CLASSIC MINERALS LIMITED
ACN: 119484016
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2020
CLASSIC MINERALS LIMITED
CONTENTS
Corporate directory
Directors' report
Directors' declaration
Auditor's
independence
declaration
Independent
audit report
Statement
of Profit or Loss and other Comprehensive
Income
Statement
of Financial
Position
Statement of Changes in Equity
Statement
of Cash Flows
Notes to the financial
statements
PAGE
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26
CLASSIC MINERALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
John Lester
Frederick Salkanovic
LuNingYi
Stephen
John O'Grady
COMPANY SECRETARY
Madhukar
Bhalla
A.B.N.
77 1 19 4840 1 6
PRINCIPAL
OFFICE & REGISTERED OFFICE
71 Furniss Road
Landsdale,
W A 6065
SHARE REGISTRY
Advanced
Share Registry
Services
1 10 Stirling
Nedlands,
Highway
WA 6009
AUDITORS
Bentleys
Audit & Corporate
(W A) Pty Ltd
Level 3, 2 1 6 St George' s Terrace
Perth,
W A 6000
SECURITIES
EXCHANGE LISTING
Australian
Securities Exchange (ASX: CLZ)
-I -
CLASSIC MINERALS LIMITED
D IRECTORS' REPORT
In order to comply with the provisions
herewith the
report and the
financial
directors
report
for the financial year ended
30 June 2020.
of the Corporations
Act 2001 , the Directors
of Classic
Minerals Limited
submit
Directors
The names of
directors
in office at any
time during or since the end of the financial year are:
John Lester
Frederick
Lu NingY i
Stephen John
Salkanovic
O'Grady (appointed
9 June 2020)
Directors
have been
in office since the start of the financial
year to the date
of this report
unless
stated.
otherwise
Company Secretary
The name of secretary
in office at any time during
or since the end of the financial year is:
Madhukar
Bhalla
Mr Madhukar
Fellow of the Institute of Chartered
Bhalla is a qualified
Company Secretary and a Fellow of
and Administrators.
Secretary
Governance
Institute
of Australia as well as a
Current
Directors'
qualifications
and experience
John Lester
Age: 78 years old
(Non-executive
Chairman)
Qualifications
Experience
and
Shareholdings
report:
of this
as at the date
a member of
and was
Analysts
including
in London.
investment
of Investment
bank as chief dealer
He joined Jardine
has a degree in Physiology
as a stockbroker
six
and Company then
and became a Director of that
in mining companies
Fleming
from Oxford University
Mr Lester
the Institute
his career
He started
with Joseph Sebag and Co in London specializing
months with Consolidated Goldfields.
Hong Kong's largest
Company.
He was Head of Corporate
to Indonesia
companies
mining company.
He joined the Board of Golden West Resources Limited and
Director
from Asian investors.
major tenderer
including
Bank. He was a founding Director
Securities
where he founded a paging company and several
as well as arranging the underwriting of
of Yilgarn Infrastructure
for building the Port of Oakajee having a fully fu
where he was responsible
He was Chairman
S inosteel
AnsteeI
and Chairman of
Bank of China
publicly
was a
nded bid with
China Rail, China Ports,
moved
in Sydney and later
and internet
satellite
first publicly
more than $60 million
Ltd which
partners
and China Exim
for the company raising
listed Coal Limited.
became Managing
at Pembroke
Jakalta's
Finance
listed
54,750,000
90,000,000
ordinary shares
performance
rights
-2 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Frederick Salkanovic (Non-Executive
Age: 75 years old
Director)
Qualifications and
Experience
Shareholdings
of this report:
as at the date
successf
of mining in Western
He has operated
further hands-on
has a history
Mr Salkanovic
for the past 45 years.
operations and
brings
exploration
Mr Salkanovic
he is a strong supporter
materials
processing,
companies.
and mining
has a strong
activities
development
knowledge
of the company with
marketing and
experience
financial
Australia
metals
and throughout
and gemstone
ul precious
Australia
to the Company as
mining
up its
it ramps
at the Forrestania
Gold project.
of the mining and resources
sector
key competencies
in relation
in Australia,
in exploration,
to junior mining
management
56,875,000
30,000,000
ordinary
performance
shares
rights
Lu Ning Yi (Non-Executive
Director)
Age: 66 years old
Qualifications
and Experience
Mr Lu Ning Yi had a long career as an experienced
with China's Jiangsu
with many of China's
maintained
Mr Lu is a director
director
His position
executives. Since
and Australian
Pty Ltd
International
in Victoria.
Golf and Country Club
Economic
top business
of the Heritage
his extensive
newspaper.
of Chi Masters
and expanded
Chinese
and respected
placed him
financial
in direct
journalist
contact
coming to Australia,
Mr Lu has
business
relationships.
and is also a Non-Executive
Shareholdings
report:
as at the date of this
7 1 ,293,4 1 5 ordinary shares
30,000,000
performance
shares
Stephen
John O'Grady
(Non-Executive
Director)
Age: 59 years old
Qualifications
and Experience
development
has contributed
to the successful
the open cut
Stephen
wealth of experience in
the mining engineer
mining pro
jects in the
mine planning space.
and feasibility studies across
Gold and various
last two decades.
He has studied
for over 80 open
W A gold projects.
and underground
cut mining projects and over 30 underground
His forte is in the pit design,
and created
and
optimization
scoping
the geology
five continents
commensurate
due diligence work for Minjar
including
of many mines, including
mining of gold. He has been
a
Shareholdings
report:
as at the date of this
Nil
- 3 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Meetings
During this financial
of directors
year, the Directors
met regularly
to discuss
the affairs of the Company.
The number of Directors'
were as
follows:
meetings
period
held during the financial
and the number of meetings
attended
by each director
Director
Board of Directors
Meetings
Attended
Number
Eligible to Attend
John Lester
LuNingYi
Frederick
Stephen
Salkanovic
John O'Grady I
28
28
28
28
28
28
The Company agreed
the decisions
Circular
Resolutions
would be discussed
that in order to reduce costs
and reduced
to Circular
that were passed
unanimously
by all
Resolutions.
Directors.
of directors
travelling
to Perth to attend board meetings
During the year ended
that most of
30 June 2020 there were 28
Principal
The principal
based projects,
activities
activity
focussing
on gold and
nickel.
of Classic
Minerals
Limited
during the financial year was the
exploration
of mineral
resource
Operating
The loss of the Company for the year ended
results
30 June 2020 amounted
to $ 15,669,
186 (2019: loss of
$5,433,
896).
Dividends
No dividends were paid or declared for payment since the
incorporation
of the Company.
Shares issued
As at the date
as a result
of the
exercise
of an option
are:
during
of this report details
of ordinary
or sinee the end of the year as a result
of exercise
by the Company
shares issued
during or since the end
of the financial year
Date of
exercise
Number of shares
issued
1 51 1 0/201 9
03/12/201 9
14/0812020
3 5,000,000
1 05,000,000
37,832,090
Amount paid for the
shares
$70,000
$21 0,000
$75,664 (i)
There are no unpaid amounts
(i) $25,000
of this amount was
on the shares issued.
received
in cash and
the remaining
$50,664 was used to for borrowings
reduction.
Unissued
At the date of this report unissued
shares under option
ordinary
shares
or interests
of the Company under Option are:
Date of
options Number of shares
under Exercise
price Expiry date of
granted
option
of option
option
20,000,000 $0.007 0511 1 12021
79,333,334 $0.007 0511 112021
20,000,000
27/12/201 8
0811 11201 9
$0.002 0 1103/2022
28/021201 9
242,658,262 $0.002 0 1/03/2022
27/06/201 9
1 00,000,000
07/0212020
$0.002 0 1 103/2022
25/03/2020 1 00,000,000
$0.002
0 1 103/2022
1 1105/2020 458,000,000
$0.002 0 1 103/2022
1 00,000,000 $0.002 0 1 103/2022
24/07/2020
TOTAL
1 , 1 19,991,596
-4 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Review of operations
In the 2019/20 reporting
• Maiden resource
estimate for Kat Gap;
year, the following mil
estones
were achieved:
• Exploration
has continued
at the
Forrestania
Gold Project;
• Updated resource
estimate for Lady Magdalene; and
• Updated
resource
estimate
for Lady Ada
In the year, a total of 1 O,285.55m
ofRC drilling
was completed
in the Company's
projects:
• Kat Gap 1 19 RC holes for 9,258m;
• Kat Gap 3 diamond
• Van Uden West 3 RC holes for 240m;
holes for 527.55m;
and
• Tangerine
Trees 6 RC holes for 360m
About Forrestania
Gold Project
and Kat
Gap Gold Project
The main thrust
These have a JORC-defined
gold resource
outlined
in the following
table.
of exploration at the Forrestania
belt has been the Lady Ada and Lady Magdalene
(Ladies)
tenements.
has made a major discover
Classic
Here very significant high-grade
making it the main
Gekko Gravity
Feed P lant to exploit
y at the
gold inte
1 00% owned Kat
rsections
Classic
focus of its exploration.
have been made. Classic
has great faith in Kat Gap and
it. Kat Gap is now the Flagship project
of the Company.
Gap tenements
about 50 km to the South
has upgraded
East of the Ladies.
of Kat Gap and
the potential
has made arrangements to purchase
is
a
The FGP Tenements (excluding Kat
subsidia
from a third party,
Hannans Ltd (ASX:
Hannans has maintained
Gap) are registered in
HNR). Classic has
acquired
in the
ry of ASX-listed
its 20% interest
whilst
gold rights.
the name of Reed Exploration
Pty Ltd, a
wholly owned
80% of the gold rights
on the FGP Tenements
Classic Minerals
but not
owns a 1 00% interest
lithium and
in the gold rights
other metals.
to nickel,
limited
on the Kat Gap Tenements and
also non-gold
rights
including
has a Global Mineral
Classic
accordance with
suggesting
Ada, Lady
both the technical
Magdalene
Resource
the JORC Code (2012),
of 8.24 Mt at 1 .52 glt for 403,906
with a recent
Scoping
viability
below.
and financial
is tabulated
of the project. The current
and Kat Gap
Study (see ASX Announcement
released
ounces of gold, classified
in
and reported
2nd May 2 0 1 7)
post-mining Mineral
Resource
for Lady
detail
Additional
Table I as attached to ASX announcements
Resource
dated 1 8th December
on the Mineral
technical
estimation
is provided,
further in the text below and in the JORC
2 0 1 9, 2 1 st January
2020, and 20 April 2020.
Prospect Tonnes
Indicated
Inferred
Grade Ounces
(Au glt) Au
Tonnes
Grade Ounces
Au glt) Au
Ladv Ada 257,300 2.01 16,600 1,090,800 1.23 43,100
Lady Magdalene
Kat Gap
5 922700 1 .32 2 5 1,350
975,722 2.96 92,856
Total 257,300 2,01 16,600 7,989,222 1.50 387,306
Grade
Ounces
Au
Tonnes
Au
1.38
1,348,100
1.32
5 922700
975,722
2.96
1.52
8,246,522
59,700
251 ,350
92,856
403,906
is classified
NOles:
1 .
The Mineral Resource
date of the mineral
The effective
2.
3 . The m ineral resource
Estimates are rounded
4.
The m ineral resource
5.
6. Depletion of
in accordance
estimate
within FGP tenements
level of confidence
i s contained
to reflect the
is reported at 0.5 glt Au cut-off grade
from historic
the resource
is 20 April 2020
resource
with JORC, 201 2 edition
open pit mining has been considered
in these resources
at the present time
- 5 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Review of operations (continued)
1. Kat Gap Gold Project
Kat Gap is a very exciting,
Forrestania
Gold Project,
high-grade gold project strategically
located
approximately
70km SSE of the Company's
containing the Lady
Magdalene
and Lady Ada gold resources.
has accelerated its exploration
Classic
the mineralisation
1 19 RC holes for a total
The company completed
intercepts returned include;
and has been rewarded
effort over this financial year to better
understand
the significance and nature
of
with many stunning
gold intersections.
of 9,258m at Kat Gap during the
reporting
period.
Some of the best
g/t from 123m in FKGRC095
13m at 4.91 g/t from 33m in FKGRC090
9m at 20.91
3m at 20.70 g/t from 39m in FKGRC 1 1 3
6 m at 4.84 glt from 59m i n FKGRC1 14
3m at 13. 1 8 g/t from 143m in
FKGRC133
6m at 1 1.54 g/t from 20m in FKGRC139
8m at 7.91 glt from 60m in FKGRC145
3m at 62.10 g/t from 36m in FKGRC157
4m at 76.72 g/t
from 79m in FKGRC1 84
The drilling
the granite -
Proterozoic
carried
greenstone
dyke and open down dip/plunge.
contact.
out by
the company to date has identified
gold mineralisation
is open along strike
The gold mineralised zone
to the north
and south of the cross-cutting
over a strike
length
of over 600m along
Drilling in a close-spaced
successful
shallow
in understanding
and too widely
spaced.
pattern, incrementally
the structural
setting
stepping
of the mineralisa
tion and clearly
shown that historical
away from known mineralised
intervals,
has been very
work was too
Future drilling
programs
south along strike
historical
auger soil sampling.
at Kat Gap will focus mainly
on testing
the main granite
-greenstone
contact
further
from the current
drilli
ng area
and testing
the large 5 km long geochemical
anomaly identified
north and
in
Kat Gap Mineral
Resource
Estimate
The company completed its maiden
year. The resource
part of the financial
iant Inferred
estimate returned
201 2 JORC-compl
Mineral
Resource
2.96g/t for 92,856 oz
975,722t@
Estimate
at Kat Gap
in the latter
applied
for a Mining
Lease (MLA 74/249)
over the Kat Gap Inferred
Resource
in the latter
part of the financial
Classic
year.
Scoping
existing
studies
resources.
are underway focussed on favourable
studies
Metallurgical
are in progress
open pit scenarios
and milling
with pit optimisations
are being considered.
options
being carried
out on
There remains
significant
potential to
discover
additional
gold mineralisa
tion within
the Kat
Gap project area.
2. Lady Magdalene
Resource
Estimate
Update
The company completed an update to its
in Western Australia
grading
tonnes
which has realised
1 .32g/t gold for 251,350 ounces.
Lady Magdalene
a 38% increase
mineral
in the contained
Forrestania
estimate
gold ounces for the deposit
resource
at the
Gold Project
(FGP)
to 5.92 m illion
The new estimate incorporates
all the additional
drilling
completed
at the
deposit
by Classic
over the last two
years.
-6 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Review of operations
(continued)
3. Lady Ada Resource
Estimate
Update
The company recently completed an
(FGP) in Western Australia
million tonnes
grading
1 .38g/t gold for 59,700
which has realised
a 71 % increase
ounces.
update to its Lady
Ada mineral
resource
in the contained
estimate
at the
Forrestania
Gold Project
gold ounces for the deposit to 1 .35
The new
estimate incorporates all the additional
drilling
completed
at the
deposit
by Classic
years.
over the last two
4. Van Uden West Prospect
The company completed 3 RC holes for a total
holes were drilled
in 2 0 1 8 .
to follow-up on a high-grade
of 240m late in the financial
1 2m grading
intercept,
year at the Van Uden West
prospect.
