Level 15, 197 St Georges Terrace
Perth, Western Australia 6000
Telephone: +81 8 9282 5889
Email:
mailroom@conico.com.au
Website: www.conico.com.au
ABN 49 119 057 457
for the Year Ended
30 June 2021
Cover Photo: Cascata Prospect - Altered amphibolite with epidote (green) and oxidised sulphide (rust colour).
Table of Contents
Highlights for the Year to 30 June 2021
Corporate Directory
Review of Operations
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 Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information for Listed Public Companies
Tenement Schedule
4
5
6
14
19
20
21
22
23
24
38
39
43
44
2
3
HIGHLIGHTS FOR THE YEAR TO 30 JUNE 2021
Greenland Exploration:
Completed acquisition of 100% of England & Wales registered Longland Resources
Ltd (“Longland”).
Longland co-founder and director Mr Thomas Abraham-James appointed CEO of
Longland Resources, responsible for managing and overseeing all Greenland
exploration activities.
2020 Field season at Ryberg confirmed prospectivity of both Miki Fjord (Ni, Cu, Co,
Pd, Au) and Sortekap (Au, Ni) prospects returning anomalous rock chips and
geophysical anomalies.
Planning for 2021 field season including further reconnaissance exploration at the
Mestersvig Project, diamond drilling and a project wide aeromagnetic-radiometric
survey at the Ryberg Project.
MT THIRSTY COBALT PROJECT:
Discussions on Native Title Agreement ongoing.
Rising cobalt and nickel prices over FY 2021 have continued to improve project
economics at Mt Thirsty.
Review of existing Pre-Feasibility Study flowsheet including the examination of
potential optimisation opportunities.
4
CORPORATE DIRECTORY
DIRECTORS:
Gregory H Solomon LLB (Non-Executive Chairman)
Guy T Le Page B.A., B.Sc., B.App.Sc. (Hons), M.B.A., M.Fin.Plan., GradDipAppFin&Inv,
F.FIN., MAusIMM (Executive)
Douglas H Solomon B.Juris. LLB (Hons) (Non-Executive)
James B Richardson Dip, Fin Plan (Non-Executive)
COMPANY SECRETARY:
Aaron P Gates B.Com CA AGIA
REGISTERED OFFICE:
Level 15,
197 St Georges Terrace
Perth, Western Australia 6000
Tel +61 8 9282 5889
Email: mailroom@conico.com.au
Website: www.conico.com.au
SOLICITORS:
Solomon Brothers
Level 15,
197 St Georges Terrace
Perth, Western Australia 6000
AUDITORS:
Nexia Perth Audit Services Pty Ltd
Level 3
88 William Street
Perth, Western Australia 6000
SHARE REGISTRY:
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia 6009
STOCK EXCHANGE LISTING:
ASX Code: CNJ (ordinary shares)
Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the
Australian Securities Exchange Limited.
5
REVIEW OF OPERATIONS
RYBERG PROJECT
(100% Longland Resources Ltd – MEL2017/06 & MEL-S2019/38)
FIGURE 1: Ryberg Project.
6
The Ryberg Project (Figure 1) is located on the east coast of Greenland, approximately 345km NW of Iceland
and covers 4,521km2 . Previous surface geochemistry and geophysical surveys indicative the license area is
highly prospective for precious and base metals. Immediately to the west of Ryberg is Major Precious Metals´
Skaergaard Project and Greenland Silver Moly Resources´ Flammefjeld Project.
Abundant surficial occurrences of magmatic sulphide mineralisation (Cu-Ni-Co-Pd-Au) have been identified
at Ryberg with the most advanced prospect known as the Miki Prospect. Another prospect known as Sortekap
has returned elevated gold and nickel rock chip results associated with an interpreted Archean greenstone
shear zone.
ACCESS
Access is via vessel, or aircraft that can land within the licence area at an airstrip that is serviced by an
Icelandic aviation company. The project is not located within a National Park, nor is it nearby to a population
centre, with the nearest town of Ittoqqortoormiit being 350km to the NE.
PROSPECTS
Miki Prospect (Cu-Ni-Co-Pd-Au)
Lithologies: Numerous mafic/ultramafic intrusions hosted in a sedimentary basin.
Mineralisation: Visible globular magmatic sulphide mineralisation at surface.
Geochemistry: Surface rock-chip samples grading up to 2.2% Cu, 0.8% Ni, 0.1% Co, 3.3g/t Pd and
0.2g/t Au.
Targets: Three electro-magnetic (EM) geophysical targets at 80-200 metres vertical depth.
FIGURE 2: EM targets at the Miki Prospect.
FIGURE 3: Cu-Pd-Au rich magmatic sulphide (circled) at
the Miki Prospect.
7
Sortekap Prospect (Au-Ni)
Lithologies: Archaean greenstones containing abundant quartz veins and ultramafic intrusions.
Visible Mineralisation: Sulphide-bearing veins containing gold, and nickel-bearing sulphides at surface.
Geochemical anomalies: Surface rock-chip sampling grades up to 2.7g/t Au & 0.3% Ni.
Targets: Induced Polarisation (IP) targets.
ACTIVITIES
2020 field season
Thomas Abraham-James
Field personnel were on site over August and
September 2020, including Longland director and
geologist
4),
geophysical technicians, field assistants and pilots. On
the Miki magmatic sulphide target a total of 74
electromagnetic (EM) geophysical survey stations
were completed, and surface rock chips collected for
analysis. At the Sortekap gold prospect further surface
rock chip samples were sent for analysis and an
induced polarisation (IP) survey was undertaken.
(Figure
FIGURE 4: Longland Resources CEO Thomas Abraham-
James.
RESULTS
Miki Prospect
The EM data was processed and interpreted by an independent geophysicist, with no evident false-positive
anomalies detected. The standout target is ME1 (Figure 2), with modelled plates forming a half U shape gently
dipping to the northeast that is interpreted to represent a chonolith with sulphides present at its base (refer
Figure 3). The interpreted chonolith is oriented adjacent to the Miki Fjord Dyke, trending ENE-WSW and is
approximately 300m wide, and is greater than 300m in length – total length being unknown as it is open to the
west where it was not covered by the survey.
The EM signal and knowledge of the surrounding geology suggests that the sulphides present are most likely
copper dominant, with appreciable amounts of palladium and gold.
Sortekap Prospect
The IP survey identified a large chargeable feature (Figure 5) that extends from the southern margin of the
survey area, to approximately the mid-point, a length of ~1km. This feature is interpreted to be a geological
structure (fault or shear) containing chargeable sulphides that is open at depth and along strike. It dips
approximately 30˚ south and is obscured from surface by approximately 20 vertical metres. The chargeability
readings are high, particularly in comparison to its surrounds and are likely to be due to greater than 5%
sulphide content (most abundant sulphides being pyrite and chalcopyrite).
Gold assays for the surface rock-chips retuned four samples grading over 0.1g/t gold, with the highest
concentration being 2.7g/t. The gold-bearing samples occur in amphibolite containing sulphides and garnet,
giving a mineralogical (therefore visual) constraint on the likely zone of gold concentration.
8
FIGURE 5: IP anomaly at the Sortekap Prospect, Ryberg Project.
MESTERSVIG PROJECT (100% Longland Resources Ltd – MEL2020/64 & MEL-S 2021/24)
The Mestersvig Project (Figure 6) is located on the east coast of Greenland, approximately 620km NW of
Iceland. The licence was granted in the reporting period and covers an area of 1,447km2. Within the license
area is Greenland Resources’ Malmbjerg molybdenum project, and to the north and south is Greenfield
Exploration and Independence Group Ltd’s (ASX: IGO) Frontier copper project. Adjacent to the Mestersvig
Project is the Mestersvig Danish military base, complete with airstrip and harbour.
9
FIGURE 6: Mestersvig Project, showing surface samples and gravity coverage.
Travel to site is by aircraft from Iceland to Constable Point Airport (located 150km south) and then onward to
Mestersvig via either helicopter or fixed wing flight. Travel within the Project is either by foot, ATV or helicopter.
10
ACTIVITIES
Field personnel were on site in August-September 2020, consisting of
Longland director and geologist Thomas Abraham-James, geophysical
technicians, field assistants and pilot. A total of 2,344 gravity stations were
achieved at 50m spacing and 200m between lines, with surface rock chips
collected and sent for analysis.
