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Oklo Resources Limited2021 Annual Report
Calidus Resources Limited
ABN: 98 006 640 553 ASX: CAI
and Controlled Entities
Annual Report for the Financial Year
ending 30 June 2021
…a pivotal year for your Company, marked by the
transformation from early-stage project developer
to its new status as Australia’s next gold producer.
Corporate Directory
Chairmans Letter
Company Highlights FY2021
Review of Operations
Sustainability Report
Annual Mineral Resource & Ore Reserve Report
Tenement Schedule
Directors’ Report
Remuneration Report (audited)
Contents
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Director’s Declaration
Independent Auditor’s Report
Additional ASX Information
49
51
52
53
54
55
81
83
87
3
5
6
7
20
29
32
35
41
Annual Report for the Financial Year ending 30 June 2021 | 1
With stage 1 development well underway
and a clear pathway to plus 130,000 oz
p/a production, Calidus is well on track
to be Australia’s next gold producer
2 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Corporate Directory
Directors
David Reeves
Managing Director
Mark Connelly
Non-Executive Chairman
Keith Coughlan
Non-Executive Director
John Ciganek
Non-Executive Director
Company Secretary
Julia Beckett
Management
Richard Hill
Chief Financial Officer
Paul Brennon
Project Development
Don Russell
General Manager
Warrawoona
Registered Office
& Principal Place of
Business
Suite 12, 11 Ventnor Avenue
West Perth WA 6005
Email: info@calidus.com.au
Website: calidus.com.au
Auditor
Moore Australia Audit (WA)
Level 15, Exchange Tower
2 The Esplanade, Perth WA 6000
Website: moore-australia.com.au
Share Registry
Automic
GPO Box 5193, Sydney NSW 2001
Tel: 1300 288 664 (Within Australia)
+61 2 9698 5414 (Overseas)
Email: hello@automicgroup.com.au
Securities Exchange
Listing
The Company’s shares are listed on
the Australian Securities Exchange
(ASX).
ASX Code
CAI – Ordinary Shares
2 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 3
In working to achieve our project
development and exploration objectives, we
prioritise our commitments to sustainability.
4 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Chairman’s Letter
Dear Shareholder
I am delighted to report to you on what has been
a pivotal year for your Company, marked by the
transformation from early-stage project developer to
its new status as Australia’s next gold producer.
At the time of writing, construction of Calidus’
Warrawoona Gold Project (Warrawoona) in WA’s
Pilbara was proceeding in line with our timetable and
budget. As a result, we are on track to meet our goal
of being in production in the June quarter of 2022.
As the photographs in this report show, the
progress on site has been remarkable. Mining is
well underway, with ore now accumulating on the
ROM pad and the primary crusher is installed. As
a shareholder, I’m sure you will agree that it is a
fantastic sight (and site) to behold.
In parallel with the construction activity, Calidus aims
to grow the inventory and mine life at Warrawoona.
We believe this two-pronged strategy will maximise
the creation of shareholder value, particularly as it
will enable us to leverage the infrastructure we will
have in place.
As part of this approach, we started a definitive
feasibility study during the year on our Blue Spec
gold deposit, which is within trucking distance of
Warrawoona and has a Resource of 219,000oz at
16.3 g/t. Blue Spec has the potential to increase
Warrawoona’s production rate to as much as
139,000oz a year compared with the 105,000oz a
year contained in the Warrawoona Feasibility Study.
The Blue Spec study is scheduled for completion in
the June quarter of next year, in line with first gold
production at Warrawoona.
We are also pursuing an aggressive exploration
campaign at and around Warrawoona to help grow the
inventory. The main Klondyke deposit remains open
down dip and along strike and will be drilled further as
mining opens up the area. In addition, regionally more
than 20 priority targets have been identified.
During the year, Calidus appointed John Ciganek as
an additional Independent Non-Executive Director.
Mr Ciganek holds the position of Chairman of the
Audit and Risk Committee. He has more than 30
years’ experience in the mining sector across a range
of roles including mining engineering, stockbroking,
executive management, and corporate finance. Mr
Ciganek’s technical and financial skill sets has been
of great assistance as the Company ramped up
construction at Warrawoona.
In working to achieve our project development
and exploration objectives, we prioritise our
commitments to sustainability. Calidus views this as
a core pillar of our operating culture, meaning it is
embedded in everything we do rather than seen as a
bolt-on requirement.
This Annual Report includes a sustainability summary
highlighting the Company’s commitment to delivering
on its environmental and social responsibilities
programs. Our Company is committed to local and
regional communities, and our other stakeholders.
With construction at Warrawoona more than 60 per
cent complete at the time of writing, the countdown
to the start of production and cashflow is underway.
On behalf of the Board, I would like to extend my
thanks to our staff and contractors for the skill,
initiative and sheer hard work which has enabled us
to reach this point. Your commitment to Warrawoona
is greatly appreciated. I also thank our shareholders
for their support over the past year and I look
forward to reporting to you as we move towards first
production at Warrawoona.
Mark Connelly
Non-Executive Chairman
4 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 5
Company Highlights FY2021
Transformational year with commencement of construction
of Stage 1 of the Warrawoona Gold Project.
Large
Resource Base
1.7m oz
…
Debt Secured
with Macquarie Bank
$110m
$25M drawn
$85M undrawn
Ore Reserve &
Mineral Inventory
0.88m oz
…
Total Funds
Available
$112m
…
Development
Cost Remaining
to Complete Stage 1
$78m
…
Feasibility &
Integration Studies
Demonstrate
Steady State Production
130,000 oz
per annum
AISC <$1,300/oz
Cash on Hand
$27m
…
Construction
Underway
at Warrawoona
41%
Complete
as at
30 June 2021
6 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Review of Operations
Warrawoona Gold Project Overview
Calidus Resources Limited (ASX:CAI) (Calidus or
the Company) is fully funded and has commenced
development of the 1.7Moz Warrawoona Gold Project
(Warrawoona or the Project). Warrawoona comprises
approximately 700 km2 of prospective tenements and
is located in the Pilbara region of Western Australia
where multiple gold development and exploration
success stories are occurring.
Calidus’ landholding also consists of several regional
tenements, within a 75km radius of Warrawoona,
including:
ā Blue Spec Project (100% owned) – consists of an
existing Resource of 415kt at 16.3g/t Au (219koz
Au) and remains open down dip, together with the
recent farm-in agreements on promising tenements
E46/1026 and E46/1035 (both along strike from
Blue Spec). The Blue Spec Integration Scoping
Study highlighted that production could increase to
a steady state of 130,000 ounces per annum should
it be mined and processed at Warrawoona; and
ā Otways Prospect (earning 70%) – during
November 2020, results from the first
reconnaissance drilling program returned broad
zones of copper mineralisation.
Figure 1: Location of Calidus exploration projects
Annual Report for the Financial Year ending 30 June 2021 | 7 6 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Warrawoona Project Feasibility Study and Blue Spec Integration
During the year, Calidus released a Feasibility Study
on a Stage 1 development that confirmed that
Warrawoona is set to generate strong cashflow,
outstanding financial returns and a rapid payback from
a 90,000 oz pa operation centred on the Klondyke
deposit (Stage 1).1
Subsequently Calidus acquired full ownership of the
high-grade Blue Spec Project2 located within trucking
distance (~70km) of Warrawoona and released a
Stage 2 study relating to the integration of Blue Spec
into the mine life of Warrawoona showing strong
potential operational and capital cost synergies
between Blue Spec and Warrawoona (Stage 2). Blue
Spec will be treated through the sulphide circuit at
Warrawoona. The study showed that the integration
of Blue Spec increases cashflow significantly with
production to a peak of 139,000ozpa for little
additional capital expenditure3.
Development of Blue Spec and the sulphide circuit are
to be funded from operational cashflow. Completion of
the Feasibility Study for Blue Spec and updated Resource
and Reserve estimate is planned for H1 CY2022.
Key Project Metrics
Table 1: Project Metrics
Average Production pa
All-in Sustaining Cost (AISC)4
Peak Production pa
Post Tax Project Cashflow5
Post Tax NPV8
Post Tax IRR
Initial Mine Life
Life Of Mine Production
Table 2: Processing Yearly Profile (Stage 2)
Units
oz
A$/oz
oz
A$M
A$M
% p.a.
Years
oz
STAGE 1
90,000
1,290
105,000
380
245
57%
8 years
658,277
STAGE 2
110,000
1,292
139,000
472
302
65%
8 years
807,081
Key Financials
Units
Total
Ore Processed
Processing Grade
Ounces
Recovered
kt
g/t
oz
Pre-
Prod
0
0.0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
2,327
2,430
2,259
2,163
2,184
2,150
2,193
2,102
1.3
1.4
1.6
2.0
2.0
2.1
1.2
0.4
18,144
1.5
807,081
0
90,586 96,222 107,750 134,514 131,990 138,700 78,829 24,835
Table 3: Cashflow and AISC Yearly Profile (Stage 2)
Key Financials
Units
Total
Pre-
Prod
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Project Cashflow
(Pre- tax)
Project Cashflow
(Post-tax)
All-In Sustaining
Cost (AISC)
A$M
662
(120)
A$M
472
(120)
95
95
68
68
69
41
114
112
199
109
67
88
168
53
15
6
A$/oz
1,292
0
1,177
1,311
1,452
1,484
1,504
921
971
1,762
1. Refer ASX announcement dated 29 September 2020 entitled ‘Feasibility Paves the Way for Construction of Warrawoona”
2. Refer ASX Announcement dated 2 October 2020 entitled “Replacement Blue Spec Acquisition Announcement”
3. Refer ASX Announcement dated 23 March 2021 entitled “Blue Spec Project set to significantly increase production”
4. All in Sustaining Costs includes mining, processing, site administration, royalty costs and sustaining capital. It does not include
exploration, corporate costs and non-sustaining capital.
5. Assumes a gold spot price of A$2,355 per ounce.
Review of Operations 8 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Figure 2: Annual Gold Production - Ounces Produced
150,000
120,000
90,000
60,000
30,000
0
Pre-Prod
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Stage 1 Gold Production
Stage 2 Gold Production
Warrawoona is set to
generate strong cashflow,
outstanding financial
returns and a rapid payback
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
2
p
e
S
0
2
t
c
O
0
2
v
o
N
0
2
c
e
D
1
2
n
a
J
1
2
b
e
F
1
2
r
a
M
1
2
r
p
A
1
2
y
a
M
1
2
n
u
J
Review of OperationsAnnual Report for the Financial Year ending 30 June 2021 | 9 Review of Operations 8 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Progress of Warrawoona Gold Project Stage 1 Development
Calidus received all required permits during the year to
commence development of Warrawoona. Early works
commenced in October 2020 with the construction
of the access road, 240 room village, water supply and
communications backbone.
The early works facilitated the mobilisation of GR
Engineering to commence process plant construction
in March 2021 and Macmahon Holdings to mobilise
equipment to undertake bulk earthworks, tails dam
construction and initial mining.
As at 30 June 2021, the Project was 41% complete
with no lost time injuries.
Construction remains on schedule and on budget
with first gold expected in the June quarter 2022. Key
points in relation to project development progress to-
date include:
Key Contracts Awarded
ā Fixed Price EPC for construction of the process
plant and associated infrastructure awarded to
GR Engineering
ā Minor works agreement for earthmoving activities
awarded to Macmahon Holdings
ā Letter of Intent for Open Pit Mining Contract
awarded to Macmahon Holdings
ā Power Purchase Agreement awarded to Zenith
Energy Pty Limited (Zenith). Zenith to provide
8MW of power demand to Warrawoona via a
10.74MW installed capacity high efficiency LNG
fueled reciprocating generation facility together
with an 8MW installed capacity backup diesel
generation facility
ā Trucked LNG Contract awarded to Woodside EDL
Joint Venture providing LNG to the power station
reducing the carbon footprint of operations and
cost of power generation
ā Catering and cleaning services awarded to Assetlink
Non-Processing Infrastructure Completed
ā 240 room accommodation village completed with
occupancy permit received
ā 200Mb data link operational
ā Construction water supply installed
ā Access road complete
ā Tailings Dam foundation preparations complete
Process Plant Progress
ā All major mechanical equipment awarded
ā SAG mill and crusher delivered to site ahead of
schedule
ā Significant progress on tank construction
ā Mill foundations completed
Key Personnel Employed for Construction
and Operations
ā General Manager Warrawoona
Don Russell
ā Construction Manager
Ron Epding
ā Mining Manager
Dean Vallve
ā Geology Manager
Ben Playford
ā Environmental Superintendent
Tim Clarke
ā Mining Superintendent
Tim Funston
Review of Operations 10 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Pioneer Mining
ROM Pad
CIL Tanks
Raw Water Pond
Crusher
SAG Mill
As at 30 June 2021, the
Project was 41% complete
with no lost time injuries.
Review of OperationsAnnual Report for the Financial Year ending 30 June 2021 | 11 Review of Operations 10 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Exploration
Calidus controls or is joint ventured into approximately 700km2 of tenure in the region surrounding Warrawoona
which encompasses almost the entire Warrawoona greenstone belt. Calidus has a two-pronged approach to
exploration with near mine and regional exploration zones.
Near Mine Exploration
The current Mineral Resources of the Company are defined in 5 deposits with Klondyke and Blue Spec hosting
the majority of Resources. Both of these deposits are open at depth and have large potential to extend mine
life significantly.
Klondyke Deposit
The Klondyke Resource is currently defined to an average depth of 300m below surface and has underground
designs planned to its depth. Two drill holes were drilled during the year intersecting the deposit 250m below
the current resource with both returning ore grade intercepts6. Further drilling to extend Klondyke will occur
from an exploration decline planned at Klondyke once more knowledge on shoot geometry is gained from
open pit operations.
Results from this drilling included:
ā 1m @ 5.12 g/t Au from 638m (20KLDD117A)
ā 1.79 m @ 4.82 g/t Au from 627.79m (20KLDD116A)
ā 1.92m @ 2.84 g/t Au from 589.08m (20KLDD116)
ā 3m @ 1.84 g/t Au from 599m (20KLDD117)
Figure 3: Long section showing the current Klondyke Mineral Resource extents and significant
intercepts from the recent Klondyke Deeps diamond drill hole program.
6 Refer announcement dated 15 February 2021 entitled “Drilling extends mineralisation 250m below Resource”
Review of Operations 12 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Blue Spec Project
Both Blue Spec and Gold Spec remain open at depth and have potential repeats along strike. Former owners of the
project drilled three drill holes up to 100m below Gold Spec produced the following results7:
ā 4.0m @ 35.9 g/t Au from 358m (16BSDH033)
ā 4.0 m @ 35.0 g/t Au from 389m (16BSDH034)
ā 12.0m @ 5.21g/t Au from 405m (16BSDH038)
Additionally at Blue Spec, limited drilling to the east of the main deposit intersected significant intervals of
mineralisation that require further follow up, including:
ā 18.0m @ 4.21 g/t Au from 121m (BSP0264)
ā 11.0m @ 7.53 g/t Au from 149m (BSP0177)
Figure 4: Blue Spec – Gold Spec Long Section
7 Refer announcement dated 23 March 2021 entitled “Blue Spec Project set to significantly increase production”
Review of OperationsAnnual Report for the Financial Year ending 30 June 2021 | 13
Coronation Deposit
During the year, Calidus announced strong drilling results which extend the strike length of the known
mineralisation at its Coronation deposit which is 8km away from Warrawoona8.
The program consisted of 29 RC holes, designed at a nominal spacing of 20m x 20m (along strike and down dip,
were drilled to test the potential to extend the current Mineral Resource along strike to the southeast). Ore-
grade gold mineralisation is present from surface over a strike length now of approximately 800m to a depth of
150m from surface. It remains open at depth and along strike to the southeast where sparse drilling and surface
mapping suggest the mineralised structure continues.
Assays were received for the 29 RC holes, returning ore-grade intercepts along-strike from the current Mineral
Resource of 34koz at 2.19gpt. Results include:
ā 14m @ 3.77 g/t Au from 52m (20CRRC041)
ā 6m @ 2.15 g/t from 30m (20CRRC058)
ā 3m @ 4.00 g/t Au from 54m (20CRRC050)
ā 3m @ 2.91 g/t Au from 36m (20CRRC030)
ā 5m @ 1.59 g/t Au from 22m (20CRRC027)
ā 4m @ 1.85 g/t Au from 2m (20CRRC060)
ā 2m @ 3.08 g/t Au from 76m (20CRRC039)
These new results will form the basis of an updated Mineral Resource estimate which should upgrade confidence
in the current Mineral Resource from Inferred to Indicated.
Figure 5: Map and cross section at the Coronation prospect
showing significant intercepts from the recent drilling program.
8 Refer announcement dated 3 December 2020 entitled “Drilling Extends known mineralisation at Coronation deposit”
Review of Operations 14 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Otways Project (Copper and Gold targets)
Calidus entered into an agreement with Rugby Mining
Ltd to earn up to 70% interest in the Otways Project in
an underexplored region ~50km from Warrawoona10.
Calidus subsequently announced results from the first
reconnaissance drilling program at Otways. Five RC
holes and one diamond hole were drilled in July-
August 2020 to test the validity of results from historic
percussion drilling. Assays returned broad zones of
shallow copper mineralisation and confirmed historic
intercepts11.
The best intercepts included:
ā 43m @ 0.70% Cu (incl 10m @ 1.64%) from 0-43m in
20OTRC002
ā 11m @ 0.47% Cu from 92-103m in 20OTRC004
ā 11.25m @ 0.42% Cu from 71-82.25m in 20OTDD001
ā 53m @ 0.17% Cu from 0-53m in 20OTRC001
A limited drill program is planned for the coming year
to follow up on these initial promising results.
Regional Exploration
Following delivery of the updated Pre-Feasibility Study
for Warrawoona, grassroots exploration began in
earnest on the Company’s tenement package on the
Warrawoona and Otways projects. During the last year,
Calidus purchased the Blue Spec mine and announced
farm-ins on two tenements along strike from Blue
Spec (collectively referred to as the Blue Spec Project).
High-Priority Targets Across Warrawoona
During the year Calidus announced that a review by
Southern Geoscience Consultants of the Company’s
regional airborne magnetic and radiometric data had
identified 22 high-priority exploration targets across
Warrawoona9. Regional hydrothermal fluid pathways
were identified using potassium signatures in the
radiometric data, and possible traps for gold-bearing
fluids were identified from structural complexity in the
magnetic data along the fluid pathways.
In late 2020, fieldwork started on validating the
geophysical interpretation by identifying the key
characteristics of the hydrothermal fluid pathways
and documenting the nature of structural traps
that may be important for gold deposition.
These observations are being integrated with soil
geochemistry over the project area collected in
previous years. Fieldwork from these initial target
areas will assist in evaluating the remaining targets
more quickly and cost effectively.
Figure 6: Planned RC drilling program at Otways
9. Refer announcement dated 14 October 2020 entitled “Calidus identifies 22 high-priority regional targets”
10 Refer announcement dated 13 July 2020 entitled “Drilling to commence at the Otways Gold-Copper Project”
11 Refer announcement dated 4 November 2020 entitled “Drilling confirms historic shallow intercepts at Otways”
Review of OperationsAnnual Report for the Financial Year ending 30 June 2021 | 15
The Blue Spec mine
not only contains
high-grade gold, but
also antimony, which
is listed as a critical
mineral by the EU,
US and Australia
Review of Operations 16 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Blue Spec Project (High-grade gold and antimony deposits)
The Blue Spec Project comprises two granted Mining
Leases, two granted Exploration Licences, and one
Prospecting Licence under application. Calidus
completed the purchase of the Blue Spec mine from
Novo Resources12 and is in the process of earning into
the two Exploration Licences, E46/1026 and E46/103513.
