ACN: 616 795 245
ANNUAL REPORT
30 JUNE 2020
Bryah Resources Ltd 2020 Annual Report
CONTENTS
Corporate Directory
Letter from the Chairman
Directors’ Report
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Auditor’s Independence Declaration
Independent Auditors’ Report
Annual Mineral Resource Statement
Additional ASX Information
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Bryah Resources Ltd 2020 Annual Report
Corporate Directory
Directors
Mr Ian Stuart (Non-executive Chairman)
Mr Neil Marston (Managing Director)
Mr Leslie Ingraham (Non-executive Director)
Company Secretary
Mr Neil Marston
Registered Office & Principal Place of Business
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone
08 9321 0001
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Telephone
Facsimile
08 9323 2000
08 9323 2033
Auditors
Elderton Audit Pty Ltd
Level 2, 267 St Georges Terrace,
Perth WA 6000
Solicitors
Steinepreis Paganin
Level 4, The Read Building,
16 Milligan Street,
Perth WA 6000
Securities Exchange Listing
Bryah Resources Limited shares (BYH) and options (30 cents/expiring 31 October 2020) (BYHO) are quoted
on the Australian Securities Exchange (ASX).
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Bryah Resources Ltd 2020 Annual Report
Letter from the Chairman
On behalf of your Board of Directors, I have pleasure in presenting the 2020 Annual Report and Financial
Statements of Bryah Resources Limited for the year to 30 June 2020.
Since the last Annual Report, Bryah has successfully navigated its way through what can best be described as
very unusual circumstances. The sharp decline in the equity markets in March 2020, led Bryah to swiftly wind
back all non-essential expenditure activities. A volatile capital market was exacerbated by an economy-wide
lockdown due to the global spread of the COVID-19 pandemic. Management reacted quickly and was
prepared for an extended period of conserving the Company’s available funds.
However, by late May 2020 a strong rebound in the global equity markets combined with a resurgent gold
price saw renewed investor interest for gold producers and junior explorers. This enabled Bryah to raise
additional capital in June 2020 and a ramping up of gold exploration activities.
Our gold exploration activities have produced some excellent results. In January 2020 the Company
announced a maiden mineral resource at the Tumblegum South Prospect at Gabanintha. The inferred mineral
resource is 600,000 tonnes @ 2.2 g/t Au for 42,500 ounces gold. In the Bryah Basin the Company has
continued to record gold intersections in drilling at the Windalah prospect and initial drill testing of several
new areas has been undertaken by the Company, with assay results pending at this time. Follow-up
exploration of these exciting areas is planned to continue into 2021.
The Company has also been very active with manganese exploration activities being conducted under the
Bryah Basin Manganese Joint Venture with OM (Manganese) Limited (OMM). OMM is a wholly owned
subsidiary of ASX-listed OM Holdings Limited, a vertically integrated manganese company.
A benefit of Bryah’s diversified portfolio and the Manganese Joint Venture was that Bryah was able to remain
active with drilling and field activities throughout the COVID-19 lockdown period without depleting Bryah’s
cash reserves.
Manganese exploration resumed in early 2020 with OMM fully funding up to the next $2.0 million of project
expenditure to earn a 51% interest in the Joint Venture. Bryah has made significant progress with the latest
drilling results identifying significant zones of potentially direct shipping grade (>30% Mn) manganese at the
Brumby Creek and Black Hill Prospects. Follow-up exploration is due to commence in the coming quarter.
Bryah Resources recorded a total comprehensive loss after tax of $811,052 (2019: $551,649) for the period
ended 30 June 2020. Capitalised expenditure on exploration, excluding tenement acquisition costs, was
$551,536 (2019: $1,710,853) during the financial year.
During the year the Company completed two placements in October 2019 and June 2020 to raise $3,026,548
before costs. A further $523,452 was successfully raised following shareholder approval in July 2020. Hartleys
Limited was Lead Manager for the placements which have placed the business in a sound financial position
going into 2021.
The Board of Bryah Resources Limited remains committed to developing a successful resource exploration
and development business and will continue to explore opportunities to value add and monetarise any non-
core parts of the business. I thank management, our employees and consultants for their achievements
during this very difficult year and the ongoing support of our shareholders. We look forward to another active
year progressing and developing our Projects and reporting on the Company’s activities in the year ahead.
Yours faithfully
Ian Stuart
Non-Executive Chairman
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Bryah Resources Ltd 2020 Annual Report
Directors’ Report
Your directors present their report on Bryah Resources Limited (“Bryah” or the “Company”) for the
year ended 30 June 2020.
Corporate Highlights
Corporate
• $3,026,548 raised to fund gold-copper exploration activities and working capital
Bryah Basin –Gold-Copper
• Drilling at the Windalah Prospect identified high-grade gold mineralisation
• New Nickel-Copper-Cobalt discovery at Mount Labouchere
• Major aircore program commenced in September 2020 to test 4 target areas
Gabanintha – Gold-Copper
• Drilling program completed in October 2019, confirming gold occurs in multiple
shallow lodes – highlighting potential to support open pit mining
• Maiden Inferred Mineral Resource estimated for the Tumblegum South deposit –
600,000 tonnes @ 2.2 g/t Au for 42,500 oz Au
• Bryah engaged in process to commercialise value in Tumblegum South Project
Bryah Basin – Manganese Joint Venture
• Manganese Joint Venture formed with OM (Manganese) Limited (OMM) over 660
km2 of landholding – current Joint Venture Interests - 80% Bryah, 20% OMM
• OMM has the right to sole fund exploration activities to increase its Joint Venture
interest up to 51%
• Bryah is Project Manager until OMM earn a 51% Joint Venture interest
• Significant high-grade manganese identified in drilling during 2020 at Brumby Creek
Prospect.
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Bryah Resources Ltd 2020 Annual Report
Review of Operations
Bryah holds a quality exploration portfolio in the highly prospective Gabanintha and Bryah Basin
areas in central Western Australia, with both projects considered to have potential to host high-
grade copper-gold deposits.
Gabanintha Gold Project
Bryah holds the rights to all minerals except Vanadium, Uranium, Cobalt, Chromium, Titanium,
Lithium, Tantalum, Manganese & Iron Ore (Excluded Minerals) over a 170 km2 project area at
Gabanintha, approximately 40km south of Meekatharra, Western Australia (see Figure 1).
Figure 1 - Gabanintha Project Location Plan
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Bryah Resources Ltd 2020 Annual Report
Australian Vanadium Limited (AVL) retains 100% rights in the Excluded Minerals on the project,
which includes its Australian Vanadium Project.
During the period the Company’s exploration focus was on the Tumblegum South prospect, with
the aim of defining a gold mineral resource.
RC Drilling
The Company completed a 16 hole Reverse Circulation (RC) drilling program (BGRC027-042) at the
Tumblegum South Prospect in October 2019. Holes BGRC027-033 and BGRC040-041 were drilled to
test the significant north-south orientated shear zone, which was considered to have a southerly
plunge component to the mineralisation (see Figure 2).
Figure 2 - Tumblegum South Prospect Drill Hole Location Plan
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Bryah Resources Ltd 2020 Annual Report
The results from this drilling confirm the southerly plunge to the gold mineralisation. Significantly,
holes GRC1159, BGRC005, 015, 027, 033 and 040 have all recorded high-grade gold intercepts of
between 6.11g/t Au (BGRC040) and 32.18g/t Au (BGRC015) over 1-2 metre intervals, within broader
zones of gold mineralisation (see Figure 3).
Figure 3 - Tumblegum South Prospect Long Section A – A’
Holes BGRC034-039 successfully intersected high-grade gold mineralisation which occurs in multiple
thrust zones oblique to the significant north-south orientated shear zone. The gold mineralised
thrust zones appear to be open at depth (see Figure 4).
Gold Mineral Resource - Tumblegum South
In January 2020, the Company completed a mineral resource estimation for the Tumblegum South
Prospect.
The Inferred Mineral Resource is 600,000 tonnes @ 2.2g/t Au, 0.2% Cu and 1.5g/t Ag for 42,500
ounces gold using a cut-off grade of 0.3g/t Au.
See the Annual Mineral Resource Statement section of this report for further details of the mineral
resource estimation.
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Bryah Resources Ltd 2020 Annual Report
Commercialisation of Tumblegum South
Figure 4 - Tumblegum South Prospect Drill Section B – B’
Due to the constrained size of the Tumblegum South Prospect tenement, the Company has engaged
in a number of activities with the aim of realising the value in the project, either through an outright
sale or some other form of commercial arrangement that would lead to mining.
Following the completion of the mineral resource estimate, a short metallurgical program was
undertaken. A total of 20 samples were selected for testing for gold recovery using a 6-hour bottle
roll leach. The samples recorded an average of 90% gold recovery using cyanide leaching. These
results demonstrate the potential gold recoveries from conventional cyanide leaching used in
nearby gold processing plants. The Company remains actively engaged in negotiations with parties
about a potential commercial arrangement.
Base Metals Mineral Resource – Australian Vanadium Project
In 2018 AVL reported a nickel-copper mineral resource estimate on the Australian Vanadium
Project. An Inferred Mineral Resource of 14.3Mt containing 666ppm Nickel, 217ppm Copper and
0.16% Sulphur has been estimated and reported by AVL1.
