Annual Report
Cazaly Resources Limited
ABN 23 101 049 334
and
Controlled Entities
For the Year Ended
30 June 2021
CONTENTS
Cazaly Resources Limited Annual Report 2021
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
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CORPORATE DIRECTORY
Cazaly Resources Limited Annual Report 2021
EXECUTIVE DIRECTOR
Clive Jones
NON-EXECUTIVE DIRECTORS
Nathan McMahon
Terry Gardiner
CHIEF EXECUTIVE OFFICER
Tara French
COMPANY SECRETARY
Mike Robbins
PRINCIPAL & REGISTERED OFFICE
Level 3, 30 Richardson Street
WEST PERTH WA 6005
AUDITORS
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco WA 6008
SHARE REGISTRAR
Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: CAZ
BANKERS
National Australia Bank
100 St Georges Terrace
PERTH WA 6000
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
Your directors present their report, together with the financial statements of Cazaly Resources Limited (the
Company or Cazaly) and its controlled entities (the Group) for the financial year ended 30 June 2021.
1.
DIRECTORS AND COMPANY SECRETARY
Directors
The following directors have been in office since the start of the financial year to the date of this report
unless otherwise stated:
Nathan McMahon
Clive Jones
Terry Gardiner
Company Secretary
Mike Robbins
2.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was mineral exploration and evaluation
activities as well as seeking out further exploration, acquisition and joint venture opportunities.
There were no significant changes in the nature of the Group’s principal activities during the financial
period.
3.
OPERATING RESULTS & FINANCIAL POSITION
The Group’s profit after tax for the year was $716,577 (2020: $1,719,306). The Group’s net assets at the end
of the year are $17,310,152 (2020: $15,762,508).
Cash and cash equivalents as at year end were $9,593,690 (2020: $10,085,562).
Exploration expenditure, including tenement acquisitions, totalled $1,514,824 for the year (2020: $879,535).
The main expenditure was on the Ashburton, Halls Creek, the Hamersley JV and new project generation.
Exploration expenditure written off for the year was $544,414 (2020: $394,219). The main write offs related
to new project generation costs and expenditures relating to the various tenements and/or applications
that were relinquished (including two Ashburton tenements) during the financial year.
Net administration expenses and employee benefits for the year totalled $871,516 (2020: $1,639,659).
During the next financial year the Group intends to continue to further develop its current core projects
whilst also exploring new key commodity opportunities both in Australia and overseas.
4.
RISKS
There are specific risks associated with the activities of the Group and general risks which are largely
beyond the control of the Group and the Directors. The risks identified below, or other risk factors, may
have a material impact on the future financial performance of the Group and the market price of the
Company’s shares.
All mining ventures are exposed to risks and the Group continues to monitor risks associated with current
projects whilst also analysing the risks associated with any new mining opportunities. These risks may cover
such areas as:
•
Economic
General economic conditions, introduction of tax reform, new legislation, the general level of activity
within the resources industry, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and possible production activities, as
well as on its ability to fund those activities.
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
•
Climate Change
The Group recognises that physical and non-physical impacts of climate change may affect assets,
productivity, markets and the community. Risks related to the physical impacts of climate change include
the risks associated with increased severity of extreme weather events and chronic risks resulting from
longer-term changes in climate patterns. Non-physical risks and opportunities arise from a variety of
policy, legal, technological and market responses to the challenges posed by climate change and the
transition to a lower carbon world.
•
Title Risk
This may specifically cover mining tenure whereby country specific mining laws and legislation apply.
Any opportunity in Australia and overseas will be subject to particular risks associated with operating in
Australia or the respective foreign country. These risks may include economic, social or political instability
or change, hyperinflation, currency non-convertibility or instability and changes of law affecting foreign
ownership, exchange control, exploration licensing, export duties, investment into a foreign country and
repatriation of income or return of capital, environmental protection, land access and environmental
regulation, mine safety, labour relations as well as government control over mineral properties or
government regulations that require the employment of local staff or contractors or require other benefits
be provided to local residents.
•
Exploration Risk
The Directors of the Company realise that mineral exploration and development are high risk undertakings
due to the high level of inherent uncertainty. There can be no assurance that exploration of the Group’s
tenements, or of any other tenements that may be acquired by the Group in the future, will result in the
discovery of economic mineralisation. Even if economic mineralisation is discovered there is no guarantee
that it can be commercially exploited.
Any future exploration activities of the Group may be affected by a range of factors including geological
conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and
technical difficulties, industrial and environmental accidents, native title process, changing government
regulations and many other factors beyond the control of the Group.
•
Resource Estimates
The Group’s projects may contain JORC Code compliant resources. There is no guarantee that a JORC
Code compliant resource will be discovered on any of the Group’s other tenements. Resource estimates
are expressions of judgement based on knowledge, experience and industry practice. Estimates which
were valid when originally calculated may alter significantly when new information or techniques
become available. In addition, by their very nature, resource estimates are imprecise and depend to
some extent on interpretations which may prove to be inaccurate. As further information becomes
available through additional fieldwork and analysis the estimates are likely to change. This may result in
alterations to development and mining plans which may, in turn, adversely affect the Group’s operations
and the value of the Company’s listed shares.
•
Access Risks – Cultural Heritage and Native Title
The Group must comply with various country specific cultural heritage and native title legislation including
access agreements which require various commitments, such as base studies and compliant survey work,
to be undertaken ahead of the commencement of mining operations.
It is possible that some areas of those tenements may not be available for exploration due to cultural
heritage and native title legislation or invalid access agreements. The Group may need to obtain the
consent of the holders of such interests before commencing activities on affected areas of the
tenements. These consents may be delayed or may be given on conditions which are not satisfactory to
the Group.
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Cazaly Resources Limited Annual Report 2021
•
JV and Contractual Risk
The Group has and may have additional options where it can increase its holding in the selective assets
by achieving or undertaking selected milestones. The Group’s ability to achieve its objectives and earn
or maintain an interest in these projects is dependent upon it and the registered holders of those
tenements complying with their respective contractual obligations under joint venture agreements in
respect of those tenements, and the registered holders complying with the terms and conditions of the
tenements and any other relevant legislation.
•
Market conditions
Share market conditions may affect the value of the Company’s quoted securities regardless of the
Group’s operating performance. Share market conditions are affected by many factors such as:
introduction of tax reform or other new legislation;
interest rates and inflation rates;
- general economic outlook;
-
-
- changes in investor sentiment toward particular market sectors;
-
-
the demand for, and supply of, capital; and
terrorism or other hostilities.
The market price of securities can fall as well as rise and may be subject to varied and unpredictable
influences on the market for equities in general and resource exploration stocks in particular. Neither the
Group nor the Directors warrant the future performance of the Group or any return on an investment in
the Company.
•
Volatility in Global Credit and Investment Markets
Global credit, commodity and investment markets have recently experienced a high degree of
uncertainty and volatility. The factors which have led to this situation have been outside the control of
the Group and may continue for some time resulting in continued volatility and uncertainty in world stock
markets (including the ASX). This may impact the price at which any Listed Options and Shares trade
regardless of operating performance and affect the Company’s ability to raise additional equity and/or
debt to achieve its objectives, if required.
•
Commodity Price Volatility and Exchange Rates Risks
If the Group achieves success leading to mineral production, the revenue it will derive through the sale
of gold, iron ore, lithium or any other minerals it may discover exposes the potential income of the Group
to commodity price and exchange rate risks. Commodity prices fluctuate and are affected by many
factors beyond the control of the Group. Such factors include supply and demand fluctuations for
commodities and metals, technological advancements, forward selling activities and other macro-
economic factors such as inflation expectations, interest rates and general global economic conditions.
Furthermore, international prices of various commodities are denominated in United States dollars
whereas the income and expenditure of the Group are and will be taken into account in Australian
currency. This exposes the Group to the fluctuations and volatility of the rate of exchange between the
United States dollar and the Australian dollar as determined in international markets.
If the price of commodities declines this could have an adverse effect on the Group’s exploration,
development and possible production activities, and its ability to fund these activities, which may no
longer be profitable.
•
Environmental Risks
The operations and proposed activities of the Group are subject to each project’s jurisdiction, laws and
regulations concerning the environment. As with most exploration projects and mining operations, the
Group’s activities are expected to have an impact on the environment, particularly if advanced
exploration or mine development proceeds. Future legislation and regulations governing exploration,
development and possible production may impose significant environmental obligations on the Group.
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
The cost and complexity of complying with the applicable environmental laws and regulations may
prevent the Group from being able to develop potential economically viable mineral deposits. The Group
may require approval from the relevant authorities before it can undertake activities that are likely to
impact the environment. Failure to obtain such approvals or to obtain them on terms acceptable to the
Group may prevent the Group from undertaking its desired activities. The Group is unable to predict the
effect of additional environmental laws and regulations, which may be adopted in the future, including
whether any such laws or regulations would materially increase the Group’s cost of doing business or
affect its operations in any area.
There can be no assurances that new environmental laws, regulations or stricter enforcement policies,
once implemented, will not oblige the Group to incur significant expenses and undertake significant
investments in such respect which could have a material adverse effect on the Group’s business, financial
condition and results of operations.
•
Sovereign and Political Risk
The Group has an 80% interest in two uranium applications in the Czech Republic and a 95% interest in
the Kaoko Kobalt Project in Namibia.
The Group’s interests in the Czech Republic and Namibia are subject to the risks associated with operating
in a foreign country. These risks may include economic, social or political instability or change,
hyperinflation, currency non-convertibility or instability and changes of law affecting foreign ownership,
exchange control, exploration licensing, export duties, investment into a foreign country and repatriation
of income or return of capital, environmental protection, land access and environmental regulation, mine
safety, labour relations as well as government control over petroleum properties or government
regulations that require the employment of local staff or contractors or require other benefits be provided
to local residents.
The Group may also be hindered or prevented from enforcing its rights with respect to government
instrumentalities because of the doctrine of sovereign immunity.
Any future material adverse changes in government policies or legislation in the Czech Republic or
Namibia that affect ownership, development or mining activities, may affect the viability and profitability
of the Group.
The legal systems operating in the Czech Republic and Namibia are different to that in Australia and this
may result in risks such as:
- Different forms of legal redress in the courts whether in respect of a breach of law or regulation,
or in ownership dispute.
- A higher degree of discretion on the part of governmental agencies.
- Differences in political and administrative guidance on implementing applicable rules and
regulations including, in particular, as regards local taxation and property rights.
- Different attitudes of the judiciary and court.
- Difficult in enforcing judgments.
The commitment by local businesses, government officials and agencies and the judicial system to abide
by legal requirements and negotiated agreements may be more uncertain, creating particular concerns
with respect to licences and agreements for business. These may be susceptible to revision or
cancellation and legal redress may be uncertain or delayed. There can be no assurance that joint
ventures, licences, licence applications or other legal arrangements will not be adversely affected by the
actions of government authorities or others and the effectiveness and enforcement of such arrangements
cannot be assured. Further, there is no guarantee that any applications for tenements will be granted or
granted on conditions satisfactory to the Group.
The Group’s future operations in the Czech Republic and Namibia may be affected by changing political
conditions and changes to laws and petroleum and/or mining policies. The effects of these factors
cannot be accurately predicted and developments may impede the operation or development of a
project or even render it uneconomic.
The above risks are not exhaustive but are the minimum exposure areas observed by the Group.
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
5.