The project covers more than 8km of strike along the
highly prospective Blue Spec Fault Zone which hosts
the Blue Spec and Gold Spec deposits. The Blue Spec
mine not only contains high-grade gold, but also
antimony, which is listed as a critical mineral by the EU,
US and Australia according to Geoscience Australia.
E46/1026, despite lying along strike to the west of
the Blue Spec mine, has seen no modern exploration;
there are no historic stream sediment samples, soil
samples or drill holes located on the tenement. To
most efficiently and cost effectively narrow down
the search area for gold deposits, a stream sediment
sampling program has been designed across the
tenement. Sampling is currently underway.
Reconnaissance mapping has been conducted over
parts of E46/1026 and E46/1035 to examine the field
expression of zones of apparent Na-mica (paragonite)
alteration around major structures indicated in
airborne hyperspectral data.
Detailed structural mapping has begun around the
Blue Spec pit to better understand the key factors in
localising gold mineralisation along the Blue Spec Fault
Zone. In addition, the exploration team will log and
collect multi-element geochemistry and hyperspectral
data on core from metallurgical and geotechnical
holes drilled at Blue Spec in June-August. These
findings will be important for targeting more
favourable structural zones across the project area and
in determining the best geophysical techniques to be
employed in the search for blind deposits.
12 Refer announcement dated 1 December 2020 entitled “Purchase of 2.5% NSR and initial Blue Spec payment made”
13 Refer announcement dated 4 December 2020 entitled “Warrawoona production hub strategy advances with farm-in” and announcement
dated 3 February 2021 entitled “Calidus consolidates land position in Blue Spec region”
Review of OperationsReview of Operations 16 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 17
Corporate
Fully Funded to Production at the
Warrawoona Gold Project
Project Loan facilities
Calidus executed agreements with Macquarie Bank
Limited (MBL) for project loan facilities totaling $110
million, along with an associated gold hedging facility,
to fund the development of Warrawoona. The facilities
comprise a Senior Secured Loan of $85 Million and a
Mezzanine facility of $25 million. The first $25 million
of funds was drawn down from the mezzanine facility
with $85 million of facilities available at the end of
the year. The first $8 million from the Senior Secured
facility was subsequently drawn in July 2021.
The Company’s hedge book at 30 June 2021 consists
of 125,000 ounces at an average forward price of
A$2,355/oz for delivery from 30 September 2022 to 30
September 2025.
Cash Position
At 30 June 2021, Calidus and its subsidiaries held $27.3
million of cash, $85.0 million in available project loan
facilities and $0.4 million in listed investments.
At year end there was $78 million of Warrawoona
development expenditure forecast to be remaining to
first gold.
Personnel Changes
Appointment of Don Russell as
General Manager Warrawoona
Don Russell was appointed as General Manager for
Warrawoona. Don has extensive operating experience
at gold mines across Australia in a 30-year career and
his skills will be invaluable as the project is developed
and transitions to production.
Appointment of John Ciganek as
Non-Executive Director
In January 2021 the Company appointed Mr John
Ciganek as an additional independent Non-executive
Director and holds the position of Chairman of the
Audit and Risk Committee. John has more than 30
years in the mining sector across a range of roles
including mining engineering, stockbroking, executive
management and corporate finance.
Most recently, John has gained substantial experience
in debt financings including project financings, project
bonds issuances, convertible note offerings, working
capital facilities, hedging facilities, offtaker funding,
and equity raisings through his role as Executive
Director for Burnvoir Corporate Finance.
Resignation of Adam Miethke as
Non-Executive Director
The Company advised on 27 July 2020 that Mr Adam
Miethke had resigned as Non-Executive Director of the
Company. Adam made a valuable contribution to the
Company over a 3 year period where he was intimately
involved in the successful listing and progression of
the Company.
Investor Relations
Due to COVID 19 restrictions and border closures
interstate and international investor meetings and
roadshows were limited to online meeting conferences.
The Company presented (either via live stream video or
in person) at numerous investor conferences including:
ā Diggers and Dealers in Kalgoorlie;
ā Resource Rising Stars at the Gold Coast;
ā RIU Explorers Conference in Fremantle;
ā Australian Energy & Minerals Conference held in
Brisbane;
ā Euroz Conference in Perth;
ā AMEC Investor Briefing in Perth; and
ā Various radio and online interviews and briefings.
Review of Operations 18 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Review of Operations
Annual Report for the Financial Year ending 30 June 2021 | 19
Review of OperationsReview of Operations 18 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Sustainability Report
AT 30 JUNE 2021
Sustainable Development and Production.
Sustainable Development and Production is at the heart of our values at Calidus.
At Calidus, we work with transparency and trust, supporting long-term economic growth and creating
shared value with our stakeholders. We respect the human rights of all people, including our employees, the
communities where we are active, and those working within our supply chains.
We acknowledge the environmental and cultural value of the land in which we operate and mitigate potential
harm as a result of our project and operational activities.
Health and Wellbeing
At Calidus we genuinely care about the health and
wellbeing of our people, including our employees
and contractors and all stakeholders. We believe that
a healthy and engaged workforce is a conduit to
becoming a safe, productive and ultimately successful
and sustainable business.
Calidus is committed to promote the physical and
mental health of our people through initiatives
and support systems, such as employee assistance
programs and the provision of onsite facilities to
support a healthy lifestyle and facilitate positive social
interactions.
The Board and management team at Calidus build
an environment and culture to support the health
and wellbeing of all our employees and contractors
through visible and effective leadership.
Promotion of Health and Wellbeing
On site initiatives completed to date at Warrawoona
to promote Health and Wellbeing of staff and
contractors include:
ā The construction of a fully equipped medical center
and ambulance, to ensure an effective emergency
response resource is available to mitigate possible
harm to our employees and contractors and also
provide assistance to local communities;
ā The construction of wet mess facilities and
recreation room designed to provide an inclusive
communal atmosphere and promote social
activities;
ā The construction of a well-equipped indoor gym
and out-door walking track equipped with solar
powered lighting to promote physical activities and
exercise; and
ā The construction of dry-mess facilities and the
provision of a selection of fresh and healthy food
options to promote healthy nutrition.
Employee Assistance Programs
Calidus and its contractors provide access to
Employee Assistance Programs for all employees
and their families through work-based intervention
programs. These are designed to enhance the
emotional, mental and general psychological
wellbeing of employees and immediate family
members.
The aim of the Employee Assistance Programs are to
provide preventive and proactive interventions for the
early detection, identification and resolution of both
work and personal challenges that may adversely
affect performance and wellbeing.
Covid-19
Calidus recognises its responsibilities towards our
employees, contractors and the broader community
in maintaining a safe and healthy workplace whilst
operating during the Covid-19 pandemic.
In line with government regulations and industry best
practice, we have put in place an infectious disease
management plan and associated procedures and
appropriate equipment to prevent, and if required,
control and contain the spread of Covid-19 at
Warrawoona and protect local communities. Calidus
is investigating initiatives to support the vaccination of
all our employees and contractors at site to minimise
health risks to our immediate community and the
community in which we operate.
20 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Sustainability Report
150,000
120,000
90,000
60,000
Since the
development of Warrawoona
has commenced there have been
30,000
0
Pre-Prod
Year 1
ZERO
recordable injuries
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Stage 1 Gold Production
Stage 2 Gold Production
with 158,508 hours worked
by employees and contractors
to date.
Safety
Safety and health of our people is the most important
of our core values at Calidus.
Safety is embedded in everything we do at Calidus,
and we expect our employees and contractors to
always ensure their own safety and that of their
colleagues. We acknowledge that a risk-based
approach to managing hazards, incorporating regular
reviews and audits of our principal risks and controls is
essential to providing a safe and productive workplace
for our employees and contractors.
We will ensure that all employees and contractors
have the competency and skills required to work
safely and are provided with appropriate tools and
information to enable work to be conducted safely
and productively.
Safety Statistics
Since the development of Warrawoona has commenced
there have been ZERO recordable injuries with 158,508
hours worked by employees and contractors to date.
Figure 7:
Warrawoona Gold Project - Hours Worked per Month
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
2
p
e
S
0
2
t
c
O
0
2
v
o
N
0
2
c
e
D
1
2
n
a
J
1
2
b
e
F
1
2
r
a
M
1
2
r
p
A
1
2
y
a
M
1
2
n
u
J
20 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 21
Environment
Environmental stewardship is embedded in our
operational thinking and Calidus is committed
to continually improve its environmental and
sustainability performance.
At Calidus we recognise the significant fauna and
flora of the Pilbara region. We protect and support
the natural environment in which we operate by
creating effective systems, practices and documented
plans to manage and mitigate environmental impacts
of activities.
Environmental Permits
Calidus applied for, and received, Environmental
Approval for development of Warrawoona from both
the WA State Government Environmental Protection
Agency (EPA) and Federal Government Department of
Agriculture Water and Environment (DAWE). Various
other approvals have been applied for and received
from WA State Government Department of Mining
Industry Regulation and Safety (DMIRS), Department
of Water and Environmental Regulation (DWER)
and Department of Biodiversity, Conservation and
Attractions (DBCA).
Comprehensive Environmental
Base Line Studies
Calidus has undertaken 3 years of comprehensive
environmental base line studies which underpinned
the identification of the environmental aspects of
the region in which operate and the development
of environmental management plans for our
operations and a mine closure. These base line studies
incorporate the following scientific fields:
ā Flora and Vegetation;
ā Terrestrial Fauna;
ā Subterranean Fauna;
ā Short Range Endemic Fauna;
ā Groundwater dependent Ecosystems;
ā Ground water;
ā Surface water;
ā Waste Rock Characterisation;
ā Tailings Characterisation including consideration of
Cyanide Destruction;
ā Climate and Meteorology;
ā Green House Gas; and
ā Noise.
Sustainability Report 22 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Carbon Reduction Strategies
Calidus continues to carefully plan its operations to
incorporate carbon reduction strategies. Strategies
identified to date include:
Contribution to Pilbara Environmental
Offset Fund (PEOF)
Calidus is contributing $600,000 to PEOF to broker
access for offsets on land.
ā Construction of a 2MW double-sided solar farm to
reduce carbon emissions by 8,500t per annum;
ā Locally sourced LNG to substitute diesel usage in
power generation to reduce carbon emissions by
10,500t per annum;
ā The installation of Hydrogen-ready power
generation to further reduce emissions as hydrogen
fuel becomes available in the future; and
ā All flights for personnel to and from site are carbon
offset through contributions to airline carbon
offset schemes.
Cyanide Destruction
Infrastructure installed to enable destruction of cyanide
in tailings prior to discharge from the process plant to
minimise the potential exposures to native wildlife.
Native Wildlife Protection
Calidus took the lead to establish a 32ha conservation
zone initiative for the protection of native wildlife
in our mining area and has implemented extensive
management plans for the monitoring of federal
protected species present within the boundaries of
our tenements.
Water Recycling
The Warrawoona tailings dam is designed to recycle
water used in operations and collect water in cyclonic
events to reduce pressure on local aquifers.
Waste Dumps
Waste dumps are carefully designed to blend in with the
local relief to limit their visual impact at mine closure.
Calidus continues to
carefully plan its operations
to incorporate carbon
reduction strategies
Sustainability ReportSustainability Report 22 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 23
Sustainability Report
Project development has
been modified to ensure
all identified heritage
sites are protected
Community
At Calidus, we acknowledge the traditional custodians
of the land in which we operate, and recognise the
strength, resilience and capacity of the First People of
this land.
We recognise that our long-term success depends
on our ability to build relationships with business
partners, host communities and other stakeholders
and maintain a social licence to operate. We
engage regularly, openly and honestly with our host
communities and stakeholders, and take their views
and concerns into account in our decision-making.
We commit to maintaining community engagement,
seeking to provide local employment opportunities
and engaging local businesses, seeking opportunities
to invest in local infrastructure and to support the
sustainable development of our host communities and
recognise the value they add to our operations.
Upgrading Local Infrastructure
A number of initiatives have been undertaken to
upgrade local infrastructure including:
ā Contribution to the upgrade of the Marble Bar
airstrip in collaboration with the Shire of East
Pilbara; and
ā Upgrade and ongoing maintenance of the Corunna
Downs Rd, our key travel route.
Support Local Business and
Community Events
A number of initiatives have been undertaken to
support local business and community events
including:
ā Prioritisation of local contractors and employment
with 2 contracts awarded to Marble Bar-based
companies; and
ā Active participation and sponsorship of key
community events.
24 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Sustainability Report
Sponsorships & Opportunities
for Local Employment
A number of initiatives have been undertaken to
provide sponsorships and opportunities for local
employment including:
ā Indigenous Arts Program at Marble Bar and
Warralong schools; and
ā Establish apprenticeships and other opportunities
for local indigenous people.
Extensive Heritage Surveys
Extensive heritage surveys have been completed in
collaboration with the local traditional custodians. Sites
of importance were identified, mapped and demarcated.
As a direct result of these surveys, the project
development has been modified to ensure all
identified heritage sites are protected from any
current and future impact during the construction and
operation of the project.
24 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 25
Diversity and Inclusion
Calidus is dedicated to growing an inclusive and
diverse workforce, aligned with the Company’s
core values, where every employee is treated fairly,
feels respected and where they can contribute to
our success and realise their full potential. A diverse
and inclusive workforce provides new perspectives,
thinking and constructive challenges, fostering
innovation and creativity.
Diversity refers to all characteristics that make
individuals different from each other. It includes
age, religious beliefs, cultural diversity, nationality,
ethnicity, gender or gender identity, sexual orientation,
marital or family status, disabilities, socio-economic
background, perspectives and experience, or any other
area of potential difference.
Inclusion refers to our diverse range of people feeling
welcomed, respected and valued to fully participate,
having access to opportunities and resources, and be
able to contribute their perspectives and talents to
drive the long-term sustainable business of Calidus.
Sustainability Report 26 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Building a Diverse and
Inclusive Workplace
The Board has established a Diversity
Policy which provides a framework for the
Company to achieve diversity objectives.
A diverse and inclusive
workforce provides new
perspectives, thinking and
constructive challenges
Sustainability ReportSustainability Report 26 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 27
Corporate Governance
Effective corporate governance is critical to the
long-term success of Calidus. The board and all
levels of management are committed to upholding
a strong corporate governance framework, policies
and procedures of the highest standard, to support a
culture that values ethical behaviour and the conduct
of business with integrity and respect.
The Board oversees Calidus’ sustainability objectives
and are accountable for a positive corporate culture,
the achievement of high governance standards
and ensuring compliance with the legislative and
regulatory framework in which we operate.
Corporate Governance Framework
The Board is responsible for establishing the
Company’s Corporate Governance Framework and
has referred to the 4th Edition of the ASX Corporate
Governance Councils’ Corporate Governance
Principles and Recommendations. The Corporate
Governance Statement discloses the extent to which
the Company follows the recommendations.
The Board's Audit and Risk Committee oversees
the internal financial control systems and risk
management systems and assessments and makes
recommendations to the Board. In addition, the
Board's Remuneration and Nomination Committee
has oversight over the Company’s remuneration
framework to motivate the achievement of key
performance criteria and appropriate behaviours that
align with the Calidus values.
Transparent Communication
Being transparent in relation to governance and risk is
fundamental to building and maintaining stakeholder
trust and investor confidence and underpins the
substance of our disclosures.
The Board is responsible for establishing and ensuring
compliance with the Company’s Continuous
Disclosure Policy, Securities Trading Policy and
Whistle-blower Policy.
Ethical Business Practice
Calidus is committed to upholding lawful and ethical
practices in our dealings with suppliers, stakeholders
and local communities.
The Board establishes and monitors compliance with
Calidus' values, Code of Conduct, and other
associated policies including an Anti-Bribery and
Anti-Corruption Policy. The Board's objective is to
ensure that all Directors, management and
employees are accountable, act ethically and with
integrity, in the best interests of our shareholders, in
compliance with all laws and Company policies, and
in alignment with community expectations.
A copy of the Corporate Governance Statement,
Corporate Governance Policies and charters are
available on the Company website:
calidus.com.au/about/corporate-governance/
Sustainability Report 28 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Annual Mineral Resource
& Ore Reserve Report
At 30 June 2021
In accordance with ASX Listing Rule 5.21, Calidus reviews and reports its Mineral Resources and Ore Reserves14 at
least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year
balance date. If there are any material changes to its Mineral Resources or Ore Reserves over the course of the
year, the Company promptly reports these changes.
Mineral Resources
The Mineral Resources for Calidus has increased,
from 1.495Moz as reported on 30 June 2020 to
1.723Moz at 30 June 2021, an increase of 228koz.
The key changes involve the extension along-
strike and increased geological confidence of the
Coronation Mineral Resource as well as the inclusion
of the Blue Spec Project.
Blue Spec Project Mineral Resources has been
reported using an Ordinary Kriged model utilising
block sizes suited to the narrow nature of the
mineralisation and selective mining operation
envisaged, with final block dimensions of 10m x 0.4m
x 4m (X,Y,Z) with sub-blocks of 2.5m x 0.2m x2m.
The Blue Spec model sits below the existing mine
development and does not encompass any remnant
mineralisation, whereas the Gold Spec model flags and
excludes any depleted Mineral Resources.
The Coronation Mineral Resource has been increased
by 9Koz to 43Koz through drilling completed in 2020.
Along-strike from the current Mineral Resource at
Coronation, drilling has confirmed an extension to
the mineralisation. Ore-grade gold mineralisation
is present from surface over a strike length now of
approximately 800m to a depth of 150m from surface.
It remains open at depth and along strike to the
southeast. The updated model utilises larger parent
cells with dimensions of 20m x 5m x 20m (X,Y,Z) and
smaller sub-cells of 2.5m x 0.625m x 2.5m (X,Y,Z) than
the previous model to provide greater definition with
the narrow ore zones.
The Mineral Resource has been classified in the
Measured, Indicated and Inferred categories, in
accordance with the 2012 Australasian Code for
Reporting of Mineral Resources and Ore Reserves
(JORC Code). A range of criteria has been considered
in determining this classification including geological
continuity, data quality, drill hole spacing, modelling
technique, estimation properties including search
strategy, number of informing data and average
distance of data from blocks.
The total Mineral Resource Estimate is shown in
Table 4 below.
Table 4: Mineral Resources as at 30 June 2021 (inclusive of Reserves; rounded to nearest 100,000t; 0.01g/t; 1,000oz)
Deposit
Klondyke Open Pit
including
Klondyke UG
including
Copenhagen
Coronation
Fieldings Gully
Blue Spec Project
Blue Spec
Gold Spec
Cut-
Off
(g/t)
0.3
0.5
1.5
2.0
0.5
0.5
0.5
3.0
3.0
Measured
Indicated
Inferred
Total
Mt
2.3
1.6
Au (g/t) KOz
72
0.98
1.21
64
Mt
29.0
20.3
1.0
0.7
0.2
0.3
0.2
0.1
0.1
Au (g/t) KOz
844
0.90
733
89
72
34
16
106
79
27
1.12
2.87
3.36
5.58
1.80
21.7
29.1
12.4
1.10
Mt
8.3
5.0
1.8
1.2
0.1
0.5
0.3
0.3
0.2
0.0
Au (g/t) KOz
217
0.81
1.09
3.31
4.08
2.65
2.19
1.87
13.3
12.2
21.6
1.60
176
162
130
9
34
20
113
92
21
555
Mt
39.6
27.0
2.7
1.9
0.3
0.5
0.6
0.4
0.3
0.10
44.1
Au (g/t) KOz
1,133
0.89
1.12
2.83
3.33
4.54
2.19
1.84
16.3
16.70
15.2
1.21
973
250
202
43
34
36
219
171
48
1,714
Total
2.3
0.98
72
30.6
1,088
11.3
14 This report should be read in conjunction with the information required by ASX Listing Rule 5.9.1 and the JORC Section contained in
the ASX announcement dated 29 June 2020 entitled ‘Updated PFS Delivers Increased Reserves and Robust Financials”
Annual Report for the Financial Year ending 30 June 2021 | 29 Sustainability Report28 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Ore Reserves
The Ore Reserve for the Klondyke open pit, St George and Copenhagen open pits remain unchanged from those
reported on 30 June 2020. Entech Pty. Ltd. completed an update to the Underground Ore Reserves as part of the
Warrawoona Project Definitive Feasibility Study released to the ASX in September 2020. Ore Reserves are shown
in Table 5 below.