FIGURE 7: Mestersvig Project, rock chip sample 4958 showing massive
galena hosted in a quartz vein.
RESULTS
Nuldal Prospect
Field personnel traversed this vein from the coastline, up the mountainside where outcrop was discovered
containing massive galena (lead sulphide), hosted in a quartz vein. Two surface rock-chip samples were
collected and sent for analysis. The results are show below in Table 1, and a photo of sample 4958 in Figure 7.
Sample ID Easting
605,732
605,730
4958
4959
Northing
8,007,379
8,007,381
Year
2020
2020
Ag g/t
236
282
Cu %
0.91
0.77
Pb %
60.66
69.47
S %
7.32
9.58
Zn %
0.03
0.03
TABLE 1: Assay results for 2020 Nuldal surface samples
The vein also extends to the north into an area referred to as ‘Little Lead Valley’. While no analytical results are
present, a report from 1952 states “…several small fissure veins outcrop in the steep western walls of Blyryggen,
between 600-700m above sea-level. Some of them contain lead sulphide…”. The total strike length of the
‘Little Lead Valley’ veins and Nuldal combined is 4.5km.
The gravity covers the southern extent of the Nuldal Prospect, where the vein becomes obscured by scree.
There is a distinct gravity high in this location, showing what appears to be a linear feature that then bends to
the southwest and has a strike length of 2km (when combined with the ‘Little Lead Valley’ and Nuldal veins,
this gives a total prospective strike length of 6.5km. The gravity anomaly is in an accessible location on flat
ground nearby to Mestersvig Bay.
Sortebjerg Prospect
The Sortebjerg Prospect is located 10km south of the Blyklippen Mine and consists of a mineralised quartz vein
that contains dominantly sphalerite (zinc sulphide) mineralisation, with subordinate galena and chalcopyrite
(copper sulphide). The vein outcrops at surface in four locations, over a strike length of approximately 2.9km.
Four samples (Table 2) were sent for assay and the most anomalous results being 8.35% zinc (sample 4954),
and 6.96% copper & 3.42% lead (sample 4956).
Sample ID Sample Type
4954
4955
4956
4957
Rock chip
Rock chip
Rock chip
Rock chip
Cu%
0.03
<0.01
6.96
0.03
Pb%
0.28
0.01
3.42
<0.01
Zn%
8.35
0.02
0.016
<0.01
TABLE 2: Assay results for 2020 Sortebjerg surface samples.
11
Blyklippen Historic Mine
unexpected and welcome
An
finding the historic
discovery was
mine’s core
that
facility
storage
contains surface and underground
drill core from the mine and surrounds
that is remarkably intact (Figure 8).
The gravity response at Blyklippen has
a pronounced gravity low which is
likely due
the historic mining
operation where the opencut and
underground operations removed the
mineralised vein.
to
FIGURE 8: Core shed at the Blyklippen Mine, Mestersvig Project.
MT THIRSTY COBALT PROJECT
(50% Conico Ltd (operator): 50% Barra Resources Ltd – Joint Venture, MTJV)
FIGURE 9: Mt Thirsty Project, Norseman, Western Australia.
The Mt Thirsty Cobalt Project is located 16km north-northwest of Norseman, Western Australia (Figure 9). The
Project contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit that has the potential to emerge as a
significant cobalt producer. In addition to the Co-Ni Oxide Deposit, the Project also hosts nickel sulphide (Ni-S)
mineralisation.
12
The Mt Thirsty project is close to all necessary infrastructure (rail, road, power, water, and seaport) and, being
in a mining orientated state, has the potential to attract a variety of interested parties including end users of
cobalt. Mt Thirsty has the potential to become a major supplier to the burgeoning battery supply chain. The
great advantage of Mt Thirsty compared to other potential cobalt operations is the nature of the resource,
being a flat lying, continuous and thick deposit starting from near surface to around 70 metres below surface.
Due to intense oxidation, the deposit is very soft, fine grained and low in silica.
A Pre-Feasibility Study (PFS) was completed in 2020 which demonstrated the significant potential at the MTJV.
Highlights included:
Hydrometallurgical process is at atmospheric pressure and 70-90ºC utilising sulphur dioxide (SO2) as
the main reagent.
Study was based on a JORC 2012 Probable Ore Reserve of 18.8 Mdt at 0.13% cobalt and 0.54% nickel
estimated for the project.
Positive economics returned over a 12-year mine life with a pre-tax NPV of A$44.4M (A$25.7M post-
tax)
Capital Expenditure of A$371M including 10% indirects, 9% growth allowance, 4% owner’s costs, and
10% contingency.
All in Sustaining Costs of US$35,400/t contained cobalt.
Constructive discussions have also been held with the traditional owners the Ngadju and the MTJV is optimistic
in respect to finalising a Native Title agreement in calendar year 2021.
Disclaimer
The interpretations and conclusions reached in this report are based on current geological theory and the
best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that
they are founded on an assessment of probabilities and, however high these probabilities might be, they
make no claim for complete certainty. Any economic decisions that might be taken based on interpretations
or conclusions contained in this report will therefore carry an element of risk.
This report contains forward-looking statements that involve a number of risks and uncertainties. These forward-
looking statements are expressed in good faith and believed to have a reasonable basis. These statements
reflect current expectations, intentions or strategies regarding the future and assumptions based on currently
available information. Should one or more of the risks or uncertainties materialise, or should underlying
assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies
described in this report. No obligation is assumed to update forward-looking statements if these beliefs,
opinions and estimates should change or to reflect other future developments.
Competent Persons Statements
The information contained in this report relating to exploration results for the Greenland projects is based on
information compiled or reviewed by Thomas Abraham-James, the CEO of Longland Resources Ltd. Mr.
Abraham-James has a B.Sc. Hons (Geol) and is a Chartered Professional (CPGeo) and Fellow of the
Australasian Institute of Mining and Metallurgy (FAusIMM). Mr. Abraham-James has sufficient experience of
relevance to the styles of mineralisation and the types of deposit under consideration, and to the activities
undertaken to qualify as a Competent Person as defined in the 2012 edition of the Joint Ore Reserve
Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr. Abraham-James consents to the inclusion in this report of the matters based on information in
the form and context in which it appears.
The company is not aware of any new information or data that materially affects the information presented
and that the material assumptions and technical parameters underpinning the estimates continue to apply
and have not materially changed. The company confirms that the form and context in which the Competent
Persons’ findings are presented have not been materially modified from the original market announcements.
13
DIRECTORS’ REPORT
The directors present their report together with the consolidated financial statements of the Group comprising
Conico Ltd (the Company) and its controlled entity and the Group’s interest in a joint venture for the financial
year ended 30 June 2021.
Directors
The names of directors in office at any time during or since the end of the year are:
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Company Secretary
The following person held the position of Company Secretary at the end of the financial year and at the date
of this report:
Mr Aaron P Gates has worked for Conico Ltd for the past 13 years. He is a Chartered Accountant and
Chartered Secretary, has completed a Bachelor of Commerce (Curtin University) with majors in accounting
and business law and completed a Diploma of Corporate Governance. Prior to joining Conico he worked in
public practice in audit and corporate finance roles.
Principal Activities
The principal activity of the Group during the financial year ended 30 June 2021 was mineral exploration.
On 2 November 2020 Conico successfully acquired 100% of the issued capital of Longland Resources Limited
(“Longland”), the 100% owner of the Ryberg and Mestersvig Projects in Greenland. There were no other
significant changes in the nature of the activities of the Group during the year.
Operating Results
The loss of the Group after providing for income tax amounted to $995,140 (2020: $349,970). Cash outflow from
operating activities was $596,820 (2020: $188,576).
Dividends Paid or Recommended
No dividends were paid or declared for payment during the year.
Review of Mineral Exploration Operations
A review of the operations of the Group during the year ended 30 June 2021 is set out in the Review of
Operations on Page 6.
Financial position
The net assets of the Group have increased by $10,654,882 from 30 June 2020, to $25,882,243 in 2021. This
increase is largely due to the acquisition of Longland Resources Ltd and capital raisings completed during the
year.
Significant Changes in State of Affairs
In the opinion of the directors, other than disclosed elsewhere in this report, there were no significant changes
in the state of affairs of the Group that occurred during the year.
