More annual reports from Canterbury Resources:
2023 ReportCANTERBURY RESOURCES LIMITED
ABN 59 152 189 369
ANNUAL REPORT 2021
1
Corporate Directory
Table of Contents
ASX Code: CBY
Chairman's Report
Review of Operations
Corporate Governance
Directors Report
Auditor's Independence Declaration
Consolidated Financial Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Shareholder Information
1
2
7
11
22
23
27
63
64
68
Board of Directors
John Anderson
Non-Executive Chairman
Grant Craighead Managing Director
Michael Erceg
Executive Director
Ross Moller
Non-Executive Director
Robyn Watts
Non-Executive Director
Company Secretaries
Ross Moller
Veronique Morgan-Smith
Registered Office
Suite 301, 55 Miller Street,
Pyrmont, NSW 2009
Telephone:
+61 2 9392 8020
Website:
canterburyresources.com.au
Email: admin@canterburyresources.com.au
Share Registrar
Automic Group
Level 5, 126 Phillip Street, Sydney NSW 2000
Telephone:
+61 2 8072 1400
Website:
automicgroup.com.au
Email:
hello@automicgroup.com.au
Auditors
BDJ
Level 8, 124 Walker Street, North Sydney, NSW 2060
PO Box 1664, North Sydney, NSW 2059
Broker
Canaccord Genuity (Australia) Limited
2
Chairman's Report
Dear Fellow Shareholders
On behalf of your Board of Directors, I am pleased
to present the tenth Annual Report to shareholders
of Canterbury Resources Limited.
During the financial year ending 30 June 2021 we
have made pleasing exploration and assessment
progress at our key projects. In addition, we have
enhanced our overall asset portfolio through
several material transactions. This progress has been
achieved against a backdrop of significant
restrictions and precautions relating to the COVID-
19 pandemic which has constrained our field
activities, particularly in PNG.
An important milestone was recorded in early 2021
with the granting of EL2658 (Wamum) in PNG. The
Wamum project provides considerable upside
potential for Canterbury’s shareholders, as it covers
two large deposits at Idzan Creek and Wamum
Creek, where we have already outlined Mineral
Resources containing 2.7Moz gold and 569kt
copper. Preliminary engineering studies have
commenced, to quantify inputs for assessment of
standalone development options. In parallel, we
are reviewing opportunities to further expand and
enhance the resource inventory via exploration.
Importantly, EL2658 adjoins the major Wafi-Golpu
copper-gold development project owned by
Newcrest and Harmony Gold, where the joint
venture partners are currently negotiating a Special
Mining Lease with the PNG Government, ahead of
a final investment decision. Development of the
significant
Wafi-Golpu project could create
strategic benefits for our Wamum project.
Elsewhere in PNG, field activity recently resumed at
the Bismarck project on Manus Island, with a focus
on assessing hydrothermal silica-alunite-rich areas,
or lithocap, in the south of the project area where
buried porphyry systems and potential late-stage
metal-rich ore zones are targeted. This assessment
Yours sincerely,
John Anderson
Chairman
activity will aid prioritization of targets to be tested
during the next phase of exploration drilling, which
is planned to commence in 2022.
In Queensland, we are accelerating our exploration
activities at the Briggs copper project following the
signing of a major agreement with African Energy
Resources Limited ASX:AFR. During an initial option
period African Energy Resources is funding a
~3,000m RC drilling program that will test extensive
undrilled porphyry copper mineralisation visible at
surface along strike from the existing resource.
Several higher-grade features will also be tested
during the program. Following this initial drilling
campaign, African Energy Resources will have
earned the right to enter an Earn-in and Joint
Venture agreement whereby it can earn up to 70%
of the Briggs project by sole-funding a further $15.25
million. As part of the overall transaction, African
Energy Resources has made a $1 million investment
in Canterbury.
During the past year we have also restructured our
project portfolio. Notable transactions include the
sale of our Vanuatu assets and an agreement to
acquire the Peenam copper-gold porphyry project
in Queensland. The overall impact is an increased
exposure to Australian copper-gold exploration
opportunities.
I would like to take this opportunity to thank my
fellow Directors and employees who have worked
diligently on the Company’s activities over the past
year, as well as our wide range of stakeholders
including landowners and joint venture partners.
On behalf of your Board, I extend my thanks to all
our shareholders for their ongoing support, and I
look forward to announcing further progress in the
coming year as we accelerate our exploration and
evaluation activities across each of our projects.
1
Annual Report 2021
Review of Operations
INTRODUCTION
Canterbury is an emerging resource company with a strategy of exploring potential large-scale copper-gold
deposits in proven mineral belts throughout the SW Pacific region. It holds a balanced portfolio of advanced
exploration projects in Papua New Guinea and eastern Australia, and has third party funding partnerships at
several projects.
The Company has achieved material exploration and evaluation progress across multiple projects since listing
on the ASX in 2019 (ASX: CBY). This includes the estimation of significant mineral resources at three deposits: the
Briggs copper deposit in Queensland, plus the Idzan Creek and Wamum Creek copper-gold deposits in PNG. In
aggregate these deposits contain around 1.2Mt copper and 3.2Moz gold, providing a strong foundation for
defining attractive development opportunities. During the past year, Canterbury has further optimised its asset
portfolio, adding a new Cu-Au project in Queensland and selling or rationalising several non-core projects.
Precautions and constraints relating to COVID-19 continue to impact the company’s ability to implement field
programs. Nevertheless, Canterbury is currently undertaking a high-impact drill program at Briggs and during
2021 completed several field programs in PNG.
QUEENSLAND
▲
Briggs, Mannersley & Fig Tree Hill Projects (CBY 100%, Rio Tinto 1.5% NSR)
The Briggs, Mannersley and Fig Tree Hill tenements (CBY 100%) are in central Queensland, around 50km inland
from the major industrial port of Gladstone, at the southern end of the northwest-southeast trending Mt Morgan
structural belt. Mt Morgan was a high-grade mining operation and produced around 8Moz of gold and 350,000t
of copper before its closure in 1989.
2
Annual Report 2021
Review of Operations
At the Briggs project, a resource of 142.8Mt
at 0.29% Cu (0.2% Cu cut-off) has been
delineated at the Central Porphyry and
multiple targets have been identified that
significantly
provide opportunities
resource.
expand and enhance
Preliminary metallurgical testwork has been
completed, which
indicates that high
copper recoveries are achievable across
all rock types via conventional processing
(crush-grind-flotation).
this
to
Immediate exploration plans are focussed
on testing extensive undrilled porphyry
copper mineralisation that is visible at
surface along strike from the Central
Porphyry deposit. A planned RC drilling
program
substantially
increasing the size of the Briggs resource. In
higher-grade mineralisation,
parallel,
sediments
identified
surrounding
the
Central Porphyry and in internal quartz rich
volcanic
intrusive core of
is aimed at
in
the
bodies, will be tested with the aim of delineating high-grade zones.
Exploration activity has accelerated following a deal with African Energy Resources (ASX: AFR), whereby AFR
made a $1m strategic investment in Canterbury to secure exclusive rights in the region.
During an initial Option phase, AFR is sole funding $0.75m of exploration to earn the right to commence a staged
Earn-In to form a Joint Venture. Exploration planned during the Option phase includes a ~3,000m reverse
circulation percussion drilling program. During the subsequent Earn-In phase, AFR has the right to earn up to a
70% joint venture interest in the Briggs Copper Project through staged exploration expenditure totalling up to
$15.25m.
▲
Peenam (CBY right to acquire 100%)
Canterbury has signed a binding Term Sheet for
the acquisition of Neillkins Pty Ltd which holds
application EPM 27756 covering the Peenam
Project, about 150km northwest of Brisbane.
The Project covers Triassic age andesitic volcanics
intruded by late Triassic dioritic plutons. Some of
intimately associated with
the
epithermal style Au-Ag-Hg and porphyry style Cu-
Au-Mo mineralisation.
intrusions are
Interpretation of the mineralisation encountered
at Peenam during limited historical exploration
suggests that it may represent the upper roof or
margins of a porphyry copper-gold system, and
the quartz enriched core of this style of porphyry
related system is likely to occur outside the current
limits of drilling.
3
Annual Report 2021
Review of Operations
PAPUA NEW GUINEA
▲
Wamum Project (CBY 100%)
Canterbury was granted EL2658 (Wamum) in
February 2021. Wamum adjoins the world-
class Wafi-Golpu Project (Mineral Resources
26Moz gold, 8.6Mt copper) and covers
related
multiple copper-gold porphyry
prospects. Utilising historical data,
the
large,
Company has delineated
coherent copper-gold deposits at Idzan
Creek and Wamum Creek with combined
Mineral Resources containing around 2.6Moz
569kt copper. Preliminary
gold and
metallurgical testwork indicates that good
copper and gold recoveries are achievable
at both deposits via conventional processing
(crush-grind-flotation).
two
Assessment of historical exploration data is
ongoing, with initial work identifying potential
opportunities to expand and enhance the
existing resources via further exploration
drilling. In parallel, preliminary engineering
studies are being
initiated, aimed at
the merits of developing a
assessing
standalone copper mine based on the
existing resources.
▲
Ekuti Range Project (CBY 100%)
The Ekuti Range Project is ~20km west of Harmony Gold’s Hidden Valley gold mine, ~50km south of
Newcrest/Harmony’s Wafi-Golpu development project and ~60km south of Canterbury’s Wamum Project.
Canterbury has been exploring the region since 2014 and has undertaken multiple programs. Two related styles
of mineralisation are evident within the tenements: narrow, high grade epithermal gold-copper lodes (e.g.
Waikanda & Otibanda) and large-scale porphyry copper-molybdenum-gold systems (e.g. Yalua, Ekoato &
Otibanda). Assessment of these targets is ongoing, in preparation for a resumption of field activities once COVID
related restrictions and precautions ease.
▲
Bismarck Project (CBY 40%, Rio Tinto 60%)
The Bismarck Project covers a large porphyry copper and gold province on Manus Island. Rio Tinto Exploration
(PNG) Limited is currently managing and sole-funding exploration under a Farm-In and Joint Venture
Agreement.
Manus Island has undergone extensive exploration over the past 50 years, although an economic deposit is yet
to be discovered. Recent efforts have focused on hydrothermal silica-alunite-rich areas, or lithocap, in the south
of the Bismarck Project area where buried porphyry systems and potential late-stage metal-rich ore zones are
targeted. Rio Tinto has completed geochronology and mineralogy analysis on samples from the northern portion
of the lithocap, and analysis will enhance the understanding of magmatic event (phases) timings, hydrothermal
alteration distribution, mineralogy and magmatic fertility. This will aid prioritization of targets to be tested during
the next phase of exploration drilling.
4
Annual Report 2021
Review of Operations
OUTLOOK
Canterbury is enhancing its portfolio of large-scale copper-gold projects, against a backdrop of COVID-19
constraints and precautions that continue to impact field activities, particularly in PNG. Nevertheless, meaningful
exploration and evaluation progress is being achieved across multiple projects.
In Queensland, the portfolio is being expanded and high-impact drilling is being undertaken at the Briggs
Copper Project, with potential to significantly increase and enhance the existing resources. Importantly, this
program is fully funded via an option agreement with African Energy Resources (ASX: AFR). Under the option
agreement, AFR has the right to enter an earn-in and joint venture for the Project that would lock in funding for
the project for the foreseeable future.
In PNG, high-level engineering studies have commenced at the Wamum Project and exploration opportunities
are being assessed aimed at enhancing and expanding existing resources. At the Bismarck Project, additional
data has been generated that is assisting in the selection and prioritization of drill targets, with the aim of
recommencing exploration drilling in 2022 funded by third parties under joint venture arrangements.
Declaration and JORC Compliance:
The technical information in this report which relates to Exploration Results is based on information compiled by
Mr Michael Erceg, MAIG RPGeo. Mr Erceg is an Executive Director of Canterbury Resources Limited and has
sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australian Code
of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Erceg consents to the inclusion in
this report of the matters based on that information in the form and context in which it appears.
The information in this report that relates to the Estimation of Mineral Resources, has been prepared by Mr Geoff
Reed, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Consulting Geologist of
Bluespoint Mining Services. Mr Reed has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves. Mr Reed consents to the inclusion in this report of the matters based on that information in the
form and context in which it appears.
Forward Looking Statements:
Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”,
“believe(s)”, “will”, “may”, “anticipate(s)”, “potential(s)”and similar expressions are intended to identify forward-
looking statements. These statements include, but are not limited to statements regarding future production,
resources or reserves and exploration results. All such statements are subject to certain risks and uncertainties,
many of which are difficult to predict and generally beyond the control of the Company, that could cause
actual results to differ materially from those expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the
interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic
evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or
recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays
in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity
price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely
basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of
development or construction activities, and (vi) other risks and uncertainties related to the Company’s
prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to
revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or
to reflect the occurrence of or non-occurrence of any events.