The
S.7Sg/t Au from 59m drilled
by the company back
Results
are pending.
5. Tangerine
Trees Prospect
The company completed 6 RC holes for a total
prospect is
This is the first drillin
explorers
approximately
was more than 20 years.
by Classic
g program conducted
located
2km west of Western Area's Spotted
of 360m late in the financial
year at the
Quoll nickel
The last drilling program
The
mine or 3Skm's NNW of Kat Gap.
carried
Tangerine Tree's prospect.
out by previous
at the
prospect.
Results
are pending.
6. Fraser Range Project
The Company has continued
owned subsidiary
Project.
of Independence
Group NL (ASX:IGO),
its Earn-in & Joint Venture
Agreement
allowing
with Independence
for free-carried
Newsearch
exploration
Pty Ltd,
a 1 00%
of the Fraser Range
7. Corporate
year ended 30 June 2020, the
$709,SOO.
A further Security
During the financial
raised
maximum of $ 4 million. This SPP was closed
transforming the Company from explorer
technical
2 0 1 9.
Munich in November
in September,
Purchase
advisor
Company completed a Security
was announced
$ 3,992,938
Plan (SPP)
after raising
2020, which proposed
Plan on IS July 201 9 which
to raise a
vision
on IS July
Purchase
on OS August 2020. In keeping with the
Mr Klaus Eckhof
of
and
EDELMETALLMESSE in
ion at the prestigious
as corporate
to a miner/producer the Company appointed
and he made a significant presentat
to the resource
Pursuant
to the Board. This appointment adds significant expertise
mining the resource
computation
for Kat Gap the
at Kat Gap.
Board appointed
and provide
Mr Stephen
technical guidance
engineer
O'Grady, a reputed mining
towards
progresses
as Classic
The Directors continued
number of creditors
to raise funds for working
their debt into equity
to convert
via private
saving much needed cash for its operations.
placements
and successf
ully negotiated
with a
capital
thereby
The Company was in receipt
period.
The application for the R&D grant for the FY2020,
has already
of the refund from the R&D applications
submitted,
been lodged with AusIndustry.
of over $ 1 .3 million
for the FY201 9
The Company continued to raise funds for working
to convert
number of creditors
their debt into equity
via private
saving much needed cash for its operations.
and successfully
placements
negotiated
with a
capital
thereby
-7 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Review of operations
(continued)
Significant changes
in state of affairs
in the
changes
There were no
significant
state of affairs of the Company during the year ended 30 June 2020.
Subsequent
events
On 23 July 2020 the Company issued
cash and $64,000
as debt settlement.
$205,000
of the above cash was received
before 30 June 2020.
549,200,000
shares
and 1 00,000,000
options.
The Company raised $670,000 in
On 12 August
settlement.
2020, the Company had issued
437,542,856
shares and received
of $332, 134 in cash and
$356,250
as debt
On 14 August 2020 the
exercised.
Company issued 665,1 53,51 8 shares and additional
in cash and $653,750
The Company received
as debt settlement.
$25,000
37,832,090
shares issued for options
The Share Purchase
amount of $4,000,000.
Plan was closed
on 5 August
2020, and the Company raised
$3,992,938
out of the maximum permitted
The Company conducted
pathway to recover
production
was expected
the gold from the Kat Gap gold project. The
and has announced
the purchase
the cost for the processing
of a Gekko
plant will
gravity
be around $3.9 million.
Company focuses on preparing
concentration
Kat Gap Gold Project for
It
plant with 30 tph of capacity.
processing
extensive
studies
metallurgical
on the character
istics
of the ore and
determined
the processing
There have been no other matters
affect the operations,
results,
or state of affairs of the Company in future
financial
years.
or circumstances
that have arisen
since 30 June
2020 that have
ntly
or may significa
Future developments
to explore
The Company will continue
fields; while looking
are imminent.
to commence mining operations
its exploration
areas and look to establish
to receipt
pursuant
at Kat Gap
interest
of Governmental
in prospective
which
approvals
its exploration
The Directors
and Management
look forward, with confidence,
to a great year ahead.
regulation
Environmental
The Company is aware of its environmental
directors
are not aware of any significant
obligations
the year .
breaches during
and acts to ensure its environmental
commitments
are met.
The
Non-audit
No non-audit
services
services
were provided
in this financial year by the auditors.
Proceedings
on behalf
No person has applied
to which the Company is a party for the purpose
those proceedings.
of the
for leave of court to bring proceedings
company
of taking
on behalf
responsibili
of the Company or intervene
in any proceedings
ty on behalf
of the Company for all or
any part of
Governance
Corporate
The Corporate
www.classicm
Governance
inerals.com.
Statement
Statement
au/corpgov.php
is available
on Classic
Minerals
Limited's website
at
Auditor's independence
The auditor's independence
can be found on page 14.
Report, and
declaration
declaration
for the year ended 30 June
2020 has been
received,
forms part of the Director's
-8 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Review of operations
(continued)
with the
of Officers
Indemnification
In accordance
or agent of the Company shall be indemnified
in his
capacity
and howsoever
as Officer or agent of the Company or any related
occurring or in defending any proceedings,
except as may
out of the property of
corporation
Company' s constitution,
whether
be prohibited
by the Corporations Act 2001, every Officer
the Company against
in respect
by him
y incurred
whatsoever
or omission
any liabilit
of any act
civil or criminal.
During the previous financial
premiums
liabili
ty insurance.
The insurance
year, the Company has
paid insurance
premiums
in respect
of directors'
and officers'
to:
relate
nt officers in defending legal proceedings,
whether
civil or criminal
Costs and expenses
incurred
and whatever their outcome;
Other liabilit
or improper
by the releva
and
ies that may arise from their position,
information to gain a personal
use of
with the exception
advantage.
of conduct
involving
wilful breach of duty
During the current
financial
year, the Company paid $74,031 for Directors
and Officers liability insurance
(2019: Nil).
-9 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
REMUNERA nON REPORT (AUDITED)
the remuneration
outlines
of the
with the requirements
This report
accordance
Management Personnel
planning, directing
and controlling
Corporations
("KMP") of the Company are defined as
Act 2001 and its Regulations.
those persons
the major activities
of the Company, directly
of Classic
For the purpose
having authority and
or indirectly,
including
of this report, Key
for
responsibility
any Director.
arrangements
in place fo
r Directors
and executives
Minerals Limited in
The remuneration
report
is set out in the Table.
Principles
used to
determine
the nature and amount of remuneration
for determining
and reviewing
compensation
arrangements
for the Directors.
of the nature and amount of emoluments of such officers on a periodic
The Board is responsible
the appropriateness
employment
a high quality
officers
to retain
to the Company's financial or operational
and motive directors.
market conditions
with the overall
objective
of ensuring maximum
board and executive
team. The Company does not link the nature
The Board assesses
basis by reference to relevant
benefit from the retention
of
stakeholder
and amount of the emoluments
of such
performance.
The expected outcome of
this remuneration
structure is
Due to the current
Remuneration
Committee but
guidance of the formal charter.
size of the Company and number of directors,
the Board has elected
not to create a separate
has instead
decided
to undertake
the function of
the Committee as a full Board under the
The rewards
their remuneration
rewards
performance
no set or
for Directors have
current
as and when they consider
due to the
nature of
the business
rewards
operations.
are warranted.
pre-determined
performance conditions
or key performance
The Board determines
indicators
as part of
of
levels
appropriate
The remuneration
by the board. All executives
and superannuation.
executive
The board reviews
performance and comparable
policy, setting
receive
for the executive
directors
(which is based on factors such as
annually
sectors
length
by reference to the Company's
and other listed
packages
from industry
and experience)
performance,
in similar industries.
and other executives, was
developed
companies
of service
the terms and conditions
information
a base salary
executive
The board may exercise discretion
attract
wealth.
of executives
in relation
the highest
to approving
incentives,
and reward them for performance
calibre
bonuses
and options.
The policy
is designed
shareholder
to
that results
in long-term
growth in
(a) Details
of key management
personnel
(i) Directors
John Lester
LuNingYi
Frederick
Stephen
Salkanovic
John O'Grady
Executives
(ii) Senior
Dean Goodwin
Jacob Doutch (ceased
Jeffrey Nurse (ceased being a KMP
being a KMP effective
effective
2 1 January
201 9)
3 1 March 201 9)
-1 0 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
of Remuneration for Year Ended 30 June 2020 and 30 June 2019
Details
The remuneration
for each key management
personnel of
the Company during
the year was as follows:
SHORT-TERM BENEFITS
POST EMPLOYMENT
SHARE-BASED
TOTAL
Salary Other
I I Non-
Monetary
Superannuation I Retirement I Performance
Benefits
rights
Equity
S
PAYMENT
REPRE-
SENTEDBY
EQUITY/OP
TlONS
%
Directors
Stephen John O'Grady
2020 1 3,333
-I
-1 3,333
10,332
8769
19,101
i) John is entitled
to Non-executive
Chairman's
fee of $60,000 per annum effective
I January 2019.
A formal contract
is also in place with
John Lester amounting to $100,000 per annum payable as retainer
fees. Additional $43,822 relates
to additional consultancy
services during
the year.
ii) Frederick
is paid non-executive
directors
at $40,000 per annum effective
I January 2019. There was a prepaid amount of$16,600
to Frederick
on 30 June 2019.
iii) Dean is remunerated
on a success basis, at the company's discretion,
to establish
a JORC compliant
resource
estimate
for the Forrestania
Gold Project and the Kat Gap Project as per the contract
Dean rate of pay is up to $540,000 + GST for the work between 5 July 2019 and 31 December 2020 related to the establishment
of the
the
to terminate
resources,
dated I July 2019 (2019: $36,000 was settled
of a CEO. 3 months' notice is required
the roles and responsibilities
via shares issued during the period.
is in place stipulating
a formal contract
contract).
iv) Jacob ceased to be a KMP as a result ofa change in his role pursuant
to a board resolution
dated 21 January 2019, the salary portion has
been pro-rated
to the period where he was a KMP for the Company.
v) Jeffrey resigned
as Company Secretary
on the 19 October 2018 and stayed on as CFO till 31 March 2019.
Employment
Details
of Members of Key Management
Personnel
Mr Dean Goodwin
company's
Project as per the contract
discretion,
dated I July 2019.
is the Chief Executive
Officer of the Company. Mr Goodwin
is remunerated
on a success
to establish
a lORC compliant
resource
estimate
for the Forrestania
Gold Project
at the
basis,
and the Kat Gap
-1 1 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Non-Executive
Director
Letter
Agreements
director
non-executive
The Company has
Yi, and Stephen
O 'Grady, these letter
would carry out their duties
remuneration
1 st Jan 2 0 1 9. They are reimbursed
the terms and
outline
to the Company. Mr. Lu, Mr.Salkanovic,
while Mr. Lester
with no superannuation,
is entitled
incurred
expenses
letter
agreements
for reasonable
agreements
of$40,000
with Mr John Lester,
in carrying
conditions
Mr. Frederick
Ning
on which the Non-Executive
Mr. Lu
Salkanovic,
Directors
and Mr O'Grady are entitled
to $60,000
to an annual
effective
with no superannuation
out their duties.
Shareholdings
of Key Management
Personnel
Number of ordinary shares held by key management
personnel
during the year
Balallce Received as
Net Challge
Balallce
1 JlIly 2019 remlllleratioll
Other
30 Jlllle 2020
John Lester
4,750,000
50,000,000
54,750,000
LuNingYi
2 1 ,293,41 5
50,000,000
7 1 ,293,41 5
Fred Salkanovic
6,875,000
50,000,000
56,875,000
Stephen
John O'Grady
Dean Goodwin
49,880,000 1 5,000,000
82,798,4
15 15,000,000
5,500,000
70,380,000
1 55,500,000
253,298,415
Option holdings
of Key Management Personnel
Balallce Received as
Net Challge
Balallce
1 Jllly 2019 remlllleratioll
Other
30 Jlllle 2020
Dean Goodwin
15,840,000
1 5,840,000
15,840,000
15,840,000
Performance
Rights of
Key Management
Personnel
Balallce Received as
Net Challge
Balallce
1 JIlIy 2019 remlllleratioll
Other
30 Jlllle 2020
John Lester
LuNingYi
Fred Salkanovic
Stephen
Dean Goodwin
John O 'Grady
90,000,000
30,000,000
30,000,000
90,000,000
30,000,000
30,000,000
1 50,000,000
300,000,000
150,000,000
300,000,000
-1 2 -
CLASSIC MINERALS LIMITED
DIRECTORS'
REPORT
Transactions
with Directors,
Director Related
Entities
and other Related
Entities are:
2020
The Board
adopted
Company held on 24 December
201 9 (refer
to Note
1 6(a)).
a Performance Rights Plan, which was approved
by shareholders,
at the General
Meeting
of the
Mr. Goodwin is entitled
the establishment
to up to $540,000
+ GST for the work between
of the resources,
a formal contract
is in place stipulating
5 July 201 9 and 3 1 December
2020 related
of a CEO.
the roles and responsibilities
to
2019
During the year, the company signed a formal contract
payable
fees.
2019 as retainer
from 1st January
effective
the Chairman,
Mr John Lester
amounting
to $ 1 00,000 per annum
During the year, the
vehicle
in lieu of cash payment.
Mr. Goodwin is entitled
Mr Dean Goodwin amounting
through
to $ 1,200 + GST fees for days worked.
to $85,000
Company paid a bonus to
the transfer
of a motor
END OF REMUNERA nON REPORT
This report
of Directors.
of the directors,
incorporating
the Remuneration
Report,
is signed
in accordance
with a resolution
of the Board
John Lester
Non-executive
Chairman
Dated this 1 7th day of September 2020
-1 3 -
CLASSIC MINERALS
LIMITED
DIRECTORS'
DECLARATION
It is the opinion
of the directors
of Classic
Minerals
Limited (the "Company");
1 . the financial
statements
and notes are in accordance
with the Corporations
Act 2001 and:
a. comply with Australian
Accounting
professional
reporting
b. give a true and fair view of the financial
performance as represented
date;
by the results
requirements;
Standards, the Corporations
and
Regulations
2001 and other mandatory
position
of the Company as at 30 June 2020 and of the
of its operations
and its cashflows
for the year ended on that
2. in the directors'
opinion
there are reasonable
grounds
to believe
that the company will be able to pay its debts as
and when they become due and payable.
3 . the financial statements and notes also comply with International
Standards
International
Accounting
in note 2.
disclosed
Board as
Financial
Reporting
Standards
a s issued
b y the
4. this declaration
with section
has been made after
receiving
295A of the Corporations Act 2001
the declarations
for the financial
required
year ending 30 June 2020.
to be made to the directors
in accordance
This declaration
is made in accordance
with a resolution
of the Board of Directors.