The sulphide base metal mineral resource is considered to be potentially economically recoverable
following metallurgical testwork undertaken as part of a preliminary feasibility study on
development of the project. The base metal sulphide mineralisation has consistently reported to
the non-magnetic fraction during the separation of the vanadium bearing magnetite. This has
effectively delivered a sulphide by-product for further concentration by flotation.
Additional testwork on the sulphide by-product of the project will be undertaken by AVL.
1 See AVL ASX announcement dated 28 November 2018
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Bryah Resources Ltd 2020 Annual Report
Bryah Basin Project - Copper-Gold
The Company’s Bryah Basin Project covers 1,135km2 of highly prospective ground, mainly within the
Bryah Basin in central Western Australia. The Bryah Basin is host to high-grade Volcanogenic
Massive Sulphide (“VMS”) copper-gold deposits at the DeGrussa, Monty and historic Horseshoe
Lights mines, as well as significant epigenetic gold deposits including the Fortnum gold mine (see
Figure 5).
The Company’s aim is to apply the best exploration resources available to locate further high-grade
gold/copper-gold deposits within the Bryah Basin.
During 2020, the Company undertook 4 drilling programs as part of its gold-copper exploration
activities in the Bryah Basin. Drilling commenced with an aircore program in March 2020, followed
by reverse circulation drilling programs in May and July 2020, focused mainly on the Windalah
Prospect. A second aircore program commenced in September 2020, testing four gold-copper
targets. A Down Hole Electromagnetic (DHEM) survey was also completed in July 2020 on 3 RC drill
holes.
Bryah has increased its land holding in the last 12 months through the grant and application for new
exploration licences over prospective, yet largely unexplored ground, mainly to the north, west and
south of the Fortnum gold mine. Aerial photography has been flown over some of these newly
acquired areas and historical exploration data has been compiled ahead of on-ground exploration
activities.
Figure 5 - Bryah Basin Project Location Plan
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Bryah Resources Ltd 2020 Annual Report
RC Drilling Program
The Company commenced a 3 hole RC drilling program in May 2020 at the Windalah Prospect. In
July 2020, the Company completed an 11 hole RC drilling program, including 7 holes drilled at the
Windalah Prospect and 2 deep RC holes drilled to test an Electromagnetic (EM) conductor (PH1)
located 7 km north of the historic Peak Hill gold mine. Drilling at the Windalah Prospect in 2020 has
focused on an area where RC drilling in 2018 recorded significant gold mineralisation. This area is
considered to have geological similarities to the nearby VMS Horseshoe Lights copper-gold mine2
located 13 kilometres to the north and also the Yarlarweelor deposit, located about 30km to the
north-west.
Figure 6 - Windalah Prospect Drill Hole Location Plan
2 Peak Hill South E52/260, Annual Report 16 March 1988 – 16 March 1989, J.C. Rippert, Afmeco Pty Ltd, March 1989 (WAMEX
Report No A26830)
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Bryah Resources Ltd 2020 Annual Report
The best gold interval reported from this latest drilling at the Windalah Prospect was:
BBRC049:
12 metres from surface @ 5.13 g/t Au,
including 2m (2-3m) @ 21.48 g/t Au (see Figure 6 and Figure 7)
The drilling program at Windalah has helped Bryah delineate a steeply SSW-plunging high-grade
gold mineralised zone within the short limb of a brittle-ductile deformed jasperiod/chert unit (see
Figure 7).
Figure 7 - Windalah Prospect Drill Section A-A’
Aircore Drilling Program
In March 2020, the Company commenced an aircore (AC) drilling program with the main aim being
to test the large Windalah East geochemical anomaly discovered in 2018 by a soil sampling program.
The Windalah East area is highly anomalous in pathfinder minerals including Antimony (Sb), Arsenic
(As), and Selenium (Se), which are often associated with the footwall alteration cells of
hydrothermal VMS deposits (see Figure 8).
The Company partly completed the March 2020 program before COVID-19 caused an early
suspension of the drilling program. Eight AC drill holes were completed with one hole, (20WEAC004)
recording a gold intersection of 3 metres @ 1.09 g/t Au from 24 metres (see Figure 8).
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Bryah Resources Ltd 2020 Annual Report
In September 2020, the company commenced a 5,500 metre AC drilling program which aims to:
• complete testing the geochemical anomaly located at Windalah East, and
• undertake first pass reconnaissance drilling at the Wongawar, Fortnum East and Fiddlers East
prospects.
Figure 8 - Windalah East Prospect Drill Hole Location Plan
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Bryah Resources Ltd 2020 Annual Report
Mount Labouchere Nickel-Copper-Cobalt Discovery
In May 2020, the Company completed 16 shallow RC drill holes at the Mount Labouchere prospect
as part of its exploration activities under the Manganese Joint Venture with OM (Manganese)
Limited (see Figure 9). The samples assayed during the drilling program showed anomalism in
copper and cobalt.
An additional round of laboratory analysis of the samples from all the drill holes confirmed the
presence in several holes of Nickel, Copper and Cobalt mineralisation (see Figure 9 and Figure 10).
This nickel-copper-cobalt discovery is an exciting new target for Bryah, with the Company moving
quickly to advance its understanding of the local geology. The Company has undertaken an
orientation soil sampling survey to establish the extent of this anomaly. The soil sampling results
have been received and are being analysed ahead of follow-up exploration.
A geophysical data review has commenced to assist in the geological interpretation and establish
whether higher resolution surveys, either airborne or ground based, are required.
Figure 9 - Mount Labouchere Prospect Drill Hole Location Plan
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Bryah Resources Ltd 2020 Annual Report
DHEM survey
Figure 10 - Mount Labouchere Prospect Drill Section A-A’
A significant electromagnetic (EM) conductor target located 7km north of the Peak Hill Gold Mine;
(PH1) was tested with 2 RC holes drilled and cased to depths of 300 and 350 metres. This conductor
was originally identified in 2018 by a helicopter-borne Versatile Time-Domain Electromagnetic
(VTEM™ Max) survey and subsequently confirmed by a ground-based Moving Loop Electromagnetic
survey.
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Bryah Resources Ltd 2020 Annual Report
A multi-loop DHEM survey was successfully completed in July 2020 with significant conductive
responses, which are considered to be indicative of a bedrock conductor(s) recorded in both cased
drill holes. No further drilling has been undertaken since the DHEM survey was completed.
A DHEM survey was also completed of BBRC013 at the Windalah Prospect, however no significant
conductive responses were recorded.
Bryah Basin Project – Manganese Joint Venture
The Bryah Basin hosts several historical manganese mining areas. The Horseshoe Range has been
the main manganese producing region within the Bryah and Padbury Basins with production
dominated by the Horseshoe South Mine and a satellite deposit at Horseshoe North. Reported
production from these deposits from 1948 to 1971, was 490,000 tonnes of manganese ore at an
average grade of 42% manganese.3 Mining between 2008 and 2011 produced over 400,000 tonnes
of manganese ore from the reprocessing of historical stockpiles and open pit mining at Horseshoe
South.
In April 2019, Bryah purchased the Horseshoe South Mining Lease and Manganese Rights over a 154
km2 area adjacent to the Horseshoe South mine, including the Horseshoe North mine. In April 2019,
Bryah also executed a Farm-In and Joint Venture Agreement (“Agreement”) with OM (Manganese)
Limited (“OMM”), a wholly owned subsidiary of ASX-listed OM Holdings Limited4.
The Agreement applies to the rights to manganese only over approximately 660 km2 in the Bryah
Basin, including the historic Horseshoe South mine. The Agreement objective is to explore for
commercially mineable manganese, potentially leading to near term production.
In 2019, OMM funded $500,000 of project expenditure which yielded highly encouraging
manganese drilling results. In August 2019, OMM elected under the Agreement to proceed and the
Joint Venture (“JV”) was formed, whereby OMM secured an initial 10% JV interest.
Under the Agreement, OMM can elect to progressively fund the next $2.0 million of exploration
expenditure in four tranches of $500,000 each, to earn up to a 51% JV interest. OMM completed
Tranche 1 funding in June 2020 and now holds a 20% JV interest. OMM is proceeding to increase its
JV interest to 30% under Tranche 2, funding an additional $500,000 of project expenditure.
Bryah is Project Manager of the JV until OMM has earned its 51% JV interest and has elected to be
Project Manager.
RC Drilling Program
During 2020 Bryah has completed two drilling programs exploring for manganese. A total of 116 RC
drill holes was completed in May 2020 at four sites; the historic Horseshoe South mine, the Brumby
Creek, Mount Labouchere and Black Hill Prospects.
A second drilling program of 112 RC drill holes was completed in August 2020. This drilling tested
for extensions to high-grade manganese mineralisation intersected in the earlier programs at the
Brumby Creek and Black Hill Prospects and tested two new manganese target areas at the Black
Beauty and Cheval Prospects.
3 Pirajno, F., Occhipinti, S. A., and Swager, C. P., 2000, Geology and mineralization of the Palaeoproterozoic Bryah and Padbury
Basins, Western Australia: Western Australia Geological Survey, Report 59, 52p.
4 See BYH ASX Announcement dated 23 April 2019 for full details
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Bryah Resources Ltd 2020 Annual Report
The Brumby Creek Prospect was drilled for the first time by Bryah in May 2019 where drill hole
Brumby Creek Prospect
BRRC074 intersected 23 metres from surface @ 25.8% Mn.
This discovery was followed by 2 phases of drilling in May and August 2020 with significant widths
of high-grade manganese intersected under shallow cover (see Figure 11 and Figure 12). The grades
and widths of mineralisation are the best intersected in this area to date, with potentially direct-
shipping grade manganese (>30% Mn) identified.