5
Annual Report 2021
Review of Operations
TENEMENT INFORMATION (as at 30 September 2021)
Tenement
Location
Project
Status
Interest
EPM 19198
EPM 18504
EPM 27317
EPM 27756
EL 2302
EL 2314
EL 2418
EL 2658
EL 2378
EL 2390
Queensland
Queensland
Queensland
Queensland
Morobe Province, PNG
Morobe Province, PNG
Morobe Province, PNG
Morobe Province, PNG Wamum
Manus Island, PNG
Manus Island, PNG
Briggs *
Mannersley *
Fig Tree Hill
Peenam **
Ekuti Range
Ekuti Range
Ekuti Range
Bismarck ***
Bismarck ***
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
100%
0%
100%
100%
100%
100%
40%
40%
*
**
***
Subject to a 1.5% NSR and a decision to mine payment in favour of Rio Tinto Exploration Pty Ltd
Binding Term Sheet signed for the acquisition of the controlling entity, subject to due diligence
Subject to a Joint Venture and Farm-In Agreement with Rio Tinto Exploration (PNG) Limited which is
currently sole-funding exploration to earn an 80% JV interest
MINERAL RESOURCE INFORMATION (as at 30 June 2021)
Deposit
Idzan Creek
Project
Wamum *
Wamum * Wamum Creek
Briggs **
Total
Central Zone
Category
Inferred
Inferred
Inferred
Cut-off
0.2g/t Au
0.2% Cu
0.2% Cu
Mt
137.3
141.5
142.8
Au (g/t)
0.53
0.18
-
Cu (%)
0.24
0.31
0.29
Au (Moz)
2.34
0.82
-
3.16
Cu (kt)
327
435
414
1,176
*
**
The Mineral Resource estimates for Idzan Creek and Wamum Creek were added during the year (refer
ASX release dated 26 November 2020).
The Mineral Resource estimate for Briggs is unchanged from the 2020 Annual Report.
6
Annual Report 2021
Corporate Governance
CORPORATE GOVERNANCE STATEMENT 2021
Canterbury is committed to implementing high standards of corporate governance. The Board of Directors is
responsible for corporate governance, and has the authority to determine, all matters relating to the strategic
direction, policies, practices, management goals and operations of Canterbury. It also monitors the business
and affairs of Canterbury on behalf of the Shareholders by whom they are elected and to whom they are
accountable. The responsibilities of the Board are set down in Canterbury’s Board Charter, which is available in
Canterbury’s Policies handbook along with all of
located at
www.canterburyresources.com.au/about-us/corporate-governance/.
its Charters and Policies, and
is
The Board has endorsed most of the ASX Corporate Governance Council Principles and Recommendations (4th
edition, issued in February 2019) (“ASX Recommendations”). The Corporate Governance Statement and the
extent
found at
www.canterburyresources.com.au/about-us/corporate-governance/.
to which Canterbury complies with
Recommendations can be
the
The ASX Recommendations are guidelines, not prescriptions. During the financial year 2020-2021, the Corporate
Governance Committee has examined Canterbury’s corporate governance practices and the progress
towards a review of its practice compared to the best practice principles proposed by the ASX Corporate
Governance Council as set out in the 4th edition.
Canterbury is mindful that, in light of its size and operations, there may be some rare instances where it has
considered that compliance is not practicable and that this is the most practical and cost-effective manner to
manage and direct Canterbury at that point in time.
Canterbury’s Corporate Governance Committee has reviewed the ASX Recommendations as existing at the
end of the financial year 2020-2021, and the Board, following the Corporate Governance Committee’s
recommendations, approved Canterbury's Corporate Governance Statement current at 30 June 2021. In rare
instances, Canterbury has determined not to meet the standards set out in the ASX Recommendations, largely
due to that ASX Recommendation being considered by the Board to be unduly onerous and costly for a
company of its size.
The Board’s reasoning for any departure from the ASX Recommendations, the extent of Canterbury's
compliance with the ASX Recommendations, and any alternative governance practices adopted in lieu of the
ASX Recommendations during the year are further detailed in paragraph 3 below. Except as set out here, the
Board does not anticipate that the Company will depart from the ASX Recommendations for the near future,
however, it may do so if it considers that such a departure is reasonable. Such table will be reviewed by
Canterbury's Governance Committee at the end of next financial year.
Board Committees
The Board has established five Committees to assist it in fulfilling its responsibilities, being:
• Audit Committee;
• Corporate Governance Committee;
• Nomination Committee;
•
•
Remuneration Committee; and
Risk Management Committee.
Each of these Committees has the responsibilities described in their Committee Charters (which have been
prepared having regard to the ASX Recommendations) that were adopted by the Board and can be found in
at
the
www.canterburyresources.com.au/about-us/corporate-governance/ under Corporate Governance. The
Board may also establish other committees from time-to-time to assist in the discharge of its responsibilities.
Canterbury's
"Canterbury
document
Resources
Policies"
website
on
7
Annual Report 2021
Corporate Governance
Canterbury Policies
Canterbury has also adopted the following policies, codes and charters, which are available on Canterbury's
website at www.canterburyresources.com.au:
Company Code of Conduct
The Company's Code of Conduct sets out Canterbury’s responsibilities to shareholders, the financial community,
customers, suppliers, the general community and individuals, and guides Canterbury's compliance with legal
and other obligations.
Codes regarding company standards in terms of behaviour
This document, which includes the parts entitled "Our People", "Governments and Communities", "Third Party
Relationship" and "Bullying and Harassment" sets out the various principles which Canterbury expect its personnel
to comply with while being a part of Canterbury or representing Canterbury. It can be found in the document
"Canterbury Resources Policies" on Canterbury's website at www.canterburyresources.com.au/about-
us/corporate-governance/ under Corporate Governance.
Securities Trading Policy
The Securities Trading Policy restricts the Directors, executives, employees and some contractors from dealing
with Canterbury’s shares at times when the market may not be fully informed as to Canterbury's activities. When
they are in possession of unpublished price-sensitive information, Directors, executives, employees and some
contractors may not trade in Canterbury’s securities. In addition, they cannot trade during designated Blackout
or Closed Periods. The policy explains how insider trading laws affect the dealings of Directors, executives,
employees and contractors in Canterbury's shares.
This policy can be found in the document "Canterbury Resources Policies" on Canterbury's website at
www.canterburyresources.com.au/about-us/corporate-governance/ under Corporate Governance.
Market Disclosure Policy
The Market Disclosure Policy describes reporting lines and decision-making processes that are designed to
ensure that Canterbury complies with its continuous disclosure obligations under the ASX Listing Rules and the
Corporations Act; and Canterbury's practices for ensuring effective communication with its shareholders and
the market, sets out the standards, protocols and law relating to disclosure of Canterbury’s information, and sets
out the requirements expected from all Directors, senior management, employees and contractors for
complying with Canterbury's policy on disclosure of price-sensitive information.
This policy can be found in the document "Canterbury Resources Policies" on Canterbury's website at
www.canterburyresources.com.au/about-us/corporate-governance/ under Corporate Governance.
Diversity and Inclusion Policy
The Diversity and Inclusion Policy sets out Canterbury’s commitment to promoting diversity amongst its personnel,
at management level and within the Canterbury group of companies as a whole.
Whistleblower Protection Policy
Canterbury is committed to conducting its global business activities with integrity and supporting an internal
culture of honest, ethical and socially responsible behaviour. Canterbury recognises that a whistleblower
protection policy is an important element in detecting corrupt, illegal or other undesirable conduct and
accordingly, to ensure these objectives are achieved, the Company encourages the reporting of any actual or
suspected instances of illegal, unethical, fraudulent or undesirable conduct involving Canterbury and its
operations.
8
Annual Report 2021
Corporate Governance
Creating a supportive environment where our people feel safe to Speak Up is one of Canterbury’s core values
and underpins our workplace culture.
This policy can be found in the document "Canterbury Resources Policies" on Canterbury's website at
www.canterburyresources.com.au/about-us/corporate-governance/ under Corporate Governance.
Compliance with Fourth Edition of the ASX Corporate Governance Council’s Principles and Recommendations
Canterbury is committed to implementing high standards of corporate governance. The Board of Directors is
responsible for corporate governance, and has the authority to determine, all matters relating to the strategic
direction, policies, practices, management goals and operations of Canterbury. It also monitors the business
and affairs of Canterbury on behalf of the Shareholders by whom they are elected and to whom they are
accountable. The Board has endorsed most of the ASX Corporate Governance Council Principles and
Recommendations (4th edition, issued in February 2019). The Corporate Governance Statement current at
30 June 2021 can be found at www.canterburyresources.com.au/about-us/corporate-governance/.
Skills Matrix
Canterbury is a junior explorer operating in Australia, Papua-New Guinea and Vanuatu.
The Board is comprised of experienced professionals with a variety of professional backgrounds relevant for
Canterbury’s operations and size.
The Board considers that individually and collectively, the Directors have an appropriate mix of skills, experience
and expertise to enable it to define Canterbury’s strategic objectives, approve strategies developed by
management and monitor the execution of those strategies.
To guide the assessment of the skills and experience of non-executive directors and to identify any gaps in the
collective skills of the Board, the Board uses the skills matrix over the page. This matrix also shows the Board’s
current assessment of its skills coverage.
SKILLS MATRIX
Number of directors
Proportion men/women on the Board
Profile
Information
Independent/non-independent
Completed AICD course or a course from similar professional body
(corporate governance)
Leadership experience in resource exploration industry including ability
to have a vision for what is possible and the drive to achieve it
Leadership
Skills and experience in developing and monitoring business strategy
Ability to clearly articulate the company’s vision, values and strategies
both internally to the business, the stakeholder groups, and externally to
business networks and the market
Industry
Technical and project management skills in resource exploration
COLLECTIVE
RESULT
5
4/1
3/2
4
3
5
5
3
9
Annual Report 2021
Corporate Governance
Experience and strong skills in assessing, valuing and understanding
resource assets
Managing OHS Risk in a mining environment, particularly remote
locations
Business and commercial skills in the successful oversight of exploration
businesses including finding, managing and selling assets
Commercial &
Financial
Capital raising skills preferably in the high risk exploration sector
including ability to market to and develop strong networks with the
investment community
Governance
Skills and experience in commodity financing
Skills and experience
in good governance and compliance, in
particular with regard to ASX Listing Rules and the ASIC legal framework
Qualifications and experience to chair and participate in the Audit
Committee including experience consolidating accounts multi-national
subsidiaries and complex joint venture arrangements
Skills and experience to chair the Remuneration and Nomination
Committee
Skills and experience to chair and participate on the Risk Management
Committee in the Resources sector including creating risk, safety and
compliance frameworks
3
3
3
3
3
4
3
4
5
10
Annual Report 2021
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
The directors of Canterbury Resources Limited submit the annual report of the consolidated entity (“the group”)
consisting of Canterbury Resources Limited (“the company”) and the entities it controlled at the end of, or during
the financial year ended 30 June 2021. The directors report as follows:
Directors
The following persons were directors of the company during the whole of the financial year and up to the date of
this report, unless noted otherwise:
John Ernest Douglas Anderson: Non-Executive Chairman
Grant Alan Craighead: Managing Director
Ross Earle Moller: Non-Executive Director and Co Company Secretary
Michael Matthew Erceg: Executive Director
Robyn Watts: Non-Executive Director
Information about the directors
At the date of this report there are six senior executives comprising four males and two females.
The six senior executives include five directors and one co-company secretary.
Ross Earle Moller, director, also acts as a co-company secretary.
John Ernest Douglas Anderson - BCom, MBA, GAICD
Non-Executive Chairman
Experience and expertise
John has +40 years’ experience in banking, investment banking and general
consulting in Australia and Chile. He has held positions of Managing Director
or Chairman with several public and private companies in Australia, and as a
Director of mining companies in Chile. John has experience in general
financing and capital raisings, developing and implementing business plans
for new and existing entities, and taking companies from IPO through to
operations. In ASX listed companies, in the capacity of director, managing
director or chairman, John has been a member of audit, remuneration and
finance committees, and was Chairman of Anchor Resources Ltd from IPO
through to the sale of controlling interest in 2011. John was appointed to the
Canterbury Board in 2011.
None
Non-Executive Chairman Carpentaria Resources Ltd
Chairman
Ordinary shares (Un-Escrowed) – 4,202,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2022 – 150,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2023 – 150,000
Ross is a Chartered Accountant and Chartered Secretary and brings +30
years’ experience in providing corporate advisory and secretarial services to
a range of listed and unlisted companies. He has expertise in financial
management, corporate governance and strategic planning, as well as
commercial and legal risk issues. Ross is based in Singapore and is an
Executive Director of a Management Consultancy business that operates
across the Asia-Pacific region.
None
None
None
Ordinary shares (Un-Escrowed) – 2,372,500
Options (Un-Escrowed) – under ESOP expiring 30 June 2022 – 150,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2023 – 150,000
11
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury
shares and options
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury
shares and options
Ross Earle Moller - BCom, Dip AppCorpGov, CA ANZ, AGIA, ICSA, GAICD
Non - Executive Director and Co Company Secretary
Experience and expertise
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Information about the directors (cont’d)
Grant Alan Craighead - BSc, MAusIMM, GAICD
Managing Director
Experience and expertise
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury
shares and options
Michael Matthew Erceg - BSc, MSc, Dip Min Econ, MAIG, RPGeo
Executive Director
Experience and expertise
Other current directorships
Former directorships in last 3
years
Special responsibilities
Interests in Canterbury
shares and options
Grant is a geologist with +40 years’ experience in the exploration, mining and
financial sectors. This includes eight years as Manager Geology with Elders
Resources NZFP Ltd and five years as a resource analyst at Macquarie
Bank. During his period with Elders, he was directly associated with
exploration and development successes including Red Dome, Selwyn, Wafi-
Golpu, Glendell, Narama and Kidston. He was a co-founder of Anchor
Resources Ltd and its Managing Director during the sale of controlling
interest in 2011. He is also a co-founder and director of Breakaway
Investment Group, a financial company that provides private equity and
advisory services in the resource sector.
