ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
(formerly Stone Resources Australia Limited) ABN 44 100 727 491 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021 this page left blank
intentionally
ABOVE: Strike Drilling RC Rig on Site at Cork Tree Well.
BELOW: Brightstar Processing Facility.
Brightstar Resources Limited
Contents
Corporate Information
Chairman’s Letter to Shareholders
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Corporate Governance Statement
ASX Additional Information
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Brightstar Resources Limited
CORPORATE INFORMATION
ABN 44 100 727 491
Directors
Mr William Hobba – Executive Director
Mr Yongji Duan – Chairman (Non-Executive)
Mr Josh Hunt – Director (Non-Executive)
Other Key Officers
Mr Luke Wang – Company Secretary
Registered and Principal Office
3/25 Belgravia Street
Belmont WA 6104
Telephone: (618) 9277 6008
Facsimile: (618) 9277 6002
Email: info@brightstarresources.com.au
www.brightstarresources.com.au/
Share register
Computershare Investor Services Pty Limited
Level11, 172 St Georges Terrace
Perth WA 6000
Telephone; (618) 9323 2000
Facsimile: (618) 9323 2033
Free call: 1300 787272
Solicitors
Hunt DRG
137 Curtin Avenue,
Cottesloe WA 6011
Lawton Macmaster Legal
Suite 2, 257 York Street,
Subiaco WA 6008
Bankers
Westpac Banking Corporation
1257-1261 Hay Street,
West Perth WA 6005
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11, 12-14 The Esplanade
Perth WA 6000
Securities Exchange Listings
ASX Code: BTR
CORPORATE INFORMATION
ABN 44 100 727 491
Directors
Mr William Hobba – Executive Director
Mr Yongji Duan – Chairman (Non-Executive)
Mr Josh Hunt – Director (Non-Executive)
Other Key Officers
Mr Luke Wang – Company Secretary
Registered and Principal Office
3/25 Belgravia Street
Belmont WA 6104
Telephone: (618) 9277 6008
Facsimile: (618) 9277 6002
Email: info@brightstarresources.com.au
www.brightstarresources.com.au/
Share register
Computershare Investor Services Pty Limited
Level11, 172 St Georges Terrace
Perth WA 6000
Telephone; (618) 9323 2000
Facsimile: (618) 9323 2033
Free call: 1300 787272
Solicitors
Hunt DRG
137 Curtin Avenue,
Cottesloe WA 6011
Lawton Macmaster Legal
Suite 2, 257 York Street,
Subiaco WA 6008
Bankers
Westpac Banking Corporation
1257-1261 Hay Street,
West Perth WA 6005
Auditors
Pitcher Partners BA&A Pty Ltd
Level 11, 12-14 The Esplanade
Perth WA 6000
Securities Exchange Listings
ASX Code: BTR
-1-
Brightstar Resources Limited
CHAIRMAN’S LETTER TO SHAREHOLDERS
- 2 -
Brightstar Resources Limited
Brightstar Resources Limited (Brightstar or the Company) has successfully completed the significant debt
cancellation and share cancellation (DECA) after having shareholders’ approval at the AGM on 16 November
2020. The DECA recapitalisation has provided the Company a fresh start for the development as a junior gold
exploration and development company.
Brightstar has achieved a number of acquisitions during the year:
On 8 February 2021, the Company has acquired a prospective exploration licence in Western Australia,
E38/3438 from Mining Equities Pty Ltd. This tenement is prospective brownfields ground less than 15km from
our Brightstar plant and adjacent to a number of our existing prospecting and exploration licences.
On 6 April 2021, the Company has acquired an exploration licence E38/3279 (Ophir Bore) which is located
immediately adjacent to Brightstar’s existing exploration licences E38/3331 and E38/2411 and consolidates
Brightstar’s exploration ground less than ten kilometres east of the Granny Smith Mine operated by Goldfields
Limited.
The Company has been busy finalising its Three-Year Strategic Plan:
On 17 December 2020, the Company commenced a sub-audio magnetics (SAM) survey programme conducted
by GAP Geophysics on the Company’s Cork Tree Well Project in the Laverton region of Western Australia. The
SAM programme results released on 9 June 2021 has provided great insight into the continuation of the
lithological and structural features that host the Cork Tree Well deposits to the south. The SAM survey results
been utilised to assist the development of the Three-Year Strategic Plan.
On 22 February 2021, the Company has appointed Ian Pegg who is the former Granny Smith Mining Company
Exploration Superintendent as Brightstar’s exploration manager. Ian’s expertise on the geology of the Laverton
region can support the Company in finalising our three-year strategy for Brightstar.
On 5 May 2021, the Company has received a report prepared by Como Engineers Pty Ltd that confirms an
estimated cost of $5.5 million to refurbish the Brightstar Processing Plant at the Company’s flagship Brightstar
Gold Project, near Laverton in the northern Goldfields.
On 15 September 2021, the Company has appointed Strike Drilling as the drill contractor for Mineral Resource
development drilling at Brightstar’s Cork Tree Well Project in the Laverton district of Western Australia.
Brightstar has also entered into a Royalty Call Option Deed with Stone Resources (HK) Limited (SRHK) on 27
September 2021. SRHK is the payee of a 3% net smelter royalty (NSR) over a substantial portion of Brightstar’s
tenement holdings, which was granted as part of the consideration given to SRHK under the DECA. Under the
Call Option Deed, SRHK has agreed to grant Brightstar an option to purchase the NSR (Call Option).
I wish to thank Mr Hobba and Mr Hunt for the difficult task of successfully negotiating the Company’s
Restructuring, our Employees at the Belmont Office and Laverton site for their excellent efforts.
I believe we will seize the potential of our valuable mining assets to bring abundant rewards to our shareholders.
To all our shareholders, I express my appreciation of your confidence, support and loyalty.
Yours truly,
Yongji Duan
Chairman
Perth, 1 October 2021.
- 3 -
Brightstar Resources Limited
DIRECTORS’ REPORT
Your directors submit the annual financial report of the consolidated entity consisting of Brightstar Resources Limited (“BTR”
or “Company”) and the entities it controlled during the financial year ended 30 June 2021 (“Group”). In order to comply with
the provisions of the Corporations Act, the directors report as follows:
Directors
The names of directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience, and special responsibilities
William Hobba
Managing Director (Appointed on 3 December 2020, Executive Director 10 September 2020 to 2 December 2020, Non-
Executive Director 1 July 2020 to 9 September 2020)
William Hobba has been a director of Brightstar for the past seven years. Mr Hobba has previously served as a non-
executive director and technical advisor of Brightstar. Mr Hobba’s appointment to the position of Managing Director reflects
the leadership role he has assumed in helping the company recapitalisation and plan to return to production. Mr Hobba is
an experienced minesite technical advisor who brings 40 years of operational experience in developing mine sites to his
role, including over ten years’ experience constructing and operating the Brightstar plant.
Mr Hobba holds no directorships in other listed companies in Australia.
Yongji Duan
Chairman (Non-Executive)
Yongji Duan is the Chairman of the board of directors of Stone Resources Limited, a previous major shareholder of Brightstar
Resources Limited. He joined Stone Group Corporation in 1985 and has served as Vice President and President prior to
his promotion to the Chairman of its board of directors in 1999. He was appointed President and Chief Executive Officer of
Stone Group Holdings Limited and its subsidiaries in 2002.
As a well-known entrepreneur and business leader in China, Mr Duan has achieved outstanding performances. From 1999
to 2007, he has held the position as Director of Beijing Centergate Technologies (Holding) Co. Ltd., a company listed on
Shenzhen Stock Exchange. From 2003 to 2008, he also served as Director of SINA Corporation (NASDAQ: SINA).
Mr Duan graduated from Tsinghua University and was a researcher at Beijing University of Aeronautics & Astronautics. He
acted as Vice Director of 621 Laboratory at China National Space Administration from 1982 to 1984.
Mr Duan holds no other directorships in other listed companies in Australia.
Josh Hunt
Director (Non-Executive)
Josh Hunt is an experienced capital markets and M&A lawyer and has extensive experience in all aspects of mining and
energy project acquisitions and disposals and general mining legislation compliance throughout Australia. He has advised
on numerous IPOs, fundraisings, and acquisitions by both public and private companies on the ASX and internationally. Mr
Hunt will assist the Brightstar board with corporate governance, company law and capital market management going
forward.
Mr Hunt holds no other directorships in other listed companies in Australia.
Yong Han
Executive Director (Resigned on 18 November 2020)
Mr Han joined the Company management team in November 2011. Prior to his appointment as CEO, Mr Han was the
executive vice president of Stone Resources Limited, a previous major shareholder of Brightstar Resources Limited.
He was appointed President of Shaanxi Ma’anqiao & Mine Industry Co., Ltd., in 1993. Since 1998, he has been Tenure
Researcher at China Academy of Management Science. He held the position of Vice Chairman of Shaanxi Gold Association
in 2005.
Mr Han is a senior economist and a Chinese certified professional manager.
Mr Han holds no other directorships in other listed companies in Australia.
DIRECTORS’ REPORT
- 3 -
Your directors submit the annual financial report of the consolidated entity consisting of Brightstar Resources Limited (“BTR”
or “Company”) and the entities it controlled during the financial year ended 30 June 2021 (“Group”). In order to comply with
the provisions of the Corporations Act, the directors report as follows:
The names of directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Names, qualifications, experience, and special responsibilities
Directors
William Hobba
Managing Director (Appointed on 3 December 2020, Executive Director 10 September 2020 to 2 December 2020, Non-
Executive Director 1 July 2020 to 9 September 2020)
William Hobba has been a director of Brightstar for the past seven years. Mr Hobba has previously served as a non-
executive director and technical advisor of Brightstar. Mr Hobba’s appointment to the position of Managing Director reflects
the leadership role he has assumed in helping the company recapitalisation and plan to return to production. Mr Hobba is
an experienced minesite technical advisor who brings 40 years of operational experience in developing mine sites to his
role, including over ten years’ experience constructing and operating the Brightstar plant.
Mr Hobba holds no directorships in other listed companies in Australia.
Yongji Duan
Chairman (Non-Executive)
Yongji Duan is the Chairman of the board of directors of Stone Resources Limited, a previous major shareholder of Brightstar
Resources Limited. He joined Stone Group Corporation in 1985 and has served as Vice President and President prior to
his promotion to the Chairman of its board of directors in 1999. He was appointed President and Chief Executive Officer of
Stone Group Holdings Limited and its subsidiaries in 2002.
As a well-known entrepreneur and business leader in China, Mr Duan has achieved outstanding performances. From 1999
to 2007, he has held the position as Director of Beijing Centergate Technologies (Holding) Co. Ltd., a company listed on
Shenzhen Stock Exchange. From 2003 to 2008, he also served as Director of SINA Corporation (NASDAQ: SINA).
Mr Duan graduated from Tsinghua University and was a researcher at Beijing University of Aeronautics & Astronautics. He
acted as Vice Director of 621 Laboratory at China National Space Administration from 1982 to 1984.
Mr Duan holds no other directorships in other listed companies in Australia.
Josh Hunt
Director (Non-Executive)
forward.
Yong Han
in 2005.
Josh Hunt is an experienced capital markets and M&A lawyer and has extensive experience in all aspects of mining and
energy project acquisitions and disposals and general mining legislation compliance throughout Australia. He has advised
on numerous IPOs, fundraisings, and acquisitions by both public and private companies on the ASX and internationally. Mr
Hunt will assist the Brightstar board with corporate governance, company law and capital market management going
Mr Hunt holds no other directorships in other listed companies in Australia.
Executive Director (Resigned on 18 November 2020)
Mr Han joined the Company management team in November 2011. Prior to his appointment as CEO, Mr Han was the
executive vice president of Stone Resources Limited, a previous major shareholder of Brightstar Resources Limited.
He was appointed President of Shaanxi Ma’anqiao & Mine Industry Co., Ltd., in 1993. Since 1998, he has been Tenure
Researcher at China Academy of Management Science. He held the position of Vice Chairman of Shaanxi Gold Association
Mr Han is a senior economist and a Chinese certified professional manager.
Mr Han holds no other directorships in other listed companies in Australia.
Brightstar Resources Limited
Brightstar Resources Limited
- 4 -
DIRECTORS’ REPORT (continued)
Directors (continued)
Kaiye Shuai
Non-Executive Director (Resigned on 18 November 2020)
Dr Kaiye Shuai served as Chief Executive Officer from November 2011 and resigned from the latter position in January
2014, continuing as a Non-Executive Director. He is a director of Stone Resources Limited, a previous major shareholder
of the Company. He was appointed Chief Geologist of Stone Resources Limited and was also appointed to its board of
directors in 2007. Dr Shuai is an experienced geologist with a wealth of expertise in the mining sector.
Prior to his appointment, he has been Professor in China University of Geosciences for over 10 years. Early in his
professional career, Dr Shuai served as Geological Engineer in No. 16 Geological Team at Yunnan Provincial Geology
Bureau from 1970 to 1979. He has participated in the exploration of Potash, Copper, and Iron Deposit in Yunnan province
in
the 1980s.
Dr Shuai graduated from Chengdu Geology College in 1970. He received his Doctorate and Master degree from China
University of Geosciences in the 1980s. From 1991 to 1992, he was a visiting professor at California Santa Barbara (UCSB)
in the United States of America.
Dr Shuai holds no other directorships in other listed companies in Australia.
the exploration of Zhaoyuan Gold mine
in Shandong province
the 1970s and
in
Fang Lu
Executive Director (Resigned on 18 November 2020)
Mr Fang Lu is the vice president of Stone Resources Limited since 2000, a previous major shareholder of Brightstar
Resources Limited, having joined the latter in 1990. Mr Lu is the vice president of Beijing Stone New Technology Industrial
Company and Beijing Stone Investment Co., Ltd.
Mr Lu graduated from Beijing University of Aeronautics and was a visiting scholar at McMaster University (Canada) in 1988.
Mr Lu holds no directorships in other listed companies.
Other Key Management Personnel
Luke Wang
Joint Company Secretary (Appointed on 24 November 2020)
Mr Wang is a Certified Practising Accountant. He joined the Company in 2012. In addition to the Company Secretary work,
Mr Wang is also managing the Company’s accounting and financial reporting, as well as assisting with tenement
management and various administration tasks.
Tony Lau, FCPA (HK)
Joint Company Secretary (Resigned on 19 July 2021)
Mr Lau has over 20 years of audit, accounting, and corporate finance experience. He worked in PricewaterhouseCoopers
in Hong Kong for 12 years and thereafter held a senior finance executive for a number of PRC Groups in Hong Kong. He
had extensive exposures in working on complex projects including overseas mergers, acquisitions, and IPOs.
Sheng Hui Lu
Deputy Executive Officer / Joint Company Secretary (Resigned on 24 November 2020)
Mr Lu has more than 25 years as senior manager and an entrepreneur in various companies in China and in Australia. He
has rich experience in management. He is a well-known writer and community leader of the Chinese Community in Perth.
He is part time Chief Editor of “Oceania Times” in WA. He holds a Bachelor of Arts Degree from China and a post graduate
certificate in marketing from Australia.
DIRECTORS’ REPORT (continued)
- 5 -
Interests in the shares and options of the company and related bodies corporate
The following relevant interests in shares and options of the company or a related body corporate were held by the
directors as at the date of this report.
Brightstar Resources Limited
Directors
William Hobba (Managing Director)
Yongji Duan (Non-Executive Chairman)
Josh Hunt (Non-Executive Director)
Number of options
over ordinary shares
Number of fully paid
ordinary shares
-
-
-
68,727,775
31,449,497
3,357,999
There were no options granted to key management personnel (directors and executives) during the year.
There were no ordinary shares issued by the company during or since the end of the financial year as a result of the exercise
of an option.
There are no unpaid amounts on the shares issued.
Dividends
No dividends have been paid or declared since the start of the financial year and the directors do not recommend the
payment of a dividend in respect of the financial year.
Principal Activities
The principal activities of the Group during the financial year were mineral exploration.
There has been no significant change in the nature of these activities during the financial year.
Results
The consolidated profit after income tax attributable to the members of the Group was $60,551,860 (2020: $6,617,894 loss).
Significant change in state of affairs
During the year ended 30 June 2021, the Group completed the divestment of its Ben Hur project and a Debt and Equity
Compromise Agreement with related entities. These changes allow the Group to focus on its core exploration activities,
being the Cork Tree Well, Beta, Alpha and Hawkes Nest projects located nearby to Laverton in Western Australia.
Review of operations
Corporate
On 16 November 2020, shareholders approved a change of name of the Company from Stone Resources Australia Limited
to Brightstar Resources Limited.
The Group completed divestment of its Ben Hur project in September 2020 and the execution of the Debit and Equity
Compromise Agreement (“DECA”) in November 2020.
Upon completion of the DECA, the debt totalling $57,252,627 that the Company owed to its previous major shareholder and
major debt provider (Stone Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”) has extinguished (30
June 2020: $55,524,813). The net profit mentioned above is primarily caused by the debt cancellation.
A selective buy-back of 433,452,944 shares previously held by SRL and SRHKL were cancelled at the same time. The total
consideration for the buy-back was $11,400,000.
At the end of the financial year the Group had $985,036 (2020: $50,032) in cash and cash equivalents. The Group’s
capitalised exploration, evaluation and development expenditure totalled $9,313,231 (2020: $2,686,636).
During the year the Company issued 33,150,000 shares to two key management personnel of the Company as part
remuneration for services rendered. The Company also issued 4,000,000 shares and 1,000,00 options to an unrelated party
for the purchase of an exploration licence. 17,000,000 unlisted options were issued by Company to corporate advisors as
consideration for consulting services provided.
As at 30 June 2021, the Company had 439,750,764 shares on issue (2020: 836,053,708) and 33,000,000 unlisted options
(2020: 15,000,000).
DIRECTORS’ REPORT (continued)
- 5 -
Interests in the shares and options of the company and related bodies corporate
The following relevant interests in shares and options of the company or a related body corporate were held by the
directors as at the date of this report.
Brightstar Resources Limited
Directors
William Hobba (Managing Director)
Yongji Duan (Non-Executive Chairman)
Josh Hunt (Non-Executive Director)
Number of options
Number of fully paid
over ordinary shares
ordinary shares
-
-
-
68,727,775
31,449,497
3,357,999
There were no options granted to key management personnel (directors and executives) during the year.
There were no ordinary shares issued by the company during or since the end of the financial year as a result of the exercise
There are no unpaid amounts on the shares issued.
No dividends have been paid or declared since the start of the financial year and the directors do not recommend the
payment of a dividend in respect of the financial year.
The principal activities of the Group during the financial year were mineral exploration.
There has been no significant change in the nature of these activities during the financial year.
of an option.
Dividends
Principal Activities
Results
The consolidated profit after income tax attributable to the members of the Group was $60,551,860 (2020: $6,617,894 loss).
Significant change in state of affairs
During the year ended 30 June 2021, the Group completed the divestment of its Ben Hur project and a Debt and Equity
Compromise Agreement with related entities. These changes allow the Group to focus on its core exploration activities,
being the Cork Tree Well, Beta, Alpha and Hawkes Nest projects located nearby to Laverton in Western Australia.
Review of operations
Corporate
to Brightstar Resources Limited.
On 16 November 2020, shareholders approved a change of name of the Company from Stone Resources Australia Limited
The Group completed divestment of its Ben Hur project in September 2020 and the execution of the Debit and Equity
Compromise Agreement (“DECA”) in November 2020.
Upon completion of the DECA, the debt totalling $57,252,627 that the Company owed to its previous major shareholder and
major debt provider (Stone Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”) has extinguished (30
June 2020: $55,524,813). The net profit mentioned above is primarily caused by the debt cancellation.
A selective buy-back of 433,452,944 shares previously held by SRL and SRHKL were cancelled at the same time. The total
consideration for the buy-back was $11,400,000.
At the end of the financial year the Group had $985,036 (2020: $50,032) in cash and cash equivalents. The Group’s
capitalised exploration, evaluation and development expenditure totalled $9,313,231 (2020: $2,686,636).
During the year the Company issued 33,150,000 shares to two key management personnel of the Company as part
remuneration for services rendered. The Company also issued 4,000,000 shares and 1,000,00 options to an unrelated party
for the purchase of an exploration licence. 17,000,000 unlisted options were issued by Company to corporate advisors as
consideration for consulting services provided.
As at 30 June 2021, the Company had 439,750,764 shares on issue (2020: 836,053,708) and 33,000,000 unlisted options
(2020: 15,000,000).
Brightstar Resources Limited - 6 - DIRECTORS’ REPORT (continued) Review of operations (continued) Exploration Exploration activities carried out during the year included: • Consolidation work undertaken on all of the Resources in the Group to ensure robustness of the resource base. • Compilation of data for early-stage exploration commenced in a new database MX Deposit. • Surface geochemistry tested on several leases with varied results. Desktop Activities Disparate drilling data from historic drilling data systems including Access databases, Micromine databases, Excel spreadsheets, Micromine data files, and text files of many types were collected. These datasets were collated in the building of a new database structure that was completed in parallel to data clean-up/validation. Currently over 19,000 historic drillholes are contained in the database. Drill hole planning was completed to determine opportunities for extensional targets along the lengths of both Alpha and CTW deposits. These holes will provide an ideal opportunity to update the Resource, convert parts of the current Resource to Reserve and contribute significant information to mining studies early in 2022. Exploration Activities. v Cork Tree Well Reporting Group Sub-Audio Magnetic (SAM) survey undertaken in northern half of M38/346 at Cork Tree Well in December 2020 and the interpretation results were announced in June 2021. This interpretation provided several targets including up to three additional kilometres of strike extent of the interpreted host at CTW proper. 48 samples were collected from the top 10cm of the soil profile on E38/2452. Approximately 1kg of material was sieved to -2mm to remove coarse lag. Sample spacing was at 100m x 200m. Samples were analysed by Minanalytical Perth using an Aqua Regia digest and ICP-MS/ICP-OES finish for a 47 element Suite. ICP-MS and ICP-OES. The nearby Cork Tree Well open cut pit shows a well-developed, +10m, indurated profile (See Figure 1). This is common throughout the Laverton area but is not seen commonly further south. This profile is probably the reason for the poor response from soil sampling away from outcrop/sub crop in the Laverton region. Figure 1: Indurated near surface hardpan and pallid zone below.
Figure 1: Indurated near surface hardpan and pallid zone below.