Table 5: Ore Reserves as at 30 June 2021 (rounded to nearest 1,000t; 0.1g/t; 1,000oz)
Cut-Off
Proven
Probable
Deposit
(g/t)
Mt
Klondyke Open Pit
0.33-0.36
2.1
Au
(g/t)
1.0
koz
66
Klondyke Underground
1.2
St George Open Pit
0.36-0.39
Copenhagen Open Pit
1.88
Mt
10.0
1.9
0.2
0.1
Total
2.1
1.0
66
12.3
Au
(g/t)
1.0
2.1
1.2
5.5
1.2
koz
335
120
9
17
Mt
12.1
1.9
0.2
0.1
481
14.3
Total
Au
(g/t)
1.0
2.1
1.2
5.5
1.2
koz
401
120
9
17
547
Governance Arrangements and Internal Controls
Calidus has ensured that the Mineral Resources
and Ore Reserves quoted are subject to good
governance arrangements and internal controls. The
Mineral Resources and Ore Reserves reported have
been generated by internal and external Company
geologists, who are experienced in best practice in
modelling and estimation methods.
The competent person has also undertaken reviews of
the quality and suitability of the underlying information
used to generate the resource estimation. In addition,
Calidus’ management carry out regular reviews and
audits of internal processes and external contractors
that have been engaged by the Company.
Competent Persons Statement
The information in this announcement that relates to
exploration targets and exploration results is based on
and fairly represents information compiled by Mr Steve
Sheppard a competent person who is a member of the
AusIMM. Mr Steve Sheppard is employed by Calidus
Resources Limited. Steve has sufficient experience
that is relevant to the style of mineralisation and type
of deposits under consideration and to the activity
being undertaken to qualify as a Competent Person as
defined in the 2012 edition of the “Australasian Code
of Reporting of Exploration Results, Mineral Resources
and Ore Reserves”. Mr Steve Sheppard consents to the
inclusion in this announcement of the matters based on
his work in the form and context in which it appears.
The information in this report that relates to Klondyke
Underground Mineral Resources is based on and fairly
represents information compiled or reviewed by Mr
Lynn Widenbar, Principal Consultant of Widenbar
and Associates Pty Ltd., who is a Member of the
AusIMM and the AIG. Mr Lynn Widenbar is a full-time
employee of Widenbar and Associates Pty Ltd. and
has sufficient experience, which is relevant to the
style of mineralisation and types of deposit under
consideration and to the activities undertaken, to
qualify as a Competent Person as defined in the
2012 Edition of the “Australasian Code of Reporting
of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Lynn Widenbar consents to the inclusion
of the report of the matters based on the information
in the form and context in which it appears.
The information in this report that relates to Blue
Spec and Gold Spec, Copenhagen, Coronation, and
Fieldings Gully Mineral Resources is based on and fairly
represents information compiled or reviewed by Mr Ben
Playford, who is a Member of the AIG. Mr Ben Playford
is a full-time employee of Calidus Resources Limited.
and has sufficient experience, which is relevant to
the style of mineralisation and types of deposit under
consideration and to the activities undertaken, to qualify
as a Competent Person as defined in the 2012 Edition
of the “Australasian Code of Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Mr Ben
Playford consents to the inclusion of the report of
the matters based on the information in the form and
context in which it appears.
The information in this report that relates to Klondyke
Open Pit Mineral Resources is based on and fairly
represents information compiled or reviewed by Ms.
Christine Standing, Principal Consultant of Optiro
Ltd., who is a Member of the AusIMM and the AIG. Ms.
Christine Standing is a full-time employee of Optiro
Ltd. and has sufficient experience, which is relevant
to the style of mineralisation and types of deposit
under consideration and to the activities undertaken,
to qualify as a Competent Person as defined in the
2012 Edition of the “Australasian Code of Reporting
of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Jani Kalla consents to the inclusion of
the report of the matters based on the information in
the form and context in which it appears.
Annual Mineral Resource & Ore Reserve Report 30 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
The information in this report that relates to the Open
Pit Ore Reserves is based on and fairly represents
information compiled or reviewed by Mr Steve
O’Grady. Mr O’Grady has confirmed that he has read
and understood the requirements of the 2012 Edition
of the Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. He is
a Competent Person as defined by the JORC Code
2012 Edition, having more than five years experience
which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity for
which he is accepting responsibility. Mr O’Grady is a
Member of the AusIMM and consents to the inclusion
in the report of the matters based on his information in
the form and context in which it appears.
The information in this report that relates to the
Underground Ore Reserves is based on and fairly
represents information compiled or reviewed by Mr
Matthew Keenan. Mr Keenan is a full time employee
of Entech Pty Ltd. Mr Keenan has confirmed that he
has read and understood the requirements of the
2012 Edition of the Australian Code for Reporting
of Exploration Results, Mineral Resources and Ore
Reserves. Mr Keenan is a Competent Person as
defined by the JORC Code 2012 Edition, having
more than five years’ experience which is relevant to
the style of mineralisation and type of deposit under
consideration and to the activity for which he is
accepting responsibility. Mr Keenan is a Member of the
AusIMM and has provided his prior written consent to
the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Forward looking Statements and Disclaimers
This announcement does not constitute investment
advice. Neither this announcement nor the
information contained in it constitutes an offer,
invitation, solicitation or recommendation in relation
to the purchase or sale of shares in any jurisdiction.
This announcement does not take into account any
person’s particular investment objectives, financial
resources or other relevant circumstances and the
opinions and recommendations in this announcement
are not intended to represent recommendations
of particular investments to particular persons. All
securities transactions involve risks, which include
(among others) the risk of adverse or unanticipated
market, financial or political developments.
To the fullest extent permitted by law, Calidus
Resources Limited does not make any representation
or warranty, express or implied, as to the accuracy
or completeness of any information, statements,
opinions, estimates, forecasts or other representations
contained in this announcement. No responsibility
for any errors or omissions from this announcement
arising out of negligence or otherwise is accepted.
This announcement may include forward looking
statements. Forward looking statements are only
predictions and are subject to risks, uncertainties and
assumptions which are outside the control of Calidus.
These risks, uncertainties and assumptions include
commodity prices, currency fluctuations, economic
and financial market conditions in various countries
and regions, environmental risks and legislative,
fiscal or regulatory developments, political risks,
project delay or advancement, approvals and cost
estimates. Actual values, results or events may be
materially different to those expressed or implied in
this announcement. Given these uncertainties, readers
are cautioned not to place reliance on forward looking
statements. Any forward looking statements in this
announcement speak only at the date of issue of this
announcement. Subject to any continuing obligations
under applicable law and the ASX Listing Rules, Calidus
does not undertake any obligation to update or
revise any information or any of the forward looking
statements in this announcement or any changes in
events, conditions or circumstances on which any
such forward looking statement is based.
Compliance Statement
The information in this announcement that relates to
Exploration Results and Mineral Resources released
previously on the ASX.
The Company confirms that it is not aware of any
new information or data that materially affects
the information included in the original market
announcements and that, in the case of mineral
resources estimates, all material assumptions and
technical parameters underpinning the estimates
continue to apply and have not materially changed.
The Company confirms that the form and context in
which the Competent Person’s findings are presented
have not been materially modified from the original
market announcements.
Annual Mineral Resource & Ore Reserve Report Annual Mineral Resource & Ore Reserve Report 30 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 31
Tenement Schedule
As at 30 June 2021
Calidus Resources & Subsidiaries Tenement Schedule
Tenement ID
Holder
Size (ha)
Renewal
Ownership/
Interest
Granted
E45/3615
Keras (Pilbara) Gold Pty Ltd
E45/4236
Keras (Pilbara) Gold Pty Ltd
E45/4555
Keras (Pilbara) Gold Pty Ltd
E45/4843
Keras (Pilbara) Gold Pty Ltd
E45/4856
Keras (Pilbara) Gold Pty Ltd
E45/4857
Keras (Pilbara) Gold Pty Ltd
E45/4905
Keras (Pilbara) Gold Pty Ltd
E45/4906
Keras (Pilbara) Gold Pty Ltd
1,594.62
956.69
1,915.22
940.95
1,594.27
1,275.37
638.00
319.00
E45/5172
Keras (Pilbara) Gold Pty Ltd
4,291.17
M45/0240
Keras (Pilbara) Gold Pty Ltd
M45/0521
Keras (Pilbara) Gold Pty Ltd
M45/0547
Keras (Pilbara) Gold Pty Ltd
M45/0552
Keras (Pilbara) Gold Pty Ltd
M45/0668
Keras (Pilbara) Gold Pty Ltd
M45/0669
Keras (Pilbara) Gold Pty Ltd
M45/0670
Keras (Pilbara) Gold Pty Ltd
M45/0671
Keras (Pilbara) Gold Pty Ltd
M45/0672
Keras (Pilbara) Gold Pty Ltd
M45/0679
Keras (Pilbara) Gold Pty Ltd
M45/0682
Keras (Pilbara) Gold Pty Ltd
L45/0523
Keras (Pilbara) Gold Pty Ltd
L45/0527
Keras (Pilbara) Gold Pty Ltd
L45/0564
Keras (Pilbara) Gold Pty Ltd
L45/0565
Keras (Pilbara) Gold Pty Ltd
L45/0566
Keras (Pilbara) Gold Pty Ltd
L45/0567
Keras (Pilbara) Gold Pty Ltd
L45/0573
Keras (Pilbara) Gold Pty Ltd
L45/0584
Keras (Pilbara) Gold Pty Ltd
L45/0585
Keras (Pilbara) Gold Pty Ltd
L45/0586
Keras (Pilbara) Gold Pty Ltd
L45/0587
Keras (Pilbara) Gold Pty Ltd
L45/0588
Keras (Pilbara) Gold Pty Ltd
6.07
18.11
17.72
9.71
242.05
101.95
113.10
118.65
116.20
121.30
235.95
172.54
251.51
60.19
6.62
8.88
1.96
11.03
66.43
115.27
56.36
72.91
101.83
22/11/2022
19/10/2024
1/03/2022
2/07/2022
20/05/2023
20/05/2023
29/11/2022
29/11/2022
30/05/2024
17/11/2028
10/03/2034
2/05/2035
18/01/2035
28/12/2037
28/12/2037
29/12/2037
29/11/2037
1/08/2037
8/04/2038
17/04/2038
18/09/2040
23/02/2042
24/11/2041
25/11/2041
24/11/2041
17/12/2041
4/01/2042
20/04/2042
6/04/2042
22/02/2042
6/04/2042
3/03/2042
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement Schedule 32 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Tenement ID
Holder
Size (ha)
Renewal
Ownership/
Interest
L45/0590
Keras (Pilbara) Gold Pty Ltd
L45/0591
Keras (Pilbara) Gold Pty Ltd
L45/0592
Keras (Pilbara) Gold Pty Ltd
L45/0593
Keras (Pilbara) Gold Pty Ltd
L45/0613
Keras (Pilbara) Gold Pty Ltd
E45/3381
Keras (Pilbara) Gold Pty Ltd
E45/4622
Keras (Pilbara) Gold Pty Ltd
E45/4666
Keras (Pilbara) Gold Pty Ltd
E45/4934
Keras (Pilbara) Gold Pty Ltd
M45/1290
Keras (Pilbara) Gold Pty Ltd
G45/0345
Keras (Pilbara) Gold Pty Ltd
G45/0347
Keras (Pilbara) Gold Pty Ltd
G45/0348
Keras (Pilbara) Gold Pty Ltd
G45/0349
Keras (Pilbara) Gold Pty Ltd
105.45
57.61
86.06
20.65
6.97
7,802.45
4,216.80
3,162.14
1,595.08
149.83
439.05
2.22
36.34
26.45
22/02/2042
28/03/2042
22/02/2042
4/01/2014
11/06/2021
16/03/2023
4/05/2022
23/11/2021
22/01/2023
11/02/2042
11/05/2041
3/01/2042
21/02/2042
3/01/2042
Applications
E45/5747
Keras (Pilbara) Gold Pty Ltd
E45/5748
Keras (Pilbara) Gold Pty Ltd
3,826.11
5,111.83
APPLICATION
APPLICATION
P46/1972
Keras (Pilbara) Gold Pty Ltd
194.57
APPLICATION
100% Beneficial Ownership
M46/0115
Beatons Creek Gold Pty Ltd
M46/0244
Beatons Creek Gold Pty Ltd
931.40
18.47
3/02/2033
28/11/2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Joint Venture
E45/4704
E45/4706
E45/5706
Calidus Otways Pty Ltd/
Rugby Mining Pty Ltd
Calidus Otways Pty Ltd/
Rugby Mining Pty Ltd
Calidus Otways Pty Ltd/
Rugby Mining Pty Ltd
7,961.51
4/07/2022
Earning 70%
5,414.49
1/08/2022
Earning 70%
1,276.75
APPLICATION
Earning 70%
E46/1026
Gondwana Resources Limited
E46/1035
Nimble Resources Pty Ltd
3,797.33
8,700.57
9/05/2026
Earning 51%
1/12/2025
Earning 75%
Tenement Schedule Tenement Schedule 32 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 33
34 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Directors’ Report
Your directors present their report on the consolidated entity, consisting of Calidus Resources Limited (Calidus or
the Company) and its controlled entities (collectively the Group), for the financial year ended 30 June 2021.
Directors
The names of Directors in office since 1 July 2020 and up to the date of this report are:
Mr David Reeves
Managing Director
Qualifications
Mining Engineer Bachelor of Engineering (1st Class
honours), Grad Dip Applied Finance, WA Mine
Managers Certificate
Experience
Mr Reeves is a Perth-based, qualified mining engineer
with 30 years of experience in the mining industry
and was the Non-Executive Chairman of European
Metals Holdings Limited (ASX and AIM). Mr Reeves has
extensive experience in international capital markets
through his involvement with various listed London
and Australia companies.
Mr Reeves was the Project Manager of Zimplats and
Afplats prior to their sale for a combined US$1 billion
and prior to this, worked with Delta Gold in Zimbabwe
and various gold companies in Western Australia in
which he assumed various roles, including the position
of Mine Manager.
Special responsibilities
None
Interest in Shares and Options
• 20,151,190 Fully Paid Ordinary Shares
• 1,500,000 Unlisted Option, nil exercise price, exp 27
December 2024
Directorships held in other listed entities
Non-Executive Director of Keras Resources Plc (AIM)
Past directorships in the last 3 years
Non-Executive Chairman of European Metals Holdings
Limited (ASX & AIM) – resigned 30 June 2020
Mr Mark Connelly
Independent Non-executive Chairman
Qualifications
Bachelor of Business, ECU, MAICD, AIMM, Member of
SME
Experience
Mr Connelly was previously Managing Director of
Papillion Resources and was instrumental in the
US$570m takeover of Papillon by B2Gold Corp in
October 2014. Prior to Papillon, Mr Connelly was Chief
Operating Officer of Endeavour Mining Corporation,
following its merger with Adamus Resources Limited
where he was Managing Director and CEO. Mark was
instrumental in not only the merger, but procurement
of project finance and the development of the Nzema
Mine in Ghana into a +100Koz pa mining operation.
Special responsibilities
Member of Audit and Risk Committee and the
Remuneration and Nomination Committee
Interest in Shares and Options
• 676,786 Fully Paid Ordinary Shares
• 200,000 NED Options, nil exercise price,
exp 27 December 2023
Directorships held in other listed entities
• Non-Executive Chairman of Chesser Resources
Limited (ASX)
• Non-Executive Chairman of Oklo Resources Limited
(ASX)
• Non-Executive Chairman of Barton Gold Holdings
Limited (ASX)
Past directorships in the last 3 years
• Non-Executive Chairman of Hyperion Metals Limited
(ASX) (previously named Tao Commodities Ltd) from
5 May 2017 to 18 February 2021
• Non-Executive Chairman of Primero Group Limited
(ASX)
• Non-Executive Chairman of West African Resources
Ltd (ASX) from 23 June 2015 to 29 May 2020 Non-
Executive Director of Ausdrill Limited, (ASX) from
July 2012 to June 2018
• Non-Executive Director of Tiger Resources Ltd (ASX)
from December 2015 to June 2018
Annual Report for the Financial Year ending 30 June 2021 | 35 34 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Mr John Ciganek
Non-executive Director
(Appointed 4 January 2021)
Qualifications
Bachelor of Mining Engineering, Wollongong
University, NSW. MBA Macquarie Graduate School of
Management, NSW
Experience
John has more than 30 years in the mining
sector across a range of roles including mining
engineering, stockbroking, executive management
and corporate finance.
Most recently, John gained substantial experience in
debt financings including project financings, project
bonds issuances, convertible note offerings, working
capital facilities, hedging facilities, off-taker funding,
and equity raisings through his role as Executive
Director for Burnvoir Corporate Finance.
Special responsibilities
Chairman of the Audit and Risk Committee and member
of the Remuneration and Nomination Committee
Interest in Shares and Options
• Nil Fully Paid Ordinary Shares
• 200,000 NED Options, nil exercise price,
exp 4 January 2025
Directorships held in other listed entities
• Non-Executive Chairman of Ookami Limited (ASX)
• Non-Executive Director of Vanadium Resources
Limited (ASX)
Past directorships in the last 3 years
None
Ms Julia Beckett
Company Secretary
Ms Julia Beckett was appointed Company Secretary
of the Company on 24 September 2018. Julia holds a
Certificate in Governance Practice and Administration
and is a Member of the Governance Institute of Australia.
Mr Keith Coughlan
Non-Executive Director
Qualifications
BA
Experience
Mr Coughlan has almost 30 years’ experience in
stockbroking and funds management. He has been
largely involved in the funding and promoting of
resource companies listed on ASX, AIM and TSX, has
advised various companies on the identification and
acquisition of resource projects and was previously
employed by one of Australia’s then largest funds.
Special responsibilities
Chairman of the Remuneration and Nomination
Committee and member of the Audit and Risk Committee
Interest in Shares and Options
• 500,000 Fully Paid Ordinary Shares
• 200,000 NED Options, nil exercise price,
exp 27 December 2023
Directorships held in other listed entities
• Executive Chairman of European Metals Holdings
Limited (ASX & AIM)
• Non-Executive Chairman of Doriemus plc (ASX)
Past directorships in the last 3 years
Non-Executive Director of Southern Hemisphere Mining
Limited (ASX) from 7 July 2016 to 5 February 2021
Mr Adam Miethke
Non-Executive Director
(resigned 27 July 2020)
Qualifications
Bachelor of Applied Science with First Class Honours
in Geology & Master of Business Administration
Experience
Mr Miethke is a geologist with over extensive
experience in the metals and mining industry, funds
management and as a corporate advisor.
Adam initially worked for Rio Tinto’s iron ore division
before joining Snowden Mining Consultants where
he worked across all commodities in Australia, Africa,
Eastern Europe and South America. After completing
an MBA in 2008, he joined Regent Pacific Group
in Hong Kong as technical director, overseeing the
group’s investment portfolio. Between 2011 and 2016,
Adam was a director of a corporate finance team at
Argonaut Capital Limited and led Argonaut’s metals
and mining division.