Breakaway Investment Group
None
Managing Director
Ordinary shares (Un-Escrowed) – 8,064,349
Options (Un-Escrowed) – under ESOP expiring 30 June 2022 – 150,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2023 – 150,000
Michael is a geologist with 40 years’ experience in mineral exploration, mine
development and operations in New Zealand, Australia, Papua New Guinea,
Vanuatu, the Philippines and China. He is a specialist in southwest Pacific
porphyry copper-gold and epithermal gold-silver systems, and has a strong
understanding of their geological, geochemical, geophysical and alteration
footprints. He has extensive experience
in managing remote area
reconnaissance and advanced exploration programs, including an ability to
readily adapt to culturally diverse environments and work effectively with local
professional staff. During his career he has made significant direct
contribution to the discovery and/or delineation of the Red Dome, Northwest
Mungana, Wafi-Golpu, Ok Tedi, New Holland underground and
Murrawombie/Larsens/Northeast ore bodies.
None
None
Manager Exploration
Ordinary shares (Un-Escrowed) – 865,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2022 – 150,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2023 – 150,000
12
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Information about the directors (cont’d)
Robyn Watts
Non-Executive Director
Experience and expertise
Robyn is an experienced Chair and Non-Executive Director of ASX and private
company boards, which followed a 25+ year executive career as a CEO,
across a diverse range of sectors including telecommunications, retail, media,
entertainment and education sectors. Robyn’s experience is characterised by
companies with robust growth strategies involving significant M&A, business
transformation and turnaround, capital raising, strategic planning, development
of digital capability and customer engagement and international business
activity. Her ASX experience also includes Governance and Compliance,
Remuneration and Nomination (Chair); and Audit and Risk Committees. Robyn
has a strong background both professionally and personally in Papua New
Guinea over 35 years. This has given her experience in dealing with
government, local landowner groups and traditional cultures.
Other current directorships None
Former directorships in last
3 years
Special responsibilities
Interests in Canterbury
shares and options
Vita Group Ltd
Fantastic Holding Ltd
None
Ordinary shares (Un-Escrowed) – 50,000
Options (Un-Escrowed) – under ESOP expiring 30 June 2023 – 150,000
Co Company secretary information
Véronique Morgan-Smith - LLB Hons (UK), MBDE (Fr), CAPA (Fr), Law Dip. (Aus)
Company Secretary and In-House Legal Counsel
Véronique was appointed as Company Secretary and In-House legal Counsel in November 2013. She has +18
years’ experience as a corporate transactions lawyer, both in major international law firms and in-house, as an
Australian solicitor and a French avocat d’affaires. She has advised multinational companies and smaller
businesses from start-up through to domestic and cross-border transactions and joint-ventures in various legal
systems, including Australia, France, the UK, the US, Hong Kong, OHADA Africa, South Africa and various
Pacific Islands. Her broad practice has focused on mining and mineral resources in recent years, and she acts
as the company secretary of several private and public companies. Véronique uses her varied legal expertise to
assist the Board in corporate governance and compliance matters, capital raisings and corporate transactions.
Principal activity
The principal activity of the group is participation in mineral exploration projects, with tenements currently held
in Queensland and Papua New Guinea. The group primarily targets prospects with potential to host large scale
copper and/or gold deposits.
There were no significant changes in the group’s activities during the year.
Financial result
The consolidated loss of the group after providing for income tax for the year ended 30 June 2021 was
$1,311,928 (2020: loss $1,285,601).
The net assets of the group increased by $1,098,279 from $10,569,762 at 30 June 2020 to $11,668,041 at 30
June 2021, primarily due to the group’s loss for the year of $1,311,928 offset by an increase in issued capital of
$2,421,747.
13
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Dividends
There were no dividends paid or declared for the period ended 30 June 2021 (2020: nil). The directors have not
made any recommendations for payment of dividends in respect of the financial year.
Significant changes in the state of affairs
The outbreak of COVID-19 and the subsequent quarantine measures imposed by the Australian and other
governments as well as the travel and trade restrictions imposed by Australia and other countries in early 2020
have caused disruption to businesses and economic activity.
As the situation remains fluid (due to evolving changes in government policy and evolving business and customer
reactions thereto) as at the date these financial statements are authorised for issue, the directors of the company
considered that the financial effects of COVID-19 on the group's consolidated financial statements cannot be
reasonably estimated for future financial periods. However, the directors consider that the general economic
impacts arising from COVID-19 are expected to have a negative impact on certain sections of the operations.
The economic effects arising from the COVID-19 outbreak are expected to affect the consolidated results of the
group for the full year of 2022.
Other than as noted above, there was no significant change in the state of affairs of the group during the financial
year.
Review of operations
Canterbury continues to explore for large-scale porphyry copper-gold systems throughout the SW Pacific
region. During FY21 the group made significant progress across its portfolio, despite ongoing precautions and
restrictions associated with COVID-19. At the Briggs Copper Project in Queensland, numerous targets were
generated along strike and at depth of the Central Porphyry zone where a Mineral Resource of 142.8Mt at
0.29% copper has been outlined. These targets provide potential to substantially expand and enhance the
existing mineral resources. The next phase of exploration is being funded by African Energy Resources
(AFR) during an exclusive option period, after which AFR has the right to earn up to 70% joint venture in the
Project by sole-funding up to $15.25 million of assessment activity.
Elsewhere in Queensland, Canterbury has entered an option agreement to acquire the Peenam Project, which
covers an underexplored, large-scale Cu-Au porphyry system. ln PNG, Canterbury has three active projects at
Bismarck (40%), Ekuti Range (100%) and Wamum (100%).
The Bismarck Project on Manus Island is the subject of a Farm-In and Joint Venture with Rio Tinto Exploration
(PNG) Limited which is earning a project interest by completing staged exploration programs. Further evaluation
and reinterpretation of historical data has been undertaken, ahead of a program of surface mineral mapping of
the lithocap alteration zone. Results and interpretation will inform targeting during the next phase of drilling.
At Ekuti Range, planning is being undertaken for further exploration of the narrow, high-grade Otibanda and
Waikanda Au-Cu lodes, as well as a buried porphyry target between the lodes. In addition, drill core from the
2019 Ekoato drilling program has been shipped to Queensland for detailed geological assessment.
At the Wamum Project, Canterbury completed maiden Mineral Resource estimates for two significant deposits
with combined contained metal content of 3.16Moz Au and 762kt Cu:
ldzan Creek: 137.3Mt at 0.53g/t Au and 0.24% Cu
Wamum Creek: 141.5Mt at 0.18g/t Au and 0.31% Cu
(cid:127)
(cid:127)
Representative drill core from the ldzan Creek and Wamum Creek deposits has been shipped to Queensland
for geological and metallurgical assessment.
Sale of the group’s Vanuatu assets was completed in June 2021.
14
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Review of operations (cont’d)
During the year ended 30 June 2021, the group was eligible to receive JobKeeper subsidy to the amount of
$103,500 for its employees.
Commitments for expenditure
To maintain the group's tenements in good standing with the relevant mining authorities, the group is required
to incur exploration expenditure under
licence. The indicative minimum
exploration requirement for FY22 is approximately $1.0 million, of which approximately $0.7 million is covered
by partners under joint venture agreements. This is a pro- rata estimate, based on annualised licence terms,
converted to AUD at current exchange rates.
the terms of each exploration
Applications have been submitted to relevant authorities to reduce these amounts in FY22 due to COVID-19
restrictions.
Directors’ meetings
The following table sets out the number of directors’ meetings (including meetings of committees of directors).
Committee
Board Meetings
Risk
Audit
Remuneration
Governance
Nomination
Held Attended Held Attended Held Attended Held Attended Held Attended Held Attended
R Moller
J Anderson
G Craighead
M Erceg
R Watts
14
14
14
14
14
14
14
14
14
14
3
3
3
3
3
3
3
3
3
3
3
-
-
-
3
3
-
-
-
3
2
2
-
-
2
2
2
-
-
2
1
1
1
1
1
1
1
1
1
1
-
-
-
-
-
-
-
-
-
-
Events since the end of the financial year
Since 30 June 2021, the following events have arisen:
Canterbury entered into an agreement with African Energy Resources (AFR), providing AFR with exclusive rights
in relation to the Briggs Copper Project. During an initial option period, AFR will sole fund $750,000 of exploration
activity to earn the right to enter a staged earn-in phase.
During the earn-in phase, AFR has the right to earn up to a 70% joint venture interest in the Briggs Copper
Project through staged expenditure totalling up to $15.25 million over 9 years.
The company issued 8,333,333 shares via a Private Placement to African Energy Resources priced at $0.12 per
new share, raising approximately $1,000,000. The company issued 3 million options to African Energy
Resources with a $0.24 conversion price and a 31 December 2023 expiry date.
Environmental regulation
The Manager Exploration reports to the Board on all significant safety, health and environmental incidents. The
Board also has a Risk Committee which has oversight of the safety, health and environmental performance of
the group. The activities of the group are subject to environmental regulation under the jurisdiction of the
countries in which those activities are conducted, including Australia and Papua New Guinea. Each tenement is
subject to environmental regulation as part of their granting. Each site is also required to manage their
environmental obligations in accordance with group policies. The group has internal reporting systems.
Environmental incidents are reported and assessed according to their environmental consequence and
environmental authorities are notified where required and remedial action is undertaken.
15
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Climate change
The group’s exploration activities are assessed as having relatively low energy intensity, producing low exposure
to climate change risks related to the transition to a lower carbon economy.
Exploration activities may be carried out at sites that are vulnerable to physical climate impacts. Extreme weather
events have the potential to damage infrastructure and disrupt or delay field activities. The group is adapting its
site-specific operating plans to ensure that this risk factor is considered.
Remuneration of key management personnel
Information about the remuneration of key management personnel is set out in the remuneration report section
of this directors’ report. The term ‘key management personnel’ refers to those persons having authority and
responsibility for planning, directing and controlling the activities of the consolidated entity, directly or indirectly,
including any director (whether executive or otherwise) of the group.
Share options granted to directors and senior management
During the year, there were 750,000 options issued to the directors or senior management.
Remuneration report (audited)
This remuneration report for the year ended 30 June 2021 outlies the remuneration arrangement of the group
and the group in accordance with the requirements of the Corporations Act 2001 (the “Act”) and its regulations.
This information has been audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of the group and the group, directly or indirectly, including any director (whether executive or otherwise)
of the parent company.
Details of key management personnel
Directors
John Anderson
Grant Craighead
Ross Moller
Michael Erceg
Robyn Watts
Remuneration philosophy
Non-Executive Chairman
Managing Director
Non-Executive Director and Co-Company Secretary
Executive Director
Non-Executive Director
The objectives of the group’s remuneration framework are to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aligns executive reward with achievement of strategic
objectives and the creation of value for shareholders. The Board believes that executive remuneration satisfies
the following key criteria:
·
·
·
·
·
competitiveness and reasonableness
acceptability to shareholders
performance linkage/alignment of executive compensation
transparency
capital management.
These criteria result in a framework which can be used to provide a mix of fixed and variable remuneration, and
a blend of short and long-term incentives in line with the group’s limited financial resources.
16
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Remuneration philosophy (cont’d)
Fees and payments to the group’s non-executive directors and senior executives reflect the demands which are
made on, and the responsibilities of, the directors and senior management. Such fees and payments are
reviewed annually by the Board. The group’s executive and non-executive directors, senior executives and
officers are entitled to receive options under the group’s employee share option scheme.
Relationship between the remuneration policy and company performance
The tables below set out summary information about the group’s earnings and movements in shareholder wealth
for the five years to June 2021. As the table indicates, earnings have varied significantly over the past five
financial years, due to the nature of activities. It has been the focus of the Board of Directors to attract and retain
management personnel essential to continue the group’s participation in mineral exploration projects.
30 June 2021
$
30 June 2020
$
30 June 2019
$
30 June 2018
$
30 June 2017
$
Revenue
Net loss before tax
Net loss after tax
382,813
(1,311,928)
(1,311,928)
6,004
(1,285,601)
(1,285,601)
36,398
(1,015,172)
(1,015,172)
20,508
(627,181)
(627,181)
89,497
(136,612)
(136,612)
Share price at end of year ($)
Basic and diluted loss per
share (cents per share)
0.092
0.13
0.29
NA*
NA*
(0.0122)
(0.0153)
(0.0150)
(0.0118)
(0.0043)
*The company was admitted to the official list of the ASX in 2019, with official quotation of its ordinary fully paid
shares commencing on 7 March 2019. As such, information for 2017 and 2018 is not available.
Remuneration of directors is set by reference to payments made by other companies of similar size and industry,
and by reference to the skills and experience of directors. Fees paid to Non-Executive Directors are not linked
to the performance of the group. This policy may change once the exploration phase is complete and the group
is generating revenue. At present the existing remuneration policy is not impacted by the group’s performance
including earnings and changes in shareholder wealth (e.g. changes in share price) with the exception of
incentive options issued to directors, subject to shareholder approval.
Remuneration of key management personnel
2021
Directors
J E D Anderson
GA Craighead
R Watts
M Erceg
R E Moller
Short-term
employee benefits
Post-employment
benefits
Share-based
payments
Salary and
directors’ fees
$
68,493
273,972
59,360
114,155
65,000
580,980
Consulting
fees
$
-
-
-
148,800
25,260
174,060
Superannuation
$
6,507
26,028
5,640
10,845
-
49,020
Options
$
11,544
11,544
11,544
11,544
11,544
57,720
Total
$
86,544
311,544
76,544
285,344
101,804
861,780
17
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
2020
Directors
R E Moller
J E D Anderson
GA Craighead
GN Fallon*
M Erceg
R Watts**
Short-term
employee benefits
Post-employment
benefits
Share-based
payments
Salary and
directors’ fees
$
65,000
68,493
262,557
44,520
-
22,687
463,257
Consulting
fees
$
34,140
-
17,500
-
165,000
-
216,640
Superannuation
$
-
6,507
24,925
4,229
-
2,155
37,816
Options
$
13,344
13,344
13,344
13,344
13,344
-
66,720
Total
$
112,484
88,344
318,326
62,093
178,344
24,842
784,433
*Resigned 12 February 2020
**Appointed 12 February 2020
No performance-based remuneration was paid in 2021 (2020: nil).