REVIEW OF OPERATIONS
Projects
Halls Creek (CAZ 100%)
The Project is situated 25km southwest of Halls Creek and covers part of the Halls Creek Mobile Zone which
is highly prospective for a range of commodities including copper, gold and nickel (Figure 1). The project
includes the Mount Angelo North Copper-Zinc deposit, an extensive zone of near surface oxidised Cu-Zn
mineralisation overlying massive Cu-Zn sulphide mineralisation. Previous results from work conducted by
Cazaly at Mount Angelo included 64m @ 2.7% Cu (1.1% Zn), 62m @ 2.4% Cu (2.8% Zn), 37m @ 2.6% Cu
(6.1% Zn), 16m @ 5.9% Cu, 18m @ 2.5% Cu.
The Project area also hosts a large lower grade copper deposit associated with a high level porphyritic
felsic intrusive at the Bommie prospect located 2.5km to the southwest of the Mount Angelo Copper-Zinc
deposit. The Bommie prospect has a large geochemical footprint with coincident Cu-Mo-Bi that extends
for 1.2km along strike and over 800m across strike. The porphyry system is host to significant mineralisation
with previously reported drill intercepts including 170m @ 0.4% Cu, 178m @ 0.3% Cu and 136m @ 0.3% Cu.
Higher-grade intercepts within the mineralised interval include 23m @ 1.0% Cu and 7m @ 1.3% Cu.
Figure 1. Location of Halls Creek Project
Drilling
The Company has recently completed eight (8) RC holes and one (1) diamond tail drillhole at the Mount
Angelo Cu-Zn prospect to confirm the continuity of shallow copper mineralisation and test potential
extensions to known sulphide mineralisation along strike and down dip. The drilling also tested two
adjacent geophysical targets including a strong down hole EM conductor and an IP chargeability
anomaly.
Intervals of various sulphides were logged in RC drill chips and diamond drill core. All drill samples were
sent for analysis for Au, Pt and Pd analysis by Fire Assay and a 47 element suite by four acid digest with
ICPMS finish. All analytical results are awaited.
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Cazaly Resources Limited Annual Report 2021
The drill program was co-funded via the Department of Mines, Industry Regulation and Safety (DMIRS)
Exploration Incentive Scheme (EIS), a State Government initiative that aims to encourage exploration in
Western Australia. The Company was successful in two applications for co-funding its drilling campaigns
at Mount Angelo North (M80/0247) and at the Mount Angelo Porphyry Bommie Prospect (E80/5307) for
up to a total of $300,000 subject to programme approvals and clearances.
Figure 2. Long Section of Mount Angelo North Cu-Zn deposits with recent drill pierce points and previous
intercepts
Geochemistry - Surface Sampling
A total of 283 soil samples were collected during the quarter on 200 or 100m x 80m grid across priority
targets within the project area. 283 samples plus 61 historical soil samples were submitted for analysis for
a 48 element suite using four acid digest with ICPMS finish. Analytical results were incorporated in the
geochemical dataset and contours were generated for each element. Anomalous Cu, Zn, Mo, Bi results
are shown on Figure 3 which highlights the location of the newly defined Noises prospect.
The extensive surface geochemical signature at the Bommie prospect provides further encouragement
for a large mineralised system. Drilling at the Bommie prospect will be conducted as soon as possible,
following appropriate heritage clearances.
Geophysics - Ground Magnetic Survey
A 34 line kilometres ground magnetic survey was completed across priority target areas to generate a
higher resolution dataset to assist with mapping the stratigraphy and mineralisation controls at the Mount
Angelo North Cu-Zn deposit. The higher resolution magnetics were found to correlate well with a BIF
marker horizon, and additional field mapping will be conducted to refine the BIF location along strike of
the Mount Angelo North deposit. A defining feature of the Mount Angelo deposit is the recognition of this
BIF unit which acts as a marker horizon within the VMS mineralisation. The unit represents seafloor
sedimentation and is typically observed in volcanogenic massive sulphide deposits. The unit is seen in
sporadic outcrops along strike for over 1km to the north of the deposit within felsic sediments which host
the deposit mineralisation. This area is largely covered by surficial alluvium and has never been drill tested.
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Cazaly Resources Limited Annual Report 2021
Figure 3. Location of the Bommie prospect and contoured Cu, Zn, Mo and Bi assay results for soil
samples collected across the project area
Further Work
The Company anticipates the Halls Creek Project has significant upside and is highly encouraged by work
completed to date. Further surface sampling and ground geophysics will be conducted in due course
following the appropriate approvals and clearances to identify and refine new drill ready targets.
Additional drilling will also be planned to test extensions to copper-zinc mineralisation at the Mount
Angelo North Copper-Zinc deposit and any EM targets identified in the upcoming ground survey at the
Bommie Prospect and over the more regional prospects including Noises. Drilling will also test a possible
recently identified skarn like target.
An EM survey was completed in the September’21 quarter to refine the HeliTEM chargeability anomaly
located immediately along strike of known mineralisation. Positive results were announced on 30
September 2021.
Ashburton Basin Project (CAZ 100%)
Cazaly holds the rights to a major land position covering more than 2,450km2 in the Ashburton Basin, in
the Pilbara region of Western Australia (Figure 4). The project covers major regional structures considered
to be highly prospective for major gold mineralisation and occurs in the region hosting Northern Star’s
(ASX:NST) Paulsen’s gold deposit and Kalamazoo’s (ASX:KZR) recently acquired Mount Olympus gold
deposit.
The Ashburton Basin forms the northern part of the Capricorn Orogen, a ~1000km long, 500km wide region
of variably deformed metamorphosed igneous and sedimentary rocks located between the Yilgarn and
Pilbara cratons.
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DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
Figure 4. Location of Ashburton Project relative to major gold deposits in the district
The Company applied for tenure within the region following the recognition of the presence of a major
deeply seated, crustal scale structure with the potential to host significant mineralisation, the Baring
Downs Fault (‘BDF’, figure 5). The BDF lies centrally within the Ashburton Basin which to date has had very
little modern exploration.
Figure 5: Regional geological setting interpreted from a Deep Seismic Traverse (2010), Ashburton Project
(ref: Johnson, SP, Thorne, AM and Tyler, IM (eds) 2011, Capricorn Orogen seismic and magnetotelluric (MT) workshop
2011: extended abstracts: Geological Survey of Western Australia, Record 2011/25, 120p.)
In May and June 2021, the Company and its consultants collated and reprocessed all seismic, magnetic,
gravity, geological and geochemical datasets across the Ashburton Project and conducted a major
litho-structural interpretation of the region (figure 6). This reprocessing resulted in a far greater detailed
interpretation of the region compared to previous processing and importantly, identified at least three
previously unknown, large-scale, deep seated faults.
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Cazaly Resources Limited Annual Report 2021
One of these newly identified faults shows a seismically reflective halo near-surface that may evidence
alteration/fluid flow along this structure. The interconnected relationship between this deeply seated
structure and associated smaller scale faults and deformation within the Wyloo Group has led to targeted
areas considered prospective for gold mineralisation.
Figure 6: Regional litho-structural interpretation of the Ashburton Basin
The technical work conducted to date has successfully highlighted specific areas potentially hosting gold
mineralisation. The Company is now finalising heritage access agreements and is designing first pass field
work over the targeted areas.
Kaoko Kobalt Project (CAZ 95%)
Cazaly holds a 95% interest in the Kaoko base metal project located in northern Namibia approximately
800km by road from the capital of Windhoek and approximately 750km from the port of Walvis Bay. The
project is situated immediately north of, and abuts, Celsius Resources Limited’s (ASX:CLA) Opuwo Cobalt
project resource of 112Mt @ 0.11% Co & 0.41% Cu (CLA ASX: 16 April & 5 November 2018).
McKenzie Springs (FIN 51% CAZ 49%)
Sammy Resources Pty Ltd (a wholly owned subsidiary of Cazaly) is in joint venture with Fin Resources Ltd
(ASX:FIN) over exploration licence E80/4808, the McKenzie Springs Project, located in the Kimberley region
of Western Australia. The project lies south along strike from the Savannah nickel mine owned by
Panoramic Resources Ltd and is prospective for intrusive - hosted nickel copper mineralisation.
Mount Venn Gold Project (WML 80% CAZ 20%)
The Mt Venn Gold Project is located 125km northeast of Laverton in the Eastern Goldfields Region of
Western Australia and covers approximately 400km2 of prospective greenstone sequence. The project
area lies within the Mount Venn-Yamarna-Dorothy Hills greenstone belt which is the most easterly major
N-S striking greenstone belt of the Yilgarn Craton (figure 7).
The belt is considered highly prospective for gold and nickel and is positioned along the western limb of
the Yamarna Greenstone Belt that hosts Gold Road’s and Gold Fields’ plus 6Moz Gruyere Gold Mine.
Together the Yilgarn greenstone belts account for 30% of the world’s gold reserves, most of Australia’s
nickel production and other base metal and rare earth deposits.
The project is subject to an unincorporated Joint Venture between the operators Woomera Mining
Limited (Woomera) (ASX:WML) and Cazaly.
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Cazaly Resources Limited Annual Report 2021
More recent work by Woomera has focused on the Three Bears Gold Trend, that extends over 7km strike
and is highly prospective for gold mineralisation. During the June quarter the Mama Bear prospect,
located along this trend was drill tested with 25 RC holes for 4,366m and 40 AC holes for 1,457m.
Figure 7: Mt Venn Project showing the Mount Cumming Ni prospect and the
Three Bears Project located 40km west of the 6Moz Gruyere Gold Mine
Drilling results to date confirm the Mama Bear prospect has bedrock gold mineralisation continuity over
600m strike, however further exploration work is required in order to locate the higher grade zones within
the mineralised system.
Woomera has also planned a ground EM survey to be completed in the September quarter across the
ultramafic complex at Mt Cumming, located at the northern end of the Mount Venn Greenstone Belt.
Three mafic-ultramafic sills are identified within the Mt Cumming Mafic Complex, namely the Mt Warren
Sill, Mt Cornell Sill and the Mt Cumming Sill (Figure 8).
Previous airborne and ground EM surveys have identified 8 EM conductors at Mt Cumming that have a
number of coincident rock chip and/or soil anomalies (Figure 8). The ground EM survey is designed to
refine these targets and provide additional data to prioritise RC drill testing, which is also scheduled for
the September quarter.
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Cazaly Resources Limited Annual Report 2021
Figure 8. EM target locations within the ultramafic complex at the northern end of the Mount Venn
Greenstone Belt
Hamersley Project (PF1 70% CAZ 30%)
The Hamersley Iron Ore Project is an unincorporated Joint Venture between the Company and Pathfinder
Resources Ltd. (ASX:PF1). The project is located in the heart of the world-renowned Pilbara iron ore district
and currently has a total Mineral Resource estimate of 343.2 Mt at 54.5% Fe (Table 1).
The current Mineral Resource for the Hamersley Iron Ore Project is reported in accordance with the
Australasian Code for Reporting of Mineral Resources and Ore Reserves (2012) (JORC Code 2012) (refer
to Pathfinder’s ASX Announcement dated 24 January 2020).
Table 1: JORC Code 2012 Mineral Resource Estimate for the Hamersley Iron Ore Project
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Cazaly Resources Limited Annual Report 2021
On 9 July 2021, the Company, together with Pathfinder, announced the sale of the project to Equinox
Resources Limited who intend to undertake an initial public offer (“IPO”) and seek a listing on the official
list of the Australian Securities Exchange. The IPO will raise between $7 million and $9 million (before costs)
through the offer of between 35 million and 45 million shares, at an issue price of $0.20 per share.
Under the proposed transaction, Cazaly will receive 15,0000,000 shares in Equinox plus between 2,550,000
and 2,850,000 performance shares (based on Equinox IPO subscription value) enabling Cazaly and its
shareholders the ability to maintain exposure to the Project via the Company’s equity interest in Equinox.
The proposed transaction will create a new listed entity, assisted by a dedicated board and
management team, with a sole focus on exploration and development of the Project. The proposed spin-
out will also allow Cazaly to focus its efforts on advancing its other 100% owned projects as well as
exploring new opportunities.
