ANN UAL REPORT 201 9
CORPORATE
DIRECTORY
DIRECTORS & COMPANY
SECRETARY
Mr Wayne Trumble
Non-Executive Chairman
Mr Alasdair Cooke
Executive Director
Mr Steve Abbott
Managing Director
Mr Alexander Sundich
Non-Executive Director
Mr Daniel Davis
Company Secretary
REGISTERED
& PRINCIPAL OFFICE
Suite 1, 245 Churchill Avenue
Subiaco 6008
Western Australia
Telephone: +61 8 9426 6400
Facsimile: +61 8 9426 6448
Internet: caravelminerals.com.au
SHARE REGISTER
Security Transfer Registrars Pty Ltd
770 Canning Highway
Applecross 6153
Western Australia
Telephone: +61 8 9315 2333
Facsimile: +61 8 9315 2233
SECURITIES
EXCHANGE LISTING
Australian Securities
Exchange Limited
Home Branch – Perth
Level 40, Central Park
152-158 St George’s Terrace
Perth 6000
Western Australia
ASX CODE
CVV
Fully paid ordinary shares
SOLICITORS
Jackson McDonald
17/225 St Georges Terrace,
Perth WA 6000
AUDITOR
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco 6008
Western Australia
2
TABLE OF
CONTENTS
Overview
2019 Highlights
Managing Director's Report
Report on Activities
Financial Report
Director’s 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
Note to the Consolidated
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
01
02
03
04
17
18
26
27
28
29
30
31
47
48
52
OVERVIEW
Caravel Minerals Limited (ASX:CVV) is focussed on
developing the Caravel Copper Project which is based on
an internationally-significant copper deposit, capable
of producing high-value, high-quality Australian copper
concentrate for export.
The Project is an undeveloped large-scale conventional
open-cut mining and processing copper operation,
located approximately 150kms north-east of Perth. It is
based in a defined Mineral Resource of 1.86Mt (contained
copper at a 0.15% Cu cut-off).
The project area is positioned close to key established
infrastructure including roads, ports, power and service
centre towns. This, combined with its potential scale as
a long-life producer of copper, means the Caravel Copper
Project is emerging as a highly executable project for
development. Its Western Australian location also offers
the strong potential for investment returns derived from
low jurisdiction risk and market significance.
This year, the Company completed a comprehensive
scoping study feasibility work program, advancing the
project towards completion of a Pre-feasibility Study.
The program, reported in the May 2019 Scoping Study
report, delivered a 32% resource increase (contained
copper at 0.15% Cu cut-off), scenario-based mining
and mine optimisation studies, highly favourable
assessments of metallurgical recovery and concentrate
quality. The potential for simple processing using a
standard crush, grind, flotation flowsheet and very
positive assessments of infrastructure and other
requirements for project delivery was also reported.
The Company continues to progress feasibility studies
to create further value in the Caravel Copper Project as
a long-life, low-cost copper operation able to generate
substantial value for all stakeholders.
Excellent resource growth potential exists within Caravel
Mineral’s exploration acreage consisting of 9 exploration
licences (ELs) covering 379km2 of a porphyry copper
mineralised corridor.
1
ANNUAL REPORT 2019CARAVEL MINERALS 2019 HIGHLIGHTS
Extensive
program of
feasibility study
work completed
and released
including:
New geological resource modelling
Metallurgical test work
Mining and processing studies
Infrastructure assessments
Groundwater investigations
Tenure, social and environmental studies
Completion
of core drilling
program
and resource modelling
of higher-grade ore zones
at Bindi and Dasher
Major revision of the
structural geology
model for Bindi
tested with RC drilling intersecting significant
mineralisation below the previous resource
32% increase
in Mineral
Resources
to 1.86Mt of contained copper
(at 0.15% cut off), ranking
Caravel as the largest copper
resource in Western Australia
Very clean project
copper concentrate
with low levels
of impurities
based on initial testing
and analysis
Drilling intersected
mineralised gneiss in the
Dasher footwall which
may add significant
additional resources
Exploration
of Bindi east and
west limbs remain
open to the south
and at depth,
with further drilling
expected to provide additional
mineable resources
Baseline environmental
studies commenced
Stakeholder and
community engagement
with a wide range
of groups
Successful
raising of $1.5M
(after costs) of a
partially underwritten,
non-renounceable
rights issue
2
CARAVEL MINERALSANNUAL REPORT 2019 MANAGING
DIRECTOR’S
REPORT
I am pleased to present this report which details the company’s pursuit of its extensive copper resources in Western
Australia.
In April, the company announced the 32% increase in Mineral Resources to 1.86Mt of contained copper (at 0.15% cut
off), which became the basis of the high-quality Scoping Study work reported in May.
Among the Scoping Study’s highlights were results of metallurgical test work which confirmed very high rougher
recoveries of over 95% to produce copper concentrate (at around 25% Cu). Further analysis has also demonstrated
very low impurities which would make Caravel’s product highly marketable to copper smelters, particularly with tighter
environmental regulations and/or those that require blending to treat complex concentrates.
Lowest cost mineral processing methods are determined by the mineralogy characteristics of the ore bodies. The
Caravel Copper Project’s mineralogical characteristics have been shown to be highly favourable to metallurgical
recovery and the potential for the production of high-quality concentrates from standard comminution and flotation
flowsheets.
A number of other studies into mining, environmental, infrastructure, transport, social and financial issues continue to
add value and de-risk the project.
There is now greater recognition of the project as a result of the technical work program and the confirmation of the
resource as an internationally significant copper deposit able to contribute to growing copper consumption globally
and I wish to thank the suppliers, contractors and consultants who assisted the Caravel Minerals team to deliver
high-quality, technically robust work throughout the year.
The management team continues to progress discussions with investors to advance the project to the next stage.
With a number of key work areas already completed to pre-feasibility levels, Caravel aims to focus on a number of
value-adding opportunities over the next few months to move towards a definitive feasibility study as quickly as
possible.
To fund the new work programs the Company is actively seeking strategic partnerships while continuing to build
value for the company.
I would like to thank all of our stakeholders who are working toward making the Caravel Copper Project a success,
including our staff, contractors, suppliers, advisors, shareholders and the local community members and farmers of
the area.
I look forward to leading the company in 2020 and providing updates as we progress the Caravel Copper Project and
Company.
Steve Abbott
Managing Director
3
ANNUAL REPORT 2019CARAVEL MINERALS REPORT ON ACTIVITIES
Financial Overview
During the year ended 30 June 2019, Caravel raised a
total of $2.73m (after costs) by the issue of 63.7m shares
increasing the number of shares on issue from 120.6m to
184.3m.
The net loss for the year was $3.2m and at 30 June 2019,
the Company had net current assets of $0.44m.
Subsequent to year end, Caravel raised $0.53m by the
issue of 13,252,896 shares in a pro rata rights issue to
fund the ongoing work programme.
Exploration
Field work has focused on the Bindi and Dasher
prospects with drilling programs undertaken at both
during the year. Caravel reviewed the mineralisation
potential of all the exploration licences it holds to ensure
the most effective use of resources.
Seven diamond drill holes (1,098.2m) were completed
at the Bindi and Dasher prospects during the year.
The diamond core holes targeted zones of better
mineralisation in order to improve the companies
understanding of controls on mineralisation. Structural
geological information from the diamond core holes
allowed Caravel to significantly revise the interpretation
of the Bindi deposit, the revised interpretation was used
in the new resource estimate. Geotechnical logging of
the diamond core has provided the information used
to determine preliminary pit wall slopes in the updated
pit optimisations. Core material from the diamond drill
holes was used in metallurgical investigations of copper
recoveries and concentrate properties.
Seven reverse circulation (RC) drill holes (1,601m) were
completed at the Bindi prospect during the year. RC
drilling tested the revised structural model for Bindi
mineralisation focussing on the hinge and Bindi East
areas. The drilling confirmed the overturned east verging
antiformal fold in the mineralised high strain zone at
Bindi replacing the broad open antiform fold interpreted
previously. The RC holes identified depth extensions to
the east limb mineralisation and closer spaced drilling
better defined the north plunging hinge zone.
Figure 1: Bindi section 6,574,300N showing 18CADD005 and the revised overturned east verging antiformal fold interpretation.
4
CARAVEL MINERALSANNUAL REPORT 2019 Resource
The Mineral Resource incorporates over 10 years of
drilling data acquired through exploration campaigns
completed by Caravel from 2009 to January 2019.
In April 2019, the Company announced a 32% increase
(by contained copper at 0.15% Cu cut-off) to the previous
Mineral Resource reported in 2016. The Caravel Copper
Project Mineral Resource (at a 0.15% cut-off) now totals
662 million tonnes at 0.28% Cu, for 1.86 million tonnes
of contained Cu (see Table 1). The new Mineral Resource
was the basis of the Scoping Study issued in May 2019.
The combined reporting of Caravel’s three existing
deposits at Bindi, Dasher and Opie, at cut-off grades
ranging from 0.15 – 0.30% Cu, is included in Table 2 and
the Tonnage/Grade curve in Figure 2. These tonnages
and grades are consistent with similar deposit types
elsewhere in the world.
Table 1: Caravel Copper Project Mineral Resource
Caravel Copper Project1 Mineral Resource
(using 0.15% Cu cut-off).
CATEGORY
Measured
Indicated
Inferred
Total
Mt
-
393.4
268.6
661.9
Cu (%) Mo (ppm) Cu (T)
-
0.29
0.27
0.28
-
57
52
55
-
1,128,800
734,000
1,862,800
Note – appropriate rounding applied
Caravel Copper Project1 Combined Mineral Resource
at Various Cu Cut-off Grades.
Cu Cut-Off (%)
Mt
Cu (%) Mo (ppm)
Cu (T)
0.15
0.20
0.25
0.30
661.9
488.5
372.1
248.5
0.28
0.32
0.35
0.39
55
63
69
77
1,862,800
1,563,600
1,301,600
962,200
Note – appropriate rounding applied
1 Caravel Copper Project combines Bindi, Dasher and Opie deposits.
Caravel Copper Project - Combined Grade and Tonnes (Ind + Inf)
1,400
1,200
1,000
s
e
n
n
o
T
n
o
i
l
l
i
M
800
600
400
200
Mt
Cu(%)
0
0.0
0.1
0.2
0.3
0.4
0.5
Cut-off Grade (Cu %)
0.7
0.6
0.5
0.4
0.3
0.2
0.1
)
%
u
C
(
e
d
a
r
G
0.0
0.6
Note – combines Bindi, Dasher and Opie deposits.
Figure 2: Caravel Copper Project – Combined Grade and Tonnes (Ind +Inf)
Previously Reported Information: This information relates to the Caravel Copper Project Mineral Resource which was prepared in accordance with
the requirements of the JORC Code (2012). This information was included in the Company’s previous announcement as follows: ASX announcement
dated 29 April 2019 Caravel Copper Resource and Project Update or see www.caravelminerals.com.au
The information in this report that relates to Mineral Resources for the Bindi and Dasher deposits is based on and fairly represents information
compiled by Mr Lauritz Barnes, (Consultant with Trepanier Pty Ltd). Mr Barnes is a shareholder of Caravel Minerals. Mr Barnes is a member of
both the Australasian Institute of Mining and Metallurgy and the Australasian Institute of Geoscientists. Mr Barnes has sufficient experience of
relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as Competent
Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr Barnes consents to the inclusion in this report of the matters based on information in the form and context in
which they appear.
5
ANNUAL REPORT 2019CARAVEL MINERALS
Resource Growth Potential
Caravel has defined a large Mineral Resource base that
underpins the May 2019 Scoping Study and will be the
basis for future feasibility studies. Potential exists to
define further resources through extensional drilling at
the currently defined deposits, as well as at several other
prospects within the Company’s tenement holding.