The performance and remuneration of directors and senior executives is reviewed annually.
Non-executive director remuneration arrangements
Directors are entitled to remuneration out of the funds of the company but the remuneration of the non-executive
directors (“NED”) may not exceed in any year the amount fixed by the company in general meeting for that
purpose. The aggregate remuneration of the NEDs has been fixed at a maximum of $250,000 per annum to be
apportioned among the NEDs in such a manner as the Board determines. Directors are also entitled to be paid
reasonable travelling, accommodation and other expenses incurred in consequence of their attendance at Board
meetings and otherwise in the execution of their duties as directors.
For the year to 30 June 2021, the Chairman’s fee was set at $75,000 per annum and NED fees at $65,000 per
annum.
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in employment
contracts and are set out below.
For the year to 30 June 2021, the Managing Director’s remuneration was set at $300,000 per annum inclusive
of superannuation, (2020: $300,000 per annum inclusive of superannuation). There were no termination
payments. For the year to 30 June 2021, the Executive Director’s remuneration was set at $1,200 per day, plus
GST (2020: $1,200 per day, plus GST) for the first six months and then $250,000 per annum inclusive of
superannuation. There were no termination payments.
Transactions with associates of directors
There were no transactions with associates of directors.
Number of shares held by key management personnel
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the group, is set out below:
18
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Number of shares held by key management personnel (cont’d)
No of shares
Balance at the
beginning of
the year
Received as
part of
remuneration
Additions
Disposals
2,372,500
2,912,000
7,556,842
715,000
-
13,556,342
-
-
-
-
-
-
-
1,290,000
213,333
150,000
50,000
1,703,333
Balance at
the end of
the year
-
-
-
-
-
-
2,372,500
4,202,000
7,770,175
865,000
50,000
15,259,675
Ordinary shares
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
Employee share option plan
The group operates an employee share option plan for employees and contractors of the group. In accordance
with the provisions of the plan, employees may be granted options to purchase parcels of ordinary shares at
specified exercise prices.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The option carries neither rights to dividends nor voting rights.
Options may be exercised at any time from the date of vesting to the date of their expiry.
The options granted expire on their expiry date, or one month after the resignation of the employee, whichever
is the earlier.
Terms and conditions of share-based payment arrangements affecting remuneration of key management
personnel in the current financial year or future financial years:
Options
Series
CBY06
CBY07
Grant date
Exercise
Price
Expiry date
Vesting date
28/11/2019
23/09/2020
$0.35
$0.25
30/06/2022
28/11/2019
30/06/2023
23/09/2020
There has been no alteration of the terms and conditions of the above share-based payment arrangements since
the grant date.
Details of share-based payments granted as compensation to key management personnel during the current
financial year:
Option series No. granted
No. vested
% of grant
vested
% of grant
forfeited
During the financial year
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
CBY07
CBY07
CBY07
CBY07
CBY07
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
100
100
100
100
100
-
-
-
-
-
During the year, the following key management personnel exercised options that were granted to them as part
of their compensation. Each option converts into one ordinary share of Canterbury Resources Limited.
19
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Directors’ report
Remuneration report (audited) (cont’d)
Employee share option plan (cont’d)
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
No. of options
exercised
No. of
ordinary
shares of the
company
Amount
paid
Amount
unpaid
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The following table summarises the value of options granted and exercised during the financial year, in relation
to options granted to key management personnel as part of their remuneration:
Value of options granted
at the grant date (i)
Value of options exercised
at the exercise date (ii)
Director
R E Moller
J E D Anderson
GA Craighead
M Erceg
R Watts
(i) The value of options granted during the financial year is calculated as at the grant date using a Black-Scholes
model. This grant date value is allocated to remuneration of key management personnel on a straight-line basis
over the period from grant date to vesting date.
11,544
11,544
11,544
11,544
11,544
-
-
-
-
-
This concludes the remuneration report, which has been audited.
Proceedings on behalf of company
No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any
proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company
for all or any part of those proceedings. The company was not a party to any such proceedings during the year.
Future developments
Disclosure of information regarding likely developments in the operations of the group in future financial years
and the expected results of those operations is likely to result in unreasonable prejudice to the group.
Accordingly, this information has not been disclosed in this report.
Indemnification of officers and auditors
During the financial year, the company paid a premium in respect of a contract insuring the directors of the group,
the group secretary, and all executive officers of the group and of any related body corporate against a liability
incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The group has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify an officer or auditor of the group or of any related body corporate against a
liability incurred as such by an officer or auditor.
20
Canterbury
ABN 59152189 369
Resources
Limited
and Controlled
Entities
Directors'
report
Non-audit
services
The group's
2021 (2020:
auditor,
Nil).
BDJ Partners
did not provide
non-audit services
to the group during
the year ended 20 June
Auditor's
independence
declaration
The auditor's
independence
declarat
ion is included
after this report.
report
This directors'
Act 2001.
Corporations
is signed in accordance
with a resolution
of directors
made pursuant
of the
to s.298(2)
On behalf
of the Directors
..
Director:
Grant Craig ead
Dated: 29 September 2021
21
Auditor's Independence Declaration
To the directors of Canterbury Resources Limited
As engagement partner for the audit of Canterbury Resources Limited for the year ended
30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
i)
no contraventions of the independence requirements of the Corporations Act
2001 in relation to the audit; and
ii) no contraventions of any applicable code of professional conduct in relation to the
audit.
BDJ Partners
…………………………………………………
Anthony Dowell
Partner
28 September 2021
Phone
+61 2 9956 8500
Email
bdj@bdj.com.au
Office
Level 8, 124
Walker Street
North Sydney
NSW 2060
Postal
PO Box 1664,
North Sydney
NSW 2059
Liability limited by a
scheme approved
under Professional
Standards Legislation.
Please refer to the
website for our
standard terms of
engagement.
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of profit or loss and other comprehensive income
for the year ended 30 June 2021
Revenue
Other income
Finance income - interest income
Other gains/(losses)
Gain on disposal of subsidiary
Administration expenses
Employee benefits expense
Corporate costs
Consultancy
Depreciation and amortisation expense
Impairment of capitalised expenditure
Marketing expense
Occupancy expense
Insurance
Share-based payment expense
Finance costs
Other expenses
Loss before tax
Income tax benefit
Loss for the year
Attributable to:
Owners of the company
Other comprehensive loss
Item that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Items that will not be reclassified to profit or loss
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Total comprehensive loss attributable to:
Owners of the company
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Note
3(a)
3(b)
4
4
4
4
4
5
6
6
2021
$
-
103,500
18
51,626
279,295
(104,214)
(496,029)
(318,179)
(50,773)
(22,827)
(569,466)
(22,852)
(1,049)
(27,750)
(57,722)
(1,470)
(74,036)
2020
$
6,004
150,250
10,894
(4,900)
-
(133,489)
(342,092)
(307,129)
(52,637)
(24,115)
(403,240)
-
-
(21,017)
(106,755)
(2,753)
(54,622)
(1,311,928)
-
(1,311,928)
(1,285,601)
-
(1,285,601)
(1,311,928)
(1,285,601)
-
-
-
(2,800)
-
(2,800)
(1,311,928)
(1,288,401)
(1,311,928)
(1,288,401)
(0.0122)
(0.0122)
(0.0153)
(0.0153)
The accompanying notes form part of these financial statements.
23
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of financial position
as at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Capitalised exploration and development expenditure
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Total current liabilities
Non-current liabilities
Provisions
Lease liabilities
Total non-current liabilities
Note
21(a)
7
8
9
10
11
12
8
13
14
15
14
15
2021
$
2020
$
545,568
338,250
16,489
900,307
27,220
52,142
2,735,758
8,170,955
11,442
10,997,517
67,902
204,312
30,181
302,395
34,628
21,020
2,736,145
8,163,919
10,442
10,966,154
11,897,824
11,268,549
131,583
34,773
18,673
185,029
11,039
33,715
44,754
655,811
21,428
13,371
690,610
-
8,177
8,177
Total liabilities
229,783
698,787
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
11,668,041
10,569,762
16
17
18
16,158,630
164,477
(4,655,066)
13,736,883
218,017
(3,385,138)
11,668,041
10,569,762
The accompanying notes form part of these financial statements.
24
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of changes in equity
for the year ended 30 June 2021
Balance at 1 July 2019
Loss for the year
Foreign currency translation
Total comprehensive loss for the year
Transactions with owners of the
company:
Shares issued during the year (net of
share issue costs)
Options issued during the year
Options expired during the year
Issued
capital
$
Reserves
$
Accumulated
losses
$
12,614,548
-
-
-
189,662
-
(2,800)
(2,800)
(2,175,137)
(1,285,601)
-
(1,285,601)
Total
$
10,629,073
(1,285,601)
(2,800)
(1,288,401)
1,122,335
-
-
-
106,755
(75,600)
-
-
75,600
1,122,335
106,755
-
Balance at 30 June 2020
13,736,883
218,017
(3,385,138)
10,569,762
Balance at 1 July 2020
Loss for the year
Foreign currency translation
Total comprehensive loss for the year
Transactions with owners of the
company:
Shares issued during the year (net of
share issue costs)
Options issued during the year
Options expired during the year
13,736,883
-
-
-
218,017
-
(69,262)
(69,262)
(3,385,138)
(1,311,928)
-
(1,311,928)
10,569,762
(1,311,928)
(69,262)
(1,381,190)
2,421,747
-
-
-
57,722
(42,000)
-
-
42,000
2,421,747
57,722
-
Balance at 30 June 2021
16,158,630
164,477
(4,655,066)
11,668,041
The accompanying notes form part of these financial statements.
25
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Consolidated statement of cash flows
for the year ended 30 June 2021
Cash flows from operating activities
Interest received
Interest expense
Other receipts
Receipt of Government grant and subsidies
Payments to suppliers and employees
Note
2021
$
2020
$
18
-
47,289
185,302
(1,047,328)
13,991
(1,047)
6,004
68,548
(951,421)
Net cash used in operating activities
21(b)
(814,719)
(863,925)
Cash flows from investing activities
Payment of costs for acquisition of Finny Limited
Payments for property, plant and equipment
Payments for exploration and development expenditure
Refunds of tenement security deposits
Payment for deposit
-
(1,727)
(1,050,291)
3,575
(500)
(17,804)
-
(3,068,791)
-
(500)
Net cash used in investing activities
(1,048,943)
(3,087,095)
Cash flows from financing activities
Proceeds from issue of shares (net of costs)
Proceeds from share subscriptions
Repayment of lease liabilities
Interest paid - leases
2,371,747
-
(12,857)
(1,396)
1,122,335
50,000
(12,594)
(1,706)
Net cash generated by financing activities
2,357,494
1,158,035
Net effect of foreign exchange
(16,166)
(4,900)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
477,666
67,902
(2,797,885)
2,865,787
Cash and cash equivalents at the end of the year
21(a)
545,568
67,902
The accompanying notes form part of these financial statements.
26
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
1. General information
Canterbury Resources Limited (“the company”) is a public company incorporated in Australia.
The address of its registered office and principal place of business is as follows:
Suite 301
55 Miller Street
Pyrmont NSW 2009
The principal activity of the group is participation in mineral exploration projects, with tenements currently held
in Queensland and Papua New Guinea. The group primarily targets prospects with potential to host large scale
copper and/or gold deposits.
These consolidated financial statements and notes represent the company and its controlled entities (“the
group”).
2. Significant accounting policies
Statement of compliance
The financial statements are general purpose financial statements which have been prepared in accordance
with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements
of the law. Accounting Standards include Australian Accounting Standards (‘AAS’). Compliance with AAS
ensures that the financial statements and notes of the group comply with International Financial Reporting
Standards (‘IFRS’).
The financial statements comprise the consolidated financial statements of the group.
For the purposes of preparing the consolidated financial statements, the group is a for-profit entity.
The financial statements were authorised for issue by the directors on 29 September 2021.
Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for certain non-
current assets and financial instruments that are measured at revalued amounts or fair values, as explained in
the accounting policies below. Historical cost is generally based on the fair values of the consideration given in
exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable
or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the group
takes into account the characteristics of the asset or liability if market participants would take those
characteristics into account when pricing the asset or liability at the measurement date. Fair value for
measurement and/or disclosure purposes in these consolidated financial statements is determined on such a
basis, except for share-based payment transactions that are within the scope of AASB 2 ‘Share-based
payments’, leasing transactions that are within the scope of AASB 16 ‘Leases’, and measurements that have
some similarities to fair value but are not fair value, such as value in use in AASB 136 ‘Impairment of Assets’.
27
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
The principal accounting policies are set out below.
(a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and the entities
controlled by the company (its subsidiaries) up to 30 June each year. Control is achieved when the company:
(cid:127)
(cid:127)
(cid:127)
has the power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affects its returns.
The company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
When the company has less than a majority of the voting rights of an investee, it considers that it has power
over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities
of the investee unilaterally. The company considers all relevant facts and circumstances in assessing whether
or not the company’s voting rights in an investee are sufficient to give it power, including:
(cid:127)
(cid:127)
(cid:127)
(cid:127)
the size of the company’s holding of voting rights relative to the size and dispersion of holdings of the
other vote holders;
potential voting rights held by the company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the company has, or does not have, the current
ability to direct the relevant activities at the time that decisions need to be made, including voting patterns
at previous shareholders’ meetings.