- 7 -
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Review of operations (continued)
v Laverton North
Trial surface sampling on E38/2233 was completed on 6 December 2020. 14 soil samples and 4 rock chip samples
were collected and analysed by MinAnalytical in Perth. Samples were analysed for a multi-element suite by Aqua
Regia Digest with an ICP-MS finish (AR10MS) and an ICP-OES finish (AR10OES). The best gold value was from
rock chip sample 2233-3 of 808 ppb. And the best soil Au value was 255 ppb from sample 2233-13. Correlations are
indicated between Au and Fe, V, Zn, Ag, Mo and Sb. This suggests that there may be a significant effect from Fe
scavenging of some elements. Interestingly, there is no correlation with As or Te which would be expected from an
orogenic gold source. Ag, Zn, Mo and Sb are more suggestive of VHMS mineralisation. Au results seem to correlate
with the indications from the historic sampling that Au mineralisation is associated with the intersection of NW
fractures and a generally NNE trend in the mafic hosts. The high soil sample results provide strong encouragement
that economic mineralisation may be concealed under cover in this area. Two intersections of fractures with black
shales/shears have been highlighted as potential targets.
v Brightstar Reporting Group (including Alpha and Beta Projects)
A trial sampling program was undertaken to determine the applicability of soil sampling in this region (E38/2411). 12
soil samples were collected from 0-10cm depth along two lines at 50m x 100m spacing. The samples were sieved to
< 2mm and sent to Minanalytical in Perth for analysis. Samples were analysed by AR10_MS - Multi-element by 10g
Aqua Regia Digest with ICP-MS Finish or AR10_OES - Multi-element by 10g Aqua Regia Digest with ICP-OES
Finish Gold values were very low, which may be an actual representation of Au in the soil or may indicate that
depletion in the surface sample has not given a representative sampling of this area. Surficial (sieved) soil sampling
does not appear to be effective in this area from the sampling undertaken to date.
11 rockchip samples were taken from outcrop or mullock on M38/549 where quartz veining was exposed. These
samples were analysed for 45 elements to determine if any elements or group of elements could be used as
pathfinders for the mineralisation. Results indicate that the mineralisation is likely to be extending both north and
south of the main workings with the most northern sample returning 3.9g/t and the most southern sample returning
2.4g/t. Mineralisation appears to be constrained to quartz veining with little anomalism seen in the mafic host.
Previous work collated and reviewed during the period however no physical activity undertaken. On E38/3108
bedrock geology is interpreted as either basalt or granitic gneiss depending on the dataset. If it is granitic gneiss
there is little prospectivity on the tenement however, if there are mafic/granitic contacts then some prospectivity
remains to be tested. Testing of sub-surface rock types to be planned for 2022. Previous surface geochemical
sampling limited to sub-crop section of lease in the western part of the lease with low level anomalism. This may
indicate ‘leakage’ of gold along a structure but does not appear to be the signal of a deposit.
Previous surface geochemistry seems to have been effective in the northern part of P38/4444 and P38/4445
however the southern part of these leases are not well tested by surface geochemistry because of the cover
thickness. A detailed review of the regolith and digitising of historic drill results is required to determine the next
appropriate exploration step.
Cover may have made previous surface geochemistry ineffective on P38/4446 and P38/4447. There is limited
previous AC and RAB drilling, however no significant intersections on the actual leases. A detailed review of the
historic data is required to determine an appropriate program for follow up.
The area around P38/4432 & P38/4433 is mainly sub crop, so should be amenable to auger or AC work that the
Company intends to investigate further. P38/4433 also has a string of workings on it called the Sailor Prince project
which produced over 4000 ounces during the period 1897 to 1930. This is significantly bigger than most of the
workings in the area and worthy of drill testing.
DIRECTORS’ REPORT (continued)
Review of operations (continued)
v Laverton North
Trial surface sampling on E38/2233 was completed on 6 December 2020. 14 soil samples and 4 rock chip samples
were collected and analysed by MinAnalytical in Perth. Samples were analysed for a multi-element suite by Aqua
Regia Digest with an ICP-MS finish (AR10MS) and an ICP-OES finish (AR10OES). The best gold value was from
rock chip sample 2233-3 of 808 ppb. And the best soil Au value was 255 ppb from sample 2233-13. Correlations are
indicated between Au and Fe, V, Zn, Ag, Mo and Sb. This suggests that there may be a significant effect from Fe
scavenging of some elements. Interestingly, there is no correlation with As or Te which would be expected from an
orogenic gold source. Ag, Zn, Mo and Sb are more suggestive of VHMS mineralisation. Au results seem to correlate
with the indications from the historic sampling that Au mineralisation is associated with the intersection of NW
fractures and a generally NNE trend in the mafic hosts. The high soil sample results provide strong encouragement
that economic mineralisation may be concealed under cover in this area. Two intersections of fractures with black
shales/shears have been highlighted as potential targets.
v Brightstar Reporting Group (including Alpha and Beta Projects)
A trial sampling program was undertaken to determine the applicability of soil sampling in this region (E38/2411). 12
soil samples were collected from 0-10cm depth along two lines at 50m x 100m spacing. The samples were sieved to
< 2mm and sent to Minanalytical in Perth for analysis. Samples were analysed by AR10_MS - Multi-element by 10g
Aqua Regia Digest with ICP-MS Finish or AR10_OES - Multi-element by 10g Aqua Regia Digest with ICP-OES
Finish Gold values were very low, which may be an actual representation of Au in the soil or may indicate that
depletion in the surface sample has not given a representative sampling of this area. Surficial (sieved) soil sampling
does not appear to be effective in this area from the sampling undertaken to date.
11 rockchip samples were taken from outcrop or mullock on M38/549 where quartz veining was exposed. These
samples were analysed for 45 elements to determine if any elements or group of elements could be used as
pathfinders for the mineralisation. Results indicate that the mineralisation is likely to be extending both north and
south of the main workings with the most northern sample returning 3.9g/t and the most southern sample returning
2.4g/t. Mineralisation appears to be constrained to quartz veining with little anomalism seen in the mafic host.
Previous work collated and reviewed during the period however no physical activity undertaken. On E38/3108
bedrock geology is interpreted as either basalt or granitic gneiss depending on the dataset. If it is granitic gneiss
there is little prospectivity on the tenement however, if there are mafic/granitic contacts then some prospectivity
remains to be tested. Testing of sub-surface rock types to be planned for 2022. Previous surface geochemical
sampling limited to sub-crop section of lease in the western part of the lease with low level anomalism. This may
indicate ‘leakage’ of gold along a structure but does not appear to be the signal of a deposit.
Previous surface geochemistry seems to have been effective in the northern part of P38/4444 and P38/4445
however the southern part of these leases are not well tested by surface geochemistry because of the cover
thickness. A detailed review of the regolith and digitising of historic drill results is required to determine the next
appropriate exploration step.
Cover may have made previous surface geochemistry ineffective on P38/4446 and P38/4447. There is limited
previous AC and RAB drilling, however no significant intersections on the actual leases. A detailed review of the
historic data is required to determine an appropriate program for follow up.
The area around P38/4432 & P38/4433 is mainly sub crop, so should be amenable to auger or AC work that the
Company intends to investigate further. P38/4433 also has a string of workings on it called the Sailor Prince project
which produced over 4000 ounces during the period 1897 to 1930. This is significantly bigger than most of the
workings in the area and worthy of drill testing.
Figure 1: Indurated near surface hardpan and pallid zone below.
- 7 -
DIRECTORS’ REPORT (continued)
Review of operations (continued)
- 8 -
Brightstar Resources Limited
Brightstar Resources Limited
JORC Resources and Reserves
Following the divestment of the Ben Hur project, the company engaged independent consultants in
September 2020 to review the resources in Alpha, Beta and Cork Tree Well (CTW) tenements. The table on
the JORC Resources and Reserves is shown below:
Measured
Indicated
Location
KTonnes
g/t
Au
Cut-
off
(g/t)
KOunces KTonnes
KOunces KTonnes
g/t
Au
Inferred
g/t
Au
KOunces KTonnes
Total
g/t
Au
KOunces
Alpha
0.5
623
1.6
33
374
2.1
25
455
3.3
48
1,452
2.3
106
Beta
0.5
345
1.7
19
576
1.6
29
961
1.7
54
1,882
1.7
102
Cork
Tree
Well
Total
0.5
1,220
1.9
76
944
1.9
57
1,696
1.9
104
3,860
1.9
237
2,188
1.8
128
1,894
1.8
111
3,112
2.1
206
7,194
1.9
445
All data is rounded and discrepancies in summation may occur
Competent Person’s Statement
The information in the Report that relates to Mineral Resources of the Alpha, Beta and Cork Tree Well deposit is based on
information compiled by Mr Richard Maddocks of Auralia Mining Consulting Pty Ltd. Mr Maddocks is a Fellow of the
Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a “Competent
Person” as that term is defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore
Resources (JORC Code 2012)”. Mr Maddocks consents to the inclusion in this report of the matters based in this information
in the form and context in which it appears. Mr Maddocks was employed as a contractor of BTR.
Significant events after balance date
Drilling over the Company’s Cork Tree Well project commenced from in the 3rd week of September 2021. This is the first
drilling campaign since BTR completed recapitalisation in November 2020. It is expected that the results may assist in
developing a revised Mineral Resource Estimate for the project and used to plan future exploration drilling at Cork Tree Well
and surrounding areas.
On 27 September 2021, the Company signed a Call Option Deed with Stone Resources (HK) Limited (SRHKL), under which
SRHKL agreed to grant BTR or its nominee an option to purchase the 3% net smelter royalty (NSR) which is applicable to
a substantial portion of BTR’s tenements holdings. This Call Option Deed is expected to be settled seven days after BTR’s
2021 Annual General Meeting, however this may be as late as 31 March 2022 depending upon the nature of shareholder
approval required. The exercise price of this Call Option is US$25 million, and the expiry is 5 calendar years since settlement
date of this Call Option Deed. An Option Fee of $300,000 is payable to SRHKL on the settlement date. Both the exercise
price, if exercised, and the Option Fee can be settled in cash and/or BTR shares at the discretion of the Board. SRHKL has
no rights to compel or demand exercise of the Call Option. Purchase of part of the NSR is allowed by the Call Option.
On 27 September 2021, the Company also executed two Settlement Deeds in relation to an outstanding liability owing to
Great Cortex International Limited (“Great Cortex”) and amounts owed to its former Company Secretary Mr Tony Lau. Under
the Settlement Deeds:
i.
ii.
iii.
The Company will repay the loan principal of $630,000 in cash to Great Cortex on or before 18 November 2023.
All related expenses and amounts owing, including accrued interest payments, will be waived once Brightstar
meets its obligations under the Settlement Deed.
A settlement sum of $300,000 will be paid to Mr Tony Lau, in cash and/or shares at the Company’s discretion, on
the earlier of seven days after BTR’s 2021 Annual General Meeting or 7 December 2021.
Mr Duan will step down from the Chairman role and remain on the Board as a Non-Executive Director. The deferred
remuneration payment of $63,218 will be paid to Mr Duan in cash and/or shares at Brightstar’s election on the
same settlement date under Call Option Deed above.
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Significant events after balance date (continued)
- 9 -
iv.
All claims between the Parties relating to the past conduct of the Parties are settled in accordance with the terms
of the Deeds.
v.
The DECA remains in force and effect.
On 28 September 2021, the Company signed a mandate with Canaccord Genuity (Australia) Limited to act as Lead Manager
with regards to a placement. The placement is expected to be completed within the 1st week of October 2021.
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
Likely developments
The Group will continue to progress its three-year plan by growing its resources with the ultimate target of restarting its
mining operations.
Environmental legislation
The Group’s operations are subject to significant environmental regulation under the law of the Commonwealth and State.
The Directors of the Group monitor compliance with environmental regulations. The Directors are not aware of any
significant breaches during the period covered by this Report.
Remuneration report (audited)
The Directors present the Group’s 2021 remuneration report which details the remuneration information for Brightstar
Resources Limited’s executive directors, non-executive directors and other key management personnel.
Details of key management personnel
Directors
(i)
William Hobba
Yongji Duan
Josh Hunt
Yong Han
Fang Lu
Kaiye Shuai
Managing Director (appointed on 3 December 2020, Executive Director 10 September 2020
to 2 December 2020, Non-Executive Director 1 July 2020 to 9 September 2020)
Non-Executive Chairman
Non-Executive Director (appointed on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Non-Executive Director (resigned on 18 November 2020)
Other Key Officers
(ii)
Yafei (Luke) Wang
Tony Lau
Sheng Hui Lu
Company Secretary (appointed on 19 July 2021, formerly Joint Company Secretary)
Joint Company Secretary (resigned on 19 July 2021)
Deputy Executive Officer / Joint Company Secretary (resigned on 24 November 2020)
Remuneration philosophy
The philosophy of the Group in determining remuneration levels is to set competitive remuneration packages to attract and
retain high calibre employees.
Remuneration committee
There is no separate Remuneration Committee. The Board of Directors of the Company is responsible for determining
and reviewing compensation arrangements for the directors and the executive team.
The Board assesses the appropriateness of the nature and amount of remuneration of directors and executives on a
periodic basis by reference to relevant employment market conditions.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration
is separate and distinct.
DIRECTORS’ REPORT (continued)
Significant events after balance date (continued)
of the Deeds.
v.
The DECA remains in force and effect.
iv.
All claims between the Parties relating to the past conduct of the Parties are settled in accordance with the terms
On 28 September 2021, the Company signed a mandate with Canaccord Genuity (Australia) Limited to act as Lead Manager
with regards to a placement. The placement is expected to be completed within the 1st week of October 2021.
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
The Group will continue to progress its three-year plan by growing its resources with the ultimate target of restarting its
Likely developments
mining operations.
Environmental legislation
The Group’s operations are subject to significant environmental regulation under the law of the Commonwealth and State.
The Directors of the Group monitor compliance with environmental regulations. The Directors are not aware of any
significant breaches during the period covered by this Report.
Remuneration report (audited)
The Directors present the Group’s 2021 remuneration report which details the remuneration information for Brightstar
Resources Limited’s executive directors, non-executive directors and other key management personnel.
Details of key management personnel
(i)
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han
Fang Lu
Kaiye Shuai
Managing Director (appointed on 3 December 2020, Executive Director 10 September 2020
to 2 December 2020, Non-Executive Director 1 July 2020 to 9 September 2020)
Non-Executive Chairman
Non-Executive Director (appointed on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Non-Executive Director (resigned on 18 November 2020)
(ii)
Other Key Officers
Yafei (Luke) Wang
Company Secretary (appointed on 19 July 2021, formerly Joint Company Secretary)
Tony Lau
Sheng Hui Lu
Joint Company Secretary (resigned on 19 July 2021)
Deputy Executive Officer / Joint Company Secretary (resigned on 24 November 2020)
Remuneration philosophy
retain high calibre employees.
Remuneration committee
There is no separate Remuneration Committee. The Board of Directors of the Company is responsible for determining
and reviewing compensation arrangements for the directors and the executive team.
The Board assesses the appropriateness of the nature and amount of remuneration of directors and executives on a
periodic basis by reference to relevant employment market conditions.
Remuneration structure
is separate and distinct.
In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration
- 9 -
- 10 -
Brightstar Resources Limited
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Remuneration report (audited) (continued)
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time
to time by a general meeting.
The Board considers the fees paid to non-executive directors of comparable companies when undertaking the annual
review process.
The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The
board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. In the current year, no advice
was sought. Fees for non-executive directors are not linked to the performance of the Company. However, to align
directors’ interests with shareholder interests, the directors are encouraged to hold shares in the Company and are able to
participate in the option plan.
Senior manager and executive director remuneration
Remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative remuneration
in the market and internally and, where appropriate, external advice on policies and practices. The Board has access to
external, independent advice where necessary. In the current year, no advice was obtained.
Senior managers are given the opportunity to receive their remuneration in a variety of forms including cash, shares issued
in lieu of salary, and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of
payment chosen will be optimal for the recipient without creating undue cost for the Company.
Voting and comments made at the Company’s 2020 Annual General Meeting (“AGM”)
The Group received more than 99% of yes votes on its remuneration report for the 2020 financial year. The Group did not
receive any feedback at the AGM or throughout the year on its remuneration practices.
Executive Service Agreements
The key terms of Mr Hobba and Mr Wang’s service agreements are set out below:
William Hobba, Managing Director
(a) Terms of agreement dated 1 December 2020, commencing 3 December 2020 for a term of three years
(b) Remuneration:
Base salary of $120,000 plus $11,400 in superannuation;
-
- Reimbursement of telephone, travel and other expenses reasonably incurred in connection with his
employment; and
Eligibility to participate in any executive bonus scheme as approved and implemented by the Group.
(c) Termination of the agreement by either Mr Hobba or the Group can be made upon giving one month’s written
-
notice or by the Group immediately upon giving written notice with payment in lieu.
The philosophy of the Group in determining remuneration levels is to set competitive remuneration packages to attract and
Yafei (Luke) Wang, Financial Controller and Company Secretary
(a) Terms of agreement dated 23 November 2020, commencing 23 November 2020 for a term of three years
(b) Remuneration:
-
Base salary of $100,000 plus $9,500 in superannuation
(c) Termination of the agreement by either Mr Wang or the Group can be made upon giving one month’s written
notice or by the Group immediately upon giving written notice with payment in lieu.
Key Performance Indicators of the Group over the last five years
Consolidated
Net profit / (loss) before tax
Net profit / (loss) after tax
Share price at end of year
Interim and final dividend
Basic profit / (loss) per share
(cents)
30-June-21
($)
60,551,860
30-June-20
($)
(6,617,894)
30-June-19
($)
(4,140,859)
30-June-18
($)
(5,156,614)
30-June-17
($)
(10,724,347)
60,551,860
(6,617,894)
(4,140,859)
(5,156,614)
(10,724,347)
0.031
-
10.25
0.004
-
(0.80)
0.002
-
(0.51)
0.003
-
(0.66)
0.004
-
(1.48)
-13-
-11-
Brightstar Resources Limited
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
d
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c
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r
a
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g
i
r
B
Granted as
remuneration
30,000,000 (i)
-
Ordinary shares held in Brightstar Resources Limited (number)
Balance at
beginning of
period
38,727,775
31,449,497
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
-
3,150,000 (i)
13,908,219
11,425,436
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10,000,000
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Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
shares were approved for issue at the Group’s AGM on 16 November 2020.
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
Table 2: Key Management Personnel Remuneration (executives) for the years ended 30 June 2021 and 30 June 2020
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
d
e
t
i
-13-
-12-
Brightstar Resources Limited
Brightstar Resources Limited
’
i
.
n
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t
e
r
c
s
d
s
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n
a
p
1
m
2
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e
7
Share-based
h
2
t
payments
t
a
$
y
t
i
u
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r
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h
s
-
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c
11,728
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n
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1
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-
i
-
-
1
5
4
,
4
0
1
,
1
9
0
9
,
8
1
Post-employment
benefits
Superannuation
$
8,577
4,826
-
-
3,275
5,549
11,852
10,375
Total
$
98,858
55,632
27,500
23,457
58,432
65,614
184,790
144,703
Short-term employee benefits
Other
Salary & Fees
$
$
0
0
5
,
7
2
2
2
8
Balance at
3
3
5
l
a
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4
8
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t
,
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,
end of period
5
8
8
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5
5
9
T
remuneration
payments (i)
$
7
5
4
,
3
2
4
1
6
,
5
6
3
0
7
,
4
4
1
0
9
7
,
4
8
1
Other
$
68,727,775
-
-
31,449,497
7
7
$
3,357,999
5
,
8
6
13,750 (ii)
2
8
-
,
4
-
-
5
7
2
,
3
9
4
5
,
5
-
-
-
-
-
13,750
-
-
-
-
63,292
35,433
-
-
2
5
8
,
1
1
5
7
-
3
-
,
0
1
-
-
-
-
Totals (Directors and
Other Key Officers)
-
s
t
n
e
m
y
a
Under mutual agreement, certain Directors agreed to defer the payment of a portion of their remuneration, which will be settled in either cash or equity at the Company’s discretion.
p
This deferred remuneration payable to Mr Lau was settled in cash immediately on his resignation on 19 July 2021.
Mr Sheng Lu resigned on 24 November 2020.
d
e
s
a
b
-
e
r
a
h
S
10,000,000
-
-
-
-
-
$
l
i
4,475,178
10,000,000
1,104,451
275,221
303,483
217,685
18,909
10,375
8
2
7
,
1
1
-
-
-
8
2
358,767
7
-
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1
1
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2
7
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0
0
0
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3
109,986,105
33,150,000
113,535,271
i
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r
Granted as
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s
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e
R
r
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t
s
t
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g
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30,000,000 (i)
2021
2020
-
3,150,000 (i)
2021
2020
-
-
-
2021
2020
2021
2020
2021
2020
Ordinary shares held in Brightstar Resources Limited (number)
Balance at
beginning of
period
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
(i)
(ii)
(iii)
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
38,727,775
Yafei (Luke) Wang
31,449,497
Tony Lau (ii)
-
13,908,219
Sheng Hui Lu (iii)
11,425,436
Sub-Total (Executives)
-
r
i
e
h
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
t
f
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
o
n
shares were approved for issue at the Group’s AGM on 16 November 2020.
o
i
t
r
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
o
p
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b
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DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
B
-13-
-13-
Brightstar Resources Limited
Brightstar Resources Limited
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
Ordinary shares held in Brightstar Resources Limited (number)
Ordinary shares held in Brightstar Resources Limited (number)
30 June 2021
Balance at
beginning of
period
Directors
Granted as
remuneration
Balance at
Other
beginning of
period
Granted as
Balance at
remuneration
end of period
Other
William Hobba
38,727,775
Yongji Duan
31,449,497
30,000,000 (i)
-
Josh Hunt
-
3,150,000 (i)
Yong Han (ii)
13,908,219
Kaiye Shuai (ii)
11,425,436
Fang Lu (ii)
-
Other Key Officer
-
-
-
-
(13,908,219)
11,425,436
(11,245,436)
t
a
e
c
n
a
a
B
l
d
o
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r
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p
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38,727,775
-
5
31,449,497
-
7
7
7
-
2
7
13,908,219
8
6
207,999
,
,
,
7
9
4
9
4
4
1
3
,
-
-
30,000,000 (i)
68,727,775
9
9
31,449,497
9
7
3,150,000 (i)
3,357,999
5
3
3
-
,
,
-
-
-
-
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-
-
-
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-
-
9
9
9
7
0
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,
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-
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9
1
2
8
0
9
,
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,
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6
3
4
5
4
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(13,908,219)
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-
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8
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4
,
4
(
-
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Luke Wang
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
-
-
3
1
-
-
-
4,475,178
4,475,178
10,000,000
(4,475,178)
109,986,105
Sheng Hui Lu (iii)
s
a
n
o
i
t
10,000,000
a
r
e
d
s
n
o
c
L
I
N
$
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
t
a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
s
shares were approved for issue at the Group’s AGM on 16 November 2020.
e
r
a
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
h
s
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
shares were approved for issue at the Group’s AGM on 16 November 2020.
f
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
o
g
Mr Sheng Lu resigned on 24 November 2020.
n
n
Mr Lau resigned 19 July 2021
n
g
e
b
)
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n
(
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t
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10,000,000
)
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(29,600,834)
113,535,271
113,535,271
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6
8
9
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(4,475,178)
33,150,000
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o
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Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
-13-
-14-
Brightstar Resources Limited
Balance at
beginning of
period
Granted as
remuneration
Other
Balance at
end of period
38,727,775
30,000,000 (i)
31,449,497
-
-
-
68,727,775
31,449,497
-
3,150,000 (i)
207,999
3,357,999
(13,908,219)
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Ordinary shares held in Brightstar Resources Limited (number)
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
13,908,219
11,425,436
-
-
4,475,178
10,000,000
-
-
-
-
-
-
109,986,105
33,150,000
-
4
1
-
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
6
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
7
2
shares were approved for issue at the Group’s AGM on 16 November 2020.
