessing the financial statements toensure adequacy of the disclosures made.OTHER INFORMATION The directors are responsible for the other information. The other information comprises the information in the Group's annual report for the year ended 30 June 2022 but does not include the financial report and 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. 73 BOAB METALS LIMITEDAnnual Report for the Year Ended 30 June 2022 74
INDEPENDENT AUDITOR’S REPORT ________________________________________________________AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL REPORT Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with 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. Annual Report for the Year Ended 30 June 2022 74 INDEPENDENT AUDITOR’S REPORT ________________________________________________________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. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 21 to 27 of the directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Boab Metals Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 2 September 2022 75 BOAB METALS LIMITEDBOAB METALS LIMITED 75
INDEPENDENT AUDITOR’S REPORT ________________________________________________________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. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 21 to 27 of the directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Boab Metals Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 2 September 2022 75 BOAB METALS LIMITEDAnnual Report for the Year Ended 30 June 2022 SHAREHOLDER INFORMATION
AS AT 30 AUGUST 2022
________________________________________________________
Additional information is set out below in accordance with the listing rules of the Australian Stock
Exchange Limited and is current as at 30 August 2022.
1.
STATEMENT OF ISSUED CAPITAL
Distribution 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
159
1,177
522
1,056
227
3,141
38,638
0.03%
3,238,012 2.11%
2.62%
23.00%
72.24%
100.00%
4,020,902
35,306,993
110,888,982
153,493,527
Ordinary shares carry one vote per share without restriction. The number of fully paid ordinary
shareholdings held in less than marketable parcels is 611 (based on a share price of $0.24).
Distribution of holdings for Performance Rights on issue:
Performance Rights on issue expire on 6 March 2025 and have vesting conditions attached. Each
Performance Right vests into one Ordinary Fully Paid Share on conversion.
Number of Holders by Holding
Size
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Holders
Total Units
0
0
0
0
1
1
0
0
0
0
160,000
160,000*
% of Issued
Capital
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
*Performance Shares do not carry any voting rights until they vest and are converted into Ordinary Fully Paid
shares.
• 160,000 class “D” Performance Rights are on issue and they are held by 1 holder being
Bluedale Pty Ltd.
Annual Report for the Year Ended 30 June 2022
76
76
BOAB METALS LIMITED
SHAREHOLDER INFORMATION
AS AT 30 AUGUST 2022
______________________________________________________
1.
STATEMENT OF ISSUED CAPITAL (CONTINUED)
On-Market Buy back
There is no current on-market buy back.
Restricted Securities
The Company has no restricted securities currently on issue.
SUBSTANTIAL SHAREHOLDERS
Holder**
VILLIERS QUEENSLAND PL*
Number
15,528,133
%
10.20
* 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 information.
77
BOAB METALS LIMITED
77
Annual Report for the Year Ended 30 June 2022
SHAREHOLDER INFORMATION
AS AT 30 AUGUST 2022
______________________________________________________
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 39.29% of these
shares:
Position
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Holder Name
VILLIERS QUEENSLAND PL*
ZERO NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
MR BRENT DAVID CONNOLLY
SURPION PTY LTD
MR GRAHAM CHARLES POWELL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MATORICZ SUPER PTY LTD
SIMON NOON*
BNP PARIBAS NOMS PTY LTD
LADAKH PTY LTD
MR GABOR MATORICZ
JACANA GLEN PTY LTD
MIEI RAGAZZI PTY LTD
BNP PARIBAS NOMINEES PTY LTD
RICHARD MONTI*
EQUITY TRUSTEES LIMITED
TODD RIVER METALS PTY LTD
CRAIG CHAPMAN
TRAVIS CLARK
Total
Total Issued Capital - Ordinary Shares
Holding
16,110,933
6,833,334
5,785,686
4,445,000
2,600,000
2,500,000
2,107,464
2,100,000
1,882,000
1,872,265
1,773,182
1,753,991
1,700,000
%
10.50%
4.45%
3.77%
2.90%
1.69%
1.63%
1.37%
1.37%
1.23%
1.22%
1.16%
1.14%
1.11%
1,523,000
1,380,807
0.99%
0.90%
1,324,982
1,261,659
0.86%
0.82%
1,186,521
1,100,000
1,060,000
60,300,824
0.77%
0.72%
0.69%
39.29%
153,493,527 100.00%
*Denotes merged holders.
Annual Report for the Year Ended 30 June 2022
78
78
BOAB METALS LIMITED
SHAREHOLDER INFORMATION
AS AT 30 AUGUST 2022
______________________________________________________
3.
UNQUOTED SECURITIES
There were no holders with more than 20% of any unlisted class of security (other than those acquired
under an employee incentive scheme).
4.
SCHEDULE OF INTERESTS IN MINING TENEMENTS HELD
Farm-In Agreements/
Project 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
Manbarrum Project
EL24395
MA24518
MA26581
Urrao Project
2791
Location
% Held
Western Australia
Northern Territory
Australia
Northern Territory
Australia
Colombia
75%
75%
75%
75%
75%
100%
100%
51%
51%
51%
51%
51%
51%
100%
100%
100%
100%
79
BOAB METALS LIMITED
79
Annual Report for the Year Ended 30 June 2022
The Company has executed several strategic growth initiatives throughout the year.
The acquisition of the Manbarrum Zinc-Silver-Lead Project, located 25m east of Sorby
Hills, and the commencement of drilling at our highly prospective Eight Mile Creek Project,
located immediately south of Sorby Hills, are two such initiatives that demonstrate high
potential to generate long-term value for shareholders.
80
BOAB METALS LIMITED CORPORATE DIRECTORY
DIRECTORS
Gary Comb (Executive Director and Chairman)
Simon Noon (Managing Director & CEO)
Richard Monti (Non-Executive Director)
Andrew Parker (Non-Executive Director)
COMPANY SECRETARY
Jerry Monzu
REGISTERED OFFICE
4 Clive Street
WEST PERTH WA 6005
SHARE REGISTRY
Automic Group Pty Ltd
Level 5
191 St Georges Terrace
PERTH WA 6000
BANKERS
Level 1
1275 Hay Street
WEST PERTH WA 6005
Australian and New Zealand Banking Group Limited
AUDITORS
Stantons International Audit and Consulting Pty Ltd
40 Kings Park Road
WEST PERTH WA 6005
SECURITIES EXCHANGE LISTING
Boab Metals Limited shares are listed on the
Australian Securities Exchange (Home Branch - Perth)
ASX Code: BML
WEBSITE ADDRESS
www.boabmetals.com
T
R
O
P
E
R
L
A
U
N
N
A
2
2
0
2
BOAB METALS LIMITED
4 Clive St, West Perth WA 6005
TEL: (08) 6268 0449
www.boabmetals.com
ABN 43 107 159 713