Consolidation of a subsidiary begins when the company obtains control over the subsidiary and ceases when
the company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of
during the year are included in profit or loss from the date the company gains control until the date when the
company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the company.
Total comprehensive income of the subsidiaries is attributed to the owners of the company. Where necessary,
adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line
with the group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
the members of the group are eliminated on consolidation.
(b) Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value which is calculated as the sum of the acquisition-date fair values
of assets transferred by the group, liabilities incurred by the group to the former owners of the acquiree and the
equity instruments issued by the group in exchange for control of the acquiree. Acquisition-related costs are
recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair
value, except that:
28
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(b) Business combinations (cont’d)
·
·
·
deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119 ‘Employee
Benefits’ respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-
based payment arrangements of the group entered into to replace share-based payment arrangements
of the acquiree are measured in accordance with AASB 2 ‘Share-based Payment’ at the acquisition
date; and
assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 ‘Non-current
Assets Held for Sale and Discontinued Operations’ are measured in accordance with that Standard.
Where the consideration transferred by the group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill.
Measurement period adjustments are adjustments that arise from additional information obtained during the
‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances
that existed at the acquisition date.
(c) Revenue recognition
Revenue is measured based on the consideration to which the group expects to be entitled in a contract with
a customer and excludes amounts collected on behalf of third parties. The group recognises revenue when it
transfers control of a service to a customer.
Support services
The group recognises operating revenue from the provision of support services. Such services are recognised
as a performance obligation satisfied at a point in time.
(d) Government grants
COVID-19 Cash Boost
Government grants in the scope of AASB 120 are not recognised until there is reasonable assurance that the
group will comply with the conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the group
recognises as expenses the related costs for which the grants are intended to compensate.
The cash flow boost is effectively a waiver of the whole, or part, of the PAYG liability, the amount of the ‘payment’
is recognised as a reduction in the PAYG liability and grant income. The condition for receiving the grant is that
PAYG has been withheld, the reduction in PAYG liability and corresponding grant income is recognised when
salaries are paid.
JobKeeper subsidy
In response to the global pandemic COVID-19, the Australian Government has offered financial stimulus for not
for profit organisations and other organisations, such as Job Keeper. The payment is made to the employer and
administered through the tax system. The JobKeeper payment is not subject to GST. This income is recognised
in the period in which the related expenses are incurred.
29
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(e) Leases
The group as lessee
The group assesses whether a contract is or contains a lease, at inception of the contract. The group recognises
a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of
low value assets. For these leases, the group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another systematic basis is more representative of the time
pattern in which economic benefits from the leased assets are consumed. The lease liability is initially measured
at the present value of the lease payments that are not paid at the commencement date, discounted using the
rate implicit in the lease. If this rate cannot be readily determined, the group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
(cid:127)
(cid:127)
(cid:127)
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
The amount expected to be payable by the lessee under residual value guarantees.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments
made. The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-
use asset) whenever:
(cid:127)
(cid:127)
(cid:127)
The lease term has changed or there is a significant event or change in circumstances resulting in a
change in the assessment of exercise of a purchase option, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate.
The lease payments change due to changes in an index or rate or a change in expected payment under
a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised
lease payments using an unchanged discount rate (unless the lease payments change is due to a
change in a floating interest rate, in which case a revised discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate lease, in
which case the lease liability is remeasured based on the lease term of the modified lease by discounting
the revised lease payments using a revised discount rate at the effective date of the modification.
The group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments
made at or before the commencement day, less any lease incentives received and any initial direct costs. They
are subsequently measured at cost less accumulated depreciation and impairment losses. Whenever the group
incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or
restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is
recognised and measured under AASB 137. To the extent that the costs relate to a right-of-use asset, the costs
are included in the related right-of-use asset.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the group
expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the
underlying asset. The depreciation starts at the commencement date of the lease. The right-of-use assets are
presented as a separate line in the consolidated statement of financial position. The group applies AASB 136
to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as
described in the ‘Property, plant and equipment’ policy (as outlined in the financial report for the annual reporting
period.
30
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(e) Leases (cont’d)
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability
and the right-of-use asset. The related payments are recognised as an expense in the period in which the event
or condition that triggers those payments occurs and are included in the line “Other expenses” in profit or loss.
As a practical expedient, AASB 16 permits a lessee not to separate non-lease components, and instead account
for any lease and associated non-lease components as a single arrangement.
The group has not used this practical expedient. For contracts that contain a lease component and one or more
additional lease or non-lease components, the group allocates the consideration in the contract to each lease
component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone
price of the non-lease components.
(f) Taxation
The company is part of a tax-consolidated group under Australian taxation law, of which Canterbury Resources
Limited is the head entity. As a result, Canterbury Resources Limited is subject to income tax through its
membership of the tax-consolidated group. The consolidated current and deferred tax amounts for the tax-
consolidated group are allocated to the members of the tax-consolidated group using the ‘separate taxpayer
within group’ approach, with deferred taxes being allocated by reference to the carrying amounts in the financial
statements of each member entity and the tax values applying under tax consolidation. Current tax liabilities
and assets and deferred tax assets arising from unused tax losses and relevant tax credits arising from this
allocation process are then accounted for as immediately assumed by the head entity, as under Australian
taxation law the head entity has the legal obligation (or right) to these amounts.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as
reported in the consolidated statement of profit or loss and other comprehensive income because of items of
income or expense that are taxable or deductible in other years and items that are never taxable or deductible.
The group‘s current tax is calculated using tax rates that have been enacted or substantively enacted by the
end of the reporting period.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the
temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, except where the group is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only recognised to the
extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
31
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(f) Taxation (cont’d)
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the group expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case the current and deferred tax are also
recognised in other comprehensive income or directly in equity, respectively. Where current tax or deferred tax
arises from the initial accounting for a business combination, the tax effect is included in the accounting for the
business combination.
(g) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less which are convertible to a known amount of cash
and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
(h) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment
losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their
useful lives, using the diminishing value method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.
Depreciation is calculated on a diminishing value basis so as to write off the cost or revalued amount of each
fixed asset over its estimated useful life, as follows to its estimated residual value.
Class of property, plant and equipment
Plant and equipment
Website development costs
Computer hardware
Motor vehicles
Right of use assets
Depreciation rate
15%
25%
33.33%
25%
Useful life or shorter of lease term
32
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(h) Property, plant and equipment (cont’d)
Depreciation rates and methods shall be reviewed at least annually and, where changed, shall be accounted
for as a change in accounting estimate. Where depreciation rates or methods are changed, the net written down
value of the asset is depreciated from the date of the change in accordance with the new depreciation rate or
method. Depreciation recognised in prior financial years shall not be changed, that is, the change in depreciation
rate or method shall be accounted for on a ‘prospective’ basis.
The assets' residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in profit or loss.
(i) Exploration and development expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable
area of interest. These costs are only capitalised to the extent that they are expected to be recovered through
the successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation
to that area.
Costs of site restoration are provided for over the life of the project from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws
and regulations and clauses of the permits. Such costs have been determined using estimates of future costs,
current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legalisation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
(j) Impairment of assets (excluding goodwill)
At the end of each reporting period, the group reviews the carrying amounts of its tangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
When it is not possible to estimate the recoverable amount of an individual asset, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent
basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and
consistent allocation basis can be identified.
33
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(j) Impairment of assets (excluding goodwill) (cont’d)
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment
loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in
which case the impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in
profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase.
(k) Goodwill
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing,
goodwill is allocated to each of the group’s cash-generating units (or groups of cash-generating units) expected
to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated
are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired.
If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
On disposal of a cash generating unit, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
34
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(l) Financial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual
provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately
in profit or loss.
Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace. All recognised financial assets are
measured subsequently in their entirety at either amortised cost.
Classification of financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
(cid:127)
(cid:127)
the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
The group’s financial assets at amortised cost includes trade receivables.
Amortised cost and effective interest method
For financial assets other than purchased or originated credit-impaired financial assets (i.e. assets that are
credit-impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated future
cash receipts (including all fees and points paid or received that form an integral part of the effective interest
rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected
life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt
instrument on initial recognition. For purchased or originated credit-impaired financial assets, a credit-adjusted
effective interest rate is calculated by discounting the estimated future cash flows, including expected credit
losses, to the amortised cost of the debt instrument on initial recognition.
The amortised cost of a financial asset is the amount at which the financial asset is measured at initial
recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method
of any difference between that initial amount and the maturity amount, adjusted for any loss allowance.
The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any
loss allowance.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest income over the relevant period.
Impairment of financial assets
The group recognises a loss allowance for expected credit losses on trade receivables. The amount of expected
credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the
respective financial instrument.
35
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(l) Financial instruments (cont’d)
Financial assets (cont’d)
Impairment of financial assets (cont’d)
The group always recognises lifetime expected credit losses (ECL) for trade receivables. The expected credit
losses on these financial assets are estimated using a provision matrix based on the group’s historical credit
loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an
assessment of both the current as well as the forecast direction of conditions at the reporting date, including
time value of money where appropriate.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the
expected life of a financial instrument.
Measurement and recognition of expected credit losses
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of
default and loss given default is based on historical data adjusted by forward-looking information as described
above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying
amount at the reporting date; for financial guarantee contracts, the exposure includes the amount drawn down
as at the reporting date, together with any additional amounts expected to be drawn down in the future by default
date determined based on historical trend, the entity’s understanding of the specific future financing needs of
the debtors, and other relevant forward-looking information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows
that are due to the group in accordance with the contract and all the cash flows that the group expects to receive,
discounted at the original effective interest rate.
If the group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in
the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL
are no longer met, the entity measures the loss allowance at an amount equal to 12-month ECL at the current
reporting date, except for assets for which simplified approach was used.
The group recognises an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account.
Derecognition of financial assets
The entity derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the entity neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the entity recognises its retained interest in the asset
and an associated liability for amounts it may have to pay. If the entity retains substantially all the risks and
rewards of ownership of a transferred financial asset, the entity continues to recognise the financial asset and
also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.
Financial liabilities
Financial liabilities, including trade and other payables, are initially measured at fair value, net of transaction
costs.
36
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(l) Financial instruments (cont’d)
Financial liabilities (cont’d)
All financial liabilities are measured subsequently at amortised cost using the effective interest method.
Derecognition
The group derecognises financial liabilities when, and only when, the group’s obligations are discharged,
cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and
the consideration paid and payable is recognised in profit or loss.
(m) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of
the cost of acquisition of an asset or as part of an item of expense; or
ii. for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified within operating cash flows.
(n) Foreign currencies
For the purpose of the consolidated financial statements, the results and financial position of the group are
expressed in Australian dollars (‘$’), which is the functional currency of the company and the presentation
currency for the consolidated financial statements.
In preparing the consolidated financial statements, transactions in currencies other than the group’s functional
currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the
rates prevailing at that date. Nonmonetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
For the purpose of presenting these consolidated financial statements, the assets and liabilities of the group’s
foreign operations are translated into Australian dollars using exchange rates prevailing at the end of the
reporting period. Income and expense items are translated at the average exchange rates for the period, unless
exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the
transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and
accumulated in equity.
37
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(o) Critical accounting judgments and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
Useful lives of property, plant and equipment
As described at (h) above, the group reviews the estimated useful lives of property, plant and equipment at the
end of each reporting period.
Impairment testing
Goodwill is evaluated for impairment annually or whenever certain triggering events or circumstances, that
would more likely than not reduce the fair value of a reporting unit below its carrying amount, are identified.
Events or circumstances that might indicate an interim evaluation is warranted include, among other things,
unexpected adverse business conditions, macro and reporting unit specific economic factors (for example,
interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated
competitive activities, and acts by governments and courts.
Capitalised exploration and development expenditure
Exploration, evaluation and development expenditures incurred are only capitalised to the extent that they are
expected to be recovered through the successful development of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
capitalise costs in relation to that area.
Deferred tax assets
Deferred tax assets are recognised for deductible temporary differences as it is probable that future taxable
amounts will be available to utilise those temporary differences. Further, the company has determined that it is
not probable that it will derive sufficient taxable income in the near future to recover the tax losses and as a
result they have not been recognised as deferred tax assets in the 2021 financial period.
Provision for rehabilitation
Costs of site restoration have been determined using estimates of future costs, current legal requirements and
technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legalisation.
38
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(p) Share-based payments
Employee share option plan
The group operates an employee share option for employees and contractors of the group. In accordance with
the provisions of the plan, employees may be granted options to purchase parcels of ordinary shares at specified
exercise prices.
Equity-settled share-based payments to employees and others providing similar services are measured at the
fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market-based
vesting conditions.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the group’s estimate of the number of equity instruments
that will eventually vest. At each reporting date, the group revises its estimate of the number of equity
instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the
revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to reserves.
Equity-settled share-based payment transactions with parties other than employees are measured at the fair
value of the goods or services received, except where that fair value cannot be estimated reliably, in which case
they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains
the goods or the counterparty renders the service.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid
or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights.
Options may be exercised at any time from the date of vesting to the date of their expiry.
(q) Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
When a group entity undertakes its activities under joint operations, the group as a joint operator recognises in
relation to its interest in a joint operation:
(cid:127) its assets, including its share of any assets held jointly;
(cid:127) its liabilities, including its share of any liabilities incurred jointly;
(cid:127) its revenue from the sale of its share of the output arising from the joint operation;
(cid:127) its share of the revenue from the sale of the output by the joint operation; and
(cid:127) its expenses, including its share of any expenses incurred jointly.