After Balance Date Events
On 3 September 2021 and 17 September 2021 shares were issued (16,847,833 in total) pursuant to options
being exercised, raising $698,413.
On 15 September 2021 the Company announced a placement and non-renounceable rights-issue to raise $7
million by the issue of CNJ shares at $0.06 each together with one for two free attaching options to acquire
Shares at 10 cents each on or before 30 November 2024. On 22 September 2021, the 67,000,000 placement
shares and options were issued, raising $4,020,000.
No other matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of
the Group in future financial years.
Future Developments, Prospects and Business Strategies
The Group proposes to continue with its exploration and evaluation program as detailed in the Review of
Operations.
Environmental Issues
The Group is the subject of environmental regulation with respect to mining exploration and will comply fully
with all requirements with respect to rehabilitation of exploration sites.
14
Information on Directors
Gregory H Solomon
Qualifications
Experience
Non-Executive Chairman
LLB
Appointed chairman March 2006. Board member since March 2006. A
solicitor with more than 30 years of Australian and international
experience in a wide range of areas including mining law, commercial
negotiation (including numerous mining and exploration joint ventures)
and corporate law. He is a partner in the Western Australian legal firm,
Solomon Brothers and has previously held directorships of various
public companies since 1984
two mining/exploration
companies.
including
Interest in Shares and Options
Directorships held in other listed
entities
38,469,448 Ordinary Shares
Eden Innovations Ltd
Tasman Resources Ltd
Guy T Le Page
Qualifications
Experience
Executive
B.A., B.Sc.. B.App.Sc. (Hons).,M.B.A., M.Fin.Plan, GradDipAppFin&Inv,
F.FIN., MAusIMM
Board member since 30 March 2006. Currently a corporate adviser
specialising in resources. He is actively involved in a range of corporate
initiatives from mergers and acquisitions, initial public offerings to
valuations, consulting and corporate advisory roles. He previously spent
10 years as an exploration and mining geologist in Australia, Canada
and the United States. His experience spans gold and base metal
exploration and mining geology and he has acted as a consultant to
private and public companies.
Interest in Shares and Options
26,800,661 Ordinary Shares
Directorships in other listed entities
Mt Ridley Mines Ltd, Tasman Resources Ltd
Douglas H Solomon
Qualifications
Experience
Non-Executive
BJuris LLB (Hons)
Board member since 30 March 2006. A Barrister and Solicitor with more
than 30 years’ experience
in the areas of mining, corporate,
commercial and property law. He is a partner in the legal firm,
Solomon Brothers.
Interest in Shares and Options
38,738,548 Ordinary Shares
Directorships in other listed entities
Eden Innovations Ltd
James B Richardson
Qualifications
Experience
Tasman Resources Ltd
Non-Executive
Dip, Fin. Plan.
Board member since 11 November 2008. Currently a corporate advisor
where he has been actively involved in a range of corporate activities,
including
the development, documentation, negotiation and
marketing of a number of successful financial instruments for various
companies encompassing various sectors of the investment market. He
has also been employed as a specialist business development
executive in some of the more successful national financial services
organisations. Additionally, he has extensive experience in evaluating
investment opportunities, structuring projects and negotiating financial
transactions to meet the expectations of the investment market.
Interest in Shares and Options
38,750,000 Ordinary Shares
Directorships in other listed entities
None
15
Remuneration Report (Audited)
This report details the nature and amount of remuneration for each director of Conico Ltd, and for the
executives receiving the highest remuneration.
Remuneration Policy
The remuneration policy of Conico Ltd has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component and offering specific long-
term incentives based on key performance areas affecting the company’s financial results. The board
believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best
executives and directors to run and manage the company, as well as create goal congruence between
directors, executives and shareholders.
The board’s policy for determining the nature and amount of remuneration for board members and senior
executives of the company is as follows:
All executives receive a base salary (which is based on factors such as length of service and experience),
superannuation, fringe benefits and options. Executives are also entitled to participate in the employee share
and option arrangements. All Australian directors and executives receive superannuation, which was 9.5%,
and do not receive any other retirement benefits.
All remuneration paid to directors and executives is valued at the cost to the company and expensed.
Options are valued using the Black-Scholes methodology or an appropriate market-based pricing valuation
methodology. The board policy is to remunerate non-executive directors at market rates for time,
commitment, and responsibilities. The Group does not have a policy on directors hedging their shares.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval
by shareholders. Fees for non-executive directors are not linked to the performance of the company.
However, to align directors’ interests with shareholder interests, the directors are encouraged to hold shares in
the company.
Details of Remuneration for Year Ended 30 June 2021
The remuneration for each director and each of the executive officers of the Group during the year was as
follows:
Key Management Person
Short-term Benefits
Post-
employme
nt benefits
Other
long-term
benefits
Terminatio
n Benefits
Share-based
payments
Total
Salary
and Fees
Cash
profit
share
Non-
cash
benefit
Super-
annuation
Other
Other
Equity Options
$
$
$
$
$
$
$
$
$
2021
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
60,000
36,000
45,000
36,000
Thomas Abraham-James (ii) 136,784
Aaron P Gates(i)
2020
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Aaron P Gates(i)
-
313,784
60,000
36,000
36,000
36,000
-
168,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,301
-
5,700
3,420
4,275
3,420
-
-
2,301
16,815
-
-
-
-
-
-
5,700
3,420
3,420
3,420
-
15,960
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
65,700
39,420
49,275
39,420
- 87,500
226,585
-
6,700
6,700
- 94,200
427,100
-
-
-
-
-
-
-
-
-
-
-
-
65,700
39,420
39,420
39,420
-
183,960
(i) - Mr Gates is remunerated by Princebrook Pty Ltd (a company in which Mr Gregory Solomon and Mr
Douglas Solomon have an interest) under the Management Services agreement with the Company. During
the year the Company paid $144,000 (2020: $135,000) to Princebrook Pty Ltd for management services. The
Management Services Agreement may be terminated by giving not less than three months’ written notice. Mr
Gates received 500,000 options exercisable at $0.022 and expiring 21 September 2023.
(ii) - The appointment of Mr Abraham-James may be terminated by giving not less than eight weeks written
notice. Mr Abraham-James received 5,000,000 options exercisable at $0.04 and expiring 30 September 2024.
16
For the options granted during the current financial year, the valuation model inputs used to determine the fair
value at the grant date, are as follows:
Key Management Person Grant Date
Expiry
Date
Share Price
at Grant
Date
Exercise
Price
Expected
volatility
Divid-
end
yield
Risk-free
interest
rate
Fair value
at grant
date
Aaron P Gates
22/9/2020 21/9/2023
$0.016
$0.022
Thomas Abraham-James 19/5/2021 30/9/2024
$0.033
$0.04
188%
100%
-
-
0.25%
0.25%
$0.0134
$0.0175
Number of Options Held by Key Management Personnel
Balance
1.7.2020
Granted as
Compen-
sation
Options
Exer-
cised
Net Change
Other*
Balance
30.6.2021
Total
Vested
30.6.2021
Total
Exer-
cisable
30.6.2021
Total
Unexer-
cisable
30.6.2021
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
6,088,185
5,688,985
3,333,357
2,877,083
-
-
-
-
Thomas Abraham-James
- 5,000,000
Aaron P Gates
2,000,000
500,000
Total
19,987,610 5,500,000
-
-
-
-
-
-
-
(6,088,185)
(5,688,985)
(3,333,357)
(2,877,083)
-
-
-
-
-
-
-
-
-
-
-
-
- 5,000,000 5,000,000 5,000,000
(1,800,000)**
700,000 700,000
700,000
(19,987,610) 5,700,000 5,700,000 5,700,000
-
-
-
-
-
-
-
*Net Change Other refers to options that have been purchased, sold, lapsed or issued during the year.
**This includes the lapse of 2,000,000 options during the period that were issued as remuneration and had a fair
value at grant date of $50,400.
Number of Shares Held by Key Management Personnel
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Thomas Abraham-James
Aaron P Gates
Total
Balance
30.6.2020
Received as
Compen-
sation
Options
Exercised
Net Change
Other*
Balance
30.6.2021
27,193,654
25,200,860
17,185,859
29,377,083
-
-
98,957,456
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,275,794
38,469,448
13,537,688
38,738,548
9,614,802
26,800,661
9,372,917
38,750,000
33,328,941
33,328,941
1,300,000
1,300,000
78,288,142
177,387,598
*Net Change Other refers to shares purchased, sold or other movements.