Figure 11 - Brumby Creek Prospect Drill Hole Location Plan
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Bryah Resources Ltd 2020 Annual Report
A trial using various geophysical techniques is planned to be completed over this area during the
December 2020 quarter with the aim of identifying the geophysical responses of high-grade
manganese intersected by drilling.
Figure 12 - Brumby Creek Prospect Drill Section 7190675mN.
The Black Hill Prospect was identified by the Company during rock chip sampling in 2017 and 2018.
Black Hill Prospect
The deposit outcrops on the top of a low mesa-style hill which rises above the surrounding terrain.
The Company has completed a total of 22 holes at Black Hill during 2019 and 2020 with high-grade
manganese intervals from surface being recorded, with potentially direct shipping ore grades
exceeding 30% Mn (see Figure 13 and Figure 14).
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Bryah Resources Ltd 2020 Annual Report
Figure 13 - Black Hill Prospect Drill Hole Location Plan
Figure 14 - Black Hill Prospect Drill Section A-A’
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Bryah Resources Ltd 2020 Annual Report
Results from drilling in 2019 and May 2020 at the historic Horseshoe South mine confirm the
Horseshoe South Mine
potential for zones of high-grade manganese mineralisation to be present just below the existing
open pit surfaces.
The drilling also extended the zones of manganese mineralisation identified at the Horseshoe South
Extended pit area. Three drill holes (HERC047 - HERC049) were drilled by the Company at the
northern end of the Horseshoe South Extended pit to test for manganese identified from shallow
historical drilling (see Figure 15).
Figure 15 - Horseshoe South Extended Pit Area Drill Hole Location Plan
All 3 holes recorded wide zones of manganese beneath the historical drilling (see Figure 16),
confirming the potential for additional mineralisation to exist below the current pit floor.
Further drilling within the Horseshoe South Extended pit area will be undertaken in up-coming
programs to extend the mineralised zones.
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Bryah Resources Ltd 2020 Annual Report
Figure 16 - Horseshoe South Extended Pit Area - Section A-A’
At the Mount Labouchere prospect, 16 RC holes were drilled to test for manganese beneath shallow
Mount Labouchere Prospect
cover around an area of outcropping manganese. The drilling demonstrated that there are no
significant extensions of manganese beyond the outcropping area.
At the Black Beauty and Cheval Prospects 76 RC holes were drilled in August 2020. The holes were
Cheval and Black Beauty Prospects
widely spaced and designed to test areas of outcrop as well as for possible buried channel-style
mineralisation. Some encouraging manganese grade and intersection thicknesses were recorded at
both locations.
The areas with the best results will need to be tested with further drilling.
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Bryah Resources Ltd 2020 Annual Report
Directors
The names of the directors in office during or since the end of the financial year and up to the date of this
report are as follows. Directors were in office for this entire period unless otherwise stated.
Mr Neil Andrew Marston
Mr Ian George Stuart
Mr Leslie James Ingraham
(Managing Director)
(Non-executive Chair)
(Non-executive Director)
Information of Directors
The names, qualifications and experience of each person who has been a director during the period and to
the date of this report are:
Neil Andrew Marston B.Com FGIA FCG MAICD
Mr Marston is a qualified accountant and Chartered Secretary with over 40 years of experience working in
the resources and other industry sectors. He is a Fellow of the Governance Institute of Australia and the
Chartered Governance Institute and a member of the Australian Institute of Company Directors.
Neil has extensive experience in the areas of mineral exploration, capital raising, corporate governance and
compliance, project management, mining and environmental approvals, contract negotiations, community
and stakeholder engagement.
Mr Marston is presently not a director of any other ASX-listed company.
Ian George Stuart B.Sc (Hons) F.FIN MAICD
Mr Stuart is a geologist by profession with experience in both the finance and mining industries. He holds an
Honours degree in Geology, is a Fellow of the Financial Services Institute of Australasia and a member of the
Australian Institute of Company Directors. Ian has extensive experience in capital markets and is conversant
with public company governance and management across international jurisdictions.
Mr Stuart is presently not a director of any other ASX-listed company.
Leslie James Ingraham
Mr Ingraham has been in private business for over 30 years and is an experienced mineral prospector and
professional investor. He has successfully worked as a consultant for both private companies and companies
listed on the ASX. Core competencies include capital raising and shareholder liaison.
During the past three years, Mr Ingraham was also a director of ASX listed company Australian Vanadium
Limited.
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Bryah Resources Ltd 2020 Annual Report
Company Secretary
The following person held the position of Company Secretary at the end of the period and at the date of this
report:
Neil Andrew Marston
Meetings of Directors
The number of meetings of Directors (including meetings of committees of Directors) held during the period
and the number of meetings attended by each Director were as follows:
Board of Directors
Number eligible to attend
Number attended
Leslie Ingraham
Neil Marston
Ian Stuart
3
3
3
3
3
3
Operating and Financial Review
A Review of Operations is contained in the Directors’ Report.
The loss of the Company for the financial year after providing for income tax amounted to $811,052 (2019:
($551,649). The Company’s net assets as at 30 June 2020 were $7,742,785 (2019: $5,611,683). At 30 June
2020, the Company had cash reserves of $1,824,511 (2019: $577,410).
The net assets of the group have increased by $2,131,102. The change is largely due to the following factors:
•
•
•
•
The issue of 53,864,295 shares raising $3,026,548 before costs;
exploration and evaluation of the Bryah Basin Project and farm-in and joint venture Manganese Projects
with OM (Manganese) Limited;
incurring overheads and running costs consistent with operating a listed company; and
remuneration of key management personnel essential to the continued success of the Company.
The COVID-19 outbreak was declared a pandemic by the World Health Organisation in March 2020. The
outbreak and the response from Governments dealing with the pandemic has affected general activity levels
within the global community and economies. Bryah Resources Limited introduced flexible work practices
during the initial phase of the pandemic which enabled operations to quickly adapt with minimal disruption
to the business. Employees at all levels of the business were asked to change the way they work, and how
they interacted professionally and socially. There have been no COVID-19 cases identified amongst our
employees. In the absence of a vaccine for the virus, the global operating environment remains volatile and
the potential disruption to our suppliers and contractors, and further government restrictions, have the
potential to adversely impact future operations of the Company.
The annual financial statements for the Company have been prepared based on assumptions and conditions
prevalent at 30 June 2020. Given ongoing economic uncertainty, these assumptions could change in the
future.
Principal Activities
The principal activities of the Company during the period was the pursuit of exploration and evaluation
activities on the Bryah Basin and Gabanintha located in the Meekatharra region of Western Australia.
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Bryah Resources Ltd 2020 Annual Report
Likely Developments and Expected Results
Likely developments in the operations of the Company and the expected results of those operations in future
financial periods have not been included in this report as the inclusion of such information is likely to result
in unreasonable prejudice to the Company.
Environmental Regulation
The Company’s operations are subject to various environmental laws and regulations under government
legislation. The exploration tenements held by the Company are subject to these regulations and there have
not been any known breaches of any environmental regulations during the financial period and up until the
date of this report.
Dividends
No dividends have been declared since the start of the financial period.
Events subsequent to Reporting Date
The following matters or circumstances have arisen since the end of the financial period which significantly
affect, or may significantly affect, the operations of the Company, the results of those operations, or the state
of affairs of the Company in subsequent financial years:
• On 31 July 2020 the Company issued 10,469,040 ordinary shares at $0.05 each, being the balance of
the June 2020 Placement, to raise an additional $523,452 before costs;
Share Options
At the date of this report, options were outstanding for the following unissued ordinary shares:
•
•
15,750,000 listed options (ASX:BYHO) expiring 31 October 2020 at an exercise price of 30 cents each;
3,500,000 unlisted options expiring 30 September 2022 at an exercise price of 9 cents each.
No person entitled to exercise these options had, or has any right, by virtue of the option, to participate in
any share issue of any other body corporate.
Indemnification of Officers
Deeds of indemnity have been given and insurance premiums paid since the end of the financial period for
directors and officers of the Company.
Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or 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 any part of those proceedings.
The Company was not a party to any such proceedings during the period.
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Bryah Resources Ltd 2020 Annual Report
Remuneration Report (Audited)
This report details the nature and amount of remuneration for each director and executive of the Company.
For the purposes of this report Key Management Personnel of the Company are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the
Company, directly or indirectly.
For the purposes of this report the term “executive” includes those key management personnel who are not
Directors of the Company.
Remuneration Committee
The full Board carries out the role and responsibilities of the Remuneration Committee and is responsible for
determining and reviewing the compensation arrangements for the Directors themselves, the Managing
Director and any Executives.
Executive remuneration is reviewed annually having regard to individual and business performance, relevant
comparative remuneration and internal and independent external advice.
Remuneration policy
The board policy is to remunerate Directors at market rates for time, commitment and responsibilities. The
board determines payments to the Directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum
aggregate amount of Directors’ fees that can be paid is subject to approval by shareholders in a general
meeting, from time to time. Fixed fees for non-executive directors are not linked to the performance of the
Company. However, to align Directors’ interests with shareholders’ interests, the Directors are encouraged
to hold shares in the Company and may be issued with options and performance rights from time to time.
The Company’s aim is to remunerate at a level that will attract and retain high-calibre directors and
employees. Company Directors and officers are remunerated to a level consistent with the size of the
Company.