The IPO was lodged with ASIC and ASX on 31 August 2021.
Other
Field reconnaissance work will shortly be conducted at the recently granted Yabbie (formerly known as
Brown Well) project (CAZ 100%) located in the Laverton district of Western Australia.
Mineral Resources Limited (ASX:MIN) has stated that they expect to commence production from the
Parker Range mine, where the Company has a royalty interest, in September 2021 quarter pending final
approvals.
Cazaly is reviewing its position in relation to its interest in two exploration applications in the Czech
Republic as it continues to encounter in-country difficulties in advancing these to grant.
The Company also continues to assess other potential project opportunities for the Company.
Corporate
Equity Issues
During the financial year, 100% of the outstanding $0.029 (expiring 31 March 2021) and $0.039 (expiring
26 November 2020) options, were converted to fully paid ordinary shares in the Company, for proceeds
of $767,650.
Other
On 19 April 2021, the Company announced the appointment of Ms Tara French as the new Chief
Executive Officer/Managing Director of the Company. Tara was previously the General Manager of
Exploration at Regis Resources Limited where she was employed for 14 years and played a key role in the
company’s transition and growth over that time. In readiness for the commencement of Ms French on 12
July 2021, Clive Jones reverted to the role of Executive Director whilst Nathan McMahon became a Non-
Executive Director.
The Group continued to monitor the COVID-19 situation closely and has continually been managing the
situation in a balanced, calm and measured way.
6.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
The Group will continue its mineral exploration activity at and around its exploration projects with the
object of identifying commercial resources. The Group has continued to reduce its tenement holdings
but is also focussed on sourcing key commodity projects.
7.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the financial year.
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Cazaly Resources Limited Annual Report 2021
8.
AFTER BALANCE DATE EVENTS
The Directors are not aware of any matters or circumstances at the date of the report, other than those
referred to in this report or the financial statements or notes thereto, that has significantly affected or may
significantly affect the operations, the results of operations or the state of affairs of the Group in
subsequent financial years.
9.
ENVIRONMENTAL ISSUES
The Group has a policy of complying with or exceeding its environmental performance obligations. The
Board believes that the Group has adequate systems in place for the management of its environmental
requirements. The Group aims to ensure the appropriate standard of environmental care is achieved,
and in doing so, that it is aware of and is in compliance with all environmental legislation. The Directors
are not aware of any breach of environmental legislation for the financial year under review.
10.
INFORMATION ON DIRECTORS
Clive Jones
Executive Director (B.App.Sc(Geol), M.AusIMM)
Experience
Mr Jones has been involved in mineral exploration for over 25 years and has
worked on the exploration for a range of commodities including gold, base
metals, mineral sands, uranium and iron ore. Mr Jones is also a director of
Bannerman Energy Ltd (formerly Bannerman Resources Ltd).
Equity Holdings
20,829,904 fully paid ordinary shares
4,000,000 options exercisable at $0.0495 expiring 19 November 2022
Listed Directorships
Corazon Mining Ltd (from February 2005 to November 2019)
Bannerman Energy Ltd (from January 2007)
Nathan McMahon
Non-Executive (B.Com)
Experience
Mr McMahon has provided corporate and tenement management advice to
the mining industry for nearly 25 years to in excess of twenty public listed mining
companies. Nathan has specialised in native title negotiations, joint venture
negotiations and project acquisition due diligence.
Equity Holdings
40,238,258 fully paid ordinary shares
4,000,000 options exercisable at $0.0495 expiring 19 November 2022
Listed Directorships
Galan Lithium Limited (February 2011 to February 2020)
Terry Gardiner
Non-Executive Director (B.Bus)
Experience
Mr Gardiner has been involved in capital markets, corporate advising,
stockbroking & derivatives trading for over 20 years. For the past twelve years
Mr Gardiner has been an Executive Director of boutique broker Barclay Wells
Ltd. Mr Gardiner is also a director of various ASX listed and unlisted public
companies.
Equity Holdings
7,750,000 fully paid ordinary shares
2,000,000 options exercisable at $0.0495 expiring 19 November 2022
Listed Directorships
Galan Lithium Limited (from December 2013)
Roto-Gro International Limited (from July 2019)
Affinity Energy and Health Limited (from October 2019)
Charger Metals NL (from July 2021)(Chairman)
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Cazaly Resources Limited Annual Report 2021
Mike Robbins - Company Secretary
Mr Robbins has over 25 years resource industry experience gathered at both operational and corporate
levels, both within Australia and overseas. During that time, he has held numerous project and head office
roles and is also Company Secretary for Galan Lithium Limited.
11.
REMUNERATION REPORT - AUDITED
This report details the nature and amount of remuneration for each director of the Company.
Remuneration Policy
The remuneration policy of Cazaly has been designed to align Director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component which is assessed on
an annual basis in line with market rates and Group performance. The further tailoring of goals between
shareholders and the Directors and executives is achieved through the issue of equity to the directors and
executives to encourage the alignment of personal and shareholder interest.
The Board of the Company believes the remuneration policy to be appropriate and effective in its ability
to attract and retain the best personnel to run and manage the Company, as well as create goal
congruence between Directors, executives and shareholders.
The remuneration policy, setting the terms and conditions for the Directors and executives was developed
by the Executive and approved by the Board after seeking professional advice from independent
external consultants.
In determining continuing, competitive remuneration rates, the Board seeks independent advice on local
and international trends among comparative companies and industry generally. It examines terms and
conditions for employee incentive plans and other benefit schemes.
The Group is exploration and development focussed, and therefore speculative in terms of performance.
Consistent with attracting and retaining talented people, the Directors and executives are paid market
rates associated with individuals in similar positions, within the same industry. Independent advice is
obtained to confirm that executive remuneration is in line with market practice and is reasonable in the
context of Australian executive reward practices.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed
or carried forward on the balance sheet for time that is attributable to exploration and evaluation.
Options are valued using the Black-Scholes methodology.
The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for
time, commitment and responsibilities. The Executive, in consultation with independent advisors as
necessary, determine and review Non-Executive Directors’ remuneration annually, based on market
practice, duties and accountability. The maximum aggregate amount of fees that can be paid to non-
executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-
executive Directors are not linked to the performance of the Company. However, to align Directors’
interests with shareholder interests, all Directors are encouraged to hold shares in the company.
Employment Details
All Directors have engagement contracts in place.
Mr Jones is currently an Executive Director on a remuneration package totalling $216,804.
Mr McMahon was previously a joint Managing Director of the Company but reverted to the role of Non-
Executive Director upon the commencement of Ms Tara French as CEO. His engagement contract was
adjusted to an annual equivalent fee of $60,000.
Mr Terry Gardiner, a Non-Executive Director is employed by the Company on an annual salary of $50,000
(plus statutory superannuation).
15
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
11.
REMUNERATION REPORT – AUDITED (Cont’d)
The employment contracts stipulate a range of resignation notice periods. The Company may terminate
an employment contract without cause by providing written notice or making payment in lieu of notice,
based on the individual’s annual salary component. Termination payments are not payable on
resignation or under the circumstances of unsatisfactory performance.
Voting and comments made at the Company’s 2020 Annual General Meeting
The adoption of the Remuneration Report for the financial year ended 30 June 2020 was put to the
shareholders of the Company at the Annual General Meeting held 20 November 2020. The Company
received 99.98% of the vote, of those shareholders who exercised their right to vote, in favour of the
remuneration report for the 2020 financial year. The resolution was passed without amendment by a poll
and proxy vote. Company did not receive any specific feedback at the AGM or throughout the year on
its remuneration practices.
Details of Remuneration for Years Ended 30 June 2021 & 30 June 2020
The remuneration for key management personnel of the company during the year was as follows:
Short-term Benefits
Post
Employment
Benefits
Other
Long-term
Benefits
Share based
Payment
Total
Performance
Related
Cash, salary
Cash
Non-cash
Other
Super
Other
Equity
Options
& bonuses
profit
Benefit
share
$
$
$
Nathan McMahon – Non-Executive Director (i)
2021
2020
193,240
309,203
-
-
Clive Jones – Executive Director (ii)
2021
2020
222,512
354,902
-
-
-
-
-
-
Terry Gardiner – Non Executive Director
2021
2020
50,000
70,000
Total Remuneration
2021
2020
465,752
734,105
-
-
-
-
-
-
-
-
$
-
154,942
$
-
-
-
5,412
154,942
2,603
-
5,000
4,750
4,750
-
10,162
314,884
7,353
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
$
193,240
%
-
102,175 566,320
18%
-
227,924
-
102,175 614,622
17%
-
54,750
-
51,088
130,838
39%
-
475,914
-
255,438 1,311,780
19%
i) Aggregate short term benefits of $193,240 (2020: $464,145) were paid, or were due and payable to Kingsreef Pty
Ltd, a company controlled by Mr Nathan McMahon, for the provision of corporate management services to the
Company. Mr McMahon reverted to a Non-Executive Director on 1 June 2021.
ii) Aggregate short term benefits of $222,512 (2020: $509,844) were paid, or were due and payable to Clive Jones or
Widerange Corporation Pty Ltd, a company controlled by Mr Clive Jones, for the provision of corporate and
technical management services to the Company. This amount includes a salary and superannuation component
of $62,375 paid directly to Mr Jones.
Related Party Information
The Company received a total of $14,285 (2020: $14,418) under an Office Services Agreement with
Gregory Resources Ltd. Gregory Resources Ltd is considered by the Company to be a related party, as
two Directors of Cazaly, Mr Nathan McMahon and Mr Terry Gardiner, were also directors of Gregory
Resources Ltd during the financial year.
The Company received a total of $96,500 (2020: $122,853) under an Office Services Agreement with
Galan Lithium Ltd. Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan
Non-Executive Director, Mr Terry Gardiner, is also a director of Cazaly Resources Ltd.
16
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
11.
REMUNERATION REPORT – AUDITED (Cont’d)
The Company paid $79,620 (2020: $Nil) for the provision of Company Secretarial services to Galan Lithium
Ltd. Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive
Director, Mr Terry Gardiner, is also a director of Cazaly Resources Ltd.
Key Management Personnel (KMP) Share and Option Holdings
Share Holdings
30 June 2021
N. McMahon
C. Jones
T. Gardiner
30 June 2020
N. McMahon
C. Jones
T. Gardiner
Option Holdings
30 June 2021
N. McMahon
C. Jones
T. Gardiner (ii)
30 June 2020
N. McMahon
C. Jones
T. Gardiner (ii)
Balance
01-07-20
Granted as
Remuneration
Options
Exercised
Net Change
Other
35,363,256
18,329,904
5,421,500
59,114,660
-
-
-
-
2,500,000
2,500,000
2,000,000
7,000,000
2,375,002
-
328,500
2,703,482
Balance
01-07-19
Granted as
Remuneration
Options
Exercised
Net Change
Other
29,366,142
16,329,904
5,071,500
50,767,546
-
-
-
-
-
-
-
-
5,997,114
2,000,000
350,000
8,347,114
Balance
30-06-21
40,238,258
20,829,904
7,750,000
68,818,162
Balance
30-06-20
35,363,256
18,329,904
5,421,500
59,114,660
Balance
01-07-20
Issued
Acquired
Exercised
(ii)
Lapsed
Balance
30-06-21
Vested
during
the year
Vested
and
exercisable
6,500,000
6,500,000
4,000,000
17,000,000
-
-
-
-
2,500,000
2,500,000
2,000,000
7,000,000
-
-
-
-
4,000,000
4,000,000
2,000,000
10,000,000
-
-
-
-
4,000,000
4,000,000
2,000,000
10,000,000
Balance
01-07-19
Issued
Acquired (i)
Exercised
Lapsed
Balance
30-06-20
Vested
during the
year
Vested
and
exercisable
2,500,000
4,000,000
2,500,000
4,000,000
2,000,000
2,000,000
7,000,000
10,000,000
-
-
-
-
-
-
-
-
6,500,000
4,000,000
6,500,000
6,500,000
4,000,000
6,500,000
4,000,000
2,000,000
4,000,000
17,000,000
10,500,000
17,000,000
(i)
(ii)
Approved by shareholders at the AGM held on 20 November 2019. Options are exercisable at $0.0495
(originally issued at $0.0705) on or before 19 November 2022.