Directors Meetings
During the financial year, seven meetings of directors were held. Attendances by each director were as
follows:
Directors’ Meetings
Number
eligible to
attend
Number
attended
7
7
7
7
7
7
7
7
Gregory H Solomon
Douglas H Solomon
Guy T Le Page
James B Richardson
Indemnifying Officers
The company has arranged for an insurance policy to insure the directors against liabilities for costs and
expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the
capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the
company. The total premium payable was approximately $28,485.
17
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.
Options
At the date of this report, the unissued ordinary shares of Conico Ltd under option are as follows:
Grant Date
Date of Expiry
Exercise Price
Number under Option
22 September 2020
21 September 2023
24 November 2020
24 November 2023
15 January 2021
Various
15 January 2024
20 January 2024
19 May 2021
30 September 2024
22 September 2021
30 November 2024
$0.022
$0.04
$0.04
$0.07
$0.04
$0.10
1,000,000
8,500,000
2,300,000
60,496,307
10,000,000
33,500,000
115,796,307
During the year ended 30 June 2021, no ordinary shares of Conico Ltd were issued on the exercise of options
granted under the Conico Ltd Employee Share Option Plan. No shares have been issued since in terms of the
plan.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of any other body corporate.
Non-audit Services
The board of directors is satisfied that the provision of non-audit services during the year is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The directors are
satisfied that the services disclosed below did not compromise the external auditor’s independence for the
following reasons:
all non-audit services are reviewed and approved prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June
2021.
Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2021 has been received and can be
found on page 19.
Signed in accordance with a resolution of the Board of Directors.
Gregory H Solomon
Chairman
Dated this 23rd day of September 2021
18
Auditor’s independence declaration under section 307C of the Corporations
Act 2001
To the directors of Conico Ltd
I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year
ended 30 June 2021 there have been:
(i) no contraventions of the auditor’s independence requirements as set out in the Corporations
Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
23 September 2021
19
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2021
Other Income
Accounting and audit
Depreciation and amortisation
Finance costs
Foreign exchange gain/(loss)
Insurance expense
Key management remuneration
Legal and other consultants
Management fees
Other expenses
Travel and accommodation
Loss before income tax
Income tax benefit
Loss for the year
Other Comprehensive Income
Items that may be reclassified to profit or loss:
Foreign currency translation reserve
Income tax relating to comprehensive income
Total other comprehensive income
Total Comprehensive Loss attributable to
members of the parent entity, net of tax
Note
2
6(a)
3
Consolidated
2021
$
2020
$
1,132
(37,521)
(5,829)
(5,710)
(8,086)
(33,706)
(382,120)
(226,842)
(144,000)
(188,676)
(43,738)
(1,075,096)
79,956
(995,140)
22,963
(35,495)
(1,019)
(8,330)
-
(30,412)
(183,960)
(44,627)
(135,000)
(38,690)
-
(454,570)
104,600
(349,970)
21,279
-
21,279
-
-
-
(973,861)
(349,970)
Basic/Diluted loss per share (cents per share)
5
(0.14)
(0.09)
The accompanying notes form part of these financial statements.
20
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing liabilities
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
7
8
9
10
12
13
14
15
16
3,918,252
-
311,652
4,229,904
171,401
16,599
-
188,000
54,920
5,780
22,272,897
15,930,182
22,327,817
15,935,962
26,557,721
16,123,962
412,978
412,978
-
262,500
262,500
675,478
232,721
232,721
401,380
262,500
663,880
896,601
25,882,243
15,227,361
31,425,251
20,394,350
1,407,771
788,650
(6,950,779)
(5,955,639)
25,882,243
15,227,361
The accompanying notes form part of these financial statements.
21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2021
Consolidated Group
Ordinary
Share Capital
Foreign
Currency
Translation
Reserve
Option
Reserve
Retained
Earnings
Total
$
20,085,785
308,565
-
-
-
20,394,350
11,030,901
-
-
-
-
$
-
-
-
-
-
-
-
-
-
(21,279)
(21,279)
$
$
$
788,650
(5,605,669) 15,268,766
-
-
-
-
-
308,565
(349,970)
(349,970)
-
-
(349,970)
(349,970)
788,650
(5,955,639) 15,227,361
-
640,400
- 11,030,901
-
640,400
-
-
-
(995,140)
(995,140)
-
(21,279)
(995,140) (1,016,419)
Balance at 30 June 2019
Shares issued (net of costs)
Net loss for the year
Other comprehensive income
Total comprehensive income / (loss)
Balance at 30 June 2020
Shares issued (net of costs)
Issue of options
Net loss for the year
Other comprehensive income
Total comprehensive income / (loss)
Balance at 30 June 2021
31,425,251
(21,279)
1,429,050
(6,950,779) 25,882,243
The accompanying notes form part of these financial statements.
22
CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
R&D tax rebate
Net cash provided by/(used in) operating activities
22
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary (net of cash acquired)
Cash advanced for exploration costs
Exploration and evaluation expenditure
Payments for property, plant & equipment
-
(662,919)
(14,041)
184
79,956
(596,820)
(6,605)
(1,206,240)
(2,025,669)
(48,785)
24,183
(317,565)
-
206
104,600
(188,576)
-
-
(472,701)
-
Net cash provided by/(used in) investing activities
(3,287,299)
(472,701)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans
Proceeds from share issues net of costs
Repayment of loans
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Net increase/(decrease) due to foreign exchange
movements
Cash at beginning of financial year
Cash at end of financial year
13
15
13
7
-
8,114,089
(393,050)
7,721,039
3,836,920
(90,069)
171,401
3,918,252
393,050
308,565
-
701,615
40,338
-
131,063
171,401
The accompanying notes form part of these financial statements.
23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The
financial report of Conico Limited and its controlled entity (Group) complies with International Financial
Reporting Standards (IFRS).
The financial report covers the consolidated group of Conico Ltd and its controlled entity as at and for the
year ended 30 June 2021. Conico Ltd is a listed public company, incorporated and domiciled in Australia.
The Group is a for-profit entity and primarily is involved in mineral exploration for cobalt, nickel and
manganese.
The financial report was authorised for issue on 23 September 2021 by the Board of Directors.
The following is a summary of the material accounting policies adopted by the Group in the preparation of
the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation
The accounting policies set out below have been consistently applied to all years presented.
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair
value basis of accounting has been applied. These consolidated financial statements are presented in
Australian dollars. The functional currency of Longland Resources Limited is British Pound Sterling. The
functional currency of all other Group entities is Australian dollars.
Going Concern
These financial statements have been prepared on a going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary
course of business.
The financial statements do not include any adjustments relative to the recoverability and classification of
recorded asset amounts or, to the amounts and classification of liabilities that might be necessary should
the entity not continue as a going concern.
Accounting Policies
a.
Principles of Consolidation
A controlled entity is any entity Conico Ltd is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the
activities of the entity. A list of controlled entities is contained in Note 17 to the financial statements.
All controlled entities have a June financial year-end.
All inter-company balances and transactions between entities in the consolidated group, including
any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of
controlled entities have been changed where necessary to ensure consistencies with those policies
applied by the parent entity.
b.
Interests in a Joint Operation
The consolidated financial statements include the assets that the Group controls and the liabilities
that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and
its share of the income that it earns from the joint operation. Details of the Group’s interests are
shown at Note 11.
c.
Income Tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the balance sheet date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is
realised or liability is settled. Deferred tax is credited in the income statement except where it relates
to items that may be credited directly to equity, in which case the deferred tax is adjusted directly
against equity.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. 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.
24
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
c.
Income Tax continued
Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary
differences, to the extent that it is probable that future tax profits will be available against which they
can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation
that the group will derive sufficient future assessable income to enable the benefit to be realised.
The R&D tax offset is recognised upon receipt.
d.
Property, Plant and Equipment
Plant and equipment are measured on the cost basis.
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.
The depreciation rates used for each class of depreciable assets are:
Plant and equipment
15.00–50.00%
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are recognised in profit or loss.
e.
Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward where right of tenure is current and
to the extent that they are expected to be recouped through the successful development of the
area or where activities in the area have not yet reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year
in which the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences
and are included in the costs of that stage. Any changes in the estimates for the costs are
accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty
regarding the nature and extent of the restoration due to community expectations and future
legislation.
f.
Impairment of Non-financial Assets
At each reporting date, the Group reviews the carrying values of its non-financial / tangible and
intangible assets to determine whether there is any indication that those assets have been impaired.
If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the
asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and
Other Comprehensive Income. 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.
g.
Cash and cash equivalents
Cash comprises current deposits with banks.
h.
Financial Instruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs,
when the related contractual rights or obligations exist. Subsequent to initial recognition these
instruments are measured as set out below.
25
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
h.
Financial Instruments continued
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market and are stated at amortised cost using the effective interest rate
method.
The Group makes use of a simplified approach in accounting for trade and other receivables and
records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the
financial instrument. In calculating, the entity uses its historical experience, external indicators and
forward-looking information to calculate the expected credit losses.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings
using the effective interest method. Borrowings are removed from the balance sheet when the
obligation specified in the contract is discharged, cancelled or expired.
Impairment
At each reporting date, the Group assesses at a specific asset level whether there is objective
evidence that a financial instrument has been impaired. Impairment losses are recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
i.
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.
j.
Revenue
Revenue is measured at the transaction price received or receivable (which excludes estimates of
variable consideration) allocated to the performance obligation satisfied and represents amounts
receivable for services provided in the normal course of business, net of discounts, VAT, GST and
other sales related taxes. As the expected period between transfer of a promised service and
payment from the customer is one year or less then no adjustment for a financing component has
been made.
Revenue arising from the provision of services is recognised when and to the extent that the
customer simultaneously receives and consumes the benefits of the Group’s performance or the
Group does not create an asset with an alternative use but has an enforceable right to payment for
performance completed to date.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a
method of calculating the amortised cost of a financial asset and allocating the interest income
over the relevant period using the effective interest rate, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to the net carrying
amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
k.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to
changes in presentation for the current financial year.
l.
New accounting standards and interpretations
The Group has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective
for the current year.
m.
Segment reporting
Segment results that are reported to the Group’s board of directors (the chief operating decision
maker) include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis.
26
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
n.
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity.
o.
New accounting standards and interpretations not yet adopted
A number of new standards and amendments to standards are effective for annual periods
beginning after 1 July 2021, and have not been applied in preparing these consolidated financial
statements. Management are of the view that these standards and amendments will not have a
significant impact on the financials.
p.
Share-based payments
The Group provides benefits to employees (including senior executives) of the Group in the form of
share-based payments. The cost of these share-based payments is measured by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value at grant
date is measured by use of the Black-Scholes Option Pricing Model. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-
transferability, exercise restrictions, and behavioural considerations.
The fair value determined at the grant date of the equity-settled share-based payments is expensed
on a straight-line basis over the vesting period, based on the entity’s estimate of shares that will
eventually vest.
For cash-settled share-based payments, a liability equal to the portion of the goods or services
received is recognised at the current fair value determined at each reporting date.
q.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the net profit/loss attributable to the owners of
Conico Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average number of shares assumed to have
been issued for no consideration in relation to dilutive potential ordinary shares.
r.
Critical accounting judgements, estimates and assumptions
Judgements made by management in the application of IFRS that have significant effects on the
financial statements and estimates with a significant risk of material adjustments in the next year are
disclosed, where applicable, in the relevant note to the financial statements. The following are the
key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year:
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the
Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable
amount of the asset is determined. The Company did not recognise any impairment charges on any
of its tenements during the year (2020: nil).
Exploration and evaluation costs carried forward
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a
number of factors, including whether the Group decides to exploit the related lease itself or, if not,
whether it successfully recovers the related exploration and evaluation asset through sale.
27
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
r.
Critical accounting judgements, estimates and assumptions continued
Exploration and evaluation costs carried forward
Factors which could impact the future recoverability include the level of proved, probable and
inferred mineral resources, future technological changes which could impact the cost of mining,
future legal changes (including changes to environmental restoration obligations) and changes to
commodity prices. To the extent that capitalised exploration and evaluation expenditure is
determined not to be recoverable in the future, this will increase losses and reduce net assets in the
period in which this determination is made. In addition, exploration and evaluation expenditure is
capitalised if activities in the area of interest have not yet reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves. To the
extent that it is determined in the future that this capitalised expenditure should be written off, this will
increase losses and reduce net assets in the period in which this determination is made.
Share-based payments
The Company makes equity settled share-based payments to certain employees and consultants,
which are measured at fair value at the date of grant and expensed on a straight line basis over the
vesting period, based on the Company’s estimate of shares that will eventually vest. The fair values
are determined using the Black-Scholes Option Pricing Model. Vesting assumptions are reviewed
during each reporting period to ensure they reflect current expectations.
Loans to controlled entities
The directors believe that the recoupment of the inter-company receivables from Conico Ltd to
Meteore Metals Pty Ltd and Longland Resources Ltd is dependent on the successful development and
commercial exploitation or, alternatively, the sale of the exploration assets held by the controlled
entity.
Acquisition of Longland Resources Ltd
On 2 November 2020 Conico successfully acquired 100% of the issued capital of Longland Resources
Limited (“Longland”), the 100% owner of the Ryberg and Mestersvig Projects in Greenland. Total
consideration for the acquisition of Longland was 120,000,000 fully paid ordinary Conico shares. The
assets and liabilities arising from acquisition are recognised at fair value which is equal to the carrying
value at acquisition date. The acquisition of Longland by Conico has been treated as an asset
acquisition, rather than a business combination. This was on the grounds that the transaction met the
“concentration test” within AASB 3 Business Combinations. The cost of the acquisition has therefore
been allocated to the assets and liabilities acquired.
NOTE 2: OTHER INCOME
—
—
interest received
other income
Total Other Income
Consolidated
2021
$
2020
$
184
948
1,132
206
22,757
22,963
NOTE 3: INCOME TAX BENEFIT
a.
The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as
follows:
Prima facie tax payable on loss from ordinary activities before
income tax at 26% (2020: 27.5%)
(258,736)
(125,007)
Tax effect of:
—
—
—
Research & development rebate
Current year temporary differences not recognised
Current year tax losses not recognised
Income tax (expense) / benefit
79,956
482,492
(223,756)
104,600
125,007
-
79,956
104,600
28
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 3: INCOME TAX BENEFIT CONTINUED
b.
Components of deferred tax
Unrecognised deferred tax asset – losses
Unrecognised deferred tax asset – provisions and accruals
Consolidated
2021
$
2020
$
3,988,024
2,590,774
91,530
122,888
Unrecognised deferred tax liabilities – exploration and evaluation
(2,017,041)
(1,256,940)
Unrecognised deferred tax liabilities – capital raising costs
Net Unrecognised deferred tax assets
(368,840)
(245,541)
1,693,673
1,211,181
Deferred tax assets have not been brought to account as it is not probable within the immediate future that
tax profits will be available against which deductible temporary differences and tax losses can be utilised. The
benefit of the tax losses will only be obtained if the Group complies with conditions imposed by the relevant
tax legislation.
NOTE 4: AUDITOR’S REMUNERATION
Remuneration of the auditor for auditing or reviewing the financial report
14,224
18,270
NOTE 5: LOSS PER SHARE
a.
Reconciliation of loss to profit or loss
Profit/(loss)
Loss used to calculate basic EPS
b.
Weighted average number of ordinary shares outstanding during
the year used in calculating basic EPS
Loss per share
(995,140)
(349,970)
(995,140)
(349,970)
691,433,579 381,187,732
(0.14)
(0.09)
Diluted loss per share has not been calculated as the result does not increase loss per share.
NOTE 6: EMPLOYEE BENEFITS
a.
Employee benefits expense
Refer to disclosures contained in the Remuneration Report section
of the Directors’ Report. The totals of remuneration paid to key
management personnel of the Group during the year are as
follows:
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
Total
316,085
168,000
16,815
15,960
-
-
94,200
-
-
-
427,100
183,960
b.
Share-based employee remuneration
Included under employee benefits expense in the statement of profit or loss and other comprehensive
income is $188,400 (2020: Nil) which relates, in full, to equity settled share-based payment transactions.
All options granted to personnel/key consultants are over ordinary shares in Conico Ltd, which confer a right
of one ordinary share for every option held. When issued, the shares carry full dividend and voting rights.