A 2019 reverse circulation (RC) drill hole targeting
down-dip extensions at Bindi East intersected over 200m
of copper mineralisation. Drilled to a vertical depth of
290m, 19CARC004 intersected 202m @ 0.31% Cu and
showed increasing copper grades at depth (see Figure 3).
In addition, the Bindi East and West limbs both remain
open to the south and at depth. The Company believes
that there is a high probability that further drilling would
identify additional mineable resources at Bindi.
At Dasher, copper mineralisation was previously thought
to have been truncated to the west by younger granites,
however diamond core hole 18CADD003 intersected
mineralised gneiss in the footwall (see Figure 4). If
confirmed with additional drilling, this footwall zone
may add significant additional resources to Dasher.
Further drilling may also allow for delineation of Mineral
Resources at the advanced Ninan prospect (located
5km northeast of Bindi, 80% owned by Caravel) where
previous drilling intersected 52m @ 0.51% Cu, 41m @
0.54% Cu and 126m @ 0.26% Cu and 0.18 g/t Au.
In addition, the Company has identified several
prospects including Kurrali, Dasher East and Opie West
(see Figure 5), where previous drilling has intersected
significant copper mineralisation and further drilling may
lead to the delineation of Mineral Resources.
6
CARAVEL MINERALSANNUAL REPORT 2019 Figure 3: Bindi Section 6,573,700N showing 19CARC004 and the broad mineralisation intersected.
Figure 4: Dasher section 6,566,900 showing 18CADD003 and the footwall mineralisation
1 See ASX announcement 20 February 2019
2 See ASX announcement 14 January 2019
3 See ASX announcement 9 April 2015
7
ANNUAL REPORT 2019CARAVEL MINERALS Figure 5: Caravel Copper Project Resources and prospects with drilling (Cu% x m = aggregate of intervals >0.15% Cu, max 4m internal
waste) and bedrock geochemical anomalies (>300ppm Cu)
8
CARAVEL MINERALSANNUAL REPORT 2019 Geotechnical Investigation
Mine designs maximising financial returns have
commenced incorporating geotechnical investigation
studies completed during the year. Geotechnical studies
concluded that the Project area’s fresh rock exhibits
good to very good geotechnical characteristics with pit
walls between 49 – 55 degrees recommended (Table 2)
which strongly support good technical and operational
potential.
Table 2: Preliminary Pit Slope Angles
Weathering
Profile
Inter Ramp Slope
Angle Bindi
Inter Ramp Slope
Angle Dasher
Highly Weathered
Transitional
Fresh
34 - 35
43 - 43
49 - 55
33
44
55
Mining Parameters and Pit Optimisation
The Company’s ability to raise further finance is
contingent on mining studies assessing models that
underpin production projections.
During the year, Orelogy Pty Ltd (Orelogy) completed
mining studies on the Bindi and Dasher deposits for
the Scoping Study which assumed traditional open-pit
mining with all mining activities to be performed by
a mining contractor. Another key finding was that an
owner-operator model using the latest technology has
potential to deliver significant cost savings and will be
evaluated further.
To determine the most appropriate bench height, block
size and loading equipment, a trade-off study was also
completed by Orelogy.
Pit optimisations were carried out to identify and
quantify potential mining inventories within optimal
pit shells. The open pit optimisation was undertaken
utilizing Dassault Systèmes Australia (Geovia) WhittleTM
software, which generates a series of nested pit shells
using “Revenue Factors” based on a set of financial and
other parameters such as costs and metal prices.
The aim of the mine production scheduling was to
generate a practical, realistically achievable schedule
which maximises value within the applied constraints
that:
• Meets mill feed requirements.
• Includes ramp-up considerations for mine
operations as well as the processing plant.
• Avoids excessive and unachievable vertical
advance rates.
Strategic scheduling and cut-off grade optimisation were
undertaken using the Maptek EVOLUTIONTM – STRATEGY
(EVO-STRAT) tool, which uses algorithms to determine
the highest value. To maximise value, scheduling allowed
for lower grade ore to be stockpiled so that higher grade
ore with higher values can be treated sooner.
9
ANNUAL REPORT 2019CARAVEL MINERALS Legend (Cu%)
0.11-0.20%
0.20-0.30%
0.30-0.50%
>0.50%
Bindi Hinge
Bindi East
Bindi West
Figure 6: Bindi Deposit optimised starter pit shells (blue) and final pit shell (purple)
Metallurgy
Comminution
Samples taken from diamond core drilling completed
during the year at Bindi and Dasher confirmed copper
mineralisation at the Caravel Copper Project is almost
entirely course grained chalcopyrite and pyrrhotite.
Molybdenite is also coarse grained and separate from
other sulphides. The gangue is dominantly silicates
(quartz, feldspar, epidote, chlorite, garnet, biotite,
sillimanite) with minor magnetite. As with the sulphides,
the granulite facies metamorphic overprint gives a
dominantly coarse-grained texture.
These mineralogical characteristics are believed to be
highly favourable for metallurgical recovery, and the
potential for the production of high-quality concentrates
from standard flotation flowsheets 1.
Bond work index and SMC (comminution) testing was
completed on a number of composited samples in the
2019 year. Table 3 summarises the results.
The rock testing data shows the ore to be generally
both competent and hard, though within normal range
for comparable deposits. The relatively low UCS levels
and high spread of results within the impact tests may
indicate the presence of planes of weakness in the rock
at a coarser size relative to harder competent ore at finer
particle sizes.
1 See ASX announcements 18 February 2019 and 29 April 2019
10
CARAVEL MINERALSANNUAL REPORT 2019 Table 3: Rock Breakage Functions
BOND
SMC
Test
Unit
USC Impact Rod
Ball
Abrasive
Index
Dwi
Mia
Mih
Mic
A
b
Axb
ta
SCSE
MPA
kWh/t kWh/t
kWh/t
kWh/m3 kWh/t
kWh/t
kWh/t
kWh/t
Data Points
6.0
30.0
4.0
7.0
Max
Min
Avg
132
12.9
15.0
19.8
60
3.6
13.3
15.7
109
6.4
13.9
18.4
6.0
0.3
0.2
0.3
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
7.2
20.6
15.4
8.0
100.0
0.6
51.2
0.5
10.0
5.3
16.0
11.3
5.8
79.3
0.4
37.2
0.4
6.31
18.4
13.5
7.0
89.4
0.5
43.9
0.4
8.9
9.6
Flotation
The majority of flotation testwork carried out during
2019 was on two master composite samples from
holes 18CADD001 and 18CADD002 along with some
individual sample testing for variability. The samples,
at head grades between 0.28 – 0.51% copper, have been
subjected to several rougher and preliminary cleaner
flotation tests utilising different reagent regimes and
grind sizes (106μm and 150μm) at the ALS Metallurgy
laboratory in Perth, Western Australia1.
Rougher recoveries varied between 90% to 99% with
the average of 95.5%. These recoveries exceeded the
previous test results carried out on RC samples as part
of the 2016 Calingiri Project Scoping Study which were
around 92%.
The majority of the recent tests were carried out at a
grind size of 106μm, although those carried out at 150μm
continued to show high recoveries, averaging 95.8%
(versus 96.6% for 106μm). This data indicates that a
coarse rougher grind may be possible (Figure 7).
11
ANNUAL REPORT 2019CARAVEL MINERALS Ro Grade Recovery Curves CV02 (18CADD002 Master Composite)
%
e
d
a
r
G
u
C
30.0
25.0
20.0
15.0
10.0
5.0
0.0
CT5768 3418A 106μm
CT5805 3418A 106μm
CT5769 3418A 150μm
CT5785 A3894 106μm
CT5786 SEX 106μm
CT5818 No Reagents in Mill 150μm
70
80
90
100
Recovery %
Figure 7: : Example of rougher recoveries from CV02 Master Composite
Ro Kinetics CV02 (18CADD002 Master Composite)
100.0
90.0
80.0
%
e
d
a
r
G
u
C
70.0
60.0
CT5768 3418A 106μm
CT5769 3418A 150μm
CT5785 3894 106μm
CT5786 SEX 106μm
CT5805 3418A 106μm
CT5818 No Reagents in Mill 150μm
0
2
4
6
8
10
Times (mins)
12
14
16
18
20
Figure 8: : Example of rougher kinetics from CV02 Master Composite
Initial analysis on a composite sample from a three stage molybdenum flotation circuit indicates that a separate
molybdenum concentrate grading ~46% Mo could be produced at a recovery of ~71%.
12
CARAVEL MINERALSANNUAL REPORT 2019
Mineral Processing
Flotation
Caravel Copper Project process design was undertaken
by MSP Engineering, which specialises in the
evaluation, engineering design, project management
and construction of mineral processing facilities and
infrastructure.
Cyclone overflow from the ball mill will report to a
conventional copper flotation circuit consisting of
roughing, regrind and three stages of cleaning with
scavenging. Tailings from the flotation circuit will be
pumped to the tailings thickener.
Concentrate Handling
Sulphide flotation concentrate will be pumped to the
concentrate thickener where the thickened underflow
will report to an agitated concentrate filter feed tank.
Plate pressure filters will filter the concentrate on a
batch basis to a moisture content of 10%. Filter cake will
discharge to a conveyor and then be transferred to the
concentrate storage shed.
Molybdenum (Moly) Recovery
Initial test work has indicated that a separate, small
flotation circuit consisting of roughers, scavengers and
cleaning stages would treat the Cu/Mo concentrate to
produce a clean Mo concentrate. The Mo flotation tails
would be the final Cu concentrate.
Tailings Disposal
Caravel undertook more detailed investigations into
tailings disposal storage methods and locations. The
study produced preferred options for tailings disposal
and storage, which will be further modelled in future
feasibility studies.
MSP Engineering completed a process optimisation study
in late 2018/early 2019 to determine the optimum process
route to treat the Project’s ore. The study resulted in
a standard crush, grind, flotation flowsheet for the
production of copper concentrate for export.
Primary Crushing
A gyratory crusher will be utilised for primary crushing.
Ore will be direct dumped from the mine by haul trucks
or by front end loader into a feed pocket and crushed in
the gyratory crusher. Crushed ore will be extracted by
apron feeder and discharged to the crushed ore stockpile
via the crusher discharge conveyor.
Secondary Crushing
Ore from the crushed ore stockpile will be conveyed to
two secondary screens. The oversize from the screens
will be sent to cone crushers in closed circuit with the
screens. The undersize from the screens will be conveyed
to the feed bin for the high pressure grinding roll.
High Pressure Grinding Roll (HPGR)
The HPGR will be in closed circuit with flake breakage and
wet screening to prepare a product to feed a ball mill.
Undersize from the screens will be fed to the ball mill
cyclone cluster.
Grinding
A ball mill in closed circuit with a cyclone cluster will
grind the ore in preparation for feed to the flotation
circuit.
13
ANNUAL REPORT 2019CARAVEL MINERALS Initial Copper Concentrate Analyses
Table 4: Copper Concentrate Analyses Results
During the year, Caravel Minerals completed initial
copper concentrate analyses on composite samples
from the Caravel Copper Project. The results
demonstrate a very clean copper concentrate
product with low levels of impurities.
As smelting capacity increases globally, smelters
are increasingly seeking clean concentrate to blend
with complex concentrates (concentrates containing
impurities above threshold levels). Based on the
level of impurities of the Caravel concentrate, the
Project’s concentrate is likely to be a sought-after
product by copper smelters.
Initial copper concentrate analyses are provided in
Table 4.