John Lester
Chairman
Non-executive
Dated this 1 7th day of September 2020
-1 4 -
Bentleys0
THINKING AHEAD
Bentleys Audit & Corporate
(WA) Pty Ltd
London I-louse
Le'/eI3.
216 St Georges Terrace
Perth WA 6000
PO Box 7775
Cloisters
Square WA 6850
ABN 33121222802
T +61 892264500
F +61 89226 4300
bemleys.com.au
To the Board of Directors
Auditor's Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit Partner for the audit of the financial
statements
of Classic Minerals Limited
for the financial
year ended 30 June 2020, I declare that to the best of my knowledge and
belief,
there have been no contraventions
of:
the auditor independence
requirements
of the Corporations Act 2001 in relation
to
the audit; and
any applicable
code of professional
conduct in relation
to the audit.
Yours Faithfully,
�J
Chartered Accountants
q::,cog
Partner
Dated at Perth this 17th day of September 2020
A\\\n\a\
fl, member of 2entle)'s, a ne!vtCri;. of
as 891�Iey.;. A11l'ltmL'9rs
!mred by a
of th3 8art:€)'S N€i\ '."C'rk c:::e aifiiale:l
scheme app! Ql!Cd un-:1er Fn:tE:SSioo3l S'tanc.aICs LfSlSIation.
GLOBAL.
cr.1y and are
separate 199<.11 entities Md r(j1 in
Fartr:EfShip
L..ic1t:Uty
Australia, N€\', Zealand and Chin."! th..11 tl'<.'.de
independall accc1.n!ing firms located
throughout
). Advisors
). Accountants
). Auditors
Independent
Auditor's Report
To the Members of Classic Minerals Limited
Report on the Audit of the Financial Report
Opinion
Bentleys®
THINKING AHEAD
Bentleys Audit & Corporate
rNA) Pty Ltd
London House
Level 3,
216 St Georges Terrace
Perth 'NA 6000
PO Box 7775
We have audited the financial
report of Classic Minerals Limited ("the Company"), which
6850
Cloisters Square WA
comprises the statement of financial
position
as at 30 June 2020, the statement of profit
or loss and other comprehensive
income, the statement of changes in equity and the
ABi\l33 121 222802
statement of cash flows for the year then ended, and notes to the financial
statements,
T +61 8 9226 4500
including
a summary of significant
accounting
policies,
and the directors'
declaration.
F +61 8 9226 4300
In our opinion:
bentleys.com.au
a. the accompanying financial
report of the Company is in accordance with the
Corporations
Act 2001, including:
(i) giving a true and fair view of the Company's financial position
as at 30 June
2020 and of its financial
perfonmance
for the year
then ended; and
(ii) complying with Australian
Accounting Standards
and the Corporations
Regulations
2001.
b. the financial
report also complies with International
Financial
Reporting Standards
as disclosed
in Note 2.
Basis for Opinion
We conducted our audit in accordance with Australian
Auditing Standards. Those
standards require that we comply with relevant ethical requirements
relating
to audit
engagements and plan and perfonm the audit to obtain reasonable assurance about
whether the financial
report is free from material misstatement.
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 Company in accordance
with the auditor independence
requirements
of the Corporations
Act 2001 and the ethical
requirements
of the Accounting Professional
and Ethical Standards Board's APES 110
Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of
the financial
report in Australia.
We have also fulfilled
our other ethical responsibilities
in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient
and appropriate
to
provide a basis for our opinion.
A\\\n\a\
A lTI€rrber of S;ntleys, a nSf':lCfk of ndeper.aeni
as 6€:r!ieyS. Ali n-.ernbers of the
lirri!ted ty
Go sche,-ne appraied uneer Pro�essklr.al Standards LeglStitla1.
B€tlU9}'S Net'a'''cr':< are affiialed
GLOBAL.
acco unting fi'1Tl$ located d11'OUghcut .A.usu3lia. New
()r)Iy and are separaie leg8.1 entities and nOt in PartnerShip.
Ze.aJand and Cl"Yra thaI
Uabity
trcce
) Advisors
) Accountants
) Auditors
Independent
To the Members of Classic Minerals Limited (Continued)
Auditor's Report
Bentleys'
Material Uncertainty Related to Going Concern
We draw attention
to Note 2 in the financial
report, which indicates
that the Company incurred a net loss of
$15,669,186
during the year ended 30 June 2020. As stated in Note 2, these events or conditions,
along with
other matters as set forth in Note 2, indicate that a material uncertainty
exists that may cast
significant
doubt on
the Company's ability
to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters
are those matters that, in our professional
judgement,
were of most significance
in our audit
of the financial
report of the current period. These
matters were addressed in the context of our audit of the
financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration
and evaluation expenditure
Our procedures included,
amongst others:
( Refer to Note 10)
» Assessed management's determination
of its
areas of interest
for consistency
with the
The carrying amount of exploration
and evaluation
tenements in which the Company holds an
expenditure
as at 30 June 2020 was $1,826,540.
interest
and the exploration
programmes
planned for those tenements.
definition
the
in AASB 6. This involved analysing
Exploration
and evaluation
expenditure
is a key audit
» Agreed the terms of acquisition
agreements and
matter due to:
on a sample basis corroborated
rights to tenure
, The significance
of the balance to the Company's
to government registries
and relevant
financial
position;
agreements as applicable;
» The level of judgement required in evaluating
, For each area of interest,
we assessed the
management's application
of the requirements
of
Company's rights
to tenure by corroborating
to
AASB 6 Exploration
for and Evaluation
of Mineral
government registries
and evaluating
Resources ("AASB
6"). AASB 6 is an industry
agreements in place with other parties as
specific accounting standard requiring the
applicable.
application
of significant
judgements,
estimates
» Considered the activities
in each area of interest
and industry knowledge. This includes specific
to date and assessed the planned future
requirements for expenditure
to be capitalised
as
activities
for each area of interest
by evaluating
an asset and subsequent requirements
which
budgets.
must be complied with for capitalised
expenditure
to continue to be carried as an asset; and
» Substantiated
a sample of expenditure
by
agreeing to supporting
documentation.
The assessment of impairment of exploration
and
» We assessed each area of interest
for one or
evaluation
expenditure
being inherently
difficult.
more of the following
circumstances
that may
indicate
impairment
of the capitalised
expenditure:
» the licenses for the right to explore expiring
in
the near future or are not expected to be
renewed;
» substantive expenditure
for
further
exploration
in the specific
area is neither
budgeted or planned
Independent
To the Members of Classic Minerals Limited (Continued)
Auditor's Report
Bentleys
Key audit matter
How our audit addressed the key audit matter
) decision or intent by the Company to
discontinue
activities
in the specific area of
interest due to lack of commercially
viable
quantities
and
of resources;
) data indicating
that, although a development
in the specific area is likely to proceed, the
carrying amount of the exploration
asset is
unlikely to be recovered in full from
successful
development
or sale.
Borrowings
(refer to Note 15)
, Assessed the appropriateness
of the disclosures
included in the relevant notes to the financial
statements.
Our procedures included,
amongst others:
) Analysed the shareholder
loan agreements to
identify key terms and conditions;
The Company has secured short term loans from
, Assessed the mathematical
accuracy of the
shareholders
of $751,048 as at 30 June 2020.
interest
expense;
Borrowings are considered
to be a key audit matter
supporting
documentation.
due to:
» Obtained confirmation
of the balance at 30 June
, Agreed the repayment and receipt of loans to
2020 from the lenders; and
, The significance
of the balances to the
Company's financial
position;
) Assessed the appropriateness
of the disclosures
» Specific risks we identified
surrounding
the loans
included in the relevant notes to the financial
statements.
relating
of the
to the rights and obligations
Company in repaying the shareholder
loans with
and
cash, shares and options;
Whether the shareholder
loans have been accurately
recorded at year end based on the terms of the loan
agreements.
Share-based payments
(refer to Note 16)
During the year the company issued shares, options Our procedures included,
amongst others:
and performance
rights.
) Analysed contractual
key
agreement to identify
Share-based
payments are considered
to be a key
terms and conditions of the share-based
payments issued and relevant vesting conditions
audit matter
due to:
in accordance with AASB 2;
) The significance
of the balances to the
Company's financial
position;
assess the assumptions
and inputs used;
» Assessed the amount recognised
during the
) Evaluated management's valuation methods
and
» The level of judgement required in evaluating
period against relevant
vesting conditions;
and
management's application
of the requirements
of
) Assessed the appropriateness
of the disclosures
AASB 2 Share-based
Payment ("AASB 2');
included in the relevant
notes to the financial
statements.
Independent
To the Members of Classic Minerals Limited (Continued)
Auditor's Report
8entleys'
Key audit matter
How our audit addressed the key audit matter
, Use of the Black-scholes valuation model to
determine the fair value of the options granted;
and
) Use of the Monte-Carlo valuation model to
determine the fair value of the performance rights
granted with market based conditions.
Other Information
The directors
are responsible
for the other information.
The other information
comprises the
information
included
in the Company's annual report for
the year ended 30 June 2020 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 Note 2, the directors
also
state in accordance with Australian
Accounting
Standard AASB 1 01 Presentation of Financial
Statements, that
the financial report complies with International
Financial
Reporting Standards.
In preparing
the financial report, the directors
are responsible
for assessing the Company's ability
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 Company or to cease operations, or has n o
realistic
alternative
but t o d o so.
Auditor's Responsibilities for the Audit of the Financial Report
Our responsibility
is to express an opinion on the financial
report based on our audit. 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
is a high
report that includes our opinion. Reasonable assurance
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.
Independent
To the Members of Classic Minerals Limited (Continued)
Auditor's Report
Bentleys
As part of an audit in accordance with the Australian
Auditing Standards,
we exercise professional
judgement
and maintain professional
scepticism throughout
the audit. We also:
)
)
�
Identify and
assess the risks of material misstatement
of the financial report, whether due to fraud or error,
design and perform audit procedures
responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement
resulting
from fraud is higher than for one resulting
from error, as fraud may involve collusion,
forgery,
intentional
omissions,
misrepresentations,
or the override of intemal control.
Obtain an understanding
of internal
control relevant to the audit in order to design audit procedures that
are appropriate
in the circumstances,
but not for the purpose of expressing
an opinion on the effectiveness
of the Company's internal control.
Evaluate the appropriateness
of accounting policies used and the reasonableness
of accounting
estimates and related disclosures
made by the directors.
Conclude on the appropriateness of the directors'
use of the going concem basis
of accounting and,
based on the audit evidence
obtained,
whether a material
uncertainty
exists related to events or conditions
that may cast significant
doubt on the Company's ability
to continue as a going concern. If we conclude
that a material uncertainty
exists, we are required to draw attention
in our auditor's
report to the related
disclosures
in the financial
report or, if such disclosures
are inadequate,
to modify our opinion. Our
conclusions
are based on the audit evidence
obtained up to the date of our auditor's
report. However,
future events or conditions
may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation,
structure
and content of the financial
report, including
the disclosures,
and whether the financial report represents
the underlying
transactions
and events in a manner that
achieves fair presentation.
Obtain sufficient appropriate
audit evidence regarding
the financial information
of the entities
or business
activities
within the Company to express an opinion on the financial report. We are responsible
for the
direction,
supervision
and performance of the Company audit. We remain solely responsible
for our audit
opinion.
We communicate with the directors
regarding,
among other
matters, the planned scope and timing of the audit
and significant audit
findings, including
any significant
deficiencies
in internal control
that we identify during our
audit.
We also provide the directors
with a statement that we have complied with relevant ethical requirements
regarding
independence, and to communicate with them all relationships and
other matters that may reasonably
be thought to bear on our independence,
and where applicable,
related safeguards.
From the matters communicated
with the directors,
we determine those matters that were of most significan
ce
in the audit of the financial
report of the current period
and are therefore
the key audit mailers. We describe
these matters in our auditor's report
unless law or regulation
precludes public disclosure
about the matter or
when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest
benefits of such communication.
Independent
To the Members of Classic Minerals Limited
Auditor's Report
(Continued)
Bentleys
Report on the Remuneration Report
We have audited the Remuneration
Report included in the directors'
report for the year ended 30 June 2020.
The directors
of the Company are responsible for the preparation
and presentation
of the remuneration
report in
accordance with s 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.
Auditor's O pinio n
In our opinion,
the Remuneration Report o f the Company, f o r the year ended 30 June 2020, complies with section
300A of the Corporations Act 2001.
�'J
::;}
BENTL
Chartered Accountants
0.;co�
Partner
Dated at Perth this 1 7th day of September 2020.
CLASSIC MINERALS LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHE R COMPREHENSIVE INCOME
For the
year ended 30 June 2020
Note
3
3
4
4
5
30 June 2020
$
30 JUlie 2019
$
1 ,314,506
48,806
( 1,459,921 )
(349,873)
(656,475)
( 1 48,544)
(7,066,230)
( 1,637,684)
(204,2 8 1 )
1 7 , 9 1 5
(2,331 )
(5,525,074)
300,973
( 1,330,780)
(98,956)
(36 1,005)
(773)
(56,375)
( 1,737,867)
( 1 ,255,788)
(52,458)
(86,584)
(46,562)
(707,721)
(15,669,186)
(5,433,896)
(15,669,
1 86)
(5,433,896)
{15,669.1
86}
{5,433,896}
6
(0.25)
(0.20)
and consultants
expense
and marketing
expenses
& professional fees
& development
rebate
Research
Other income
Employee benefits
Advertising
Legal expenses
Commissions
Depreciation
Exploration
Financing
charges
Travel expenses
Occupancy expenses
Loss o n asset disposal
Administration
expenses
expenses
and amortisation
expense
Profit/CL
oss) before income tax expense
Income tax expense
Profit/CLoss) for the year
Other comprehensive
Total comprehensive
income,
loss for year
net of income tax
Basic (loss)
per share (cents
per share)
The accompanying notes form part of this financial
report.
-22-
CLASSIC MINERALS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
CURRENT ASSETS
Cash and
Trade and
Other current
TOTAL CURRENT ASSETS
assets
cash equivalen
ts
other receivables
evaluation
NON-CURRENT
ASSETS
Exploration and
Right to use assets
Plant and equipment
Other non-current
assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Borrowings
TOTAL CURRENT LIABILITIES
NON-CURR ENT LIABILITIES
Borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET (LIABILITIES)/
ASSETS
capital
EQUITY
Issued
Reserves
Accumulated losses
TOTAL EQUITY
Note
7
8
9
10
1 7
I I
12
1 3
14
1 5
1 5
30 June 2020
30 JUlie 2019
$
S
488,608
99,945
167,071
755,624
135,123
466,1 78
90,31 4
691 ,6 1 5
1 ,826,540
1,550,000
1 29,791
684,733
4,1 42
r
2,645,206
170,735
3,642
1 ,724,377
3,400,830
2,415,992
3,237,299
79,588
1 ,927,075
62
5,243,9
2,044,760
86,573
772,508
1
2,903,84
8 1 ,070
8 1,070
,
5,325,032
02)
(1,924,2
2,903,841
(487,849)
1 6
1 6(a)
35,866,038
24,482,958
3 01 4676
, ,
(40,804,91 6)
(1,924,
202)
1 64,923
(25 , 1 35,730)
(487,849)
The accompanying notes form part of this finanCial report.