29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: CASH AND CASH EQUIVALENTS
Cash at bank
Reconciliation of cash
Cash at the end of the financial year as shown in the consolidated statement of
cash flows is reconciled to items in the balance sheet as follows:
Cash and cash equivalents
NOTE 8: OTHER CURRENT ASSETS
Prepayments
NOTE 9: PLANT AND EQUIPMENT
Equipment:
At cost
Accumulated depreciation
Total Plant and Equipment
a.
Movements in Carrying Amounts
Consolidated
2021
$
2020
$
3,918,252
3,918,252
171,401
171,401
3,918,252
3,918,252
171,401
171,401
311,652
311,652
-
-
104,893
(49,973)
54,920
46,100
(40,320)
5,780
Movement in the carrying amount between the beginning and the end of the current financial year.
Opening balance
Assets purchased
Acquired through purchase of subsidiary
Net exchange differences
Depreciation expense
Closing balance
b.
Impairment losses
5,780
51,338
2,404
1,227
(5,829)
54,920
6,799
-
-
-
(1,019)
5,780
The total impairment loss recognised in the consolidated statement of profit or loss and other comprehensive
income during the current year amounted to $Nil (2020: $Nil).
NOTE 10: EXPLORATION AND EVALUATION ASSETS
Balance at the beginning of the financial year
Acquired through purchase of subsidiary
Expenditure incurred during the year
Movement in rehabilitation provision
Net exchange differences
Balance at the end on the financial year
15,930,182
15,469,981
4,405,983
1,892,319
-
44,413
-
472,701
(12,500)
-
22,272,897
15,930,182
Capitalised costs amounting to $2,025,669 (2020: $472,701) have been included in cash flows from investing
activities in the statement of cash flows for the consolidated entity.
30
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: JOINT OPERATION
A wholly controlled entity, Meteore Metals Pty Ltd, has a 50% interest in the Mt Thirsty Joint Venture, whose
principal activity is the development of the Mt Thirsty nickel, cobalt and manganese project. The
consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in
the course of pursuing the joint operation and the expenses that the Group incurs and its share of the
income that it earns from the joint operation.
Share of joint operation results and financial position:
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Total Liabilities
Revenue
Expenses
Profit / (Loss) before income tax
Income tax expense
Profit / (Loss) after income tax
NOTE 12: TRADE AND OTHER PAYABLES
Trade payables
Sundry payables and accrued expenses
NOTE 13: INTEREST BEARING LIABILITIES
Opening balance
Amount drawn down
Amount repaid
Interest
Closing balance
Consolidated
2021
$
2020
$
6,409
9,583
3,493,148
3,478,889
3,499,557
3,488,472
7,592
20,092
-
(5,045)
(5,045)
-
1,462
13,962
-
(27,436)
(27,436)
-
(5,045)
(27,436)
323,438
89,540
412,978
48,356
184,365
232,721
401,380
-
-
393,050
(407,090)
5,710
-
8,330
-
401,380
This was a 3 year loan facility of $500,000 from Barra Resources Ltd to fund Stage 3 expenditure on the Mt
Thirsty JV Pre Feasibility Study. Interest at 5% per annum calculated daily on amounts drawn down and
capitalised into the loan annually. The loan was repaid in full on 14 October 2020.
31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 14: PROVISIONS
Opening balance
Movements
Closing balance
2021
$
2020
$
262,500
-
262,500
275,000
(12,500)
262,500
This mainly relates to a provision of $250,000 that has been recognised in relation to the Group’s 50% share of
the liability to pay the original owners of the Mt Thirsty project $500,000 upon the commencement of mining
on the tenements. The directors believe this will not become due for at least a couple of years. This amount
has not been recorded at present value as a timeframe for discounting is not determinable. The remaining
balance relates to a rehabilitation provision.
NOTE 15: ISSUED CAPITAL
916,367,041 (2020: 384,398,221) ordinary shares
31,425,251
20,394,350
2021
2012$ 2020
No.
No.
2021
$
2020
$
a.
Ordinary shares
At the beginning of reporting period
384,398,221
351,758,253
20,394,350
20,085,785
Shares issued during the year net of costs
531,968,820
32,639,968
11,030,901
308,565
At reporting date
916,367,041
384,398,221
31,425,251
20,394,350
Ordinary shares participate in dividends and in the proceeds of winding up in proportion to the number of
shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called,
otherwise each shareholder has one vote on a show of hands. The Company has no authorised share
capital or par value. All issued shares are fully paid.
b.
Options
At the beginning of reporting period
Issued during the year
Options lapsed during the year
Options exercised during the year
At reporting date
c.
Capital Management
2021
2020
42,264,866
73,139,866
99,144,140
-
(42,243,327) (30,875,000)
(21,539)
-
99,144,140
42,264,866
Management controls the working capital of the Company in order to maximise the return to
shareholders and ensure that the Company can fund its operations and continue as a going concern.
Management effectively manages the Company’s capital by assessing the Company’s financial risks
and adjusting its capital structure in response to changes in these risks and in the market. These
responses include the management of expenditure and debt levels, distributions to shareholders and
capital raisings. There have been no changes in the strategy adopted by management to control the
capital of the Company since the prior year.
NOTE 16: RESERVES
a.
Option Reserve
The option reserve records items recognised as expenses on valuation of share options.
b.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on the translation of
foreign subsidiaries.
32
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: CONTROLLED ENTITIES
Controlled Entities
Meteore Metals Pty Ltd
Longland Resources Ltd
Country of
Incorporation
Australia
United Kingdom
Percentage Owned (%)
2021
100
100
2020
100
-
NOTE 18: ACQUISITION OF SUBSIDIARIES
On 2 November 2020 Conico successfully acquired 100% of the issued capital of Longland Resources Limited
(“Longland”), the 100% owner of the Ryberg and Mestersvig Projects in Greenland. Total consideration for the
acquisition of Longland was 120,000,000 fully paid ordinary Conico shares. The assets and liabilities arising from
acquisition are recognised at fair value which is equal to the carrying value at acquisition date.
The acquisition of Longland Resources Limited ("Longland") by Conico has been treated as an asset
acquisition, rather than a business combination. This was on the grounds that the transaction met the
“concentration test” within AASB 3 Business Combinations. The cost of the acquisition has therefore been
allocated to the assets and liabilities acquired.
Cash consideration (acquisition costs)
Cash advanced for exploration spent
Equity issued as consideration
Total purchase consideration
Fair value of assets acquired
Assets and liabilities held at acquisition date
Cash and cash equivalents
Other assets
Capitalised mineral exploration and evaluation expenditure
Liabilities
Net assets acquired
NOTE 19: PARENT COMPANY INFORMATION
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Option reserve
Total reserves
Financial performance
Profit / (Loss) for the year
Other comprehensive income
Total comprehensive loss
33
$
35,555
1,268,186
3,120,000
4,423,741
4,423,741
15,012
2,746
4,405,983
-
4,423,741
2021
$
2020
$
3,861,031
164,642
21,697,467
14,686,578
25,558,497
14,851,220
81,750
81,750
231,385
231,385
31,425,251
20,394,350
(7,377,554)
(6,563,165)
1,429,050
1,429,050
788,650
788,650
(814,389)
(450,774)
-
-
(814,389)
(450,774)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 19: PARENT COMPANY INFORMATION CONTINUED
Contingent Liabilities and Commitments
The Directors are not aware of any contingent liabilities or capital commitments as at 30 June 2021.
Guarantees in respect of the debts of its subsidiaries
The parent entity has provided a guarantee to Cartwright Drilling Inc. in relation to the drilling program
being undertaken in Greenland by its subsidiary Longland Resources Ltd. There are no other parent
entity guarantees in respect of the debts of its subsidiary at year end.
NOTE 20: CAPITAL AND LEASING COMMITMENTS
a.
Capital Expenditure Commitments
Payable:
—
—
not later than 12 months
greater than12 months
b.
Exploration Expenditure Commitments
Consolidated
2021
$
2020
$
-
-
-
-
-
-
In order to maintain current rights of tenure to exploration tenements, the company is required to
perform minimum exploration work to meet the requirements specified by various governments. It is
anticipated that expenditure commitments for the twelve months will be tenement rentals of $15,000
(2020: $6,579) and exploration expenditure of $72,000 (2020: $67,000), of which the Group is required
to meet 50% of.