The group accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in
accordance with the IFRS Standards applicable to the particular assets, liabilities, revenue and expenses.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or
contribution of assets), the group is considered to be conducting the transaction with the other parties to the
joint operation, and gains and losses resulting from the transactions are recognised in the group’s consolidated
financial statements only to the extent of other parties’ interests in the joint operation.
When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase
of assets), the group does not recognise its share of the gains and losses until it resells those assets to a
third party.
39
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(r) Going concern
The consolidated net loss of the group, after tax was $1,311,928 for the year ended 30 June 2021 (2020: loss
$1,285,601), with cash outflows from operating activities of $814,719 (2020: cash outflow $863,925); and a
working capital surplus of $715,278 (2020: working capital deficit $388,215).
Despite the impact of COVID-19, the directors believe the group is a going concern. This financial report has
been prepared on the going concern basis, which assumes continuity of normal business activities and the
realisation of assets and the settlement of liabilities in the ordinary course of business.
The directors are aware of the fact that future development and administration activities are constrained by
available cash assets, and believe future identified cash flows are sufficient to fund the short-term working
capital and forecasted exploration requirements of the group.
The directors have reached the conclusion that based on all available facts and information currently available,
there are reasonable grounds to believe that the group will be able to pay its debts as an when they become
due and payable and is a going concern.
The group has a cash balance of $1,171,767 as of the date of this report to meet its expenses over the next
twelve months.
(s) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM). The Managing Director has been identified as the CODM.
The board has appointed a strategic steering committee which assesses the financial performance and position
of the group and makes strategic decisions. The steering committee, which is led by the CODM (Chief Operating
Decision Maker), consists of the Managing Director as well as the remainder of the executive committee
consisting of the lead decision maker in each region.
(t) Adoption of new and revised Accounting Standards
Amendments to Accounting Standards that are mandatorily effective for the current year
In the current year, the group has adopted all of the new and revised Standards and interpretations issued by
the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the
current annual reporting period. Except as described below, there has been no material impact of these changes
on the group's accounting policies.
40
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(t) Adoption of new and revised Accounting Standards (cont’d)
Amendments to Accounting Standards that are mandatorily effective for the current year (cont’d)
Other pronouncements adopted for the first time in the current period
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business
Amends AASB 3 Business Combinations to clarify the definition of a business, with the objective of assisting
entities to determine whether a transaction should be accounted for as a business combination or as an asset
acquisition.
The amendments:
(cid:127) Clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum,
an input and a substantive process that together significantly contribute to the ability to create outputs
(cid:127) Remove the assessment of whether market participants are capable of replacing any missing inputs or
processes and continuing to produce outputs;
(cid:127) Add guidance and illustrative examples to help entities assess whether a substantive process has been
acquired;
(cid:127) Narrow the definitions of a business and of outputs by focusing on goods and services provided to customers
and by removing the reference to an ability to reduce costs;
(cid:127) Add an optional concentration test that permits a simplified assessment of whether an acquired set of activities
and assets is not a business.
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material
These amendments are intended to address concerns that the wording in the definition of ‘material’ was different
in the Conceptual Framework for Financial Reporting, AASB 101 Presentation of Financial Statements and
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.
The amendments address these concerns by:
(cid:127) Replacing the term ‘could influence’ with ‘could reasonably be expected to influence’;
(cid:127) Including the concept of ‘obscuring information’ alongside the concepts of ‘omitting’ and ‘misstating’ information
in the definition of material;
(cid:127) Clarifying that the users to which the definition refers are the primary users of general purpose financial
statements referred to in the Conceptual Framework;
(cid:127) Aligning the definition of material across Standards and other publications.
AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual
Framework
Makes amendments to various Australian Accounting Standards and other pronouncements to support the issue
of the revised Conceptual Framework for Financial Reporting. Some Australian Accounting Standards and other
pronouncements contain references to, or quotations from, the previous versions of the Conceptual Framework.
This Standard updates some of these references and quotations so they refer to the Conceptual Framework
issued by the AASB In June 2019, and also makes other amendments to clarify which version of the Conceptual
Framework is referred to in particular documents.
41
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(t) Adoption of new and revised Accounting Standards (cont’d)
Amendments to Accounting Standards that are mandatorily effective for the current year (cont’d)
Other pronouncements adopted for the first time in the current period (cont’d)
AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform
The amendments affect entities that apply the hedge accounting requirements of AASB 9 Financial Instruments
or AASB 139 Financial Instruments: Recognition and Measurement to hedging relationships directly affected by
the interest rate benchmark reform. The amendments would mandatorily apply to all hedging relationships that
are directly affected by the interest rate benchmark reform and modify specific hedge accounting requirements,
so that entities would apply those hedge accounting requirements assuming that the interest rate benchmark is
not altered as a result of the interest rate benchmark reform.
AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS
Standards Not Yet Issued in Australia
Amends AASB 1054 Australian Additional Disclosures to add a requirement for entities that intend to be
compliant with IFRS standards to disclose the information required by AASB 108 Accounting Policies, Changes
in Accounting Estimates and Errors (specifically paragraphs 30 and 31) for the potential effect of each IFRS
pronouncement that has not yet been issued by the AASB.
42
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2. Significant accounting policies (cont’d)
(t) Adoption of new and revised Accounting Standards (cont’d)
Standards and Interpretations in issue not yet effective
At the date of authorisation of the financial statements, the Standards and Interpretations that were issued but
not yet effective are listed below:
Standard/Interpretation
AASB 2014-10 Amendments to Australian Accounting
Standards – Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture, AASB 2015-10
Amendments to Australian Accounting Standards – Effective
Date of Amendments to AASB 10 and AASB 128 and AASB
2017-5 Amendments to Australian Accounting Standards –
Effective Date of Amendments to AASB 10 and AASB 128
and Editorial Corrections
AASB 2020-1 Amendments
to Australian Accounting
Standards – Classification of Liabilities as Current or Non-
current and AASB 2020-6 Amendments to Australian
Accounting Standards – Classification of Liabilities as Current
or Non-current – Deferral of Effective Date
AASB 2020-3 Amendments
to Australian Accounting
Standards – Annual Improvements 2018-2020 and Other
Amendments
AASB 2020-4 Amendments
to Australian Accounting
Standards – Covid-19-Related Rent Concessions and AASB
2021-3 Amendments to Australian Accounting Standards –
Covid-19-Related Rent Concessions beyond 30 June 2021
AASB 2020-8 Amendments
Standards
Interest
–
Reform – Phase 2
to Australian Accounting
Benchmark
Rate
AASB 2021-2 Amendments
Standards
Policies and Definition of Accounting Estimates
to Australian Accounting
Accounting
Disclosure
of
–
Effective for annual
reporting periods
beginning on or after
Expected to be initially
applied in the financial
year ending
1 July 2022
30 June 2023
1 July 2023
30 June 2024
1 July 2022
30 June 2023
1 June 2020
30 June 2021
1 July 2021
30 June 2022
1 July 2023
30 June 2024
Pronouncements issued by the IASB or IFRS Interpretations Committee where an equivalent
pronouncement has not been issued by the AASB
The table below outlines pronouncements made by the IASB or IFRS Interpretations Committee, where an
equivalent pronouncement has not yet been made by the AASB at the date of this publication but is expected
to be issued in due course.
Standard/Interpretation
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction - Amendments to IAS 12
Effective for annual
reporting periods
beginning on or after
Expected to be initially
applied in the financial
year ending
1 July 2023
30 June 2024
43
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
3. Revenue and other income
(a) Revenue
Sale of shares
Sundry income
(b) Other income
Government grants
JobKeeper subsidy (i)
Government grant - cash boost (ii)
2021
$
279,295
-
279,295
103,500
-
103,500
2020
$
6,004
6,004
50,250
100,000
150,250
(i) On 30 March 2020, the Australian Federal Government announced the “JobKeeper” program, which broadly
comprises a wage subsidy to help businesses keep staff employed during the COVID-19 pandemic. During the
year ended 30 June 2021, the group was eligible to receive JobKeeper subsidy for its employees.
(ii) The group received nil ‘cash flow boost’ during the year (2020: $100,000) as a waiver of the whole, or part,
of the PAYG liability due to the impact of COVID-19 on the group’s operational cash flow.
2021
$
2020
$
4. Loss for the year
Loss for the year has been arrived at after (charging)/crediting the
following items of income and expense:
Other gains/(losses):
Net unrealised foreign exchange gain/(loss)
Finance income:
Interest income
Employee benefits expense:
Wages and salaries
Annual leave expense
Long service leave expense
Post-employment benefits expense
Other employee benefits expense
Depreciation expense:
Depreciation expense - property, plant and equipment
Depreciation expense - right-of-use assets
Finance costs:
Interest - lease liabilities
Interest - other
5. Income tax
Income tax benefit
Tax benefit comprises of:
Current tax benefit
Deferred tax benefit
51,626
51,626
18
(419,177)
(17,913)
(6,471)
(51,939)
(529)
(496,029)
(9,135)
(13,692)
(22,827)
(1,470)
-
(1,470)
-
-
-
(4,900)
(4,900)
10,894
-
-
-
(39,868)
(302,224)
(342,092)
(10,992)
(13,123)
(24,115)
(1,706)
(1,047)
(2,753)
-
-
-
44
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2021
$
2020
$
5. Income tax (cont’d)
The prima facie income tax expense in the consolidated statement of profit
or loss and other comprehensive income is as follows:
Loss before income tax from continuing operations
(1,311,928)
(1,285,601)
Income tax benefit calculated at 26.0% (2020: 27.5%)
Effect of unrecognised and unused tax losses and deductible temporary
differences
Income tax benefit attributable to loss
(341,101)
(353,540)
341,101
-
353,540
-
The income tax benefit attributable to the loss is not recognised as the group considers it is not 100% probable
that future taxable amounts will be available to utilise the losses.
6. Loss per share
Basic loss per share
From continuing operations
Diluted loss per share
From continuing operations
2021
$
2020
$
(0.0122)
(0.0122)
(0.0153)
(0.0153)
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted loss
per share are as follows:
2021
$
2020
$
Loss used in the calculation of basic and diluted loss per share
(1,311,928)
(1,285,601)
Weighted average number of ordinary shares for the purposes of basic
and diluted loss per share (a)
107,128,793
84,254,485
(a) During the year ended 30 June 2021 the potential ordinary shares associated with the employee share
option plan as set out in Note 2 are anti-dilutive and are therefore excluded from the weighted average number
of ordinary shares for the purposes of diluted earnings per share. The potential ordinary shares associated with
the Performance Rights, as set out in Note 16 are anti-dilutive, and have not been included in the weighted
average number of ordinary shares for the purposes of diluted earnings per share.
7. Trade and other receivables
Current
Other receivables
Goods and Services Tax receivable
2021
$
232,005
106,245
338,250
2020
$
87,654
116,658
204,312
The group has considered the impact of COVID-19 on expected credit losses (ECL) for other receivables and
note there is no material impact.
45
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
8. Other assets
Current
Prepayments
Rental security deposits
Non-current
Rental security deposit
9. Property, plant and equipment
2021
$
16,489
-
16,489
2020
$
-
30,181
30,181
11,442
10,442
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current financial year:
2021
At cost
Balance at 1 July 2020
Additions
Balance at 30 June 2021
Accumulated depreciation
Balance at 1 July 2020
Depreciation expense
Balance at 30 June 2021
Plant and
equipment
$
Website
development
$
Computer
hardware
$
Motor
vehicles
$
Total
$
2,973
1,727
4,700
(2,144)
(372)
(2,516)
15,000
-
15,000
(7,969)
(1,758)
(9,727)
5,662
-
5,662
(1,906)
(1,252)
(3,158)
30,560
-
30,560
54,195
1,727
55,922
(7,548)
(5,753)
(13,301)
(19,567)
(9,135)
(28,702)
Net book value 30 June 2021
2,184
5,273
2,504
17,259
27,220
2020
At cost
Balance at 1 July 2019
Additions
Balance at 30 June 2020
Accumulated depreciation
Balance at 1 July 2019
Depreciation expense
Balance at 30 June 2020
Plant and
equipment
$
Website
development
$
Computer
hardware
$
Motor
vehicles
$
Total
$
2,973
-
2,973
(2,004)
(140)
(2,144)
15,000
-
15,000
(5,816)
(2,153)
(7,969)
5,662
-
5,662
(253)
(1,653)
(1,906)
30,560
-
30,560
(502)
(7,046)
(7,548)
54,195
-
54,195
(8,575)
(10,992)
(19,567)
Net book value 30 June 2020
829
7,031
3,756
23,012
34,628
46
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
10. Right-of-use assets
At 30 June
Cost
Accumulated depreciation
11. Intangible assets
Non-current
Goodwill on acquisition of Finny Limited (i)
2021
$
58,660
(6,518)
52,142
2020
$
34,143
(13,123)
21,020
2,735,758
2,736,145
The group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might
be impaired.
(i) The decrease in goodwill of $387 is with respect to the impairment.
12. Capitalised exploration and development expenditure
Non-current
Balance as at 1 July
Expenditure during the year
Impairment/write-offs
Balance as at 30 June
2021
$
2020
$
8,163,919
576,502
(569,466)
8,170,955
5,579,474
2,987,685
(403,240)
8,163,919
The recoverability of the exploration expenditure capitalised by the group during the year ending 30 June 2021,
is dependent on successful development and commercial exploitation, or alternatively, on the sale of the
respective areas of interest.
During the current year, an impairment of $569,466 was recorded with respect to tenements in Papua New
Guinea that were relinquished.