1 This information was prepared in accordance with the
requirements of the JORC Code (2012) and included in the
Company’s AS announcement “Caravel Copper Project
Initial Copper Concentrate Analyses” dated 18 June 2019
which can be found at www.caravelminerals.com.au
Element
Cu (%)
Ag (ppm)
Au (ppm)
As (%)
Bi (%)
Cd (ppm)
Cl (%)
F (ppm)
Fe (%)
Hg (ppm)
Pb (%)
S (%)
Sb (ppm)
Se (ppm)
Zn (%)
Caravel
Concentrate¹
~25%
118
~2
<0.01
0.01
<5
<0.01
200
26.5
0.5
<0.01
29.3
0.70
40.0
0.20
14
CARAVEL MINERALSANNUAL REPORT 2019 Transport
A transport study was carried out by Qube Bulk looking
at various options to transport concentrate from site
to a suitable export port and on to a ship. The study
concluded that the export through Geraldton or Bunbury
were both viable options by trucking from site utilising
the Rotabox system to handle and store the product into
the vessel hold.
Water
Potential water sources were investigated by the study
team during 2019 through desktop reviews and initial
consultations.
These included reviews of paleochannels that extend
through the Wheatbelt that may be capable of
contributing a significant volume of water to the Project.
Modelling and field work are planned to evaluate the
long-term sustainability of water supply from the
channels.
Figure 9. Project location near existing
public roads and potential export ports
CARAVEL MINERALS
Image courtesy of www.wongantourism.com.au
15
ANNUAL REPORT 2019 ANNUAL REPORT 2019
Environment and Approvals
Baseline environmental survey work commenced in
September 2018 to obtain data to a standard for use in
future or potential environmental impact assessments
(EIA). Early completion of surveys allows project design
to protect and plan for improvement of environmental
values and the timely preparation of required
documentation for future approvals processes.
Stakeholders and Social Sustainability
Caravel Minerals has met with and briefed government,
non-government and community stakeholders - including
landholders, regulators, state government agencies, local
government organisations, elected representatives, local
residents and business owners, industry professionals
and consultants.
Caravel Minerals continues to consult widely with key
stakeholders regarding the stage and definition of the
project.
Investors and Strategic Funding
Following the release of the Scoping Study, the forward
work program involves completion of a Pre-feasibility
Study (PFS) and Definitive Feasibility Study (DFS). Subject
to funding, these may commence in conjunction with
advancing several opportunities to enhance financial
metrics of the Project.
Completion of a PFS is expected to take approximately
6 months and a DFS including permitting is expected to
take a further 18-24 months. The targeted timeframe to
reach a decision to mine is late-2021.
Project execution is contingent on securing funding that
maximises the benefits to all shareholders. The financing
strategies would include consideration of a range of
factors including:
• Securing a fully funded solution.
• Minimising potential dilution to existing Caravel
Minerals shareholders.
• Obtaining flexible funding solutions to ensure the
continuation of exploration activities and capturing
potential development opportunities.
A primary aim of the work undertaken in the last 12
months has been to demonstrate that the Caravel Copper
Project has positive economics and strong potential to
become a large-scale, long-life, low to mid-cost producer.
16
CARAVEL MINERALS FINANCIAL REP OR T
30 JUNE 2019
CARAVEL MINERALS
17
Directors’ Report
30 June 2019
The Directors of Caravel Minerals Limited (the “company” or “Caravel”) present their report on the consolidated entity (the “group”)
Directors’ Report
consisting of Caravel Minerals Limited and its subsidiaries for the year ended 30 June 2019.
30 June 2019
DIRECTORS
The Directors of Caravel Minerals Limited (the “company” or “Caravel”) present their report on the consolidated entity (the “group”)
QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES OF DIRECTORS
consisting of Caravel Minerals Limited and its subsidiaries for the year ended 30 June 2019.
Wayne Trumble ‐ Chairman
DIRECTORS
Mr Trumble is a senior executive with 35 years of specific industry expertise in mining, electricity, investment and construction. Mr
Trumble is currently employed as energy manager for Newmont Mining energy subsidiary Newmont Power Pty Ltd managing the
QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES OF DIRECTORS
supply of energy to the KCGM mining operations in Kalgoorlie.
Wayne Trumble ‐ Chairman
Mr Trumble is a senior executive with 35 years of specific industry expertise in mining, electricity, investment and construction. Mr
For the twelve years to 2013, Mr Trumble was the Executive General Manager of Griffin Power Pty Ltd, reporting to he Board of the
Trumble is currently employed as energy manager for Newmont Mining energy subsidiary Newmont Power Pty Ltd managing the
Griffin Group, where he led Griffin’s move from fuel supplier to electricity generator. Mr Trumble led the team responsible for
supply of energy to the KCGM mining operations in Kalgoorlie.
preparation of strategy and the development, execution and operation of Griffin’s $1.2 billion Bluewaters coal fired project,
providing 436 MW of base load power in Western Australia.
For the twelve years to 2013, Mr Trumble was the Executive General Manager of Griffin Power Pty Ltd, reporting to he Board of the
Griffin Group, where he led Griffin’s move from fuel supplier to electricity generator. Mr Trumble led the team responsible for
preparation of strategy and the development, execution and operation of Griffin’s $1.2 billion Bluewaters coal fired project,
providing 436 MW of base load power in Western Australia.
Other current directorships
None
Special responsibilities
Chairman
Other current directorships
Former directorships in the last three years
None
African Energy Resources Ltd
Molopo Energy Limited
Clean Energy Investment Holdings
Former directorships in the last three years
Energy Made Clean Pty Ltd
African Energy Resources Ltd
Molopo Energy Limited
Clean Energy Investment Holdings
Energy Made Clean Pty Ltd
Special responsibilities
Interests in shares and options
Chairman
500,000 options
Interests in shares and options
500,000 options
Stephen Abbott ‐ Managing Director (appointed 28 May 2019)
A highly regarded mining executive with more than 24 years’ experience in senior international and resource sector roles. Mr
Abbott has proven technical and management experience at senior levels across exploration, mining, processing, metallurgy,
maintenance, smelting, refining, infrastructure, approvals and stakeholder engagement.
Stephen Abbott ‐ Managing Director (appointed 28 May 2019)
Prior to Caravel, Mr Abbott worked as General Manager Iron Ore and Industrial Minerals for BC Iron and General Manager Business
A highly regarded mining executive with more than 24 years’ experience in senior international and resource sector roles. Mr
Development for Gindalbie Minerals.
Abbott has proven technical and management experience at senior levels across exploration, mining, processing, metallurgy,
maintenance, smelting, refining, infrastructure, approvals and stakeholder engagement.
Earlier in his career, Mr Abbott spent eight years at Western Mining Corporation where he held various mechanical engineer and
Prior to Caravel, Mr Abbott worked as General Manager Iron Ore and Industrial Minerals for BC Iron and General Manager Business
metallurgist roles culminating in a period as smelter superintendent at Olympic Dam.
Development for Gindalbie Minerals.
Mr Abbott holds a Bachelor of Engineering from Curtin University of Technology as well as a Post Graduate Diploma in Metallurgy
and he attained an MBA from La Trobe University. He completed a diploma at Australian Institute of Company Directors.
Earlier in his career, Mr Abbott spent eight years at Western Mining Corporation where he held various mechanical engineer and
metallurgist roles culminating in a period as smelter superintendent at Olympic Dam.
Special responsibilities
Mr Abbott holds a Bachelor of Engineering from Curtin University of Technology as well as a Post Graduate Diploma in Metallurgy
Managing Director
and he attained an MBA from La Trobe University. He completed a diploma at Australian Institute of Company Directors.
Other current directorships
Nil
Former directorships in the last three years
Other current directorships
None
Nil
Interests in shares and options
Special responsibilities
457,144 shares
Managing Director
8,000,000 options
Former directorships in the last three years
None
Interests in shares and options
Alasdair Cooke ‐ Executive Director
457,144 shares
Alasdair Cooke has over 30‐years experience in the mining
resource
8,000,000 options
companies. Alasdair is a qualified geologist with a track record of successful exploration and project development. He is a founding
partner of Perth‐based investment and technical services company Mitchell River Group (MRG). MRG has established a number
Alasdair Cooke ‐ Executive Director
of successful mining projects including greenfield mines in Australia, Africa and South America. Mr Cooke is also the Chairman of
Alasdair Cooke has over 30‐years experience in the mining
industry with over 15 years managing public resource
African Energy Resources and a Director of EVE Investments and Anova Metals.
companies. Alasdair is a qualified geologist with a track record of successful exploration and project development. He is a founding
partner of Perth‐based investment and technical services company Mitchell River Group (MRG). MRG has established a number
Alasdair is a substantial shareholder of Caravel Minerals and was instrumental to the ore‐sorting proof of concept for the Caravel
of successful mining projects including greenfield mines in Australia, Africa and South America. Mr Cooke is also the Chairman of
Minerals Copper Project. MRG was also responsible for development of the first commercial ore‐sorting installation for gold in
African Energy Resources and a Director of EVE Investments and Anova Metals.
Australia, at the Second Fortune mine near Laverton, WA.
industry with over 15 years managing public
Alasdair is a substantial shareholder of Caravel Minerals and was instrumental to the ore‐sorting proof of concept for the Caravel
Minerals Copper Project. MRG was also responsible for development of the first commercial ore‐sorting installation for gold in
Australia, at the Second Fortune mine near Laverton, WA.
Special responsibilities
Executive Director
Other current directorships
EVE Investments Limited
Anova Metals Limited
African Energy Resources Ltd
Other current directorships
EVE Investments Limited
Former directorships in the last three years
Anova Metals Limited
None
African Energy Resources Ltd
Special responsibilities
Executive Director
Interests in shares and options
18,767,581 shares
2,000,000 options
Financial Report 2019
Former directorships in the last three years
None
3
Interests in shares and options
18,767,581 shares
2,000,000 options
Caravel Minerals Limited
Financial Report 2019
3
Caravel Minerals Limited
18
CARAVEL MINERALSANNUAL REPORT 2019
Directors’ Report
30 June 2019
Alexander Sundich ‐ Non‐Executive Director
Alex Sundich has over 30‐years experience in the financial services industry and has been an independent corporate advisor and
company director since 2008, focusing on clients in the mining industry.
Other current directorships
Petrel Energy Limited ‐ Chairman
Ellex Medical Limited
Special responsibilities
Nil
Former directorships in the last three years
Burleson Energy Limited
Cleveland Mining Limited
Interests in shares and options
1,044,900 shares
500,000 options
Daniel Davis – CFO and Company Secretary
Daniel is a qualified accountant who has fifteen years‐experience in senior accounting and corporate roles for resources businesses
in all stages from exploration to development, construction and mining. He has been company secretary of ASX‐listed companies
African Energy Resources, Albidon and Energy Ventures (now EVE Investments) in the past ten years.
PRINCIPAL ACTIVITIES
The principal activities of the group during the financial year were the exploration of mineral tenements in Western Australia
(“WA”).
DIVIDENDS
No dividends have been declared, provided for or paid in respect of the year ended 30 June 2019 (30 June 2018: nil)
CORPORATE AND FINANCIAL POSITION
In August 2018, Caravel completed a partially underwritten rights issue raising $1.51M (after costs).
In February 2019, Caravel completed a rights issue and subsequent share placement for shortfall over‐subscriptions to raise $1.22M
(after costs).
The group’s net loss from operations for the year was $3,211,611 (2018: $2,483,941).
At 30 June 2019, the group had net current assets of $398,496 (2018: $347,894). Subsequent to year end, Caravel raised $530,116
by the issue of 13,252,896 shares in a pro rata rights issue. The Directors believe there are sufficient funds to meet the Group’s
working capital requirements and as at the date of this report the Group believes it can meet all liabilities as and when they fall
due.