The executive Directors and full-time executives receive a superannuation guarantee contribution as
required by government legislation, which is currently 9.5%, and do not receive any other retirement
benefits. Some individuals, however, may choose to sacrifice part of their salary to increase payments
towards superannuation.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed.
The Board believes that it has implemented suitable practices and procedures that are appropriate for an
organisation of this size and maturity.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and executive
compensation is separate and distinct.
Non-executive Director Compensation
Objective
The Board seeks to set aggregate compensation 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.
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Bryah Resources Ltd 2020 Annual Report
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-executive
directors shall be determined from time to time by a general meeting. An amount not exceeding the amount
determined is then divided between the Directors as agreed. The latest determination approved by
shareholders was an aggregate compensation of $500,000 per year.
The amount of aggregate compensation sought to be approved by shareholders and the manner in which it
is apportioned amongst Directors is reviewed annually. The Board considers advice from external consultants
as well as the fees paid to non-executive directors of comparable companies when undertaking the annual
review process. Non-Executive Directors’ remuneration may include an incentive portion consisting of
options, as considered appropriate by the Board, which may be subject to Shareholder approval in
accordance with ASX Listing Rules.
Separate from their duties as Directors, the Non-Executive Directors may undertake work for the Company
directly related to the evaluation and implementation of various business opportunities, including mineral
exploration/evaluation and new business ventures, for which they may receive a daily rate. These payments
will be made pursuant to individual agreements with the non-executive Directors and will not be taken into
account when determining their aggregate remuneration levels.
Executive Compensation
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their position
and responsibilities within the entity so as to:
•
reward executives for Company and individual performance against targets set by appropriate
benchmarks;
• align the interests of executives with those of shareholders;
•
link rewards with the strategic goals and performance of the Company; and
• ensure total compensation is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration, the Board negotiates a remuneration to
reflect the market salary for a position and individual of comparable responsibility and experience. Due to
the limited size of the Company and of its operations and financial affairs, the use of a separate remuneration
committee is not considered appropriate. Remuneration is regularly compared with the external market by
participation in industry salary surveys and during recruitment activities generally. If required, the Board may
engage an external consultant to provide independent advice in the form of a written report detailing market
levels of remuneration for comparable executive roles.
Remuneration consists of a fixed remuneration and a long-term incentive portion as considered appropriate.
Compensation may consist of the following key elements:
• Fixed Compensation;
• Variable Compensation;
• Short Term Incentive (STI); and
•
Long Term Incentive (LTI).
25
Bryah Resources Ltd 2020 Annual Report
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate
to the position and is competitive in the market. Fixed remuneration is reviewed annually by the Board having
regard to the Company and individual performance, relevant comparable remuneration in the mining
exploration sector and external advice.
The fixed remuneration is a base salary or monthly consulting fee.
Variable Pay - Long Term Incentives
The objective of long-term incentives is to reward Directors/executives in a manner which aligns this element
of remuneration with the creation of shareholder wealth. The incentive portion is payable based upon
attainment of objectives related to the director’s/executive’s job responsibilities. The objectives vary, but all
are targeted to relate directly to the Company’s business and financial performance and thus to shareholder
value.
Long term incentives (LTIs) granted to Directors and executives may be delivered in the form of options or
performance rights. LTI grants to executives are delivered in the form of the Company’s Performance Rights
and Options Plan.
The objective of the granting of options or rights is to reward executives in a manner which aligns the element
of remuneration with the creation of shareholder wealth. As such LTI’s are made to executives who are able
to influence the generation of shareholder wealth and thus have an impact on the Company’s performance.
The level of LTI granted is, in turn, dependent on the Company’s recent share price performance, the seniority
of the executive, and the responsibilities the executive assumes in the Company.
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the individual
receives a promotion.
Employment contracts of directors and senior executives
The employment arrangements of the non-executive chairman and non-executive directors are formalised
in letters of appointment.
Remuneration and other terms of employment for the Managing Director are formalised in an executive
service agreement. The commencement date of this agreement is the date the Company listed on the ASX.
Major provisions are set out below.
Neil Marston, Managing Director:
•
Annual base salary of $240,000 plus superannuation;
• Notice period required to be given by the Company for termination of one month, except in the case of
conviction of any major criminal offence which brings the Company into lasting disrepute;
• Notice period required to be given by the executive for termination of three months.
26
Bryah Resources Ltd 2020 Annual Report
Details of remuneration for period
Details of the remuneration of Directors and specified executives of Bryah Resources Limited are set out in
the following table. There are no other employees who are required to have their remuneration disclosed in
accordance with the Corporations Act 2001.
Short Term
Benefits
Salary & Fees
Post-
Employment
Super-
annuation
Share Based
Payments
Options
Total
Directors
Period
$
Neil Marston3
Stuart Hall 1
Leslie Ingraham3
Ian Stuart 2,3
Total Key
Management
Personnel
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
220,000
240,000
-
22,241
91,663
99,996
65,000
20,000
376,663
382,237
$
$
20,900
22,800
-
-
-
-
-
-
20,900
22,800
$
240,900
262,800
-
22,241
91,663
99,996
65,000
20,000
397,563
405,037
-
-
-
-
-
-
-
-
-
1. Resigned 12 February 2019
2. Appointed 12 February 2019
3. Directors Fees reduced by 50% for April and May 2020
Compensation options granted to Key Management Personnel
No incentive options were granted during the year ended 30 June 2020.
Shares issued to Key Management Personnel on exercise of compensation options
Performance
based
remuneration
%
%
-
-
-
-
-
-
-
-
-
-
No shares were issued to Directors or executives on exercise of compensation options during the year.
Compensation options lapsed during the period
1,000,000 incentive options previously issued to Key Management Personnel lapsed during the year.
Option holdings of Key Management Personnel and their related entities
Opening
Balance
Granted as
Remun-
eration
Options
Exercise
d
Options
Expired/
Cancelled
Net
Change/
Other
Balance
30 June
2020
Number
vested and
exercisable
Directors
Neil Marston
1,125,000
Leslie
Ingraham
Ian Stuart
150,000
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
125,000
125,000
150,000
150,000
-
-
27
Bryah Resources Ltd 2020 Annual Report
Share holdings of Key Management Personnel and their related entities
Opening
Balance
Received as
Remun-
eration
Options
Exercised
Acquired/
Disposed
Net
Change/
Other
Balance
30 June
2019
Directors
Neil Marston
5,450,000
Leslie Ingraham
5,300,000
Ian Stuart
75,0001
-
-
-
-
-
-
1,050,000
1,033,334
1,025,000
-
-
-
6,500,000
6,333,334
1,100,000
1 Shares held by Mr Stuart as beneficiary prior to his appointment.
Loans and other transactions with Key Management Personnel
There were no loans to or from key management personnel.
End of remuneration report
Auditor
Elderton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
Non-Audit Services
During the year Elderton Audit Pty Ltd did not provide any non-audit services.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration is set out on page 54.
Signed in accordance with a resolution of the Board of Directors:
NEIL MARSTON
Director
30 September 2020
28
Bryah Resources Ltd 2020 Annual Report
Statement of Profit or Loss and Other Comprehensive Income
For the period ended 30 June 2020
Income
Stock exchange and registry expenses
Legal expenses
Depreciation
Travel and accommodation expenses
Share Based Payments
Directors' fees and benefits expenses
Other corporate and administration expenses
Loss before income tax expense
Income tax expense
Net loss for period
Other Comprehensive Income
Note
2(a)
16
2(b)
3
2020
$
166,345
(56,318)
(24,473)
(39,754)
(9,942)
26,067
(397,563)
(475,414)
2019
$
523,875
(39,213)
(25,918)
(54,072)
(12,283)
(47,192)
(405,037)
(491,809)
(811,052)
(551,649)
-
-
(811,052)
(551,649)
Other Comprehensive Income for the period, net of tax
-
-
Total comprehensive loss attributable to members of
Bryah Resources Limited
(811,052)
(551,649)
Basic and diluted loss per share
5
Cents
(0.89)
Cents
(0.93)
The accompanying notes form part of these financial statements.
29
Bryah Resources Ltd 2020 Annual Report
Statement of Financial Position
as at 30 June 2020
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration and evaluation assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Other liabilities
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2020
$
2019
$
6
7
8
9
10
11
12
1,824,511
60,196
1,884,707
577,410
108,011
685,421
205,820
180,371
5,914,857
5,363,320
6,120,677
5,543,691
8,005,384
6,229,112
179,973
2,000
80,626
262,599
262,599
450,892
109,855
56,682
617,429
617,429
7,742,785
5,611,683
13
14
9,746,827
6,891,307
282,851
196,217
(2,286,893)
(1,475,841)
7,742,785
5,611,683
The accompanying notes form part of these financial statements.