47
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
13. Trade and other payables
Current
Unsecured – at amortised cost
Trade payables (i)
Share subscriptions
Sundry payables and accrued expenses
(i) Trade payables are non-interest bearing and are normally settled on 30 days end of month terms.
2021
$
2020
$
-
-
131,583
131,583
2021
$
34,773
11,039
85,767
50,000
520,044
655,811
2020
$
21,428
-
18,673
13,371
33,715
8,177
14. Provisions
Current
Employee benefits
Non-current
Employee benefits
15. Lease liabilities
Current
Lease liabilities
Non-current
Lease liabilities
The total cash outflow for repayment of leases amount to $13,974. The operating lease relates to lease of the
company’s office space at Pyrmont, NSW, for a term of 12 months, with an expiry date of 17 February 2022. At
the end of the lease term, there is an option to renew the lease for a further two years.
16. Issued capital
111,865,197 fully paid ordinary shares (2020: 87,323,197)
16,158,630
13,736,883
2021
$
2020
$
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Movements in issued capital
2021
No of
shares
$
2020
No of
shares
$
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the year
87,323,197
24,542,000
111,865,197
13,736,883
2,421,747
16,158,630
81,508,197 12,614,548
1,122,335
87,323,197 13,736,883
5,815,000
During the year, the company issued the following additional shares:
4,766,667 shares at a value of $0.10 from a share placement, raising $468,494;
18,672,000 shares at a value of $0.10 from share placement, raising $1,899,200;
1,103,333 shares at a value of $0.10, raising $103,333;
·
·
·
· Share issue cost during the year amount to $49,280.
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
48
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
17. Reserves
Share-based payments (i)
Opening balance
Options issued
Options expired
Closing balance
Foreign currency translation reserve
Opening balance
Foreign currency translation
Closing balance
2021
$
2020
$
148,755
57,722
(42,000)
164,477
69,262
(69,262)
-
117,600
106,755
(75,600)
148,755
72,062
(2,800)
69,262
Total reserves
164,477
218,017
(i) The share-based payments reserve records the value of options issued to directors, employees and
consultants as part of the remuneration for their services.
18. Accumulated losses
Balance at the beginning of the year
Options expired
Loss for the year
Balance at the end of the year
19. Commitments for expenditure
2021
$
2020
$
(3,385,138)
42,000
(1,311,928)
(4,655,066)
2021
$
(2,175,137)
75,600
(1,285,601)
(3,385,138)
2020
$
Tenement expenditure (i)
1,000,000
2,100,000
(i) In order to maintain the group’s tenements in good standing with the relevant mining authorities, the group
will be required to incur exploration expenditure under the terms of each exploration licence. The indicative
minimum exploration expenditure requirement for FY22 is approximately $1.0 million, of which approximately
$0.7 million is covered by partners under JV agreements. This is a pro-rata estimate, based on annualised
licence terms, converted to AUD at current exchange rates. Applications have been submitted to relevant
authorities to reduce these amounts in FY22 due to COVID-19 restrictions.
20. Contingent liabilities and contingent assets
In the opinion of the directors, the group did not have any contingent liabilities or contingent assets at 30 June
2021 (2020: nil).
49
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
21. Cash and cash equivalents
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on hand
and in banks. Cash and cash equivalents at the end of the reporting period as shown in the consolidated
statement of cash flows can be reconciled to the related items in the consolidated statement of financial position
as follows:
(a) Reconciliation of cash
Cash at bank
2021
$
2020
$
545,568
67,902
(b) Reconciliation of loss for the year to net cash flows from operating activities
Loss for the year
Depreciation expense
Net foreign exchange (gain)/loss
Impairment of capitalised exploration expenditure
Share-based payments
Lease liability interest expense
Movements in working capital:
Increase in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade and other payables
Increase in provisions
Net cash flows used in operating activities
22. Auditors' remuneration
Audit of the financial statements
Other auditors (subsidiary companies)
2021
$
(1,311,928)
22,827
(51,626)
569,466
57,722
-
(133,938)
(16,489)
24,863
24,384
(814,719)
2021
$
40,500
7,812
48,312
2020
$
(1,285,601)
24,115
4,900
403,240
106,755
1,706
(103,997)
4,718
(41,189)
21,428
(863,925)
2020
$
40,000
-
40,000
The auditor of Canterbury Resources Limited is BDJ Partners.
BDJ Partners did not provide non-audit services to the group during the year ended 30 June 2021 (2020: nil).
50
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
23. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries
in accordance with the accounting policy described in note 2:
Name of entity
Canterbury Exploration Pty Ltd
Capella Ventures Pty Ltd (i)
Capella Vanuatu Ltd (i)
Canterbury Resources (PNG) Ltd
Finny Limited
Country of
incorporation
Ownership
interest
Australia
Australia
Vanuatu
Papua New Guinea
Papua New Guinea
2021
%
100
-
-
100
100
2020
%
100
100
100
100
100
(i) During the year, the group wound up its subsidiary Capella Ventures Pty Ltd. Capella Vanuatu Ltd was sold to
a NZ registered company, Coromandel Gold Limited on 30 June 2021.
24. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the financial information
shown below, are the same as those applied in the consolidated financial statements. Refer to note 2 for a
summary of the significant accounting policies relating to the group.
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
2021
$
783,590
11,764,778
12,548,368
180,313
44,754
225,067
16,158,630
164,477
(3,999,806)
12,323,301
2020
$
135,571
10,870,844
11,006,415
179,750
8,177
187,927
13,736,883
148,755
(3,067,150)
10,818,488
Total comprehensive loss
(805,220)
(1,197,443)
Contingent liabilities
The parent entity had no contingent liabilities at 30 June 2021 (2020: nil).
Capital commitments - property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (2020: nil).
Guarantees
The parent entity has not entered into any guarantees, in the current or previous financial year, with respect to
the debts of its subsidiaries.
51
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
25. Key management personnel disclosures
Directors
The following persons were directors of the group during the financial year:
JED Anderson
GA Craighead
RE Moller
ME Erceg
R Watts
Key management personnel compensation
Remuneration of key management personnel
2021
Directors
J E D Anderson
GA Craighead
R Watts
M Erceg
R E Moller
2020
Directors
R E Moller
J E D Anderson
GA Craighead
GN Fallon
M Erceg
R Watts
Short-term
employee benefits
Post-employment
benefits
Share-based
payments
Salary and
directors’ fees
$
Consulting
fees
$
Superannuation
$
68,493
273,972
59,360
114,155
65,000
580,980
-
-
-
148,800
25,260
174,060
6,507
26,028
5,640
10,845
-
49,020
Options
$
11,544
11,544
11,544
11,544
11,544
57,720
Short-term
employee benefits
Salary and
directors’ fees
$
65,000
68,493
262,557
44,520
-
22,687
463,257
Consulting
fees
$
34,140
-
17,500
-
165,000
-
216,640
Post-employment
benefits
Superannuation
Share-based
payments
$
-
6,507
24,925
4,229
-
2,155
37,816
Options
$
13,344
13,344
13,344
13,344
13,344
-
66,720
No performance-based remuneration was paid in 2021 (2020: nil).
26. Related party transactions
(a) Parent entity
The parent entity within the group is Canterbury Resources Limited.
(b) Key management personnel
Disclosures relating to key management personnel are set out in note 25.
(c) Subsidiaries
Interests in subsidiaries are set out in note 23.
Total
$
86,544
311,544
76,544
285,344
101,804
861,780
Total
$
112,484
88,344
318,326
62,093
178,344
24,842
784,433
52
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
26. Related party transactions (cont’d)
(d) Shared-based payments
Shared-based payments are set out in note 28.
(e) Joint operation
The consolidated entity has recognised its share of jointly held assets, liabilities, revenues and expenses of a
joint operation. These have been incorporated in the consolidated financial statements under the appropriate
classifications. The joint operation is material to the group.
Name of entity
Country of
incorporation
JV Ownership
interest
Finny Limited (i)
Papua New Guinea
2021
%
40%
2020
%
40%
(i) Finny Limited has a farm-in and Joint Venture (JV) agreement with Rio Tinto. Where Rio Tinto has earnt 60%
Joint Venture interest by sole-funding $5million of exploration, and is currently increasing to 80% by sole-funding
the next $12.5 million, plus meeting various technical milestones.
27. Operating segments
Identification of three reportable operating segments
The Chief Operating Decision Maker (CODM) has restructured the reporting structures into 3 reportable
segments representing business operating segments for management, reporting and allocation of resources
purposes. Operating segments have been identified based on financial information that is regularly reviewed by
the CODM.
The group aggregates two or more operating segments into a single reportable operating segment when the
group has assessed and determined the aggregated operating segments share similar economic and
geographical characteristics.
The group has the following reportable segments:
● Papua New Guinea
● Australia
● Vanuatu (2020)
From 2021-22 Vanuatu is not a reportable segment.
The performance of each segment forms the basis of all reporting to the CODM. The steering committee primarily
uses Earnings Before Interest and Tax (EBIT) to assess the performance of a segment. It will also review the
assets and working capital of each segment on a regular basis. The accounting policies adopted for internal
reporting to the CODM are consistent with those adopted in the financial statements.
In reporting the EBIT to the steering committee, results for the normal operations of the segment separately
show reporting of non-recurring events.
53
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
27. Operating segments (cont’d)
Accounting policy for operating segments
Operating segments are presented using the 'management approach', where the information presented is on
the same basis as the internal reports provided to the CODM. The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
2021
Revenue
Other revenue
Employee benefits expense
Corporate costs
Depreciation and amortisation expense
Impairment of capitalised expenditure
Share-based payment expense
EBIT
Finance income
Finance expense
Loss before income tax
Income tax
Loss for the year
Assets
Segment assets (a)
Total assets
Liabilities
Segment liabilities
Total liabilities
(a) Segment assets
Papua New
Guinea
$
Australia
$
Total
$
-
-
-
(1,467)
-
(472,814)
-
(459,250)
-
-
(459,250)
-
(459,250)
-
103,500
(496,029)
(316,712)
(22,827)
(96,652)
(57,722)
(851,226)
18
(1,470)
(852,678)
-
(852,678)
-
103,500
(496,029)
(318,179)
(22,827)
(569,466)
(57,722)
(1,310,476)
18
(1,470)
(1,311,928)
-
(1,311,928)
5,966,334
5,966,334
5,931,490
5,931,490
11,897,824
11,897,824
-
-
225,068
225,068
225,068
225,068
Segment assets are measured in the same way as in the financial statements. These assets are allocated based
on the operations of the segment and the physical location of the asset.
Papua New
Guinea
$
Australia
$
Total
$
Segment assets
Additions to non-current assets
5,966,334
(64,921)
5,931,490
159,169
11,897,824
94,248
54
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
2020
Revenue
Other revenue
Debt forgiveness
Employee benefits expense
Corporate costs
Depreciation and amortisation expense
Impairment of capitalised expenditure
Share-based payment expense
EBIT
Finance income
Finance expense
Loss before income tax
Income tax
Loss for the year
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
(a) Segment assets
Vanuatu
$
Papua New
Guinea
$
Australia
$
Total
$
849
-
(343,260)
-
-
-
403,240
-
(67,762)
-
-
(67,762)
-
(67,762)
5,155
-
-
-
3,113
-
-
-
-
150,250
343,260
342,092
304,016
24,115
-
106,755
6,004
150,250
-
342,092
307,129
24,115
403,240
106,755
(19,672)
-
-
(19,672)
-
(19,672)
(1,206,308)
10,894
(2,753)
(1,198,167)
-
(1,198,167)
(1,293,742)
10,894
(2,753)
(1,285,601)
-
(1,285,601)
30,465
30,465
6,075,998
6,075,998
5,162,086
5,162,086
11,268,549
11,268,549
-
-
419,857
419,857
278,930
278,930
698,787
698,787
Segment assets are measured in the same way as in the consolidated financial statements. These assets are
allocated based on the operations of the segment and the physical location of the asset.
Vanuatu
$
Papua New
Guinea
$
Australia
$
Total
$
Segment assets
Additions to non-current assets
30,465
(272,501)
6,075,998
1,214,628
5,162,086
1,711,612
11,268,549
2,653,739
55
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
28. Employee share option plan
The group operates an employee share option plan for employees and contractors of the group. In accordance
with the provisions of the plan, employees may be granted options to purchase parcels of ordinary shares at
specified exercise prices.
Each employee share option converts into one ordinary share of the group on exercise. No amounts are paid
or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights.
Options may be exercised at any time from the date of vesting to the date of their expiry.
The options granted expire on their expiry date, or one month after the resignation of the employee, whichever
is the earlier.
Terms and conditions of share-based payment arrangements affecting remuneration of key management
personnel in the current financial year or future financial years:
Options Series
Grant date
Exercise price
Expiry date
Vesting date
CBY06
CBY07
28/11/2019
23/09/2020
$0.35
$0.25
30/06/2022
30/06/2023
28/11/2019
23/09/2020
These options were valued based on the Black-Scholes option pricing model, the value of the options was
assessed using the annual volatility of returns on the shares over a period of time.
The table below summarises the total options movement for the year, including ESOP and non-ESOP:
Status*
ESOP (unlisted)
At beginning of period
Granted during period
Forfeited during period
At end of period
2,200,000
1,200,000
(1,000,000)
2,400,000
Non-ESOP
(unlisted)
5,000,000
-
(5,000,000)
-
Total
7,200,000
1,200,000
(6,000,000)
2,400,000
*Irrespective of any restrictions applicable to those options under ASX requirements.