This report is prepared on the going concern basis which assumes the continuity of normal business activity and the realisation of
assets and settlement of liabilities in the normal course of business.
The Directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion that the going
concern basis of accounting is appropriate as they believe the Group will continue to be successful in securing additional funds
through equity issues as and when the need to raise funds arises.
BUSINESS STRATEGIES AND PROSPECTS
The group currently has the following business strategies and prospects over the medium to long term:
Seek to maximise the value of the group through successful exploration activities;
(i)
(ii) Develop the Caravel Copper Project
(iii) Selectively expand the group’s portfolio of exploration assets; and
(iv) Examine other new business development opportunities in the mining and resources sector.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Appointment of Stephen Abbott as Managing Director on 29 May 2019.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 24 September 2019, the Company completed a 1 for 7 entitlement issue raising $530,116 by the issue of 13,252,896 shares.
Except for the matters detailed above, at the date of this report there are no other matters or circumstances, which have arisen
since 30 June 2019 that have significantly affected or may significantly affect:
(i)
(ii)
(iii)
the operations in financial years subsequent to 30 June 2019 of the group;
the results of those operations in financial years subsequent to 30 June 2019 of the group; or
the state of affairs in financial years subsequent to 30 June 2019 of the group.
Financial Report 2019
4
Caravel Minerals Limited
19
ANNUAL REPORT 2019CARAVEL MINERALS Directors’ Report
30 June 2019
ENVIRONMENTAL REGULATION AND PERFORMANCE
The group’s operations are subject to various environmental laws and regulations under the relevant government’s legislation. Full
compliance with these laws and regulations is regarded as a minimum standard for all operations to achieve.
Instances of environmental non‐compliance by an operation are identified either by external compliance audits or inspections by
relevant government authorities. There have been no significant known breaches by the group during the financial period.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
It is the Board's current intention that the group will seek to progress exploration on current projects. The group will also continue
to examine new opportunities in the mining and resources sector where appropriate.
These activities are inherently risky and there can be no certainty that the group will be able to successfully achieve the objectives.
GREENHOUSE GAS AND ENERGY DATA REPORTING REQUIREMENTS
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to
report annual greenhouse gas emissions and energy use. The directors have assessed that there are no current reporting
requirements, but may be required to do so in the future.
MEETINGS OF DIRECTORS
The following table sets out the number of meetings of the Company's directors held during the year ended 30 June 2019, and the
number of meetings attended by each director.
Wayne Trumble
Alexander Sundich
Stephen Abbott
Alasdair Cooke
INSURANCE OF OFFICERS AND AUDITORS
Board Meetings
Number Eligible
to attend
7
Board Meetings
Number
attended
7
7
1
7
7
1
7
During or since the end of the financial year the Company has given an indemnity or entered into an agreement to indemnify, or
paid or agreed to pay insurance premiums as follows:
The Company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in
defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company, other than
conduct involving a wilful breach of duty in relation to the Company. The amount of the premium was $9,766 (2018: $8,679)
exclusive of GST.
SHARE OPTIONS ON ISSUE AT THE DATE OF THIS REPORT
UNISSUED SHARES
At the date of this report, the unissued ordinary shares of Caravel Minerals Limited under option are as follows
Unquoted (exercise price $0.068 and expiry date 28 March 2020)
Unquoted (exercise price $0.10 and expiry date 12 May 2020)
Unquoted (exercise price $0.08 and expiry date 30 September 2021)
Unquoted (exercise price $0.08 and expiry date 30 September 2021)*
Total existing Options
1,400,000
400,000
10,900,000
6,000,000
28,700,000
*6,000,000 options to be issued to the managing director, Stephen Abbott, subject to shareholder approval at the 2019 AGM
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body
corporate.
SHARES ISSUED AS A RESULT OF THE EXERCISE OF OPTIONS
During the financial year, employees and executives did not exercise any options to acquire ordinary shares.
NON‐AUDIT SERVICES
There were no non‐audit services provided during the year by the auditor, BDO Audit (WA) Pty Ltd.
Financial Report 2019
5
Caravel Minerals Limited
20
CARAVEL MINERALSANNUAL REPORT 2019 Directors’ Report
30 June 2019
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is on page 26 of the Annual Report.
REMUNERATION REPORT
(AUDITED)
This Remuneration Report outlines the director and executive remuneration arrangements of the Company in accordance with the
requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report Key Management Personnel (KMP)
of the Group are defined as those persons having the authority and responsibility for planning, directing and controlling the major
activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group. Based on this
definition the KMP of Caravel Minerals Limited are the directors of the Company.
DETAILS OF KEY MANAGEMENT PERSONNEL
Directors
Wayne Trumble
Stephen Abbott
Alasdair Cooke
Alexander Sundich
Non‐Executive Director and Non‐Executive Chairman
Managing Director (appointed 28 May 2019)
Executive Director
Non‐Executive Director
There were no changes in KMP after the reporting date and before the date the annual financial report was authorised for issue.
REMUNERATION PHILOSOPHY
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the Company must attract,
motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre executives; and
Link executive rewards to shareholder value.
Due to the early stage of development which the Company is in, shareholder wealth is directly affected by the Company share price,
as the Company is not in a position to pay dividends. By remunerating Directors and Executives in part by share based payments,
the Company aims to align the interests of Directors and Executives with Shareholder wealth, thus providing individual incentive to
perform and thereby improving overall Company performance and associated value.
As the Company has been incorporated since June 2006 and remains in the development stage of an inherently risky industry, the
remuneration policy does not currently take into account current or prior year earnings. Other than share based payments made
to the directors from time to time, there is no specific link to the Company’s performance and directors’ remuneration.
REMUNERATION STRUCTURE
In accordance with best practice corporate governance, the structure of non‐executive director and executive remuneration is
separate and distinct.
NON‐EXECUTIVE DIRECTOR REMUNERATION
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain directors
to the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate directors' fees payable to non‐executive directors shall be
determined from time to time by a general meeting. An amount not exceeding the amount determined is then divided between
the directors as agreed. Shareholders’ have approved aggregate directors' fees payable of $300,000 per year.
The Board determines payments to the non‐executive directors and reviews their remuneration annually, based on market practice,
duties and accountability. Independent external advice is sought when required. Cash fees for non‐executive directors are not linked
to the performance of the Company or shareholder wealth.
All remuneration paid to Non‐Executive Directors is valued at cost to the Company and expensed.
The remuneration of Non‐Executive Directors for the years ended 30 June 2019 and 30 June 2018 is detailed below, within this
section.
EXECUTIVE REMUNERATION
Objective
The Company aims to reward executives (both directors and company executives) with a level and mix of remuneration
commensurate with their position and responsibilities within the Company and so as to:
Financial Report 2019
6
Caravel Minerals Limited
21
ANNUAL REPORT 2019CARAVEL MINERALS Directors’ Report
30 June 2019
Reward executives for Company performance;
Align the interest of executives with those of shareholders; and
Ensure total remuneration is competitive by market standards.
Structure
The remuneration policy for executives is to provide a fixed remuneration component and a specific equity related component. The
board believes that this remuneration policy is appropriate given the stage of development of the Company and the activities which
it undertakes and is appropriate in aligning director objectives with shareholder and business objectives.
The remuneration policy going forward in regard to setting the terms and conditions for the executive directors has been
developed by the board taking into account market conditions and comparable salary levels for companies of a similar size and
operating in similar sectors.
Fixed Remuneration
Objective
The level of fixed remuneration is set so as to provide a base level of remuneration.
Fixed remuneration is to be reviewed annually and the process consists of a review of company and individual performance, relevant
comparative remuneration in the market and internal policies and practices.
Structure
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash and fringe benefits. It
is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost for the Company.
The remuneration policy going forward in regard to setting the terms and conditions for the executive directors has been developed
by the board taking into account market conditions and comparable salary levels for companies of a similar size and operating in
similar sectors.
The remuneration of executives for the years ended 30 June 2019 and 30 June 2018 is detailed below, within this section.
Variable Remuneration
Objective
The objective of variable remuneration provided is to reward executives in a manner which aligns this element of remuneration
with the creation of shareholder wealth. Mr Abbott was granted a bonus of $50,000 upon his appointment on 29 May 2019 payable
upon securing funding for a definitive feasibility study. The bonus was not payable at balance date.
Structure
Variable remuneration may be delivered in the form of options, shares or cash bonus. No cash bonuses were granted or paid during
the year ended 30 June 2019 or in the prior year.
Executives receive a superannuation guarantee contribution required by the government, which is currently 9.5% (9.5% for the year
ended 30 June 2018) and do not receive any other retirement benefit. Some individuals, however, may choose to sacrifice part of
their salary to increase payments towards superannuation.
Options Granted
All Directors were awarded options during the year. All options were granted over unissued fully paid ordinary shares in the
company. The number of options granted was determined having regard to the factors described above. Options vest based on the
provision of service over the vesting period whereby the director becomes beneficially entitled to the option on vesting date.
Options are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options other
than on their potential exercise.
Financial Report 2019
7
Caravel Minerals Limited
22
CARAVEL MINERALSANNUAL REPORT 2019 Directors’ Report
30 June 2019
Date of issue
Number of options
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Fair value per options ($)
Share price at grant date ($)
Awarded to
Stephen Abbott*
Alasdair Cooke
Wayne Trumble
Alex Sundich
29/11/2018
3,000,000
0%
100.00%
1.50%
2.8
$0.080
$0.028
$0.040
28/05/2019
3,000,000
0%
75.00%
1.50%
1.0
$0.080
$0.005
$0.043
28/05/2019
3,000,000
0%
75.00%
1.50%
2.3
$0.080
$0.012
$0.043
‐
2,000,000
500,000
500,000
3,000,000
‐
‐
‐
3,000,000
‐
‐
‐
*3,000,000 options awarded to Mr Abbott are to vest upon continued employment with the Company for 12 months. 3,000,000
options awarded to Mr Abbott are to vest upon the Company obtaining the funding to complete a definitive feasibility study.
No compensation options were exercised during the year.
EMPLOYMENT CONTRACTS
Executive Director (current)
The employment conditions of Managing Director, Mr Stephen Abbott, are formalised in a contract of employment which
commenced on 29 May 2019. The total current remuneration package as at 30 June 2019 was $250,000 per annum plus statutory
superannuation. Notice of three months is required for either party to terminate the contract.
The employment conditions of Executive Director, Mr Alasdair Cooke, are formalised in a contract of employment which was in
place for the whole year. The total current remuneration package as at 30 June 2018 was $150,000 per annum. Notice of one month
is required for either party to terminate the contract.
Financial Report 2019
8
Caravel Minerals Limited
23
ANNUAL REPORT 2019CARAVEL MINERALS Directors’ Report
30 June 2019
Key Management Personnel Remuneration
Key Management
Personnel remuneration ‐
2019
Non‐Executive Directors
Alexander Sundich
Wayne Trumble
Executive Directors
Stephen Abbott*
Alasdair Cooke
Total
Key Management
Personnel remuneration ‐
2018
Non‐Executive Directors
James Harris**
Peter Alexander**
Daniel Ryan**
Alexander Sundich***
Wayne Trumble***
Executive Directors
Marcel Hilmer**
Alasdair Cooke***
Total
Short term employee
benefits
Post‐
employment
benefits
Share based
payments
%
Performance‐
based
Total
Cash salary
Termination
Superannuation
Options
32,026
10,900
20,833
172,049
235,808
‐
‐
‐
‐
‐
3,042
22,688
1,979
‐
27,709
14,450
14,450
4,571
57,800
91,271
29%
30%
17%
25%
26%
49,518
48,038
27,383
229,849
354,789
Short term employee
benefits
Post‐
employment
benefits
Share based
payments
%
Performance‐
based
Total
Cash salary
Termination
Superannuation
Options
14,341
19,138
8,113
4,667
2,945
207,170
16,849
273,223
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
73,362
‐
73,362
20,115
‐
20,115
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
14,341
19,138
8,113
4,667
2,945
300,647
16,849
366,700
*Mr Abbott was appointed on 28 May 2019
** Messrs Harris, Alexander, Ryan and Hilmer were terminated in May 2018
*** Messrs Cooke, Sundich and Trumble were appointed in May 2018
SHARE BASED COMPENSATION
SHARES ISSUED
No shares were granted as compensation to KMP’s during the year ended 30 June 2019 (June 2018: nil).