-23 -
CLASSIC MINERALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR
ENDED 30 JUNE 2020
Balance
at 30 June 201 9
24,482,958 1 64,923 (25,135,730)
(487,849)
Issued
Capital
$
Reserves A ccumulated
Losses
$
Total
Eqllity
$
with owners recorded
year
Loss for the
Income
Other Comprehensive
Total Comprehensive
Income/(Loss)
Transactions
in equity
directly
issued
Options
Performance
Exercise
Shares issued (net
year
of expenses)
rights issued
of options
during the
( 15,669,1 86)
( 15,669,
1 86)
( 15,669,1 86)
( 15,669,1 86)
882,253
1 ,967,500
280,000
882,253
1,967,500
280,000
1 1,1 03,080
1 1, 1 03,080
Balance
at 30 June 2020
35,866,038 3,01 4,676 (40,804,91 6)
( 1,924,202)
Balance at 30 June 201 8 (restate
d)
20,262,695
( 1 9,701 ,834)
560,861
IsslIed
Reserves Accllmlliated
Total
Capital
$
Losses
Eqllity
$
$
Loss for the year
Income
Other Comprehensive
Total Comprehensive
Income/(Loss)
Transactions
in equity
directly
Options
issued
Shares issued
year
with owners recorded
(net of expenses)
the
during
(5,433,896)
(5,433,896)
(5,433,
896)
(5,433,896)
1 64,293
1 64,923
4,220,263
4,220,263
Balance
at 30 June 201 9
24,482,958 1 64,923 �25,135,730)
�487,849)
The accompanying notes form part of this financial
report.
-24-
CLASSIC MINERALS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 J U N E 2020
& Development rebate
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt of
Research
A TO Cash Flow Boost
Payments
paid
Interest
Interest
received
Net cash (outflows)
to suppliers and
from operating
activities
employees
201 7/ 1 8
30 June 2020
30 JUlie 2019
Note
$
$
1,31 5,506
48,660
1 , 278,784
(5,435,880)
-
1 57
2 1
(4,071,557)
(2,908,27
1 )
(257,500)
973
( 1,882, 0 1 4)
CASH FLOWS FROM INVESTING
Proceeds
Purchase
Purchase
Net cash
from sales of tenements
of fixed assets
of prospects
(outflows)
from investing
activities
ACTIVITIES
ACTIVITIES
raising
entitlement
CASH FLOWS FROM FINANCING
Share capital received
costs
Capital
Proceeds
from options
Repayment
Proceeds
Net cash inflows
Net increase!
Cash and cash
Cash and cash equivalents
(decrease)
in cash held
at the
equivalents
of loans and related
of short term loans
at the end of
beginning
interest
of the year
the year
from fmancing activities
330,000
(421 ,977)
{26,540}
{1 1 8,5I 7}
(39,437)
(250,000)
{289,437}
4,457,840
(41 1,897)
2,816,960
(\38,000)
1 5
1 5
48,775
( 1,824,039)
2,272,880
4,543,559
I 353,485
2 1(b)
1 35,123
488,608
14,1 69
( 1,744,641 )
631,985
1,580,473
(590,978)
726,1 0 1
135,1 23
The accompanying notes form part of this financial
report.
-25 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
1. Corporate
Information
The financial
for issue in accordance
report
Limited
of the directors
with a resolution
on 1 7 September 2020.
of Classic
Minerals
(the Company) for the year ended
30 June 2020 was authorised
2. Summary of Significant
Accounting
Policies
Basis of preparation
The financial
Accounting Standards
(including
of the Australian
is a general
Accounting
report
purpose
the Australian
report
Accounting
financial
Interpreta
Act 2001 .
the Corporation
Standards
Board and
that has been prepared
in accordance
tions),
other authoritative
with Australian
pronouncemen
ts
Standards
Accounting
report containing
Australian
financial
Compliance with Australian Accounting Standards
with International
report
financial
that the financial
policies
accounting
unless
applied
Financial
are presented
policies
information
ensures
Material
been consistently
below and have
and reliable
accounting
Standards.
Reporting
relevant
set out
statements and notes also comply
in the preparation
of this
adopted
stated.
otherwise
that the AASB has concluded
would result
in a
about transactions,
events and conditions.
The financial
applicable, by
report has been prepared
urement
the meas
on an accruals basis
non-current
and is based on historical costs,
modified, where
assets
at fair value of selected
financial
assets,
and financial liabilities.
Going Concern
The accounts have been prepared
and the
realisation
recognised
of assets
a loss o f $ 1 5 ,669,186 for the year ended 30
on the going concern
and settlement of
basis,
liabilities
continuity
course of business.
which contemplates
of normal activities
The Company
in the ordinary
June 2020 (201 9: $5,433,896).
The net working capital
position
The Company has expenditure
$609,095
commitments
which potentially could fa
of the Company at 30 June 2020 was a deficit
of$4,488,338
(201 9 : $2,212,226).
relating
to exploration
expenditure
obligations for their proj
ects of
ll due in the twelve months to 30 June 2021 .
O n 2 0 July 2020, the Company announced
future on site
processing
$3.9 mill ion and has been disclosed
ore at its Kat Gap Gold Pro
in the commitment.
that it has secured
of gold
a Gekko
ject. The agreed
gold gravity processing
value of the contract
plant to be used for
is approximately
As disclosed in
3 October
applied
utilise to
2020 and 20 October
for an R&D rebate of
repay these loans.
2020 amounting
approximately
note 1 5, the Company has shareholder
loans owing as at 30 June 2020 which are payable
on
to $751,048 plus accrued
interest
of $ 1 25,376.
The Company has
$ 1 .9 million
in relation
to the 2020 financial
year which
it expects to
have prepared
The Directors
to meet all
report.
a cashflow
and workings
forecast
capital
to continue
which indicates that
for the period 12
is dependent
requirements
as a going concern
on:
the Company need to raise additional
capital
this
months from the date of signing
The ability of the Company
commitments
• The ability
• Containing
of the Company to raise capital
cash outflows based
on working capital
requirements.
from equity
markets
as required; and
uncertainty
that may cast significant doubt
a material
concern.
and extinguish
represent
The above conditions
as a going
Company to continue
be required
its assets
to realise
amounts different to those stated in the financial
adjustments relating to the recoverabil
classif
that might result
meet its debts as and when they fall due.
of liabilities
ication
as a going concern
about the ability
of the
it may
other than in the normal course of business
and at
any
do not include
to the amount and
as a going concern and
statements
amounts or
The financial
carrying
ity and classification
of asset
should the Company be unable to continue
its liabilities
statements.
Should the Company be unable to continue
-26-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2. Summary of Significant
Accounting
Policies
(continued)
a) Cash and cash equi
valents
Cash and cash equivalents comprise cash
net of outstanding
bank overdrafts.
on hand, cash in banks and investments
in money market
instruments,
b) E mployec
benefits
Provision
when it is probable
is made for benefits
accruing
in respect
to employees
will be required
and they
that settlement
of wages and salaries,
annual leave, and sick leave
reliably.
are capable
of being measured
Provisions
values
nominal
made in respect
expected
of employee benefits
to be settled
within 12
months,
are measured at
their
using the remuneration rate expected
at the time of settlement.
to apply
Provisions
measured
provided
as the present
by employees up to reporting
date.
made in respect
of employee
benefits
which are not expected
within 1 2 months are
value of the estimated future cash outflows
in respect
of services
to be settled
to be made by the entity
c) Recognition
And Measurement
-Financial
Instruments
and financial liabilities
a party to the contractual
are recognised
in the
of the
provisions
for trade receivables)
instrument.
measured
are initially
Company's statement
assets
Financial
Company becomes
Financial
except where the instrument
expensed
instruments
to profit
(except
or loss immediately.
is classified
"at fair value through
profit
or loss",
in which
costs are
case transaction
of financial
position
when the
at fair value plus transaction
costs,
and subsequent
measurement
are subsequently
measured
at:
other comprehensive
or
profit
or loss.
income;
Classification
assets
Financial
assets
Financial
• amortised
• fair value through
• fair value through
cost;
A financial asset
• the financial
• the contractual
and interest
that meets the
following
asset is managed solely
conditions
to collect
is subsequently
contractual
at amortised
measured
and
cash flows;
cost:
terms within
on the principal
the financial
amount outstanding
on specified
asset give rise to cash flows that are solely
dates.
payments
of principal
A financial
comprehensive income:
asset that meets the following
conditions
is subsequently
measured
at fair value through other
and interest on
• the contractual terms
within
the principal
model for managing
of the financial
asset.
the financial
amount outstanding on
asset give rise to cash flows that are solely
dates;
specified
comprises
the financial
assets
• the business
and the
selling
payments
of principal
both contractual
cash flows collection
other comprehensive
assets that
do not meet
income are subsequently
By default, all other financial
through
The initial
option on initial
ication
classif
the measurement
measured
to measure at
at fair value
conditions
through
fair value through
asset is derecognised.
of amortised
profit
profit
designation of the financial
instruments
and is irrevocable
until the financial
or loss.
or loss is a one-time
cost and fair value
Financial
Financial
liabilities
liabilities
are subsequently measured
cost; or
at:
• amortised
• fair value through
profit
or loss.
-27 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2. Summary of Significant Accounting
Policies
(continued)
A financial
liability
is measured at fair value through
of an acquirer in a
profit and loss
business
if the financial liability
is:
combination to which AASB 3: Business
• a contingent
Combinations
or
• held for trading;
designated
• initially
consideration
applies;
All other financial
liabilities
at amortised
cost using the effective
interest
method.
as at fair value through
are subsequently
measured
profit or loss.
Derecognition
Derecognition
statement of financial
to the
position.
refers
removal
of a previously
recognised
financial asset or financial liabilit
y from the
to its cash flows expires,
or the asset is
offinancial
assets
Derecognition
A financial
transferred in such
All of the following
asset is de recognised
when the holder's contractual
rights
of ownership
criteria
a way that all the risks and rewards
need to be satisfied
cash flows from the asset has expired
• the right to receive
• all risk and rewards
of ownership
• the Company no longer controls
to sell the asset to a third
of a financial
are substantially
asset:
for derecognition
of financial
transferred;
or been
and
of the asset have been substant
erred;
ially transf
the asset (ie the Company has no practical
ability
party).
cost, the difference between
decision
asset measured
sum of the consideration
of a debt instrument
received
classified
at amortised
and receivable
as at fair value through
is recognised
transferred.
On de recognition
amount and the
On derecognition
cumulative
loss.
gain or loss previously
accumulated in the investment
revaluation
to make a unilateral
the asset's
carrying
or loss.
in profit
the
other comprehensive income,
or
to profit
reserve is reclassified
On derecognition
comprehensive
to profit
is not reclassified
income,
of an investment
in equity which was elected to
be classified
under fair value through
the cumulative
gain or loss previously
in the investment
or loss, but is transferred
to retained
accumulated
earnings.
other
reserve
revaluation
Derecognition
offinancialliabilities
when it is extinguished
of an existing
financial
(ie when the obligation
for a new one
liability
is treated
liability
in the contract
with substantially
is discharged,
modified terms,
or a
of the existing
as an extinguishment
to the terms of a financial
cancelled
liability
ty is derecognised
An exchange
modification
A liabili
or expires).
substantial
and recognition
of a new financial
The difference between
payable,
any non-cash
including
liability.
the carrying amount of the financial
derecognised
and the consideration
paid and
assets transferred
liability
or liabilities assumed,
is recognised
in profit
or loss.
Impairment
The Company recognises
amortised
cost or fair value through
a loss
allowance
for expected
credit
losses
on financial assets
that are measured
at
other comprehensive income.
Loss allowance
financial
assets
equity instruments
is not recognised
measured at fair value thro
measured
for:
loss; or
ugh profit or
at fair value through
other comprehensive
income.
The Company uses the simplified approach
to impairment, as applicable under
AASB 9: Financial
Instruments:
Simplified approach
The simplified approach
requires
the recognition
• trade receivables or contract
from transactions
within the scope of AASB 1 5 : Revenue
does not require tracking of
credit
of lifetime expected
that result
loss at all times.
changes
assets
in credit risk
This approach
at every reporting
is applicable
period,
to:
but instead
from Contracts
with Customers
and which do not contain
a significant financing
component;
and
• lease receivables.
-28 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
2. Summary of Significant
Accounting
Policies
(continued)
the expected
data to get to an expected
In measuring
various
experience,
credit
etc).
loss, a provision
matrix for trade
receivables
was used taking into consideration
credit
loss (ie diversity
of customer
base, appropria
te groups of
historical loss
Recognition
At each reporting
in the statement
The carrying
asset.
of expected credit
losses in financial
statements
the movement
date, the Company recognises
in the loss allowance
as an impairment
gain or loss
of profit
amount of
or loss and other comprehensive
financial assets
income.
at amortised
measured
cost includes
the loss allowance relating
to that
Assets measured at
fair value recognised
comprehensive
from other
fair value through
other comprehensive
income are recognised
at fair value,
with changes
in
in other comprehensive income.
Amounts in relation
to change in credit
risk are transferred
income to profit or
loss at every reporting
period.
For financial assets that are
for loss allowance
provision
unrecognised
is created in the
(eg loan commitments yet to be
financial
drawn, financial
to recognise
statement of
position
guarantees), a
the loss allowance.
d) Goods
and services tax
Revenues, expenses and
i. where the amount of GST incurred
assets
the cost of acquisition
or as part
of an item
of an asset
and payables
ii. for receivables
which are recognised
from the taxation
or
of expense;
of GST;
inclusive
are recognised
net of the amount of goods and services
tax (GST), except:
is not recoverable
authority, it is recognised
as part of
The net amount of GST recoverable
or payables.
from, or payable
to, the
taxation
authority
is included as
part of receivables
Cash flows are included
from investing
as operating cash flows.
in the cash flow statement
on a gross basis.
and financing activities
which is recoverable
from, or payable
The GST component of cash flows arising
authority
is classified
taxation
to, the
e) Impairment
of assets
date, the Company
there is any indication
At each reporting
whether
the recoverable
Where the asset does not generate
recoverable
amount of the cash-genera
reviews
that those assets
amount of the asset is estimated
the carrying
amounts of
its tangible
have suffered an impairment loss.
in order to determine
cash flows that are independent
the extent
from other assets,
the entity
of the impairment
loss (if any).
estimates
the
and intangible
assets
If any such indication
to determine
exists,
ting unit to which
the asset belongs.