Includes 500,000 options exercisable at $0.029 (originally issued at $0.05) on or before 31 March 2021
issued under a placement and approved by shareholders on 6 June 2019.
End of Remuneration Report (Audited).
17
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
12. MEETINGS OF DIRECTORS
The number of directors' meetings held and conducted during the financial year, each director held
office during the financial year and the number of meetings attended by each director is:
Director
N McMahon
C Jones
T Gardiner
Number Eligible
Number Participated
8
8
8
8
8
8
The Company does not have a formally constituted audit and risk committee or remuneration and
nomination committee as the Board considers that the Company’s size and type of operation do not
warrant the formation of such committees.
13.
INDEMNIFYING OFFICERS OR DIRECTORS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every
Officer, or agent of the Company shall be indemnified out of the property of the Company against any
liability incurred by him in his capacity as Officer or agent of the Company or any related corporation in
respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings,
whether civil or criminal. No indemnification has been paid with respect to the Company’s auditor.
The Company has insurance policies in place for Directors and Officers insurance.
14. OPTIONS
Options forfeited or cancelled
During, or since the end of the financial year, no options were forfeited or cancelled.
Options Expired or Lapsed
During, or since the end of the financial year, no options have expired or lapsed.
Options on Issue
At the date of this report the Company had the following options on issue:
Expiry Date
19/11/2022
8/3/2024
11/6/24
Exercise Price
Options on Issue
$0.0495
$0.0500
$0.0660
10,000,000
2,000,000
500,000
Option holders do not have any rights to participate in any issue of shares or other interests in the
Company or any other entity.
15.
PROCEEDINGS ON BEHALF OF GROUP
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings. The Group was not a party to any such proceedings during the
year.
16. AUDITORS INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and
can be found on page 20.
18
DIRECTORS’ REPORT
Cazaly Resources Limited Annual Report 2021
17. NON-AUDIT SERVICES
The Board of Directors is satisfied that the provision of non-audit services performed during the year by the
Group’s auditors is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. No other fees were paid or payable to the auditors for non-audit services
performed during the year ended 30 June 2021.
This report of the Directors, incorporating the Remuneration Report, is signed in accordance with a
resolution of the Board of Directors.
Clive Jones
Executive Director
30 September 2021
Competent Persons Statement
This information that relates to exploration targets, exploration results, resource reporting and drilling data of Cazaly
operated projects is based on information compiled by Mr Clive Jones and Mr Don Horn who are Members of The
Australasian Institute of Mining and Metallurgy and/or The Australian Institute of Geoscientists and are employees of
the Company. Mr Jones and Mr Horn have sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons
as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Mr Jones and Mr Horn consent to the inclusion in their names in the matters based on their information in the
form and context in which it appears.
19
To the Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations Act
2001
As lead audit Partner for the audit of the financial statements of Cazaly Resources Limited for the
financial year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Partner
Dated at Perth this 30th September 2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For Year Ended 30 June 2021
Note
2
2
3
3
6
Revenue from continuing operations
Gain/(Loss) on sale of financials assets
Revaluation /(Impairment) of financial assets
Other Income
Employee benefits
Finance Costs
Depreciation
Administrative expenses
Compliance and regulatory expenses
Occupancy expenses
Written-off exploration expenditure
Equity based payments
Loss on disposal of subsidiary
Profit/(loss) before income tax
Income tax (expense)/ benefit
Profit/(loss) for the year from continuing operations
Other comprehensive income
Total comprehensive income/(loss) for the year
Earnings/(loss) for the year attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive income/(loss) attributable to:
Members of the parent entity
Non-controlling interest
Earnings/(loss) per share from continuing and
discontinuing operations
Basic weighted average earnings/(loss) per share
Diluted weighted average earnings/(loss) per share
18
18
2021
$
205,305
996,942
1,296,883
120,401
(545,131)
(11,890)
(77,898)
(326,385)
(258,074)
(76,537)
(543,522)
(63,517)
-
716,577
-
716,577
-
716,577
716,761
(184)
716,577
716,761
(184)
716,577
Cents
0.19
0.19
The accompanying notes form part of these financial statements.
2020
$
311,810
(1,300)
468,047
3,967,005
(1,149,859)
(157,741)
(14,398)
(489,800)
(183,682)
(245,981)
(394,219)
(255,438)
(135,138)
1,719,306
-
1,719,306
-
1,719,306
1,719,359
(53)
1,719,306
1,719,359
(53)
1,719,306
Cents
0.50
0.50
21
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at 30 June 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Financial assets
Property, plant and equipment
Exploration and evaluation assets
Rights of use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Interest bearing loans and borrowings
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Note
2021
$
2020
$
7
8
8
9
10
11
29
12
13
29
9,593,690
133,893
10,085,562
59,396
9,727,583
10,144,958
49,679
2,491,151
23,505
5,294,691
151,367
59,717
1,514,427
15,276
4,324,283
215,417
8,010,393
6,129,120
17,737,976
16,274,078
144,562
120,831
109,855
143,619
145,607
59,973
375,248
349,199
Interest bearing loans and borrowings
29
52,576
162,371
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Controlling entity interest
Non-controlling interest
TOTAL EQUITY
52,576
427,824
162,731
511,570
17,310,152
15,762,508
14
15
16
26,620,021
422,241
(9,716,539)
17,325,723
(15,571)
25,852,471
358,724
(10,433,300)
15,777,895
(15,387)
17,310,152
15,762,508
The accompanying notes form part of these financial statements.
22
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
For the year ended 30 June 2021
Issued Capital (Accumulated
Losses)
Option
Reserve
$
$
$
Non-
Controlling
Interest
$
Total
$
Balance at 30 June 2019
31,288,827
(10,603,110)
777,627
(15,334)
21,448,010
Earnings/(loss) for the year
Other comprehensive
income for the year
Total comprehensive
income/(loss) for the year
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
Issue costs
Options issued
Options expired
Fair value of options
exercised
Option reserve
Return of capital
Unfranked dividend paid
Balance at 30 June 2020
Earnings/(loss) for the year
Other comprehensive
income for the year
Total comprehensive
income/(loss) for the year
Transactions with owners, in
their capacity as owners, and
other transfers:
Shares issued
Issue costs
Options issued
Options expired
Fair value of options
exercised
Option reserve
Return of capital
Unfranked dividend paid
Balance at 30 June 2021
-
-
-
1,719,359
-
1,719,359
-
-
-
(53)
1,719,306
-
(53)
-
1,719,306
1,339,763
-
-
-
-
-
-
193,751
480,590
-
(7,256,709)
-
25,852,471
-
-
-
(1,743,300)
(10,433,300)
-
-
-
(193,751)
(480,590)
255,438
-
-
358,724
-
-
-
716,761
-
716,761
767,550
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,339,763
-
-
-
-
-
-
-
(15,387)
-
255,438
(7,256,709)
(1,743,300)
15,762,508
(184)
716,577
-
(184)
-
716,577
-
-
-
-
-
767,550
-
-
-
-
-
-
-
26,620,021
-
-
-
(9,716,539)
63,517
-
-
422,241
-
-
-
(15,571)
63,517
-
-
17,310,152
The accompanying notes form part of these financial statements.
23
CONSOLIDATED CASH FLOW
STATEMENT
For the year ended 30 June 2021
Cash Flows from Operating Activities
Receipts from services agreements
Cash received from government grant
Payments to suppliers and employees
Interest received and bill discounts received
Note
2021
$
2020
$
152,300
50,000
(1,223,565)
53,444
158,914
50,000
(2,066,915)
149,730
Net cash used in operating activities
19
(967,821)
(1,708,271)
Cash Flows From Investing Activities
Purchase of property, plant & equipment
Purchase of equity investments
Payments for exploration and evaluation
Payments for purchase of exploration assets
Payment for term deposit bond
Proceeds from sale of equity investments
Proceeds from the Sale of Subsidiary
Proceeds from sale of exploration assets (net of
transaction costs)
Proceeds from term deposit bond
(34,869)
(892,132)
(1,318,832)
(335,000)
-
2,209,232
-
(5,826)
(731,622)
(956,001)
(49,679)
-
934,470
60,000
20,000
19,926,883
17,595
Net cash provided by investing activities
(291,601)
19,135,820
Cash Flows from Financing Activities
Proceeds from issue of share
Proceeds from conversion of options
Payment for the return of capital
Payment for unfranked dividend
-
767,550
-
-
-
821,304
(7,256,700)
(1,743,300)
Net cash provided by financing activities
767,550
(8,178,696)
Net increase/(decrease) in cash held
(491,872)
9,248,853
Cash and cash equivalents at beginning of the
financial year
10,085,562
836,709
Cash and cash equivalents at end of the financial
year
7
9,593,690
10,085,562
The accompanying notes form part of these financial statements.
24
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements and notes represent those of Cazaly Resources Limited (the
Company or Cazaly) and its controlled entities (the Group). Cazaly Resources Limited is a listed public
company, incorporated and domiciled in Australia.
The financial statements were authorised for issue on 30 September 2021 by the Directors of the Company.
Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting
Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group
is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
Standards, Australian Accounting
Australian Accounting Standards set out in accounting policies that the AASB has concluded would result in
financial statements containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies
adopted in the preparation of these financial statements are presented below and have been consistently
applied unless otherwise stated.
These financial statements have been prepared on an accruals basis and are based on historical costs,
modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets
and financial liabilities.
Going Concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of
business.
(a)
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by
the Company at the end of the reporting period. A controlled entity is any entity over which the Company
has the power to govern the financial and operating policies so as to obtain benefits from the entity’s
activities. Control will generally exist when the parent owns, directly or indirectly through subsidiaries, more
than half of the voting power of an entity. In assessing the power to govern, the existence and effect of
holdings of actual and potential voting rights are also considered.
Where controlled entities have entered or left the Group during the year, the financial performance of those
entities are included only for the period of the year that they were controlled. A list of controlled entities, as
at 30 June 2021 is contained in Note 21 to the financial statements.
In preparing the consolidated financial statements, all inter-group balances and transactions between
entities in the Group have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with those adopted by the Company.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent,
are shown separately within the Equity section of the consolidated Statement of Financial Position and
Statement of Profit or Loss and other Comprehensive Income. The non-controlling interest in the net assets
comprises their interests at the date of the original business combination and their share of changes in equity
since that date.
(b)
Plant and Equipment
Plant and equipment are stated at cost less accumulated depreciation and impairment. The carrying
amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected
net cash flows that will be received from the asset’s employment and subsequent disposal. The expected
net cash flows have been discounted to their present values in determining recoverable amounts.
25
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(c)
Depreciation
Depreciation is provided on plant and equipment. Depreciation is calculated on a straight line basis so as to
write off the net cost or other revalued amount of each asset over its expected useful life to its estimated
residual value.
The depreciation rates used for each class of depreciable assets are plant and equipment (40%), office
furniture and equipment (18%) and motor vehicles (22.5%).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period. The value for office furniture and equipment was written down to nil at 30 June 2021.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the Statement of Profit or Loss and other Comprehensive Income. When revalued
assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained
earnings.