30
Bryah Resources Ltd 2020 Annual Report
Statement of Changes in Equity
For the period ended 30 June 2020
Issued
Capital
$
Share Based
Payment
Reserve
$
Accumulated
Losses
$
Total
$
Balance as at 1 July 2018
6,365,376
170,150
(924,192)
5,611,334
Loss for the period
Other comprehensive income
Total Comprehensive Income
Transactions with owners, in their
capacity as owners
Ordinary shares issued for cash
Securities issued as consideration
Shares issued as consideration for
tenements (Note 9)
Capital raising costs
-
-
-
360,000
21,125
170,000
(25,194)
-
-
-
-
26,067
-
-
(551,649)
(551,649)
-
-
(551,649)
(551,649)
-
-
-
-
360,000
47,192
170,000
(25,194)
Balance as at 30 June 2019
6,891,307
196,217
(1,475,841)
5,611,683
Loss for the period
Other comprehensive income
Total Comprehensive Income
-
-
-
Transactions with owners, in their
capacity as owners
Ordinary shares issued for cash
3,026,548
-
-
-
-
Securities issued as consideration
150,000
86,634
Capital raising costs
(321,028)
-
(811,052)
(811,052)
-
-
(811,052)
(811,052)
-
-
-
3,026,548
236,634
(321,028)
Balance as at 30 June 2020
9,746,827
282,851
(2,286,893)
7,742,785
The accompanying notes form part of these financial statements.
31
Bryah Resources Ltd 2020 Annual Report
Statement of Cash Flows
For the period ended 30 June 2020
Cash flows used in operating activities
Payments to suppliers and employees
Interest received
Net receipts from other entities
Note
2020
$
2019
$
(943,150)
(862,378)
1,042
60,799
16,231
540,682
Net Cash used in operating activities
6
(881,309)
(305,466)
Cash flows used in investing activities
Payments for exploration of mining interests
Proceeds from farm-in agreement
Payment for plant and equipment
Net Cash used in investing activities
Cash flows provided by financing activities
Net proceeds from issue of securities
Payment of capital raising costs
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash and cash equivalents at beginning of the financial
period
(918,521)
(1,817,774)
250,000
(21,289)
-
(147,096)
(689,810)
(1,964,870)
3,026,548
(208,328)
2,818,220
360,000
(16,043)
343,957
1,247,101
(1,926,379)
577,410
2,503,789
Cash at end of the financial period
6
1,824,511
577,410
The accompanying notes form part of these financial statements.
32
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
1.
These financial statements and notes represent those of Bryah Resources Limited for the period ended 30
June 2020.
Bryah Resources Limited is a company limited by shares incorporated in Australia. The Company is domiciled
in Western Australia. The nature of operations and principal activities of the Company are described in the
Directors' Report.
1(a) Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance
with Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The
Company is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
The financial statements have been prepared on an accruals basis and are based on historical costs modified,
where applicable, by the measurement at fair value of selected non-current assets, financial assets and
financial liabilities. Material accounting policies adopted in preparation of these financial statements are
presented below and have been consistently applied unless otherwise stated.
The Company’s financial statements are presented in Australian dollars.
1(b) Going concern
The financial report has been prepared on the going concern basis, which contemplated the continuity of
normal business activity and the realisation of assets and settlement of liabilities in the normal course of
business.
The directors have considered the funding and operational status of the business in arriving at their
assessment of going concern and believe that the going concern basis of preparation is appropriate, based
upon the following:
• Current cash and cash equivalents on hand;
• The ability of the Company to obtain funding through various sources, including debt and equity;
• The ability to further vary cash flow depending upon the achievement of certain milestones within
the business plan; and
• The expected receipt of sale proceeds.
Should the entity not be able to continue as a going concern, it may be required to realise its assets and
discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those
stated in the financial statements and that the financial report does not include any adjustments relating to
the recoverability and classification of recorded asset amounts or liabilities that might be necessary should
the entity not continue as a going concern.
1(c) Adoption of new and revised accounting standards
The Company has adopted all the new and revised Standards and Interpretations issued by the AASB that are
relevant to its operations for the 30 June 2020 reporting period. It has been determined by the Company
that, there is no impact, material or otherwise, of the new and revised standards and interpretations on its
business and therefore no change is necessary to Company accounting policies including:
33
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
AASB 16: Leases
This Standard supersedes AASB 117 Leases, Interpretation 4 Determining whether an arrangement contains
a Lease, AASB interpretation 115 Operating Leases-Incentives and AASB interpretation 127 Evaluating the
Substance of Transactions Involving the Legal Form of lease. AASB 16 sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to account for all
leases under a single on-balance sheet model similar to the accounting for finance leases under AASB 117.
The key features of AASB 16 are as follows:
•
•
•
•
•
Lessees are required to recognise assets and liabilities for all leases with a term of more than 12
months unless the underlying asset is of low value.
A lessee measures right-of-use assets similarly to other non-financial assets and lease liabilities
similarly to other financial liabilities.
Assets and Liabilities arising from the lease are initially measured on a present value basis. The
measurement includes non-cancellable lease payments (including inflation-linked payments), and
includes payments to be made in optional periods if the lessee is reasonably certain to exercise an
option to extend the lease, or not to exercise an option to terminate the lease.
AASB 16 contains disclosure requirements for leases.
Based on the Company’s detailed assessment of the impact of AASB 16, the standard does not have
a material impact on the transactions and balances recognised in the financial statements.
1(d)
Statement of Compliance
The financial report was authorised for issue on 30 September 2020.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards (IFRS).
1(e)
Revenue and other income
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured.
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
1(f)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as described above, net of outstanding bank overdrafts.
34
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
1(g)
Trade and other receivables
Trade receivables, which generally have 30 days terms, are recognised and carried at original invoice amount
less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is
objective evidence that the Company will not be able to collect the debts. Bad debts are written off when
identified.
1(h)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except when the deferred
income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and that, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax
losses can be utilised, except when the deferred income tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income legislation and the anticipation that the Company will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law. No deferred tax is recognised in the current period for the carried forward
losses as the Company considers there will be no taxable profit to offset the brought forward tax losses in
future.
35
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
1(i)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority
are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
1(j)
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Category
Life (years)
Depreciation Rate
Computers
Office equipment
Plant and equipment
Vehicles
Min
2
2
5
4
Max
4
10
20
10
Min
25%
10%
5%
10%
Max
50%
50%
20%
25%
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 property, plant and equipment are reviewed for impairment at each reporting 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 the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for
the cash-generating unit to which the asset belongs, unless the asset’s value in use can be estimated to be
close to its fair value.
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.
Impairment losses are recognised in the statement of profit or loss and other comprehensive income.
36
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
(ii)
Derecognition and disposal
An item of 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 the statement of profit or loss and other
comprehensive income in the year the asset is derecognised.
1(k)
Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the period 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)
(b)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area have not, at the reporting 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 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 amortisation 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 periods.
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
mine development.
37
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
1(l)
Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Company makes
an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value
less costs to sell and its value in use and is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of assets and the
asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or
cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at a revalued amount (in which
case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior periods. Such reversal is
recognised in profit or loss unless the asset is carried at a revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods
to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its
remaining useful life.
1(m)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Company prior to the end of the financial period that are unpaid and arise when the
Company becomes obliged to make future payments in respect of the purchase of these goods and services.
1(n)
Employee benefits
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled
within 12 months of the reporting date are recognised in other payables in respect of employees’ services up
to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
1(o)
Share-based payment transactions
The Company may provide benefits to employees (including senior executives) of the Company in the form
of share-based payments, whereby employees render services in exchange for shares or rights over shares
(equity-settled transactions).
38
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
When provided, the cost of these equity-settled transactions with employees is measured by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined
by an external valuer using a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of the Company (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects
(i)
(ii)
the extent to which the vesting period has expired, and
the Company’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The amount charged or credited to the
statement of profit or loss and other comprehensive income for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at
the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation
of earnings per share.
1(p)
Issued capital
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.
1(q)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors of the
Company. The Company presently operates in one segment being mineral exploration within Australia.
39
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
1(r)
Earnings per share
Basic earnings per share is calculated as net profit or loss attributable to members of the Company, adjusted
to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by
the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit or loss attributable to members of the Company,
adjusted for:
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus element.
•
1(s)
Significant Accounting Estimates and Judgments
In the process of applying the Company’s accounting policies, management has made the following estimates
and judgments, which have the most significant effect on the amounts recognised in the financial statements.
Exploration and evaluation assets
The Company’s accounting policy for exploration and evaluation expenditure is set out at Note 1(j). The
application of this policy necessarily requires management to make certain judgements and assumptions as
to future events and circumstances. Any such judgements and assumptions may change as new information
becomes available. If, after having capitalised expenditure under the policy, it is concluded that the
expenditures are unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount
will be written off to the statement profit or loss and other comprehensive income.
Share-based payment transactions
The Company measures the cost of equity-settled transactions with employees and directors by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined
from a Black-Scholes pricing model that incorporates various estimates and assumptions.
Joint operations
A joint arrangement in which the Group has direct rights to underlying assets and obligations for underlying
liabilities is classified as a joint operation.
Interests in joint operations are accounted for by recognising the Group’s assets (including its share of any
assets held jointly); its liabilities (including its share of any liabilities incurred jointly); its revenue from the
sale of its share of the output arising from the joint operation; its share of the revenue from the sale of the
output by the joint operation; and its expenses (including its share of any expenses incurred jointly).
40
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
2.
REVENUE AND EXPENSES
2(a)
Income
Interest received
Other Income 1
1. Other Income includes $250,000 exercise fee less impairment of $225,586,
received from OMM Holdings’ subsidiary, OMM, in relation to the joint
venture and farm-in agreement.
2(b)
Other Expenses
Salaries and wages
Superannuation
Rental and office facility expenses
Investor relations expenses
Auditor's fees
Other corporate and administration expenses
2020
$
2019
$
1,042
165,303
10,430
513,445
166,345
523,875
86,989
14,711
54,878
91,558
21,725
205,553
475,414
154,826
24,880
45,648
148,580
25,000
92,875
491,809
3.