,
3
4
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
5
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DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
-15-
Brightstar Resources Limited
Shares under option
There were no unissued shares under option held by any members of Key Management Personnel as at 30 June 2021
(30 June 2020: NIL).
Other transactions and balances with Key Management Personnel
Some Directors and executives hold positions within other entities that cause them to have control or exert significant
influence over the financial or operating policies of those entities. However, these entities did not transact with the Company
during the current and previous reporting periods.
Under mutual agreement, certain Directors and Executives agreed to part payment of their remuneration, which was
deferred and will be settled in either cash or equity at the Company’s discretion. The balance of outstanding amounts
owing to the Directors and Executives as at 30 June 2021 year end is as follows. These amounts are included within
Table 2 and Table 3 as remuneration to the respective Director and Executive:
Table 4: Key Management Personnel balances payable as at 30 June 2021 and 30 June 2020
Transaction
Directors
Yongji Duan
Deferred remuneration payment
William Hobba
Deferred remuneration payment
2021
$
2020
$
56,841
28,133
25,833
9,600
Other Key Officer
Tony Lau (i)
Deferred remuneration payment
13,750
-
(i)
Mr Lau resigned from the Joint Company Secretary role with effect from 19 July 2021. Outstanding
remuneration amounts owing to him were settled in cash.
END OF AUDITED REMUNERATION REPORT
Shares under option
Unissued ordinary shares of Group under option at the date of this report are as follows:
Date options granted
Number of shares under
option
9 April 2020
15,000,000
31 December 2020
31 December 2020
31 December 2020
12 February 2021
22 June 2021
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
Exercise price of option
Expiry date of options
$0.01
$0.06
$0.08
$0.10
$0.10
8 April 2023
31 December 2023
31 December 2023
31 December 2023
12 February 2024
$0.045
22 June 2024
No option holder has any right under the options to participate in any other share issue of the Company. No shares were
issued during or after the reporting period upon the exercise of options, as at the date of this report.
Share options held or granted to directors and officers
No options over unissued ordinary shares were granted during or since the end of the financial year to directors or officers.
Directors’ interests in shares or options
Directors’ relevant interests in shares of Brightstar or options over shares in the Group are detailed below.
Brightstar Resources Limited
Brightstar Resources Limited
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
-15-
Shares under option
(30 June 2020: NIL).
There were no unissued shares under option held by any members of Key Management Personnel as at 30 June 2021
Other transactions and balances with Key Management Personnel
Some Directors and executives hold positions within other entities that cause them to have control or exert significant
influence over the financial or operating policies of those entities. However, these entities did not transact with the Company
during the current and previous reporting periods.
Under mutual agreement, certain Directors and Executives agreed to part payment of their remuneration, which was
deferred and will be settled in either cash or equity at the Company’s discretion. The balance of outstanding amounts
owing to the Directors and Executives as at 30 June 2021 year end is as follows. These amounts are included within
Table 2 and Table 3 as remuneration to the respective Director and Executive:
Table 4: Key Management Personnel balances payable as at 30 June 2021 and 30 June 2020
2021
$
2020
$
William Hobba
Deferred remuneration payment
Deferred remuneration payment
56,841
28,133
25,833
9,600
Transaction
Directors
Yongji Duan
Other Key Officer
Tony Lau (i)
Deferred remuneration payment
13,750
-
(i)
Mr Lau resigned from the Joint Company Secretary role with effect from 19 July 2021. Outstanding
remuneration amounts owing to him were settled in cash.
END OF AUDITED REMUNERATION REPORT
Shares under option
Unissued ordinary shares of Group under option at the date of this report are as follows:
Date options granted
Number of shares under
Exercise price of option
Expiry date of options
9 April 2020
15,000,000
option
31 December 2020
31 December 2020
31 December 2020
12 February 2021
22 June 2021
4,000,000
4,000,000
4,000,000
1,000,000
5,000,000
$0.01
$0.06
$0.08
$0.10
$0.10
8 April 2023
31 December 2023
31 December 2023
31 December 2023
12 February 2024
$0.045
22 June 2024
No option holder has any right under the options to participate in any other share issue of the Company. No shares were
issued during or after the reporting period upon the exercise of options, as at the date of this report.
Share options held or granted to directors and officers
No options over unissued ordinary shares were granted during or since the end of the financial year to directors or officers.
Directors’ interests in shares or options
Directors’ relevant interests in shares of Brightstar or options over shares in the Group are detailed below.
-16-
DIRECTORS’ REPORT (continued)
Directors’ relevant interests in:
William Hobba
Yongji Duan
Josh Hunt
Ordinary shares
of Brightstar Resources Limited
68,727,775
31,449,497
3,357,999
Options over shares in
Brightstar Resources Limited
-
-
-
Directors’ Meetings
The number of meetings of directors (including meetings of committees of directors) held during the year and the number
of meetings attended by each director was as follows:
Number of meetings held:
Number of meetings attended:
Mr William Hobba
Mr Yongji Duan
Mr Josh Hunt
Dr Kaiye Shuai
Mr Yong Han
Mr Fang Lu
Directors’
Meetings
6
Eligible to
attend
6
-
6
-
-
-
6
6
6
-
-
-
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
Auditor Independence
Section 307C of the Corporations Act 2001 requires our auditors to provide the Directors of the Company with an
Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page
16 and forms part of this directors’ report for the year ended 30 June 2021.
Non-Audit Services
The Company may decide to employ the auditor on assignments in addition to their statutory audit duties where the
auditor’s expertise and experience with the Company are important. Non-audit services provided during the financial year
by the auditor are detailed below. The Directors are satisfied that the provision of non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Acts 2001.
Amount paid/payable to Pitcher Partners BA&A Pty Ltd or related entities
for non-audit services
Pitcher Partners Accountants & Advisors WA Pty Ltd – Taxation compliance
services
Total auditors’ remuneration for non-audit services
30-June-21
$
30-June-20
$
8,000
8,000
-
-
30-June-21
$
30-June-20
$
Amount paid/payable to Deloitte Touché Tohmatsu or related entities for
non-audit services
- Taxation compliance services
Total auditors’ remuneration for non-audit services
14,700
14,700
13,402
13,402
DIRECTORS’ REPORT (continued)
-17-
Brightstar Resources Limited
The directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit
services have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of
the services undermine the general principles relating to auditor independence as set out in Code of Conduct APES
110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Australian
Professional and Ethical Standards Board.
Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Director’s Reports) Instrument 2016/191, the amounts in
the Directors’ report and in the financial report have been rounded to the nearest $1 (where rounding is applicable).
Signed in accordance with a resolution of the directors made pursuant to s.298 (2) of the Corporations Act 2001.
William Hobba
Managing Director
30 September 2021
Brightstar Resources Limited
Brightstar Resources Limited
-18-
DIRECTORS’ REPORT (continued)
-17-
The directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit
services have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of
the services undermine the general principles relating to auditor independence as set out in Code of Conduct APES
110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Australian
Professional and Ethical Standards Board.
Rounding of amounts
In accordance with ASIC Corporations (Rounding in Financial/Director’s Reports) Instrument 2016/191, the amounts in
the Directors’ report and in the financial report have been rounded to the nearest $1 (where rounding is applicable).
Signed in accordance with a resolution of the directors made pursuant to s.298 (2) of the Corporations Act 2001.
William Hobba
Managing Director
30 September 2021
Pitcher Partners BA&A Pty LtdAn independent Western Australian Company ABN 76 601 361 095.Level 11, 12-14 The Esplanade, Perth WA 6000Registered Audit Company Number 467435.Liability limited by a scheme under Professional Standards Legislation.Adelaide Brisbane Melbourne Newcastle Perth SydneyPitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF BRIGHTSTAR RESOURCES LIMITED AND ITS CONTROLLED ENTITIES 17 In relation to the independent audit for the year ended 30 June 2021, to the best of my knowledge and belief there have been: (i) No contraventions of the auditor independence requirements of the Corporations Act 2001; and (ii) no contraventions of APES 110 Code of Ethics for Professional Accountants (including Independence Standards). This declaration is in respect of Brightstar Resources Limited and the entities it controlled during the period. PITCHER PARTNERS BA&A PTY LTD PAUL MULLIGAN Executive Director Perth, 30 September 2021
-19-
Brightstar Resources Limited
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 June 2021
Other income
Remeasurement of Rehabilitation Provision
Mine site expenses
Exploration expenditure
Notes
2(a)
16
2(b)
Consolidated
2021
$
2020
$
62,060,466
364,749
3,033,794
-
(332,002)
(554,457)
(222,722)
(1,079,134)
Depreciation and amortisation expense
2(c)
(382,456)
(379,836)
Director fees
Impairment expenses
Finance costs
Administration expenses
Consulting expenses
Employee benefits expense
Other expenses
Profit / (loss) before income tax
Income tax
Net profit / (loss) for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
2(d)
2(e)
2(f)
2(f)
2(g)
(151,367)
(130,517)
(32,084)
(1,075,812)
(1,622,983)
(3,035,368)
(208,962)
(648,407)
(84,057)
(52,075)
(702,641)
(334,340)
(238,776)
(257,048)
60,551,860
(6,617,894)
3
-
-
60,551,860
(6,617,894)
-
-
60,551,860
(6,617,894)
Total comprehensive income / (loss) for the year
60,551,860
(6,617,894)
Basic earnings/(loss) per share per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
5
5
10.25
9.89
(0.80)
(0.80)
The accompanying notes form part of these financial
statements
Brightstar Resources Limited
Brightstar Resources Limited
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
-19-
INCOME
FOR THE YEAR ENDED 30 June 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 June 2021
-20-
Depreciation and amortisation expense
2(c)
(382,456)
(379,836)
Other income
Remeasurement of Rehabilitation Provision
Mine site expenses
Exploration expenditure
Director fees
Impairment expenses
Finance costs
Administration expenses
Consulting expenses
Employee benefits expense
Other expenses
Profit / (loss) before income tax
Income tax
Net profit / (loss) for the year
Notes
2(a)
16
2(b)
2(d)
2(e)
2(f)
2(f)
2(g)
3
Consolidated
2021
$
2020
$
62,060,466
364,749
3,033,794
-
(332,002)
(554,457)
(222,722)
(1,079,134)
(151,367)
(130,517)
(32,084)
(1,075,812)
(1,622,983)
(3,035,368)
(208,962)
(648,407)
(84,057)
(52,075)
(702,641)
(334,340)
(238,776)
(257,048)
60,551,860
(6,617,894)
60,551,860
(6,617,894)
-
-
-
-
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
60,551,860
(6,617,894)
Total comprehensive income / (loss) for the year
60,551,860
(6,617,894)
Basic earnings/(loss) per share per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
5
5
10.25
9.89
(0.80)
(0.80)
The accompanying notes form part of these financial
statements
Current Assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Assets held for sale
Other current assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right-of-use asset
Deferred exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Borrowings
Provisions
Liabilities held for sale
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets/(Liabilities)
Equity
Issued capital
Accumulated losses
Reserve
Total Equity/(Deficit)
The accompanying notes form part of these financial statements
Consolidated
Notes
2021
$
2020
$
6
7
8
10
9
11
12
13
14
15
16
10
14
16
17
18
19
985,036
179
25,000
50,032
35,617
25,000
-
11,172,169
23,051
16,358
1,033,266
11,299,176
454,899
13,574
720,969
32,018
9,313,231
2,686,636
9,781,704
3,439,623
10,814,970
14,738,799
962,968
21,134,121
15,639
17,618
630,000
36,066,134
112,740
111,249
-
3,733,200
1,721,347
61,062,322
-
15,756
3,044,667
3,583,061
3,715,060
-
6,759,727
3,598,817
8,481,074
64,661,139
2,333,896
(49,922,340)
37,857,909
51,541,309
(40,920,635)
(101,472,495)
5,396,622
8,846
2,333,896
(49,922,340)
-21-
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 June 2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Dividends received
Interest received
Interest on lease liabilities
Government grants received
Brightstar Resources Limited
Consolidated
Notes
2021
$
2020
$
131,289
291,219
(1,129,956)
(844,997)
105,867
633
(1,969)
50,000
-
651
(2,075)
50,000
Net cash used in operating activities
6(ii)
(844,136)
(503,127)
Cash flows from investing activities
Proceeds from sale of other financial assets
Proceeds from sale of property, plant and equipment
Proceeds from sale of exploration assets
Payments for property, plant and equipment
Payments for exploration and evaluation expenditure
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of lease liabilities
Payments for share buy-back
Net cash (used in)/provided by financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
6(i)
The accompanying notes form part of these financial statements
4,628,618
8,000
250,000
(161,907)
-
2,000
-
-
(688,962)
(805,025)
4,035,749
(803,025)
-
1,273,700
(16,746)
(18,224)
(2,239,864)
-
(2,256,610)
1,255,476
935,003
50,032
985,035
(50,676)
100,708
50,032
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
-13-
-22-
Brightstar Resources Limited
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Notes
2021
$
2020
$
Ordinary shares held in Brightstar Resources Limited (number)
30 June 2021
131,289
291,219
(1,129,956)
(844,997)
Balance at
beginning of
period
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 June 2021
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Consolidated
-21-
Brightstar Resources Limited
Net cash used in operating activities
(844,136)
(503,127)
Proceeds from sale of property, plant and equipment
8,000
2,000
Cash flows from operating activities
Receipts from customers
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Government grants received
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Proceeds from sale of other financial assets
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Net cash provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of lease liabilities
Payments for share buy-back
Net cash (used in)/provided by financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
6(i)
The accompanying notes form part of these financial statements
Directors
William Hobba
Yongji Duan
Josh Hunt
105,867
633
(1,969)
50,000
Yong Han (ii)
6(ii)
Kaiye Shuai (ii)
Fang Lu (ii)
4,628,618
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
250,000
(161,907)
Tony Lau (iv)
-
651
(2,075)
50,000
-
-
-
(688,962)
(805,025)
4,035,749
(803,025)
(i)
(ii)
(iii)
(iv)
-
1,273,700
(16,746)
(18,224)
Mr Sheng Lu resigned on 24 November 2020.
(2,239,864)
-
Mr Lau resigned 19 July 2021
(2,256,610)
1,255,476
935,003
50,032
985,035
(50,676)
100,708
50,032
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
shares were approved for issue at the Group’s AGM on 16 November 2020.
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
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i
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
-23-
Brightstar Resources Limited
The following are the significant accounting policies adopted by the group in the preparation and presentation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
(a) Basis of preparation of the financial report
This financial report is a general purpose financial report that has been prepared in accordance with the Corporations
Act 2001 and Australian Accounting Standards, Interpretations and other applicable authoritative pronouncements of
the Australian Accounting Standards Board (AASB).
The financial report covers Brightstar Resources Limited (“the Company”) and its controlled entities as a group
(together referred to as the “Group”). Brightstar Resources Limited is a company limited by shares, incorporated and
domiciled in Australia. Brightstar Resources Limited is a for-profit entity for the purpose of preparing the financial
report.
Compliance with IFRS
The financial report also complies with the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB).
Historical cost convention
The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value
for certain classes of assets and liabilities as described in the accounting policies.
Fair value measurement
For financial reporting purposes, ‘fair value’ is the price that would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants (under current market conditions) at the
measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique.
When estimating the fair value of an asset or liability, the entity uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs. Inputs to valuation techniques used to measure
fair value are categorised into three levels according to the extent to which the inputs are observable:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability.
(b) Going Concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the discharge of liabilities in the ordinary course of business.
The Group has recorded a net profit of $60,551,860 (2020: $6,617,894 loss) and cash inflows from operating and
investing activities of $3,191,613 (2020: outflows of $1,306,152) for the reporting period. As at 30 June 2021, the
Group had a cash balance of $985,035 (30 June 2020: $335,205), had net assets of $2,333,896 (30 June 2020:
$914,833 net liabilities) and current exploration expenditure commitments of $703,670.
The directors have prepared a cash flow forecast for the period ending 30 September 2022. It is recognised that
additional funding is required either through the issue of further shares, or convertible notes, or the sale of assets, or
a combination of these activities for the Group to continue to actively explore and develop its mineral properties, until
recommencement of mining operations. The directors may also look to delay the timing of certain budgeted
expenditures in accordance with their three year strategic plan.
Subsequent to the financial year end, the Company has signed a Mandate for its first capital raising since completion
of recapitalisation in November 2020. The Company also managed to renegotiate the terms of the Great Cortex loan
(originally due 30 September 2021) and extended the repayment date by more than 24 months to November 2023.
Refer to Note 24 for further information.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-23-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-24-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The following are the significant accounting policies adopted by the group in the preparation and presentation of the
(b) Going Concern (continued)
financial report. The accounting policies have been consistently applied, unless otherwise stated.
Brightstar Resources Limited
Brightstar Resources Limited
The directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion
that the use of the going concern basis of accounting is appropriate.
However, the Group acknowledge that the status of going concern relies on the development of the Company’s
projects and subsequent capital raising to support the development. Should the Group be unable to raise further debt
or capital, there exists a material uncertainty that the Group may in the future not be able to continue as a going
concern. The financial report does not include adjustments relating to the recoverability and classification of recorded
asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not
continue as a going concern.
(c) New and revised accounting standards effective at 30 June 2021
The group has applied all new and revised Australian Accounting Standards that apply to annual reporting periods
beginning on or after 1 July 2020, including the following:
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business
AASB 2018-6 amends AASB 3 Business Combinations to clarify the definition of a business, assisting entities to
determine whether a transaction should be accounted for as a business combination or as an asset acquisition. The
amendments:
(a) clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an
input and a substantive process that together significantly contribute to the ability to create outputs;
(b)
remove the assessment of whether market participants are capable of replacing any missing inputs or processes
and continuing to produce outputs;
(c) add guidance and illustrative examples to help entities assess whether a substantive process has been
acquired;
(d) narrow the definitions of a business and of outputs by focusing on goods and services provided to customers
and by removing the reference to an ability to reduce costs; and
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
(e) add an optional concentration test that permits a simplified assessment of whether an acquired set of activities
and assets is not a business.
• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or
The application of AASB 2018-6 has not materially impacted the financial statements of the Group.
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material
AASB 2018-7 principally amends AASB 101 Presentation of Financial Statements and AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors. The amendments refine the definition of material in AASB
101. The amendments clarify the definition of material and its application by improving the wording and aligning the
definition across AASB Standards and other publications. The amendment also includes some supporting
requirements in AASB 101 in the definition to give it more prominence and clarifies the explanation accompanying
the definition of material.
The application of AASB 2018-7 has not materially impacted the financial statements of the Group.
AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS
Standards Not Yet Issued in Australia
AASB 2019-5 makes amendments to AASB 1054 Australian Additional Disclosures by adding a disclosure
requirement for an entity intending to comply with IFRS Standards to disclose the information required by paragraph
30 of AASB 108 (regarding disclosing the effect of new standards not yet issued) to IFRS Standards that have not
yet been issued by the Australian Accounting Standards Board.
The application of AASB 2019-5 has not materially impacted the financial statements of the Group.
(d) Accounting standards issued but not yet effective
At the date of authorisation of the financial statements, the following Australian Accounting Standards and
Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the
Group for the year ended 30 June 2021:
(a) Basis of preparation of the financial report
This financial report is a general purpose financial report that has been prepared in accordance with the Corporations
Act 2001 and Australian Accounting Standards, Interpretations and other applicable authoritative pronouncements of
the Australian Accounting Standards Board (AASB).
The financial report covers Brightstar Resources Limited (“the Company”) and its controlled entities as a group
(together referred to as the “Group”). Brightstar Resources Limited is a company limited by shares, incorporated and
domiciled in Australia. Brightstar Resources Limited is a for-profit entity for the purpose of preparing the financial
report.
Compliance with IFRS
International Accounting Standards Board (IASB).
Historical cost convention
The financial report also complies with the International Financial Reporting Standards (IFRS) issued by the
The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value
for certain classes of assets and liabilities as described in the accounting policies.
Fair value measurement
technique.
For financial reporting purposes, ‘fair value’ is the price that would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants (under current market conditions) at the
measurement date, regardless of whether that price is directly observable or estimated using another valuation
When estimating the fair value of an asset or liability, the entity uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs. Inputs to valuation techniques used to measure
fair value are categorised into three levels according to the extent to which the inputs are observable:
access at the measurement date.
liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for the asset or liability.
(b) Going Concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the discharge of liabilities in the ordinary course of business.
The Group has recorded a net profit of $60,551,860 (2020: $6,617,894 loss) and cash inflows from operating and
investing activities of $3,191,613 (2020: outflows of $1,306,152) for the reporting period. As at 30 June 2021, the
Group had a cash balance of $985,035 (30 June 2020: $335,205), had net assets of $2,333,896 (30 June 2020:
$914,833 net liabilities) and current exploration expenditure commitments of $703,670.
The directors have prepared a cash flow forecast for the period ending 30 September 2022. It is recognised that
additional funding is required either through the issue of further shares, or convertible notes, or the sale of assets, or
a combination of these activities for the Group to continue to actively explore and develop its mineral properties, until
recommencement of mining operations. The directors may also look to delay the timing of certain budgeted
expenditures in accordance with their three year strategic plan.
Subsequent to the financial year end, the Company has signed a Mandate for its first capital raising since completion
of recapitalisation in November 2020. The Company also managed to renegotiate the terms of the Great Cortex loan
(originally due 30 September 2021) and extended the repayment date by more than 24 months to November 2023.
Refer to Note 24 for further information.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-25-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Accounting standards issued but not yet effective (continued)
Brightstar Resources Limited
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018 – 2020 and
Other Amendments
AASB 2020-3 amends AASB 1 First-time Adoption of Australian Accounting Standards, AASB 3 Business
Combinations, AASB 9 Financial Instruments, AASB 116 Property, Plant and Equipment, AASB 137 Provisions,
Contingent Liabilities and Contingent Assets and AASB 141 Agriculture. The main amendments relate to:
(a) AASB 1 – simplifies the application by a subsidiary that becomes a first-time adopter after its parent in relation
to the measurement of cumulative translation differences;
(b) AASB 3 – updates references to the Conceptual Framework for Financial Reporting;
(c) AASB 9 – clarifies the fees an entity includes when assessing whether the terms of a new or modified financial
liability are substantially different from the terms of the original financial liability;
(d) AASB 116 – requires an entity to recognise the sales proceeds from selling items produced while preparing
PP&E for its intended use and the related cost in profit or loss, instead of deducting the amounts received from
the cost of the asset;
(e) AASB 137 – specifies the costs that an entity includes when assessing whether a contract will be loss making;
and
(f) AASB 141 – removes the requirement to exclude cash flows from taxation when measuring fair value, thereby
aligning the fair value measurement requirements in AASB 141 with those in other Australian Accounting
Standards.
AASB 2020-3 mandatorily applies to annual reporting periods commencing on or after 1 January 2022 and will be first
applied by the Group in the financial year commencing 1 July 2022.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current, and
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current – Deferral of Effective Date
AASB 2020-1 amends AASB 101 Presentation of Financial Statements to clarify requirements for the presentation of
liabilities in the statement of financial position as current or non-current. It requires a liability to be classified as current
when entities do not have a substantive right to defer settlement at the end of the reporting period.