ADDITIONAL DISCLOSURES RELATING TO KEY MANAGEMENT PERSONNEL
SHAREHOLDING
The number of shares in the company held during the financial year by KMP of the consolidated entity, including their personally
related parties, is set out below:
Non‐Executive Directors
Alexander Sundich
Wayne Trumble
Executive Directors
Stephen Abbott
Alasdair Cooke
Total
Balance at
30/06/2018
Balance at
Date of
Appointment
Purchases
Balance at
30/06/2019
Balance at
Reporting
Date
600,001
‐
‐
10,640,992
11,240,993
‐
‐
314,286
‐
914,287
‐
1,044,900
‐
400,001
‐
400,001
‐
5,768,140
6,082,426
400,001
16,409,132
17,723,420
457,144
18,767,581
20,269,625
Financial Report 2019
9
Caravel Minerals Limited
24
CARAVEL MINERALSANNUAL REPORT 2019 Directors’ Report
30 June 2019
OPTION HOLDING
The number of options over ordinary shares in the company held during the financial year by KMP of the consolidated entity,
including related parties, is set out below:
Balance at
30/06/2018
Balance at
Date of
Appointment
Issued as
remuneration
during the
year
Expired
During the
Year
Balance at
30/06/2019
Vested and
exercisable
Non‐Executive Directors
Alexander Sundich
Wayne Trumble
Executive Directors
Stephen Abbott
Alasdair Cooke
Total
159,507
‐
‐
4,557,408
4,716,915
USE OF REMUNERATION CONSULTANTS
‐
‐
500,000
500,000
(159,507)
‐
500,000
500,000
500,000
500,000
2,000,000
‐
2,000,000
6,000,000
2,000,000
9,000,000
‐
(1,657,408)
(1,816,915)
8,000,000
4,900,000
13,900,000
2,000,000
‐
3,000,000
The company did not use the services of any remuneration consultants during the year.
VOTING AND COMMENTS MADE AT THE COMPANY’S 2018 ANNUAL GENERAL MEETING
At the Annual General Meeting held on 29 November 2018 the company’s shareholders did not record a vote of more than 25%
against the Remuneration Report and no questions were raised at the meeting in relation to the Remuneration Report.
LOANS TO KEY MANAGEMENT PERSONNEL
During the year ending 30 June 2019, $366,436 (2018: $25,200) was paid to Mitchell River Group, of which Mr Alasdair Cooke is a
part owner, for provision of serviced offices and geological consultancy. $40,793 remained unpaid at 30 June 2019.
No loans to key management personnel were provided during the period or up to the date of signing this report.
END OF AUDITED REMUNERATION REPORT
Signed in accordance with a resolution of the directors.
Stephen Abbott
Managing Director
27 September 2019
Financial Report 2019
10
Caravel Minerals Limited
25
ANNUAL REPORT 2019CARAVEL MINERALS Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF CARAVEL MINERALS LIMITED
As lead auditor of Caravel Minerals Limited for the year ended 30 June 2019, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Caravel Minerals Limited and the entities it controlled during the year.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 27 September 2019
26
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
CARAVEL MINERALSANNUAL REPORT 2019 Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2019
Other Income
Gain on Sale of Listed Investment
Administration services
Employee expenses
Exploration expenses
Gain / (Loss) on disposal of fixed assets
Loss from continuing operations before income tax expense
Income tax expense
Loss from continuing operations
Loss for the year
Other comprehensive income
Comprehensive loss attributable to the shareholders of the Company
Comprehensive loss attributable to the shareholders of the Company arises from:
Basic and diluted loss per share (cents per share) for continuing operations
attributable to the shareholders of the Company
Basic and diluted loss per share (cents per share) attributable to the
shareholders of the Company
Note
3.1
3.2
3.2
3.4
2019
$
192,506
46,033
(335,286)
(895,067)
(2,252,712)
32,915
(3,211,611)
‐
(3,211,611)
(3,211,611)
‐
(3,211,611)
2018
$
40,555
‐
(506,689)
(705,643)
(1,300,175)
(11,989)
(2,483,941)
‐
(2,483,941)
(2,483,941)
‐
(2,483,941)
3.5
3.5
(2.06)
(2.06)
(2.48)
(2.48)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes
Financial Report 2019
12
Caravel Minerals Limited
27
ANNUAL REPORT 2019CARAVEL MINERALS Consolidated Statement of Financial Position
As at 30 June 2019
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non‐current assets
Exploration and evaluation expenditure
Property, plant and equipment
Total non‐current assets
Total assets
Liabilities
Current liabilities
Trade & other payables
Total current liabilities
Total liabilities
Net assets
Equity
Share capital
Accumulated loss
Reserves
Total equity attributable to shareholders of the Company
Note
2019
$
2018
$
4.1
4.3
2.1
2.2
4.4
5.1
713,451
59,638
6,673
779,762
3,107,811
151,566
3,259,377
4,039,139
335,941
335,941
335,941
586,838
57,507
26,200
670,545
3,107,811
98,848
3,206,659
3,877,204
322,651
322,651
322,651
3,703,198
3,554,553
45,503,512
(44,852,380)
3,052,066
3,703,198
42,451,988
(41,640,769)
2,743,334
3,554,553
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Financial Report 2019
13
Caravel Minerals Limited
28
CARAVEL MINERALSANNUAL REPORT 2019 Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2019
At 30 June 2018
Loss for the year
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Issue of new shares net of cost
Share‐based payments
At 30 June 2019
At 30 June 2017
Loss for the year
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Issue of new shares net of cost
At 30 June 2018
Contributed
equity
Accumulated
losses
$
42,451,988
‐
‐
$
(41,640,769)
(3,211,611)
(3,211,611)
Share‐Based
Payments
Reserve
Total
equity
$
$
2,743,334
3,554,553
‐
‐
(3,211,611)
(3,211,611)
2,728,312
323,213
3,051,524
45,503,512
‐
‐
‐
(44,852,380)
39,880,018
‐
‐
(39,156,828)
(2,483,941)
(2,483,941)
2,571,970
2,571,970
42,451,988
‐
‐
(41,640,769)
‐
308,732
308,732
3,052,066
2,743,334
‐
‐
‐
‐
2,743,334
2,728,312
631,945
3,360,256
3,703,198
3,466,524
(2,483,941)
(2,483,941)
‐
2,571,970
2,571,970
3,554,553
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes
Financial Report 2019
14
Caravel Minerals Limited
29
ANNUAL REPORT 2019CARAVEL MINERALS Consolidated Statement of Cash Flows
For the Year Ended 30 June 2019
Note
2019
$
2018
$
Cash flows from operating activities
Interest received
Government grants
Payments to suppliers and employees
Payments for exploration and evaluation expenditure
Net cash (outflow) from operating activities
4.2
Cash flows from investing activities
Proceeds from receipt of security deposits
(Payments)/proceeds for property, plant and equipment
Net cash inflow from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue costs
Net cash inflow/(outflow) from financing activities
Cash and cash equivalents at the beginning of the year
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at the end of the year
4.1
4.1
3,718
158,788
(1,093,306)
(1,652,903)
(2,583,703)
11,519
29,036
(1,012,973)
(1,030,873)
(2,003,291)
20,000
(37,996)
(17,996)
2,862,516
(134,204)
2,728,312
586,838
126,613
713,451
24,000
(24,228)
(228)
2,410,292
(107,624)
2,302,668
287,689
299,149
586,838
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes
Financial Report 2019
15
Caravel Minerals Limited
30
CARAVEL MINERALSANNUAL REPORT 2019 Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
1.
BASIS OF PREPARATION
The annual report of Caravel Minerals Limited for the year ended 30 June 2019 was authorised for issue in accordance with a
resolution of the directors on 27 September 2019.
1.1. STATEMENT OF COMPLIANCE
These financial statements are general purpose financial statements which have been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements
of the Australian Accounting Standards Board.
Caravel Minerals Limited is a for‐profit entity for the purpose of preparing the financial statements.
1.2. BASIS OF MEASUREMENT
The financial report has been prepared on a historical cost basis.
1.3. FUNCTIONAL AND PRESENTATION CURRENCY
The financial report is presented in Australian dollars.
1.4. COMPLIANCE WITH IFRS
These financial statements comply with Australian Accounting Standards as issued by the Australian Accounting
Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
1.5. PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Caravel Minerals Limited
(‘company’ or ‘parent entity’) as at 30 June 2019 and the results of all subsidiaries for the year then ended. Caravel
Minerals Limited and its subsidiaries together are referred to in this financial report as the group or the consolidated
entity.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an
entity when the consolidated entity 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. Subsidiaries are fully
consolidated from the date on which control is transferred to the consolidated entity. They are de‐consolidated from
the date that control ceases.
A list of controlled entities is contained in note 6.1.1 to the financial statements.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non‐controlling interest acquired is recognised directly
in equity attributable to the parent.
Non‐controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the consolidated
entity. Losses incurred by the consolidated entity are attributed to the non‐controlling interest in full, even if that results
in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non‐controlling interest in the subsidiary together with any cumulative translation differences recognised in equity.
The consolidated entity recognises the fair value of the consideration received and the fair value of any investment
retained together with any gain or loss in profit or loss.
1.6. GOING CONCERN
This report is prepared on the going concern basis which assumes the continuity of normal business activity and the
realisation of assets and settlement of liabilities in the normal course of business.
The Group incurred a net loss of $3,211,611 during the year ended 30 June 2019 (2018: $2,483,941) and as of that date
the Group had net current assets of $443,821 (30 June 2018: $347,894) including cash and cash equivalents of $713,451
(30 June 2018: $586,838). Net cash used in operating activities for the period was $2,583,703 (2018: $2,003,291).
Financial Report 2019
16
Caravel Minerals Limited
31
ANNUAL REPORT 2019CARAVEL MINERALS Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to continue as a
going concern. The ability of the Group to continue as a going concern is principally dependent upon its ability to secure
funds by raising capital from equity markets or by other means, and by managing cash flows in line with available funds,
and/or the successful development of its exploration assets.
The Directors are confident of the ability of the Company to potentially raise capital as and when required. The Directors
are satisfied there are sufficient funds to meet the Group’s working capital requirements as at the date of this report.
Subsequent to balance date, the Company completed a rights issue as outlined in Note 8.1.
The Directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion that
the going concern basis of accounting is appropriate as they believe the Group will continue to be successful in securing
additional funds as and when the need to raise funds arises. Should the Group not be able to continue as a going concern,
it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at
amounts that differ from those stated in the financial statements and that the financial report does not include any
adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be
necessary should the entity not continue as a going concern.
1.7. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements
and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances,
the results of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions.
Management has identified the following critical accounting policies for which significant judgements, estimates and
assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and
may materially affect financial results or the financial position reported in future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial
statements.