INCOME TAX
Income tax expense
3(a)
Major components of income tax expense for the year ended 30 June 2020 are:
Income statement
Current income
Current income tax charge (benefit)
Current income tax not recognised
Deferred income tax
Relating to origination and reversal of temporary
differences
Deferred tax benefit not recognised
Income tax expense (benefit) reported in income
statement
(493,515)
493,515
(743,357)
743,357
(175,573)
(216,199)
175,573
216,199
-
-
41
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
2020
$
2019
$
3.
INCOME TAX (continued)
Income tax expense (continued)
3(a)
A reconciliation of income tax expense (benefit) applicable to accounting profit before income tax at the
statutory income tax rate to income tax expense at the company’s effective income tax rate for the
period ended 30 June 2019 is as follows:
Accounting profit (loss) before tax from continuing operations
Accounting profit (loss) before income tax
At the statutory income tax rate of 27.5% (2019: 30%)
(811,052)
(811,052)
(223,039)
(551,649)
(551,649)
(165,494)
Add:
Non-deductible expenditure
Temporary differences and losses not recognised
At effective income tax rate of 0% (2019: 0%)
Income tax expense reported in income statement
Deferred tax assets/(liabilities)
3(b)
Deferred tax assets/(liabilities) have not been recognised in
respect of the following items
Liabilities
Receivables
Capitalised exploration expenditure
Assets:
Trade and other payables
Provisions
Business related costs
Tax Losses
(19,990)
243,029
14,997
150,497
-
-
-
-
(5,947)
(1,116,250)
(1,122,198)
-
(1,025,771)
(1,025,771)
6,167
22,172
176,894
1,782,358
1,987,591
11,393
17,005
173,926
1,513,269
1,715,593
689,822
The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in
respect of these items because it is not probable that future taxable profit will be available against which
the Company can utilise the benefits.
865,393
AUDITORS’ REMUNERATION
4.
Amounts paid or due and payable to Elderton Audit Pty Ltd
for:
-audit or review services
23,200
23,200
25,000
25,000
42
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
5.
EARNINGS PER SHARE
Basic loss per share
The earnings and weighted average number of ordinary shares
used in the calculation of basic and diluted loss per share is as
follows:
Net loss for the period
Weighted average number of ordinary shares used in the
calculation of Basic and diluted EPS
6.
CASH AND CASH EQUIVALENTS
Cash at bank
Short term deposits
2020
$
2019
$
(Cents)
(0.89)
(Cents)
(0.93)
(811,052)
(551,649)
No.
No.
91,210,836
59,425,452
1,824,511
577,410
-
-
1,824,511
577,410
Cash at bank includes $2,000 held in trust (Note 11), which therefore is restricted cash.
Short term deposits earn interest at market rates fixed at the time of the contract.
Cash and cash equivalents for the purpose of the statement of cash flows are comprised of cash at bank
and short-term deposits.
6(a)
Reconciliation of loss for the period to net cash flows from operating activities:
Loss for the period
Non-cash flows in the loss
Depreciation
Share based payments
Changes in operating assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables relating to
operating activities
Increase/(decrease) in provisions
Net cash flows used in operating activities
(811,052)
(551,649)
39,754
(26,067)
54,072
47,192
47,815
20,329
(155,702)
104,678
23,943
19,912
(881,309)
(305,466)
43
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
7.
TRADE AND OTHER RECEIVABLES
Current
GST receivable
Prepayments
Trade receivable
8.
PLANT AND EQUIPMENT
Plant and Equipment
At Cost
Accumulated Depreciation
2020
$
2019
$
36,073
21,627
2,496
60,196
306,739
(100,919)
205,820
68,326
32,975
6,710
108,011
242,694
(62,323)
180,371
8(a) Movements in carrying amounts
Movements in the carrying amounts for each class of plant and equipment during the financial year:
Balance at 1 July 2019
Additions
Disposals
Depreciation Expense
Balance at 30 June 2020
Plant &
Equipment
140,661
23,058
(611)
(39,103)
124,005
Note
Motor Vehicles
Total
39,710
42,756
-
(651)
81,815
2020
$
180,371
65,814
(611)
(39,754)
205,820
2019
$
9.
EXPLORATION AND EVALUATION ASSET
Balance as at 1 July 2019
5,363,320
3,196,913
Mineral Rights and Tenements acquired from
vendors via issue of ordinary shares
13(b)
Mineral Rights and Tenements acquired
from vendors for cash consideration
Impairment of interest in Bryah Basin
Manganese Project
Other tenement acquisition costs
Expenditures during the period
Balance as at 30 June 2020
-
-
170,000
270,000
(225,586)
-
59,747
717,376
5,914,857
15,554
1,710,853
5,363,320
44
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
9.
EXPLORATION AND EVALUATION ASSET (continued)
The expenditure above relates principally to the exploration and evaluation phase. The ultimate
recoupment of this expenditure is dependent upon the successful development and commercial
exploration, or alternatively, sale of the respective areas of interest, at amounts at least equal to the
carrying value.
Tenement acquisition costs
The Group has entered into agreement with OM (Manganese) Ltd (OMM) for rights in the Bryah Basin
Manganese project. Under the agreement OMM may earn interest up to 70% in the mineral rights and
parties will have joint control under terms and conditions of agreement. The Joint Venture (“the JV”), an
unincorporated entity, will be classified as a joint operation that operates under the terms of a farm-in
and joint venture agreement entered between the partners. Accordingly, the Group’s interest in the
assets, liabilities, revenues and expenses attributable to the joint operations have been included in the
appropriate line items in the consolidated financial statements. OMM has acquired interest up to 20% in
manganese right during the year and 20% cost of the manganese rights (value AUD 225,586) has been
derecognised from tenement acquisition costs.
10.
TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables and accruals
Note
2020
$
2019
$
140,160
39,813
179,973
273,385
177,507
450,892
Trade creditors are non-interest bearing and are normally settled on 30 day terms. Due to the short-term
nature of trade payables and accruals, their carrying value is assumed to approximately their fair value.
11.
OTHER LIABILITIES
Current
Joint Venture Payable
Share application funds held in trust
6
12.
PROVISIONS
Current
Employee entitlements
Exploration rehabilitation obligations
-
2,000
2,000
37,168
43,458
80,626
107,855
2,000
109,855
40,920
15,762
56,682
45
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
13.
ISSUED CAPITAL
13(a) Share capital
Ordinary Shares – fully paid
Share issue costs written off against issued capital
2020
$
2019
$
10,959,707
(1,212,880)
7,783,159
(891,852)
9,746,827
6,891,307
13(b) Movements in ordinary share capital
Ordinary shares – fully paid
Balance at beginning of year
Issue of shares for cash
Issue of shares as consideration
for tenements (Note 9)
Issue of ordinary shares in lieu
of cash consideration
2020
Number
63,790,505
53,864,295
2020
$
7,783,159
3,026,548
2019
Number
2019
$
56,350,120
7,232,034
4,500,000
360,000
-
-
2,615,385
170,000
3,750,000
150,000
325,000
21,125
Balance at end of period
121,404,800
10,959,707
63,790,505
7,783,159
13(c)
Terms and conditions of issued capital
Ordinary shares have the right to receive dividends as declared and, in the event of the winding up the
Company to participate in proceeds from the sale of all surplus assets in proportion to the number of and
amounts paid up on shares held.
13(d) Share Options
As at 30 June 2020, the following options over unissued ordinary shares were outstanding:
(i)
(ii)
3,500,000 unlisted options expiring 30 September 2022 at an exercise price of 9 cents each.
15,750,000 listed options expiring 31 October 2020 at an exercise price of 30 cents each. Of these
options, 12.5 million were issued as free attaching options under the Initial Public Offering (Offer)
completed by the Company in October 2017 and 1.0 million were issued to Argonaut Investments
Pty Ltd pursuant to their appointment as lead manager to the Offer at $0.00001 per option. A
further 2,250,000 listed options were issued in December 2018 as free attaching options under a
placement of new shares.
46
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
14.
RESERVES
Share-based payment reserve
Share-based payment reserve
Opening balance
Share-based payments expense
Balance at end of period
2020
$
2019
$
282,851
282,851
196,217
192,617
196,217
86,634
282,851
170,150
26,067
196,217
The Share Based Payment Reserve records the cumulative value of services received for the issue of share
options. When the options are exercised the amount in the share option reserve is transferred to share
capital.
On 4 October 2019, following Board approval, the Company issued 3,500,000 options with an exercise
price of $0.09 and an expiry date of 30 September 2022 to corporate advisors in lieu of payment for capital
raising costs.
The options issued have been valued using a Black-Scholes model with the following parameters:
• Deemed Share Price at issue:
• Option Exercise Price:
•
•
•
Volatility:
Effective Interest Rate:
Expiry date:
$0.06
$0.09
100%
0.69%
30 September 2022
47
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
15.
COMMITMENTS
15(a) Exploration Commitments
2020
$
2019
$
The Company has certain obligations to perform minimum exploration work and to expend minimum
amounts of money on such work on mining tenements. These obligations may be varied from time to time
subject to approval and are expected to be fulfilled in the normal course of the operations of the Company.