NOTE 21: SHARE-BASED PAYMENTS
All options granted are over ordinary shares in Conico Ltd, which confer a right of one ordinary share for
every option held. When issued, the shares carry full dividend and voting rights.
Share-based payments - Options
2021
2020
Outstanding at the beginning of the year
Granted
Exercised
Lapsed
Outstanding at year-end
Exercisable at year-end
Number of
Options
Number of
Options
Weighted
Average
Exercise
Price
$
Weighted
Average
Exercise
Price
$
14,000,000
57,000,000
0.055
0.050
-
-
14,000,000
57,000,000
57,000,000
0.055
0.050
0.050
14,000,000
0.055
-
-
-
-
-
-
14,000,000
0.055
14,000,000
0.055
The options outstanding at 30 June 2021 had a weighted average exercise price of $0.050 and a weighted
average remaining contractual life of 2.6 years.
For the options granted during the current financial year, the valuation model inputs used to determine the
fair value at the grant date, are as follows:
Grant Date
Expiry
Date
22/9/2020
21/9/2023
10/8/2020
15/1/2024
17/8/2020 24/11/2023
29/3/2021
20/1/2024
19/5/2021
30/9/2024
Share Price at
Grant Date
Exercise Price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
$0.016
$0.013
$0.018
$0.034
$0.033
$0.022
$0.04
$0.04
$0.07
$0.04
188%
100%
100%
100%
100%
-
-
-
-
-
0.25%
0.25%
0.25%
0.25%
0.25%
$0.0134
$0.05
$0.071
$0.0141
$0.0175
No options were exercised during the year ended 30 June 2021.
34
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 22: CASH FLOW INFORMATION
a. Reconciliation of Cash Flow from Operations with Loss after Income Tax
Loss after income tax
Non-cash flows in profit/(loss)
Depreciation
Options expense
Interest expense capitalised
Changes in assets and liabilities, net of non-cash payments
(Increase)/decrease in trade and term receivables
Increase/(decrease) in trade payables and accruals*
Cash flow used in operations
* - Net of Exploration and Evaluation cash flows.
b. Reconciliation of liabilities from financing activities
2021
$
2020
$
(995,140)
(349,970)
5,829
188,400
5,710
1,019
-
8,330
14,340
184,041
(5,923)
157,968
(596,820)
(188,576)
2021
Opening Balance
Repayments
Non-cash movements
Closing Balance
Loan from Barra Resources Ltd
Total
2020
Loan from Barra Resources Ltd
Total
$
401,380
401,380
$
(407,090)
(407,090)
$
$
5,710
5,710
-
-
Opening Balance
Drawdowns
Non-cash movements
Closing Balance
$
-
-
$
393,050
393,050
$
$
8,330
8,330
401,380
401,380
NOTE 23: RELATED PARTY TRANSACTIONS
2021
$
2020
$
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Transactions with related parties:
Key Management Personnel
Management fees and administration fees paid to Princebrook Pty Ltd, a
company in which Mr GH Solomon and Mr DH Solomon have an interest. At 30
June 2021 $12,000 (2020: $9,000) was included in Trade and Other Payables owing
to Princebrook Pty Ltd.
Legal and professional fees and reimbursed expenses paid to Solomon Brothers, a
firm of which Mr GH Solomon and Mr DH Solomon are partners.
Corporate advisory fees paid to RM Corporate Finance Pty Ltd, a company in
which Mr G T Le Page and Mr J B Richardson have an interest.
Website development, media and marketing fees paid/payable to RM Corporate
Finance Pty Ltd, a company in which Mr G Le Page and Mr J Richardson have an
interest.
Lead manager and placement fees paid/payable to RM Corporate Finance Pty
Ltd, a company in which Mr G Le Page and Mr J Richardson have an interest.
Underwriting fee paid/payable to RM Corporate Finance Pty Ltd (including
$140,000, being the fair value of 20,000,000 underwriter options), a company in
which Mr G Le Page and Mr J Richardson have an interest.
144,000
135,000
34,537
8,337
42,000
42,000
27,695
64,616
262,656
-
-
-
35
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 23: RELATED PARTY TRANSACTIONS CONTINUED
2021
$
2020
$
Associated Companies
Reimbursement to Tasman Resources Ltd (which has a 10.8% interest in the
Company) for employee costs on an hourly basis, in relation to Tasman staff utilised
by the Company.
3,703
6,873
NOTE 24: SEGMENT REPORTING
The Group has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors (chief operating decision maker) in assessing performance and determining the
allocation of resources. The following have been identified as individual segments:
Greenland
Conico holds a 100% in both the Ryberg and Mestersvig Projects in Greenland. The Ryberg Project that
covers an area of 4,521km² containing the Sortekap gold prospect and the Miki Fjord & Togeda Cu-Ni-Co-
PGE-Au magmatic sulphide prospects. The Mestersvig Project containing the historic Blyklippen Pb-Zn mine
and Sortebjerg Pb-Zn prospect.
Mt Thirsty JV
Conico holds a 50% interest in the Mt Thirsty Cobalt Project, located 16km north-northwest of Norseman,
Western Australia. The Project contains the Mt Thirsty Cobalt-Nickel (Co-Ni) Oxide Deposit that has the
potential to emerge as a significant cobalt producer. In addition to the Co-Ni Oxide Deposit, the Project also
hosts nickel sulphide (Ni-S) mineralisation.
Unallocated
Unallocated items comprise items that cannot be directly attributed to the Greenland Exploration or the Mt
thirsty JV segments and corporate costs which includes those expenditures supporting the business during
the period.
The segment information for the reportable segments for the year ended 30 June 2021 is as follows
Year ended 30 June 2021
Greenland
Mt Thirsty JV
Unallocated
$
$
$
Total
$
Segment loss before tax
Impairment of assets
Capital expenditure additions
Segment assets
Segment liabilities
-
-
6,331,608
6,684,356
(324,421)
-
-
12,516
-
7,920
15,941,683
3,931,682
(270,092)
(80,965)
(995,140)
(995,140)
Year ended 30 June 2020
Greenland
Mt Thirsty JV
Unallocated
$
$
$
Segment loss before tax
Impairment of assets
Capital expenditure additions
Segment assets
Segment liabilities
-
-
-
-
-
-
-
472,701
(349,970)
(349,970)
-
-
-
472,701
15,930,182
193,780
16,123,962
(665,342)
(231,259)
(896,601)
NOTE 25: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any contingent assets or contingent liabilities as at 30 June 2021.
NOTE 26: EVENTS AFTER THE BALANCE SHEET DATE
On 3 September 2021 and 17 September 2021 shares were issued (16,847,833 in total) pursuant to options
being exercised, raising $698,413.
On 15 September 2021 the Company announced a placement and non-renounceable rights-issue to raise
$7 million by the issue of CNJ shares at $0.06 each together with one for two free attaching options to
acquire Shares at 10 cents each on or before 30 November 2024. On 22 September 2021, the 67,000,000
placement shares and options were issued, raising $4,020,000.
36
-
6,352,044
26,557,721
(675,478)
Total
$
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 26: EVENTS AFTER THE BALANCE SHEET DATE CONTINUED
No other matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state
of affairs of the Group in future financial years.
NOTE 27: FINANCIAL INSTRUMENTS
a.
Financial Risk Exposures and Management
The main risks the Company is exposed to through its financial instruments are interest rate risk, liquidity
risk and credit risk.
i.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Group has minimal exposure to
interest rate risk, the only asset / liability affected by changes in market interest rates is Cash and
cash equivalents.
ii.
Liquidity Risk
The Company manages liquidity risk by monitoring forecast cash flows and ensuring that
adequate funding is maintained. The Company’s operations require it to raise capital on an on-
going basis to fund its planned exploration programs and to commercialise its tenement assets.
If the Company does not raise capital in the short term, it can continue by reducing planned
but not committed exploration expenditure until funding is available. All financial liabilities are
expected to be settled within 6 months.
iii.