Special responsibilities
Chairman of Audit & Risk Committee prior to
resignation on 27 July 2020
Interest in Shares and Options
Nil
Directorships held in other listed entities
Non-Executive Director of Caprice Resources Limited
(ASX)
Directors’ Report 36 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Meetings of Directors and Committees
The number of Directors’ Meetings (including meetings of Committees of Directors) held during the year, and the
number of meetings attended by each Director are as follows:
Directors’ Meetings
Audit & Risk Committee
Remuneration &
Nomination Committee
Number
Eligible to
Attend
Number
Attended
Number
Eligible to
Attend
Number
Attended
Number
Eligible to
Attend
Number
Attended
11
11
11
6
-
11
11
11
6
-
-
1
1
-
-
-
1
1
-
-
-
2
2
-
-
2
2
-
Dave Reeves
Mark Connelly
Keith Coughlan
John Ciganek
Adam Miethke
Securities
Options
At the date of this report, the unissued ordinary shares of Calidus Resources Limited under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
25 November 2019
25 November 2019
25 November 2019
4 June 2020
5 August 2020
12 August 2020
27 Dec 2023
27 Dec 2024
30 Jan 2025
4 June 2025
5 August 2025
12 August 2025
16 December 2020
11 December 2025
16 December 2020
16 December 2025
4 January 2021
19 January 2021
4 January 2025
19 January 2023
15 February 2021
16 February 2024
28 May 2021
28 May 2024
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
400,000
3,450,000
1,350,000
350,000
600,000
170,000
167,500
228,800
200,000
417,650
167,000
270,000
7,770,950
Shares Issued on Exercise of Options
During the financial year, the Company issued ordinary shares as a result of the exercise of options as follows:
Grant Date
13-Aug -20
29-Dec-20
1-Feb-21
1-Apr-21
13-Apr-21
4-May-21
4-May-21
4-May-21
Dividends
Issued Price of the Shares
Number of Shares Issued
Nil
Nil
Nil
$0.20
$0.20
Nil
Nil
Nil
200,000
488,500
150,000
200,000
4,000,000
3,700,000
1,350,000
150,000
There were no dividends paid or recommended during the financial year ended 30 June 2021.
Directors’ ReportDirectors’ Report 36 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 37
Operating and Financial Review
Principal Activities
The principal activity of the Company during the
financial year was gold exploration and development.
Calidus controls the Warrawoona Gold Project in the
East Pilbara district of the Pilbara Goldfields in Western
Australia and has commenced construction and
development activities. The Company anticipates first
gold production in the June quarter, 2022.
For further details, refer to the “Review of Operations”
on page 7 .
Financial Review
Operating Results
For the 2021 financial year the Group delivered a loss
before tax of $4,778,565 (2020: $2,094,345 loss).
The financial statements have been prepared on
a going concern basis, which contemplates the
continuity of normal business activity and the
realisation of assets and the settlement of liabilities in
the ordinary course of business.
Financial Position
The net assets of the Group have increased from 30
June 2020 by $75,869,861 to $106,893,121 at 30 June
2021 (2020: $31,023,260).
As at 30 June 2021, the Group’s cash and cash
equivalents increased by $21,626,765 to $27,317,426
at 30 June 2021 (2020: $5,690,661) and had working
capital of $15,980,229 (2020: $4,614,249 working
capital), as noted in “Note 18E” on page 69.
Significant Changes in the
State of Affairs
Refer to the “Review of Operations” on page 7 for
the significant changes in the state of affairs of the
Group that occurred during the financial year.
Events Subsequent to Reporting Date
On 16 August 2021 Calidus announced that mining
had commenced at the Warrawoona Gold Project with
ore now being delivered to the run of mine (ROM) pad.
On 14 September 2021 Calidus announced the signing
of a mining services agreement with Macmahon
Holdings Limited which covers all open pit mining until
2026 ensuring sufficient ore stocks available at mill
commissioning. In addition, the mill was reported as
being successfully installed taking construction of the
processing plant to 63% complete.
Future Developments, Prospects and Business Strategies
The Company is focussed on advancing the Warrawoona Gold Project under the following timeline:
2021
2022
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Permitting
Operating Permits
Contracts and Finance
Award All Contracts
Commence Debt Draw-down
Development Activities
Bulk Earthworks Begin
Pioneer Mining Commences
Main Mining Commences
Mill Commissioning and First Gold
Exploration and Feasibilities
Blue Spec Integration Scoping Study
Drilling Blue Spec
DFS Blue Spec
Blue Spec (Regional) Stream Sediment Sampling
Fielding’s Find Shear Zone Drilling
Directors’ Report 38 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Environmental Regulations
and Performance
The consolidated entity will comply with its obligations
in relation to environmental regulation on its projects
when it undertakes exploration.
So far as the Directors are aware, all activities
have been undertaken in compliance with all
environmental regulations.
Indemnifying Officers or Auditor
During or since the end of the financial year the
Company has given an indemnity or entered into an
agreement to indemnify, or paid or agreed to pay
insurance premiums as follows:
ā The Company has entered into agreements to
indemnify all Directors and provide access to
documents, against any liability arising from a claim
brought by a third party against the Company. The
agreement provides for the Company to pay all
damages and costs which may be awarded against
the Directors.
ā The Company has paid premiums to insure each
of the Directors against liabilities for costs and
expenses incurred by them in defending any legal
proceedings arising out of their conduct while
acting in the capacity of Director of the Company,
other than conduct involving a willful breach of
duty in relation to the Company. Under the terms
and conditions of the insurance contract, the nature
of the liabilities insured against and the premium
paid cannot be disclosed.
ā No indemnity has been paid to auditors.
Non-audit Services
No non-audit services were provided to the Company
during or since the end of the financial year.
Proceedings on Behalf of 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 year.
Directors’ ReportDirectors’ Report 38 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 39
On behalf of the Board, I would like
to extend my thanks to our staff and
contractors for the skill, initiative and
sheer hard work which has enabled us
to reach this point. Your commitment
to Warrawoona is greatly appreciated.
Mark Connelly
Non-Executive Chairman
40 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Remuneration Report (audited)
This report details key aspects of the remuneration policy and framework the nature and amount of remuneration
of each Key management Personnel (KMP) of Calidus Resources Limited (Calidus or the Company). The
information in this remuneration report has been audited as required by s308(3C) of the Corporations Act 2001.
1. Key Management Personnel
Key Management Personnel have authority and
responsibility for planning, directing and controlling the
activities of the Group (KMP). KMP comprise the Directors
of the Company and key Senior Executive personnel.
KMP during the year ended 30 June 2021 are
set out as follows:
ā Mr David Reeves Managing Director
ā Mr John Ciganek Non-Executive Director
(Appointed 4 January 2021)
ā Mr Adam Miethke Non-Executive Director
(Resigned 27 July 2020)
ā Mr Paul Brennan Project Development
ā Mr Richard Hill Chief Financial Officer
ā Mr Don Russell General Manager Warrawoona
ā Mr Mark Connelly Non-Executive Chairman
(Appointed 3 August 2020)
ā Mr Keith Coughlan Non-Executive Director
2. Remuneration and Nomination Committee
The Board has adopted a formal Remuneration &
Nomination Committee Charter which provides a
framework for the consideration of remuneration
matters. The Remuneration & Nomination
Committee is responsible for reviewing and making
recommendations to the Board which has ultimate
responsibility for the following remuneration matters:
1. Setting remuneration packages for Executive
Directors, Non-Executive Directors and Senior
Executives; and
2. Implementing employee incentive and equity based
plans and making awards pursuant to those plans.
3. Remuneration Policy and Framework
The remuneration policy is approved by the Board of
the Company and has been designed to ensure reward
for performance is competitive and appropriate to the
result delivered. The framework aligns rewards with
the creation of value for shareholders and conforms to
market best practice. The Board ensures that Director
and Executive reward satisfies the following key criteria
for good reward government practices:
ā Competitiveness and reasonableness;
ā Acceptability to the shareholder;
ā Aligned to the Company’s strategic and business
objectives and the creation of shareholder value;
ā Link between performance and remuneration;
ā Transparency; and
ā Capital management.
The remuneration policy has been tailored to increase
the direct positive relationship between shareholders’
investment objectives and director and executive
performance. Currently, this is facilitated through
the issues of options to the majority of directors and
executives to encourage the alignment of personal
and shareholder interests.
The Company believes this policy will be effective in
increasing shareholder wealth. The Board’s policy for
determining the nature and amount of remuneration
for Board members and Senior Executives of the
Company is as follows:
A. Executive Directors and Other
Senior Executives
The Company’s remuneration policy for Executive
Directors and Senior Executives is designed to
promote superior performance and long-term
commitment to the Company. The Board reviews
executive packages regularly by reference to the
Company’s performance, executive performance, and
comparable information from industry sectors and
other listed companies in similar industries.
Executives receive a base remuneration which is
bench marked from time to time against other similar
organisations. Executives receive superannuation
and may receive performance based remuneration
including participation in the Employee Incentive
Share Plan (EISP) that is approved by shareholders.
Annual Report for the Financial Year ending 30 June 2021 | 41
B. Non-Executive Directors
The Company’s Constitution provides that Directors
are entitled to be remunerated for their services as
follows:
ā The total aggregate fixed sum per annum to be
D. Long Term Incentives
Employee Share Incentive Plan
Shareholders approved the Employee Share Incentive
plan (ESIP) at the Annual General Meeting held on 3
December 2020.
paid to the directors (excluding salaries of executive
directors) from time to time will not exceed the
sum determined by the shareholders in general
meeting and the total aggregate fixed sum will be
divided between the Directors as the Directors shall
determine and, in default of agreement between
them, then in equal shares. The maximum Non-
Executive Directors’ fees, payable in aggregate, are
currently set at $250,000 per annum.
ā The Directors’ remuneration accrues from day to
day.
The Directors are entitled to be paid reasonable
travelling, accommodation and other expenses
incurred by them respectively in or about the
performance of their duties as Directors.
Notwithstanding the aforementioned, and based on
advice from an independent remuneration expert, the
remuneration structure for Non-Executive Directors
represents the following structure:
ā Annual board fees;
ā Committee fees; and
ā Equity based fees in lieu of fixed fees (refer to 3D
NED Options).
The equity-based fees to be considered for Non-
Executive Directors will not be subject to performance
conditions which conforms with best practice
governance standards, including the ASX Corporate
Governance Council’s Principles.
Other than statutory superannuation contribution, no
retirement benefits are provided for Non-Executive
Directors of the Company.
C. Short Term Incentives
The Company does not currently have a defined short
term cash-based incentive plan. As the Company is a
non-producer, and in order to limit its outgoings, the
Board wishes to conserve and utilise its cash holdings
in the most effective manner possible.
Incentive Options for Executive Directors
and Senior Executives
To ensure cash holdings are conserved as the Company
progresses its activities from the development of the
Warrawoona Gold Project to commercial production
and to align Executive Directors and Senior Executives
remuneration and key performance criteria with value
creation for shareholders, an allocation of zero exercise
price options (i.e. options with a nil exercise price) are
issued under the terms of the ESIP (Incentive Options).
The Incentive Options expire 5 years from the date
of grant and vest subject to the relevant Executive
Director or Senior Executive remaining employed by
the Company at the date of vesting, and achievement
of the following performance conditions:
(i) Performance Condition 1 - half of the Incentive
Options will vest upon the latter of the following:
(a) the Company announcing successful
completion of a positive definitive feasibility
study for the Warrawoona Gold Project (DFS);
and
(b) the Company announcing that it has
acquired the approvals and permits required
to commence construction of the mine
on the Warrawoona Gold Project from the
Environmental Protection Authority, the
Department of Mines, Industry Regulation and
Safety, and the Department of the Environment
and Energy; and
(ii) Performance Condition 2 - subject to the vesting
of the first half of the Incentive Options, the
second half of the Incentive Options will vest upon
the Company announcing that first gold pour has
been achieved at the Warrawoona Gold Project.
Options for Fixed Remuneration Correction Plan
In the previous financial year, the Company engaged
BDO (WA) Pty Ltd, independent remuneration
consultants, to conduct a market review of the total
fixed remuneration (TFR) packages of the Directors
and Senior Executives. The market review identified the
Company Total Fixed Remuneration (TFR) packages to
be at a discount to the market median. In order for the
Company to conserve cash as it progresses its activities
from the development of the Warrawoona Project to
commercial production, the Company utilises a ‘once-
off’ equity allocation in the form of zero exercise price
options issued under the ESIP to ensure that the TFR
packages are market appropriate.
The equity allocation represents equity in lieu of
additional salary. The fixed remuneration correction plan
has a retentive benefit given recipients must complete a
period of service with the Company to satisfy the vesting
condition and also serves to ensure Directors and Senior
Executives are remunerated at market related rates
whilst conserving the Company’s cash.
Remuneration Report (audited) 42 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
The vesting condition for options issued to Non-
Executive Directors is that the Director must remain
with the Company for a period of 3 years, with a third
of the options vesting each year (NED Options).
The vesting condition for options issued to Executive
Directors and Senior Executives is that the Executive
must remain employed with the Company for a
period of 12 months at which time the options will
vest (Exec Options).
Share Rights for Discretionary Fee Reduction
In the prior financial year, the Company initiated
various cash preservation measures at the start of the
COVID-19 pandemic to ensure it was funded through
to a final investment decision on the Warrawoona Gold
Project. The Company provided a ‘once off’ invitation
to Directors and Senior Executives to participate in a
discretionary fee/ salary reduction in return for rights to
acquire shares (Share Rights) to be granted under the
ESIP applicable at that time, whereby they may elect to
accrue up to 50% of their fee/ salary from 1 April to 30
June 2020. The number of rights was determined with
reference to the VWAP for the month of April 2020.
The invitation to Directors was subject to shareholder
approval which was received on 1 September 2020 at a
meeting of shareholders.
No additional share rights were granted to KMP in the
year ended 30 June 2021.
E. Service Contracts
Remuneration and other terms of employment for
the Directors and KMP are formalised in contracts of
service.
F. Engagement of Remuneration
Consultants
The Group did not employ the services of any
remuneration consultants during the financial year
ended 30 June 2021.
During the prior financial year ended 30 June 2020,
the Company engaged BDO (WA) Pty Ltd, independent
remuneration consultants, to review its existing
remuneration policies and provide recommendations
on how to improve both the fixed remuneration and
performance-based remuneration (both short term
and long term incentive) programs. BDO (WA) Pty Ltd
was paid $12,500 for these services.
G. Relationship Between Remuneration
of KMP and Earnings
The Board does not consider earnings during the
current and previous financial years when determining
the nature and amount of remuneration of KMP as the
Company is a non-producer.
4. KMP Remuneration Disclosure
Details of the remuneration of the directors and KMP of the Company for the years ending 30 June 2021 and 30
June 2020 are as follows:
FY2021
Short-term benefits
Post-employment
benefits
Share-based payments
Total
Name
Salary, fees
and leave
Other
Super-
annuation
($)
($)
D Reeves
287,500
M Connelly
K Coughlan
A Miethke (ii)
J Ciganek(i)
P Brennan
R Hill
D Russell
66,000
30,000
2,000
18,000
240,000
245,000
320,833
1,209,333
-
-
-
-
-
-
-
-
-
($)
14,250
6,270
-
-
-
22,800
23,275
30,479
97,074
(i) Mr J Ciganek joined the Company on 4 January 2021
(ii) Mr A Miethke left the Company on 27 July 2020
Other
($)
Share
rights
($)
Options and
performance
rights
($)
($)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
106,222(iv)
407,972
21,000(iii)
93,270
14,000(iii)
44,000
33,646(iii)
16,209(iii)
35,646
34,209
96,873(iv)
359,673
154,456(iv)
422,731
203,612(iv)
554,924
646,018
1,952,425
(iii) Includes share-based payments expense related to Options for Fixed Remuneration Correction Plan– refer to 3D NED Options
(iv) Includes share-based payments expense related to Options for Fixed Remuneration Correction Plan Exec Options and Incentive
Options – refer to3D of the remuneration report and “Note 20: Share-based payments” on page 71.
Remuneration Report (audited)Remuneration Report (audited) 42 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 43
FY2020
Short-term benefits
Post-employment
benefits
Share-based payments
Total
Name
Salary, fees
and leave
Other
Super-
annuation
Other
Share
rights(iii)
Options and
performance
rights (vi)
($)
($)
($)
($)
($)
($)
($)
D Reeves
240,625
M Connelly
K Coughlan
A Miethke
P Brennan (i)
R Hill (ii)
52,500
24,000
22,200
210,000
101,625
650,950
-
-
-
-
-
-
-
-
5,700
-
-
22,800
12,504
41,004
-
-
-
-
-
-
-
36,830(iv)
240,278
517,733
8,170(iv)
12,531
-
2,539(iv)
8,354
8,354
78,901
32,354
33,093
37,500(v)
324,914
595,214
31,071(v)
235,544
380,744
116,110
829,975
1,638,039
(i) Mr P Brennon joined the Company on 12 March 2019
(ii) Mr R Hill joined the Company on 25 November 2019
(iii) Refer “3D. Share Rights for Discretionary Fee Reduction” on page 43
(iv) The shareholders approved the share issuance of share rights to directors on 1 September 2020 (refer also to “6B. Share Rights”).
(v) Share rights vested and shares were issued on 1 July 2020.
(vi) Only Mr P Brennan was granted performance rights.
The relative proportion of actual remuneration split between fixed and variable remuneration is as follows:
Name
D Reeves
M Connelly
K Coughlan
A Miethke
J Ciganek
P Brennan
R Hill
D Russell
Fixed remuneration
At risk - STI
At risk - LTI
2021
2020
2021
2020
2021
2020
74%
77%
68%
6%
53%
73%
63%
63%
46%
74%
74%
67%
-
39%
30%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26%
23%
32%
94%
47%
27%
37%
37%
54%
26%
26%
33%
-
61%
70%
-
5. Service Agreement Disclosure
A. Executive Service Agreements
The terms of KMP service agreements are summarised in the following table:
Name
Base salary(i)
Term of agreement
Termination benefit(ii)
D Reeves
Managing Director
R Hill
Chief Financial Officer
P Brennan
Project Development
Base salary of $300,000 per
annum plus superannuation
Base salary of $250,000 per
annum plus superannuation
Base salary of $240,000 per
annum plus superannuation
Until terminated
6 months’ base salary
Until terminated
6 months’ base salary
Until terminated
3 months’ base salary
D Russell
General Manager Warrawoona
Base salary of $350,000 per
annum plus superannuation
Until terminated
6 months’ base salary
(i) Base salaries are as at 30 June 2021
(ii) Termination benefits are payable on early termination by the Company other than for gross mis-conduct.
Remuneration Report (audited) 44 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
B. Non-Executive Director Arrangements
All non-executive directors enter into a service
agreement with the Company in the form of a letter of
appointment. Key terms are detailed below.
The Company has agreed to pay Mr M Connelly a
director fee of $72,000 (increased from $60,000
effective 1 January 2021) plus superannuation per
year for services provided to the Company as Non-
Executive Chairman.
The Company has agreed to pay Mr K Coughlan, and
Mr J Ciganek director fees of $36,000 (increased from
$24,000 effective 1 January 2021) per year for services
provided to the Company as Non-Executive Director.
A Non-Executive Director may resign from his/her
position and thus terminate their contract on written
notice to the Company.
A Non-Executive Director may, following resolution of
the Company’s shareholders, be removed before the
expiration of their period of office (if applicable).
6. Share-Based Compensation Disclosure
A. Issue of Shares
No shares were issued to Directors and other KMP as part of compensation during the year ended 30 June 2021.