AASB 2020-6 defers the mandatory effective date of amendments that were originally made in AASB 2020-1 so that
the amendments are required to be applied for annual reporting periods beginning on or after 1 January 2023 instead
of 1 January 2023. They will first be applied by the Group in the financial year commencing 1 July 2023.
The likely impact of these accounting standard on the financial statements of the Group has not been determined.
AASB 2021-2 Amendments to Australian Accounting Standards –Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2020-1 amends AASB 7 Financial Instruments: Disclosures, AASB 101 Presentation of Financial Statements,
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 134 Interim Financial Reporting
and AASB Practice Statement 2 Making Materiality Judgements. The main amendments relate to:
(a) AASB 7 – clarifies that information about measurement bases for financial instruments is expected to be material
to an entity’s financial statements;
(b) AASB 101 – requires entities to disclose their material accounting policy information rather than their significant
accounting policies;
(c) AASB 108 – clarifies how entities should distinguish changes in accounting policies and changes in accounting
estimates;
(d) AASB 134 – to identify material accounting policy information as a component of a complete set of financial
statements; and
(e) AASB Practice Statement 2 – to provide guidance on how to apply the concept of materiality to accounting policy
disclosures.
AASB 2021-2 mandatorily applies to annual reporting periods commencing on or after 1 January 2023 and will be first
applied by the Group in the financial year commencing 1 July 2023.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-25-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Accounting standards issued but not yet effective (continued)
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018 – 2020 and
Other Amendments
AASB 2020-3 amends AASB 1 First-time Adoption of Australian Accounting Standards, AASB 3 Business
Combinations, AASB 9 Financial Instruments, AASB 116 Property, Plant and Equipment, AASB 137 Provisions,
Contingent Liabilities and Contingent Assets and AASB 141 Agriculture. The main amendments relate to:
(a) AASB 1 – simplifies the application by a subsidiary that becomes a first-time adopter after its parent in relation
to the measurement of cumulative translation differences;
(b) AASB 3 – updates references to the Conceptual Framework for Financial Reporting;
(c) AASB 9 – clarifies the fees an entity includes when assessing whether the terms of a new or modified financial
liability are substantially different from the terms of the original financial liability;
(d) AASB 116 – requires an entity to recognise the sales proceeds from selling items produced while preparing
PP&E for its intended use and the related cost in profit or loss, instead of deducting the amounts received from
(e) AASB 137 – specifies the costs that an entity includes when assessing whether a contract will be loss making;
(f) AASB 141 – removes the requirement to exclude cash flows from taxation when measuring fair value, thereby
aligning the fair value measurement requirements in AASB 141 with those in other Australian Accounting
the cost of the asset;
and
Standards.
AASB 2020-3 mandatorily applies to annual reporting periods commencing on or after 1 January 2022 and will be first
applied by the Group in the financial year commencing 1 July 2022.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current, and
AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current – Deferral of Effective Date
AASB 2020-1 amends AASB 101 Presentation of Financial Statements to clarify requirements for the presentation of
liabilities in the statement of financial position as current or non-current. It requires a liability to be classified as current
when entities do not have a substantive right to defer settlement at the end of the reporting period.
AASB 2020-6 defers the mandatory effective date of amendments that were originally made in AASB 2020-1 so that
the amendments are required to be applied for annual reporting periods beginning on or after 1 January 2023 instead
of 1 January 2023. They will first be applied by the Group in the financial year commencing 1 July 2023.
The likely impact of these accounting standard on the financial statements of the Group has not been determined.
AASB 2021-2 Amendments to Australian Accounting Standards –Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2020-1 amends AASB 7 Financial Instruments: Disclosures, AASB 101 Presentation of Financial Statements,
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 134 Interim Financial Reporting
and AASB Practice Statement 2 Making Materiality Judgements. The main amendments relate to:
(a) AASB 7 – clarifies that information about measurement bases for financial instruments is expected to be material
to an entity’s financial statements;
(b) AASB 101 – requires entities to disclose their material accounting policy information rather than their significant
(c) AASB 108 – clarifies how entities should distinguish changes in accounting policies and changes in accounting
(d) AASB 134 – to identify material accounting policy information as a component of a complete set of financial
(e) AASB Practice Statement 2 – to provide guidance on how to apply the concept of materiality to accounting policy
AASB 2021-2 mandatorily applies to annual reporting periods commencing on or after 1 January 2023 and will be first
applied by the Group in the financial year commencing 1 July 2023.
The likely impact of this accounting standard on the financial statements of the Group has not been determined.
accounting policies;
estimates;
statements; and
disclosures.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-26-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e) Principles of consolidation
The consolidated financial statements are those of the consolidated entity (“the group”), comprising the financial
statements of the parent entity and all of the entities the parent controls. The group controls an entity where it has the
power, for which the parent has exposure or rights to variable returns from its involvement with the entity, and for
which the parent has the ability to use its power over the entity to affect the amount of its returns.
The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies which may
exist.
All inter group balances and transactions, including any unrealised profits or losses have been eliminated on
consolidation. Subsidiaries are consolidated from the date on which control is obtained by the group and are de
recognised from the date that control ceases.
Equity interests in a subsidiary not attributable, directly or indirectly, to the group are presented as non controlling
interests. Non controlling interests are initially recognised either at fair value or at the non controlling interests’
proportionate share of the acquired entity’s net identifiable assets. This decision is made on an acquisition by
acquisition basis. Non controlling interests in the results of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income and the statement of financial position respectively.
(f) Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements in accordance with AASB requires management to make judgements,
estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income
and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis for making the judgements
about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised; if it affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods.
(i) Significant accounting judgements include:
Exploration and evaluation costs
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These
costs are carried forward in respect of an area that has not at reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active Group
operations in, or relating to, the area of interest are continuing.
(ii) Significant accounting estimates and assumptions include:
Impairment of exploration and evaluation assets
The ultimate recoupment of the value of exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively, sale, of the exploration and evaluation assets.
On a regular basis, management consider whether there are indicators as to whether the asset carrying values
exceed their recoverable amounts. This consideration includes assessment of the following:
(a) expiration of the period for which the entity has the right to explore in the specific area of interest with no plans
for renewal;
(b) substantive expenditure on further exploration for and evaluation in the specific area is neither budgeted nor
planned;
(c) exploration for and evaluation activities have not led to the discovery of commercially viable quantities of mineral
resources and the entity has decided to discontinue such activities in the specific area;
(d) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development
or by sale.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-27-
Brightstar Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) Critical accounting judgements and key sources of estimation uncertainty (continued)
Where an impairment indicator is identified, the determination of the recoverable amount requires the use of estimates
and judgement in determining the inputs and assumptions used in determining the recoverable amounts.
The key areas of judgement and estimate include:
- Recent exploration and evaluation results and resource estimates;
-
-
Environmental issues that may impact on the underlying tenements;
Fundamental economic factors that have an impact on the operations and carrying values of assets and
liabilities.
Recoverability of Mine Property and Plant
Certain assumptions are required to be made in order to assess the recoverability of Mine Property and Plant. The
recoverable amount of Mine Property and Plant is the higher of fair value less costs of disposal and value in use. Mine
Property and Plant values are tested on a “Fair value less costs of disposal” as a basis to determine any impairment.
In estimating the fair value of Mine Property and Plant, the Group engages third party qualified valuers to perform the
valuation of Mine Property and Plant.
The key areas of judgement and estimate include:
-- Auction Value of Mine Property and Plant (last performed in July 2017); and
-- Fundamental economic factors that have an impact on the operations and carrying values of assets and liabilities.
Provision for restoration and rehabilitation obligations
The estimated costs of future site rehabilitation and restoration, including heritage preservation where required,
associated with previous mining and/or exploration activity are provided for as and when an obligation arises and
are included in the costs of the related area of interest. These costs include the dismantling and removal of any plant,
equipment and building structures and rehabilitation, where such work is deemed appropriate by the relevant
government authorities and the cost of making safe any remaining aspects of the previous mining operation. The
costs are based on estimates of future costs, current legal requirements and existing technology.
The provision is based on the best available information of costs expected to be incurred at the expiry of the respective
license agreements. Such costs have been provided for at the present value of future expected expenditure
discounted using a rate adjusted for risks specific to the liability. On an ongoing basis the closure liability is
remeasured at each reporting period in line with the changes in time value of money (recognised as a finance expense
in profit or loss and an increase in provision), and changes in estimates of future costs or methods of rehabilitation.
Changes in the closure liability are recognised prospectively.
Certain assumptions are required to be made in determining the amount expected to be incurred to settle its
obligations in relation to restoration and rehabilitation of the mine site. Key assumptions include the amount and
timing of future cash flow estimates.
Share-based payments
The Group measures the cost of equity-settled transactions with suppliers and employees by reference to the fair
value of the goods or services received provided this can be estimated reliably. If a reliable estimate cannot be made
the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument
granted. The fair value of the equity instruments granted is determined using an appropriate option pricing model
taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets
and liabilities within the next annual reporting period but may impact profit or loss and equity. Please refer to Note 19
for further details.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-27-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-28-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) Critical accounting judgements and key sources of estimation uncertainty (continued)
(g)
Income tax
Where an impairment indicator is identified, the determination of the recoverable amount requires the use of estimates
and judgement in determining the inputs and assumptions used in determining the recoverable amounts.
The key areas of judgement and estimate include:
- Recent exploration and evaluation results and resource estimates;
Environmental issues that may impact on the underlying tenements;
-
-
liabilities.
Fundamental economic factors that have an impact on the operations and carrying values of assets and
Recoverability of Mine Property and Plant
Certain assumptions are required to be made in order to assess the recoverability of Mine Property and Plant. The
recoverable amount of Mine Property and Plant is the higher of fair value less costs of disposal and value in use. Mine
Property and Plant values are tested on a “Fair value less costs of disposal” as a basis to determine any impairment.
In estimating the fair value of Mine Property and Plant, the Group engages third party qualified valuers to perform the
valuation of Mine Property and Plant.
The key areas of judgement and estimate include:
-- Auction Value of Mine Property and Plant (last performed in July 2017); and
-- Fundamental economic factors that have an impact on the operations and carrying values of assets and liabilities.
Provision for restoration and rehabilitation obligations
The estimated costs of future site rehabilitation and restoration, including heritage preservation where required,
associated with previous mining and/or exploration activity are provided for as and when an obligation arises and
are included in the costs of the related area of interest. These costs include the dismantling and removal of any plant,
equipment and building structures and rehabilitation, where such work is deemed appropriate by the relevant
government authorities and the cost of making safe any remaining aspects of the previous mining operation. The
costs are based on estimates of future costs, current legal requirements and existing technology.
The provision is based on the best available information of costs expected to be incurred at the expiry of the respective
license agreements. Such costs have been provided for at the present value of future expected expenditure
discounted using a rate adjusted for risks specific to the liability. On an ongoing basis the closure liability is
remeasured at each reporting period in line with the changes in time value of money (recognised as a finance expense
in profit or loss and an increase in provision), and changes in estimates of future costs or methods of rehabilitation.
Changes in the closure liability are recognised prospectively.
Certain assumptions are required to be made in determining the amount expected to be incurred to settle its
obligations in relation to restoration and rehabilitation of the mine site. Key assumptions include the amount and
timing of future cash flow estimates.
Share-based payments
The Group measures the cost of equity-settled transactions with suppliers and employees by reference to the fair
value of the goods or services received provided this can be estimated reliably. If a reliable estimate cannot be made
the value of the goods or services is determined indirectly by reference to the fair value of the equity instrument
granted. The fair value of the equity instruments granted is determined using an appropriate option pricing model
taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets
and liabilities within the next annual reporting period but may impact profit or loss and equity. Please refer to Note 19
for further details.
Current income tax expense or revenue is the tax payable on the current period's taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities.
Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates when the assets
are expected to be recovered or liabilities are settled. Deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill. Deferred income tax is also not recognised if it arises from the 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 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.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
(h) Goods and services tax (GST)
Revenues, expenses and purchased assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost
of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing
and financing activities, which are disclosed as operating cash flows.
(i) Cash and cash equivalents
Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original maturity of three
months or less held at call with financial institutions, and bank overdrafts. Bank overdrafts are shown within borrowings
in current liabilities on the statement of financial position.
(j) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is
incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the
plant and equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Office furniture and equipment
Plant and equipment
Motor vehicles
5 - 8 years
3 - 5 years
4 - 5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is based on the fair value less costs of disposal.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of profit or loss as impairment
expenses.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-29-
Brightstar Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(k) Exploration and evaluation
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration
and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
(k) Exploration and evaluation (continued)
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised
of assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a particular
area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount
of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger
than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
(l) Mine development expenditure
Mine development expenditure represents the accumulation of all exploration and evaluation expenditure incurred in
respect of areas of interest in which a decision to mine has been made. Plant construction and commissioning costs
are included as mine development expenditure until the commissioning phase is completed.
Once commission phase is completed and production commences, all assets under mine development expenditure
is transferred to mine property and plant. As at the date of the financial report, there are no mine development
expenditure recognised by the Group.
(m) Mine property and plant
Once mine construction is completed, assets from mine development expenditure are transferred to mine property
and plant (which is a sub category in property, plant and equipment). Mine property and plant are stated at cost, less
accumulated depreciation and accumulated losses.
When further development expenditure is incurred in respect of mine property after the commencement of production,
such expenditure is carried forward as part of mine development expenditure only when substantial future economic
benefits are thereby established, otherwise such expenditure is classified as part of the cost of production.
Where mine property and plant is in production, amortisation of mine property and plant is provided on a unit of
production basis, which results in a write off of the cost proportional to the depletion of the proven and probable mineral
reserves. In accordance with its policy, the Company reviews the estimated useful lives of its mine property and plant
on an ongoing basis.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-29-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-30-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Brightstar Resources Limited
Brightstar Resources Limited
(ii) Derecognition and disposal
are expected from its use or disposal.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(k) Exploration and evaluation
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration
and evaluation asset in the year in which they are incurred where the following conditions are satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
(k) Exploration and evaluation (continued)
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised
of assets used in exploration and evaluation activities. General and administrative costs are only included in the
measurement of exploration and evaluation costs where they are related directly to operational activities in a particular
area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount
of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger
than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant
exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
(l) Mine development expenditure
Mine development expenditure represents the accumulation of all exploration and evaluation expenditure incurred in
respect of areas of interest in which a decision to mine has been made. Plant construction and commissioning costs
are included as mine development expenditure until the commissioning phase is completed.
Once commission phase is completed and production commences, all assets under mine development expenditure
is transferred to mine property and plant. As at the date of the financial report, there are no mine development
expenditure recognised by the Group.
(m) Mine property and plant
Once mine construction is completed, assets from mine development expenditure are transferred to mine property
and plant (which is a sub category in property, plant and equipment). Mine property and plant are stated at cost, less
accumulated depreciation and accumulated losses.
When further development expenditure is incurred in respect of mine property after the commencement of production,
such expenditure is carried forward as part of mine development expenditure only when substantial future economic
benefits are thereby established, otherwise such expenditure is classified as part of the cost of production.
Where mine property and plant is in production, amortisation of mine property and plant is provided on a unit of
production basis, which results in a write off of the cost proportional to the depletion of the proven and probable mineral
reserves. In accordance with its policy, the Company reviews the estimated useful lives of its mine property and plant
on an ongoing basis.
Where the Group’s mine property and plant is in care and maintenance, the Group has impaired assets to its fair value
less cost of disposal and the Group amortises over a straight-line basis to account for the physical wear and tear while
the asset remains idle, over an estimated remaining useful life of 5 years.
The net carrying value of each area of interest is reviewed regularly and to the extent to which this value exceeds its
recoverable amount, the excess is fully provided against or written off in the financial year in which this is determined.
(n) Leases
At the commencement date of a lease (other than leases of 12-months or less and leases of low value assets), the
group recognises a lease asset representing its right to use the underlying asset and a lease liability representing its
obligation to make lease payments.
(n) Leases (continued)
Lease assets
Lease assets are initially recognised at cost, comprising the amount of the initial measurement of the lease liability,
any lease payments made at or before the commencement date of the lease, less any lease incentives received, any
initial direct costs incurred by the group, and an estimate of costs to be incurred by the group in dismantling and
removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
Subsequent to initial recognition, lease assets are measured at cost (adjusted for any remeasurement of the
associated lease liability), less accumulated depreciation and any accumulated impairment loss.
Lease assets are depreciated over the shorter of the lease term and the estimated useful life of the underlying asset,
consistent with the estimated consumption of the economic benefits embodied in the underlying asset.
Lease liabilities
Lease liabilities are initially recognised at the present value of the future lease payments (i.e., the lease payments that
are unpaid at the commencement date of the lease). These lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined, or otherwise using the group’s incremental borrowing rate.
Subsequent to initial recognition, lease liabilities are measured at the present value of the remaining lease payments
(i.e., the lease payments that are unpaid at the reporting date). Interest expense on lease liabilities is recognised in
profit or loss (presented as a component of finance costs). Lease liabilities are remeasured to reflect changes to lease
terms, changes to lease payments and any lease modifications not accounted for as separate leases.
Variable lease payments not included in the measurement of lease liabilities are recognised as an expense when
incurred.
Leases of 12-months or less and leases of low value assets
Lease payments made in relation to leases of 12-months or less and leases of low value assets (for which a lease
asset and a lease liability has not been recognised) are recognised as an expense on a straight-line basis over the
lease term.
(o) Non-current assets held for sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount
and fair value less costs to sell.
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered
through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale
is highly probable, and the asset (or disposal group) is available for immediate sale in its present condition.
Management must be committed to the sale which should be expected to qualify for recognition as a completed
sale within one year from the date of classification.
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-31-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Borrowing costs
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of
lease arrangements, and exchange differences arising from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs.
Borrowing costs are expensed as incurred, except for borrowing costs incurred as part of the cost of the construction
of a qualifying asset, in which case the costs are capitalised until the asset is ready for its intended use or sale.
(q) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions to the instrument. For financial assets, this is the date that the Company commits itself to either the
purchase or sale of the assets (i.e. trade date accounting is adopted). Financial assets and liabilities are initially
measured at their fair value.
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at initial recognition.
Financial assets
Financial assets are subsequently measured at fair value through profit or loss. With respect to trade and other
receivables, these are recognised at the consideration that is unconditional which is considered to be fair value. The
Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected
credit loss allowance for all trade receivables.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option
on initial classification and is irrevocable until the financial asset is derecognised.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement
of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e., when the obligation in the contract is discharged, cancelled or
expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition
of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder’s contractual rights to its cash flows expire, or the asset is
transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for derecognition of financial assets:
-
-
-
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Company no longer controls the asset (i.e., the Company has no practical ability to make a unilateral decision
to sell the asset to a third party).
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-31-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-32-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Borrowing costs
(r) Provisions – Employee benefits
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of
(i) Wages, Salaries and Annual Leave
lease arrangements, and exchange differences arising from foreign currency borrowings to the extent that they are
regarded as an adjustment to interest costs.
Borrowing costs are expensed as incurred, except for borrowing costs incurred as part of the cost of the construction
of a qualifying asset, in which case the costs are capitalised until the asset is ready for its intended use or sale.
(q) Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions to the instrument. For financial assets, this is the date that the Company commits itself to either the
purchase or sale of the assets (i.e. trade date accounting is adopted). Financial assets and liabilities are initially
measured at their fair value.
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the
financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the
expected life of the instrument to the net carrying amount at initial recognition.
Financial assets
Financial assets are subsequently measured at fair value through profit or loss. With respect to trade and other
receivables, these are recognised at the consideration that is unconditional which is considered to be fair value. The
Group applies the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected
credit loss allowance for all trade receivables.
Derecognition
of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e., when the obligation in the contract is discharged, cancelled or
expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial
modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition
of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder’s contractual rights to its cash flows expire, or the asset is
transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for derecognition of financial assets:
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
-
-
-
the Company no longer controls the asset (i.e., the Company has no practical ability to make a unilateral decision
to sell the asset to a third party).
Liabilities for wages and salaries, including non-monetary benefits and annual leave are recognised in respect of
employees’ services up to the reporting date. They are measured at their nominal values using the remuneration rate
expected to apply at the time of settlement. Liabilities for non-accumulating sick leave are recognised when the leave
is taken and are measured at the rates paid or payable.
(ii) Long Service Leave
The liability for long service leave is recognised and measured at the present value of expected future payments to
be made in respect of services provided by employees up to the reporting. Consideration is given to expected future
wage and salary levels, experience of employee of departures, and period of service.
(s) Provision for restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of development
activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and
the amount of the provision can be measured reliably. The estimated future obligations include the costs of abandoning
sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle
the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes in the
estimate are reflected in the present value of the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and
amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory
in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of
the provision for restoration and rehabilitation are treated in the same manner unless they are not expected to be
recovered over the course of the Groups operation where they are recognised in the Statement of Profit or Loss. The
unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised
into the cost of the related asset.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option
on initial classification and is irrevocable until the financial asset is derecognised.
(t) Share Capital
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement
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.
(u) Earnings per share
Basic earnings per share (‘EPS’) is calculated as net profit or loss attributable to members of the Company for the
reporting period, after excluding any costs for servicing equity (other than ordinary shares and converting preference
shares classified as ordinary shares for EPS calculation purposes), by the weighted average number of ordinary
shares of the Company, adjusted for any bonus element.
Diluted earnings is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary share and the effect on revenues and expenses of conversion, by the
weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted for any bonus element.
(v) Other revenue and other income
Interest revenue is measured in accordance with the effective interest method.
Dividend and other distribution revenue is recognised when the right to receive a dividend or other distribution has
been established. Dividends and other distributions received from associates and joint ventures are accounted for in
accordance with the equity method.
All revenue is measured net of the amount of goods and services tax (GST).
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-33-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w) Government grants
The Group recognises stimulus package from the Australian Taxation Office (“ATO”) as a government grant when
there is reasonable assurance that the entity will comply with the conditions attached to them, and the grant will be
received. The amount is recognised as other income in profit or loss.
(x) Non-current assets held for sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount
and fair value less cost to sell. These assets are classified as held for sale if their carrying amount will be recovered
through a sale transaction rather than continuing use. The condition is regarded as met only when the sale is highly
probably, the asset (or disposal group) is available for immediate sale in its present condition and management is
committed to the sale within one year from the date of classification.
NOTE 2: PROFIT BEFORE INCOME TAX EXPENSE
(a) Other income
Sale of sundry product on mine plant
Bank interest
Shared service income (Note 22)
Gain/(Loss) from sale of other financial assets (Note 8)
Gain from sale of non-current assets
Gain from sale of exploration assets (1)
Debt forgiven (2)
Creditor Written-Off
Dividends
Government grant
Other
Consolidated
2021
$
2020
$
-
419
96,065
(1,361,246)
7,912
5,872,106
57,252,627
37,500
105,867
50,000
(784)
127,610
590
183,916
590
2,000
-
-
-
-
50,000
633
62,060,466
364,749
(1) Divestment of Ben Hur Project was announced completed on 2 September 2020. The Group received
$9,750,000 in Regis Resources Limited shares and $250,000 in cash consideration. A $5,872,106 gain on
sale was recognised as other income in the current period.