Intangible
armually
with indefmite useful lives and intangible
there is an indication
and whenever
assets
that the asset may be impaired.
assets
not yet
available
for use are tested
for impairment
Recoverable amount
estimated
market assessments of the time value
cash flows have not been adjusted.
future cash flows are discounted
is the higher of fair value less costs to
sell and value in use.
to their present
value using
a pre-tax discount
r which
of money and the risks specific to the asset fo
the estimates of future
In assessing value
the
current
in use,
rate that reflects
amount of an asset (or cash-generating
unit) is estimated to be less than its carrying
If the recoverable
carrying
recognised
carried
asset is
amount of the asset
in the Statement
at fair value,
(cash-generating
unit) is reduced
to its recoverable
amount.
of Profit or
in which case
Loss and Other Comprehensive Income
decrease.
as a revaluation
immediately, unless
the impairment
loss is treated
the
amount,
loss is
An impairment
the relevant
-29-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR
ENDED 30 JUNE 2020
2. Sum
mary of Significant
Accounting Policies
(continued)
e) Impairment
ofassets
(continued)
reverses,
loss subsequently
estimate of its recoverable
Where an impainnent
to the revised
increased
amount does not exceed the carrying
recognised
Statement
fair value,
for the asset (cash-generating
of Profit or Loss and Other Comprehensive
in which case the reversal
of the impainnent
amount that would have been
unit) in prior years.
the carrying
amount,
Income immediately, unless
loss is treated
but only to the extent that the increased
had no impairment
determined
A reversal of
an impairment
loss is recognised
asset is carried
the relevant
at
unit) is
carrying
loss been
in the
amount of the asset
(cash-generating
as a revaluation
increase.
t) Income tax
tax is calcula
Current tax
Current
profit or tax loss for the year. It is calculated
enacted
tax for current
that it is unpaid (or refundable).
ted by reference to the
by reporting
date. Current
amount of income tax payable
or recoverable
in respect
using tax
rates and tax laws that have been enacted
of the
taxable
or substant
ively
to the extent
and prior years is recognised as a liability (or asset)
Deferred tax
Deferred
differences
arising
and the corresponding
tax is accounted
tax base of those items.
for using the statement
between
from differences
of financial
the carrying
amount of assets
method in respect
liability
in the
and liabilities
financial
position
statements
of temporary
deferred tax liabilities are
that it is probable
recognised
that sufficient
for all taxable
taxable
differences.
will be available
assets
are
Deferred tax
which deductible
temporary
amounts
to the extent
differences or unused tax losses
if the temporary
are not recognised
and liabilities
(other
than as a result
In principle,
recognised
temporary
liabilities
assets
accounting
differences
profit. Furthennore,
goodwill.
arising from
a deferred
and tax offsets can be utilised.
differences
of a business
tax liabi
giving rise to them arise from the initial
combination)
tax assets
and
of
recognition
income nor
temporary
taxable
to taxable
which affects neither
not recognised
in relation
However,
lity is
against
deferred
Deferred
branches,
differences
assets arising
recognised
benefits
are recognised
tax liabilities
associa
tes and joint ventures
probable that
the temporary
for taxable
except where the
temporary
entity
will not reverse
differences
differences
and it is
is able to control
the reversal
in the foreseeable
arising
on investments
in subsidiaries,
to the
extent
from deductible
temporary
that it is probable
differences and they are expected
associated
differences
that there will be sufficient
to reverse
taxable
in the foreseeable
profits against
future.
with these investments
ofthetemporary
of the temporary
future. Deferred tax
are only
and interests
the
which to utilise
tax assets
liability
Deferred
asset and
or substantively
consequences
carrying
settle the
giving
enacted
and liabilities
are measured
rise to them are realised
by reporting
at the tax rates
or settled,
to apply
tax laws) that
tax rates (and
that are expected
based on
date. The measurement of deferred tax liabilities
the manner
and assets
at the reporting
in which the entity expects,
when the
to the year(s)
have been
reflects
or
date, to recover
enacted
the tax
that would followfrom
amount of its assets and liabilities.
assets
Deferred tax
and the
and liabili
to settle
intends
entity
offset when they relate
basis.
to income taxes levied
on a net
and liabilities
tax assets
its current
ties are
by the same
taxation authority
for the year
Current and deferred tax
Current
when it relates
directly
account
and deferred tax is recognised
to items credited
or where it arises
in equity,
in the determination
of goodwill
or excess.
as an expense
or income in the statement of comprehensive
in which case the deferred
income,
tax is also recognised
except
directly to equity,
or debited
from the accounting
for a business
combination,
in which case it is
taken into
-30-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEM ENTS
FOR THE YEAR ENDED 30 J U N E 2020
2. Summary of Significant
Accounting
Policies
(continued)
g) Payables
Trade payables and
payments
payable
from the purchase of
are recognised
goods and services.
other accounts
resulting
when the
entity
becomes obliged
to make future
h) Presentation
currency
The entity
operates entirely
currency
within Australia and the
presentation
is Australian
dollars.
i) Plant and
equipment
of property,
Each class
depreciation.
excess of
The carrying
the recoverable
plant and equipment
amount of
amount from these assets.
is carried
at cost or fair value less, where
applicable,
any accumulated
plant and equipment
is reviewed
annually by directors
to ensure it is not in
Depreciation
The depreciable
Company commencing
assets
depreciable
are:
amount of all fixed assets
from the time the asset is held ready
diminishing
is depreciated on a
for use. The depreciation
their useful lives
rates used for each class of
value basis over
to the
Class of Fixed Asset
Motor vehicles,
Offic e equipment
Caravan and Quad Bikes
Depreciation
Rate
1 8.75% -3 7.5%
7.5% -1 00%
j) Exploration
and Evaluation
Expenditure
Identifiable
assets
exploration
acquired
are recognised
as assets
at their
cost of acquisition.
Acquired
not expected to be recovered
are not written down
through
assets
exploration
use or sale.
below acquisition
cost until such time as the acquisition
cost is
Subsequent
exploration and evaluation
costs related
written
to an area of interest are
off.
k) Intangi
ble assets
Intangible assets
losses.
with indefinite
lives that are acquired
separately are carried
at cost
less accumulated impairment
I) Provisions
Provisions
probable,
are recognised
and the amount
when the entity
of the provision
has a present
can be measured
obligation,
reliably.
the future sacrifice
of economic
benefits
is
The amount recognised
obligation
provision
present
at reporting
is measured
v alue of those cashflows
.
as a provision
is the best
estimate of the consideration
required
date, taking into account
using the cashflows
the risks and uncertainties surrounding
obligation,
Where a
amount is the
its carrying
the present
estimated to settle
to settle the
the obligation.
present
When some or all of the economic benefits
party, the receivable
of the receivable
as an asset if it
reliably.
can be measured
is recognised
required
to settle
is virtually
a provision
certain
are expected
to be recovered
from a third
that recovery will be received
and the amount
-3 1 -
CLASSIC MINERALS LIMITED
NOTES TO THE F I NANCIAL STATEMENTS
FOR THE YEAR
ENDED 30 J U N E 2020
2. Summary of Significant
Accounting
Policies
(continued)
m) Revenue
recognition
Interest
Interest
financial
revenue
revenue is
asset.
recognised on a
time proportionate
basis that takes into
account
the effective
yield on the
Research
Research
& Development rebate
& development rebate
is recognised
only when the rebate
has been received.
n) Equity based compensation
The Company expenses
options
the shares and/or
Option Reserve
corresponding
equity
is credited.
based compensation
such as share and option issues
after ascribing
is taken up at date of grant and a
a fair value to
issued.
If options vest
at date of grant,
the expense
0) Issued
capital
capital
Issued
on the issue
is recognised
of shares are recog
at the fair value of the consideration
as a reduction
in equity
nised directly
received
of the share proceeds
by the Company.
Any transaction costs
received.
p) Leases
of a contract,
a right-of
The Company as a lessee
At inception
a lease present,
Company is a lessee.
lease term of 1 2 months or less) and leases
line basis over the term
the Company
-use asset
of the lease.
However,
assesses
if the contract
contains
characteristics
of or is a lease. If there is
and a corresponding
that are classified
liability are recognised
by the Company where the
(i.e.
as short-term
leases
all contracts
leases
remaining
on a straight
as an operating expense
with a
of low-value assets
are recognised
Initially,
the lease liability is measured
commencement date. The lease payments
be readily
determined,
at the present
are discounted
the Company uses incremental borrowing
rate.
value of the lease payments
still
at the interest rate implicit
in the lease. If
to be paid at
this rate cannot
the
Lease payments included
in the measurement
of the lease liability
are as follows:
i. fixed lease
ii. variable
payments
lease payments
commencement
date;
less any lease
incentives;
that depend on the index of the
rate, initially
measured
using the index or rate at the
to be payable
exercise price
iii. the amount expected
iv. the
of purchase
v. lease payments
vi. payments
the lease.
options
under extension profits,
for terminating
if the lessee
if the lessee
of penalties
by the lessee
the lease,
under residual
value guarantees;
certain
if reasonably
to exercise
the options;
certain
is reasonably
if the lease term reflects
to exercise
the exercise
and
the options;
to terminate
of options
The right-of-use
made at or before the commencement
use asset is at cost
less accumulated
date and initial
direct
tion and impairment
costs.
deprecia
losses.
The subsequent measurement
lease payments
of the right-of
assets comprise the initial measurement
of the corresponding
lease liability, any
-use assets are
depreciated
over the lease term or useful life of the underlying
asset,
is the
whichever
Right-of
shortest.
-32-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2. Sum m a ry of Significant Accounting Policies
(continued)
q) Leases (continued)
Where a lease transfers
ownership
Company anticipates exercising
underlyi
ng asset.
of the underlying
asset or the costs of the right-of
the specific
-use asset reflects
that the
the useful life of the
asset is depreciated over
a purchase
option,
of a contract,
a right-of
The Company as a lessee
At inception
a lease present,
Company is a lessee.
lease term of 1 2 months or less) and leases
line basis over the term of the lease.
However,
all contracts
the Company assesses
if the contract
liabili
-use asset and a corresponding
that are classified
assets
oflow-value
contains
characteristics
If there is
ty are recognised
by the Company where the
(i.e.
of or is a lease.
as short-term
leases
leases
as an operating
with a remaining
straight
expense on a
are recognised
Initially, the
lease liability is measured
commencement date. The lease payments
be readily
at the present
are discounted
borrowing
uses incremental
determined,
the Company
rate.
value of the lease payments
still to be paid
at the
in the lease. If
this rate cannot
at the interest
rate implicit
Lease payments
included
in the measurement
of the lease liability are as follows:
vii. fixed lease payments
viii.
variable lease payments that
commenceme
nt date;
less any lease incentives;
depend on the index of the rate,
initially
measured
using the index or rate at the
ix. the amount expected
x. the exercise
price of
Xl. lease payments
xii. payments
the lease.
to be payable by the lessee
options
purchase
if the
under residual
value guarantees;
certain
if reasonably
to exercise
the options;
lessee
if the lessee
under extension profits,
for terminating
of penalties
is reasonably
if the lease term reflects
to exercise
the exercise
and
the options;
to terminate
of options
certain
the lease,
assets comprise
The right-of-use
made at or before the commencement date
use asset is at cost less accumulated
the initial
depreciation
measurement
and initial direct costs.
of the corresponding
The subsequent
lease liability,
any lease payments
of the right-of
measurement
losses.
and impairment
-use assets are
depreciated
over the lease term or useful life of the underlying
asset, whichever
is the
Right-of
shortest.
Where a lease transfers
Company anticipates exercising
option,
underlying
ownership
a purchase
of the underlying
asset.
asset or the costs of the right-of
the specific
asset is depreciated
-use asset reflects
over the useful life of the
that the
r) Earnings
per share
Basic e arnings per share is calculated
than dividends)
servicing
adjusted for any bonus element.
of ordinary shares,
equity (other
as a net profit
to members,
and preference share dividends, divided
attributable
adjusted
by the
weighted
average
any costs of
number
to exclude
Diluted earnings
per share is calculated
as net profit
attributable
to members,
adj usted for:
• costs of servicing
• the after tax effect of dividends and interest
than dividends) and preference
ted with dilutive
associa
equity
(other
share dividends;
potential
ordinary
shares
that have been
as expenses; and
recognised
cretionary
other non-dis
of potential ordinary
shares;
ordinary shares,
divided
changes
adjusted for any bonus element.
in revenues
or expenses
by the weighted
average
during the
year that would result
number of ordinary shares and
from the dilution
dilutive potential
-33 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
2. Summary of Significant
Accounting
Policies
(continued)
Asset
s) Sale of Non-Current
Income from the sale of assets
any cost of disposal.
is measured
as the consideration
received
net of the carrying
value of the asset and
t) Share based payments
The Group provides benefits
transactions,
') .
transactions
whereby services
in exchange
to directors,
are rendered
employees and consultants
payment
for shares or rights over shares ('equity-settled
in the form of share-based
The cost o f these equity-settled
to the fair value at the date at
model.
transactions
which they are granted.
with directors,
employees
and consultants
i s measured
b y reference
The fair value is determined
using an appropriate
valuation
is recognised
is conditional
No expense
vesting
or not the market or non-vesting condition
is satisfied,
conditions
for awards that do not ultimately
or non-vesting condition.
are satisfied.
upon a market
vest, except for equity-settled
transactions
for which
irrespective of
whether
These are treated
as vesting
provided
that all other performance and/or service
The cost of equity-settled
the performance
period
in which
and/or service
conditions
are fulfilled.
transactions
is recognised,
together
with a corresponding
increase
in equity,
over the
If the terms of an equity-settled award
not been modified.
An additional
the share-based arrangement,
is recognised
beneficial
or is otherwise
are modified,
expense
for any
modification
to the recipient, as measured
as a minimum an expense
is recognised
that increases
as if the terms had
the total fair value of
at the date of modification.
it is treated
award is
cancelled,
is recognised
for the award
award and designated as a replacement
as if they were
If an equity-settled
recognised
not yet
cancelled
are treated
The dilutive effect, if any, of outstanding
diluted
loss per share.
a modification
options
of the original
as if it had vested
on the date of cancellation,
and any expense
immediately. However,
award on the date
award, as
if a new award is substituted
the cancelled
for the
award
that it is granted,
described
as additional
in the previous
share dilution in the computation
and new
paragraph.
of
is reflected
u) Critical
accounting
judgements,
estimates,
and assumptions
costs
and evaluation
costs are written
and evaluation
Exploration
Exploration
are carried
These costs are carried
stage that permits
forward where right
of tenure of the area of interest
of an area that has not
forward in respect
is current.
reasonable
assessment
of the existence
at statement
of economically
of financial
recoverable
reserves.
position
date reached
a
off in the year they are incurred
apart from acquisition
costs which
disclosed
in the financial
Taxation
Balances
estimates of directors.