Significant accounting judgements
The determination of mineral resources impacts the accounting for asset carrying values. Caravel Minerals Limited
estimates its mineral resources in accordance with the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the ‘JORC’ Code). The information on mineral resources was prepared by or under
the supervision of Competent Persons as defined in the JORC Code. The amounts presented are based on the mineral
resources determined under the JORC Code.
There are numerous uncertainties inherent in estimating mineral resources, and assumptions that are valid at the time
of estimation may change significantly when new information becomes available.
Significant accounting estimates and assumptions
Exploration and evaluation expenditure
Exploration and evaluation expenditure is assessed for impairment if sufficient data exists to determine technical
feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable
amount.
Exploration and evaluation expenditure is assessed for indicators of impairment in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources when any of the following facts and circumstances exist:
The term of exploration licence in the specific area of interest has expired during the reporting period or will
expire in the near future, and is not expected to be renewed;
Substantive expenditure on further exploration and/ or evaluation of mineral resources in the specific area
are not budgeted nor planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the decision was made to discontinue such activities
in the specified area; or
Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
Financial Report 2019 17
Caravel Minerals Limited
32
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to continue as a
going concern. The ability of the Group to continue as a going concern is principally dependent upon its ability to secure
funds by raising capital from equity markets or by other means, and by managing cash flows in line with available funds,
and/or the successful development of its exploration assets.
The Directors are confident of the ability of the Company to potentially raise capital as and when required. The Directors
are satisfied there are sufficient funds to meet the Group’s working capital requirements as at the date of this report.
Subsequent to balance date, the Company completed a rights issue as outlined in Note 8.1.
The Directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion that
the going concern basis of accounting is appropriate as they believe the Group will continue to be successful in securing
additional funds as and when the need to raise funds arises. Should the Group not be able to continue as a going concern,
it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at
amounts that differ from those stated in the financial statements and that the financial report does not include any
adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be
necessary should the entity not continue as a going concern.
1.7. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements
and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances,
the results of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions.
Management has identified the following critical accounting policies for which significant judgements, estimates and
assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and
may materially affect financial results or the financial position reported in future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial
statements.
Significant accounting judgements
The determination of mineral resources impacts the accounting for asset carrying values. Caravel Minerals Limited
estimates its mineral resources in accordance with the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves 2012 (the ‘JORC’ Code). The information on mineral resources was prepared by or under
the supervision of Competent Persons as defined in the JORC Code. The amounts presented are based on the mineral
resources determined under the JORC Code.
There are numerous uncertainties inherent in estimating mineral resources, and assumptions that are valid at the time
of estimation may change significantly when new information becomes available.
Significant accounting estimates and assumptions
Exploration and evaluation expenditure
Exploration and evaluation expenditure is assessed for impairment if sufficient data exists to determine technical
feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable
amount.
Exploration and evaluation expenditure is assessed for indicators of impairment in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources when any of the following facts and circumstances exist:
The term of exploration licence in the specific area of interest has expired during the reporting period or will
expire in the near future, and is not expected to be renewed;
Substantive expenditure on further exploration and/ or evaluation of mineral resources in the specific area
are not budgeted nor planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the decision was made to discontinue such activities
in the specified area; or
Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
Financial Report 2019 17
Caravel Minerals Limited
33
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses
are included in the Statement of profit or loss and other comprehensive income.
Land and building ‐ Cost
Accumulated depreciation
Net carrying amount
Computer Equipment ‐ Cost
Accumulated depreciation
Net carrying amount
Vehicles ‐ Cost
Accumulated depreciation
Net carrying amount
Exploration Equipment ‐ Cost
Accumulated depreciation
Net carrying amount
Total Property Plant and Equipment
Accumulated depreciation
Net carrying amount
2.3.
IMPAIRMENT OF ASSETS
2019
$
2018
$
100,165
(8,167)
91,998
4,618
(1,757)
2,861
65,369
(42,022)
23,347
47,895
(14,535)
33,360
218,047
(66,481)
151,566
72,921
(2,102)
70,819
2,038
(561)
1,477
120,567
(111,600)
8,967
22,190
(4,605)
17,585
217,716
(118,868)
98,848
Caravel Minerals Limited conducts an annual internal review of asset values, which is used as a source of information to
assess for any indicators of impairment. External factors, such as changes in expected future processes, technology and
economic conditions, are also monitored to assess for indicators of impairment. If any indication of impairment exists,
an estimate of the asset’s recoverable amount is calculated.
An impairment loss is recognised for the amount by which the asset’s carrying value exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are
largely independent of the cash inflows from other assets or groups of assets (cash‐generating units). Non‐financial
assets other than goodwill that suffered an impairment are tested for possible reversal of the impairment whenever
events or changes in circumstances indicate that the impairment may have reversed.
No impairment indicators were noted for the year ended 30 June 2019.
3. FINANCIAL PERFORMANCE
3.1. OTHER INCOME
Other income is recognised to the extent that it is probable that economic benefits will flow to the Group and the income
can be reliably measured. Other income is measured at the fair value of the consideration received or receivable.
Other Income
Research & Development tax offset
Interest revenue
Other income
2019
$
2018
$
158,788
3,718
30,000
192,506
‐
11,519
29,036
40,555
Financial Report 2019 19
Caravel Minerals Limited
34
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
3.2. EXPENSES
Administration services
Audit, tax and accounting
Compliance & insurance
Legal fees
Marketing
Occupancy
Depreciation
Travel
Employee expenses
Directors Fees
Salaries and wages
Termination payments
Superannuation
Payroll Tax & Fringe Benefits Tax
Share based payments expense – Directors and employees
Other share based payments (SBP)
SBP consultants – included in Administration services
SBP drilling contractors – included in Exploration expenses
2019
$
2018
$
60,452
52,051
11,382
82,361
113,855
4,277
10,908
335,286
234,595
318,969
‐
29,032
3,739
308,732
895,067
‐
323,213
323,213
27,594
57,465
185,323
36,449
170,984
15,308
13,566
506,689
273,223
253,617
146,635
32,168
‐
‐
705,643
8,250
261,053
269,303
3.3. SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the board of directors that are
used to make strategic decisions. The Group does not have any material operating segments with discrete financial
information. The Group does not have any customers and all its’ assets and liabilities are primarily related to the mining
industry and are located within Australia. The Board of Directors review internal management reports on a regular basis
that is consistent with the information provided in the statement of profit or loss and other comprehensive income,
statement of financial position and statement of cash flows. As a result no reconciliation is required because the
information as presented is what is used by the Board to make strategic decisions.
3.4.
INCOME TAX
The income tax expense for the period is the tax payable on the current period’s taxable income based on the national
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to
unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the
assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for
each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary
differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising
from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these
temporary differences if they arose on goodwill or in a transaction, other than a business combination, that at the time
of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset
to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it
has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
Financial Report 2019 20
Caravel Minerals Limited
35
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
assets against tax liabilities and the deferred tax liabilities relate to the same taxable entity and the same taxation
authority.
Caravel Minerals Limited and its wholly‐owned Australian controlled entities have implemented the tax consolidation
legislation as of 1 July 2013. As a consequence, these entities are taxed as a single entity and the deferred tax assets and
liabilities of these entities are set off in the consolidated financial statements.
(a) The major components of income tax are:
Current income tax
Current income tax benefit
Current income tax benefit not recognised
Deferred income tax
Relating to the origination and reversal of temporary differences
Deferred Income Tax Charge not Recognised
Income tax expense reported in the income statement
(b) A reconciliation between tax expense and the product of accounting loss
before tax multiplied by the Company’s applicable income tax rate is as
follows:
Accounting loss before tax from continuing operations
Loss before income tax from discontinued operations
Accounting loss before income tax
At the Company’s statutory income tax rate of 27.5% (2017: 27.5%)
Non‐deductible expenses
Share based payments
DTA not brought to account as their realisation is not probable
Income tax expense reported in the consolidated income statement
Income tax attributable to discontinued operations
Deferred tax assets have not been recognised in respect of
Provisions and accruals
Business related costs
Carry forward revenue losses
Capital losses
Foreign losses
2019
$
2018
$
(880,362)
880,362
(601,921)
601,921
41,792
(41,792)
‐
45,192
(45,192)
‐
(3,211,611)
‐
(3,211,611)
(883,193)
(40,279)
84,901
838,571
‐
‐
‐
‐
2019
$
12,775
68,728
13,103,715
242,503
2,480
13,430,201
(2,483,941)
‐
(2,483,941)
(683,084)
372
80,791
601,921
‐
‐
‐
‐
2018
$
4,532
63,034
13,453,524
286,109
2,480
13,809,679
3.5. LOSS PER SHARE
Basic earnings per share is calculated by dividing the profit/loss attributable to equity holders of the Group, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the period, adjusted for bonus elements in ordinary shares issued during the period.
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after 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.
Financial Report 2019 21
Caravel Minerals Limited
36
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
The following reflects the income and share data used in the calculations of basic and diluted loss per share:
Gain (Loss) attributable to ordinary shareholders
Issued number of ordinary shares at 1 July
Effect of shares issued during the period
Weighted average number of shares for year to 30 June
2019
$
2018
$
(3,211,611)
(2,483,941)
120,621,214
35,572,256
156,193,470
68,429,777
31,670,452
100,100,229
Basic loss per share (cents per share)
(2.06)
(2.48)
As at reporting date, 21,600,000 (2018: 37,213,222) unlisted options (which represent potential ordinary shares) were
not dilutive as they would decrease the loss per share.
There have been no conversions to, calls of, or subscriptions for ordinary shares or issues of potential ordinary shares
since the reporting date and before the completion of this financial report.
4. WORKING CAPITAL MANAGEMENT
4.1. CASH AND CASH EQUIVALENTS
“Cash and cash equivalents” includes cash on hand, deposits held at call with financial institutions and other short‐term
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of any bank overdrafts.
Cash at bank and in hand
Short‐term deposits
2019
$
693,451
20,000
713,451
2018
$
542,838
44,000
586,838
4.2. RECONCILIATION OF NET LOSS AFTER INCOME TAX EXPENSE TO NET CASH USED IN OPERATING ACTIVITIES
Cash flows from operating activities
(Loss) for the year
Adjustments for:
Equity‐settled share‐based payment expenses
Exploration expenses settled by issue of Shares
Depreciation and amortisation expense
(Profit)/Loss on disposal of Plant & Equipment
Change in operating assets & liabilities
(Increase) / decrease in receivables
Increase / (decrease) in payables
Decrease in provisions
Net cash used in operating activities
2019
$
2018
$
(3,211,611)
(2,483,941)
308,732
323,213
18,193
(32,915)
(2,605)
13,290
‐
(2,583,703)
‐
269,303
15,308
11,519
(49,567)
275,274
(41,186)
(2,003,290)
Financial Report 2019 22
Caravel Minerals Limited
37
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
4.3. TRADE AND OTHER RECEIVABLES
Trade receivables are initially recognised and carried at original invoice amount less allowance for expected credit loss.
Trade receivables are due for settlement no more than 30 days from the date of recognition. A provision for impairment
is made based on a forward‐looking expected credit loss model in line the requirements of AASB 9. Bad debts are written
off when identified.
Trade debtors
GST receivable
2019
$
2018
$
5,726
53,912
59,638
‐
57,507
57,507
The Group’s management considers that all of the above financial assets that are not impaired or past due for each of
the 30 June reporting dates under review are of good credit quality (refer to 5.6(1).
4.4. TRADE AND OTHER PAYABLES
Trade and other payables are carried at amortised cost and represent liabilities for the goods and services provided to
the Group prior to the end of the financial period that are unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid
within 30 days.