Consideration
Fair value of assets held for sale
Fair value of liabilities held for sale
Net gain from sale of exploration assets
$
10,000,000
(5,365,694)
1,237,800
5,872,106
(2) During the period, $57,252,627 of debt that the Company owed to its previous major shareholder and major
debt provider (Stone Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”)) was
cancelled upon completion of Debit and Equity Compromise Agreement (“DECA”) on 18 November 2020.
Refer to Note 15 Borrowings for further information.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-33-
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w) Government grants
The Group recognises stimulus package from the Australian Taxation Office (“ATO”) as a government grant when
there is reasonable assurance that the entity will comply with the conditions attached to them, and the grant will be
received. The amount is recognised as other income in profit or loss.
(x) Non-current assets held for sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount
and fair value less cost to sell. These assets are classified as held for sale if their carrying amount will be recovered
through a sale transaction rather than continuing use. The condition is regarded as met only when the sale is highly
probably, the asset (or disposal group) is available for immediate sale in its present condition and management is
committed to the sale within one year from the date of classification.
-34-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 2: PROFIT BEFORE INCOME TAX EXPENSE (Continued)
(b) Mine site expenses
Mine site expenditure under care and maintenance
(c) Depreciation and amortisation expense
Mine property and plant
Property, plant and equipment
Right-of-use assets
Consolidated
2021
$
2020
$
(d) Impairment expense
Impairment of deferred exploration expenditure Alpha Mine
Impairment on relinquished tenements
(e) Finance costs
Interest expenses
Unwind of discount – financial liability (refer to Note 10)
(f) Share-based payments are included within:
Administration expenses (refer to Note 18)
Employee benefits expense (refer to Note 18)
Consulting expenses (refer to Note 19)
(g) Employee benefits expense:
Wages and salaries
Superannuation
Share-based payment expense (refer to Note 18)
Other employment related expenses
NOTE 2: PROFIT BEFORE INCOME TAX EXPENSE
(a) Other income
Sale of sundry product on mine plant
Bank interest
Shared service income (Note 22)
Gain/(Loss) from sale of other financial assets (Note 8)
Gain from sale of non-current assets
Gain from sale of exploration assets (1)
Debt forgiven (2)
Creditor Written-Off
Dividends
Government grant
Other
127,610
590
183,916
590
2,000
-
-
-
-
50,000
633
-
419
96,065
(1,361,246)
7,912
5,872,106
57,252,627
37,500
105,867
50,000
(784)
$
10,000,000
(5,365,694)
1,237,800
5,872,106
(1) Divestment of Ben Hur Project was announced completed on 2 September 2020. The Group received
$9,750,000 in Regis Resources Limited shares and $250,000 in cash consideration. A $5,872,106 gain on
sale was recognised as other income in the current period.
62,060,466
364,749
Consideration
Fair value of assets held for sale
Fair value of liabilities held for sale
Net gain from sale of exploration assets
(2) During the period, $57,252,627 of debt that the Company owed to its previous major shareholder and major
debt provider (Stone Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”)) was
cancelled upon completion of Debit and Equity Compromise Agreement (“DECA”) on 18 November 2020.
Refer to Note 15 Borrowings for further information.
Consolidated
2021
$
2020
$
332,002
554,457
358,984
6,506
16,966
382,456
358,984
3,347
17,505
379,836
32,084
-
32,084
19,810
1,056,002
1,075,812
1,240,463
3,035,368
382,520
-
1,622,983
3,035,368
59,850
300,000
427,066
786,916
299,028
25,114
300,000
78,499
702,641
-
-
50,575
50,575
259,600
24,702
-
50,038
334,340
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-35-
NOTE 3: INCOME TAX
Brightstar Resources Limited
Consolidated
2021
$
2020
$
(a) Income tax recognised in statement of income
Accounting loss before tax from continuing operations
60,551,860
(6,617,894)
Income tax expense/(benefit) calculated at an income tax rate of % (2020:27.5%)
18,165,558
(1,819,921)
Non-deductible expenses:
Non-assessable debt forgiveness income
Franking credits converted to losses
Utilisation of previously unrecognised losses
468,950
63,342
(17,202,038)
(31,760)
(1,400,710)
-
-
-
Unused tax losses and temporary differences not recognised
Income tax expense reported in the statement of comprehensive income
-
-
1,756,579
-
(b) Recognised deferred tax balances 30% (2020: 27.5%)
Deferred tax assets comprise:
Losses offset against future taxable income – revenue
5,952,417
5,446,545
Provision for doubtful debts
Mining assets (plant and equipment)
Provision for rehabilitation
Other business related costs
Other provisions
Accrued expenses
Deferred tax losses not brought to account
Deferred tax liabilities comprise:
Prepayments
Accrued income
Exploration expenditure capitalised
44,041
422,207
906,376
16,130
33,822
29,188
(4,714,184)
2,689,997
-
299,836
1,902,228
-
28,481
34,394
5,446,545
2,552,025
(3,803)
-
-
(102)
(2,686,194)
(2,551,923)
(2,689,997)
(2,552,025)
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2020: 27.5%) payable by Australian corporate
entities on taxable profits under Australian tax law. At 30 June 2021, legislation to reduce the small business tax rate from
27.5% for 2020 financial year to 26% for the 2021 financial year has been enacted. The company does not currently qualify
as a Small Business Entity and as such has recognised future deferred tax assets at 30%. The Company has conducted
a preliminary review in respect of losses incurred prior to 4 November 2011 and has determined that they are likely able
to be used by meeting the Same Business Test (SBT) and Continuity of Ownership Test (COT). Losses incurred between
4 November 2011 and the date of the effectuation of the DECA are able to be utilised under the COT.
(c) Unrecognised deferred tax assets
The Group has unrecognised deferred assets compromising relating to revenue tax losses of $19,841,391 (2020:
$23,232,925), capital tax losses of $287,945 (2020: $7,945) and other deferred tax assets arising from temporary
differences of $4,714,184 (2020: $5,446,545).
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-35-
NOTE 3: INCOME TAX
(a) Income tax recognised in statement of income
Accounting loss before tax from continuing operations
60,551,860
(6,617,894)
Income tax expense/(benefit) calculated at an income tax rate of % (2020:27.5%)
18,165,558
(1,819,921)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-36-
NOTE 4: SEGMENT REPORTING
The group has identified its operating segments based on the internal reports that are reviewed and used by the board of
directors in assessing performance and determining the allocation of resources. Reportable segments disclosed are based
on aggregating operating segments, where the segments have similar characteristics. The group’s sole activity is mineral
exploration and resource development wholly within Australia; therefore the Group considers that it has one reportable
segment being mineral exploration with the state of Western Australia.
The reportable segment is represented by the primary statements forming these financial statements.
468,950
63,342
NOTE 5: EARNINGS PER SHARE
Basic and diluted earnings / (loss) per share:
Total basic earnings/(loss) per share
Total diluted earnings/(loss) per share
Basic and diluted earnings / (loss) per share
The earnings and weighted average number of ordinary shares used in the calculation
of basic and diluted earnings / (loss) per share is as follows:
Earnings / (Loss)
Consolidated
2021
2020
Cents per
share
Cents per
share
10.25
9.89
(0.80)
(0.80)
$
$
60,551,860 (6,617,894)
Weighted average number of ordinary shares for the purposes of basic loss per share
590,814,907
829,475,335
Adjusted weighted average number of ordinary shares for the purposes of diluted loss
per share
612,302,578
829,475,335
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Consolidated
2021
$
2020
$
985,036
50,032
985,036
50,032
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying
periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
At 30 June 2021, the Group did not have any undrawn committed borrowing facilities.
(i) Reconciliation to Cash Flow Statement
Cash and cash equivalents as shown in the Statement of Cash Flows is reconciled to the related items in the Statement
of Financial Position as follows:
Cash and cash equivalents
Consolidated
2021
$
2020
$
985,036
50,032
Unused tax losses and temporary differences not recognised
1,756,579
Income tax expense reported in the statement of comprehensive income
(b) Recognised deferred tax balances 30% (2020: 27.5%)
Deferred tax assets comprise:
Losses offset against future taxable income – revenue
5,952,417
5,446,545
Non-deductible expenses:
Non-assessable debt forgiveness income
Franking credits converted to losses
Utilisation of previously unrecognised losses
Provision for doubtful debts
Mining assets (plant and equipment)
Provision for rehabilitation
Other business related costs
Other provisions
Accrued expenses
Deferred tax losses not brought to account
Deferred tax liabilities comprise:
Prepayments
Accrued income
Exploration expenditure capitalised
Consolidated
2021
$
2020
$
(17,202,038)
(31,760)
(1,400,710)
-
-
44,041
422,207
906,376
16,130
33,822
29,188
(4,714,184)
2,689,997
-
-
-
-
-
-
299,836
1,902,228
28,481
34,394
5,446,545
2,552,025
(3,803)
-
-
(102)
(2,686,194)
(2,551,923)
(2,689,997)
(2,552,025)
The tax rate used in the above reconciliation is the corporate tax rate of 30% (2020: 27.5%) payable by Australian corporate
entities on taxable profits under Australian tax law. At 30 June 2021, legislation to reduce the small business tax rate from
27.5% for 2020 financial year to 26% for the 2021 financial year has been enacted. The company does not currently qualify
as a Small Business Entity and as such has recognised future deferred tax assets at 30%. The Company has conducted
a preliminary review in respect of losses incurred prior to 4 November 2011 and has determined that they are likely able
to be used by meeting the Same Business Test (SBT) and Continuity of Ownership Test (COT). Losses incurred between
4 November 2011 and the date of the effectuation of the DECA are able to be utilised under the COT.
(c) Unrecognised deferred tax assets
The Group has unrecognised deferred assets compromising relating to revenue tax losses of $19,841,391 (2020:
$23,232,925), capital tax losses of $287,945 (2020: $7,945) and other deferred tax assets arising from temporary
differences of $4,714,184 (2020: $5,446,545).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 6: CASH AND CASH EQUIVALENTS (Continued)
-37-
(ii) Reconciliation of loss for the year to net cash flows used in operating activities
Brightstar Resources Limited
Profit/(loss) for the year:
Depreciation
Impairment expenses
Exploration expenditure written off
Gain / (Loss) from sale of other financial assets
Gain / (Loss) from sale of exploration assets
(Gain) / Loss from sale of non-current asset
Debt forgiven
Creditor written-off
Unwind on the deferred DECA payment recorded at amortised cost
Interest on lease liabilities
Other non-cash balance
Equity payment to suppliers and key management personnel
(Increase)/decrease in assets:
Current receivables
Other current assets
Increase/(decrease) in liabilities:
Current payables
Current provisions
Provision for rehabilitation
Net cash used in operating activities
Consolidated
2021
$
2020
$
60,551,860
(6,617,894)
382,456
32,084
-
1,361,246
(5,872,106)
379,836
1,075,812
1,079,134
-
-
(7,912)
(2,000)
(35,436,134)
(37,500)
382,520
1,969
35,531
786,916
35,438
(6,693)
-
-
-
2,075
-
50,575
22,272
3,070
(20,021,508)
3,136,883
1,491
(3,033,794)
25,839
341,271
(844,136)
(503,127)
(iii) Non-cash investing and financing activities
The Group issued 4,000,000 fully paid ordinary shares at $0.05 per share to Mining Equities Pty Ltd as consideration for
the acquisition of tenement E38/3438. This amount has been capitalised into deferred exploration and evaluation
expenditure at 30 June 2021. Refer to Note 12 for further details.
The Group also issued 30,000,000 and 3,150,000 fully paid ordinary shares to Mr Hobba and Mr Hunt respectively.
These shares were issued for $NIL consideration in lieu of remuneration and reimbursements outstanding to Mr Hobba
($300,000), and in lieu of a portion of Mr Hunt’s remuneration over the next 12 months. These amounts were issued in
November 2020 upon receiving approval for their issue at the AGM. Refer to Note 18 for further details.
NOTE 7: TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other receivables
Consolidated
2021
$
2020
$
-
179
179
35,224
393
35,617
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 8: OTHER FINANCIAL ASSETS
-38-
Deposit for credit cards
Consolidated
2021
$
2020
$
25,000
25,000
25,000
25,000
(7,912)
(2,000)
Reconciliation of the movement in equity instruments at fair value through profit or loss is as follows:
During the year, the Group received 1,823,332 fully paid ordinary shares in Regis Resources Limited (“Regis) on 3
September 2020 as consideration for sale of the Ben Hur project. All the Regis shares had been either transferred to
SRHKL in accordance with the DECA agreed (refer to Note 15) or sold on market before 30 June 2021. A loss of
$1,361,246 was realised on the sale of Regis shares.
Balance at the beginning of the year
Receipt of shares from Regis
Sold on market
Transferred to SRHKL in accordance with the DECA
Gain/(loss) recognised on sale of financial instruments
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
Consolidated
2021
$
2020
$
9,750,000
(4,628,618)
(3,760,136)
(1,361,246)
-
-
-
-
-
-
Consolidated
Office
furniture and
equipment
Plant and
equipment Motor vehicles
Mine property
and plant1
$
$
$
$
Total
$
Year ended 30 June 2021
At 1 July 2020, net of accumulated
depreciation and impairment
Additions
Disposal / write-offs
518
1,729
755
717,967
720,969
29,150
(88)
-
-
70,359
-
-
-
99,508
(88)
Depreciation charge for the year
(2,702)
(1,090)
(2,715)
(358,984)
(365,491)
At 30 June 2021, net of accumulated
depreciation and impairment
26,877
639
68,399
358,983
454,899
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 6: CASH AND CASH EQUIVALENTS (Continued)
-37-
(ii) Reconciliation of loss for the year to net cash flows used in operating activities
Profit/(loss) for the year:
Depreciation
Impairment expenses
Exploration expenditure written off
Gain / (Loss) from sale of other financial assets
Gain / (Loss) from sale of exploration assets
(Gain) / Loss from sale of non-current asset
Debt forgiven
Creditor written-off
Interest on lease liabilities
Other non-cash balance
(Increase)/decrease in assets:
Current receivables
Other current assets
Increase/(decrease) in liabilities:
Current payables
Current provisions
Provision for rehabilitation
Net cash used in operating activities
Unwind on the deferred DECA payment recorded at amortised cost
Equity payment to suppliers and key management personnel
Consolidated
2021
$
2020
$
60,551,860
(6,617,894)
382,456
32,084
-
1,361,246
(5,872,106)
(35,436,134)
(37,500)
382,520
1,969
35,531
786,916
35,438
(6,693)
379,836
1,075,812
1,079,134
-
-
-
-
-
-
2,075
50,575
22,272
3,070
(20,021,508)
3,136,883
1,491
(3,033,794)
25,839
341,271
(844,136)
(503,127)
(iii) Non-cash investing and financing activities
The Group issued 4,000,000 fully paid ordinary shares at $0.05 per share to Mining Equities Pty Ltd as consideration for
the acquisition of tenement E38/3438. This amount has been capitalised into deferred exploration and evaluation
expenditure at 30 June 2021. Refer to Note 12 for further details.
The Group also issued 30,000,000 and 3,150,000 fully paid ordinary shares to Mr Hobba and Mr Hunt respectively.
These shares were issued for $NIL consideration in lieu of remuneration and reimbursements outstanding to Mr Hobba
($300,000), and in lieu of a portion of Mr Hunt’s remuneration over the next 12 months. These amounts were issued in
November 2020 upon receiving approval for their issue at the AGM. Refer to Note 18 for further details.
NOTE 7: TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Other receivables
Consolidated
2021
$
2020
$
-
179
179
35,224
393
35,617
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-39-
NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Brightstar Resources Limited
At 1 July 2020
Cost
Accumulated depreciation and
impairment
67,101
1,161,949
207,197
39,139,173
40,662,208
(66,583)
(1,160,220)
(206,442)
(38,421,206)
(39,854,451)
Net carrying amount
518
1,729
755
717,967
720,969
At 30 June 2021
Cost
Accumulated depreciation and
impairment
Net carrying amount
95,560
1,161,949
224,228
39,139,173
40,620,910
(68,683)
(1,161,310)
(155,829)
(38,780,190)
(40,166,012)
26,877
639
68,399
358,983
454,898
(1) Mine Property and Plant: Since processing of mined ore ceased in January 2012 and toll treatment ceased in
August 2012 and pending its reinstatement, an assessment of the recoverable value of non-current assets in
compliance with AASB 136 was carried out in accordance with assumptions disclosed in Note 1(f)
“Recoverability of mine property and plant” and impairments were recognised. The Board considered and
approved the value of mine property and plant as at 30 June 2021 of $358,983 (2020: $717,967) and the total
impairment value recognised of $14,941,733 remains unchanged. The Board recognise that the previously
impairment value of $14,941,733 can be written back in future periods.
NOTE 10: ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
On 25 March 2020, the Group announced the proposed of selling its northern tenements. These operations, which
were expected to be sold within 12 months, had been classified as held for sale and presented separately in the
statement of financial position in the previous report for the year ended 30 June 2020. Following the completion of
divestment announced on 2 September 2020, the balance of the assets and liabilities relating to the operations
classified as held for sale were either transferred to Profit & Loss or reclassified to their respective classification.
Tenements held for sale (1)
Total assets classified as held for sale
Provision for rehabilitation (1)
Total liabilities associated with assets classified as held for sale
Net assets of disposal group
Consolidated
2021
$
2020
$
-
-
-
-
-
11,172,169
11,172,169
3,733,200
3,733,200
7,438,969
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-39-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-40-
NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
NOTE 10: ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE (CONTINUED)
Brightstar Resources Limited
Brightstar Resources Limited
At 1 July 2020
Cost
Accumulated depreciation and
impairment
67,101
1,161,949
207,197
39,139,173
40,662,208
(66,583)
(1,160,220)
(206,442)
(38,421,206)
(39,854,451)
Net carrying amount
518
1,729
755
717,967
720,969
At 30 June 2021
Cost
impairment
Net carrying amount
Accumulated depreciation and
(68,683)
(1,161,310)
(155,829)
(38,780,190)
(40,166,012)
95,560
1,161,949
224,228
39,139,173
40,620,910
26,877
639
68,399
358,983
454,898
(1) Mine Property and Plant: Since processing of mined ore ceased in January 2012 and toll treatment ceased in
August 2012 and pending its reinstatement, an assessment of the recoverable value of non-current assets in
compliance with AASB 136 was carried out in accordance with assumptions disclosed in Note 1(f)
“Recoverability of mine property and plant” and impairments were recognised. The Board considered and
approved the value of mine property and plant as at 30 June 2021 of $358,983 (2020: $717,967) and the total
impairment value recognised of $14,941,733 remains unchanged. The Board recognise that the previously
impairment value of $14,941,733 can be written back in future periods.
NOTE 10: ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
On 25 March 2020, the Group announced the proposed of selling its northern tenements. These operations, which
were expected to be sold within 12 months, had been classified as held for sale and presented separately in the
statement of financial position in the previous report for the year ended 30 June 2020. Following the completion of
divestment announced on 2 September 2020, the balance of the assets and liabilities relating to the operations
classified as held for sale were either transferred to Profit & Loss or reclassified to their respective classification.
Tenements held for sale (1)
Total assets classified as held for sale
Provision for rehabilitation (1)
Total liabilities associated with assets classified as held for sale
Net assets of disposal group
Consolidated
2021
$
2020
$
-
-
-
-
-
11,172,169
11,172,169
3,733,200
3,733,200
7,438,969
(1) Assets and liabilities that were classified as held for sale at 30 June 2020 comprised the northern tenements (see
below) and the associated amount recognised as their cost for rehabilitation:
M38/346
M38/339
M38/917
M38/918
M38/160
M38/1241
E38/2894
E38/2452
E38/3198
E38/3199
E38/3234
L38/206
P38/4114
P38/4115
P38/4108
P38/4364
Only tenements E38/3199, E38/3234, M38/1241, M38/160, M38/339, P38/4114, P38/4115, P38/4364 and
L38/206 were sold in the current reporting period and the remaining northern tenements retained by the Group
have been reclassified from held for sale to their respective classification.
The divestment of Ben Hur Project was announced completed on 2 September 2020. The Group received $9,750,000
in Regis Resources Limited shares (1,823,332 fully paid ordinary shares) and $250,000 in cash consideration. A
$5,872,106 gain on sale was recognised as other income in the current period.
Consideration (cash and Regis shares)
Fair value of assets held for sale
Fair value of liabilities held for sale
Net gain from sale of exploration assets
Reconciliation of movement in assets and liabilities classified as held for sale:
Assets classified as held for sale
Balance at beginning of period
Additions
Sale of Ben Hur Project
Transferred back to evaluation and exploration expenditure
Balance at end of financial year
Liabilities classified as held for sale
Balance at beginning of period
Additions
Sale of Ben Hur Project
Transferred back to evaluation and exploration expenditure
Balance at end of financial year
NOTE 11: RIGHT-OF-USE ASSETS
Cost
Accumulated depreciation
Net carrying amount
$
10,000,000
(5,365,694)
1,237,800
5,872,106
Consolidated
2021
$
2020
$
11,172,169
-
12,537
11,172,169
(5,365,694)
(5,819,012)
-
-
-
11,172,169
(3,733,200)
-
-
(3,733,200)
1,237,800
2,495,400
-
-
-
(3,733,200)
Consolidated
2021
$
2020
$
48,044
(34,471)
13,573
49,523
(17,505)
32,018
-41-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 11: RIGHT-OF-USE ASSETS (CONTINUED)
Reconciliation of movement in Right-of-Use Assets
Year ended 30 June 2021
At 1 July 2020, net of accumulated depreciation
Discount received
Depreciation charge for the year
Net carrying amount
Brightstar Resources Limited
Office premises
$
32,018
(1,479)
(16,965)
13,574
Total
$
32,018
(1,479)
(16,966)
13,573
(1) The Group has one lease relating to its office premises in Perth. The right of use assets do not have an option
to purchase at the end of the term.
NOTE 12: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation expenditure
Balance at beginning of year
Expenditure incurred
Expenditure written off
Impairment of Alpha and Beta mines (2)
Impairment of relinquished tenements
Tenements transferred from/(to) held-for-sale (3)
Acquisition of tenement E38/3438 (4)
Balance at end of financial year
Consolidated
2021
$
2020
$
2,686,636
14,966,010
621,887
(32,220)
(32,084)
735,739
(767,132)
(19,810)
-
(1,056,002)
5,819,012
(11,172,169)
250,000
-
9,313,231
2,686,636
(1) The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is
dependent upon the successful development and commercial exploitation or sale of the respective areas.
(2) Mining in Beta and Alpha reached its designed pit depth in prior periods and evaluation is currently underway to
determine the future viability of these areas of interest. Notwithstanding, the balance of expenditure for Beta and
Alpha mines has been treated as impaired until recommencement of mining in these tenements.
(3) Capitalised expenditure relating to retained North tenements were transferred from/(to) assets from held-for-sale.
(4) As announced on 8 February 2021, the Group acquired a prospective exploration licence within Western Australia,
E38/3438, from Mining Equities Pty Ltd. Pursuant to the acquisition agreement, Mining Equities Pty Ltd received:
-
-
-
$50,000 in unlisted options over the Group, exercisable at 20 cents with a term of 3 years; and
A 1% net smelter royalty with respect of the tenement.