(d)
Exploration, Evaluation and Development Expenditure
Costs incurred during exploration and evaluations relating to an area of interest are accumulated. Costs are
carried forward to the extent they are expected to be recouped through successful development, or by
sale, or where exploration and evaluation activities have not yet reached a stage to allow a reasonable
assessment regarding the existence of economically recoverable reserves. In these instances the entity must
have rights of tenure to the area of interest and must be continuing to undertake exploration operations in
the area.
Accumulated costs carried forward in respect of an area of interest that is abandoned are written off in full
against profit 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 will be 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 of interest.
Costs of site restoration are provided 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 clauses
of the mining permits. Such costs have been estimated of future costs, current legal requirements and
technology on an undiscounted basis.
(e)
Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset,
but not the legal ownership, are transferred to entities in the consolidated group are classified as finance
leases. Finance leases are capitalised by recording an asset and a liability equal to the present value of the
minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a
straight-line basis over the shorter of their estimated useful lives or the lease term.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred.
26
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(f)
Financial Instruments
Financial Assets
Initial Recognition and Measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash
flow characteristics and the Group’s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Group has applied the
practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair
value with net changes in fair value recognised in the statement of profit or loss.
This category includes listed equity investments which the Group had not irrevocably elected to classify at
fair value through OCI. Dividends on listed equity investments are also recognised as other income in the
statement of profit or loss when the right of payment has been established.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
• The rights to receive cash flows from the asset have expired; or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and
either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has
neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.
The Group considers a financial asset in default when contractual payments are 90 days past due. However,
in certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive outstanding contractual amounts in full before
taking into account any credit enhancements held by the Group. A financial asset is written off when there
is no reasonable expectation of recovering the contractual cash flows
27
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payable and convertible notes.
The accounting policy on convertible notes are at 1(v).
(g)
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are
shown within short-term borrowings in current liabilities on the statement of financial position.
(h)
Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when
there is objective evidence that the entity will not be able to collect the debts. Bad debts are written off
when identified.
(i)
Revenue and Other Income
Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is
recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
All revenue is stated net of the amount of goods and services tax (GST).
(j)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may
be impaired. The assessment will include the consideration of external and internal sources of information
including dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of
pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing
the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in
use, to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is
recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with
another standard (eg in accordance with the revaluation model in AASB 116). Any impairment loss of a
revalued asset is treated as a revaluation decrease in accordance with that other standard.
Where 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. Impairment testing is performed
annually for goodwill and intangible assets with indefinite lives.
(k)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office (“ATO”). In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST. The net amount of GST
recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial
position.
Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
28
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(l)
Taxation
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated
using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also
result where amounts have been fully expensed but future tax deductions are available. No deferred income
tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at
reporting date. Their measurement also reflects the manner in which management expects to recover or
settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax
asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the
temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred
tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
Cazaly and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under
tax consolidation legislation. Each entity in the group recognises its own current and deferred tax assets and
liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation. Current tax
liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are
immediately transferred to the head entity.
(m)
Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the company prior to the end of the financial year that are unpaid and arise when the
company becomes obliged to make future payments in respect of the purchase of these goods and
services.
(n)
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
29
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows.
(o)
Share Based Payments
The Group operates equity-settled share-based payment employee share and option schemes. The fair
value of the equity to which employees become entitled is measured at grant date and recognised as an
expense over the vesting period, with a corresponding increase to an equity account. Share-based
payments to non-employees are measured at the fair value of goods or services received or the fair value
of the equity instruments issued, if it is determined the fair value of the good or services cannot be reliably
measured, and are recorded at the date the goods or services are received. The corresponding amount is
shown in the option reserve.
The fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using
a Black–Scholes pricing model which incorporates all market vesting conditions. The number of shares and
options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount
recognised for services received as consideration for the equity instruments granted shall be based on the
number of equity instruments that eventually vest.
(p)
Issued Capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company.
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction
of the share proceeds received.
(q)
Earnings Per Share
Basic earnings per share is calculated as net earnings attributable to members, adjusted to exclude costs of
servicing equity (other than dividends) and preference share dividends, divided by the weighted average
number of ordinary shares, adjusted for an bonus element.
Diluted earnings per share is calculated as net earnings attributable to members, adjusted for costs of
servicing equity (other than dividends) and preference share dividends; the after tax effect of dividends and
interest associated with dilutive potential ordinary shares that would have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive
potential ordinary shares, adjusted for any bonus element.
(r)
Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees
to the end of the reporting period. Employee benefits that are expected to be settled within one year have
been measured at the amounts expected to be paid when the liability is settled.
(s)
Interest 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:
•
•
•
•
•
its assets, including its share of any assets held jointly;
its liabilities, including its share of any liabilities incurred jointly;
its revenue from the sale of its share of the output arising from the joint operation;
its share of the revenue from the sale of the output by the joint operation; and
its expenses, including its share of any expenses incurred jointly.
30
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation
in accordance with the AASBs applicable to the particular assets, liabilities, revenues 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.
(t)
Critical Accounting Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the group.
Key Judgements –Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves, refer to the
accounting policy stated in note 1(d).
Key Judgements - Share based payment transactions
The Company measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an internal
valuation using a Black-Scholes option pricing model.
Key Judgments – Environmental issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation, and the directors understanding thereof. At the current stage of the
company’s development and its current environmental impact the directors believe such treatment is
reasonable and appropriate.
Key Estimate – Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the
best estimates of directors. These estimates take into account both the financial performance and position
of the company as they pertain to current income taxation legislation, and the directors understanding
thereof. No adjustment has been made for pending or future taxation legislation. The current income tax
position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.
(u)
Fair value measurements
The Group measures and recognises the asset, ‘Financial assets held for trading’ at fair value on a recurring
basis after initial recognition.
The Group does not subsequently measure any liabilities at fair value on a non-recurring basis.
31
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(i) Fair Value Hierarchy
AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value
hierarchy, which categorises fair value measurements into one of three possible levels based on the
lowest level that an input that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on
quoted prices (unadjusted) in
active markets for identical
assets or liabilities that the entity
can access at the
measurement date.
Level 2
Measurements based on inputs
other than quoted prices
included in Level 1 that are
observable for the asset or
liability, either directly or indirectly.
Level 3
Measurements based on
unobservable inputs for the asset
or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
(ii) Valuation techniques
The Company selects a valuation technique that is appropriate in the circumstances and for which sufficient
data is available to measure fair value. The availability of sufficient and relevant data primarily depends on
the specific characteristics of the asset or liability being measured. The valuation technique selected by the
Company is the Market approach whereby valuation techniques use prices and other relevant information
generated by market transactions for identical or similar assets or liabilities.
When selecting a valuation technique, the Company gives priority to those techniques that maximise the
use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using
market data (such as publicly available information on actual transactions) and reflect the assumptions that
buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas
inputs for which market data is not available and therefore are developed using the best information
available about such assumptions are considered unobservable.
The following table provides the fair values of the Company’s assets and liabilities measured and recognised
on a recurring basis after initial recognition and their categorisation within the fair value hierarchy:
Recurring fair value measurements
Note
Level 1
$
Financial assets at fair value through
profit or loss:
30 June 2021
Level 2
$
Level 3
$
Total
$
-
-
Australian listed shares at fair value
2,491,151
unlisted Australian shares
-
2,491,151
-
-
-
Recurring fair value measurements
Note
Financial assets at fair value through
profit or loss:
30 June 2020
Level 1
$
Level 2
$
Level 3
$
-
-
Australian listed shares at fair value
1,514,427
unlisted Australian shares
-
1,514,427
-
-
-
-
-
-
-
-
-
2,491,151
-
2,491,151
Total
$
1,514,427
-
1,514,427
32
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
(v) Revenue Recognition
Grant revenue
Government grants are recognised where there is reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the
expected useful life of the related asset.
When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal
amounts and released to profit or loss over the expected useful life of the asset, based on the pattern of
consumption of the benefits of the underlying asset by equal annual instalments.
Operating revenue
Revenue from the rendering of services is recognised upon the delivery of the service to the customer.
Interest revenue
Interest revenue is recognised using the effective interest rate method.
(w) Operating Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term
leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying assets.
i)
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use
assets (office premises) are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets. This is 3 years.
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
The right-of-use assets are also subject to impairment.
ii)
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase option reasonably certain to be exercised by the
Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce inventories) in the period in which the event or condition
that triggers the payment occurs.
33
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change
in the assessment of an option to purchase the underlying asset.
The Group’s lease liabilities are included in Interest-bearing loans and borrowings, refer note 27.
iii)
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and
do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to
leases of office equipment that are considered to be low value. Lease payments on short-term leases and
leases of low value assets are recognised as expense on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of
an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over
the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of
the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents
are recognised as revenue in the period in which they are earned.
(x) New, revised or amending accounting standards and interpretations adopted
Adoption of new and revised Accounting Standards
The Group has adopted all new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board that are relevant to its operations and effective for an accounting period that
begins on or after 1 January 2020.
Standards and Interpretations in issue not yet adopted
The Group has reviewed the new and revised Standards and Interpretations on issue not yet adopted for the
year ended 30 June 2021. As a result of this review the Group has determined that there is no material impact
of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no change is
necessary to Group accounting policies.
34
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
2.
2.
REVENUE & OTHER INCOME
Revenue from Continuing Operations
-
-
interest received
recoupment of office costs on-charged
Other Income
-
-
-
gain from tenement sale agreement
government grant received
other
2021
$
2020
$
53,005
152,300
205,305
60,000
50,000
10,401
120,401
149,730
162,080
311,810
3,907,005
50,000
10,000
3,967,005
3.
PROFIT/(LOSS) FOR THE YEAR
Profit/(loss) before income tax from continuing operations includes the following specific expenses:
Expenses
Administrative expenses
Consulting
Advertising, printing and stationery
Travel and accommodation
Insurance
Break fee
Other
Compliance and regulatory expenses
ASX, ASIC, registry and secretarial
Legal
Employee Benefits
Superannuation
4.
KEY MANAGEMENT PERSONNEL
Interests of Key Management Personnel
153,313
14,459
3,522
28,970
-
126,121
326,385
202,920
55,155
258,075
80,092
13,987
40,815
29,900
250,000
75,006
489,800
176,844
6,838
183,682
43,145
34,810
Refer to the remuneration report contained in the directors’ report for details of the remuneration paid or
payable to each member of the Company’s key management personnel for the year ended 30 June 2021.
The totals of remuneration paid to key management personnel of the Company during the year are as
follows:
Short-term employee benefits
Post-employment benefits
Termination benefits
Other long-term benefits
Share based payments
A total of $216,364 (2020: $264,474) was capitalised to exploration expenditure.
465,752
10,162
-
-
-
475,914
1,048,989
7,353
-
-
255,438
1,311,780
35
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
4.
KEY MANAGEMENT PERSONNEL (Cont’d)
Related Party Information
The Company received a total of $14,285 (2020: $14,418) under an Office Services Agreement with Gregory
Resources Ltd. Gregory Resources Ltd is considered by the Company to be a related party, as two Directors
of Cazaly, Mr Nathan McMahon and Mr Terry Gardiner, were also directors of Gregory Resources Ltd during
the financial year.
The Company received a total of $96,500 (2020: $122,853) under an Office Services Agreement with Galan
Lithium Ltd. Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive
Director, Mr Terry Gardiner, is also a director of Cazaly Resources Ltd.
The Company paid $79,620 (2020: $Nil) for the provision of Company Secretarial services to Galan Lithium
Ltd. Galan Lithium Ltd is considered by the Company to be a related Party, as a Galan Non-Executive
Director, Mr Terry Gardiner, is also a director of Cazaly Resources Ltd.
5.
AUDITORS REMUNERATION
Remuneration of the auditor for:
- Auditing or reviewing the financial report
6.