These commitments have not been provided for in the accounts. The current minimum expenditure
commitments on the tenements are:
Payable
-
-
no later than 1 year
between 1 and 5 years
570,480
4,253,120
4,823,600
473,480
2,616,420
3,089,900
15(b) Operating Lease Commitments
The Company has a shared service agreement which includes access to office facilities at Level 1, 85
Havelock Street, West Perth, and warehouse facilities at Unit 6/32 Mooney Street, Bayswater:
Payable
-
-
no later than 1 year
between 1 and 5 years
41,870
39,295
81,165
31,727
-
31,727
16.
KEY MANAGEMENT PERSONNEL DISCLOSURES
16(a) Compensation of Key Management Personnel
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid
or payable to each member of the Company’s key management personnel.
Director and Executive Disclosures Compensation of key management personnel
Short-term personnel benefits
Post-employment benefits
376,663
20,900
397,563
382,237
22,800
405,037
16(b)
Loans and Other Transactions with Key Management Personnel
There were no loans to key management personnel or their related entities during the financial year.
48
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
17.
SEGMENT INFORMATION
AASB 8 requires a ‘management approach’ under which segment information is presented on the same
basis as that used for internal reporting purposes. The Board as a whole will regularly review the identified
segments in order to allocate resources to the segment and to assess its performance.
During the year, the Company considers that it operated in only one segment, being mineral exploration
within Australia. All the assets are located in Australia only.
18.
CONTINGENT LIABILITIES
In the opinion of the Directors, the Company does not have any contingent liabilities as at 30 June 2020.
19.
FINANCIAL RISK MANAGEMENT
The Company’s principal financial instruments comprise receivables, payables, cash and short-term
deposits. The Company manages its exposure to key financial risks in accordance with the Company’s
financial risk management policy. The objective of the policy is to support the delivery of the Company’s
financial targets while protecting future financial security.
The main risks arising from the Company’s financial instruments are interest rate risk, credit risk and
liquidity risk. The Company does not speculate in the trading of derivative instruments. The Company uses
different methods to measure and manage different types of risks to which it is exposed. These include
monitoring levels of exposure to interest rates and assessments of market forecasts for interest rates.
Ageing analysis of and monitoring of receivables are undertaken to manage credit risk, liquidity risk is
monitored through the development of future rolling cash flow forecasts.
The Board reviews and agrees policies for managing each of these risks as summarised below.
Primary responsibility for identification and control of financial risks rests with the Board. The Board
reviews and agrees policies for managing each of the risks identified below, including for interest rate risk,
credit allowances and cash flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for recognition,
the basis of measurement and the basis on which income and expenses are recognised, in respect of each
class of financial asset and financial liability are disclosed in note 1 to the financial statements.
19(a)
Interest rate risk
The Company’s exposure to risks of changes in market interest rates relates primarily to the Company’s
cash balances. The Company constantly analyses its interest rate exposure. Within this analysis
consideration is given to potential renewals of existing positions, alternative financing positions and the
mix of fixed and variable interest rates. As the Company has no interest-bearing borrowings its exposure
to interest rate movements is limited to the amount of interest income it can potentially earn on surplus
cash deposits. The following sensitivity analysis is based on the interest rate risk exposures in existence at
the reporting date.
49
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
2020
$
2019
$
At the reporting date, the Company had the following financial assets exposed to variable interest rates
that are not designated in cash flow hedges:
Financial Assets
Cash and cash equivalents (interest-bearing accounts)
1,824,511
1,824,511
577,410
577,410
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting
date.
At the reporting date, if interest rates had moved as illustrated in the table below, with all other variables
held constant, post-tax profit and equity relating to financial assets of the Company would have been
affected as follows:
Estimates of reasonably possible movements:
Post tax profit – higher / (lower)
+0.5%
-0.5%
Equity – higher / (lower)
+0.5%
-0.5%
19(b)
Liquidity Risk
5,436
(5,436)
5,436
(5,436)
2,504
(2,504)
2,504
(2,504)
The Company manages liquidity risk by monitoring immediate and forecast cash requirements and
ensuring adequate cash reserves are maintained.
19(c) Credit risk
Credit risk arises from the financial assets of the Company, which comprise deposits with banks and trade
and other receivables. The Company’s exposure to credit risk arises from potential default of the counter
party, with the maximum exposure equal to the carrying amount of these instruments. The carrying
amounts of financial assets included in the statement of financial position represents the Company’s
maximum exposure to credit risk in relation to those assets.
The Company does not hold any credit derivatives to offset its credit exposure. The Company trades only
with recognised, creditworthy third parties and as such collateral is not requested nor is it the Company’s
policy to securitise its trade and other receivables.
Receivable balances are monitored on an ongoing basis with the result that the Company does not have a
significant exposure to bad debts.
There are no significant concentrations of credit risk within the Company.
50
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
All surplus cash holdings within the Company are currently invested with mainstream Australian financial
institutions.
19(d) Capital Management Risk
Management controls the capital of the Company in order to maximise the return to shareholders and
ensure that the Company can fund its operations and continue as a going concern.
Management effectively manages the Company’s capital by assessing the Company’s financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of expenditure and debt levels and share and option issues.
The Company has no external loan debt facilities other than trade payables. There have been no changes
in the strategy adopted by management to control capital of the Company since the prior period.
19(e) Commodity Price and Foreign Currency Risk
The Company’s exposure to price and currency risk is minimal given the Company is still in the exploration
phase.
19(f)
Fair Value
The methods of estimating fair value are outlined in the relevant notes to the financial statements. All
financial assets and liabilities recognised in the statement of financial position, whether they are carried
at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair values
unless otherwise stated in the applicable notes.
20.
SHARE BASED PAYMENTS
The following share-based payments were made during the period:
Cancellation of performance rights
Capital raising costs
Total
(26,067)
112,701
86,634
EVENTS SUBSEQUENT TO THE REPORTING DATE
21.
The following matters or circumstances have arisen since the end of the financial period which significantly
affect, or may significantly affect, the operations of the Company, the results of those operations, or the
state of affairs of the Company in subsequent financial years:
• On 31 July 2020 the Company issued 10,469,040 ordinary shares at $0.05 each, being the balance
of the June 2020 Placement, to raise an additional $523,452 before costs.
51
Bryah Resources Ltd 2020 Annual Report
Notes to the Financial Statements
For the period ended 30 June 2020
22.
RELATED PARTIES TRANSACTIONS
22(a) Key Management Personnel
Disclosures relating to key management personnel are set out in note 16 and the remuneration report
included in the Directors' Report.
22(b) Transactions with Related Parties
The following transaction occurred with related parties:
Payment for goods and services
Payment for office rent and other services from Australian
Vanadium Limited (director-related entity of Leslie
Ingraham)
22(c) Receivable from and payable to related parties
Current payables
Trade payables to Australian Vanadium Limited (director-
related entity of Leslie Ingraham)
2020
$
2019
$
189,071
93,810
189,071
93,810
50,848
103,192
50,848
103,192
22(d)
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
22(e) Terms and Conditions
All transactions were made on normal commercial terms and conditions and at market rates.
52
Bryah Resources Ltd 2020 Annual Report
Directors’ Declaration
The Directors of the Company declare that:
1.
the financial statements and notes set out on pages 29 to 52 are in accordance with the
Corporations Act 2001 including:
a.
b.
complying with Australian Accounting Standards, the Corporations Regulations 2001 and
other mandatory professional reporting requirements, and
giving a true and fair view of the Company’s financial position as at 30 June 2020 and of
the performance for the period ended on that date, and;
2.
3.
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they become due and payable.
A statement that the attached financial statements are in compliance with International
Financial Reporting Standards has been included in the notes to the financial statements.
The Directors have been given the declarations pursuant to Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
NEIL MARSTON
DIRECTOR
Date: 30 September 2020
53
Bryah Resources Ltd 2020 Annual Report
Auditor’s Independence Declaration
54
Bryah Resources Ltd 2020 Annual Report
Independent Auditor’s Report
55
Bryah Resources Ltd 2020 Annual Report
56
Bryah Resources Ltd 2020 Annual Report
57
Bryah Resources Ltd 2020 Annual Report
58
Bryah Resources Ltd 2020 Annual Report
Annual Mineral Resource Statement
In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral
Resources at least annually. The date of reporting is 30 June each year, to coincide with the
Company’s end of financial year balance date.
In completing the annual review for the year ended 30 June 2020, the historical resource
factors were reviewed and found to be relevant and current. The Company’s projects have
not been converted to any active operation yet and hence no resource depletion has occurred
for the review period.
TUMBLEGUM SOUTH PROJECT - MINERAL RESOURCE STATEMENT
A summary of the Mineral Resources at the Tumblegum South Prospect as at 30 June 2020 is
shown in Table 1 and Table 2 below.
The Mineral Resource Estimate for the Tumblegum South Prospect was completed by
independent resource consultant, Kamili Geology Pty Ltd, following the completion of drilling
by the Company in October 2019.
At a 0.3g/t Au cut-off the total Inferred Mineral Resource is estimated at 600,000 tonnes at
2.2 g/t Au, 0.2% Cu and 1.5 g/t Ag for 42,500 oz Au (See Table 1)5.