B. Share Rights
The terms and conditions of each grant of Share Rights issued under the ESIP during the year but that affect
remuneration of KMP in the prior financial year are as follows:
Name
Number of share
rights granted
Deemed grant date
Share price at
grant date
D Reeves(i)
M Connelly(i)
K Coughlan
A Miethke(i)
160,804
26,786
-
38,572
7-May 20
5-May-20
-
26-May-20
$0.300
$0.305
-
$0.395
Expiry date
7-May 22
5-May-22
-
26-May-22
(i) In the prior financial year ended 30 June 2020 the Company invited Directors, subject to shareholder approval, to participate in a
discretionary fee reduction for a 3 month period in return for Share Rights (refer to “Share Rights for Discretionary Fee Reduction” on
page 43). Shareholders approved the grant of the Share Rights during the current financial year at the meeting of shareholders held
on 1 September 2020. Refer to ASX Announcement dated 2 September 2020. The remuneration impact of these share rights was fully
recognised in the prior financial year. No additional share rights were granted to KMP in the year ended 30 June 2021.
C. Options
The terms and conditions of each grant of options issued under the ESIP affecting remuneration of KMP in this
financial year or future reporting years are as follows:
NED Options
The following table details the terms and conditions of the grant of NED Options to KMP in the year ended 30
June 2021 (refer to 3D NED Options) and the assumptions used in estimating fair value:
Name
Number
of options
granted
Grant date
Vesting
date and
exercisable
date
Expiry
date
Exercise
price
Fair value
per option at
grant date
J Ciganek
200,000
4-Jan-21
1-Jan-24
4-Jan-25
Nil
$0.50
Incentive Options
The following table details the terms and conditions of the grant of Exec Options to KMP in the year ended 30
June 2021 (refer to 3D Incentive Options) and the assumptions used in estimating fair value:
Name
Number
of options
granted
Grant date
Vesting
date and
exercisable
date
Expiry
date
Exercise
price
Fair value
per option at
grant date
D Russell
600,000
5-Aug-20
28-Feb-22
5-Aug-25
Nil
$0.59
Remuneration Report (audited)Remuneration Report (audited) 44 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 45
7. Additional Disclosures
A. Fully Paid Ordinary Shares of Calidus Resources Limited Held by each KMP
The number of Shares in the Company held during the financial year by KMP of the Company, including their
related parties, are set out below.
2021 Ordinary
Shares
Balance at
start of year
Received during
the year as
compensation
Received during
the year on
the exercise of
options
Other changes
during the year
Balance at end
of year
Name
D Reeves
M Connelly
K Coughlan
A Miethke
J Ciganek
P Brennan
R Hill
D Russell
(number)
16,994,200
500,000
944,000
-
-
150,000
-
10,000
18,598,200
(number)
-
-
-
-
-
-
-
-
-
(number)
1,650,000
100,000
-
-
-
1,500,000
1,500,000
-
(number)
1,506,990
76,786
(444,000)
6,429
-
107,143
125,143
103,600
(number)
20,151,190
676,786
500,000
6,429
-
1,757,143
1,625,143
113,600
4,750,000
1,475,662
24,823,862
B. Share Rights in Calidus Resources Limited Held by each KMP
The number of Share Rights in the Company held during the financial year by KMP of the Company, including
their related parties, are set out below.
2021 Share
Rights
Balance at start
of year
Name
D Reeves
M Connelly
K Coughlan
A Miethke
P Brennan
R Hill
(number)
160,804(i)
26,786(i)
-
38,572(i)
107,143
107,143
440,448
Received during
the year as
compensation
(number)
-
-
-
-
-
-
-
Exercised during
the year(ii)
Other changes
during the year
Balance at end
of year
(number)
(160,804)
(26,786)
-
(38,572)
(107,143)
(107,143)
(440,448)
(number)
-
(number)
-
-
-
-
-
-
-
-
-
-
-
-
-
(i) Refer to item “3D Share Rights for Discretionary Fee Reduction” on page 43.
(ii) During the current financial year all Share Rights vested.
Remuneration Report (audited) 46 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
C. Options in Calidus Resources Limited Held by each KMP
The number of Options in the Company held during the financial year by KMP of the Company, including their
related parties, are set out below.
2021
Options
Balance at
start of year
Granted as
remuneration
during the
year
Exercised
during the
year
Other
changes
during the
year
Balance at
end of year
Vested and
exercisable
Not vested
Name
D Reeves
(number)
3,150,000
(number)
-
(number)
(1,650,000)(i)(ii)
(number)
-
(number)
-
(number)
1,500,000
M Connelly
300,000
K Coughlan
200,000
A Miethke
200,000
-
-
-
(100,000)(iii)
-
(200,000)(iv)
J Ciganek
-
200,000
-
P Brennan
2,850,000
R Hill
2,850,000
-
-
(1,500,000)(i)(ii)
(1,500,000)(i)(ii)
D Russell
-
600,000
-
-
-
-
-
-
-
-
(number)
1,500,000
200,000
200,000
-
200,000
66,667(iii)
133,333
-
200,000
1,350,000
1,350,000
600,000
-
-
-
-
-
-
200,000
1,350,000
1,350,000
600,000
9,550,000
800,000
(4,950,000)
-
5,400,000
66,667
5,333,333
(i) First performance condition of the Incentive Options was achieved.
(ii) Exec Options vest following 12 months of continuous service.
(iii) 1/3 of the NED Options vests every 12 months.
(iv) On 27 July 2020, the Board resolved that it would permit all of the NED Options issued to Adam Miethke in the prior financial year to
vest under a good leaver exception.
D. Performance Rights in Calidus Resources Limited Held by each KMP
The number of Performance Rights in the Company held during the financial year by KMP of the Company,
including their related parties, are set out below.
2021
Performance
Rights
Balance at
start of year
Granted as
remuneration
during the
year
Exercised
during the
year
Other
changes
during the
year
Balance at
end of year
Vested and
exercisable
Not vested
Name
P Brennan
(number)
900,000
900,000
(number)
-
(number)
-
(number)
-
(number)
900,000
(number)
900,000
(number)
-
-
-
-
900,000
900,000
-
8. Other Transactions with KMP (or their related parties)
During the financial year ended 30 June 2021, the Group incurred the following amounts to related parties:
Office Rent - Wild West Enterprises Pty Ltd
The Company paid office rent to Wild West Enterprises
Pty Ltd of $74,300 in the year ended 30 June 2021,
(prior year to 30 June 2020: $81,961). Mr Reeves
(Managing Director of the Company) is a director of
Wild West Enterprises Pty Ltd. During the year Calidus
and Wild West Enterprises Pty Ltd renewed the sub-
lease agreement in respect of a portion of the office
space at 12/11 Ventnor Avenue, West Perth for an
initial period of two years with a one-time option to
extend for a further one year. The rent payable by
Calidus under the Office Lease Agreement is $5,600 per
month payable in advance. The Board considers that
the agreement to be on arms’ length and commercial
terms. Shareholders approved a reduction in the prior
year rent in return for Share Rights at a shareholder
meeting on 1 September 2020 (refer “Share Rights for
Discretionary Fee Reduction” on page 43).
Consulting Fees - Discovery Capital
Partners Pty Ltd
The Company paid corporate advisory fees to Discovery
Capital Partners Pty Ltd of $10,000 during the year
ended 30 June 2021 (prior year to 30 June 2020:
$119,679). Mr Miethke was a Non-Executive Director
of the Company and is a director of Discovery Capital
Pty Ltd. The Board considers that the Discovery Capital
engagement to be on arms’ length and commercial
terms. Adam Miethke resigned as a director on 27 July
2020. Shareholders approved a reduction in the prior
year fees in return for Share Rights at a shareholder
meeting on 1 September 2020.
Refer also to “Note 23: Related party transactions” on
page 75.
Remuneration Report (audited)Remuneration Report (audited) 46 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 47
9. Loans Made to KMP
No loans were made to KMP, including personally
related entities during the reporting period.
10. Voting and Comments at
the Company’s 2020 Annual
General Meeting
Of the total valid available votes lodged, the Company
received 99.68% of ‘FOR” votes on its remuneration
report for the 2020 financial year. The Company did
not receive specific feedback on its remuneration
practices.
11. Share Trading Policy
The trading of shares is subject to, and conditional
upon, compliance with the company’s employee
Share Trading Policy. The ability for an executive
to deal with an option or a right is restricted by the
terms of issue and the plan rules which do not allow
dealings in any unvested security. The Share Trading
Policy specifically prohibits an executive from entering
into transactions that limit the economic risk of
participating in unvested entitlements such as equity-
based remuneration schemes. The Share Trading
Policy can be viewed on the Company’s website.
END OF REMUNERATION REPORT
The lead auditor’s independence declaration under
section 307C of the Corporations Act 2001 (Cth) for
the year ended 30 June 2021 has been received and
can be found on page 49 of the annual report.
This Report of the directors, incorporating the
Remuneration Report, is signed in accordance with a
resolution of directors made pursuant to s.298(2) of
the Corporations Act 2001 (Cth).
Mark Connelly
Non-Executive Chairman
Dated this Thursday, 16 September 2021
Remuneration Report (audited) 48 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Auditor’s Independence
Declaration
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF CALIDUS RESOURCES LIMITED
As lead auditor of Calidus Resources Limited, I declare, that to the best of my knowledge and belief, during the
financial year ended 30 June 2021, there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Calidus Resources Limited and the entities it controlled during the financial year.
SL TAN
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth this 16th day of September 2021.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
Remuneration Report (audited) 48 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 49
Remuneration Report (audited) 50 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Consolidated Statement
of Profit or Loss and Other
Comprehensive Income
for the year ended 30 June 2021
Revenue
Other income
Total revenue
Personnel costs
Borrowing and finance costs
Depreciation and amortisation
Exploration expenditure written off
Share-based payment expense
Administration expenses
(Loss) / profit on financial assets
Profit / (loss) before tax
Income tax benefit / (expense)
Net loss for the year
Note
30 June 2021
30 June 2020
2
2
3
4
11, 14
12
20
$
-
185,952
185,952
(1,398,340)
(157,594)
(444,184)
(103,638)
(1,052,660)
(1,340,917)
(467,184)
(4,778,565)
5
-
$
363,917
234,381
598,298
(703,694)
(1,503)
(63,253)
(163,643)
(1,129,850)
(676,069)
45,368
(2,094,345)
-
(4,778,565)
(2,094,345)
Other comprehensive income, net of income tax
Other comprehensive loss for the year, net of tax
-
(4,778,565)
Total comprehensive loss attributable to members of the parent entity
(4,778,565)
-
(2,094,345)
(2,094,345)
Earnings per share:
Basic loss per share (dollars per share)
6
(0.02)
(0.01)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
Annual Report for the Financial Year ending 30 June 2021 | 51 Remuneration Report (audited) 50 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIConsolidated Financial Statements
Consolidated Statement
of Financial Position
as at 30 June 2021
Current Assets
Cash and cash equivalents
Other receivables
Financial assets
Other current assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation assets
Mine properties under development
Right-of-use assets
Other non-current assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease liabilities
Provisions
Total Current Liabilities
Non-Current Liabilities
Interest bearing liabilities
Lease liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
30 June 2021
30 June 2020
$
$
7
8
9
10
11
12
13
14
15
14
17
16
14
17
18
19
27,317,426
1,410,745
356,836
976,358
30,061,365
2,024,322
23,486,369
91,764,206
1,575,524
24,993
5,690,661
261,695
1,362,119
43,669
7,358,144
696,763
24,329,686
-
-
24,993
118,875,414
25,051,442
148,936,779
32,409,586
12,747,942
1,338,107
624,465
558,776
-
48,219
13,931,183
1,386,326
25,000,000
982,257
2,130,218
28,112,475
42,043,658
106,893,121
-
-
-
-
1,386,326
31,023,260
119,310,444
39,714,679
2,962,897
1,910,237
(15,380,220)
(10,601,655)
106,893,121
31,023,260
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
52 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIConsolidated Financial Statements
Consolidated Statement
of Changes in Equity
for the year ended 30 June 2021
Balance at 1 July 2019
Note
Issued
Capital
$
29,712,407
Reserves
Accumulated
Losses
Total
$
780,387
$
(8,507,310)
$
21,985,483
Loss for the year attributable owners of the parent
Other comprehensive income for the
year attributable owners of the parent
Total comprehensive income for the
year attributable owners of the parent
-
-
-
-
-
-
(2,094,345)
(2,094,345)
-
-
(2,094,345)
(2,094,345)
Transaction with owners, directly in equity
Shares issued during the year
10,557,000
-
Share based payments
Transaction costs
Balance at 30 June 2020
20
18
-
1,129,850
(554,728)
-
-
-
-
10,557,000
1,129,850
(554,728)
39,714,679
1,910,237
(10,601,655)
31,023,260
Balance at 1 July 2020
39,714,679
1,910,237
(10,601,655)
31,023,260
Loss for the year attributable owners
of the parent
Other comprehensive income for the
year attributable owners of the parent
Total comprehensive income for the
year attributable owners of the parent
-
-
-
-
-
-
(4,778,565)
(4,778,565)
-
-
(4,778,565)
(4,778,565)
Transaction with owners, directly in equity
Shares issued during the year
82,736,234
-
Share based payments
Transaction costs
Balance at 30 June 2021
20
18
-
1,052,660
(3,140,469)
-
-
-
-
82,736,234
1,052,660
(3,140,469)
119,310,444
2,962,897
(15,380,220)
106,893,121
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
52 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 53 Consolidated Financial Statements
Consolidated Statement
of Cash Flows
for the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers
Payments for suppliers and employees
Other/grant income
Interest received
Note
30 June 2021
30 June 2020
$
$
67,225
33,500
(2,364,230)
(1,951,217)
110,454
41,520
85,588
74,071
Net cash used in operating activities
7
(2,145,031)
(1,758,058)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for mine properties under development
Payments for acquisition of Blue Spec Project
Proceeds from sale of financial assets
Purchase of plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs related to issue of shares
Proceeds from exercise of options
Proceeds from borrowings
Transaction costs related to borrowings
Repayment of lease liabilities
Net cash provided by financing activities
Net increase in cash held
Cash and cash equivalents at the beginning of the year
(4,987,437)
(6,240,149)
(49,940,857)
(12,700,000)
533,547
(414,234)
-
-
322,410
(645,014)
(67,508,981)
(6,562,753)
72,072,280
(3,139,749)
952,500
25,000,000
(3,228,225)
(376,029)
91,280,777
21,626,765
5,690,661
9,158,750
(536,397)
1,243,750
-
-
-
9,866,103
1,545,292
4,145,369
5,690,661
Cash and cash equivalents at the end of the year
7
27,317,426
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
54 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIConsolidated Financial Statements
Notes to the Consolidated
Financial Statements
for the year ended 30 June 2021
Note 1: Statement of significant accounting policies
The consolidated financial statements for the year
ended 30 June 2021, comprises Calidus Resources
Limited (Calidus or the Company) and controlled
entities (collectively the Group). Calidus is a listed
public company limited by shares, incorporated and
domiciled in Australia.
The separate financial statements of Calidus, as the
parent entity, have not been presented with this
financial report as permitted by the Corporations Act
2001 (Cth).
These financial statements are general purpose
financial statements which have been prepared in
accordance with Australian Accounting Standards
and Interpretations of the Australian Accounting
Standards Board (AASB) and International Financial
Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and
the Corporations Act 2001 (Cth). Compliance with
Australian Accounting Standards ensures that the
financial statements and notes also comply with IFRS
as issued by the IASB.
The financial statements were authorised for issue on
16 September 2021 by the directors of the Company.
A. Basis of preparation
The financial statements comprise the consolidated
financial statements of the Group. For the purposes
of preparing the consolidated financial statements,
the Group is a for-profit entity. Material accounting
policies adopted in the preparation of these financial
statements are presented below and have been
consistently applied unless otherwise stated.
i. Historical cost convention
The financial statements have been prepared under
the historical cost convention modified by the
revaluation of selected non-current assets, and
financial assets and financial liabilities for which the fair
value basis of accounting has been applied.
ii. Use of estimates and judgments
The preparation of consolidated financial statements
requires management to make judgements, estimates
and assumptions that affect the application of policies
and reported amounts of assets and liabilities, income
and expenses. These estimates and associated
assumptions are based on historical experience and
various factors that are believed to be reasonable under
the circumstances, the results of which form the basis
of making the judgements about carrying values of
assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these
estimates. Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in any future period affected.
iii. Comparative figures
Where required by AASBs comparative figures
have been adjusted to conform with changes in
presentation for the current financial year. Where the
Group retrospectively applies an accounting policy,
makes a retrospective restatement or reclassifies
items in its financial statements, an additional (third)
statement of financial position as at the beginning
of the preceding period in addition to the minimum
comparative financial statements is presented.
B. Accounting policies
Except where stated below, the Group has consistently
applied accounting policies to all periods presented
in the financial statements. The Group has considered
the implications of new and amended Accounting
Standards applicable for annual reporting periods
beginning after 1 July 2020 as per (d) below.
C. Principles of consolidation
As at the reporting date, the assets and liabilities
of the Parent and all controlled entities have
been incorporated into the consolidated financial
statements as well as their results for the year then
ended.
i. Business Combinations
Business combinations are accounted for using the
acquisition method as at the acquisition date, which is
the date on which control is transferred to the Group.
The Group measures goodwill at the acquisition date as:
ā the fair value of the consideration transferred; plus
ā the recognised amount of any non-controlling
interests in the acquired entity; plus
ā if the business combination is achieved in stages,
the fair value of the existing equity interest in the
acquiree;
less
ā the net recognised amount of the identifiable assets
acquired and liabilities assumed.
54 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 55
Note 1: Statement of significant accounting policies continued…
When the excess is negative, a bargain purchase gain
is recognised immediately in profit or loss.
The consideration transferred does not include
amounts related to settlement of pre-existing
relationships. Such amounts are generally recognised
in profit or loss.
Costs related to the acquisition, other than those
associated with the issue of debt or equity securities,
that the Group incurs in connection with a business
combination are expensed as incurred.
Any contingent consideration payable is recognised
at fair value at the acquisition date. If the contingent
consideration is classified as equity, it is not
remeasured and settlement is accounted for within
equity. Otherwise, subsequent changes to the fair
value of the contingent consideration are recognised
in profit or loss.
ii. Subsidiaries
Subsidiaries are entities controlled by the Group. The
financial statements of subsidiaries are included in the
consolidated financial statements from the date that
control commences until the date that control ceases.
The accounting policies of subsidiaries have been
changed when necessary to align them with the
policies adopted by the Group. Losses applicable
to the non-controlling interests in a subsidiary are
allocated to the non-controlling interests even if doing
so causes the non-controlling interests to have a
deficit balance.
A list of controlled entities is contained in “Note 21:
Controlled entities” on page 75.
iii. Loss of control
Upon the loss of control, the Group derecognises
the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of
equity related to the subsidiary. Any surplus or deficit
arising on the loss of control is recognised in profit or
loss. If the Group retains any interest in the previous
subsidiary, then such interest is measured at fair value
at the date control is lost. Subsequently it is accounted
for as an equity-accounted investee or as an available-
for-sale financial asset depending on the level of
influence retained.
iv. Transactions eliminated on consolidation
All intra-group balances and transactions, and any
income and expenses arising from intra-group
transactions, are eliminated in full in preparing the
consolidated financial statements.
D. Application of new and revised
accounting standards
In the period ended 30 June 2021, the Group has
reviewed and adopted all the new and revised
Standards and Interpretations issued by the AASB that
are relevant to its operations and effective for annual
reporting periods beginning on or before 1 July 2020.
These standards did not materially affect the Group’s
financial statements for the year ended 30 June 2021.