INCOME TAX EXPENSE
The components of the tax expense/(income) comprise:
Current tax
Deferred tax
2021
$
2020
$
17,540
17,540
22,500
22,500
-
-
-
-
-
-
(a)
The prima facie tax on profits/(losses) from ordinary activities
before income tax is reconciled to the income tax as follows:
Profit/(loss) from continuing operations
716,577
1,719,306
Prima facie tax benefit on loss from ordinary activities before
income tax at 26.0% (2019: 27.5%)
186,310
472,809
Add/(subtract):
Tax effect of:
Non-assessable income
Other non-allowable items
Effect of tax losses derecognised
Recognition of previously unrecognised prior year tax losses
Utilisation of previously unrecognised capital losses
Tax benefit of deductible equity raising costs
Movement in unrecognised temporary differences
Income tax expense (benefit) attributable to entity
(13,000)
17,682
73,838
-
(107,441)
(3,826)
(153,544)
-
(b)
Recognised deferred tax assets at 25.0% (2020: 27.5%)
comprise the following:
Carry forward revenue losses
Capital raising and future black hole deductions
Provisions and accruals
Other
Less: Set off of deferred tax liabilities
1,058,126
40,093
126,489
60,688
1,285,396
(1,285,396)
-
(13,750)
98,808
-
(273,167)
(216,378)
(8,267)
(60,055)
-
765,978
-
46,554
69,280
881,812
(881,812)
-
36
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
Recognised deferred tax assets at 25.0% (2020: 27.5%)
comprise the following:
Exploration expenditure
Other
Less: Set off of deferred tax asset
(c)
Deferred tax recognised directly in equity:
Relating to equity raising costs
Unrecognised deferred tax assets at 25.0% (2020: 27.5%)
(d)
comprise the following:
Deferred tax assets have not been recognized in respect to
the following as they are not considered to have met the
recognition criteria:
2021
$
2020
$
960,489
325,547
1,285,396
(1,285,396)
-
865,933
15,879
881,812
(881,812)
-
-
-
-
-
Deductible temporary differences
Tax revenue losses
Tax capital losses
4,500
1,681,119
-
1,685,619
171,400
1,783,085
113,639
2,068,124
The corporate tax rates on both recognised and unrecognised deferred tax assets and deferred tax liabilities
have been calculated with respect to the tax rate that is expected to apply in the year the deferred tax
asset is realised or the liability is settled.
7.
CASH AND CASH EQUIVALENTS
Cash at bank
Petty cash
8.
TRADE AND OTHER RECEIVABLES
Current
Other receivables
9,593,490
200
9,593,690
10,085,362
200
10,085,562
133,893
133,893
59,396
59,396
Other receivables normally have 30-60 day terms. At 30 June 2021, $36,916 (2020: $18,311) is receivable from
companies related to the Directors.
Non-Current
Bonds
Bonds are term deposits, held by way of bank guarantee.
9.
FINANCIAL ASSETS
Current
Financial assets, at fair value through profit or loss:
Australian listed shares at fair value
Unlisted Australian public company shares
49,679
49,679
59,717
59,717
2,491,151
-
2,491,151
1,514,427
-
1,514,427
37
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
10.
PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment
At cost
Accumulated depreciation
Office Furniture and Equipment
At cost
Accumulated depreciation
Motor Vehicle
At cost
Accumulated depreciation
2021
$
2020
$
346,273
(327,266)
19,007
330,010
(320,532)
9,478
43,638
(43,638)
-
65,878
(61,380)
4,498
23,505
43,638
(43,638)
-
65,878
(60,080)
5,798
15,276
Movement in the carrying amounts for each class of property, plant and equipment between the beginning
and end of the current financial year.
Balance at the beginning of the year
Additions
Disposals/write offs
Depreciation expense
Carrying amount at the end of the year
Balance at the beginning of the year
Additions
Disposals/write offs
Depreciation expense
Carrying amount at the end of the year
Plant and
Equipment
$
9,478
16,263
-
(6,734)
19,007
Plant and
Equipment
$
15,442
3,679
(2,750)
(6,893)
9,478
2021
Office
Furniture
$
-
-
-
-
-
2020
Office
Furniture
$
2,496
2,147
(4,643)
-
-
Motor
Vehicles
$
5,798
-
-
(1,300)
4,498
Motor
Vehicles
$
7,481
-
-
(1,683)
5,798
Total
$
15,276
16,263
-
(8,034)
23,505
Total
$
25,419
5,826
(7,393)
(8,576)
15,276
38
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
11.
EXPLORATION AND EVALUATION ASSETS
Non-Current
Costs carried forward in respect of areas of interest in:
2021
$
2020
$
Exploration and evaluation phases at cost
5,294,691
4,324,283
Movement – exploration and evaluation
Brought forward
Exploration expenditure capitalised during the year
Acquisitions
Exploration expenditure capitalised on tenements sold during the
year
Mt Venn acquisition costs transferred to loss on subsidiary
Exploration expenditure written off
4,324,283
1,179,824
335,000
-
-
(544,414)
4,128,235
472,983
-
406,552
(289,268)
(394,219)
5,294,691
4,324,283
Exploration expenditure, including tenement acquisitions, totalled $1,514,824 for the year (2020: $879,535).
The main expenditure was on the Ashburton, Halls Creek, the Hamersley JV and new project generation.
Exploration expenditure written off for the year was $544,414 (2020: $394,219). The main write offs related to
new project generation costs and expenditures relating to the various tenements and/or applications that
were relinquished (including two Ashburton tenements) during the financial year.
The value of the Group’s interest in exploration expenditure is dependent upon:
-
-
-
the continuance of the Group’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or
alternatively, by their sale.
12.
TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accrued expenses
Creditors are non-interest bearing and settled on 30-45 day terms.
13.
PROVISIONS
Current
Provision for annual leave
Provision for long service leave
119,476
25,086
144,562
55,239
88,380
143,619
62,631
58,200
120,831
93,042
52,565
145,607
39
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
14.
ISSUED CAPITAL
369,563,267 fully paid ordinary shares (2020: 346,113,267)
with no par value
26,620,021
25,852,471
2021
$
2020
$
Ordinary Share Movements
30 June
2021
Number
30 June
2021
$
30 June
2020
Number
30 June
2020
$
Balance at the beginning of the year
Issue of shares at $0.0183 each
Issue of shares at $0.02745 each
Issue of shares at $0.02745 each
Issue of shares at $0.029 each
Issue of shares at $0.039 each
Issue of shares at $0.039 each
Less Fair value of options exercised
Less return of capital
Balance at the end of the year
(i)
(ii)
(ii)
(iii)
(iv)
(v)
(vi)
346,113,267
-
-
-
14,700,000
6,500,000
2,250,000
369,563,267
-
-
369,563,267
25,852,471
-
-
-
426,300
253,500
87,750
26,620,021
-
-
26,620,021
287,862,168
28,331,099
27,720,000
2,200,000
-
-
-
346,113,267
-
-
346,113,267
31,288,827
518,459
760,914
60,390
-
-
-
32,628,590
480,590
(7,256,709)
25,852,471
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Shares issued on 23 August 2019 for the full conversion of notes and accrued interest under the 2018 note deed.
Shares issued on 10 September 2019 (27,720,000) and 17 September 2019 (2,200,000) for the full conversion of
options issued under the 2018 note deed.
Shares issued on 22 July 2020 (200,000), 19 August 2020 (5,630,000), 5 March 2021 (500,000), 15 March 2021
(1,100,000), 19 March 2021 (1,520,000), 26 March 2021 (2,300,000) and 1 April 2021 (3,450,000) for the conversion of
$0.029 options. Approved by shareholders on 6 June 2019.
Shares issued 19 November 2020 on the conversion of $0.039 options by Directors. Approved by shareholders on 26
November 2018.
Shares issued on 25 November 2020 on the conversion of $0.039 options by employees.
On 18 October 2019, there was a Board Determination that subject to business as usual and Shareholder Approval
being obtained there would be a cash distribution of $0.026 per share ($9 million) to Shareholders in December
2019. This followed the completion of the 100% sale of the Parker Range Iron Ore Project (ASX announcement dated
30 August 2019) and the 80% sale of the Mt Venn Project (ASX announcement dates 20 September 2019). The cash
distribution comprised a payment of $0.005 per Share as a declared unfranked dividend plus a payment of $0.021
per Share as a return of capital. The Record Date for both the unfranked dividend and the return of capital was 25
November 2019. Shareholder approval was obtained at the Company’s AGM held on 20 November 2019.
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to
the number of shares held and in proportion to the amount paid up on the shares held. At shareholders
meetings each ordinary share is entitled to one vote in proportion to the paid-up amount of the share when
a poll is called, otherwise each shareholder has one vote on a show of hands.
Option Movements
Exercise Period
On or before 22/10/20
On or before 26/11/20 (i)
On or before 31/3/21(ii)
On or before 19/11/22 (iii)
On or before 8/3/24 (iv)
On or before 11/6/24 (iv)
Exercise
Price (*)
Number on
issue at 30
June 2020
Issued
during the
year
Exercised/
Expired/
Cancelled
Number on
issue at 30
June 2021
$0.195
$0.039
$0.029
$0.0495
$0.05
$0.066
2,500,000
8,750,000
15,000,000
10,000,000
-
-
-
-
-
-
2,000,000
500,000
(2,500,000)
(8,750,000)
(15,000,000)
-
-
-
-
-
-
10,000,000
2,000,000
500,000
Total options
36,250,000
2,500,000
(26,250,000)
12,500,000
40
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
14.
ISSUED CAPITAL (Cont’d)
(*) Where applicable, the exercise price of options has been adjusted by the return of capital ($0.021 per share) as
approved by shareholders at Company’s AGM held on 20 November 2019.
(i)
(ii)
(iii)
(iv)
6,500,000 options were issued to directors on 26 November 2018 (approved at Company’s AGM held on 23
November 2018) at an original exercise price of $0.06. 2,250,000 options were issued to employees under the Cazaly
employee incentive scheme on 21 January 2019 (awarded to employees on 20 December 2018) at an original
exercise price of $0.06.
Issued under a placement announced on 18 March 2019 with an original exercise price of $0.05. 14,500,000 options
were issued on 21 March 2019 and 500,000 options were issued to a Director (approved by shareholders on 6 June
2019) on 10 June 2019.
Issued to directors on 20 November 2019 with an original exercise price of $0.0705 (approved at Company’s AGM
held on 20 November 2019).
Issued to employees under the Cazaly employee incentive plan
Options are issued to directors, employees and consultants. The options may be subject to performance
criteria, and are issued to directors, employees and consultants to increase goal congruence between
executives, directors and shareholders. Options carry no dividend or voting rights. The fair value of share
options issued during the year was $63,517.
Allottee
Employee
Employee
Number of
Options
Fair Value at
Grant Date
per Option
Estimated
Volatility
Life of Option
(years)
Exercise
Price
Share Price at
Grant Date
Risk Free
Interest Rate
2,000,000
$0.02375
500,000
$0.03204
100%
100%
3.00
3.00
$0.05
$0.066
$0.041
$0.055
0.75%
0.75%
Capital risk management
The Board controls the capital of the Group in order to provide the shareholders with adequate returns and
ensure that the Group can fund its operations and continue as a going concern. The Group’s capital includes
ordinary share capital. There are no externally imposed capital requirements.