Company as they pertain
adjustment has been made
that directors'
to current
for pending
pending
best estimate,
These estimates
take into account
statements and
the notes thereto,
related
both the financial
and the
are based on the best
to taxation,
performance and
understa
position of the
nding thereof.
directors
No
income taxation
or future taxation
legislation,
legisla
by the Austral
tion. The current
ian Taxation Office.
an assessment
income tax position
represents
-34-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
2. Summary of Significant Accounting
Policies
(continued)
u) Critical
accounting
judgements,
estimates,
and assumptions (continued)
figures
by accounting
Comparative
When required
for the current
presentation
When the Company applies
items in its financial statements, a
period
will be disclosed.
financial year.
an accounting
standards,
statement
comparative
figures
have been adjusted to conform to changes in
policy retrospectively,
restatement or reclassifies
makes a retrospective
as at the beginning of
the earliest comparative
of financial
position
v) Application
of new and revised
Accounting
Standards
that are mandatorily
effective
for the current
year
The Company has adopted
the Australian Accounting
adoption
performance
or position
of these Accounting
all of the new, revised
Standards
of the Company during the financial
for the current
did not have any significant
period.
Board ('AASB') that are mandatory
reporting
Standards
and Interpretations
impact on the financial
or amended Accounting
Standards
and Interpretations
issued
period.
by
The
w) New and revised
Australian
Accounting
Standards and
Interpretations
on issue but not yet effective
Standards
Accounting
Australian
mandatory,
Company's
relevant to
have not been early adopted
assessment
the Company, are set out below:
and Interpretations
that have recently
been issued
or amended but are
not yet
by the Company for the reporting
year ended 30 June 2020. The
of the impact of these new or amended Accounting
Standards
and Interpretations, most
Standard/
amendment
Effective
periods
for annual reporting
beginning
on or after
AASB 2018-7 Amendments
to Australian
Accounting
Standards
-Definition
of Material 1 January
2020
AASB 201 9- 1 Amendments
Conceptual
Framework
to Australian
Accounting Standards -
References
to the
AASB 201 9·5 Amendments
of New IFRS
to Australian
Standards Not Yet Issued in
Accounting Standards
Australia
-Disclosure
of the Effect
1 January
2020
1 January 2020
AASB 2020-1 Amendments
as Current
Liabilities
or Non-Current
to Australian
Accounting
Standards
- Classification
of
1 January
2022
AASB 2020-3 Amendments
2018-2020 and Other Amendments
to Australian Accounting Standards - Annual
Improvements
1 January
2022
The Directors have determined that
not yet adopted
there is no material
by the Company,
and therefore, no change is necessary
impact of the standards
and interpreta
tions on issue but
to the accounting
policies.
-35 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 3: REVENUE
OPERATIONS
FROM CONTINUING
Research
& Development Rebate
Interest
Other Income
Income
(i)
30lune2020
30 II/lie 2019
$
S
1,314,506
1 5 8
48,648
1,363,312
973
300,000
300,973
(i) Relates
to government
grant relating
to Cashflow
Boost and Jobkeeper
payments
Company announced the Earn in and Joint agreement
Pty Ltd and as part of the agreement,
subsequen
on 5th July 201 9. Refer to note 8(ii))
tly received
the Company will receive
over Fraser Range tenements
(201 9 : On 17 June 201 9, the
Newsearch
with Independence
which was
cash payment of $300,000
an initial
NOTE 4: ADMINISTRATION AND DEPRECIATION AND
AMORTISA TION EXPENSES
30 II/lie 2019
S
The loss before income tax has been
expenses:
arrived
at after charging
the following
expenses
(a) Administration
Share based payments
Insurance expenses
Telephone
expenses
Other administration
expenses
4,887,971
72,480
8,603
556,020
5,525,074
80,603
9,834
6,805
6 1 0,479
707,721
(b) Deprecia
Amortisation
Depreciation
tion and amortisation expenses
related
related to
plant and equipment
to right to use assets
55,625
92,91 9
1 48,544
56,375
56,375
-36-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR
ENDED 30 J U N E 2020
NOTE 5: INCOME TAX
(a) Current
Current year
tax expense
30 June 2020
30 JUlie 2019
$
$
I
I
5(b)
reconciliation
between
tax expense
and pre-tax
net profit
it) calculated at 27.5%
before tax
(b) Numerical
Profit!
(Loss)
Income tax expense/(benef
Tax effect of:
-Non-deductible
-Impairment
- Share based payments
-Current
year revenue
expenses
losses
recognised
timing differences
tax asset has been
-Unrecognised
- Exploration
Taxable
costs
profit on disposal
oftenements
received
-Research
Income tax expense
& Development
on pre-tax
rebate
net profit
for which no def
erred
(c) Unrecognised
deferred tax balances
at 27.5%
erred tax assets
The following def
brought
(201 9 : 27.5%) have not been
Unrecognised
tax asset -tax losses
deferred
Unrecognised
differences
Net deferred tax assets
deferred tax as set-other timing
to account:
{15,669,1 862
(4,309,026)
(5,433,896)
( 1,494,321)
1,601,922
19,382
667,991
22,1 66
2,400,602
1 ,294,572
I
{36 1 ,4892
1 58,201
4,801,989
2,829,067
295,902
1
5,097,08
262,268
3,091 ,335
deferred tax assets
not brought
into account
will only be of a benefit
to the Company if future assessable
to be complied
with and the Company
to meet the continuity
to be realised,
are able
income
imposed
for deductibility
and/or
of ownership
of a nature and amount sufficient
to enable the
benefits
the conditions
The net
is derived
by the
continuity
tax legisla
tion continue
tests.
of business
prepared
has been
of a company to utilise
This tax note
ability
prior year tax
within the Income Tax Legislation.
undertaken.
on the basis that
prior year losses
will depend upon the satisfaction
are able to be recouped.
losses
of the loss recoupment
tests contained
It should be noted that the
At the time of preparing
the financial
statements, this assessment
has not been
- 37 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR
ENDED 30 J U N E 2020
NOTE 6: EARNINGS PER SHARE
Profit/(loss) for the year
average
Weighted
Earnings/(loss)
per share -cents
number of ordinary
30 June
shares at
30 June 2020
30 JlIlle 2019
$
$
(5,433,896)
2,652,563,140
(0.20)
NOTE 7 : CASH AND CASH EQUIVALENTS
30 June 2020
30 JUlie 2019
$
$
Cash at bank
488,608
135,123
NOTE 8: TRADE AND OTHER RECEIVABLES
30 June 2020
30 Jllne 2019
$
$
Current
fro m Independence
Group NL (ii)
Receivable
Other receivables
Bonds and security deposits
debt
Less: Provision
for doubtful
191,053
4 1 ,270
(132,378)
99,945
330,000
248,553
20,000
( 132,375)
466 , 1 78
As at 30 June 2020
trade and other receivables
do not contain
any impaired
assets.
(i) The Company is in the process
to lodge
for Research
Rebate for 2019/20, however as
the amount is
no accruals
has been made in relation
to the rebate
& Development
as at 30 June 2020.
uncertain,
(ii) During the period,
Range tenements
the Company received
an initial
to the Earn in and
Joint agreement
over Fraser
with Independence
Newsearch
cash payment
Ply Ltd of $300,000
related
+ GST.
NOTE 9: OTHER ASSETS
Current
Prepaid
Expenses
30 June 2020
30 Jlllle 2019
$
$
1 67,071
1 67,071
90,31 4
90,31 4
During the year, the Company has capitalised
and digital
Salkanovic).
marketing
expenses.
There was no prepaid
some insurance,
prepaid
Directors
rents related
fees as at 30 June
to tenements,
2020 (20 1 9 : $ 1 6,600 to Frederick
license
subscriptions,
-38 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 0 : EXPLORA nON AND EVALUA nON
ASSETS
Current
Forrestania
Fraser
Kat Gap tenements (iii)
project (i)
Range Project -Acquisition
Costs (ii)
30 June 2020
30 JUlie 2019
S
S
1 ,250,000
1 ,250,000
250,000
326,540
300,000
1 ,826,540
1,550,000
The recoupment
dependent
on the successful
of costs carried
forward in relation
to areas of interest
development
and commercial
exploitation
or sale
in the exploration
and evaluation phase is
areas.
of the respective
(i) The
Company entered
into an agreement
in 5 exploration
licences,
licences and 2 prospecting
collectively
consideration,
known as the Forrestania
being the
issue of
85,000,000 shares.
to acquire
Gold Project.
80% gold rights
The acquisition
was completed on 22 August 201 7, with the payment of
the
(ii) The Company entered
into an option
agreement
dated 5 September
201 8 the agreement
with X Minerals
mining interest
tenements and
201 9 and opted to execute
Pty Ltd dated 28 October
those tenements for consideration
of $45,000
issued
Those shares were
per shares.
on 22 November
2019.
in E28/28 I I and E28/28 12. On 7 November
201 9 the Company agree to a proposal
the options
shares
in cash and $205,000 in
and agreed to purchase
through
the tenements
the issuance
of 1 02,500,000 shares
at $0.002
Pty Ltd to acquire the
from X Minerals
and mining interests
in
(iii)
On 5 July 2 0 1 7, the Company signed
licences
$55,000
Additionally,
and acquired the
- E74/422
(GST inclusive)
full ownership
the Company must spend $ 140,000 on the tenements
of the tenement.
the tenements
during
Pty Ltd to acquire
and E74/467 also known as the Kat Gap project. Under this agreement,
with Sulphide
an agreement
Resources
the Company paid an Option Fee of
1 00% interest
in two exploration
and has the
right to purchase
within 18 months for a further consideration of $250,000.
the option
period.
The company has paid the $250,000
NOTE 1 1: PLANT AND EQUIPMENT
Plant &
Motor Vehicle Vehicles,
under Hire Caravans
Equipment Purchase and Quad Bikes TOTAL
Motor
Amount
at 30 June 2019
Gross Carrying
Balance
Additions
Disposals
s
Write-off
at 30 June 2020
Balance
at 30 June 2019
Accumulated Depreciation
Balance
Depreciation
Disposals
Write-offs
Balance
at 30 June 2020
$
1 94,007 1 39,853 1 33,874
223,375
$
$
$
467,734
394,443 6 17,81 8
(66,883) (66,883)
4 17,382 139,853 461,434 1,018,669
83,822
36,591
97,1 3 0
1 7,451
1 16,047 296,999
3 8,877
92,91 9
1 20,41 3
1 14,581
98,942 333,936
{55,9822
{55,9822
Net Book Value
As at 30 June 201 9
As at 30 June 2020
1 10,185
296,969 25,272 362,492 684,733
42,723 1 7,827 1 70,735
-39-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 2 : OTHER NON CURRENT ASSETS
30 June 2020
30 JUlie 2019
$
$
Non-Current
Bond on tenements
3,642
3,642
NOTE 13: TRADE AND OTHERPAYABLES
30 June 2020
30 JUlie 2019
$
$
(i)
Current
Trade and other creditors
Shares to be issued
Deed of termination (ii)
Accruals
Accruals
Accrual
-accrued
-outstanding salaries
interest
on loans from shareholders
1 ,808,764
205,000
750,000
3 18,020
1 25,376
30,139
1 ,483,249
5 18,027
3,237,299
43,484
2,044,760
(i) Trade payables
payables
are non-interest
bearing
and are normally
settled
on 30-60 day terms. As at 30 June 2020, the amount of trade
was $ 1,523,632
and the amount exceeding
normal trading
terms totalling
$595,01 8 .
(ii) This relates
to the
termination
of the Royalty
Agreement
with Stock Assist
Group Pty Ltd
NOTE 14: PROVISIONS
Current
Provision
for annual leave
NOTE 1 5 : BORROWINGS
(i)
(ii)
contract
Current
Loans from shareholders
Hire purchase
Loan from Radium Capital
Loans from Iqumulate and Hunter Premium Funding
Lease liability
(R&D) (iii)
-Current
(iv)
(Insurance)
Non-Current
Lease liability
-Non-Current
(iv)
30 JUlie 2020
30 JUlie 2019
$
$
79,588
79,588
86,573
86,573
3 0 June 2020
30 JUlie 2019
$
$
751,048
1,058,252
62, 8 8 1
54,894
1 ,927,075
8 1 ,070
732,005
40,503
772,508
(i) As at 3 0 June 2020, short term loans of$751,048 (20 1 9: $732,005)
represents
payable
by the Company to two of its
The short-t
enl1loans are secured
shareholders.
other than each R&D Refund, the proceeds
Refund, and accrue interest
2020.
2020 and 20 October
against
the Compan
y's assets
amounts
under Personal
of each R&D Refund and the Grantor's
Property
Securities
Rights to apply for or obtain
Register
(PPSR)
each R&D
on the 3 October
of 3% per month from May 2020, previously 10%
per month. The loans are payable
(ii) The hire purchase
contract
is secured
by a motor vehicle,
and was
repaid during
the year.
(iii) On 2 1 April 2020, the Company signed facility of $ 1 ,031,000 agreement
with Radium Capital. The total outstanding
June 2020 is $ 1,058,252.
refund fro m the A TO on or before 30 September
The facility will mature on 30 November
2020 and carries
2020. This facility was advanced
of 1 5% p.a.
an interest rate
against
the expected
as of 30
R&D
(iv) Refer to note
17 for further details on adoption
of AASB 16 Leases.