Trade payables
Accrued expenses
Other payables
5. FUNDING AND RISK MANAGEMENT
2019
$
277,078
45,325
13,538
335,941
2018
$
135,943
159,411
27,297
322,651
The Group's objectives when managing capital are to safeguard their ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in the
proportion to the number and amount paid on the shares held. Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a
business are not included in the cost of the acquisition as part of the purchase consideration.
5.1. CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Issued and paid up capital is recognised at the fair value of the consideration
received by the Company.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Contributed equity
Cost of share issue
5.2. MOVEMENT IN SHARES ON ISSUE
2019
$
47,601,525
(2,098,013)
45,503,512
2018
$
44,415,797
(1,963,809)
42,451,988
Ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the Company, to
participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on
shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
Financial Report 2019 23
Caravel Minerals Limited
38
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
5.2.1. ORDINARY SHARES
(1) Ordinary Shares
Date
Number of
shares
Issue price
cents
$
Balance 30 June 2017
Share Placement
Share Placement
Contractor share based payments
Share Placement
Entitlement Issue
Entitlement Issue (Underwriters)
Capital raising
Contractor share based payments
Contractor share based payments
Less Transaction costs
Balance 30 June 2018
Entitlement Issue
Contractor share based payments
Entitlement Issue
Share Placement
Contractor share based payments
Exercise of Options
Contractor share based payments
Less Transaction costs
Balance 30 June 2019
5.2.2. TREASURY SHARES
Balance 30 June 2017
Changes from 1 Jul 2017 to 30 Jun 2018
Balance 30 June 2018
Changes from 1 Jul 2018 to 30 Jun 2019
Balance 30 June 2019
5.3. UNLISTED OPTIONS
Outstanding at the beginning of the year
Issued during the year
Expired or lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
5.4. CAPITAL RISK MANAGEMENT
13 Jul 2017
30 Aug 2017
05 Sep 2017
08 Dec 2017
18 Jan 2018
18 Jan 2018
20 Feb 2018
12 Jun 2018
12 Jun 2018
30 Jun 2018
13 Sep 2018
30 Nov 2018
01 Mar 2019
06 Mar 2019
07 Mar 2019
19 Jun 2019
28 Jun 2019
30 Jun 2019
68,429,777
13,554,000
3,246,000
453,614
8,000,000
13,864,730
9,556,118
907,596
2,486,838
122,541
‐
120,621,214
32,495,251
1,405,522
22,074,569
2,680,000
1,827,020
341
3,261,122
‐
184,365,039
5.0
5.0
5.8
5.0
5.0
5.0
5.8
7.3
6.1
‐
5.0
4.9
5.0
5.0
5.0
5.0
5.0
‐
39,880,018
678,200
161,800
26,491
400,000
693,237
477,806
52,787
181,774
7,500
(107,624)
42,451,988
1,624,763
68,805
1,103,728
134,000
91,351
17
163,056
(134,196)
45,503,512
Date
Number of
shares
Issue price
cents
$
3,695,244
‐
3,695,244
‐
3,695,244
‐
‐
‐
2019
Number
37,213,222
16,900,000
(26,513,222)
27,600,000
2018
Number
11,502,809
25,710,413
‐
37,213,222
21,600,000
37,213,222
When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to
maintain optimal returns to shareholders and benefits for other stakeholders.
Being at an exploration stage, the Company does not generate cash inflows from its operations to fund its exploration
and working capital requirements, therefore, the Company may issue shares to either generate cash for operations or
to acquire assets in order to maintain adequate levels of cash reserves.
Financial Report 2019 24
Caravel Minerals Limited
39
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
During the financial year ended 30 June 2019, the Company issued 63,743,825 ordinary shares (2018: 52,191,437
ordinary shares).
The Company is not subject to any externally imposed capital requirements.
5.5. SIGNIFICANT NON‐CASH FINANCING AND INVESTING ACTIVITIES
On 28 June 2019, 3,261,122 (2018: nil) shares were issued to engineering contractors in payment of engineering services
performed.
During the year, 3,232,542 (2018: 3,848,048) shares were issued to drilling contractors in payment of drilling services
performed. In the year ended 30 June 2018, a further 122,541 were issued to marketing consultants in payment of
consulting fees.
5.6. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise cash and short‐term deposits.
The main purpose of these financial instruments is to fund capital expenditure on the Group’s operations. The Group has
various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its
operations. It is, and has been throughout the period under review, the Group’s policy that no trading in financial
instruments shall be undertaken. Being at an exploration stage, the Group has limited exposure to risks arising from its
financial instruments.
Currently the Group does not have any exposure to commodity price risk or foreign currency risk as the Group has ceased
operations in Spain. As the Group moves into development and production phases, exposure to commodity price risk,
foreign currency risk and credit risk are expected to increase. The Board will set appropriate policies to manage these
risks dependent on market conditions and requirements at that time.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and
financial liability are disclosed in Note 1.
5.6.1. CREDIT RISK
Credit risk represents the loss that would be recognised if counterparties fail to perform as contracted. The Group’s
maximum exposure to credit risk at reporting date in relation to each class of financial asset is the carrying amount of
those assets as indicated in the statement of financial position. The majority of cash and cash equivalents is held with
one Australian Bank which has an AA‐ long‐term credit rating from Standard and Poor’s.
Wherever possible, the Group trades only with recognised, credit worthy third parties. There are no significant
concentrations of credit risk within the Group. Since the Group trades only with recognised third parties, there is no
requirement for collateral.
5.6.2. LIQUIDITY RISK
Liquidity risk is the risk that the Group does not have sufficient funds to pay its debts as and when they become due and
payable. The Group currently does not have major funding in place. However the Group continuously monitors forecast
and actual cash flows and the maturity profiles of financial assets and financial liabilities to manage its liquidity risk.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans
if and when required.
Cash at bank and on hand, as set out in Note 4.1, is available for use by the Group without restrictions.
Financial liabilities of the Group at 30 June 2019 are expected to be settled within 6 months of year‐end.
5.6.3. MARKET RISK
(A) PRICE RISK
The group is not exposed to equity securities price risk. The group is not exposed to commodity price risk. The sensitivity
of movements in the price has not been disclosed as it is not material to the Group.
(B) FOREIGN CURRENCY RISK
The group do not have any foreign currency balances and therefore is not exposed to any foreign currency risk.
(C)
INTEREST RATE RISK
The following tables summarise the sensitivity of the Group’s financial assets to interest rate risk. Had the relevant
variables, as illustrated in the tables, moved, with all other variables held constant, post tax loss and equity would have
Financial Report 2019 25
Caravel Minerals Limited
40
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
been affected as shown. The analysis has been performed on the same basis for 2019 and 2018 and represents
management’s judgement of a reasonably possible movement.
30 June 2019
Cash and cash equivalents
Other current assets
30 June 2018
Cash and cash equivalents
Other current assets
Interest Rate Risk ‐1%
Equity
Net Loss
$
$
Interest Rate Risk +1%
Equity
Net Gain
$
$
Carrying
Amount
$
713,451
66,311
(7,135)
(663)
(7,135)
(663)
‐
‐
(5,868)
(262)
7,135
663
‐
‐
5,868
262
7,135
663
‐
‐
5,868
262
586,838
83,707
(5,868)
(262)
None of the Group’s financial liabilities are interest bearing. Unless otherwise stated, the carrying amounts of financial
instruments reflect their fair value.
6. GROUP STRUCTURE
6.1. BASIS OF CONSOLIDATION
6.1.1. SUBSIDIARIES
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity
when the Group 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. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Investments in subsidiaries are carried at their cost of acquisition in the Company’s financial statements.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1:
Name of entity
Quadrio Resources Pty Ltd
Caravel Employee Share Plan Pty Ltd
Country of
incorporation
Australia
Australia
Equity holding
100%
100%
Date of
incorporation
11 June 1985
13 March 2013
Caravel Resources Netherlands Cooperatief U.A.
Netherlands
99.999%
16 July 2012
6.1.2. TRANSACTIONS ELIMINATED ON CONSOLIDATION
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions,
are eliminated in preparing the consolidated financial statements.
6.1.3. COMPARATIVES
Prior period comparatives are for the year from 1 July 2017 to 30 June 2018.
Financial Report 2019 26
Caravel Minerals Limited
41
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
6.2. PARENT ENTITY INFORMATION
The following information relates to the parent entity, Caravel Minerals Limited. The information presented has been
prepared using accounting policies that are consistent with those presented in the Notes to the Financial Statements.
Current Assets
Non‐Current Assets
Total Assets
Current Liabilities
Total Liabilities
Contributed equity
Accumulated losses
Reserves
Total Equity
Gain (loss) for the year
Other comprehensive income / (loss) for the year
Total comprehensive income / (loss) for the year
2019
$
676,360
3,325,200
4,001,560
298,362
298,362
2018
$
557,001
3,301,695
3,858,697
304,144
304,144
45,503,512
(44,852,380)
3,052,066
3,703,198
42,451,988
(41,640,769)
2,743,334
3,554,553
(1,186,549)
‐
(1,186,549)
(3,925,655)
‐
(3,925,655)
Caravel Minerals Limited has not issued any guarantees on behalf of subsidiaries.
7. RELATED PARTIES
7.1. RELATED PARTIES
Details relating to key management personnel, including remuneration paid, are included in the audited remuneration
report section of the directors’ report. The aggregate compensation made to directors and other members of key
management personnel of the consolidated entity is set out below:
Short term employee benefits
Post‐employment benefits
Share based payments
Total compensation
7.2. TRANSACTIONS WITH OTHER RELATED PARTIES
2019
$
235,808
27,709
91,271
354,789
2018
$
346,585
20,115
‐
366,700
During the year ending 30 June 2019, $366,436 (2018: $25,200) was paid to Mitchell River Group, of which Mr Alasdair
Cooke is a part owner, for provision of serviced offices and geological consultancy. $40,793 remained unpaid at 30 June
2019 (30 June 2018: nil)
7.3. SHARE BASED PAYMENTS
The Group provides benefits to Directors, employees, consultants and other advisors of the Group in the form of share‐
based payments, whereby the Directors, employees, consultants and other advisors render services in exchange for
shares or rights over shares (equity‐settled transactions).
The cost of these equity‐settled transactions is measured by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value is determined using a Black‐Scholes model or fair value of services.
In valuing equity‐settled transactions, no account is taken of any performance conditions, other than conditions linked
to the market price of the shares of the Company if applicable.
The cost of equity‐settled transactions is recognised, together with a corresponding increase in equity, over the period
in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant recipient
becomes fully entitled to the award (the vesting period).
The cumulative expense recognised for equity‐settled transactions at each reporting date until vesting date reflects (i)
the extent to which the vesting period has expired and (ii) the Company’s best estimate of the number of equity
Financial Report 2019 27
Caravel Minerals Limited
42
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being
met as the effect of these conditions is included in the determination of fair value at grant date. The statement of profit
or loss and other comprehensive income charge or credit for a period represents the movement in cumulative expense
recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional
upon a market condition.
If the terms of an equity‐settled award are modified, as a minimum an expense is recognised as if the terms had not
been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share‐
based payment arrangement, or is otherwise beneficial to the recipient, as measured at the date of modification.
If an equity‐settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not
yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award
and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they
were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of loss per
share (see Note 3.5).
Under the employee share scheme, shares are issued to employees by providing interest free loans and will vest over
the restriction period. The shares are held by the Trust until the loan is repaid. Within the loan period the employee must
have paid off the loan balance, at which point the shares are delivered to the employee, or surrendered the shares.
Surrender of the shares by the employee after the restriction period, is treated as discharging any outstanding amount
on the loan, irrespective of the value of the shares.
The effect of such an arrangement is equivalent to an option with a strike price per share equal to the share price on
grant date.