$200,000 in fully paid ordinary shares of the Group priced at the 5-day VWAP prior to their issue;
-41-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 11: RIGHT-OF-USE ASSETS (CONTINUED)
Reconciliation of movement in Right-of-Use Assets
Year ended 30 June 2021
At 1 July 2020, net of accumulated depreciation
Discount received
Depreciation charge for the year
Net carrying amount
Costs carried forward in respect of:
Exploration and evaluation expenditure
Balance at beginning of year
Expenditure incurred
Expenditure written off
Impairment of Alpha and Beta mines (2)
Impairment of relinquished tenements
Tenements transferred from/(to) held-for-sale (3)
Acquisition of tenement E38/3438 (4)
Balance at end of financial year
Office premises
$
32,018
(1,479)
(16,965)
13,574
Total
$
32,018
(1,479)
(16,966)
13,573
Consolidated
2021
$
2020
$
2,686,636
14,966,010
621,887
(32,220)
(32,084)
735,739
(767,132)
(19,810)
-
(1,056,002)
5,819,012
(11,172,169)
250,000
-
9,313,231
2,686,636
(1) The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is
dependent upon the successful development and commercial exploitation or sale of the respective areas.
(2) Mining in Beta and Alpha reached its designed pit depth in prior periods and evaluation is currently underway to
determine the future viability of these areas of interest. Notwithstanding, the balance of expenditure for Beta and
Alpha mines has been treated as impaired until recommencement of mining in these tenements.
(3) Capitalised expenditure relating to retained North tenements were transferred from/(to) assets from held-for-sale.
(4) As announced on 8 February 2021, the Group acquired a prospective exploration licence within Western Australia,
E38/3438, from Mining Equities Pty Ltd. Pursuant to the acquisition agreement, Mining Equities Pty Ltd received:
-
-
-
$200,000 in fully paid ordinary shares of the Group priced at the 5-day VWAP prior to their issue;
$50,000 in unlisted options over the Group, exercisable at 20 cents with a term of 3 years; and
A 1% net smelter royalty with respect of the tenement.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-42-
NOTE 13: TRADE AND OTHER PAYABLES (CURRENT)
Trade payables (1)
Other payables and accruals (2)
Interest accrual – SRL and SRHKL (refer Note 22)
Consolidated
2021
$
178,001
784,967
-
962,968
2020
$
206,390
839,052
20,088,679
21,134,121
(1) The Group has one lease relating to its office premises in Perth. The right of use assets do not have an option
to purchase at the end of the term.
has been fully paid by 31 July 2021.
(2) Other payables include
(1) Trade payables are non-interest bearing and are normally settled on 30-day terms. Balance disclosed under this item
- $550,347 interest accrued on a related party loan (Great Cortex International Ltd) (2020: $491,697) (refer Note 22).
- $135,309 outstanding and payable to Directors, Executives, and employees who mutually agreed with the Group to
defer the payment of a portion of their remuneration, which will be settled in either cash or equity at the Company’s
discretion
NOTE 12: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
NOTE 14: LEASE LIABILITIES
Current
Non-current
2021
$
2020
$
15,639
17,618
-
15,756
15,639
33,374
The Group does not face a significant liquidity risk with regards to its lease liabilities. Lease liabilities are monitored within
the Group’s treasury function. The lease liabilities relate to the Group’s office premise lease and is unsecured.
NOTE 15: BORROWINGS
Current
Loan from related party (1)
Convertible loan from related party (1)
Loan from related party (2)
Consolidated
2021
$
2020
$
-
-
630,000
630,000
34,936,134
500,000
630,000
36,066,134
(1) During the period, $57,252,627 debt (being opening 1 July 2020: $55,524,813, interest: $1,179,844, additional
payments made on behalf of Brightstar: $547,970, closing at 18 November 2020: $57,252,267), which was accruing
interest at 8.53% per annum, that the Company owed to its previous major shareholder and major debt provider
(Stone Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”)) was cancelled upon completion of
DECA on 18 November 2020. Both SRL and SRHKL are related parties by virtue of Mr. Yongji Duan, Non-Executive
Chairman of the Company, being a director of SRL and SRHKL.
(2) Great Cortex International Ltd was a related party by virtual of Mr. Yongji Duan, Non-executive Chairman of the
Company, being a director of Great Cortex International Ltd (Mr. Duan ceased to be a Director of Great Cortex before
30 June 2021). This related party provided a loan of $630,000 which accrues interest at 9.31% per annum to the
Company on 15 February 2012. Accrued interest, totalling $550,347, is included within trade and other payables.
Subsequent to year end, the Company has signed a settlement deed with Great Cortex to extend the repayment of
the principal amount to 18 November 2023 and waive all accrued interest owing. Refer to Note 24 for further details.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 16: PROVISIONS
-43-
Brightstar Resources Limited
At 1 July 2020
Current
Non-current
At 30 June 2021
Current
Non-current
Rehabilitation
Employee benefits
$
$
Total
$
-
3,583,061
3,583,061
-
3,044,667
3,044,667
111,249
-
111,249
112,740
-
112,740
111,249
3,583,061
3,694,310
112,740
3,044,667
3,157,407
The provision for rehabilitation represents the present value of estimated costs of site and pit rehabilitation based upon
costs of rehabilitation expected to be incurred at the date the rehabilitation is required and the area of currently disturbed
ground subject to rehabilitation as at balance date.
The Group recently completed an annual review and determined that it appropriate to reduce the current provision level
based on two major findings: (1) some of the costs being accounted no longer exist and/or were rehabilitated in prior
periods, and (2) unit rate prices and domain sizes used in previous calculation are overestimated. Adjustment of the
rehabilitation provision has been recognised in the Profit & Loss for the year ended 30 June 2021.
Reconciliation of movement in provision for rehabilitation:
Balance at beginning of financial year
Addition
Utilised
Transferred from/(to) Liabilities held for sale (Note 10)
Adjustment based on reassessment
Balance at end of financial year
NOTE 17: OTHER FINANCIAL LIABILITIES
Amounts payable under share buy-back (1)
Total other financial liabilities
Consolidated
2021
$
3,583,061
-
-
2020
$
6,974,990
341,271
-
2,495,400
(3,733,200)
(3,033,794)
-
3,044,667
3,583,061
Consolidated
2021
$
3,715,060
3,715,060
2020
$
-
-
(1) During the year, upon completion of DECA on 18 November 2020, the buy-back consideration for shares bought back
included a deferred payment of $5,400,000 to be paid in cash or shares under the Company’s election by 10 August
2023. As at this date, and 30 June 2021, the remaining buy-back consideration represents a financial instrument
measured at fair value on day one, then subsequently at amortised cost.
At initial recognition, with no influence over whether shareholders would approve the issue of shares, the Group valued
the liability portion at $3,332,530 (measured first) at net present value, with the residual $2,067,460 being attributed to
the equity component. The remaining liability is initially accounted for at fair value and subsequently measured at
amortised cost.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 16: PROVISIONS
-43-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 17: OTHER FINANCIAL LIABILITIES (CONTINUED)
-44-
Brightstar Resources Limited
Brightstar Resources Limited
At 1 July 2020
Current
Non-current
At 30 June 2021
Current
Non-current
Rehabilitation
Employee benefits
$
$
Total
$
3,583,061
3,583,061
-
-
3,044,667
3,044,667
111,249
-
111,249
112,740
-
112,740
111,249
3,583,061
3,694,310
112,740
3,044,667
3,157,407
The provision for rehabilitation represents the present value of estimated costs of site and pit rehabilitation based upon
costs of rehabilitation expected to be incurred at the date the rehabilitation is required and the area of currently disturbed
ground subject to rehabilitation as at balance date.
The Group recently completed an annual review and determined that it appropriate to reduce the current provision level
based on two major findings: (1) some of the costs being accounted no longer exist and/or were rehabilitated in prior
periods, and (2) unit rate prices and domain sizes used in previous calculation are overestimated. Adjustment of the
rehabilitation provision has been recognised in the Profit & Loss for the year ended 30 June 2021.
Reconciliation of movement in provision for rehabilitation:
Transferred from/(to) Liabilities held for sale (Note 10)
2,495,400
(3,733,200)
Balance at beginning of financial year
Addition
Utilised
Adjustment based on reassessment
Balance at end of financial year
NOTE 17: OTHER FINANCIAL LIABILITIES
Amounts payable under share buy-back (1)
Total other financial liabilities
Consolidated
2021
$
3,583,061
-
-
(3,033,794)
2020
$
6,974,990
341,271
-
-
3,044,667
3,583,061
Consolidated
2020
$
2021
$
3,715,060
3,715,060
-
-
(1) During the year, upon completion of DECA on 18 November 2020, the buy-back consideration for shares bought back
included a deferred payment of $5,400,000 to be paid in cash or shares under the Company’s election by 10 August
2023. As at this date, and 30 June 2021, the remaining buy-back consideration represents a financial instrument
measured at fair value on day one, then subsequently at amortised cost.
At initial recognition, with no influence over whether shareholders would approve the issue of shares, the Group valued
the liability portion at $3,332,530 (measured first) at net present value, with the residual $2,067,460 being attributed to
the equity component. The remaining liability is initially accounted for at fair value and subsequently measured at
amortised cost.
The periodic unwinding of the discount, at 19.37%, will be recognised in the Condensed Consolidated Statement of
Profit or Loss and Other Comprehensive Income as finance costs. For the year ended 30 June 2021, a finance loss of
$382,520 has been recognised.
NOTE 18: ISSUED CAPITAL
Ordinary shares issued and fully paid
Consolidated
2021
$
2020
$
37,857,909
51,541,309
Consolidated
2021
Consolidated
2020
No.
$
No.
$
Movement in ordinary shares on issue
Balance at beginning of financial year
836,053,708
51,541,309
811,646,126
51,467,992
Share issues (1)(2)(3)
37,150,000
559,850
24,407,582
77,161
Shares repurchase and cancellation (4)
(433,452,944)
(14,243,250)
Costs associated with issue of shares
-
-
-
-
-
(3,844)
Balance at end of financial year
439,750,764
37,857,909
836,053,708
51,541,309
(1) On 18 November 2020, the Company issued 30,000,000 ordinary fully paid shares to a director in lieu of
remuneration and reimbursements for carrying out their duties as directors of the Company. The shares were
issued at a deemed price of $0.0098 per share for a total value of $300,000.
(2) On 18 November 2020, the Company issued 3,150,000 ordinary fully paid shares to a director in lieu of
remuneration. The shares were issued at a deemed price of $0.019 per share for a total of $59,850.
(3) On 12 February 2021, the Company issued 4,000,000 ordinary fully paid shares as part consideration for purchase
of an exploration asset. The shares were issued at a 5-day volume weighted average price (VWAP) of $0.050 per
share for a total of $200,000.
(4) On 18 November 2020, upon the completion of the DECA, the Group bought back 433,452,944 fully paid ordinary
shares from SRL and SRHKL at a gross cost of $11,400,000. The net fair value of the consideration which includes
adjustment for the deferred consideration was $9,332,540. These shares have been subsequently cancelled. The
difference between the historical capital amount relating to these shares of $14,243,250 and the fair value of the
consideration, amounting to $4,910,910 has been recognised as an equity reserve.
NOTE 19: RESERVES
Balance at beginning of financial year
Share-based payments reserve (1)
Equity reserve (2)
Balance at end of financial year
Consolidated
2021
$
8,846
477,066
4,910,710
5,396,622
2020
$
-
8,846
-
8,846
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 19: RESERVES (CONTINUED)
-45-
(1) During the year, the Company issued 12,000,000 Options exercisable on or before 31 December 2023 to
Canaccord Genuity (3 tranches of 4,000,000) for services rendered in relation to the provision of on-going capital
markets strategy. The Options vested immediately. The fair value of these Options granted was calculated by using
the Black Scholes Option Pricing Model by applying the following inputs. The total expense recognised for the
period in respect of this issue was $274,174.
Number of instruments
Date of grant
Expiry date
Share price at grant date
Volatility factor
Risk free rate
Expected life of instrument (years)
Exercise price per instrument
Valuation per instrument
Total expense
Tranche 1
4,000,000
Tranche 2
4,000,000
Tranche 3
4,000,000
1 Sep 2020
1 Sep 2020
1 Sep 2020
31 Dec 2023
31 Dec 2023
31 Dec 2023
$0.024
241.79%
0.27%
3 years
$0.06
$0.0230
$91,936
$0.024
241.79%
0.27%
3 years
$0.08
$0.0228
$91,363
$0.024
241.79%
0.27%
3 years
$0.10
$0.0227
$90,875
On 8 September 2020, the Company agreed to issue 5,000,000 options exercisable on or before three years from
the issue date to PCF Capital Pty Ltd for services rendered in relation to the provision of on-going capital markets
strategy. The options were issued on 22 June 2021 and the fair value of these options was calculated by using
the Black Scholes Option Pricing Model by applying the following inputs. The total expense recognised for the
period in respect of this issue was $152,892.
Number of instruments
Date of grant
Expiry date
Share price at grant date
Volatility factor
Risk free rate
Expected life of instrument (years)
Exercise price per instrument
Valuation per instrument
Total expense
PCF Options
5,000,000
22 June 2021
22 June 2024
$0.032
239.84%
0.28%
3 years
$0.045
$0.0306
$152,892
On 12 February 2021, the Company issued 1,000,000 Options exercisable on or before 12 February 2024 as part
consideration for the acquisition of an exploration licence tenement. The total expense recognised for the period
in respect of this issue was $50,000.
Share-based payments reserve
Balance at beginning of financial year
Options issued (refer above)
Balance at end of financial year
Consolidated
2021
$
2020
$
8,846
477,066
485,912
-
8,846
8,846
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 19: RESERVES (CONTINUED)
-45-
(1) During the year, the Company issued 12,000,000 Options exercisable on or before 31 December 2023 to
Canaccord Genuity (3 tranches of 4,000,000) for services rendered in relation to the provision of on-going capital
markets strategy. The Options vested immediately. The fair value of these Options granted was calculated by using
the Black Scholes Option Pricing Model by applying the following inputs. The total expense recognised for the
period in respect of this issue was $274,174.
On 8 September 2020, the Company agreed to issue 5,000,000 options exercisable on or before three years from
the issue date to PCF Capital Pty Ltd for services rendered in relation to the provision of on-going capital markets
strategy. The options were issued on 22 June 2021 and the fair value of these options was calculated by using
the Black Scholes Option Pricing Model by applying the following inputs. The total expense recognised for the
period in respect of this issue was $152,892.
Number of instruments
Date of grant
Expiry date
Volatility factor
Risk free rate
Share price at grant date
Expected life of instrument (years)
Exercise price per instrument
Valuation per instrument
Total expense
Number of instruments
Date of grant
Expiry date
Volatility factor
Risk free rate
Share price at grant date
Expected life of instrument (years)
Exercise price per instrument
Valuation per instrument
Total expense
Share-based payments reserve
Balance at beginning of financial year
Options issued (refer above)
Balance at end of financial year
Tranche 1
4,000,000
Tranche 2
4,000,000
Tranche 3
4,000,000
1 Sep 2020
1 Sep 2020
1 Sep 2020
31 Dec 2023
31 Dec 2023
31 Dec 2023
$0.024
241.79%
0.27%
3 years
$0.06
$0.0230
$91,936
$0.024
241.79%
0.27%
3 years
$0.08
$0.0228
$91,363
$0.024
241.79%
0.27%
3 years
$0.10
$0.0227
$90,875
PCF Options
5,000,000
22 June 2021
22 June 2024
$0.032
239.84%
0.28%
3 years
$0.045
$0.0306
$152,892
Consolidated
2021
$
2020
$
8,846
477,066
485,912
-
8,846
8,846
On 12 February 2021, the Company issued 1,000,000 Options exercisable on or before 12 February 2024 as part
consideration for the acquisition of an exploration licence tenement. The total expense recognised for the period
in respect of this issue was $50,000.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-46-
NOTE 19: RESERVES (continued)
(2)
Equity reserve
Balance at beginning of financial year
Ordinary shares buy-back and cancellation
Balance at end of financial year
Consolidated
2021
$
2020
$
-
4,910,710
4,910,710
-
-
-
Nature and Purpose of Reserves
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to employees and unrelated parties for services or
acquisition.
Equity reserve
This reserve was created to record the difference between the fair value of the buy-back consideration and the historical
issue value of the buy-back shares upon completion of the DECA.
NOTE 20: FINANCIAL INSTRUMENTS
(a) Capital risk management
The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to equity holders of
the parent, comprising issued capital, reserves and retained earnings.
Operating cash flows are used to maintain and expand operations, as well as to make routine expenditures such as tax
and general administrative outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
(b) Categories of financial instruments
Financial assets
Cash and cash equivalents (Note 6)
Trade and receivables (Note 7)
Financial liabilities
Trade and other payables (Note 13)
Lease liabilities (Note 14)
Borrowings (Note 15)
Other financial liabilities (Note 17)
(c) Market risk
Consolidated
2021
$
2020
$
985,036
179
50,032
35,617
962,698
15,639
630,000
3,715,060
21,134,121
33,374
36,066,134
-
The Group’s mining operations were under care and maintenance throughout the current year and therefore not exposed
to market risk.
(d) Foreign currency risk management
The Group does not have any material exposure to foreign currency risk, other than its impact on the economy and
commodity price generally.
-47-
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
NOTE 20: FINANCIAL INSTRUMENTS (CONTINUED)
(e) Credit risk management
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the counterparty by failing to
discharge an obligation.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the reporting date of
recognised financial assets is the carrying amount of those assets, net of any allowance for credit losses, as disclosed in
consolidated statement of financial position and notes to the consolidated financial statements.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The credit risk on liquid
funds is limited because the counterparties are banks with a minimum credit rating of AA assigned by reputable credit
rating agencies. The Group’s maximum exposure to credit risk at the reporting date was. The Group does not have any
other material credit risk exposure to any single counterparty or group of counterparties under financial instruments entered
into by the group.
(f) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities.
The following table details the company’s and the Group’s expected maturity for its non-derivative financial liabilities. These
have been drawn up based on undiscounted contractual maturities of the financial assets including interest that will be
earned on those assets except where the Group anticipates that the cash flow will occur in a different period.
Consolidated
2021
Weighted
Average
Interest
rate
Less than 1
month
1 – 3 Months
3 months – 1
year
1 – 2 years
2 – 5 years
%
$
$
$
$
$
Non-interest bearing
962,968
Interest bearing loans
9.31%
630,000 (1)
-
-
-
-
Lease liabilities
Other financial
liabilities
4.91%
19.37%
1,348
2,696
11,595
-
-
-
- 5,400,000 (2)
1,594,316
2,696
11,595
-
5,400,000
-
-
-
-
-
-
2020
Non-interest bearing
21,134,121
Interest bearing loans
8.49%
35,436,134
Lease liabilities
4.91%
1,523
56,571,778
-
-
3,027
3,027
-
-
-
630,000
13,068
15,756
-
-
-
13,068
645,756
-
(1) Subsequent to year end, the Company has signed a settlement deed with Great Cortex to extend the repayment of
the principal amount to 18 November 2023 and waive all accrued interest (repayable on demand and included in
trade and other payables classified under non-interest bearing above) owing. Refer to Note 24 for further details.
(2) During the year, upon completion of DECA on 18 November 2020, the buy-back consideration for shares bought
back included a deferred payment be paid in cash or shares under the Company’s election by 10 August 2023 (see
Note 17 for further information).
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-47-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-48-
NOTE 20: FINANCIAL INSTRUMENTS (CONTINUED)
NOTE 20: FINANCIAL INSTRUMENTS (continued)
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the counterparty by failing to
(g) Commodity price risk
The Group’s mining operations were under care and maintenance throughout the current year and therefore not exposed
to commodity risk.
(h) Fair values
Set out below is a comparison by category of carrying amounts and fair values of all of the Group's financial instruments
recognised in the financial statements.
Carrying Amount
Fair Value
2021
$
2020
$
2021
$
2020
$
Financial Assets
Cash and cash equivalents
Trade and other receivables - current
985,036
179
50,032
35,617
985,036
179
50,032
35,617
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
962,968
21,134,121
15,639
33,374
630,000
36,066,134
962,968
15,639
630,000
21,134,121
33,374
36,066,134
Other financial liabilities
3,715,060
-
3,715,060
-
NOTE 21: COMMITMENTS AND CONTINGENCIES
Capital expenditure commitments
The Directors are not aware of any other commitments from the Group’s operations as at 30 June 2021.
Exploration commitments
The Group has an expenditure commitment of $703,670 (exc. GST) for the year 2021-22 to sustain current tenements
under lease from the Department of Mines, Industry Regulation and Safety (DMIRS). The expenditure commitment includes
annual tenement rentals of $124,702 (2020: $86,274).
Contingencies
The Company will pay SRHKL 3% net smelter return (“NSR”) royalty on gold produced from the tenements listed in the
Tenement Schedule in the Company’s 2020 Annual Report, less those sold to Regis Resources Limited during the period,
per Note 10. Subsequent to year end, the Group entered into a Royalty Sales agreement to buyback the above 3% NSR
royalty before 31 March. Refer to Note 24 for further information.
As announced on 8 February 2021, the Group acquired a prospective exploration licence within Western Australia,
E38/3438, from Mining Equities Pty Ltd. Pursuant to the acquisition agreement, Mining Equities Pty Ltd is entitled to a
1% net smelter royalty with respect of the tenement
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the reporting date of
recognised financial assets is the carrying amount of those assets, net of any allowance for credit losses, as disclosed in
consolidated statement of financial position and notes to the consolidated financial statements.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The credit risk on liquid
funds is limited because the counterparties are banks with a minimum credit rating of AA assigned by reputable credit
rating agencies. The Group’s maximum exposure to credit risk at the reporting date was. The Group does not have any
other material credit risk exposure to any single counterparty or group of counterparties under financial instruments entered
(e) Credit risk management
discharge an obligation.
into by the group.
(f) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities.
The following table details the company’s and the Group’s expected maturity for its non-derivative financial liabilities. These
have been drawn up based on undiscounted contractual maturities of the financial assets including interest that will be
earned on those assets except where the Group anticipates that the cash flow will occur in a different period.
Consolidated
2021
2020
Weighted
Average
Interest
rate
%
Less than 1
3 months – 1
month
1 – 3 Months
year
1 – 2 years
2 – 5 years
$
$
$
$
$
Non-interest bearing
962,968
Interest bearing loans
9.31%
630,000 (1)
Lease liabilities
Other financial
liabilities
4.91%
19.37%
1,348
2,696
11,595
-
- 5,400,000 (2)
1,594,316
2,696
11,595
5,400,000
-
-
-
-
-
3,027
3,027
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Non-interest bearing
21,134,121
Interest bearing loans
8.49%
35,436,134
Lease liabilities
4.91%
1,523
56,571,778
13,068
13,068
630,000
15,756
645,756
(1) Subsequent to year end, the Company has signed a settlement deed with Great Cortex to extend the repayment of
the principal amount to 18 November 2023 and waive all accrued interest (repayable on demand and included in
trade and other payables classified under non-interest bearing above) owing. Refer to Note 24 for further details.
(2) During the year, upon completion of DECA on 18 November 2020, the buy-back consideration for shares bought
back included a deferred payment be paid in cash or shares under the Company’s election by 10 August 2023 (see
Note 17 for further information).