Any new, revised or amending Accounting Standards
or Interpretations that are not yet mandatory have not
been early adopted.
There are no other standards that are not yet effective
and that would be expected to have a material impact
on the entity in the current or future reporting period
and on foreseeable future transactions.
E. Critical accounting estimates
and judgments
Management discusses with the Board the
development, selection and disclosure of the Group’s
critical accounting policies and estimates and the
application of these policies and estimates. The
estimates and judgements that have a significant
risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
financial year are discussed below.
i.
Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward
where right of tenure of the area of interest is current.
Tenement acquisition costs are initially capitalised.
Refer to the accounting policy stated in “Note 12:
Exploration and evaluation assets” on page 64. The
carrying value of capitalised expenditure at reporting
date is $23,486,369 (30 June 2020: $24,329,686).
The ultimate recoupment of the value of the exploration
and evaluation assets and mine properties is dependent
on successful development and commercial exploitation
or alternatively, sale, of the underlying mineral exploration
properties or where activities in the area have not yet
reached a stage, which permits reasonable assessment
of the existence of economically recoverable reserves.
The Group undertakes at least on an annual basis a
comprehensive review for indicators of impairment
of these assets. There is significant estimation and
judgement in determining the inputs and assumptions
used in determining the recoverable amounts.
The key areas of estimation and judgement that are
considered in this review include:
ā Recent drilling results and reserves and resource
estimates;
ā Environmental issues that may impact the
underlying tenements;
ā The estimated market value of assets at the
review date;
ā Independent valuations of underlying assets that
may be available;
ā Fundamental economic factors such as gold
prices, exchange rates and current and anticipated
operating costs in the industry; and
ā The Group’s market capitalisation compared to its
net assets.
Notes to the Consolidated Financial Statements 56 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 1: statement of significant accounting policies continued…
be tested individually are grouped together into the
smallest group of assets that generates cash inflows
from continuing use that are largely independent of
the cash inflows of other assets or groups of assets
(the “cash-generating unit”).
An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses are
recognised in the statement of profit or loss and other
comprehensive income. Impairment losses recognised
in respect of cash-generating units are allocated first
to reduce the carrying amount of any goodwill and
then to reduce the carrying amount of the other assets
in the unit (group of units) on a pro-rata basis.
Impairment losses recognised in prior periods are
assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not
exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no
impairment loss had been recognised. An impairment
loss in respect of goodwill is not reversed.
iv. Taxation
Balances disclosed in the financial statements and the
notes thereto, related to taxation, are based on the
best estimates of directors. These estimates take into
account both the financial performance and position
of the company as they pertain to current income
taxation legislation, and the directors understanding
thereof. No adjustment has been made for pending
or future taxation legislation. The current income
tax position represents that directors’ best estimate,
pending an assessment by tax authorities in relevant
jurisdictions. The Directors have considered it prudent
not to bring to account the deferred tax asset of
income tax losses until it is probable of deriving
assessable income of a nature and amount to enable
such benefit to be realised. Refer to “Note 5: Income
tax” on page 59.
v. Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the
impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the Group based on known
information. This consideration extends to the nature
of the products and services offered, customers,
supply chain, staffing and geographic regions in
which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently
appear to be either any significant impact upon the
financial statements or any significant uncertainties
with respect to events or conditions which may
impact the Group unfavourably as at the reporting
date or subsequently as a result of the Coronavirus
(COVID-19) pandemic.
Information used in the review process is rigorously
tested to externally available information as
appropriate.
Accumulated costs in relation to an abandoned area
are written off in full against profit in the year in which
the decision to abandon the area is made
ii. Mine properties under development
Mine properties under development relates to costs
incurred to access and exploit a mineral resource and
includes:
ā Reclassified exploration and evaluation assets;
ā the costs incurred in preparing mines for
production including plant and equipment under
construction;
ā Pre-commercial production operating costs (net of
pre-commercial production income);
ā Mine closure and rehabilitation assets.
The Group assesses the stage of each mine under
development to determine when a mine moves into
the production phase, this being when the mine is
substantially completed and ready for its intended
use. This point is commonly referred to as the
attainment of commercial production. On attainment
of commercial production, capitalised mine properties
under development are transferred to property, plant
and equipment and mine properties and revenues
and expenditures of an operating nature cease to be
capitalised and commence being recognised in profit
and loss or the cost of inventory. It is also the point
at which the depreciation and amortisation of the
development assets commences.
The criteria used to assess the start date of commercial
production are determined based on the unique
nature of the mine development project, such as the
complexity of the project and its location. The Group
considers various relevant criteria to assess when the
production phase is considered to have commenced.
The group uses the unit-of-production basis when
depreciating / amortising life of-mine specific assets
which results in a depreciation / amortisation charge
proportionate to the depletion of the anticipated
remaining life-of-mine production. Each item’s
economic life, which is assessed annually, has due
regard for both its physical life limitations and to
present assessments of the available resource of the
mine property at which it is located.
Impairment of assets
iii.
The carrying amounts of assets in the development
or production phase are reviewed at each reporting
date to determine whether there is any indication of
impairment. If any such indication exists, then the
asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-
generating unit is the greater of its value in use and
its fair value less costs of disposal. In assessing this,
the estimated future cash flows are discounted to
their present value using a discount rate that reflects
current market assessments of the time value of
money and the risks specific to the asset. For the
purpose of impairment testing, assets that cannot
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 56 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 57
Note 1: Statement of significant accounting policies continued…
vi. Share based payment transactions
The group measures the cost of equity-settled
transactions with employees 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 internal valuation using a Black-Sholes model,
applying the assumptions detailed in “Note 20: Share-
based payments” on page 71. The fair value of
performance rights is determined by the share price
at the date of valuation and consideration of the
probability of the vesting condition being met.
vii. Rehabilitation provision
The Group assesses site rehabilitation liabilities on
an annual basis. The provision recognised is based
on an assessment of the estimated cost of closure
and reclamation of the areas discounted to present
value. Significant estimation is required in determining
the provision for site rehabilitation. Factors such as
future development/exploration activity, changes in
the costs of goods and services required to complete
restoration activity and changes to the legal and
regulatory framework can all affect the timing and
ultimate cost to rehabilitate sites where mining and/or
exploration activities have previously taken place.
viii. Hedging
In conjunction with the financing facility negotiated
with Macquarie Bank Limited, the Company has
entered into forward gold contracts for the delivery
of 125,000 oz at a delivery price of A$2,355 per
ounce spread over the term of the facility from
September 2022 to September 2025 and representing
approximately 19% of planned production of the
Warrawoona Gold Project. These forward sales
contracts are not treated as derivatives and fair valued
in the financial statements as they fall within the
own use exemption of AASB 9 Financial Instruments.
Should the Company fail to settle these contracts by
physical delivery, then it may be required to account
for the fair value of a portion, or potentially all of, the
existing contracts in the financial statements.
Note 2: Revenue and other income
A. Revenue
Financial assets received
B. Other income
Other
2021
$
-
-
2020
$
363,917
363,917
144,432
160,310
Interest income
41,520
74,071
185,952
234,381
Included in Other are Cash Flow Boosts from the ATO
of $92,954 (2020: $88,588).
Note 3: Personnel costs
Director fees
Superannuation
Wages and salaries
Other employment related costs
A. Revenue
Revenues represent revenue generated from external
customers.
Revenue from the sale of goods is measured at the fair
value of the consideration received or receivable, net
of returns and allowances. Revenue is recognised in
the income statement when the significant risks and
rewards of ownership have been transferred to the
buyer. No revenue is recognised if there are significant
uncertainties regarding recovery of the consideration
due or there is a risk of return of goods or there is
continuing management involvement with the goods.
All revenue is stated net of the amount of value added
taxes.
B. Interest income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will flow
to the Group and the amount of revenue can be reliably
measured. Interest income is accrued on a time basis,
by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through
the expected life of the financial asset to that asset’s net
carrying amount on initial recognition.
2021
$
403,500
64,842
459,504
470,494
1,398,340
2020
$
339,325
24,068
247,396
92,905
703,694
Notes to the Consolidated Financial Statements 58 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 4: Borrowing and finance costs
Note
Interest expense
Amortisation of capitalised borrowing costs
13
Interest expense on lease liabilities
Note 5: Income tax
A. Income tax expense / (benefit)
Current tax
Deferred tax
Relating to origination and reversal of temporary differences
Deferred tax expense / (benefit) not recognised
Income tax expense / (benefit) reported in income statement
2021
$
2,425
81,301
73,868
157,594
2020
$
1,503
-
-
1,503
2021
$
2020
$
(2,894,432)
2,894,432
(1,423,386)
1,423,386
-
(2,117,838)
2,117,838
139,044
(139,044)
-
B. Reconciliation of income tax expense / (benefit) to prima facie tax payable
The prima facie tax payable / (benefit) on loss from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Accounting profit / (loss) before tax from continuing operations
Prima facie tax on operating loss at 26% (2020: 27.5%)
(4,778,565)
(1,242,427)
(2,094,345)
(575,945)
Add / (subtract) the tax effect of:
Non-deductible expenses
Deferred tax assets / (liabilities) not brought to account
Income tax expense / (benefit) attributable to operating loss
C. Deferred tax assets
Tax losses
Other temporary differences
Set-off deferred tax liabilities
Net deferred tax assets
Less deferred tax assets not recognised
Net tax assets
D. Tax losses and deductible temporary differences
Unused tax losses and deductible temporary differences for which no
deferred tax asset has been recognised:
262,919
979,508
-
12,834,933
3,103,615
15,938,548
(7,780,338)
8,158,210
(8,158,210)
-
288,383
287,562
-
10,135,309
957,999
11,093,308
(4,358,484)
6,734,824
(6,734,824)
-
47,924,109
36,251,877
47,924,109
36,251,877
Potential deferred tax assets attributable to tax losses have not been brought to account at 30 June 2021 because
the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this
point in time. These benefits will only be obtained if:
(a) the company derives future assessable income of a nature and of an amount sufficient to enable the benefits
to be utilised;
(b) the company continues to comply with the conditions for deductibility imposed by law; and
(c) no changes in income tax legislation adversely affect the company in utilising the benefits.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 58 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 59
Note 5: Income tax continued…
The corporate tax rate for eligible companies will
reduce from 26% to 25% for the financial year ended
30 June 2022 providing certain turnover thresholds
and other criteria are met. Deferred tax assets and
liabilities are required to be measured at the tax rate
that is expected to apply in the future income year
when the asset is realised or the liability is settled.
The directors have determined that the deferred tax
balances be measured at the tax rates stated.
Current tax assets and liabilities for the current and
prior period 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 balance date.
Deferred income tax is provided on all temporary
differences at the statement of financial position date
between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
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:
ā 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; or
ā when the deductible temporary difference is
associated with investments in subsidiaries,
associates or interests in joint ventures, in which
case a deferred tax asset is only recognised to
the extent that it is probable that the temporary
difference will reverse in the foreseeable future and
taxable profit will be available against which the
temporary difference can be utilised.
The carrying amount of deferred income tax assets
is reviewed at each balance 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 balance 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 year
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 balance 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.
Note 6: Earnings Per Share (EPS)
2021
$
2020
$
A. Reconciliation of earnings to profit or loss
(Loss) / profit for the year
(4,778,565)
(Loss) / profit used in the calculation of basic and diluted EPS
(4,778,565)
(2,094,345)
(2,094,345)
B. Weighted average number of ordinary shares outstanding during
the year used in calculation of basic EPS
289,827,437
191,358,195
C. Earnings per share
Basic EPS (dollars per share)
(0.02)
(0.01)
D. At the end of the 2021 financial year, the Group has 7,770,950 unissued shares under options (2020:
15,788,500), 900,000 performance rights on issue (2020: 2,100,000), 0 share rights (2020: 497,903). The
Group does not report diluted earnings per share on annual losses generated by the Group. During the 2021
financial year the Group’s unissued shares under option and partly-paid shares were anti-dilutive.
Basic profit/(loss) per share is calculated as net profit
or loss attributable to members of the parent, 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 profit/(loss) per share is calculated as net profit or
loss attributable to members of the parent, adjusted for:
ā costs of servicing equity (other than dividends) and
preference share dividends;
ā the after tax effect of dividends and interest
associated with the dilutive potential ordinary shares
that have been recognised as expenses; and
ā 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.
Notes to the Consolidated Financial Statements 60 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 7:
Cash and cash equivalents
2021
$
2020
$
A. Current
Cash at bank
27,317,426
5,690,661
27,317,426
5,690,661
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.
B. Reconciliation of cash
Cash and cash equivalents
C. Cash flow information
For the purposes of the Statement of Cash Flows,
cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding
bank overdrafts.
Cash at bank earns interest at floating rates based on
daily bank deposit rates.
The Group’s exposure to interest rate risk and a sensitivity
analysis for financial assets and liabilities are disclosed in
“Note 26: Financial risk management” on page 77.
Cash at the end of the financial year as shown in the
statement of cash flows is reconciled to items in the
statement of financial position as follows:
Notes
2021
$
2020
$
27,317,426
27,317,426
5,690,661
5,690,661
i. Reconciliation of cash flow from operations to (loss)/profit after income tax
Loss after income tax
Non-cash flows in result:
Depreciation and amortisation
Share-based payments
Exploration write off/Impairment expense
(loss)/profit on financial assets
Changes in operating assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
Cash flows from operations
20
(4,778,565)
(2,094,345)
444,010
1,052,660
103,638
467,184
(81,948)
43,669
82,648
521,673
62,560
1,129,849
163,643
(409,285)
2,418
(86,874)
(543,216)
17,192
(2,145,031)
(1,758,058)
Note 8: Trade and other receivables
A. Current
Trade receivables
GST receivable
2021
$
-
1,410,745
1,410,745
2020
$
36,575
225,120
261,695
Expected credit losses
The Group applies the AASB 9 simplified model of
recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant
financing component.
Where applicable, in measuring the expected credit
losses, the trade receivables are assessed on a
collective basis as they possess shared credit risk
characteristics. They are grouped based on the days
past due and also according to the geographical
location of customers.
The expected loss rates are based on the payment
profile for past sales (where applicable) as well as
the corresponding historical credit losses during that
period. The historical rates are adjusted to reflect
current and forwarding looking macroeconomic
factors affecting the customer’s ability to settle the
amount outstanding.
Trade receivables are written off when there is no
reasonable expectation of recovery. Failure to make
payments within 180 days from the invoice date
and failure to engage with the Group on alternative
payment arrangement amongst others is considered
indicators of no reasonable expectation of recovery.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 60 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 61
Note 9: Financial assets
Shares held in listed investments(i)
(i) Shares held in Pacton Gold Inc.
2021
$
356,836
356,836
2020
$
1,362,119
1,362,119
At initial recognition, the Group measures a financial asset at its fair value. Transaction costs are expensed in profit
or loss. Changes in the fair value of financial assets are recognised in other gains / (losses) in the consolidated
statement of profit or loss as applicable.
Note 10: Other current assets
Prepayments
Note 11: Property, plant, and equipment
A. Non-current
Motor vehicles
Accumulated depreciation
Computer and software
Accumulated depreciation
Plant and equipment(i)
Accumulated depreciation
Buildings(ii)
Total property, plant and equipment
2021
$
976,358
976,358
2021
$
132,786
(91,608)
41,178
171,852
(68,265)
103,587
1,089,128
(76,192)
1,012,936
866,621
2,024,322
2020
$
43,669
43,669
2020
$
76,104
(65,834)
10,270
48,056
(36,000)
12,056
87,951
(52,635)
35,316
639,121
696,763
(i) Value of Blue Spec Project plant and equipment acquired.
(ii) Depreciation on buildings will commence once commercial production is declared at the Warrawoona Gold Projec
Notes to the Consolidated Financial Statements 62 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 11: Property, plant and equipment continued…
B. Movements in carrying amounts
Motor
vehicles
Computer
and
software
Plant and
equipment
Buildings
Total
$
$
$
$
$
Year Ended 30 June 2021
Carrying amount at the beginning of year
Additions
Assets acquired via project acquisition(i)
10,270
56,682
-
12,056
123,796
-
35,316
6,430
994,747
Depreciation expense
(25,774)
(32,265)
(23,557)
639,121
696,763
227,500
-
-
414,408
994,747
(81,596)
Carrying amount at 30 June 2021
41,178
103,587
1,012,936
866,621
2,024,322
Year Ended 30 June 2020
Carrying amount at the beginning of year
35,638
Additions
-
23,979
3,331
54,692
3,255
-
639,121
Depreciation expense
(25,368)
(15,255)
(22,630)
-
114,309
645,707
(63,253)
Carrying amount at 30 June 2020
10,270
12,056
35,316
639,121
696,763
(i) Value of Blue Spec Project plant and equipment acquired.
(ii) Depreciation on buildings will commence once commercial production is declared at the Warrawoona Gold Project.
Property, plant and equipment is stated at cost less
accumulated depreciation and any impairment
losses. The cost of the asset includes expenditure
that is directly attributable to the acquisition of the
asset. The cost of self-constructed assets includes
the cost of materials and direct labour, any other
costs directly attributable to bringing the asset to a
working condition for its intended use, and the costs
of dismantling and removing the items and restoring
the site on which they are located, and appropriate
proportion of production overheads.
Where parts of an item of property, plant and
equipment have different useful lives, they are
accounted for as separate items of property, plant and
equipment.
An item of plant and equipment is de-recognised upon
disposal or when no further future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or
loss in the year the asset is de-recognised.
The carrying amount of plant and equipment is
reviewed annually by directors to ensure it is not
in excess of the recoverable amount from these
assets. The recoverable amount is assessed on the
basis of the expected net cash flows that will be
received from the assets employment and subsequent
disposal. The expected net cash flows are discounted
to their present values in determining recoverable
amounts. 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 with the
impairment loss recognised in the statement of profit
or loss and other comprehensive income.
Depreciation rates and methods are reviewed annually
for appropriateness. The depreciation rates used for
the current and comparative year are:
2021
$
2020
$
Plant and equipment
25%-50% 25%-50%
Computer and software
Motor vehicles
33%
33%
33%
33%
The assets’ residual values, useful lives and
amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 63
Note 12: Exploration and evaluation assets
A. Non-current
Exploration expenditure capitalised:
Exploration and evaluation
Net carrying value
B. Movements in carrying amounts
Balance at the beginning of year
Expenditure capitalised during the year
Assets acquired via project acquisition (i)
Transfer to mine properties under development
Exploration expenditure write off
Carrying amount at the end of year
(i) Value of Blue Spec Project exploration and evaluation assets acquired
2021
$
2020
$
23,486,369
23,486,369
24,329,686
24,329,686
24,329,686
7,338,408
18,900,195
(26,978,282)
18,145,519
6,347,810
-
-
(103,638)
(163,643)
23,486,369
24,329,686
The recoupment of costs carried forward in relation to
areas of interest in the exploration and evaluation phases
are dependent on the successful development and
commercial exploitation or sale of the respective areas.
Exploration and evaluation expenditures in relation to
each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they
are incurred where the following conditions are satisfied:
ā the rights to tenure of the area of interest are
current; and
ā at least one of the following conditions is also met:
(i) 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
(ii) exploration and evaluation activities in the area
of interest have not at the balance date reached
a stage which permits a reasonable assessment
of the existence or otherwise of economically
recoverable reserves, and active and significant
operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are assessed for
impairment when facts and circumstances suggest
that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount.
The recoverable amount of the exploration and
evaluation asset (for the cash generating unit(s) to
which it has been allocated being no larger than the
relevant area of interest) is estimated to determine
the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not
exceed the carrying amount that would have been
determined had no impairment loss been recognised
for the asset in previous years.