-40-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
-
NOll-cash movemelllS
-
Cash outflow
Illterest TrallSactiollS
Issued Optiolls issued
Shares
Credit
Others
$
$
cost
$
$
$
provided
$
$
$
1
Ciosillg
baiallce
NOTE 15: BORROWINGS (continued)
Movement of borrowings
30 June 2020 r
Opellillg
baiallce
Cashilljlow
$
$
1,262,500 (1,680,706)
914,136 (i) 540,826 (629,987)
(383,226)
(4,500) 751,048
Loans from shareholders
732,005
Hire purchase contract
40,503
Loan from Radium Capital (R&D)
Loans from Iqumulate
and Hunter
Premium Funding
Lease liability
Total borrowings I
(Insurance)
"
"
-
-
(41,441)
938
"
1,010,380
"
27,252
20,620
"
"
(41,920)
-
(59972)
8 534
-
-
-
-
-
"
"
"
"
-
772,508
2 272,880 (1,824,039
)
950,860 561446 (629987) (383,226)
"
"
104,801
-
"
"
"
1,058,252
62,881
1 87 402
292203 (4 500) 2 008,145
1 35964
"
(i) Excludes accrued interest
on loans from shareholders
of$1 25,376 (Note 13)
"4 1 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
NOTE 16: ISSUED CAPITAL
at 0.1 cents
2 0 1 9)
year
(refer
exercise
of the reporting
to Note 26)
advance
from last year
at 0.1 cents (July 201 9)
at 0.1 cents (August
2019)
2 0 1 9)
at 0.1 cents (September
201 9)
at 0.1 5 cents (September
2 0 1 9)
at 0.2 cents (October
Ordinary shares
At the beginning
Share based payments
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Options
Shares issued
Shares issued
Shares issued
Shares issued
Options
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Value of options exercised
Share base
entry for difference between
the value of the creditors paid
Less: expenses
raising
At the end of the reporting
at 0.2 cents (October
at 0.25 cents (October
2 0 1 9)
at 0.2 cents (November 201 9)
at 0.25 cents (November
2 0 1 9)
at 0.2 cents (December
at 0.25 cents (December
201 9)
at 0.2 cents (February
2020)
at 0.1 cents (May 2020)
at 0.1 cents (June 2020)
at 0.2 cents (December
exercise
year
201 9)
201 9)
related to capital
market value of shares and
year
Ordinary shares
of the reporting
At the beginning
Share based payments (refer to Note 26)
issued
Share Capital
issued
Share Capital
issued
Share Capital
issued
Share Capital
Application
Share base
value of the creditors paid
Less: expenses
At the end of
Funds received
entry for difference
related to
the reporting
capital
year
at 0.4 cents (July 201 8)
at 0.45 Cents (August / Sep
at 0.25 cents (December
at 0.125 cents (February
in advance
tember /
201 8 / February
20 19)
November
2 0 1 8)
2 0 1 9)
between
market value
of shares and the
raisings
30 June 2020
$
24,482,958
7,099,291
Number 0/ Shares
3,005,71
9,906
2,826,972,5
2 1
373,660,000
100,340,000
269,000,000
200,000,000
200,000,000
35,000,000
1 5,000,000
195,000,000
25,000,000
1 00,340
269,000
200,000
300,000
70,000
30,000
487,500
50,000
6 12,500
2 10,000
202,500
200,000
300,000
786,000
640,000
1 57,846
245,000,000
1 05,000,000
1 0 I ,250,000
80,000,000
1 50,000,000
786,000,000
640,000,000
80,000
(41 1,897)
35,866,038
9,352,942,427
30 June 2019
$
Number o/Shares
20,262,695
1 ,874,239,444
1 ,629,903
6 1 ,200
2,150,000
1 10,000
1 00,000
299,849
492,752,685
36950000
477,777,777
44,000,000
80,000,000
7,31 1
(13 8,000)
24,482,958
3,005,71
9,906
Ordinary
proportion to
the holder
the num ber of
entitle
shares
and amounts
paid on the shares held
to participate
in dividends
on winding
and the proceeds
up of the Company in
of ordinary
On a show of hands every
and upon a poll each share is entitled to
holder
one vote.
shares
present
at a meeting
in person or by proxy, is entitled
to one vote,
Ordinary shares
have no par value and the Company does not have
a limited amount of authorised capital.
-42-
Date Issued Note
$
Number ojOptiolls
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 6(a): RESERVE
with an exercise
price of O. 7 cents 24112/201 8
with an exercise
price of 0 . 2 cents 28/021201 9
with an exercise
price of 0.2 cents
with an exercise
price of 0.2 cents
2021 )
issued
5 November
issued
1 March 2022)
issued
Options
As at 1 July 2018
Options
(expiry
Options
(expiry
Options
(expiry 3 June 2022)
issued
Options
(expiry 1 March 2022)
As at 30 June 2019
Options
(expiry:
Options
(expiry:
Options
(expiry:
Exercise
issued
1 March 2022)
issued
1 March 2022)
issued
1 March 2022)
of options
with an exercise
price of 0.2 cents
1 51071201 9
(i)
with an exercise
price of 0.2 cents
05108/201 9
(ii)
with an exercise
price of 0.2 cents
27/09/201 9
(iii)
5 November
with an exercise
2021)
price of 0.2 cents
221 11/201 9
(iv)
1 51 1 01201 9
0811 1/201 9
price of 0.2 cents
(v)
1 21 12/201 9
271121201 9
with an exercise
price of 0.2 cents
24/0312020
(v)
with an exercise
price of 0.2 cents
18/06/2020
(v)
with an exercise
at 0.2 cents
with an exercise
at 0.2 cents
issued
Free attaching options
price of 0.7 cents (expiry:
Options
(expiry:
Exercise
Options
(expiry:
Options
(expiry:
Options
(expiry:
Free attaching options
option
with an exercise
1 March 2022)
At the end of
issued
1 March 2022)
of options
issued
1 March 2022)
issued
1 March 2022)
issued
1 March 2022)
reporting
year
2,000 20,000,000
4,000 40,000,000
16,655
1 42,268
1 64,923 60,000,000
145,490,352
9,475 15,000,000
80,000,000
( 1 1 ,475) (3 5,000,000)
79,333,334
597,21 4
1 60,000,000
( 1 43,871 )
1 48,859
( 105,000,000)
50,000,000
45,686
50,000,000
1 94,565
1 00,000,000
issued @$O.OOOI per
1 8/06/2020
4 1 ,800
458,000,000
price of 0.2 cents (expiry:
1 ,047,1 76
1 ,057,823,686
(i) Relates
to options
the opening
issued
balance
for repayment
of debt approved
as at I July 201 9. Refer to note 1 6(a) in the
within
30 June 201 9 annual report.
by shareholders
on 27 June 201 9 of which the value is reflected
(ii) Relates
to options issued
were subject
activities
to further negotiation
pursuant
and were accrued
for financing
to a mandate
dated 4 of March 201 9 . As at 30 June 201 9 the terms
for as a liability.
Refer to note 1 6(a) in the 30 June 201 9
options
of the
annual report.
(iii) Financier
options
approved
at 1 July 201 9 . Refer to note
by shareholder
1 6(a) in the 30 June 201 9 annual report.
s on 27 June 201 9 of which the value is reflected within
as
the opening balance
(iv) Relates
to 1 60,000,000
options
by shareholders
201 9. Subseque
approved
as at 30 June
options
the difference between
were re-valued
issued
to financiers
to mandates
pursuant
were subject
into during 30 June
entered
negotiations
to further
on 27 June 201 9 however
and were accrued for
2019. These were
as a liability
the
ntly, shareholder
approval
was obtained
option-pricing
on 22 November
in the
201 9 and were accordingly
table below.
$597,214 represents
the inputs
using the Black-Scholes
the fair value of$613,369 and the
model with
recorded
balances
as at 30 June 2019.
(v) Establi
shment options issued
to Whead Pty Ltd as part of a financing
facility
and were valued using the Black-Scholes
option-pricing
in the
model with the inputs
table below.
-43-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
NOTE 16(a): RESERVE
(continued)
The valuation
of the options
was based on the following key inputs:
Financing
22/ 1 1 /2019
options Establishment
options Establishment
options
share price
Input
Number of options 1 60,000,000 50,000,000 50,000,000
Grant date
Exercise
Expected
Risk-free interest
Dividend
Fair value
$0.004
$0.002
253%
0.9%
Nil
$0003
$0.002
254%
0.9%
Nil
$0001
$0.002
271%
0.30%
price
ity
volatil
$613,369
$ 1 48,859
$45,686
27/12/2019
yield
rate
24/03/2020
Nil
$0.002
$0.002
339%
0.26%
Nil
$ 1 94,565
options
Establishment
1 8/06/2020
1 00,000,000
There has been no alteration
of the terms and
conditions
of the above share-based
payment arrangement
since grant date.
The following
d h
uring t e year:
table illustrates
the number and
weighted
average
exercise
prices
of and movements
in share options
issued
30 June 2020
30 June 2019
Number Weighted
Number Weighted
average
price
exercise
(cents)
average
price
exercise
(cents)
-
-
at the beginning
of year
Outstanding
Granted during
the year
Forfeited during the year
the year
Exercised during
Expired during the year
Outstandin
Exercisable
year
g at the end of
at the end of year
60,000,000 0.37
1 , l 37,823,686 0.23
60,000,000 0.37
-
-
( 1 40,000,000) 0.20
-
-
-
-
-
-
-
-
1 ,057,823,686 0.24
1,057,823,686 0.24
60,000,000 0.37
60,000,000 0.37
The weighted
l .65 years (201 9 : 2.57 years).
average
remaining
contractual
life for the share-based
payment options
outstanding
as at 30 June 2020 was
The weighted
average
fair value of options
granted
during the year was 0.09 cents (2019: 0.01 cents)
The following
share options
were exercised
during the year
ended 30 June 2020.
30 June 2020
Options Exercise
exercised
date Expiry Date Share price
at exercise
date
(cents)
1 51 1 0/201 9 0 1 /0312022 0.20
35,000,000
l O5,000,000 03112/201 9 0 1 /0312022 0.20
No options
were exercised
during the year ended 30 June 2019.
-44-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
NOTE 1 6(a): RESERVE (continued)
Performance
During the year the following performance
rights
rights
were issued:
Class of
Performance
Rights
Performance Conditions
Expiry
Class A
1 50,000,000
performance
issued
rights
50,000,000 performance
closing price of ordinary
50,000,000 performance
price of ordinary
50,000,000 performance
c losing price of ordinary
will vest if a VWAP equal to
at the date of
rights
shares
rights will
grant is achieved;
vest if a VWAP equal to 1 00% above the closing
33.33% above the 3 11 1 2/20
shares at the date of grant is achieved;
rights
shares
will vest if a VWAP equal to
at the date of grant is achieved.
1 66.66% above the
Class B
405,000,000
performance
rights
issued
rights
performance
Tranche 1 -1 35,000,000
conditions
are satisfied:
A VWAP equal to 33.33% above the closing
grant is achieved;
Announcement
gold, at a minimum grade of
of a JORC Code inferred mineral
at least I g/t in respect
and
price of ordinary
shares
at the
date of
resources
oz of
of at least 250,000
of a Company project;
wil l vest if both of the following 3 1 / 1 2/20
rights
are satisfied:
performance
Tranche 2 -1 35,000,000
conditions
A VW AP equal to
grant is achieved;
Announcement
gold, at a minimum grade of at least I g/t in respect
1 00% above the closing
and
of a JORC Code
inferred mineral
will vest if both of the following
price of ordinary
shares
at the
date of
resources
of at least 300,000
oz of
of a Company project;
Tranche 3 -1 35,000,000
conditions
are satisfied:
A VWAP equal to 1 66.66% above the
grant is achieved;
Announcement
gold, at a minimum grade of at least
and
performance rights will
vest if both of the following
closing
price of ordinary
shares
at the date of
of a JORC Code inferred mineral resources
of at least 350,000
oz of
I g/t in respect of
a Company project.
-45 -
CLASSIC MINERALS LIMITED
NOTES TO THE F I NANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 6(a): RESERVE (continued)
Class C
performance rights will
vest if both of the following 3 11 1 2/20
1 50,000,000
performance r ights
issued
are satisfied:
Tranche 1 -50,000,000
conditions
A VWAP equal
grant is achieved; and
Announcement
gold, at a minimum
grade of
to 33.33% above the closing
price of ordinary
shares at
the date of
of a lORC Code inferred mineral
resources
oz of
of at least 250,000
at least I glt in respect
of a Company project;
satisfied:
performance rights
Tranche 2 -50,000,000
conditions are
A VWAP equal
grant is achieved;
and
Announcement
gold, at a minimum grade of at least I glt in respect
to 1 00% above the closing
of a lORC Code inferred
mineral
price of ordinary
shares at
the date of
resources
oz of
of at least 300,000
of a Company project;
will vest if both of the following
Tranche 3 -50,000,000
conditions are
satisfied:
A VWAP equal to 1 66.66% above the
grant is achieved;
Announcement
gold, at
a minimum grade of
and
performance rights will
vest if both of the following
closing
price of ordinary
shares at
the date of
of a lORC Code inferred mineral resources of
oz of
at least 350,000
at least I glt in respect
of a Company project.
The valuation of
the performance
rights
was based on the Hoadleys Hybrid
ESO Model with
the following
key inputs:
Class A Performance
Rights Class B Performance
Rights Class C Performance Rights
Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche
I
2
3
I
2
3
I
2
3
Expected 300% 300% 300% 300% 300% 300% 300% 300% 300%
volatility
Risk-free 1 %
rate
1 %
1 %
1 %
1 %
1 % 0.98% 0.98% 0.98%
Grant 06/11 / 1 9 06111 1 1 9 06111 1 1 9 06/11 1 1 9 06/11119 06111 1 1 9 24/12119 24112/19 24112119
date
Grant $0.003 $0.003 $0.003 $0003 $0.003 $0003 $0.0025 $0.0025 $0.0025
date
share
price
Share $0004 $0.006 $.008 $0004 $0.006 $.008 $0.0033 $0.005 $00067
price
target
Exercise 1 .9
multiple
1 .9
1 .9
1 . 9 1 .9
1 .9
2.8 2.8 2.8
Dividend Nil Nil Nil
yield
Nil Nil Nil Nil Nil Nil
Total $ 145,000 $ 1 40,000 $ 140,000 $391,500 $378,000 $378,000 $ 140,000 $ 130,000 $ 125,000
Fair
Value
The total share-based
$ 1,967,500.
payment expense relating to performance
rights based on vesting
conditions
to 30106/2020 is
-46-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 6(a): RESERVE (continued)
This reserve
is used to recognise
the value
of options
and performance
rights
issued
as share-based payments.
Reconciliation
of reserve:
Options
Performance Rights
Share based payment reserve
30 JlIlle 2020 30 JlIlle 2019
$
$
1 ,047,176
1,967,500 -
3,014,676 164,923
1 64,923
Note 30 JlIlle 2020 30 JlIlle 2019
$
$
Share based payment for difference
issued
and the value o f creditors
Performance
Options granted during the year
Total Share
paid
during the year
based payment expense
granted
rights
between
market value of shares 1 6
1 6(a)
1 6(a)
2,408,531
1 ,967,500
1 0,761
-
5 1 1 ,940
69,842
4,887,971 80,603
-47-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 7 : EFFECTS OF
ADOPTION OF AASB 16 LEASES
explains
the impact of the adoption
policies that have been applied
This note
the new accounting
from 1 July 2 0 1 9, but has not restated
provisions
transitional
therefore
in the standard.
recognised
in the opening balance
The reclassifica
sheet on I July
of AASB 16 Leases
from 1 July 20
for the 30
comparatives
2019.
on the Company's financial
statements and
discloses
19. The Compa
ny has adopted AASB 16 retrospectively
June 2019 reporting
tions and the adjustments arising
from the new leasing
under the specific
rules are
period, as
permitted
On adoption
classified
payments,
using the interest
used. The
The associated
prepaid
or accrued
no onerous
application.
weighted average
right-of
of AASB 1 6, the Company recognised
as operating leases
discounted using the lessees' incremental borrowing rate
under AASB 1 17. These liabilities
at the present
as at I July 2019. The lease payments are discounted
lease liabilities
were measured
to leases which
had previously
been
lease
value of the remaining
in relation
rate implicit
in the lease.
If that rate cannot
be determined,
the lessee's
incremental borrowing
rate is
lessee's incremental borrowing
rate applied
to the lease liabilities
on 1 July 20
1 9 was 6.5%.