Table 1: Tumblegum South - Total Inferred Mineral Resource Inventory by lode (0.3g/t Au cut-off)
Lode
Min1
Min2
Min3
Min4
Min5
TOTAL
Tonnes
194,608
220,764
160,046
30,417
7,212
615,880
Au ppm
2.61
2.74
1.28
1.46
1.53
2.24
Au Oz
16,560
19,440
6,590
1,420
340
44,350
Cu ppm
2879
2084
1000
413
611
1966
Ag ppm
2.29
1.58
0.72
0.39
0.42
1.52
At a 1.0g/t Au cut-off the total Inferred Mineral Resource is estimated at 500,000 tonnes at
2.6 g/t Au, 0.2% Cu and 1.6 g/t Ag for 41,700 oz Au (See Table 2).
Table 2: Tumblegum South - Total Inferred Mineral Resource Inventory by lode (1.0g/t Au cut-off)
Lode
Min1
Min2
Min3
Min4
Min5
TOTAL
Tonnes
169,107
196,565
99,470
30,241
3,956
499,338
Au ppm
2.89
2.99
1.68
1.46
2.39
2.60
Au Oz
15,710
18,900
5,370
1,420
300
41,700
Cu ppm
3095
2211
1215
414
687
2191
Ag ppm
2.43
1.68
0.83
0.39
0.38
1.67
5 Note the final stated Inferred Mineral Resource is rounded, to reflect the uncertainty inherent in Inferred Mineral
Resources
59
Bryah Resources Ltd 2020 Annual Report
MATERIAL CHANGES AND RESOURCE STATEMENT COMPARISON
This is the first year that a mineral resource estimation has be calculated for the Tumblegum
South Prospect. The Company is not aware of any new information or data that materially
affects the information and all material assumptions and technical parameters underpinning
the estimate continue to apply and have not materially changed.
GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
The Company has ensured that the Mineral Resources quoted are subject to good governance
arrangements and internal controls. The Mineral Resource reported has been generated by
independent consultants where appropriate who are experienced in best practices in
modelling and estimation methods. The consultants have also undertaken reviews of the
quality and suitability of the underlying information used to determine the resource estimate.
In addition, management carries out regular reviews and audits of internal processes and
external contractors that have been engaged by the Company.
Competent Person Statement — Mineral Resource Estimation
The information in this report that relates to Mineral Resources is based on and fairly
represents information compiled by Mr Ashley Jones, Consultant with Kamili Geology Pty Ltd.
Mr Jones is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr
Jones has sufficient experience of relevance to the styles of mineralisation and types of
deposits under consideration, and to the activities undertaken to qualify as Competent
Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC)
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mr Jones consent to the inclusion in this report of the matters based on their information in
the form and context in which they appear.
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information
compiled by Mr Tony Standish, who is a Member of the Australian Institute of Geoscientists.
Mr Standish is a consultant to Bryah Resources Limited (“the Company”). Mr Standish has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Standish consents to the inclusion in this report of
the matters based on his information in the form and context in which it appears.
60
Bryah Resources Ltd 2020 Annual Report
SCHEDULE OF INTERESTS IN MINING TENEMENTS
AS AT 30 SEPTEMBER 2020
PROJECT
TENEMENT
AREA
EQUITY
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Bryah Basin
Sub-total
E52/3014
E52/3236
E52/3237
E52/3238
E52/3240
E52/3349
E52/3401
E52/3453
E52/3454
E52/3508
P52/1527
E52/3705
M52/806
M52/1068
E52/1557
E52/1860
E52/3700
E52/3703
E52/3726
E52/3739
E52/3796
E52/3725
E52/3865
1 block
44 blocks
14 blocks
12 blocks
9 blocks
70 blocks
43 blocks
40 blocks
8 blocks
4 blocks
156.47 ha
1 block
316.15 ha
1,819.97 ha
16 blocks
35 blocks
24 blocks
11 blocks
3 blocks
38 blocks
37 blocks
10 blocks
30 blocks
100%
100%1
100%1
100%
100%1
100%1
100%1
100%
100%
100%1
100%
100%
100%1
0%1 2
0%1 2
0%1 2
100%
100%
100%
100%
100%
100%
100%
ANNUAL
EXPENDITURE
COMMITMENT
$15,000
$66,000
$30,000
$30,000
$50,000
$105,000
$64,500
$60,000
$30,000
$15,000
$6,280
$10,000
$31,700
N/A
N/A
N/A
$24,000
$20,000
$15,000
$38,000
$37,000
Application
Application
$647,480
E51/843
E51/1396
E51/1534
E51/1576
E51/1685
E51/1694
E51/1695
P51/2634
P51/2566
P51/2567
M51/878
MLA51/888
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Gabanintha
Sub-total
TOTAL
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Application
Nil
$647,480
Note 1: OM (Manganese) Limited holds a 20% Joint Venture Interest in the Manganese Mineral Rights in respect to M52/806,
M52/1068, E52/1557, E52/1860, E52/3349, E52/3236 (portion), E52/3237, E52/3240, E52/3401 and E52/3508
18 blocks
1 block
8 blocks
10 blocks
15 blocks
14 blocks
2 blocks
171.85 ha
147.66 ha
111.66 ha
3,563.0 ha
70 ha
100%3
100%3
100%3
100%3
100%3
100%3
100%3
100%3
100%3
100%3
100%3
100%3
Note 2: Bryah holds the mineral rights to prospect, explore, mine and develop manganese ore (Manganese Mineral Rights)
only. Annual expenditure commitment obligations remain with the primary tenement holder.
Note 3: Mineral Rights for all minerals except V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore only.
Australian Vanadium Limited retains 100% rights in V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore on the Gabanintha Project.
Annual expenditure commitment obligations remain with Australian Vanadium Limited.
61
Bryah Resources Ltd 2020 Annual Report
ASX Additional Information
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report
is set out below. The information is current as at 17 September 2020.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Range
No of Holders
Number of shares
Listed Shares,
Fully Paid Ordinary
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
Unmarketable Parcels
24
20
85
273
181
583
3,662
66,614
782,121
12,250,148
118,771,295
131,873,840
Listed 30 cent Options
expiring 31 October 2020
No of Holders Number of options
0
82
29
105
31
247
0
403,250
245,000
3,107,250
11,994,500
15,750,000
There were 67 holders of less than a marketable parcel of ordinary shares.
Restricted Securities
The Company has no restricted securities on issue as at 17 September 2020.
Unquoted Securities
The Company has the following unquoted securities on issue as at 17 September 2020:
- 3,500,000 options exercisable at $0.09 on or before 30 September 2022 issued to Zenix Nominees
Pty Ltd.
Substantial Shareholders
The Company has the following substantial holders as at 17 September 2020:
Shareholder
Australian Vanadium Limited
Woolmaton Pty Ltd
Corporate Governance
Number of
shares
11,250,000
6,636,500
The company’s corporate governance statement is located on its website at: bryah.com.au
Use of Funds
Between the date of listing on ASX and the date of this report the Company has used the cash and
assets in a form readily convertible to cash that it had at the time of admission in a way consistent
with its business objectives and as set out in the Replacement Prospectus dated 3 May 2017.
62
Bryah Resources Ltd 2020 Annual Report
Top 20 Shareholders
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Name
Australian Vanadium Limited
Jalein Pty Ltd
Pet FC Pty Ltd
Woolmaton Pty Ltd
Sunemar Pty Ltd
Faustus Nominees Pty Ltd
Culloden Investments Pty Ltd
Johannes Jurgens Potgieter
Pinny Pty Ltd
Australian Vanadium Limited
Simon William Tritton
Vukelic 2050 Pty Ltd
Citicorp Nominees Pty Limited
AI Superannuation Pty Ltd
Xiaodan Wu
Grant William Peter Reynolds
Woolmaton Pty Ltd
Graeme John Medhurst
Sunemar Pty Ltd
Guy Leon Banducci
Total
Total Remaining Holders Balance
Top 20 Listed Optionholders
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Name
Australian Vanadium Limited
Faustus Nominees Pty Ltd
Thornbush Corporation Limited
Argonaut Investments Pty Limited
Pauline Ann Vukelic
Gregory Steven Jakab
Paul Vukelic Pty Ltd
Sunarp Pty Ltd
Noel David McEvoy
Ladyman Super Pty Ltd
Peter Tsimilas
Pet FC Pty Ltd
Leon John Cobban
Penguinesque Projects Pty Ltd
Greg Dunstan
Pet FC Pty Ltd
Alison Elizabeth Anne McEvoy
Mark Andrew Tkocz
Belvedere Australia Pty Ltd
Niltac Super Pty Ltd
Total
Total Remaining Holders Balance
63
Number of
Shares
8,750,000
5,083,334
5,000,000
5,000,000
4,800,000
4,290,000
3,000,000
2,950,400
2,615,385
2,500,000
2,100,000
2,000,000
1,969,367
1,916,000
1,853,901
1,800,000
1,636,500
1,500,000
1,500,000
1,280,000
61,544,887
70,328,953
Number of
Listed
Options
1,250,000
1,087,500
1,025,000
1,000,000
1,000,000
800,000
500,000
460,000
446,000
437,500
437,500
312,500
290,000
262,500
260,000
250,000
201,000
200,000
187,500
162,500
10,569,500
5,180,500
% of
Shares
6.64
3.85
3.79
3.79
3.64
3.25
2.27
2.24
1.98
1.90
1.59
1.52
1.49
1.45
1.41
1.36
1.24
1.14
1.14
0.97
46.67%
53.33%
% of
Listed
Options
7.94
6.90
6.51
6.35
6.35
5.08
3.17
2.92
2.83
2.78
2.78
1.98
1.84
1.67
1.65
1.59
1.28
1.27
1.19
1.03
67.11%
32.89%