The working capital position of the Group at 30 June 2021 and 30 June 2020 are as follows:
Par
Cash and cash equivalents
Trade and other receivables
Financial assets
Current liabilities
Working capital position
15. OPTION RESERVE
2021
$
2020
$
9,593,690
133,893
2,491,151
(375,248)
11,843,486
10,085,562
59,396
1,514,427
(349,199)
11,310,186
Opening balance
Equity based payments (refer note 16)
Fair value of exercised options transferred to share capital
Transfers to accumulated losses
Closing balance
358,724
63,517
-
-
422,241
777,627
255,438
(480,590)
(193,751)
358,724
This reserve is used to record the value of equity benefits provided to employees and directors as part of
their remuneration and for the value of equity benefits provided to vendors in respect of asset purchases.
16. ACCUMULATED LOSSES
Opening balance
Net earnings/(loss) attributable to members
Unfranked dividend paid (refer note 16 (viii)
Transfers from option reserve
Closing balance
(10,433,300)
716,761
-
-
(9,716,539)
(10,603,110)
1,719,359
(1,743,300)
193,751
(10,433,300)
41
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
17.
FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise receivables, payables, held-for-trading investments,
cash and short-term deposits.
The Board of Directors has overall responsibility for the oversight and management of the Group’s exposure
to a variety of financial risks (including fair value interest rate risk, credit risk, liquidity risk and cash flow interest
rate risk).
The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks
to minimise potential adverse effects on the financial performance of the Group.
Interest rate risks
The Group’s exposure to market interest rates relates to cash deposits held at variable rates. The Board
constantly analyses its interest rate exposure. Within this analysis consideration is given to potential renewals
of existing positions.
Credit risk
The maximum exposure to credit risk at balance date is the carrying amount (net of provision of doubtful
debts) of those assets as disclosed in the Statement of Financial Position and notes to the financial
statements. The Consolidated group has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
Credit risk related to balances with banks and other financial institutions is managed by the board. The
board’s policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s
rating of at least A+. All of the Group’s surplus funds are invested with AA and A+ Rated financial institutions,
the amount is $9,593,690 (2020: $10,085,562).
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors. The Consolidated group
manages liquidity risk by maintaining sufficient cash or credit facilities to meet the operating requirements
of the business and investing excess funds in highly liquid short term investments.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.
Maturity profile of financial instruments
The following tables detail the Group’s exposure to interest rate risk as at 30 June 2021 and 30 June 2020:
30 June 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets – held for trading
Floating
Interest
Rate
$
2,593,490
-
-
2,593,490
Fixed
Interest
maturing
in 1 year
or less
$
7,000,000
49,679
-
7,049,679
Non-
interest
bearing
2021
Total
$
$
200
133,893
2,491,151
2,625,244
9,593,690
183,572
2,491,151
12,268,413
Weighted average effective interest rate
0.29%
Financial Liabilities
Trade and other payables
-
-
-
-
144,558
144,558
144,558
144,558
42
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
30 June 2020
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets – held for trading
Floating
Interest
Rate
$
3,085,362
-
-
3,085,362
Fixed
Interest
maturing
in 1 year
or less
$
7,000,000
59,717
-
7,059,717
Non-
interest
bearing
2020
Total
$
$
200
59,396
1,514,427
1,574,023
10,085,562
119,113
1,514,427
11,719,102
Weighted average effective interest rate
0.37%
Financial Liabilities
Trade and other payables
Net Fair Values
-
-
-
-
143,619
143,619
143,619
143,619
The carrying value and net fair values of financial assets and liabilities at balance date are:
Financial assets
Cash and deposits
Receivables
Investment held for trading
Financial liabilities
Payables
2021
2020
Carrying
Amount
$
Net fair
Value
$
Carrying
Amount
$
Net fair
Value
$
9,593,690
183,572
2,491,151
12,268,413
9,593,690
183,572
2,491,151
12,268,413
10,085,562
119,113
1,514,427
11,719,102
10,085,562
119,113
1,514,427
11,719,102
144,558
144,558
144,558
144,558
143,619
143,619
143,619
143,619
The financial instruments recognised at fair value in the statement of financial position have been
analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making
the measurements. All financial instruments measured at fair value are level one, meaning fair value is
determined from quoted prices in active markets for identical assets.
Sensitivity Analysis -Interest Rate Risk
The Company has performed sensitivity analysis relating to its exposure to interest rate risk at balance
date. This sensitivity analysis demonstrates the effect on the current year results and equity which could
result from a change in these risks.
•
•
•
•
Change in loss
Increase in interest rate by 100 basis points
Decrease in interest rate by 100 basis points
Change in equity
Increase in interest rate by 100 basis points
Decrease in interest rate by 100 basis points
2021
$
95,805
(95,805)
95,805
(95,805)
2020
$
100,690
(100,690)
100,690
(100,690)
43
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
Par
18.
EARNINGS PER SHARE
a)
Reconciliation of earnings to profit or loss:
2021
$
2020
$
Earnings/(loss) for the year
Earnings/(loss) used to calculate basic and diluted EPS
716,577
716,577
1,719,306
1,719,306
b) Basic and diluted weighted average number of ordinary shares
outstanding during the year used in calculating dilutive EPS
19. CASH FLOW INFORMATION
Reconciliation of cash flows from operating activities with
profit/(loss) after income tax
Profit/(Loss) after income tax
Non-operating cash flows in loss for the year:
Depreciation
Property, plant and equipment written off
Net (Gain)/ Loss on sale of shares
Finance costs on convertible note
Net profit on the sale of exploration assets
Net loss on the sale of subsidiary
Employee & Consultant equity settled transactions
Fair value adjustment to investments
Exploration write-off
Changes in assets and liabilities:
Decrease/(increase) in trade receivables and prepayments
Increase/(decrease) in trade payables, accruals and
employee entitlements
Increase in exploration
2021
No. of Shares
2020
No. of Shares
369,563,267
336,137,190
716,577
1,719,306
77,898
-
(996,942)
11,890
-
-
63,517
(1,296,883)
543,522
14,398
7,393
1,300
157,323
(3,917,005)
135,138
255,438
(468,047)
394,219
(64,459)
11,625
(22,941)
-
(19,359)
-
Cash outflow from operations
(967,821)
(1,708,271)
20. COMMITMENTS
In order to maintain rights of tenure to mining tenements, the Group would have the following discretionary
exploration expenditure requirements up until expiry of leases. These obligations, which are subject to
renegotiation upon expiry of the leases, are not provided for in the financial statements and are payable:
No longer than one year
Longer than one year, but not longer than five years
Longer than five years
63,941
201,994
-
265,935
34,230
112,674
-
146,904
If the Group decides to relinquish certain leases and/or does not meet these obligations, assets recognised in
the statement of financial position may require review to determine the appropriateness of carrying values.
The sale, transfer or farm-out of exploration rights to third parties will reduce or extinguish these obligations.
44
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
21. CONTROLLED ENTITIES
Parent Entity
Cazaly Resources Limited
Controlled Entities
Cazaly Iron Pty Ltd
Sammy Resources Pty Ltd
Cazroy Pty Ltd
Baker Fe Pty Ltd
Baldock Fe Pty Ltd
Lockett Fe Pty Ltd
Hase Fe Pty Ltd
Caz Yilgarn Pty Ltd
Discovery Minerals Pty Ltd
Kunene North Pty Ltd
Philco 173 (Pty) Ltd
22. OPERATING SEGMENTS
Incorporation Country
Percentage Owned
2021
2020
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Namibia
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
95%
100%
100%
100%
100%
100%
100%
100%
100%
80%
100%
95%
The Group has identified its operating segments based on the internal reports that are reviewed and used
by the Board of Directors in assessing performance and determining the allocation of resources. The Group
is managed primarily on the basis of its exploration and corporate activities. Operating segments are
therefore determined on the same basis.
Exploration
Segment assets, including acquisition cost of exploration licenses, all expenses related to the tenements and
profit on sale of tenements are reported on in this segment.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable
on the basis of their nature and physical location. Unless indicated otherwise in the segment assets note,
deferred tax assets and intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and
the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group
as a whole and are not allocated. Segment liabilities include trade and other payables.
Unallocated items
Non-recurring items of revenue or expenses are not allocated to operating segments as they are not
considered part of the core operations of any segment.
2021
Revenue
Interest received
Other
Total segment revenue
Segment net operating profit (loss)
before tax
Depreciation
Impairment of exploration assets
Share based payments
Segment assets
Exploration expenditure
Property, plant & equipment
Segment liabilities
Exploration
$
Unallocated
$
Total
$
-
70,401
70,401
(473,121)
-
543,522
-
5,294,693
-
63,390
53,006
202,300
255,306
1,189,6978
77,898
-
63,517
-
23,505
364,434
53,006
272,701
325,707
716,577
77,898
543,542
63,517
5,294,693
23,505
427,824
45
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
2020
Revenue
Interest received
Other
Total segment revenue
Segment net operating profit (loss)
before tax
Depreciation
Impairment of exploration assets
Share based payments
Segment assets
Exploration expenditure
Property, plant and equipment
Segment liabilities
Exploration
$
Unallocated
$
Total
$
-
3,917,005
3,917,005
3,522,786
-
394,219
-
4,324,283
4,324,283
-
8,555
149,730
212,080
361,810
(1,803,480)
14,398
-
255,438
11,949,794
-
15,276
503,015
149,730
4,129,085
4,278,815
1,719,306
14,398
394,219
255,438
16,274,078
4,324,283
15,276
511,570
23.
PARENT ENTITY DISCLOSURES
(a) Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves:
Equity settled employee benefits
Retained profits
Total Equity
(b) Statement of Profit or Loss and Other Comprehensive
Income
Total profit/ (loss)
Total comprehensive income
Loans to Controlled Entities
2021
$
2020
$
9,649,342
8,251,720
10,204,675
3,966,930
17,901,062
14,171,605
319,909
52,576
349,195
162,371
372,485
511,566
26,620,029
25,852,479
422,241
(9,513,693)
358,724
(12,551,164)
17,528,577
13,660,039
473,995
15,064,384
473,995
15,064,384
Loans are provided by Cazaly (‘the Parent’) to its controlled entities for their respective operating activities.
Amounts receivable from controlled entities are non-interest bearing with no fixed term of repayment. The
eventual recovery of the loan will be dependent upon the successful commercial application of these
projects or the sale to third parties.
46
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
24.
EVENTS SUBSEQUENT TO REPORTING DATE
The Directors are not aware of any matters or circumstances at the date of the report, other than those
referred to in this report or the financial statements or notes thereto, that has significantly affected or may
significantly affect the operations, the results of operations or the state of affairs of the Group in subsequent
financial years.
25. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Liabilities
Kaoko Project
As announced on 26 March 2018, the Company acquired an option to earn the rights to a 95% interest in
the Kaoko Kobalt Project (‘Kaoko Project’) in Namibia. The following contingent liabilities remain for Cazaly’s
registered 95% interest at 30 June 2021:
Under the KDN JV:
KDN JV’s partner’s remaining 5% free carried to a definitive feasibility study and to be NEEEF compliant
(governmental draft “New Equitable Economic Empowerment Framework”).
Under the Kunene Purchase Agreement:
The Company acquired 100% of the issued capital of Kunene North Pty Ltd and therefore its rights under the
KDN JV, and has the following commitments outstanding:
i)
Issue 10.5 million fully paid Cazaly shares upon the delineation of a JORC compliant mineral resource
containing at least 10,000t of contained cobalt (or other metal equivalent)
ii) Pay A$1 million (or issue fully paid Cazaly shares to that amount) upon a formal Decision to Mine
Halls Creek
As announced on 12 November 2020, the Company acquired an 80% interest in the Halls Creek project from
3D Resources Limited bringing Cazaly to a 100% interest in the project. There is a contingent liability of
$250,000 due to 3D Resources Limited upon production of minerals in a commercial and saleable quantity
and there is a royalty obligation to Squadron Resources Pty Ltd on the tenement (M80/247). The royalty
payable is a 1.5% net smelter return of production attributable to the tenement.