Where a decision has been made to proceed with
development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested
for impairment and the balance is then reclassified to
development assets.
The Group’s exploration properties may be subjected
to claim(s) under Native Title (or jurisdictional
equivalent), or contain sacred sites, or sites of
significance to the indigenous people of Australia.
As a result, exploration properties or areas within the
tenement may be subject to exploration restrictions,
mining restrictions and/or claims for compensation.
At this time, it is not possible to quantify whether such
claims exist, or the quantum to such claims.
Notes to the Consolidated Financial Statements 64 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 13: Mine properties under development
Movements in carrying amounts
Balance at the beginning of year
Expenditure capitalised during the year
Transfer from exploration and evaluation
Capitalised borrowing costs
Change in rehabilitation provision
Amortisation
Carrying amount at the end of year
Mine properties under development represents the
costs incurred in preparing mines for production
and includes prior exploration and evaluation costs,
plant and equipment under construction, capitalised
borrowing costs, operating costs incurred and
operating revenues before commercial production
commences, and mine closure and rehabilitation assets
recognised. These costs and revenues are capitalised to
the extent they are expected to be recouped through
successful exploitation of the related mining leases.
Once commercial production commences, these costs
are transferred to property, plant and equipment and
mine properties, as relevant, and are depreciated and
amortised using the units-of-production method based
on the estimated economically recoverable reserves to
which they relate or are written off if the mine property
is abandoned.
Note 14: Leases
A. Right-of-use assets
Balance at the beginning of the year
Additions(i)
Depreciation charge
Net carrying value
B. Lease liabilities
Current
Lease liabilities(i)
Total current lease liabilities
Non-current
Lease liabilities(i)
Total non-current lease liabilities
Total lease liabilities
2021
$
-
57,986,277
26,978,282
5,337,256
1,543,692
(81,301)
91,764,206
2020
$
-
-
-
-
-
-
-
Capitalised borrowing costs represent interest and
commitment fees on drawn and undrawn amounts of
debt facilities, as well as all transaction costs directly
attributable to establishing a debt facility. Interest and
commitment fees are capitalised to qualifying assets,
in this case Mine properties under development,
until the point in time that commercial production
is declared, following commercial production
commencing, interest and commitment fees will
be expensed as incurred. Capitalised interest and
commitment fees are amortised using the units-of-
production method. Capitalised transaction costs
directly attributable to establishing a debt facility are
amortised on a straight-line basis over the expected
life of the debt facility.
2021
$
2020
$
-
1,938,112
(362,588)
1,575,524
624,465
624,465
982,257
982,257
1,606,722
-
-
-
-
-
-
-
-
-
(i) The Group has renewed the sub-lease agreement for office premises in West Perth, Western Australia during the financial year
for a period of two years with a one-time option to extend for a further year. In addition, various agreements have been entered
for Warrawoona Project infrastructure with 36-month durations. Right-of-use assets and corresponding lease liabilities have been
recognised for these agreements.
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 65
Note 14: Leases continued…
A right-of-use asset is recognised at the
commencement date of a lease. The right-of-
use asset is measured at cost, which comprises
the initial amount of the lease liability, adjusted
for, as applicable, any lease payments made at or
before the commencement date net of any lease
incentives received, any initial direct costs incurred,
and an estimate of costs expected to be incurred for
dismantling and removing the underlying asset.
Right-of-use assets are depreciated on a straight-line
basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the
shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the
depreciation is over its estimated useful life. Right-of-
use assets are subject to impairment or adjusted for
any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use
asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of
low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be
made over the term of the lease, discounted using
the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental
borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate,
amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The
variable lease payments that do not depend on an
index or a rate are expensed in the period in which
they are incurred.
Lease liabilities are measured at amortised cost using
the effective interest method. The carrying amounts
are remeasured if there is a change in the following:
future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term;
certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an
adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the
right-of-use asset is fully written down.
Note 15: Trade and other payables
Current
Unsecured
Trade payables
Accruals
Accrued finance costs
Employment related payables
2021
$
2020
$
2,803,207
9,072,490
692,065
180,180
12,747,942
1,211,870
21,000
-
105,237
1,338,107
Trade payables, accruals and employment related payables are non-interest bearing and are usually settled within
30 days.
Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to
make future payments in respect of the purchase of these goods and services.
Trade and other payables and provisions are presented as current liabilities unless payment is not due within 12
months.
Note 16: Interest bearing liabilities
Non-current
Secured
Bank loans
2021
$
25,000,000
25,000,000
2020
$
-
-
Notes to the Consolidated Financial Statements 66 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 16: Interest bearing liabilities continued…
A $110 million project loan facility denominated in
AUD has been entered into with Macquarie Bank
Limited for the development of the Warrawoona Gold
Project, which is secured against the assets of Keras
Pilbara (Gold) Pty Ltd and Calidus Resources Limited.
The facilities comprise a Senior Secured Loan of
$85 million and a Mezzanine Facility of $25 million.
Interest is charged at commercial rates and scheduled
monthly repayments commence on 30 June 2022 and
cease September 2025.
At 30 June 2021 the balance drawn down to date was
$25 million, with $85 million available under the facility
subject to ongoing compliance with debt covenants
(2020: balance due was $0). Estimates of future
cash flows used for classification of the debt facility
between current and non-current may differ from
the actual outcomes in the next financial year due
to sweep provisions of the loan agreement in event
project cashflows exceed expectations.
Note 17: Provisions
Current
Payroll tax
Annual leave
Non-current
Long service leave
Rehabilitation
Provision for rehabilitation
Balance at the beginning of the period
Provisions made during the year – Warrawoona Gold Project
Provision assumed via project acquisition(i)
(i) Value of Blue Spec Project rehabilitation liability acquired
2021
$
359,648
199,128
558,776
11,116
2,119,102
2,130,218
-
1,543,692
575,410
2,119,102
2020
$
8,972
39,247
48,219
-
-
-
-
-
-
-
Provisions are recognised when the Group has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions
are not recognised for future operating losses. The
expense relating to any provision is presented in the
statement of profit or loss and other comprehensive
income net of any reimbursement. Provisions are
measured at the present value or management’s best
estimate of the expenditure required to settle the
present obligation at the end of the reporting year.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects the risks specific to the liability.
The Group assesses site rehabilitation liabilities on an
annual basis. The provision recognised is based on
an assessment of the estimated cost of closure and
reclamation of the areas discounted to present value.
Significant estimation is required in determining the
provision for site rehabilitation. Factors such as future
development/exploration activity, changes in the costs
of good and services required to complete restoration
activity and changes to the legal and regulatory
framework can all affect the timing and ultimate cost
to rehabilitate sites where mining and/or exploration
activities have previously taken place.
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 67
Note 18: Issued capital
Fully paid ordinary shares at no par value
A. Ordinary shares
At the beginning of the year
Shares issued during the year:
Shares issued for tenement purchase
Performance shares conversion
Placement
Exercise of options
Share consolidation (One for ten)
Exercise of options
Shares in lieu of salary
Shares in lieu of directors’ fees
Shares in lieu of fees
Placement
Exercise of options
Shares issued to purchase royalty
Placement
Exercise of options
Receipt for employee shares previously
issued under holding lock
Share purchase plan
Shares issued to purchase royalty
Exercise of options
Placement
Shares issued for Blue Spec Acquisition
Exercise of options
Exercise of options
Exercise of options
Shares issued for Macquarie financing
Issue of debt advisor shares
Performance rights vested
2021
2020
2021
No.
399,928,347
No.
219,464,064
$
119,310,444
2020
$
39,714,679
219,464,064
1,578,887,024
39,713,959
29,712,407
-
-
-
-
5,000,000
275,000,000
281,250,000
6,750,000
-
-
-
-
154,500
-
9,000,000
158,750
219,464,064
2,146,887,024
39,713,959
39,025,657
-
-
214,689,064
4,775,000
238,259
155,983
103,661
49,019,608
200,000
4,000,000
62,500,000
488,500
-
5,290,279
750,000
150,000
31,250,000
13,333,333
200,000
4,000,000
5,200,000
3,100,000
240,000
244,660
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,000,000
-
2,240,000
31,875,000
-
112,500
2,698,000
375,000
-
12,500,000
5,733,333
40,000
800,000
-
1,240,000
122,400
-
-
1,243,750
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,139,749)
(554,728)
Transaction costs relating to share issues
-
At reporting date
399,928,347
219,464,064
119,310,444
39,714,679
Terms of ordinary shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held and in proportion to the amount paid up on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of the
share when a poll is called, otherwise each shareholder has one vote on a show of hands.
Notes to the Consolidated Financial Statements 68 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 18: Issued capital continued…
B. Options
At the beginning of the year
Options exercised
Options expired/cancelled
2021
No.
2020
No.
2021
$
2020
$
15,788,500
166,500,000
1,604,596
734,396
-
-
(6,750,000)
(70,000,000)
-
-
-
-
15,788,500
89,750,000
1,604,596
734,396
Share consolidation (one for ten)
-
8,975,000
-
-
Issue of options
Options exercised
At reporting date
2,220,950
11,588,500
1,052,660
870,200
(10,238,500)
(4,775,000)
-
-
7,770,950
15,788,500
2,657,256
1,604,596
C. Share rights and performance rights
At the beginning of the year
2,597,903
21,000,000
305,641
Issue of performance rights
-
-
-
2,597,903
21,000,000
305,641
Share consolidation (one for ten)
Issue of share rights
Exercise of performance rights
Exercise of share rights
At reporting date
D. Performance shares
At the beginning of the year
Performance shares converted
At reporting date
-
-
(1,200,000)
(497,903)
900,000
2,100,000
497,903
-
-
-
-
-
-
2,597,903
305,641
305,641
45,991
106,788
152,779
-
152,862
-
-
-
-
-
275,000,000
(275,000,000)
-
-
-
-
-
-
-
E. Capital management
The directors’ objectives when managing capital are
to ensure that the Group can maintain a capital base
to maintain investor, creditor and market confidence
and to sustain future development of the business. The
Board of Directors monitors the availability of liquid
funds in order to meet its short-term commitments.
The focus of the Group’s capital risk management
is the current working capital position against the
requirements of the Group in respect to its exploration,
development, operations, and corporate overheads.
The Group’s strategy is to ensure appropriate
liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate
capital raisings and/or debt facilities as required.
The working capital position of the Group were as
follows:
Cash and cash
equivalents
Trade and other
receivables
Trade and other
payables
Working capital
position
Note
2021
$
2020
$
7
8
27,317,426
5,690,661
1,410,745
261,695
12
(12,747,942)
(1,338,107)
15,980,229 4,614,249
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 69
Note 19: Reserves
Options reserve
Share rights and performance rights reserve
Note
18b
18c
A. Options reserve
Balance at the beginning of the financial year
Share based payments expense
20
Balance at the end of the financial year
2021
$
2,657,256
305,641
2,962,897
1,604,596
1,052,660
2,657,256
2020
$
1,604,596
305,641
1,910,237
734,396
870,200
1,604,596
The option reserve records items recognised as
expenses on the value of directors and employee
equity issues.
ā 170,000 unlisted options issued to a senior
employee exercisable at nil price expiring 12 August
2025;
At 30 June 2021, the following options are
outstanding:
ā 400,000 unlisted options issued to non-executive
directors exercisable at nil price expiring on or
before 27 December 2023;
ā 3,450,000 unlisted options issued to senior
executives exercisable at nil price expiring on or
before 27 December 2024;
ā 1,350,000 unlisted options issued to senior
executives exercisable at nil price expiring 30
January 2025;
ā 350,000 unlisted options issued to senior executives
exercisable at nil price expiring 4 June 2025;
ā 600,000 unlisted options issued to a senior executive
exercisable at nil price expiring 5 August 2025;
ā 167,500 unlisted options issued to a senior
employee exercisable at nil price expiring 11
December 2025;
ā 228,800 unlisted options issued to a senior
employee exercisable at nil price expiring 16
December 2025;
ā 200,000 unlisted options issued to a non-executive
director exercisable at nil price expiring 4 January
2025;
ā 417,650 unlisted options issued to senior employees
exercisable at nil price expiring 19 January 2023;
ā 167,000 unlisted options issued to employees
exercisable at nil price expiring 16 February 2024;
ā 270,000 unlisted options issued to employees
exercisable at nil price expiring 28 May 2024.
B. Share rights and performance rights reserve
Balance at the beginning of the financial year
Share based payments
Balance at the end of the financial year
2021
$
305,641
-
305,641
2020
$
45,991
259,650
305,641
At 30 June 2021, there are no share rights outstanding, and the following performance rights are outstanding:
ā 900,000 performance rights for Paul Brennan expiring 3 May 2022.
Notes to the Consolidated Financial Statements 70 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 20: Share-based payments
Options:
Share based payments – Key Management Personnel
Share based payments – other employees
Note
2021
$
646,018
406,642
Subtotal – share based payments (options)
20b
1,052,660
Performance rights:
Share based payments – Key Management Personnel
Subtotal – share based payments (employee shares)
Share rights:
Share based payments – Key Management Personnel
Share based payments – related party transactions
Share based payments – employee and contractor
Subtotal – share based payments (share rights)
-
-
-
-
-
-
Gross share-based transactions
1,052,660
2020
$
829,975
40,225
870,200
106,788
106,788
116,110
20,090
16,662
152,862
1,129,850
Equity-settled compensation
The fair value of options granted is recognised as an employee expense with a corresponding increase in equity.
The fair value is measured at grant date and spread over the period during which the employees become
unconditionally entitled to the options. The fair value of the options granted is measured using the Black-Scholes
pricing model, taking into account the terms and conditions upon which the options were granted. The amount
recognised is adjusted to reflect the actual number of share options that vest except where forfeiture is only due
to market conditions not being met.
A. Share-based payment arrangements in effect during the year
Employee securities incentive plan
During the year, the Company issued the following options with the terms and summaries below:
Number of Options
Date of Expiry
Exercise Price
Vesting Terms
600,000
170,000
167,500
228,800
200,000
417,650
167,000
270,000
5 August 2025
12 August 2025
11 December 2025
16 December 2025
4 January 2025
19 January 2023
16 February 2024
28 May 2024
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
First gold pour achieved at Warrawoona
First gold pour achieved at Warrawoona
First gold pour achieved at Warrawoona
First gold pour achieved at Warrawoona
1/3 each year for continuous service from grant date
First gold pour achieved at Warrawoona
First gold pour achieved at Warrawoona
First gold pour achieved at Warrawoona
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 71
Note 20: Share-based payments continued…
B. Summary of number of options and its value
A summary of the number of company options issued in both the current year and prior years to Key
Management Personnel and other employees that have an impact on share-based payments expense in the
current year are as follows:
Number of
shares
Key Management Personnel
David
Reeves
Mark
Connelly
Keith
Coughlan
Adam
Miethke
John
Ciganek
Paul
Brennan
Richard
Hill
Don
Russell
Other
employees
Various
Executive options
a. 388,500
options
b. 150,000
options
NED options
a. 700,000
options
150,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
150,000
N/A
N/A
88,500
N/A
N/A
150,000
N/A
N/A
N/A
300,000
200,000
200,000
N/A
N/A
N/A
N/A
N/A
N/A
2,700,000
N/A
N/A
1,450,000
N/A
2,700,000
N/A
N/A
Incentive options
a. 7,150,000
options
b. 2,700,000
options
c. 500,000
options
d. 600,000
options
e. 170,000
options
f. 167,500
options
g. 228,800
options
h. 200,000
options
i. 417,650
options
j. 167,000
options
k. 270,000
options
3,000,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
200,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
500,000
N/A
600,000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
170,000
N/A
167,500
N/A
228,800
N/A
N/A
N/A
417,650
N/A
167,000
N/A
270,000
Notes to the Consolidated Financial Statements 72 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 20: Share-based payments continued…
A summary of share-based payments expense for Key Management Personnel and other employees are as follows:
A$
Key Management Personnel
David
Reeves
Mark
Connelly
Keith
Coughlan
Adam
Miethke
John
Ciganek
Paul
Brennan
Richard
Hill
Don
Russell
Other
employees
Various
Executive options
a. 388,500
options
b. 150,000
options
NED options
a. 700,000
options
12,738
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
12,738
N/A
N/A
7,515
N/A
N/A
22,652
N/A
N/A
N/A
21,000
14,000
33,646
N/A
N/A
N/A
N/A
N/A
N/A
84,135
N/A
N/A
45,151
N/A
131,804
N/A
N/A
Incentive options
a. 7,150,000
options
b. 2,700,000
options
c. 500,000
options
d. 600,000
options
e. 170,000
options
f. 167,500
options
g. 228,800
options
h. 200,000
options
i. 417,650
options
j. 167,000
options
k. 270,000
options
93,484
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total – Key Management Personnel (A$)
Total – Employees (A$)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
16,209
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
94,875
N/A
203,612
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
57,162
N/A
42,464
N/A
52,098
N/A
N/A
N/A
70,446
N/A
24,348
N/A
12,584
646,018
406,642
Notes to the Consolidated Financial StatementsAnnual Report for the Financial Year ending 30 June 2021 | 73
Note 20: Share-based payments continued…
C. Movement in share-based payment arrangements during the year
A summary of the movements of all company options issued to Key Management Personnel as share-based
payments is as follows:
2021
2020
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
9,550,000
$0.00
16,000,000
Issued [Pre 10:1 consolidation]
Exercised [Pre 10:1 consolidation]
Expired/cancelled
Consolidation
Issued
Exercised
Outstanding at year-end
Exercisable at year-end
-
-
-
-
800,000
(4,950,000)
5,400,000
-
-
-
-
-
$0.00
$0.00
$0.00
$0.00
1,150,000
(1,000,000)
(600,000)
(14,400,000)
8,400,000
9,550,000
-
$0.03
$0.00
$0.30
$0.10
-
$0.00
$0.00
$0.00
(i) The weighted average exercise price of outstanding options at the end of the reporting year was nil.
(ii) The fair value of the options granted is deemed to represent the value of the employee services received over
the vesting period.
D. A Summary of the movements of all company options (excluding performance
rights) on issue is as follows:
2021
2020
Number of
options
Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Outstanding at the beginning of the year
15,788,500
$0.05
166,500,000
Exercised [Pre 10:1 consolidation]
Expired/cancelled
Consolidation
Issued
Exercised
Outstanding at year-end
Exercisable at year-end
-
-
-
2,220,950
(10,238,500)
7,770,950
-
-
-
-
$0.00
$0.08
$0.00
-
(6,750,000)
(70,000,000)
(80,775,00)
11,588,500
(4,775,000)
15,788,500
-
$0.280
$0.024
$0.035
-
$0.00
$0.25
$0.05
-
Notes to the Consolidated Financial Statements 74 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Note 21: Controlled entities
A. Ultimate parent entity
Calidus Resources Limited is the ultimate parent of the Group (refer to “Note 1C” on page 55).