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-49-
NOTE 22: RELATED PARTY DISCLOSURE
(a) Subsidiaries
Brightstar Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
The consolidated financial statements include the financial statements of Brightstar Resources Limited and the
subsidiaries listed in the following table.
Name
Country of
% Equity Interest
Incorporation
2021
2020
Desertex Resources Pty Ltd (1)
Desert Exploration Pty Ltd
Australia
Australia
-
100%
100%
100%
(1) Desertex Resources Pty Ltd was deregistered during the year.
(b) Transactions with related parties
The following table provides the total amount of transactions that were entered into with related parties for the relevant
financial year.
Income
from
Related
Parties
$’000
Interest
expense to
Related
Parties
$’000
Amounts
Owed by
Related
parties
$’000
Amounts
Owed to
Related
parties
(Loan)
$’000
Interest
Accrual to
Related
parties
$’000
Related party
Stone Resources (H.K.) Ltd (1)
2021
Stone Resources (H.K.) Ltd
2020
Great Cortex International Ltd (2) 2021
-
-
-
-
2,974,484
58,650
-
-
-
-
-
35,436,134
20,088,679
630,000
550,347
Great Cortex International Ltd
2020
-
58,811
-
630,000
491,697
Australia Stonefood Pty Ltd (3)
2021
96,065
Australia Stonefood Pty Ltd
2020
183,916
-
-
-
-
-
-
-
-
(1) $57,252,627 debt that the Company owed to its previous major shareholder and major debt provider (Stone
Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”)), including interest expense, was
cancelled upon completion of DECA on 18 November 2020. Both SRL and SRHKL are related parties by virtue of
Mr. Yongji Duan, Non-Executive Chairman of the Company, being a director of SRL and SRHKL.
Interest expense of $58,650 at 9.31% per annum was recorded for the year on a related party loan of $630,000 from
Great Cortex International Limited (2020: $58,811) in which Mr. Yongji Duan was a director (Mr. Duan ceased to be
a Director of Great Cortex before 30 June 2021). The Company has signed a settlement deed with Great Cortex to
extend the repayment to 18 November 2023. Subject to full repayment of loan principal, all other expenses relating
to this Loan including interest will be waived.
(2)
(3) Service fee income of $96,065 (net of GST) was derived for the provision of office space, motor vehicle and
administration services to Australian Stonefood Pty Ltd during the financial year (2020: 183,916). Australian
Stonefood Pty Ltd is a subsidiary of an entity in which Mr. Yongji Duan is a substantial shareholder. This arrangement
was terminated as at 31 December 2020.
(c) Key management personnel
Details relating to key management personnel are included in Note 26.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-49-
NOTE 22: RELATED PARTY DISCLOSURE
(a) Subsidiaries
Brightstar Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
The consolidated financial statements include the financial statements of Brightstar Resources Limited and the
subsidiaries listed in the following table.
Name
Country of
% Equity Interest
Incorporation
2021
2020
Desertex Resources Pty Ltd (1)
Desert Exploration Pty Ltd
Australia
Australia
-
100%
100%
100%
(1) Desertex Resources Pty Ltd was deregistered during the year.
(b) Transactions with related parties
financial year.
The following table provides the total amount of transactions that were entered into with related parties for the relevant
Income
from
Related
Parties
$’000
Interest
expense to
Related
Parties
$’000
Amounts
Owed by
Related
parties
$’000
Amounts
Owed to
Related
parties
(Loan)
$’000
Interest
Accrual to
Related
parties
$’000
Related party
Stone Resources (H.K.) Ltd (1)
2021
Stone Resources (H.K.) Ltd
2020
Great Cortex International Ltd (2) 2021
-
-
-
2,974,484
58,650
35,436,134
20,088,679
630,000
550,347
Great Cortex International Ltd
2020
-
58,811
-
630,000
491,697
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Australia Stonefood Pty Ltd (3)
2021
96,065
Australia Stonefood Pty Ltd
2020
183,916
(1) $57,252,627 debt that the Company owed to its previous major shareholder and major debt provider (Stone
Resources Limited (“SRL”) and Stone Resources (HK) Limited (“SRHKL”)), including interest expense, was
cancelled upon completion of DECA on 18 November 2020. Both SRL and SRHKL are related parties by virtue of
Mr. Yongji Duan, Non-Executive Chairman of the Company, being a director of SRL and SRHKL.
(2)
Interest expense of $58,650 at 9.31% per annum was recorded for the year on a related party loan of $630,000 from
Great Cortex International Limited (2020: $58,811) in which Mr. Yongji Duan was a director (Mr. Duan ceased to be
a Director of Great Cortex before 30 June 2021). The Company has signed a settlement deed with Great Cortex to
extend the repayment to 18 November 2023. Subject to full repayment of loan principal, all other expenses relating
to this Loan including interest will be waived.
(3) Service fee income of $96,065 (net of GST) was derived for the provision of office space, motor vehicle and
administration services to Australian Stonefood Pty Ltd during the financial year (2020: 183,916). Australian
Stonefood Pty Ltd is a subsidiary of an entity in which Mr. Yongji Duan is a substantial shareholder. This arrangement
was terminated as at 31 December 2020.
(c) Key management personnel
Details relating to key management personnel are included in Note 26.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-50-
NOTE 23: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Financial performance
Total profit and other comprehensive income for the year
30 June 2021
$
30 June 2020
$
1,033,266
11,299,176
9,901,812
3,426,788
10,935,078
14,725,964
1,721,347
61,062,322
6,759,727
3,598,817
8,481,074
64,661,139
37,857,909
51,541,309
(40,933,470)
(101,485,330)
5,396,622
8,846
2,321,061
(49,935,175)
30 June 2021
$
30 June 2020
$
60,551,860
(6,617,894)
Commitments and Contingencies of the parent entity
Commitments and contingencies of the parent entity are the same as those of the group (refer Note 21).
Reconciliation of Accumulated Losses
Balance at beginning of financial year
Income for the year
Balance at end of financial year
30 June 2021
$
30 June 2020
$
(101,485,330)
(94,867,436)
60,551,860
(6,617,894)
(40,933,470)
(101,485,330)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-51-
NOTE 24: EVENTS AFTER THE BALANCE DATE
Brightstar Resources Limited
Drilling over the Company’s Cork Tree Well project commenced from in the 3rd week of September 2021. This is the first
drilling campaign since BTR completed recapitalisation in November 2020. It is expected that the results may assist in
developing a revised Mineral Resource Estimate for the project and used to plan future exploration drilling at Cork Tree
Well and surrounding areas.
On 27 September 2021, the Company signed a Call Option Deed with Stone Resources (HK) Limited (SRHKL), under
which SRHKL agreed to grant BTR or its nominee an option to purchase the 3% net smelter royalty (NSR) which is
applicable to a substantial portion of BTR’s tenements holdings. This Call Option Deed is expected to be settled seven
days after BTR’s 2021 Annual General Meeting, however this may be as late as 31 March 2022 depending upon the nature
of shareholder approval required. The exercise price of this Call Option is US$25 million, and the expiry is 5 calendar years
since settlement date of this Call Option Deed. An Option Fee of $300,000 is payable to SRHKL on the settlement date.
Both the exercise price, if exercised, and the Option Fee can be settled in cash and/or BTR shares at the discretion of the
Board. SRHKL has no rights to compel or demand exercise of the Call Option. Purchase of part of the NSR is allowed by
the Call Option.
On 27 September 2021, the Company also executed two Settlement Deeds in relation to an outstanding liability owing to
Great Cortex International Limited (“Great Cortex”) and amounts owed to its former Company Secretary Mr Tony Lau.
Under the Settlement Deeds:
i.
ii.
iii.
i.
The Company will repay the loan principal of $630,000 in cash to Great Cortex on or before 18 November 2023.
All related expenses and amounts owing, including accrued interest payments, will be waived once Brightstar
meets its obligations under the Settlement Deed.
A settlement sum of $300,000 will be paid to Mr Tony Lau, in cash and/or shares at the Company’s discretion, on
the earlier of seven days after BTR’s 2021 Annual General Meeting or 7 December 2021.
Mr Duan will step down from the Chairman role and remain on the Board as a Non-Executive Director. The
deferred remuneration payment of $63,218 will be paid to Mr Duan in cash and/or shares at Brightstar’s election
on the same settlement date under Call Option Deed above.
All claims between the Parties relating to the past conduct of the Parties are settled in accordance with the terms
of the Deeds.
ii.
The DECA remains in force and effect.
On 28 September 2021, the Company signed a mandate with Canaccord Genuity (Australia) Limited to act as Lead
Manager with regards to a placement. The placement is expected to be completed within the 1st week of October 2021.
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
NOTE 25: AUDITOR’S REMUNERATION
The auditor of Brightstar Resources Limited was changed from Deloitte Touché Tohmatsu to Pitcher Partners during the
year.
Amounts paid and payable to Pitcher Partners BA&A Pty Ltd for:
An audit or review of the financial report of the parent entity and any other
entity in the group
Taxation services
-
-
Consolidated
2021
$
2020
$
39,500
8,000
-
-
47,500
-
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-51-
NOTE 24: EVENTS AFTER THE BALANCE DATE
Drilling over the Company’s Cork Tree Well project commenced from in the 3rd week of September 2021. This is the first
drilling campaign since BTR completed recapitalisation in November 2020. It is expected that the results may assist in
developing a revised Mineral Resource Estimate for the project and used to plan future exploration drilling at Cork Tree
Well and surrounding areas.
On 27 September 2021, the Company signed a Call Option Deed with Stone Resources (HK) Limited (SRHKL), under
which SRHKL agreed to grant BTR or its nominee an option to purchase the 3% net smelter royalty (NSR) which is
applicable to a substantial portion of BTR’s tenements holdings. This Call Option Deed is expected to be settled seven
days after BTR’s 2021 Annual General Meeting, however this may be as late as 31 March 2022 depending upon the nature
of shareholder approval required. The exercise price of this Call Option is US$25 million, and the expiry is 5 calendar years
since settlement date of this Call Option Deed. An Option Fee of $300,000 is payable to SRHKL on the settlement date.
Both the exercise price, if exercised, and the Option Fee can be settled in cash and/or BTR shares at the discretion of the
Board. SRHKL has no rights to compel or demand exercise of the Call Option. Purchase of part of the NSR is allowed by
the Call Option.
Under the Settlement Deeds:
On 27 September 2021, the Company also executed two Settlement Deeds in relation to an outstanding liability owing to
Great Cortex International Limited (“Great Cortex”) and amounts owed to its former Company Secretary Mr Tony Lau.
i.
The Company will repay the loan principal of $630,000 in cash to Great Cortex on or before 18 November 2023.
All related expenses and amounts owing, including accrued interest payments, will be waived once Brightstar
meets its obligations under the Settlement Deed.
ii.
A settlement sum of $300,000 will be paid to Mr Tony Lau, in cash and/or shares at the Company’s discretion, on
the earlier of seven days after BTR’s 2021 Annual General Meeting or 7 December 2021.
iii.
Mr Duan will step down from the Chairman role and remain on the Board as a Non-Executive Director. The
deferred remuneration payment of $63,218 will be paid to Mr Duan in cash and/or shares at Brightstar’s election
on the same settlement date under Call Option Deed above.
i.
All claims between the Parties relating to the past conduct of the Parties are settled in accordance with the terms
of the Deeds.
ii.
The DECA remains in force and effect.
On 28 September 2021, the Company signed a mandate with Canaccord Genuity (Australia) Limited to act as Lead
Manager with regards to a placement. The placement is expected to be completed within the 1st week of October 2021.
Brightstar Resources Limited
Brightstar Resources Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-52-
NOTE 25: AUDITOR’S REMUNERATION (CONTINUED)
Amounts paid and payable to Deloitte Touché Tohmatsu for:
An audit or review of the financial report of the parent entity and any other
entity in the group
Taxation services
-
-
NOTE 26: DIRECTORS AND EXECUTIVES DISCLOSURES
Consolidated
2021
$
2020
$
45,884
14,700
62,762
13,402
60,584
76,164
Directors
(a) Details of Key Management Personnel
(i)
William Hobba
Yongji Duan
Josh Hunt
Yong Han
Fang Lu
Kaiye Shuai
Managing Director (appointed on 3 December 2020, formerly Executive Director)
Non-Executive Chairman
Non-Executive Director (appointed on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Executive Director (resigned on 18 November 2020)
Non-Executive Director (resigned on 18 November 2020)
Other Key Officer
(ii)
Luke Wang
Tony Lau
Sheng Hui Lu
Company Secretary (appointed on 19 July 2021, formerly Joint Company Secretary)
Joint Company Secretary (resigned on 19 July 2021)
Deputy Executive Officer / Joint Company Secretary (resigned on 24 November 2020)
There were no other significant events occurring after balance sheet date requiring disclosure other than already disclosed.
(b) Other transactions and balances with Key Management Personnel
Some Directors and executives hold positions within other entities which cause them to have control or exert significant
influence over the financial or operating policies of those entities.
NOTE 25: AUDITOR’S REMUNERATION
The auditor of Brightstar Resources Limited was changed from Deloitte Touché Tohmatsu to Pitcher Partners during the
year.
The following balances were payable at balance sheet date:
Transaction
2021
$
2020
$
Amounts paid and payable to Pitcher Partners BA&A Pty Ltd for:
An audit or review of the financial report of the parent entity and any other
-
-
entity in the group
Taxation services
Consolidated
2021
$
2020
$
39,500
8,000
-
-
47,500
-
Directors
Yongji Duan
William Hobba
Other Key Officer
Tony Lau (2)
Deferred remuneration payment (1)
Deferred remuneration payment (1)
56,841
28,133
25,833
9,600
Deferred remuneration payment (1)
13,750
-
(1) Under mutual agreement, part payment of the remuneration has been deferred and will be settled in either
cash or equity at the Company’s discretion.
(2) Mr Lau resigned from the Joint Company Secretary role with effect from 19 July 2021. Outstanding
remuneration was settled in cash.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-53-
Brightstar Resources Limited
NOTE 26: DIRECTORS AND EXECUTIVES DISCLOSURES (CONTINUED)
(c) Key Management Personnel Compensation
Refer to the Remuneration Report contained in the directors’ report for details of the remuneration paid or payable to
each member of the Group’s Key Management Personnel (KMP) for the year ended 30 June 2021.The totals of
remuneration paid to key management personnel of the Company and the group during the year are as follows:
Short term employee benefits
Post-employment benefits
Share-based payments
Deferred remuneration payment
2021
$
2020
$
662,250
217,685
18,909
360,000
63,292
10,375
11,728
35,433
Total key management personnel compensation
1,104,451
275,221
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2021
-53-
NOTE 26: DIRECTORS AND EXECUTIVES DISCLOSURES (CONTINUED)
(c) Key Management Personnel Compensation
Refer to the Remuneration Report contained in the directors’ report for details of the remuneration paid or payable to
each member of the Group’s Key Management Personnel (KMP) for the year ended 30 June 2021.The totals of
remuneration paid to key management personnel of the Company and the group during the year are as follows:
Short term employee benefits
Post-employment benefits
Share-based payments
Deferred remuneration payment
2021
$
2020
$
662,250
217,685
18,909
360,000
63,292
10,375
11,728
35,433
Total key management personnel compensation
1,104,451
275,221
Brightstar Resources Limited
Brightstar Resources Limited
-54-
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Brightstar Resources Limited (the ‘Company’):
a.
the accompanying financial statements, notes and the additional disclosures of the Group are in accordance
with the Corporations Act 2001 including:
i.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance
for the year then ended; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Regulations 2001; and
b.
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
c. the financial statements and notes thereto are in accordance with International Financial Reporting Standards
issued by the International Accounting Standards Board.
2.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
This declaration is signed in accordance with a resolution of the Board of Directors pursuant to S.295 (5) of the Corporations
Act 2001.
William Hobba
Managing Director
Dated this 30th day of September, 2021
Brightstar Resources Limited
-55-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
Report�on�the�Audit�of�the�Financial�Report�
Opinion
We�have�audited�the�financial�report�of�Brightstar�Resources�Limited�(the�“Company”)�and�its�
controlled�entities�(the�“Group”),�which�comprises�the�consolidated�statement�of�financial�
position�as�at�30�June�2021,�the�consolidated�statement�of�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:�
(a)�
(b)�
giving�a�true�and�fair�view�of�the�Group’s�financial�position�as�at�30�June�2021�and�of�
its�financial�performance�for�the�year�then�ended;�and��
complying�with�Australian�Accounting�Standards�and�the�Corporations Regulations
2001.��
Basis for Opinion
We�conducted�our�audit�in�accordance�with�Australian�Auditing�Standards.�Our�
responsibilities�under�those�standards�are�further�described�in�the�Auditor’s Responsibilities
for the Audit of the Financial Report�section�of�our�report.�We�are�independent�of�the�Group�in�
accordance�with�the�auditor�independence�requirements�of�the�Corporations Act 2001�and�the�
ethical�requirements�of�the�Accounting�Professional�and�Ethical�Standards�Board’s�APES�110�
Code of Ethics for Professional Accountants (including Independence Standards) (“the�Code”)�
that�are�relevant�to�our�audit�of�the�financial�report�in�Australia.�We�have�also�fulfilled�our�
other�ethical�responsibilities�in�accordance�with�the�Code.��
We�believe�that�the�audit�evidence�we�have�obtained�is�sufficient�and�appropriate�to�provide�a�
basis�for�our�opinion.��
Material Uncertainty Related to Going Concern
We�draw�attention�to�Note�1(b)�in�the�financial�report�for�the�year�ended�30�June�2021�which�
indicates�that�the�Group�had�cash�and�cash�equivalents�of�$985,035�(2020:�$335,205)�and�
exploration�commitments�of�$703,670.�These�conditions,�along�with�other�matters�as�set�forth�
in�Note�1(b),�indicate�the�existence�of�a�material�uncertainty�that�may�cast�significant�doubt�
about�the�Group’s�ability�to�continue�as�a�going�concern.��Our�opinion�is�not�modified�in�
respect�of�this�matter.