Contingent Asset
On 19 August 2019, the sale of Parker Range to Mineral Resources was completed and Cazaly received the
$20 million consideration. A royalty is also due at the rate of A$0.50 for every dry metric tonne of iron ore
extracted and removed from the Parker Range area after the first 10 million dry metric tonnes of production.
47
NOTES TO THE FINANCIAL STATEMENTS
Cazaly Resources Limited Annual Report 2021
26.
SHARE BASED PAYMENTS
The following table illustrates the number and weighted average exercise prices of and movements in all
options on issue during the year (please also refer to Note 16 for further details on equity-based payments
issued during the year):
2021
2020
Number of
Options
Weighted
Ave Exercise
Price $
Number of
Options
Weighted
Ave Exercise
Price $
Balance at beginning of reporting
period
Expired during the year
Exercised during the year
Issued during the year
Balance at end of reporting period
Exercisable at end of reporting period
36,250,000
(2,800,000)
(23,450,000)
2,500,000
12,500,000
12,500,000
0.063
0.177
0.033
0.053
0.093
67,420,000
0.055
(11,250,000)
(29,920,000)
10,000,000
36,250,000
36,250,000
0.094
0.02745
0.0705
0.063
The options outstanding at 30 June 2021 had a weighted average remaining life of 1.66 years (2020 – 1.08 years). The
weighted average fair value of the options outstanding at 30 June 2021 was $0.025 (2020 - $0.01).
27.
RIGHT OF USE ASSET AND LEASE LIABILITY
Right-of-use assets
Office lease
At carrying amount
Additions
Less: Accumulated amortisation
Leases
2021
$
215,417
-
(64,050)
151,367
2020
$
221,239
-
(5,822)
215,417
As of 30 June 2021, the net carrying amount of the office held under a lease arrangement is $162,431.
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and
borrowings) and the movements during the period:
As at 1 July 2020
Additions
Accretions of interest
Payments
As at 30 June 2021
Current
Non-current
The following are the amounts recognised in profit or loss:
Depreciation
Interest expense on lease liabilities
Total amount recognised in profit or loss
The Group had total cash outflows for leases of $71,803 in 2021 (2020: NIL).
222,344
-
11,890
(71,803)
162,431
52,576
109,855
58,228
11,890
70,118
-
221,238
1,106
-
222,344
59,973
162,371
5,822
1,106
6,928
48
DIRECTORS’ DECLARATION
Cazaly Resources Limited Annual Report 2021
In accordance with a resolution of the directors of Cazaly Resources Limited, the directors of the Company
declare that:
1.
the financial statements and notes, as set out, are in accordance with the Corporations Act 2001
and:
a.
b.
comply with Australian Accounting Standards, which, as stated in accounting policy Note 1
to the financial statements, constitutes compliance with International Financial Reporting
Standards (IFRS); and
give a true and fair view of the financial position as at 30 June 2021 and of the performance
for the year ended on that date of the consolidated group;
in the directors’ opinion there are reasonable grounds to believe that the company will be able to
pay its debts as and when they become due and payable; and
the directors have been given the declarations required by s 295A of the Corporations Act 2001 from
the Chief Executive Officer and Chief Financial Officer.
2.
3.
On behalf of the Directors
Clive Jones
Executive Director
30 September 2021
49
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAZALY RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cazaly Resources Limited (“the Company”) and its subsidiaries
(“the Consolidated Entity”), which comprises the consolidated statement of financial position as at
30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting
policies, and the directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June
2021 and of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require
that we comply with relevant ethical requirements relating to audit engagements and plan and perform
the audit to obtain reasonable assurance about whether the financial report is free from material
misstatement. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are independent of the
Consolidated Entity in accordance with the auditor independence requirements of the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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
Evaluation and Evaluation Assets
Our procedures included, amongst others:
(Refer to Note 11)
• Exploration and evaluation is a key
audit matter due to:
• The significance of the balance to the
Consolidated Entity’s financial position.
• The level of judgement required in
evaluating management’s application of
the requirements of AASB 6 Exploration
of Mineral
for
and Evaluation
Resources. AASB 6 is an industry
specific accounting standard requiring
significant
the
application
of
judgements, estimates and
knowledge. This
industry
includes specific
requirements for expenditure to be
capitalised as an asset and subsequent
requirements which must be complied
for capitalised expenditure
with
continue to be carried as an asset.
to
• Assessed management’s determination of
its areas of interest for consistency with
the definition in AASB 6. This involved
analysing the tenements in which the
consolidated entity holds an interest and
for
the exploration programs planned
those tenements.
• For each area of interest, we assessed the
Consolidated Entity’s rights to tenure by
corroborating to government registries and
evaluating agreements in place with other
parties as applicable;
• We tested the additions to capitalised
expenditure for the year by evaluating a
for
sample of
recorded expenditure
consistency to underlying records, the
the
capitalisation
requirements
of
Consolidated Entity’s accounting policy
and the requirements of AASB 6;
• We considered the activities in each area
of interest to date and assessed the
planned future activities for each area of
interest by evaluating budgets for each
area of interest.
• We assessed each area of interest for one
or more of the following circumstances that
may indicate impairment of the capitalised
expenditure:
o
the licenses for the right to explore
expiring in the near future or are
not expected to be renewed;
o substantive expenditure for further
exploration in the specific area is
neither budgeted or planned
o decision
the
Consolidated Entity to discontinue
intent
by
or
activities in the specific area of
of
interest
lack
due
to
commercially viable quantities of
resources; and
o data indicating that, although a
development in the specific area is
likely to proceed, the carrying
amount of the exploration asset is
unlikely to be recovered in full
from successful development or
sale; and
o We assessed the appropriateness
of the related disclosures in note
11 to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2021, but does not include
the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the
Consolidated Entity or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are
to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s 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 Consolidated Entity’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 Consolidated Entity’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 Consolidated Entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report.
We are responsible for the direction, supervision and performance of the Consolidated Entity
audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
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
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2021. The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Partner
Dated at Perth this 30th September 2021
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2021
Additional information required by Australian Securities Exchange Limited and not shown elsewhere in this
Annual Report is as follows. The information is provided as at 20 September 2021.
DETAILS OF HOLDERS OF EQUITY SECURITIES
ORDINARY SHAREHOLDERS
There are 369,563,267 fully paid ordinary shares on issue, held by 2,485 shareholders. Each member entitled
to vote may vote in person or by proxy or by attorney and on a show of hands every person who is a member
or a representative or a proxy of a member shall have one vote and on a poll every member present in
person or by proxy or attorney or other authorised representative shall have one vote for each share held.
TWENTY LARGEST SHAREHOLDERS (AS AT 20 SEPTEMBER 2021)
Fully Paid Ordinary
Ordinary Shareholders
Kingsreef Pty Ltd (NB & DL Family A/c)
Mr Clive Bruce Jones (Alyse Investment A/C)
ACN 139 886 025 Pty Ltd
Jetosea Pty Ltd
Citicorp Nominees Pty Ltd
Mrs Alison Ovenden
Mr Anthony Robert Ramage
Mr C W Chalwell & Mr I W Wilson (Chalwell pension Fund A/c)
Mr Thomas Francis Corr
CS Fourth Nominees (HSBC Cust Nom Au Ltd 11)
Kingsreef Pty Ltd
Mr Terry James Gardiner
Raymond Gardener & Hineaka Black (Tumeke S/Fund)
Mr Nathan McMahon
Mr Anthony Ramage (ARR S/F A/C)
BNP Paribas Noms Pty Ltd (DRP A/c)
Maincoast Pty Ltd
Mr Derek Patrick Knox
Yall Super Fund
Brevmar Pty Ltd (Glen Invest S/Fund)
Number
30,070,952
20,829,904
16,917,640
15,655,446
9,569,442
7,777,777
6,950,000
6,000,000
5,880,058
5,623,423
5,343,550
5,050,000
4,900,000
4,793,755
4,650,000
3,750,000
3,473,849
3,100,000
3,032,366
3,000,000
%
8.14
5.64
4.58
4.24
2.59
2.10
1.88
1.62
1.59
1.52
1.45
1.37
1.33
1.30
1.26
1.01
0.94
0.84
0.82
0.81
166,368,162
45.02%
VOTING RIGHTS
Subject to any rights or restrictions for the time being attached to any class or classes (at present there are
none) at general meetings of shareholders or classes of shareholders:
(a) each shareholder entitled to vote, may vote in person or by proxy, attorney or representative;
(b) on a show of hands, every person present who is a shareholder or a proxy, attorney or representative
of a shareholder has one vote; and
(c) on a poll, every person present who is a shareholder or a proxy, attorney or representative of a
shareholder shall, in respect of each fully paid share held, or in respect of which he/she has appointed
a proxy, attorney or representative, have one vote for the share, but in respect of partly paid shares
shall have a fraction of a vote equivalent to the proportion which the amount paid up bears to the
total issue price for the share.
HOLDERS OF NON-MARKETABLE PARCELS
There are 1,242 shareholders who hold less than a marketable parcel of shares.
55
ADDITIONAL SHAREHOLDER INFORMATION
Cazaly Resources Limited Annual Report 2021
DISTRIBUTION OF SHARE HOLDERS (AS AT 20 SEPTEMBER 2021)
1 to
1,001 to
5,001 to
10,001 to
1,000
5,000
10,000
100,000
100,001 and over
SUBSTANTIAL SHAREHOLDERS
Ordinary
Shares
130,724
1,613,975
2,557,754
35,635,944
329,624,870
369,563,267
As at report date, the following shareholders are recorded as Substantial Shareholders pursuant to their
last notices lodged in accordance with section 671B of the Corporations Act:
Substantial Shareholder
Ordinary Shares held
% Held
Nathan McMahon & associated entities
Clive Jones & associated entities
Anthony Ramage and associated entities
37,363,256
18,329,904
18,500,000
10.61%
5.30%
5.35%
The shares and percentages held, as set out above, are based on the total issued share capital at the
date of notification to the Company of the relevant substantial shareholder interest.
SHARE BUY-BACKS
There is no current on-market buy-back scheme.
OTHER INFORMATION
Cazaly Resources Limited, incorporated and domiciled in Australia, is a public listed Company limited by
Shares.
INTEREST IN MINING TENEMENTS AS AT 20 SEPTEMBER 2021
TID
PROJECT
ENTITY
% INT
TID
PROJECT
ENTITY
% INT
Not
Managed
M47/1450
E80/4808
E38/3111
E38/3150
E38/3581
E31/1019
E31/1020
M31/0427
E09/2346
HAMERSLEY
MCKENZIE SPRINGS
MOUNT VENN
MOUNT VENN
MOUNT VENN
CAROSUE
CAROSUE
CAROSUE
ERRABIDDY
Lockett
Sammy
CAZ
CAZ
CAZ
CAZ
CAZ
CAZ
Sammy
30
30
20
20
20
10
10
10
20
Managed
M80/0247
E80/5307
E08/3259 *
E08/3260 *
E08/3261 *
E08/3262 *
E08/3265 *
E08/3272 *
E38/3425
E38/3426
E80/5446 *
E70/5743 *
Czech Rep *
Czech Rep *
MT ANGELO
CAZ
HALLS CREEK
CAZ
ASHBURTON 1
CAZ
ASHBURTON 2
CAZ
ASHBURTON 3
CAZ
ASHBURTON 4
CAZ
ASHBURTON 5
CAZ
HARDEY RIVER
CAZ
YABBIE
Sammy
YABBIE
Sammy
CAZ
PANTON NORTH
MOUNT LENNARD Hase
Horní Věžnice
Brzkov II
Discovery
Discovery
Namibia
EPL 6667
Kunene
* – application
100
100
100
100
100
100
100
100
100
100
100
100
80
80
95
56