B. Subsidiaries
The consolidated financial statements include the financial statements of the Parent and the subsidiaries set out in
the following table:
Keras (Gold) Australia Pty Limited
Keras (Pilbara) Gold Pty Limited
Calidus Otways Pty Limited
Calidus Blue Spec Pty Limited
Country of
incorporation
Class of shares
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Percentage owned
2021
100.0
100.0
100.0
100.0
2020
100.0
100.0
100.0
N/A
Note 22: Key Management Personnel (KMP)
A. Directors and Key Management
B. Key Management Personnel
Personnel
Compensation
The names are positions of KMP during the current
and prior financial year are as follows:
ā Mr David Reeves Managing Director
ā Mr Mark Connelly Non-Executive Chairman
ā Mr Keith Coughlan Non-Executive Director
ā Mr Adam Miethke Non-Executive Director
(resigned 27 July 2020)
ā Mr John Ciganek Non-Executive Director
(appointed 4 January 2021)
ā Mr Richard Hill
Chief Financial Officer
ā Mr Paul Brennan Project Development
ā Mr Don Russell
General Manager Warrawoona
(appointed 3 August 2020)
Details of Key Management Personnel remuneration
are contained in the audited Remuneration Report
in the Directors’ Report. A summary of total
compensation paid to Key Management Personnel
during the year is as follows:
Short-term employee
benefits
Post-employment
benefits
2021
$
2020
$
1,209,333
650,950
97,074
41,004
Share-based payments
646,018
946,085
Total
1,952,425
1,638,039
Note 23: Related party transactions
2021
$
2020
$
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
Wild West Enterprises Pty Ltd - Office Rent
Discovery Capital – Corporate Advisory and Capital Raising Fees
74,300
10,000
81,961
119,679
Refer to the Remuneration Report “8. Other Transactions with KMP (or their related parties)” on page 47 for
further information regarding the terms of the related party transactions.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 74 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 75
Note 24: Commitments
A. Exploration expenditure commitments
Exploration expenditure commitments represent tenement rentals and expenditure that may be required to be
met under relevant legislation should the Group wish to retain tenure on all current tenements in which the
Group has an interest.
Exploration expenditure commitments payable:
Not later than 12 months
Between 12 months and five years
Later than five years
Total Exploration tenement minimum expenditure requirements
B. Operating lease commitments
The Company leases assets for operations and its
office premises. As at 1 July 2019, with the adoption of
AASB 16, operating leases as previously defined under
AASB 117, have for the most part, been recognised and
included as lease liabilities with future commitments
disclosed in “Note 14: Leases” on page 65. Any leases
that did not meet the definition of finance leases,
were either short-term in nature or did not meet the
recognition requirements. The office lease expired
during the year and was subsequently renewed (refer
to “Note 23: Related party transactions” on page 75).
The disclosure of prior period operating commitments is
retained in these financial statements as follows:
2021
$
824,798
1,632,316
3,322,661
5,779,775
2020
$
572,780
1,046,789
1,864,078
3,483,647
2020
$
Operating lease commitments payable:
Not later than 12 months
42,600
Between 12 months and five years
Later than five years
-
-
Total operating lease requirements
42,600
C. Physical gold delivery commitments
As part of the risk management policy of the Group and in compliance with the conditions required by the
Group’s financier Macquarie Bank Limited (MBL), the group has entered into gold forward contracts to manage
the gold price of a proportion of anticipated gold sales. The contracts are accounted for as sales contracts with
revenue recognised once the gold has been delivered to MBL. The physical gold delivery contracts are considered
a contract to sell a non-financial item and therefore do not fall within the scope of AASB 9 Financial Instruments.
Hence no derivatives are recognised.
Between one and five years –
Fixed Forward Contracts
Gold for
physical
delivery
ounces
Contracted
gold sale price
Value of
committed
sales
Mark-to-
market
$
$
$
125,000
2,355
294,375,000
(4,373,263)
Mark-to-market has been calculated using the spot price of A$2,361 per ounce as at 30 June 2021.
Mark-to-market represents the value of the open contracts at balance date, calculated with reference to the gold
spot price at that date. A negative amount represents a valuation in the counterparty’s favour.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 76 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 77
Note 25: Operating segments
For management purposes, the Group’s operations
are organised into one operating segment domiciled
in the same country, which involves the exploration
and exploitation of gold minerals in Australia. All
the Group’s activities are inter-related, and discrete
financial information is reported to the Managing
Director as a single segment. Accordingly, all
significant operating decisions are based upon
analysis of the Group as one segment. The financial
results from this segment are equivalent to the
statement of comprehensive income. The accounting
policies applied for internal reporting purposes are
consistent with those applied in preparation of these
financial statements.
Note 26: Financial risk management
A summary of the Group’s financial assets and liabilities as at 30 June 2021 and 30 June 2020 is shown below:
Floating
interest
rate
Fixed
interest
rate
Non-
interest
bearing
2021
total
Floating
interest
rate
Fixed
interest
rate
Non-
interest
bearing
$
Financial assets
Cash and cash equivalents
27,317,426
Trade and other receivables
Financial assets
-
-
Total financial assets
27,317,426
Financial liabilities
Financial liabilities at amortised cost
Trade and other payables
Short-term financial liabilities
-
-
Long-term financial liabilities
25,000,000
Total financial liabilities
25,000,000
Net financial assets/(liabilities)
2,317,426
$
-
-
-
-
-
-
-
-
-
$
-
$
$
27,317,426 5,690,661
1,410,745
1,410,745
356,836
356,836
-
-
1,767,581 29,085,007 5,690,661
12,747,942
12,747,942
-
-
-
25,000,000
12,747,942
37,747,942
-
-
-
-
(10,980,361)
(8,662,935) 5,690,661
$
-
-
-
-
-
-
-
-
-
2020
Total
$
5,690,661
$
-
261,695
261,695
1,362,119 1,362,119
1,623,814
7,314,475
1,338,107 1,338,107
-
-
-
-
1,338,107
1,338,107
285,707 5,976,368
Financial risk management objectives, exposures and management
The Group’s activities expose it to a variety of financial
risks: market risk (including foreign currency risk, price
risk, interest rate risk and equity price risk), credit risk
and liquidity risk. The Group’s overall risk management
program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse
effects on the financial performance of the Group.
risk management and associated controls. Instead,
the Board approves all expenditure, is intimately
acquainted with all operations and discusses all
relevant issues at the Board meetings. The operational
and other compliance risk management have also
been assessed and found to be operating efficiently
and effectively.
The Board of directors has overall responsibility for the
establishment and oversight of the risk management
framework. The Board adopts practices designed
to identify significant areas of business risk and to
effectively manage those risks in accordance with
the Group’s risk profile. This includes assessing,
monitoring and managing risks for the Group and
setting appropriate risk limits and controls. The Group
is not of a size nor is its affairs of such complexity
to justify the establishment of a formal system for
The Group uses derivative financial instruments such
as forward foreign exchange contracts to hedge
certain risk exposures. Derivatives are exclusively
used for hedging purposes, i.e. not as trading or other
speculative instruments. The Group uses different
methods to measure different types of risk to which it
is exposed. These methods include sensitivity analysis
in the case of interest rate, foreign exchange and other
price risks and ageing analysis for credit risk.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 76 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 77
Note 26: Financial risk management continued…
A. Credit risk
Credit risk refers to the risk that a counterparty
will default on its contractual obligations resulting
in financial loss to the Group. The Group has a
strict code of credit, including obtaining agency
credit information, confirming references, and
setting appropriate credit limits. The Group obtains
guarantees where appropriate to mitigate credit risk.
The maximum exposure to credit risk at the reporting
date to recognised financial assets is the carrying
amount, net of any provisions for impairment of
those assets, as disclosed in the statement of financial
position and notes to the financial statements.
The Group has no significant concentration of credit
risk with any single party with the exception of GST
receivable from the Australian Tax Office. At 30 June
2021, GST receivable for the Group totalled $1,410,745
(2020: $225,120).
B. Liquidity risk
Vigilant liquidity risk management requires the Group
to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities
to be able to pay debts as and when they become
due and payable. The Group manages liquidity risk
by maintaining adequate cash reserves and available
borrowing facilities by continuously monitoring actual
and forecast cash flows and matching the maturity
profiles of financial assets and liabilities.
The following table details the Group’s contractual
maturities for its financial liabilities. The table has been
drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The table
includes both interest and principal cash flows.
Within 1 Year
Greater than 1 Year
Total
2021
$
2020
$
Financial liabilities due for payment
Trade and other payables
12,747,942
1,338,107
$
-
2021
2020
Borrowings
-
-
25,000,000
Total contractual outflows
12,747,942
1,338,107 25,000,000
Financial assets
Cash and cash equivalents
27,317,426
5,690,661
Trade and other receivables
1,410,745
261,695
Financial assets
356,836
1,362,119
Total anticipated inflows
29,085,007
7,314,475
-
-
-
-
Net (outflow)/inflow on
financial instruments
16,337,065
5,976,368 (25,000,000)
2021
$
2020
$
12,747,942
1,338,107
25,000,000
-
37,747,942
1,338,107
27,317,426
5,690,661
1,410,745
261,695
356,836
1,362,119
29,085,007
7,314,475
(8,662,935)
5,976,368
$
-
-
-
-
-
-
-
-
Interest rate risk
C. Market risk
i.
The Group’s main interest rate risk arises from long-
term borrowings. The long-term borrowings have
been obtained at variable rates which expose the
Group to interest rate risk.
The Group’s long-term borrowings outstanding at 30
June 2021 of $25,000,000 (2020: nil). An increase/
decrease in interest rates of 100 basis points would
have an adverse/favourable effect on profit before
tax of $250,000 per annum, assuming interest is not
capitalised. The Group’s interest rate risk exposure will
increase/decrease as debt is drawn/repaid.
ii. Foreign exchange risk
Foreign exchange risk arises from future commercial
transactions and recognised financial assets and
financial liabilities denominated in a currency that is not
the Group’s functional currency. The group does not
have any material exposure to foreign exchange risk.
iii. Price risk
The Group holds shares in Pacton Gold Inc. which
are exposed to changes in market prices. The market
value of shares held by the Group at 30 June 2021
totalled $356,836 (2020: $1,362,119). An increase/
decrease of 10% would have a favourable/adverse
effect on profit before tax of $35,684 (2020: $136,212).
iv. Commodity price risk
The Group’s exposure to commodity price risk arises
largely from Australian dollar gold price fluctuations
for its anticipated future gold production and sales.
The Group’s exposure to movements in the gold price
is managed through the use of Australian dollar gold
forward contracts. The gold forward sale contracts
do not meet the criteria of financial instruments for
accounting purposes on the basis that they meet the
normal purchase/sale exemption because physical
gold will be delivered into the contract. Further
information relating to these forward sale contracts is
included in “Note 24C” on page 76. No sensitivity
analysis is provided for these contracts as they are
outside the scope of AASB 9 Financial Instruments.
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 78 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 79
Note 27: Events subsequent to reporting date
On 16 August 2021 Calidus announced that mining
had commenced at the Warrawoona Gold Project with
ore now being delivered to the run of mine (ROM) pad.
On 14 September 2021 Calidus announced the signing
of a mining services agreement with Macmahon
Holdings Limited which covers all open pit mining until
2026 ensuring sufficient ore stocks available at mill
commissioning. In addition, the mill was reported as
being successfully installed taking construction of the
processing plant to 63% complete.
Note 28: Contingent liabilities
A. Royalties
The Group has an obligation to pay royalties to third
parties on minerals produced from various tenements.
The royalties will only become due and payable when
mining commences on the relevant tenements.
B. Tenement earn-in rights
Calidus may earn up to a 70% interest in the Otways
tenements by spending $1.2 million on the tenements
over 30 months. At the completion of the expenditure
commitment, each party will be subject to a fund or
dilute obligation in the respective proportions on the
Otways tenements with any interest diluting below
10% converting to a 1% net smelter royalty.
Calidus may earn up to a 75% interest in the
Gondwana tenements by spending $1.0 million on
the tenements over 60 months. At the completion
of the expenditure commitment, each party will be
subject to a fund or dilute obligation in the respective
proportions on the Gondwana tenements with any
Apart from the matters discussed above, no other
matter or circumstance has arisen since 30 June 2021
that has significantly affected, or may significantly
affect the Group’s operations, the results of those
operations, or the consolidated entity’s state of affairs
in future financial years.
interest diluting below 10% converting to a 1% net
smelter royalty.
Calidus may earn up to a 90% interest in the Nimble
tenements by spending $0.8 million on the tenements
over 60 months. At the completion of the expenditure
commitment, each party will be subject to a fund or
dilute obligation in the respective proportions on the
Nimble tenements with any interest diluting below 10%
converting to a 1% net smelter royalty.
C. Project contracts
Calidus has entered into various operational contracts
related to the Warrawoona Gold Project. Should these
contracts be cancelled at the election of Calidus prior
to the expiry of the term Calidus has a maximum
liability of $18.5 million.
D. Other contingent liabilities
There were no other material contingent liabilities at
the end of the year.
Note 29: Auditor’s remuneration
Remuneration of the auditor of the company for:
Auditing or reviewing the financial reports
Other services provided by a related practice of the auditor
2021
$
50,350
-
50,350
2020
$
40,000
-
40,000
Notes to the Consolidated Financial StatementsNotes to the Consolidated Financial Statements 78 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 79
Note 30: Parent entity disclosures
Financial statements and notes for Calidus Resources Limited, the legal parent entity are provided below:
A. Financial position of Calidus Resources Limited (legal parent)
Current assets
Non-current assets
Total assets
Current liabilities
Non-current assets
Total liabilities
Net assets
Equity
Issued capital
Options and Share Rights reserve
Accumulated losses
Total equity
B. Financial performance of Calidus Resources Limited
Profit / (loss) for the year
Other comprehensive (loss) / income
Total comprehensive loss
June 2021
$
111,903,392
162,171
June 2020
$
34,593,713
2,107
112,065,563
34,595,820
466,477
72,649
539,126
161,486
7,799
169,285
111,526,437
34,426,535
119,310,444
2,962,897
(10,746,904)
111,526,437
39,713,961
1,910,237
(7,197,663)
34,426,535
(3,549,241)
(2,202,502)
-
-
(3,549,241)
(2,202,502)
C. Guarantees entered into by Calidus Resources Limited for the debts of its subsidiaries
There are various parent guarantees entered into by Calidus Resources Limited for the debts of its subsidiaries as
at 30 June 2021 (2020: none).
Notes to the Consolidated Financial StatementsDirector’s Declaration 80 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 81
Director’s Declaration
1. In the opinion of the Directors of Calidus Resources Limited (the ‘Company’):
a. the financial statements, notes and the additional disclosures are in accordance with the Corporations Act
2001 including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance
for the year then ended; and
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Regulations 2001;
b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable; and
c. the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2. This declaration has been made after reviewing the declarations required to be made to the Directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
Mark Connelly
Non-Executive Chairman
Dated this Thursday, 16 September 2021
Notes to the Consolidated Financial StatementsDirector’s Declaration 80 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAIAnnual Report for the Financial Year ending 30 June 2021 | 81
Director’s Declaration 82 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Independent Auditor’s Report
Moore Australia Audit (WA)
Level 15, Exchange Tower,
2 The Esplanade, Perth, WA 6000
PO Box 5785, St Georges Terrace, WA 6831
T +61 8 9225 5355
F +61 8 9225 6181
www.moore-australia.com.au
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF CALIDUS RESOURCES LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Calidus Resources Limited (the Company) and its subsidiaries (the
“Group”), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year ended 30 June 2021, and notes to the financial statements,
including a summary of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance
for the year then ended; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the “Code”) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Moore Australia Audit (WA) – ABN 16 874 357 907.
An independent member of Moore Global Network Limited - members in principal cities throughout the world.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent Auditor’s ReportAnnual Report for the Financial Year ending 30 June 2021 | 83 Director’s Declaration 82 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Carrying amount of Mine Properties Under Development
Refer to Note 13 Mine Properties Under Development
During the year ended 30 June 2021, the Group
transferred approximately $27 million from exploration
and evaluation assets to mine properties under
development following the decision to commence
development at the Warrawoona Gold Project (the
Project).
Subsequent to the transfer, substantial costs were
incurred and capitalised in relation to the ongoing
development works. The carrying amount of mine
property under development at balance date was
approximately $92 million.
The impairment assessment conducted under AASB
136 Impairment of Assets as at the date of transfer
involved a comparison of the recoverable amount of
the Project assets with their carrying amounts in the
financial statements.
The evaluation of the recoverable amount of these
assets at transfer and at year-end is considered a key
audit matter as it was based upon a model which
required significant judgement in verifying the key
assumptions supporting the expected discounted
future cash flows of the Project. Our audit focussed
on the Group’s assessment of the carrying amount of
the capitalised mine property under development as
this is the single largest asset of the Group.
Capitalised Exploration & Evaluation Assets
Refer to Note 12 Exploration and evaluation assets
At balance date, the Group’s statement of financial
position includes capitalised exploration and
evaluation assets of approximately $23.5 million.
The ability to recognise and to continue to defer
exploration and evaluation assets under AASB 6:
Exploration for and Evaluation of Mineral Resource
is impacted by the Group’s ability, and intention, to
continue to explore the tenements or its ability to
realise this value through development or sale.
Due to the significance of these assets and the
subjectivity involved in assessing the ability to continue
to defer these assets, this is considered a key audit
matter.
We also assessed the appropriateness of the
disclosures contained in the financial report.
Our procedures included:
ā We reviewed the Group’s ASX announcements and
the updated Feasibility Study (FS) released on 29
September 2020 and obtained an understanding
of the process associated with the NPV (value in
use) model to assess the recoverable amount of the
Project.
ā Critically evaluated management’s methodology in
the NPV model and the basis for key assumptions
utilised in the model such as discount rate,
estimated project development capital, gold price
per oz, and average AISC/oz.
ā We reviewed the sensitivity analysis disclosed in
the FS around the key inputs in the NPV model for
reasonableness
ā We substantiated a sample of capitalised
expenditure by agreeing to supporting
documentation/invoices
ā We reviewed external and internal sources of
information for observable impairment indicators.
This included reviewing minutes of Board meetings,
internal management reports and giving due
consideration to current information such as
gold prices, AISC of comparable producers and
the Company’s market capitalisation which was
considerably higher than its year-end net asset
position.
ā Assessed the appropriateness of the disclosures
contained in the financial report
Our procedures included:
ā Ensuring the Group has the ongoing right to explore
in the relevant exploration areas of interests which
included performing ownership searches of the
tenements to Department of Mines WA & other
agreements.
ā Tested a sample of exploration & evaluation
expenditures capitalised during the year to
supporting documentation including contracts.
ā Ensuring the Group is committed to continue
exploration and evaluation activity in the relevant
exploration areas of interest by assessing their
exploration and future development expenditures
that have been budgeted for and reviewing minutes
of Board meetings and other internal reports.
ā Assessing the carrying value of these assets for
any indicators of impairment including comparing
against the Company’s market capitalisation.
Independent Auditor’s Report 84 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021 but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is
to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf.
This description forms part of our audit report.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Calidus Resources Limited, for the financial year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
SL TAN
PARTNER
MOORE AUSTRALIA AUDIT (WA)
CHARTERED ACCOUNTANTS
Signed at Perth on the 16th day of September 2021
Independent Auditor’s ReportAnnual Report for the Financial Year ending 30 June 2021 | 85
The top 20 shareholders
hold 56.26% of the total
ordinary capital on issue.
86 | Calidus Resources Limited ABN: 98 006 640 553 ASX:CAI
Additional ASX Information
as at 15 September 2021
The following additional information is required by the Australian Securities Exchange in respect of listed public
companies. As at 15 September 2021 there were 4,844 holders of Ordinary Fully Paid Shares.
Voting Rights
The voting rights attached to each class of equity security are as follows:
ā Ordinary shares: Each ordinary share is entitled to one vote when a poll is called, otherwise each member
present at a meeting or by proxy has one vote on a show of hands.
ā Listed Options, Unlisted Options and Performance Shares: Options and performance shares do not entitle the
holders to vote in respect of that equity instrument, nor participate in dividends, when declared, until such time
as the options are exercised or performance shares convert and subsequently registered as ordinary shares.
20 Largest Shareholders
Ordinary Shares as at as at 15 September 2021
Rank
Name
Number of
Ordinary Fully
Paid Shares
% Held of
Ordinary
Issued
Capital
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
17
18
19
ALKANE RESOURCES LTD
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MRS ELEANOR JEAN REEVES
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