Key Audit Matters
Key�audit�matters�are�those�matters�that,�in�our�professional�judgement,�were�of�most�
significance�in�our�audit�of�the�financial�report�of�the�current�period.�These�matters�were�
addressed�in�the�context�of�our�audit�of�the�financial�report�as�a�whole,�and�in�forming�our�
opinion�thereon,�and�we�do�not�provide�a�separate�opinion�on�these�matters.��
�
�
54�
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Brightstar Resources Limited
Brightstar Resources Limited
-56-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
Key�Audit�Matter�
How�our�audit�addressed�the�key�audit�
matter�
Deferred�exploration�and�evaluation�
expenditure��
Refer�to�Note�1(f),�1(k)�and�12�to�the�financial�
report.�
�
Our�procedures�included,�amongst�others:�
Obtaining�an�understating�of�and�
evaluating�the�design�and�implementation�
of�the�relevant�processes�and�controls�
associated�with�the�capitalisation�of�
exploration�and�evaluation�expenditure,�
and�those�associated�with�the�
assessment�of�impairment�indicators.�
Examining�the�Group’s�right�to�explore�in�
the�relevant�area�of�interest,�which�
included�obtaining�and�assessing�
supporting�documentation.��We�also�
considered�the�status�of�the�exploration�
licences�as�it�related�to�tenure.�
Considering�the�Group’s�intention�to�carry�
out�significant�exploration�and�evaluation�
activity�in�the�relevant�area�of�interest,�
including�an�assessment�of�the�Group’s�
cash-flow�forecast�models,�discussions�
with�senior�management�and�Directors�as�
to�the�intentions�and�strategy�of�the�
Group.�
transactions� by�
Testing� a� sample� of�
sighting� evidence� of� signed� contracts,�
related�
the�
amount�
deferred�
exploration� and� evaluation� assets� is� in�
accordance�with�AASB�6.�
Reviewing�management’s�evaluation�and�
judgement�as�to�whether�the�exploration�
activities�within�each�relevant�area�of�
interest�have�reached�a�stage�where�the�
commercial�viability�of�extracting�the�
resource�could�be�determined.�
Assessing�the�adequacy�of�the�
disclosures�included�within�the�financial�
report.�
invoices� and� comparing�
recognised�
as�
As�at�30�June�2021,�the�Group�held�
capitalised�exploration�and�evaluation�
expenditure�of�$9,313,231.�This�included�
$5,819,012�transferred�back�from�assets�held�
for�sale�as�at�30�June�2020.�
The�carrying�value�of�deferred�exploration�and�
evaluation�expenditure�is�assessed�for�
impairment�by�the�Group�when�facts�and�
circumstances�indicate�that�the�capitalised�
exploration�and�evaluation�expenditure�may�
exceed�its�recoverable�amount.�
The�determination�as�to�whether�there�are�any�
indicators�to�require�the�deferred�exploration�
and�evaluation�expenditure�to�be�assessed�for�
impairment�involves�a�number�of�judgements�
including�but�not�limited�to:�
•� Whether�the�Group�has�tenure�of�the�
relevant�area�of�interest;�
•� Whether�the�Group�has�sufficient�funds�to�
meet�the�relevant�area�of�interest�
minimum�expenditure�requirements;�and��
•� Whether�there�is�sufficient�information�for�
a�decision�to�be�made�that�the�relevant�
area�of�interest�is�not�commercially�viable.�
During�the�year,�the�Group�determined�that�
there�had�been�no�indicators�of�impairment.��
Given�the�size�of�the�balance�and�the�
judgemental�nature�of�the�impairment�indicator�
assessments�associated�with�exploration�and�
evaluation�assets,�we�consider�this�is�a�key�
audit�matter.�
�
�
55�
Brightstar Resources Limited
-57-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
Share-based�payments��
Refer�to�Note�1(f)�and�18�and�19�to�the�
financial�report.�
�
During�the�year�ended�30�June�2021,�the�
Group�has�issued�shares�and�options�to�
advisors,�suppliers,�directors�and�employees,�
totalling�$1,036,916.��
Under�Australian�Accounting�Standards,�
equity�settled�awards�for�employees�are�
measured�at�fair�value�of�goods�or�services�
received,�or�on�the�measurement�(grant)�date�
taking�into�consideration�the�probability�of�the�
vesting�conditions�(if�any)�attached.�This�
amount�is�recognised�as�an�expense�either�
immediately�if�there�are�no�vesting�conditions,�
or�over�the�vesting�period�if�there�are�vesting�
conditions.��
In�calculating�the�fair�value�there�are�a�
number�of�judgements�management�must�
make,�including�but�not�limited�to:�
•� estimating�expected�future�share�price�
volatility;�
•� expected�dividend�yield;�and�
•�
risk-free�rate�of�interest.�
Due�to�the�significance�to�the�Group’s�
financial�report�and�the�level�of�judgment�
involved�in�determining�the�valuation�of�the�
share-based�payments,�we�consider�the�
Group’s�calculation�of�the�share-based�
payment�expense�to�be�a�key�audit�matter.�
Our�procedures�included,�amongst�others:�
Obtaining�an�understanding�and�
evaluating�the�design�and�implementation�
of�the�relevant�controls�associated�with�
the�preparation�of�the�valuation�model�
used�to�assess�the�fair�value�of�share�
based�payments,�including�those�relating�
to�volatility�of�the�underlying�security�and�
the�appropriateness�of�the�model�used�for�
valuation.�
Critically�evaluating�and�challenging�the�
methodology�and�assumptions�of�
management�in�their�preparation�of�
valuation�model,�including�management’s�
assessment�of�volatility,�expected�
dividend�yield,�risk-free�rate,�and�other�
inputs,�including,�agreeing�these�to�
internal�and�external�sources�of�
information�as�appropriate.�
Assessing�the�adequacy�of�the�
disclosures�included�in�the�financial�
report.�
�
�
56�
Brightstar Resources Limited
Brightstar Resources Limited
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-58-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
Rehabilitation�provision��
Refer�to�Note�1(1),1(s)�and�16�to�the�financial�
report.�
�
Our�procedures�included,�amongst�others:�
Obtaining�an�understanding�and�
evaluating�the�design�and�implementation�
of�the�relevant�controls�associated�with�
the�estimation�of�costs�and�other�inputs�
utilised�within�the�rehabilitation�estimate�
model.�
Obtaining�the�Group’s�assessment�of�its�
obligations�to�rehabilitate�disturbed�areas�
and�the�estimated�future�cost�of�that�work,�
which�forms�the�basis�for�the�rehabilitation�
provision�calculations�for�the�Brightstar�
Beta�Project.���
Evaluating�and�testing�key�assumptions�
including�economic�assumptions�through�
the�performance�of�the�following�
procedures:�
•�
considering�the�appropriateness�of�the�
qualifications�and�experience�of�the�
management�consultant�appointed�as�
the�preparer�and�an�expert�in�his�field�
•� examining�supporting�information�for�
significant�changes�in�future�costs�
estimates�from�the�prior�year�
considering�the�appropriateness�of�the�
discount�rate�and�inflation�rates�
applied�to�future�cash�outflows�used�in�
calculating�the�provision��
Assessing�the�adequacy�of�the�
disclosures�included�in�the�financial�report.�
•�
The�Group�is�liable�to�rehabilitate�the�
environment�disturbed�by�the�historical�
operations�at�the�Brightstar�Beta�Project.��
Rehabilitation�activities�are�governed�by�a�
combination�of�legislative�and�licence�
requirements.����
At�30�June�2021,�the�consolidated�statement�
of�financial�position�included�a�provision�for�
such�obligations�of�$3,044,667.�
This�was�a�key�audit�matter�given�the�
determination�of�this�provision�requires�
evaluating�the�key�assumptions�used�by�
management�and�judgement�in�the�
assessment�of�the�nature�and�extent�of�future�
works�to�be�performed,�the�future�cost�of�
performing�the�works,�the�timing�of�when�the�
rehabilitation�will�take�place�and�the�economic�
assumptions�such�as�the�discount�and�
inflation�rates�applied�to�future�cash�outflows�
associated�with�rehabilitation�activities�to�
bring�them�to�their�present�value.��
57�
Brightstar Resources Limited
-59-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
Treatment�and�impact�of�the�Debt�and�
Equity�Compromise�Agreement�
Refer�to�Note�15,�17,�18�and�19�to�the�financial�
report.�
�
On�16�March�2020,�the�Group�entered�into�a�
Debt�and�Equity�Compromise�Agreement�
(“DECA”)�with�Stone�Resources�Limited�and�
its�related�entities�(“SRL”).�As�a�result�of�the�
DECA,�the�Group�has�recognised:�
-� Forgiveness�of�$57,252,627�in�debt�
owing�to�SRL�
-� The�buy-back�and�cancellation�of�
433,452,944�fully�paid�ordinary�shares�
for�total�consideration�of�$11,400,000�
payable�in�cash�and�via�in-kind�
transfers�of�financial�assets�held�by�
the�Group.�$5,400,000�of�this�total�
considered�will�also�be�paid�in�cash�or�
through�the�issue�of�fully�paid�shares�
in�the�Group,�at�the�Group’s�election�
by�10�August�2023.�
Due�to�the�significance�of�the�treatment�and�
impact�to�the�Group’s�financial�report,�we�
consider�the�DECA�to�be�a�key�audit�matter�
�
Our�procedures�included,�amongst�
others:�
Obtaining�an�understanding�and�
evaluating�the�design�and�implementation�
of�the�relevant�controls�associated�with�
the�accounting�treatment�for�the�DECA.�
Examining�and�reviewing�the�relevant�
agreements�entered�into�in�order�to�
implement�the�DECA.�
Reviewing�and�testing�the�accounting�
entries�recorded�in�order�to�implement�the�
DECA,�including�assessing�if�these�are�
consistent�with�the�relevant�agreements�
AASB�132�and�AASB�9.�
Considering�the�appropriateness�of�the�
effective�interest�rate�applied�to�the�
amortised�cost�calculation�for�amounts�
payable�under�the�share�buy-back,�and�
the�mathematical�accuracy�of�the�excel�
model.�
Assessing�the�adequacy�of�the�
disclosures�included�in�the�financial�
report.�
Other Information�
The�directors�are�responsible�for�the�other�information.�The�other�information�comprises�the�
information�included�in�the�Group’s�annual�report�for�the�year�ended�30�June�2021,�but�does�
not�include�the�financial�report�and�our�auditor’s�report�thereon.��
Our�opinion�on�the�financial�report�does�not�cover�the�other�information�and�accordingly�we�
do�not�express�any�form�of�assurance�conclusion�thereon.��
In�connection�with�our�audit�of�the�financial�report,�our�responsibility�is�to�read�the�other�
information�and,�in�doing�so,�consider�whether�the�other�information�is�materially�inconsistent�
with�the�financial�report�or�our�knowledge�obtained�in�the�audit�or�otherwise�appears�to�be�
materially�misstated.��
If,�based�on�the�work�we�have�performed,�we�conclude�that�there�is�a�material�misstatement�
of�this�other�information,�we�are�required�to�report�that�fact.�We�have�nothing�to�report�in�this�
regard.��
�
�
58�
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Brightstar Resources Limited
Brightstar Resources Limited
-60-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
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�have�no�realistic�alternative�but�to�do�so.��
Auditor’s Responsibilities for the Audit of the Financial Report
Our�objectives�are�to�obtain�reasonable�assurance�about�whether�the�financial�report�as�a�
whole�is�free�from�material�misstatement,�whether�due�to�fraud�or�error,�and�to�issue�an�
auditor’s�report�that�includes�our�opinion.�Reasonable�assurance�is�a�high�level�of�assurance,�
but�is�not�a�guarantee�that�an�audit�conducted�in�accordance�with�the�Australian�Auditing�
Standards�will�always�detect�a�material�misstatement�when�it�exists.�Misstatements�can�arise�
from�fraud�or�error�and�are�considered�material�if,�individually�or�in�the�aggregate,�they�could�
reasonably�be�expected�to�influence�the�economic�decisions�of�users�taken�on�the�basis�of�
this�financial�report.�
As�part�of�an�audit�in�accordance�with�the�Australian�Auditing�Standards,�we�exercise�
professional�judgement�and�maintain�professional�scepticism�throughout�the�audit.�We�also:��
•�
Identify�and�assess�the�risks�of�material�misstatement�of�the�financial�report,�whether�due�
to�fraud�or�error,�design�and�perform�audit�procedures�responsive�to�those�risks,�and�
obtain�audit�evidence�that�is�sufficient�and�appropriate�to�provide�a�basis�for�our�opinion.�
The�risk�of�not�detecting�a�material�misstatement�resulting�from�fraud�is�higher�than�for�
one�resulting�from�error,�as�fraud�may�involve�collusion,�forgery,�intentional�omissions,�
misrepresentations,�or�the�override�of�internal�control.��
•� Obtain�an�understanding�of�internal�control�relevant�to�the�audit�in�order�to�design�audit�
procedures�that�are�appropriate�in�the�circumstances,�but�not�for�the�purpose�of�
expressing�an�opinion�on�the�effectiveness�of�the�Group’s�internal�control.��
•� Evaluate�the�appropriateness�of�accounting�policies�used�and�the�reasonableness�of�
accounting�estimates�and�related�disclosures�made�by�the�directors.��
•� Conclude�on�the�appropriateness�of�the�directors’�use�of�the�going�concern�basis�of�
accounting�and,�based�on�the�audit�evidence�obtained,�whether�a�material�uncertainty�
exists�related�to�events�or�conditions�that�may�cast�significant�doubt�on�the�Group’s�ability�
to�continue�as�a�going�concern.�If�we�conclude�that�a�material�uncertainty�exists,�we�are�
required�to�draw�attention�in�our�auditor’s�report�to�the�related�disclosures�in�the�financial�
report�or,�if�such�disclosures�are�inadequate,�to�modify�our�opinion.�Our�conclusions�are�
based�on�the�audit�evidence�obtained�up�to�the�date�of�our�auditor’s�report.�However,�
future�events�or�conditions�may�cause�the�Group�to�cease�to�continue�as�a�going�
concern.��
•� Evaluate�the�overall�presentation,�structure�and�content�of�the�financial�report,�including�
the�disclosures,�and�whether�the�financial�report�represents�the�underlying�transactions�
and�events�in�a�manner�that�achieves�fair�presentation.�
�
59�
Brightstar Resources Limited
-61-
�
�
�
�
�
BRIGHTSTAR�RESOURCES�LIMITED�
ABN�44�100�727�491�
INDEPENDENT�AUDITOR’S�REPORT�
TO�THE�MEMBERS�OF�
BRIGHTSTAR�RESOURCES�LIMITED�
�
•� Obtain�sufficient�appropriate�audit�evidence�regarding�the�financial�information�of�the�
entities�or�business�activities�within�the�Group�to�express�an�opinion�on�the�financial�
report.�We�are�responsible�for�the�direction,�supervision�and�performance�of�the�Group�
audit.�We�remain�solely�responsible�for�our�audit�opinion.��
We�communicate�with�the�directors�regarding,�among�other�matters,�the�planned�scope�and�
timing�of�the�audit�and�significant�audit�findings,�including�any�significant�deficiencies�in�
internal�control�that�we�identify�during�our�audit.��
We�also�provide�the�directors�with�a�statement�that�we�have�complied�with�relevant�ethical�
requirements�regarding�independence,�and�to�communicate�with�them�all�relationships�and�
other�matters�that�may�reasonably�be�thought�to�bear�on�our�independence,�and�where�
applicable,�actions�taken�to�eliminate�threats�or�safeguards�applied.��
From�the�matters�communicated�with�the�directors,�we�determine�those�matters�that�were�of�
most�significance�in�the�audit�of�the�financial�report�of�the�current�period�and�are�therefore�the�
key�audit�matters.�We�describe�these�matters�in�our�auditor’s�report�unless�law�or�regulation�
precludes�public�disclosure�about�the�matter�or�when,�in�extremely�rare�circumstances,�we�
determine�that�a�matter�should�not�be�communicated�in�our�report�because�the�adverse�
consequences�of�doing�so�would�reasonably�be�expected�to�outweigh�the�public�interest�
benefits�of�such�communication.��
Report�on�the�Remuneration�Report�
Opinion on the Remuneration Report
We�have�audited�the�Remuneration�Report�included�in�pages�8�to�14�of�the�directors’�report�
for�the�year�ended�30�June�2021.�In�our�opinion,�the�Remuneration�Report�of�Brightstar�
Resources�Limited,�for�the�year�ended�30�June�2021,�complies�with�section�300A�of�the�
Corporations Act 2001.��
Responsibilities
The�directors�of�the�Company�are�responsible�for�the�preparation�and�presentation�of�the�
Remuneration�Report�in�accordance�with�section�300A�of�the�Corporations Act 2001.�Our�
responsibility�is�to�express�an�opinion�on�the�Remuneration�Report,�based�on�our�audit�
conducted�in�accordance�with�Australian�Auditing�Standards.��
�
�
�
�
PITCHER�PARTNERS�BA&A�PTY�LTD�
�
�
�
�
PAUL�MULLIGAN�
Executive�Director�
Perth,�30�September�2021�
60�
Brightstar Resources Limited
Brightstar Resources Limited
-61-
CORPORATE GOVERNANCE STATEMENT
-62-
The Company’s charters, policies and procedures are regularly reviewed and updated to comply with law and best practice.
These charters and policies as well as the Company’s Corporate Governance Statement can be viewed on the Company’s
website located at www.brightstarresources.com.au. The Company is committed to applying the ASX Corporate
Governance Council’s Corporate Governance Principles (4th Edition) (ASX Principles and Recommendations) and the
Corporate Governance Statement discloses the extent to which the entity has followed the recommendations set by the
ASX Corporate Governance Council during the financial year ended 30 June 2021.
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Limited and not disclosed elsewhere in this report is set
out below. This information is effective as at 1 October 2021.
-63-
Brightstar Resources Limited
Distribution of Shares
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 over
Rounding Total
Number of Holders
Securities Held
157
222
250
803
300
1,732
19,244
696,134
2,060,119
30,655,279
406,319,988
439,750,764
There are 777 shareholders holding unmarketable parcels represented by 4,722,179 shares.
Top 20 Largest Shareholders
Shareholder
Ms Sandra Wheeler
Mr Yongji Duan
Chen Yingliu
Mr Lieven Bert Frans Bouckaert + Mrs Priscilla Lee Bouckaert
Scorpius Holdings Pty Ltd
Mr Yong Han
HSBC Custody Nominees (Australia) Limited
Mr Guofu Zu
Mr Kaiye Shuai
Citywest Corp Pty Ltd
Ms Esma Eileen Barker
Mr Wenhua Shan
Mr Wayne Richard Lonergan (LDS Account)
Mr Quansheng Wang
Mr Yongqi Jing
Mrs Linda Teresa Hotker + Mr Wayne David Hotker
Mr Sheng Hui Lu
Mr Ianaki Semerdziev
NYG Pty Ptd
Citicorp Nominees Pty Limited
Total Top 20 Holders
Total Remaining Holders
Total Ordinary Shares on Issue
Substantial Shareholders
Shareholder
Ms Sandra Wheeler
Mr Yongji Duan
Chen Yingliu
Mr Lieven Bert Frans Bouckaert + Mrs Priscilla Lee Bouckaert
Shares Held
% of Issued Capital
68,727,775
31,449,497
30,303,030
23,855,118
15,040,000
13,908,219
10,740,384
8,256,201
7,351,035
6,273,221
5,762,938
5,000,400
4,765,624
4,501,591
4,500,591
4,408,333
4,175,178
3,500,000
3,150,000
3,054,683
258,723,818
181,026,946
439,750,764
15.63
7.15
6.89
5.42
3.42
3.16
2.44
1.88
1.67
1.43
1.31
1.14
1.08
1.02
1.02
1.00
0.95
0.80
0.72
0.69
58.83
41.17
100.00
Shares Held
% of Issued Capital
68,727,775
31,449,497
30,303,030
23,855,118
15.63
7.15
6.89
5.42
Brightstar Resources Limited
Brightstar Resources Limited
ASX ADDITIONAL INFORMAITON (Continued)
-64-
Voting Rights
One vote for each ordinary share held in accordance with the Company’s Memorandum and Articles of Association.
Unlisted options do not carry any voting rights.
On-Market Buy-Back
There is no current on-market buy-back.
Restricted Securities
At the end of the financial year there were no ordinary fully paid shares subject to restriction agreements.
Unquoted Securities
The number of equity securities that are on issue and the number of holders for each class of unquoted equity securities
are as follows:
Unlisted Options
Number of
Holders
Substantial Holders
15000,000 Unlisted options expiring on 09/04/2023 @ $0.01
4,000,000 Unlisted options expiring on 31/12/2023 @ $0.06
4,000,000 Unlisted options expiring on 31/12/2023 @ $0.08
4,000,000 Unlisted options expiring on 31/12/2023 @ $0.10
1,000,000 Unlisted options expiring on 12/02/2024 @ $0.10
5,000,000 Unlisted options expiring on 22/06/2024 @ $0.045
1
1
1
1
1
1
Scorprius Holdings Pty Ltd
CG Nominees (Australia) Pty Ltd
CG Nominees (Australia) Pty Ltd
CG Nominees (Australia) Pty Ltd
Mining Equities Pty Ltd
PCF Capital Pty Ltd
ASX ADDITIONAL INFORMATION
-63-
Additional information required by the Australian Stock Exchange Limited and not disclosed elsewhere in this report is set
out below. This information is effective as at 1 October 2021.
There are 777 shareholders holding unmarketable parcels represented by 4,722,179 shares.
Distribution of Shares
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 over
Rounding Total
Top 20 Largest Shareholders
Shareholder
Ms Sandra Wheeler
Mr Yongji Duan
Chen Yingliu
Mr Lieven Bert Frans Bouckaert + Mrs Priscilla Lee Bouckaert
Scorpius Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mr Yong Han
Mr Guofu Zu
Mr Kaiye Shuai
Ms Esma Eileen Barker
Mr Wenhua Shan
Mr Quansheng Wang
Mr Yongqi Jing
Mr Sheng Hui Lu
Mr Ianaki Semerdziev
Citywest Corp Pty Ltd
Mr Wayne Richard Lonergan (LDS Account)
Mrs Linda Teresa Hotker + Mr Wayne David Hotker
NYG Pty Ptd
Citicorp Nominees Pty Limited
Total Top 20 Holders
Total Remaining Holders
Total Ordinary Shares on Issue
Substantial Shareholders
Shareholder
Ms Sandra Wheeler
Mr Yongji Duan
Chen Yingliu
Mr Lieven Bert Frans Bouckaert + Mrs Priscilla Lee Bouckaert
Number of Holders
Securities Held
157
222
250
803
300
1,732
19,244
696,134
2,060,119
30,655,279
406,319,988
439,750,764
Shares Held
% of Issued Capital
68,727,775
31,449,497
30,303,030
23,855,118
15,040,000
13,908,219
10,740,384
8,256,201
7,351,035
6,273,221
5,762,938
5,000,400
4,765,624
4,501,591
4,500,591
4,408,333
4,175,178
3,500,000
3,150,000
3,054,683
258,723,818
181,026,946
439,750,764
68,727,775
31,449,497
30,303,030
23,855,118
15.63
7.15
6.89
5.42
3.42
3.16
2.44
1.88
1.67
1.43
1.31
1.14
1.08
1.02
1.02
1.00
0.95
0.80
0.72
0.69
58.83
41.17
100.00
15.63
7.15
6.89
5.42
Shares Held
% of Issued Capital
ASX ADDITIONAL INFORMAITON (Continued)
-65-
Brightstar Resources Limited
Tenement Schedule as at 1 October 2021
Reporting Group
Lease
Brightstar (South
Laverton)
Brightstar North
(North Laverton)
M38/968
M38/1056
M38/1057
M38/1058
M38/9
E38/2316
E38/2364
E38/2365
E38/2411
E38/3034
E38/3108
E38/3293
E38/3331
E38/3438
M38/241
M38/549
M38/984
P38/4377
P38/4385
P38/4431
P38/4432
P38/4433
P38/4444
P38/4445
P38/4446
P38/4447
P38/4448
P38/4449
P38/4450
P38/4508
E38/2452
E38/2894
M38/346
M38/917
M38/918
P38/4108
E38/3198
Standalone (Laverton) E38/2233
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Lease Manager
Total Shares
Desert Exploration Pty Ltd
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Brightstar Resources Limited
Brightstar Resources Limited
ASX ADDITIONAL INFORMAITON (Continued)
Tenement Schedule as at 1 October 2021
-66-
Reporting Group
Hawks Nest (West
Laverton)
Miscellaneous
Licences
Lease
M38/94
M38/95
M38/314
M38/381
L38/100
L38/123
L38/168
L38/169
L38/171
L38/185
L38/188
L38/154
L38/205
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Lease Manager
Total Shares
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
100
100
100
100
100
100
100
100
100
100
100
100
100
* Transfer of Tenement E38/3279 is underway as of 1 October 2021.
ASX ADDITIONAL INFORMAITON (Continued)
-65-
Tenement Schedule as at 1 October 2021
Reporting Group
Lease
Brightstar (South
M38/968
Laverton)
Lease Manager
Total Shares
M38/1056
M38/1057
M38/1058
M38/9
E38/2316
E38/2364
E38/2365
E38/2411
E38/3034
E38/3108
E38/3293
E38/3331
E38/3438
M38/241
M38/549
M38/984
P38/4377
P38/4385
P38/4431
P38/4432
P38/4433
P38/4444
P38/4445
P38/4446
P38/4447
P38/4448
P38/4449
P38/4450
P38/4508
E38/2452
E38/2894
M38/346
M38/917
M38/918
P38/4108
E38/3198
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Desert Exploration Pty Ltd
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
Brightstar Resources Limited
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Brightstar North
(North Laverton)
Standalone (Laverton) E38/2233
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
Ordinary shares held in Brightstar Resources Limited (number)
-13-
-67-
Brightstar Resources Limited
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Balance at
beginning of
period
Granted as
remuneration
Other
Balance at
end of period
38,727,775
30,000,000 (i)
31,449,497
-
-
-
68,727,775
31,449,497
-
3,150,000 (i)
207,999
3,357,999
13,908,219
11,425,436
-
-
4,475,178
10,000,000
-
-
-
-
-
-
(13,908,219)
(11,245,436)
-
-
(4,475,178)
-
-
-
This page left blank intentionally.
-
-
-
10,000,000
109,986,105
33,150,000
(29,600,834)
113,535,271
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
shares were approved for issue at the Group’s AGM on 16 November 2020.
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
DIRECTORS’ REPORT (continued)
Remuneration report (audited) – (continued)
Table 3: Key Management Personnel Shareholdings for the years ended 30 June 2021 and 30 June 2020
Ordinary shares held in Brightstar Resources Limited (number)
-13-
-68-
Brightstar Resources Limited
30 June 2021
Directors
William Hobba
Yongji Duan
Josh Hunt
Yong Han (ii)
Kaiye Shuai (ii)
Fang Lu (ii)
Other Key Officer
Luke Wang
Sheng Hui Lu (iii)
Tony Lau (iv)
(i)
(ii)
(iii)
(iv)
Balance at
beginning of
period
Granted as
remuneration
Other
Balance at
end of period
38,727,775
30,000,000 (i)
31,449,497
-
-
-
68,727,775
31,449,497
-
3,150,000 (i)
207,999
3,357,999
13,908,219
11,425,436
-
-
4,475,178
10,000,000
-
-
-
-
-
-
(13,908,219)
(11,245,436)
-
-
(4,475,178)
-
-
-
This page left blank intentionally.
-
-
-
10,000,000
109,986,105
33,150,000
(29,600,834)
113,535,271
Mr Hobba was issued 30,000,000 fully paid ordinary shares at $NIL consideration as reimbursement for fulfilling duties and in lieu of remuneration as a
Director of the Group over the prior 7 years. Mr Hunt was issued shares at $NIL consideration in lieu of $60,000 of his remuneration as a Director. These
shares were approved for issue at the Group’s AGM on 16 November 2020.
Mr Han, Mr Shuai and Mr Fang Lu resigned on 18 November 2020.
Mr Sheng Lu resigned on 24 November 2020.
Mr Lau resigned 19 July 2021
REGISTERED AND PRINCIPAL OFFICE
3/25 Belgravia Street
Belmont WA 6104
Telephone: (618) 9277 6008
Facsimile: (618) 9277 6002
Email: info@brightstarresources.com.au
www.brightstarresources.com.au/