-use asset was measured at an amount equal to the lease liabili
ty, adj usted by the amount of any
sheet as at 30 June 2019. There were
lease payments
relating
to that lease recognised
an adjustment
in the balance
lease contracts
that would have required
to the right-of
-use assets at the date of initial
For leases
liability
immediately
before that date.
that were classified
as finance leases
under AASB 1 17, the carrying
amount of the right of use asset and lease
at 1 July 201 9 are determined
at the carrying
amount of the lease asset and lease
liability
under AASB 1 17
The following
report
financial
table provides a
reconcilia
to the expected
total lease liability
t o b e recognised
lease commitments
a t I July 2019:
tion of the operating
as disclosed
in the 30 June 201 9
Rental lease commitments
as at 30 June 2019
Discounted
using the incremental
rate
borrowing
Add: Costs of
reasonably
certain extension
options
Lease liabilities
recognised
at 1 July 2019
Split between:
Current
lease liabilities
Non-current
ties
lease liabili
$
23,693
23,375
1 62,039
1 85,414
$
49,449
135,965
1 85,4 1 4
The recognised
right-of
-use assets
were as follows:
Right of Use Assets
Properties
30 Jun 2020
1 July 2019
1 29,791
1 85,4 1 4
-48 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1 7: EFFECTS OF ADOPTION OF AASB 1 6 LEASES (continued)
The change in accounting
• Lease liabilities
assets -
• Right-of-use
policy
-increase
by $ 1 85,4 1 4
increase
by $ 1 8 5,41 4
affected the following
items in
the balance
sheet on 1 July 201 9:
Practical expedients
applied
In applying
standard:
AASB 1 6 for the first time,
the Company has used the following
practical
expedients
by the
permitted
the right
of use asset
on transition
lease payments);
To measure
or accrued
To use hindsight in determining
lease;
The exclusion
the lease
of initial
direct
at an amount equal to the lease
liability
(as adjusted for prepaid
to extend or terminate
term where lease contracts include options
the
costs for the measurement
of the right-of
-use asset at the
date of initial application.
The Company's leasing
activities and
how these are accounted
for
The Company leases commercial property as
properties
the lessor)
were classified
were charged
as operating leases. Payments made under operating
to profit
lease.
-line basis over the
year, leases
(net of any incentives
of commercial
from
received
their head office. Until the 2019 financial
or loss on a straight
period
leases
of the
are recognised
as a right-of
-use asset and a corresponding
liabili
ty at the date at which
From I July 201 9, leases
asset is available
lease transfers
amortised
of the asset's
ownership
over the asset's
for use by the Company. Each lease payment is allocated
between
the liability and finance cost.
of the underlying
asset to the lessee
lIsefullife on a straight-line
basis.
by the end of the lease term,
the right-of
-use asset is amortised
the right-of
over the shorter
useful life and the lease term on a straight-line
Otherwise,
basis.
the leased
If the
-use asset is
NOTE 18: EXPENDITURE
COMMITMENTS
30 June 2020
30 JUlie 2019
S
$
(a) Exploration
Expenditure
Commitments
Payable
Not later than
More than I year but not later than 5 years
I year
Greater
than 5 years
(b) Capital
Expenditure Commitments
609,095
390,324
6,1 69,847
232,498
1 , 3 5 1 ,178
8,1 30, 1 1 9
622,822
On 20th July
future on site processing
million.
2020, the Company announced that it has secured a Gekko
gold gravity
processing
plant to be used for
of gold ore at its Kat Gap
Gold Project. The agreed value of the contract
is approximately
$3.9
-49-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
NOTE 19:
CONTINGENT LIABILITIES
AND CONTINGENT ASSETS
into an Earn in and Joint Venture Agreement
over the Company's Fraser
Range tenements, with
Joint Venture Agreement
Earn in and
The Company entered
Independence
terms of a mandate
Ltd earn-in and joint venture
incurred
but excluding
Newsearch Pty Ltd, a 1 00% owned subsidi
with Argonaut,
1 .5% of any exploration
ary o f independence
expenditure
as defined in the Independence
the Company as and when that exploration
Group NL on 1 7th June 201 9. Under the
Newsearch
Pty
expenditure
is
agreement,
will be payable by
exploration
expenditure
the first $640,000
associated with the first earn-in
period.
can elect to earn a 5 1 % interest in
the project by expending
A$1 ,500,000
on exploration
over two
Key commercial terms
are:
of the Agreement
of A$300,000;
to Classic
earn in period);
cash payment
Initial
Independence
years (first
Minimum expenditure of
A$640,000
At the end of the first earn in period,
o form a joint venture
o increase
an option to
o be granted
elects
If Independence
or
feasibility study;
elects
Ifindependence
cash and
to buy-out
expenditure,
its interest
tenement
must be incurred
having made a further cash payment
prior to Independence
withdrawing;
of A$500,000,
Independence
can elect to:
(49% Classic / 5 1
to 70% by a
further A$1 ,000,000
% Independence)
buyout Classics
to earn a 70% interest in
49% interest
the project, Classic will
be free carried
to the
of a pre
completion
of expenditure
for A$2,250,000
over two years
and a 1 % net
smelter royalty.
Classic,
plus will retain
then Classic would
a 1 % net smelter
royalty
have received
from this
transaction.
aggregate
00, in
value of A$4,550,0
Royalties
The company
on 7 November
purchased
Fraser
Range tenements
and m ineral interest
(E28/281 1 and E28/2 8 1 2) from X Minerals
Pty Ltd
201 9. X Minerals
Pty Ltd will retain
a 2% Net Smelter Return royalty
until future dealing.
The sale of the Doherty's project was concluded
from production.
receive
on 5 July 201 7. Classic will
a 7.5% Net Smelter
Retum royalty
Standby Subscription facility agreement
On 19 September 20
with Stock Assist
Facility
this Facility.
September
the Investor
There were no drawings
2022.
17, the Company by mutual agreement
amended the terms of its Standby
Group Pty Ltd. The Facility
arrangement has been increased
from $ 1,000,000
Subscription
Under the
to $5,000,000.
Agreement
agrees to subscribe
for shares if requested
by the Company subject to the terms and conditions
under this facility for the year ended 30
June 2020.
This facility
will end
of
on 1 9
NOTE 20: SEGMENT REPORTING
The Company operates
Company is organised
the Company' s activities
Decision
Maker) as a s ingle segment.
Company's as one segment. The
Company's as a whole.
predominantly in the mineral exploration industry
in Australia.
the exploration
into one main
is reported
decisions
operating segment
are interrelated
and discrete
Accordingly,
which involves
information
operating
in Australia
For management
of minerals
to the Board (Chief
are based upon analysis
of the
of the
to the fmancial statements
purposes, the
All of
Operating
financial
all significant
from this segment
are equivalent
financial
results
-50-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 J U N E 2020
NOTE 2 1 : STATEMENT OF CASH FLOWS
of the net loss after income tax to net cash flows
a. Reconciliation
from operating
activities
Net profit/(Ioss) for the year
Items
Non-cash
and amortisa
tion expense
I
expense
Depreciation
Share based payments
Share based payments
Provision
Settlement
vehicle
Miscella
Loss on asset disposal
Shares yet to be issued
neous assets
written
off
for expected credit losses
of a bonus payable to KMP via the disposal
of a motor
Changes in assets
and liabilities
)/decrease
(Increase)/decrease
in trade and other receivables
(Increase
in other assets
Increase/(decrease)
in trade creditors
Increase/( decrease)
in provisions
Cash outflows from operations
and other payables
I
30 June 2020-'
30 JUlie 2019
$
S
( 15,669,1 86)
(5,433,896)
148,544
9,949,044
56,375
1,629,903
206,546
8,060
25,000
2,3 3 1
205,000
85,000
1,29 1
46,562
46,500
(36,233)
77,257
1 1
1,225,6
(6,985)
979,894
(22,636)
532,746
(10,299)
( 4,071,557)
( 1, 882,01 4)
were:
share-based
non-cash
I During the year,
(2019: $ 1,327,771 ) related to operating
activities
Investing:
Purchase
Financing:
of plant and equipment
of $20,000
(201 9: nil)
payments amounted
activities.
to $9,949,044
Other share-based payments
(201 9: $ 1,629,903).
Of these,
$9,579,044
financing
in relation to
and investing
Settlement
of loans payable
of $350,000 (201 9 : $302,1 32)
b. Reconciliation
of cash and equivalents
Cash and equivalents
-cash at bank and in hand
comprise
30 June 2020
30 JUlie 2019
$
S
488,608
1 35,1 23
bank and in hand
Cash at
earns interest
Short term deposits are made for varying
requirements of the Company and earn
at floating
rates based on daily bank deposit
rates.
years of between
one day and three months depending on the
immediate cash
interest
at the respective
short-term
deposit
rates.
-5 1 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22: KEY MANAGEMENT PERSONNEL DISCLOSURES
Compensation
of key management
personnel
by category
employee
Short-term
Post employment benefits
Share-based
payment
benefits
30 June 2020
30Jllne2019
$
$
823,405
736,1 00
820,000
1,643,405
1 9,1 0 1
63, 500
8 1 8,701
report
Refer to the Remuneration
member of the Company's Key Management Personnel,
contained
shares
and option holdings.
in the Director's Report for details of the remuneration
paid to each
NOTE 23: RELATED PARTY TRANSACTIONS
Transactions
with Directors,
Director
Related Entities
and other Related Entities
are:
2020
The Board
Company held on 24 December
Performance Rights Plan, which was approved
to Note
adopted a
2019 (refer
1 6(a».
by shareholders,
at the General
Meeting
of the
Mr. Goodwin is entitled
the establishmen
to up to $540,000
+ GST for the work between
5 July 201 9 and 3 1 December
t of the resources,
a formal contract
is in place stipula
ting the roles and responsibilities
2020 related to
of a CEO.
2019
During the year ended 3 0 June 201 9, the company signed a formal contract
with the Chairman,
fees.
2019 as retainer
effective
to $ 100,000
from 1 st January
per annum
payable
Mr John Lester
amounting
During the
vehicle
year, the Company paid a bonus
in lieu of cash payment.
Mr. Goodwin is entitled
to Mr Dean Goodwin amounting to
+ GST fees for days
to $ 1,200
$85,000
worked.
through
the transfer
of a motor
-52-
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 24: FINANCIAL
RISK lVlANAGEMENT AND POLICIES
The Company's activities
risk. The Company's overall
to minimise
adverse
financial instruments;
exposed.
potential
expose it to a variety
risk management
effects on the financial performance
of financial
program
of the Company.
however the Company uses different methods to measure
ility
focuses on the unpredictab
The Company does not use derivative
different types
risk and liquidity
and seeks
markets
rate risk),
credit
of the financial
market risk (interest
of risk to which it is
risks:
Risk management
required.
commensurate
The carrying
The Board
provides
with the evolution
Board of Directors
principles
written
and growth of the Company.
for overall
value ofthe Company's financial
instruments
are as follows:
is carried
out by the
with assistance
from suitably
external
when
advisors
risk management
policies
will evolve
qualified
and further
assets
Financial
Cash and cash equivalents
Trade and other receivables
Financial
ties
liabili
Trade and other
payables
Borrowings
30 June 2020
30 JUlie 2019
$
$
488,608
99,945
588,553
1 35,123
577,324
7 12,447
3,237,299
2,008,145
5,245,444
2,044,760
772,508
2,8 1 7,268
The Company's principal
borrowings
financial
liabili
instruments
ty for a motor vehicle
cash and trade and other receivables. The Company has
other payables in the normal course
and trade and
and a hire purchase
comprise
of business.
The main purpose of
these financial
instruments
is to fund the Company' s operations.
It is, and has been throughout
be undertaken.
The Board reviews
The main risks
arising
and agrees policies
from the Company are cash flow (interest
for managing
each of these risks and they
the year under review,
the Company's policy that
in financial
no trading
rate risk, liquidity risk
are summarised below.
instruments
shall
risk).
and credit
(a) Market risk
risk
exchange
(i) Foreign
to foreign exchange
The Company's exposure
risk arising
from currency
exposures
is limited.
(ii) Cash flow and interest rate
The Company' s only interest
held with variable
to be material
interest
and has therefore not undertaken
risk
rate risk arises from
cash and cash equivalents
rates expose the Company to cash flow interest
held. Term deposits
rate risk. The Company does
this
not consider
and current accounts
any further analysis of risk exposure.
-53 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEM ENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 24: FINANCIAL
RISK MANAGEMENT AND POLICIES
(continued)
(b) Credit
risk
risk is
Credit
outstanding
managed by the Board and arises
transactions.
receivables
and committed
from cash and cash equivalents
as well as credit
exposure
including
All cash balances
held at banks are held at internationally
recognised
institutions.
The maximum exposure
of fmancial
credit
quality
(if available)
ratings
to credit
assets
risk at reporting
that are neither
date is the carrying
past due nor impaired
rates.
default
or to historical
information about
amount of the trade and other receivables.
can be assessed
The
by reference to external
credit
Financial
assets
that are neither
past due
and not impaired
are as follows:-
equivalents
Cash and cash
AA S&P rating
Trade and Other receivables
Unsecured
(c) Liquidity
risk
3 0 June 2020
30 JUlie 2019
S
$
488,608
135,1 23
99,945
466,178
Prudent liqui
dity risk management
implies
maintaining
sufficient
cash balances
and access
to equity funding.
The Company does not have significant interest-bearing
assets
to the risk of changes
in market interest rates relate primarily
interest
and floating
to changes
and is not materially exposed
to cash assets
in market
The Company' s exposure
rates.
interest
rates.
The directors
of financial assets
the cash-burn
and liabilities
rate of the Company on
liquidi
to manage its
monitor
ty risk.
against
an on-going basis
budget and the maturity
profiles
The financial
business,
the Company had at reporting
liabilities
ty and borrowings.
liabili
a hire purchase
date were trade payables
incurred
in the normal course
of the
The following table sets out the carrying
amount,
by maturity,
of the financial assets
and liabilities:
Year ended 30 June 2020
12 RELIANT RESOURCES PTY LTD
13 ROTHERWOOD ENTERPRISES PTY LTD
14 BNP PARIBAS NOMS
1 5 MR JONATHAN WILLIAM DOUTCH
1 6 KLIP PTY LTD
1 7 KESAR P L
1 8 JUSTIN DOUTCH
1 9 NINGALOO INTERNATIONAL PTY LTD
20
STOCK ASSIST GROUP PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
LIMITED
HSBC CUSTODY NOMINEES
TROCA ENTERPRISES PTY LTD 361,208,349 2.77
NEWS MINERALS PTY LTD
306,856, 122 2.35
RHlANNON HANEY
2 1 5, 8 1 6, 122 1 .65
CITICORP NOMINEES PTY LIMITED
1 67,787,852 1 .29
MR MICHAEL LYNCH
145,000,000 l . l1
MR DOMINIC VIRGARA
1 32,326,528 1 . 0 1
1 20,306,1 22
0.92
1 16,306,1 22
0.89
1 16,298,366 0.89
1 10,04 1 ,7 1 8 0.84
92,973,288 0.71
90,864,71 8 0.70
89, 2 12,498 0.68
85,000,000 0.65
84,000,000 0.64
80, 6 1 2,246 0.62
80, 59 1 ,025 0.62
PTY LTD
AlC>
Top 20 holders
GURINDJI PTY LTD