Foreign currency risk
The Group is exposed to fluctuations in foreign currencies arising from the purchase of goods
and services in currencies other than the companies’ functional currency. The risk is measured
using sensitivity analysis and cash flow forecasting. At 30 June 2021, the effect on the loss as a
result of a 10% increase in the value of the Australian dollar, with all other variables remaining
constant would be a decrease in loss by approximately $25,000 (2020: Nil). Exploration
expenditure relating to the Greenland project is largely in in currencies other than the
companies’ functional currency, changes in the foreign exchange rates will affect the cost of
exploration on the Greenland project and may affect decisions regarding the quantum of
exploration completed in any period.
b.
Financial Instruments
i.
Net Fair Values
The aggregate net fair values of the financial assets and financial liabilities, at the balance
date, are approximated by their carrying value.
NOTE 28: COVID-19
The impact of the Coronavirus (COVID-19) pandemic is ongoing and whilst it has had no financial impact for
the Group up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative,
after the reporting date. The situation is still developing and is dependent on measures imposed by the
Australian Government and other countries, such as maintaining social distancing requirements, quarantine,
travel restrictions and any economic stimulus that may be provided.
NOTE 29: COMPANY DETAILS
The registered office of the company is:
The principal place of business is:
Conico Ltd
Level 15,
Conico Ltd
Level 15,
197 St Georges Terrace
Perth Western Australia 6000
197 St Georges Terrace
Perth Western Australia 6000
37
DIRECTORS’ DECLARATION
In the opinion of the directors of Conico Ltd (the “Company”):
a.
b.
c.
the financial statements and notes set out on pages 20 to 37 and the Remuneration disclosures that are
contained in pages 16 to 17 of the Remuneration Report in the Directors’ Report, are in accordance with
the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance, for the financial year ended on that date; and
(ii)
complying with Australian Accounting Standards
Interpretations) and the Corporations Regulations 2001; and
(including
the Australian Accounting
complying with International Financial Reporting Standards as disclosed in Note 1.
(iii)
the remuneration disclosures that are contained in pages 16 to 17 of the Remuneration Report in the
Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures, and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Non-Executive Chairman and Chief Financial Officer for the financial year ended 30 June 2021.
This declaration is made in accordance with a resolution of the Board of Directors.
Gregory H Solomon
Chairman
Dated this 23rd day of September 2021
38
Independent Auditor’s Report to the Members of Conico Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Conico Limited (“the Company”) and its subsidiaries (“the Group”),
which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of 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, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for
the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
39
Key audit matter
Future Funding
Refer to Note 1 (Basis of Preparation)
The Group’s activities have not yet advanced to a
stage where it is able to generate revenue,
accordingly the Group is reliant on funding from
external sources, such as capital raisings, to
support its operations. We focused on whether
the Group had sufficient cash resources and
access to funding to allow the Group to continue
as a going concern.
The adequacy of funding and liquidity as well as
the relevant impact on the going concern
assessment is a key audit matter due to the
inherent uncertainties associated with the future
development of the Group’s projects and the level
of funding required to support that development.
Capitalisation of exploration and evaluation
assets
Refer to Note 10 (Exploration and evaluation
assets)
and
As at 30 June 2021 the carrying value of
Exploration
assets was
$22,272,897 (2020: $15,930,182). The Group’s
accounting policy in respect of exploration and
evaluation assets is outlined in Note 1e.
evaluation
This is a key audit matter due to the fact that
significant judgement is applied in determining
and
whether
evaluation assets
the
recognition criteria in terms of AASB 6 Exploration
for and Evaluation of Mineral Resources.
exploration
to meet
capitalised
continue
the
How our audit addressed the key audit
matter
We evaluated the Group’s funding and liquidity
position at 30 June 2021 and its ability to repay its
debts as and when they fall due for a minimum of
12 months from the date of signing the financial
report. In doing so, we:
▪ obtained management’s cash flow forecast
up to 30 September 2022;
▪
evaluated the reliability and accuracy of the
data and assumptions used to prepare
management’s forecasts by comparing them
to financial information in current and prior
years as well as to our understanding of the
operating
Group’s
conditions;
future plans
and
▪ observed and confirmed that management
has the ability to reduce its discretionary
costs and exploration costs to conserve the
Company’s cash;
▪ we also observed that the Company has
its minimum
sufficient cash
exploration commitments; and
to meet
▪
considered events subsequent to year end to
determine whether any additional facts or
information have become available since the
date on which management made
its
assessment.
procedures
evaluating
focused
Our
management’s assessment of the exploration and
evaluation asset’s carrying value. These procedures
included, amongst others:
on
▪
▪
▪
verifying whether the rights to tenure of the
area of interest remained current at balance
date;
obtaining evidence of the future intention for
the area of interest; and
obtaining an understanding of the status of
ongoing exploration programs for the area of
interest.
We also assessed the appropriateness of the
accounting treatment and disclosure in terms of
AASB 6.
40
Other Information
The directors are responsible for the other information. The other information comprises the information in
the Group’s annual report for the year ended 30 June 2021, but does not include the financial report and the
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 the other
information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’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 Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
▪
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
▪ Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
41
▪ 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 Group to express an opinion on the Group financial report. We are responsible for the
direction, supervision and performance of the Group 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, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 16 to 17 of the Directors’ Report for the year
ended 30 June 2021.
In our opinion, the Remuneration Report of Conico Limited for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
23 September 2021
42
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
1. Shareholding as at 15 September 2021
a. Distribution of Shareholders
Category (size of holding)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number of
Shareholders
57
61
164
812
598
1,692
b.
The number of shareholders that held in less than marketable parcels at 15 September 2021 was 159.
c.
The names and relevant interests of the substantial shareholders listed in the holding company’s register
as at 15 September 2021 are:
Shareholder
Tasman Resources Ltd
d. Voting Rights
Number of Ordinary shares
99,302,539
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
e
20 Largest Shareholders — Ordinary Shares
Name
1.
2.
Tasman Resources Ltd
Bnp Paribas Nominees Pty Ltd Acf Clearstream
3. March Bells Pty Ltd
4.
Thomas Harvey Abraham-James
5. Cambrian Limited
6. Arkenstone Pty Ltd
7.
8.
Red Eight Pty Ltd
Tadea Pty Ltd
9. D M Middleton Pty Ltd
10. Norman & Megan Parker < Parker Superfund A/C>
11. Flourish Super Pty Ltd
12. Kalsie Holdings Pty Ltd
13. Bnp Paribas Nominees Pty Ltd
14. Redcode Pty Ltd
15. Apostman Superannuation Pty Ltd
16. Rosherville Pty Ltd
17. Fiducs Limited
18. Laurentiu David Stefan
19. Mr Guy + Mrs Le Page
20. W I G Pty Ltd
Number
Shares Held
% of Issued
Capital
99,302,539
82,661,485
36,764,145
33,328,941
33,328,941
29,165,409
17,000,000
17,000,000
15,000,000
14,240,000
13,382,243
12,000,000
10,752,613
10,000,000
10,000,000
9,700,000
9,528,476
8,823,529
8,793,118
8,000,000
10.65%
8.87%
3.94%
3.58%
3.58%
3.13%
1.82%
1.82%
1.61%
1.53%
1.43%
1.29%
1.15%
1.07%
1.07%
1.04%
1.02%
0.95%
0.94%
0.86%
478,771,439
51.35%
43
2. Unquoted Securities – Options as at 15 September 2021
Holder Name
Date of Expiry
Exercise Price
Various
Various
Various
Various
Various
21 September 2023
24 November 2023
15 January 2024
20 January 2024
30 September 2024
$0.02
$0.04
$0.04
$0.07
$0.04
Number on
issue
Number of
holders
1,000,000
8,500,000
2,300,000
61,312,974
10,000,000
83,112,974
2
8
2
89
2
7
TENEMENT SCHEDULE
Number
Interest %
Location
E63/1790
P63/2045
E63/1267
R63/4
G(A)63/93
M(A)63/669
M(A)63/670
MEL 2017/06
MEL-S 2019/38
MEL 2020/64
MPL 2019/39
MEL-S 2021/24
50
50
50
50
50
50
50
100
100
100
100
100
WA
WA
WA
WA
WA
WA
WA
Greenland
Greenland
Greenland
Greenland
Greenland
44
Level 15, 197 St Georges Terrace
Perth, Western Australia 6000
Telephone: +81 8 9282 5889
Email:
mailroom@conico.com.au
Website: www.conico.com.au
ABN 49 119 057 457
for the Year Ended
30 June 2021