The options outstanding at 30 June 2021 had a weighted average exercise price of $0.35 and $0.25, and a
weighted average remaining contractual life of 2.6 years and 2.77 years respectively. In 2021, options were
granted on 23 September 2020. The aggregate of the estimated fair values of the options granted on this date
is $57,722. No options were exercised during the period.
The inputs into the Black-Scholes model are as follows:
Weighted average share price
Weighted average exercise price
Expected volatility
Expected life
Risk-free rate
2021
$
0.145
0.25
107.75%
2.77 years
1.086%
2020
$
0.22
0.35
86.89%
2.6 years
0.29%
Expected volatility was determined by calculating the historical volatility of the group’s share price over the
previous 1.5 years. The expected life used in the model has been adjusted, based on management’s best
estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.
56
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
29. Financial instruments
Capital management
The group manages its capital to ensure that entities in the group will be able to continue as going concerns
while maximising the return to stakeholders through the optimisation of its equity balance.
In managing its capital, the group's primary objective is to ensure its continued ability to maintain its operations
and provide a platform to enable a return for its equity shareholders to be made when successful commercial
operations are achieved. In order to achieve this objective, the group seeks to maximise its fund raising to
provide sufficient funding to enable the group to meet its working capital and strategic investment needs. In
making decisions to adjust its capital structure to achieve these aims, either through new share issues, or
reduction of debt, the group considers not only its short-term position but also its long-term operational and
strategic objectives.
The group’s overall strategy remains unchanged from 2020.
The capital structure of the group consists of cash and bank balances (note 21) and equity of the group
(comprising issued capital, reserves and accumulated losses as detailed in notes 16 to 18).
The group is not subject to any externally imposed capital requirements.
(a) Market risk
The group‘s activities expose it primarily to the financial risks of changes in interest rates and foreign currency.
There has been no change to the group‘s exposure to market risks or the manner in which these risks are
managed and measured.
(i) Interest rate risk management
The group‘s exposure to interest rate risk and the effective weighted average interest rate for classes of financial
assets and financial liabilities is set out below:
2021
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Total liabilities
Weighted
average
interest rate
%
Floating
interest
amount
$
Fixed
maturing in
1 yr to 5 yrs
$
Non-
interest
bearing
$
Total
$
0.00
0.00
0.00
-
-
-
-
-
-
-
-
-
-
545,568
338,250
883,818
545,568
338,250
883,818
131,583
131,583
131,583
131,583
57
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
29. Financial instruments (cont’d)
Capital management (cont’d)
2020
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Total liabilities
Weighted
average
interest rate
%
Floating
interest
amount
$
Fixed
maturing in
1 yr to 5 yrs
$
Non-
interest
bearing
$
Total
$
0.00
0.00
0.00
-
-
-
-
-
-
-
-
-
-
67,902
204,312
272,214
67,902
204,312
272,214
655,811
655,811
655,811
655,811
(i) Interest rate risk management (cont’d)
Sensitivity analysis
The following sensitivity analysis is based on the interest rate risk exposure in existence at the balance sheet
date. The analysis assumes all other variables remain constant.
2021
Cash at bank
Tax charge of 26.0%
Post tax profit increase/(decrease)
2020
Cash at bank
Tax charge of 27.5%
Post tax profit increase/(decrease)
Carrying
amount
$
545,568
+0.5% interest
rate
profit & loss
$
-0.5% interest
rate
profit & loss
$
2,728
(709)
2,019
(2,728)
709
(2,019)
Carrying
amount
$
67,902
+0.5% interest
rate
profit & loss
$
-0.5% interest
rate
profit & loss
$
340
(94)
246
(340)
94
(246)
58
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
29. Financial instruments (cont’d)
Capital management (cont’d)
(a) Market risk (cont’d)
(ii) Currency risk
The group's policy is, where possible, to allow group entities to settle liabilities denominated in their functional
currency with the cash generated from their own operations in that currency. Where group entities have liabilities
denominated in a currency other than their functional currency (and have insufficient reserves of that currency
to settle them) cash already denominated in that currency will, where possible, be transferred from elsewhere
within the group.
The group's exposure to foreign currency risk, which arises out of its investments in Vanuatu and Papua New
Guinea, is as follows:
Cash at bank
Net exposure
Sensitivity analysis
2021
Cash at bank
Tax charge of 26.0%
Post tax profit increase/(decrease)
2020
Cash at bank
Tax charge of 27.5%
Post tax profit increase/(decrease)
2021
$
22,057
22,057
2020
$
27,936
27,936
Carrying
amount
AUD$
22,057
+10%
KNA/AUD
profit & loss
AUD$
-10%
KNA/AUD
profit & loss
AUD$
2,206
(574)
1,632
(2,206)
574
(1,632)
Carrying
amount
AUD$
27,936
+10%
VUV&KNA/AUD
profit & loss
AUD$
-10%
VUV&KNA/AUD
profit & loss
AUD$
2,794
(768)
2,026
(2,794)
768
(2,026)
59
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
29. Financial instruments (cont’d)
Capital management (cont’d)
(b) Credit risk
Credit risk arises principally from the group's trade and other receivables. It is the risk that the counterpart fails
to discharge its obligation in respect of the instrument. Ongoing credit evaluation is performed on the financial
condition of trade and other receivables. The group does not have significant concentration of credit risk with
respect to any single counter party or company of counter parties. The group applies the AASB 9 simplified
approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables. The group has considered the impact of COVID-19 on expected credit losses (ECL) for receivables
and note there is no material impact.
In determining the recoverability of a trade receivable, the local management considers any change in the credit
quality of these financial assets from the date credit was granted up to the reporting date. The directors have
assessed for any expected credit losses under AASB 9 and believe that there is no further credit provision
required. Management does not expect any material loss from non-performance by counterparties on credit
granted during the financial year under review that has not been provided for.
(c) Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board, which has established an appropriate
liquidity risk management framework for the management of the group’s short medium and long-term funding
and liquidity management requirements. The group manages liquidity risk by maintaining a reputable credit risk
profile, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows.
The group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected
requirements for a period of at least 45 days. The Board receives cash flow projections in a monthly basis as
well as information regarding cash balances. At the balance sheet date, these projections indicated that the
group expected to have sufficient liquid resources to meet its obligations under all reasonably expected
circumstances. The group does not have any financing facilities in place and does not have a bank overdraft.
Maturity analysis of financial assets and liability based on contractual obligations
The risk implied from the values shown in the table below, reflects a balanced view of cash inflows and outflows.
Trade and other payables mainly originate from the financing of assets used in ongoing operations such as,
plant, equipment and investments in working capital (e.g. trade receivables). These assets are considered in
the group's overall liquidity risk.
2021
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Lease liabilities
Total liabilities
Carrying
amount
$
545,568
338,250
883,818
131,583
52,388
183,971
Contractual cash flows
6-12
months
$
< 6
months
$
> 12
months
$
545,568
338,250
883,818
131,583
-
131,583
-
-
-
-
-
-
-
18,673
18,673
-
33,715
33,715
Net maturity
699,847
752,235
(18,673)
(33,715)
On
demand
$
-
-
-
-
-
-
-
60
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
29. Financial instruments (cont’d)
Capital management (cont’d)
(c) Liquidity risk (cont’d)
2020
Carrying
amount
$
Contractual cash flows
6-12
months
$
< 6
months
$
> 12
months
$
Financial assets
Cash
Trade and other receivables
Total assets
Financial liabilities
Trade and other payables
Lease liabilities
Total liabilities
67,902
204,312
272,214
67,902
204,312
272,214
-
-
-
-
-
-
655,811
21,548
677,359
655,811
-
655,811
-
13,371
13,371
-
8,177
8,177
Net maturity
(405,145)
(383,597)
(13,371)
(8,177)
On
demand
$
-
-
-
-
-
-
The directors consider that the carrying amounts of financial assets and financial liabilities recognised in the
consolidated financial statements approximate their fair values.
30. Fair value measurements
There are no financial assets or financial liabilities that are measured at fair value at the end of the reporting
period.
The were no transfers between level 1,2, and 3 for recurring fair value measurements during the year.
The carrying amount of other financial assets or financial liabilities recorded in the consolidated financial
statements approximate their fair values.
31. Other information
In accordance with Listing Rule 4.10.19, the group has used the cash and assets in a form readily convertible to
cash that it had at the time of admission in a way consistent with its business objectives.
61
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Notes to the consolidated financial statements
for the year ended 30 June 2021
32. Events after the reporting period
Subsequent to year end, the following events have arisen:
Canterbury entered an agreement with African Energy Resources (AFR), providing AFR with exclusive rights in
relation to the Briggs Copper Project. During an initial option period, AFR will sole fund $750,000 of exploration
activity to earn the right to enter a staged earn-in phase. During the earn-in phase, AFR has the right to earn up
to a 70% joint venture interest in the Briggs Copper Project through staged expenditure totalling up to $15.25
million over 9 years.
The company issued 8,333,333 shares via a Private Placement to African Energy Resources priced at $0.12
per new share, raising approximately $1,000,000. The company issued 3 million options to African Energy
Resources with a $0.24 conversion price and a 31 December 2023 expiry date.
Other than as noted above, there have been no other events subsequent to 30 June 2021 that are likely, in the
director’s opinion, to affect significantly the activities or the state of affairs of the group in future financial years.
62
Canterbury
ABN 59152189 369
Resources
Limited
and Controlled
Entities
Directors'
declaration
The directors
declare that:
(a)in the directors'
opinion,
debts as and when they become due and payable;
there are reasonable
grounds
to believe
that the company will be able to pay its
(b)in the directors'
Standards,
Reporting
as stated
in note 2 to the financial
statements
statements;
opinion,
the attached
financial
are in compliance
with International
Financial
(c)in the directors'
Corporations
position
financial
opinion,
Act 2001, including
and performance
compliance
of the group, and
the attached
financial
statements
with Accounting Standards
and notes thereto
with the
and giving a true and fair view of the
are in accordance
(d)the directors have
been given the declarations
required
Act 2001.
by s.295A of the Corporations
Signed in accordance
with a resolution
of the directors
made pursuant
to s.295(5)
Act 2001.
of the Corporations
On behalf
of the Directors
Director .Q. ...............
...............
......
........
.
Grant Crai,ghead
Sydney,
2021
29 September
63
Independent Auditor’s Report
To the members of Canterbury Resources Limited,
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Canterbury Resources Limited (the
company and its subsidiaries) (“the Group”), which comprises the consolidated statements
of financial position as at 30 June 2021, the consolidated statements of profit or loss and
other comprehensive income, the consolidated statements of changes in equity and the
consolidated statements of cash flows for the year then ended, notes comprising a
summary of significant accounting policies and other explanatory information, and the
directors’ declaration.
In our opinion the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the group’s financial position as at 30 June 2021
and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations
Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are
in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
further described
We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of the Company, would be in the same terms if given
to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Phone
+61 2 9956 8500
Email
bdj@bdj.com.au
Office
Level 8, 124
Walker Street
North Sydney
NSW 2060
Postal
PO Box 1664,
North Sydney
NSW 2059
Liability limited by a
scheme approved
under Professional
Standards Legislation.
Please refer to the
website for our
standard terms of
engagement.
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
Intangible Assets and Capitalised Deferred Exploration and Evaluation Expenditure
$10.9 million
Refer to Notes 11 and 12
The consolidated entity owns the rights
to several exploration licenses in Papua
New Guinea and Queensland.
The intangible asset represents goodwill
on acquisition of Finny Limited,
predominantly relating to the exploration
licences held by that company.
Expenditure relating to these areas is
capitalised and carried forward to the
extent they are expected to be recovered
through the successful development of
the respective area or where activities in
the area have not yet reached a stage
that permits reasonable assessment of
the existence of economically
recoverable reserves.
This area is a key audit matter due to:
•
•
•
The significance of the balances;
The inherent uncertainty of the
recoverability of the amounts
involved; and
The substantial amount of audit work
performed.
Our audit procedures included amongst
others:
•
•
•
Assessing whether any facts or
circumstances exist that may
indicate impairment of the
capitalised assets;
Performing detailed testing of
source documents to ensure
capitalised expenditure was
allocated to the correct area of
interest;
Performing detailed testing of
source documents to ensure
expenditure was capitalised in
accordance with Australian
Accounting Standards; and
• Obtaining external confirmations to
ensure the exploration licences are
current and accurate.
Other Information
The directors are responsible for the other information. The other information comprises
the information included in the Group’s annual report for the year ended 30 June 2021 but
does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly
we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the financial report or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Directors' Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary
to enable the preparation of the financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of
the Group to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or has no realistic alternative but to
do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with the
Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We
also:
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether
due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report,
including the disclosures, and whether the financial report represents the underlying
transactions and events in a manner that achieves fair presentation.
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 significance in the audit of the financial report of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the directors' report for the year
ended 30 June 2021.
In our opinion, the Remuneration Report of Canterbury Resources Limited for the year
ended 30 June 2021 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
BDJ Partners
................................................
Anthony Dowell
Partner
30 September 2021
Canterbury Resources Limited and Controlled Entities
ABN 59 152 189 369
Shareholder information
Per ASX Listing Rule 4.10 (current at 31/08/2021)
1. Equity
Number of securities
Type
120,198,530
1,200,000
1,200,000
3,000,000
Fully paid ordinary shares - quoted
Unquoted options expiring on 30 June 2022 with an exercise price of $0.35 -
unrestricted
Unquoted options expiring on 30 June 2023 with an exercise price of $0.25 -
unrestricted
Unquoted options expiring on 31 December 2023 with an exercise price of $0.24 -
unrestricted
2. Substantial holders
Holder Name
African Energy Resources Ltd
Mr Duncan John Hardie
Gage Resources Pty Ltd
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