7.4. EMPLOYEE SHARE ACQUISITION PLAN
Shareholders approved the establishment of the Caravel Employee Option Plan at a general meeting on 23 August 2017.
The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in,
share options granted as consideration for services provided to the Company during the year:
Outstanding at the beginning of the year
Granted during the year
Expired or lapsed during the year
Outstanding at the end of the year
Exercisable at the end of the year
2019
Number
1,800,000
16,900,000
‐
18,700,000
12,700,000
2019
WAEP
0.08
0.08
‐
0.08
0.08
2018
Number
2,900,000
‐
1,100,000
1,800,000
1,800,000
2018
WAEP
0.07
‐
0.06
0.08
0.08
Weighted average remaining contractual life of options at 30 June 2019: 2.04 years (2018: 1.77 years)
7.5. OPTION PRICING MODEL
Options granted during the year have been valued using the Black‐Scholes Option Valuation model, which takes account
of factors including the option exercise price, the current level and volatility of the underlying share price, the risk‐free
interest rate, expected dividends on the underlying share, current market price of the underlying share and the expected
life of the option. See below for the assumptions used for grants made during the year ended 30 June 2019:
Date of issue
Number of options
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Share price at grant date ($)
Fair value per option ($)
27/09/2018
7,900,000
0%
100.00%
1.50%
2.9
$0.080
$0.040
$0.028
29/11/2018
3,000,000
0%
100.00%
1.50%
2.8
$0.080
$0.054
$0.027
28/05/2019
3,000,000
0%
75.00%
1.50%
1.0
$0.080
$0.043
28/05/2019
3,000,000
0%
75.00%
1.50%
2.3
$0.080
$0.043
$0.012
$0.005
10,900,000 options awarded on 27/09/2018 and 29/11/2018 vested immediately
Financial Report 2019 28
Caravel Minerals Limited
43
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
3,000,000 options awarded on 28/05/2019 are to vest upon continued employment with the Company for 12
months
3,000,000 options awarded on 28/05/2019 are to vest upon the Company obtaining the funding to complete
a definitive feasibility study.
The dividend yield reflects the assumption that the current dividend payout will remain unchanged. The expected life of
the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected
volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily
be the actual outcome.
7.6. SHARES
During the year 6,493,664 ordinary shares were issued to contractors of the Company for drilling and engineering
services. The shares were issued at market value calculated by a 10‐day VWAP at the end of each invoice month for a
total consideration of $323,213. The value of the services could not be reliably determined and therefore, were
measured at their fair value calculated on the 10‐day VWAP (volume weighted) trading price of the company’s share
price for the last 10 days of each calendar month in which the invoice was received.
7.7. RECOGNISED SHARE BASED PAYMENT EXPENSE IN PROFIT OR LOSS
Expense arising from employee options issued
Shares issued for marketing services
Shares issued for drilling and engineering services
Total share‐based payments expensed in profit or loss
8. OTHER
8.1. EVENTS OCCURRING AFTER THE REPORTING PERIOD
2019
$
2018
$
308,732
‐
323,213
631,945
‐
8,250
261,053
269,303
On 24 September 2019, the Company completed a 1 for 7 entitlement issue raising $530,116 by the issue of 13,252,896
shares.
Other than the matters above, at the date of this report there are no other matters or circumstances which have arisen
since 30 June 2019 that have significantly affected or may significantly affect:
the operations, in financial years subsequent to 30 June 2019, of the Group;
the results of those operations, in financial years subsequent to 30 June 2019, of the Group.
8.2. COMMITMENTS AND CONTINGENCIES
The Company has certain obligations to perform minimum exploration work on the tenements in which it has an interest.
These obligations vary from time to time. The aggregate of the prescribed expenditure conditions applicable to the
granted tenements for the next twelve months amounts to $610,000.
Application for exemption from all or some of the prescribed expenditure conditions will be made but no assurance is
given that any such application will be granted. Nevertheless, the Company is optimistic, given its level of expenditure in
the North Perth Basin, that it would likely be granted exemptions, on a project basis, in respect of the prescribed
expenditure conditions applicable to many of its North Perth Basin tenements.
If the prescribed expenditure conditions are not met with respect to a tenement, that tenement is liable to forfeiture.
The Company has the ability to diminish its exposure under these conditions through the application of a variety of
techniques including applying for exemptions (from the regulatory expenditure obligations), surrendering tenements,
relinquishing portions of tenements or entering into farm‐out agreements whereby third parties bear the burdens of
such obligation in whole or in part.
As at 30 June 2019 Caravel Minerals Limited has no contingent liabilities.
Financial Report 2019 29
Caravel Minerals Limited
44
CARAVEL MINERALSANNUAL REPORT 2019
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
8.3. REMUNERATION OF AUDITORS
Amount received or due and receivable by the auditor for:
Auditing the financial statements, including audit review ‐ current year audits
Total remuneration of auditors
8.4. NEW AND REVISED ACCOUNTING STANDARDS
Early adoption of accounting standards
2019
$
2018
$
33,434
33,434
35,000
35,000
The Group has not elected to apply any pronouncements before their operative date in the annual reporting year
beginning 1 July 2018.
New and amended standards adopted by the Group
(i) AASB 9 Financial Instruments
The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments:
Recognition and Measurement'.
AASB 9 introduces new classification and measurement models for financial assets. A financial asset shall be measured
at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual
cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to
be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial
recognition to present gains and losses on equity instruments (that are not held‐for‐trading) in other comprehensive
income ('OCI'). For financial liabilities, the standard requires the portion of the change in fair value that relates to the
entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge
accounting requirements are intended to more closely align the accounting treatment with the risk management
activities of the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an
allowance.
Impairment will be measured under a 12‐month ECL method unless the credit risk on a financial instrument has increased
significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional
new disclosures.
The Group has adopted AASB 9 from 1 July 2018 retrospectively with the effect of initially applying this standard
recognised at the date of initial application, being 1 July 2018 and has elected not to restate comparative information.
The Group has adopted this standard from 1 July 2018 and the impact is not material to the Group.
(ii) AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting periods beginning on or after 1 January 2017. The standard provides a
single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services.
The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate
performance obligations within the contract; determine the transaction price, adjusted for the time value of money
excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative
stand‐alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist;
and recognition of revenue when each performance obligation is satisfied.
Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the performance
obligation would be satisfied when the customer obtains control of the goods. For services, the performance obligation
is satisfied when the service has been provided, typically for promises to transfer services to customers. For performance
obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much
revenue should be recognised as the performance obligation is satisfied. Contracts with customers will be presented in
an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the
relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative
disclosure is required to enable users to understand the contracts with customers; the significant judgments made in
Financial Report 2019 30
Caravel Minerals Limited
45
ANNUAL REPORT 2019CARAVEL MINERALS
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2019
applying the guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a
customer.
The Group has adopted this standard from 1 July 2018 and the impact is not material to the group.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the Group.
New accounting standards and interpretations not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2019. The Group’s
assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
Group, are set out below.
AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019)
When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases
and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for
leases to be classified as operating or finance leases.
The main changes introduced by the new Standard include:
Recognition of a right‐to‐use asset and liability for all leases (excluding short‐term leases with less than 12 months
of tenure and leases relating to low‐value assets);
Depreciation of right‐to‐use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and
unwinding of the liability in principal and interest components;
Variable lease payments that depend on an index or a rate are included in the initial measurement of the lease
liability using the index or rate at the commencement date;
By applying a practical expedient, a lessee is permitted to elect not to separate non‐lease components and instead
account for all components as a lease; and
Additional disclosure requirements.
AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019 with early adoption permitted.
The impact on the Group’s financial assets and financial liabilities of the adoption of AASB 16 is expected to be immaterial
to the Group.
Financial Report 2019
31
Caravel Minerals Limited
46
CARAVEL MINERALSANNUAL REPORT 2019 Directors Declaration
In accordance with a resolution of the directors of Caravel Minerals Limited, I state that:
(1)
In the opinion of the directors:
(a)
the financial statements, notes and the additional disclosures included in the directors’ report designated as audited, of
the Group are in accordance with the Corporations Act 2001 including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its performance for the
period ended on that date; and
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
(2)
(3)
The Company has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
This declaration has been made after receiving the declarations required to be made to the directors in accordance with
section 295A of the Corporations Act 2001 for the year ended 30 June 2019.
On behalf of the Board.
Stephen Abbott
Managing Director
27 September 2019
Financial Report 2019 32
Caravel Minerals Limited
47
ANNUAL REPORT 2019CARAVEL MINERALS
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Caravel Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Caravel Minerals Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2019, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, 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 2019 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are 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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1.6 in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
48
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
CARAVEL MINERALSANNUAL REPORT 2019 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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
The carrying value of the capitalised
exploration and evaluation asset as at 30 June
2019 is disclosed in Notes 1.7 and 2.1 of the
financial report.
As the carrying value of the exploration and
evaluation asset represents a significant asset
of the Group, we considered it necessary to
assess whether any facts or circumstances
exist to suggest that the carrying amount of
this asset may exceed its recoverable amount.
Judgement is applied in determining the
treatment of exploration expenditure in
accordance with Australian Accounting
Standard AASB 6 Exploration for and
Evaluation of Mineral Resources. In
particular:
• Whether the conditions for
capitalisation are satisfied;
• Which elements of exploration and
evaluation expenditures qualify for
recognition; and
• Whether facts and circumstances
indicate that the exploration and
expenditure assets should be tested
for impairment.
Our procedures included, but were not limited to:
•
•
•
•
•
Obtaining a schedule of the area of interest
held by the Company and assessing whether
the rights to tenure of the area of interest
remained current at balance date;
Considering the status of the ongoing
exploration programmes in the area of
interest by holding discussions with
management, and reviewing the Company’s
exploration budgets, ASX announcements
and director’s minutes;
Considering whether the area of interest
had reached a stage where a reasonable
assessment of economically recoverable
reserves existed;
Considering whether any facts or
circumstances existed to suggest
impairment testing was required; and
Assessing the adequacy of the related
disclosures in Notes 1.7 ad 2.1 to the
financial report.
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 2019, but does not include the
financial report and the auditor’s report thereon.
49
ANNUAL REPORT 2019CARAVEL MINERALS 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 this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 21 to 25 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of Caravel Minerals Limited, for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
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CARAVEL MINERALSANNUAL REPORT 2019 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.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 27 September 2019
51
ANNUAL REPORT 2019CARAVEL MINERALS ASX Additional Information – as at 20 September 2019
1.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of each class of listed securities as at 20 September 2019 are
listed below:
ORDINARY SHARES
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Holder Name
African Energy Resources Limited (and associated entities)
Alasdair Cooke (and associated entities)
Glenvar Nominees Pty Ltd
Eyeon Investments Pty Ltd
Orbit Drilling Pty Ltd
MSP Engineering
Newstead South Holdings Pty Ltd
BNP Paribas Nominees Pty Ltd
Aviemore Capital Pty Ltd
J P Morgan Nominees Australia Limited
Mr Anthony Poustie & Mrs Rosamund Mary Poustie
Beebee Holdings Pty Ltd
Retzos Investments Pty Ltd
Burls Holdings
Clarkson's Boathouse Pty Ltd
Calama Holdings Pty Ltd
Windell Holdings Pty Ltd
Octavius Share Holdings Pty Ltd
Robert & Elizabeth Cooke
Terra Metallica Nominees Pty Ltd
Securities
18,383,872
16,509,132
11,500,000
10,039,326
8,842,081
7,832,551
5,853,870
5,462,893
5,250,499
5,087,648
4,696,042
4,571,429
4,266,900
4,261,698
4,066,624
3,675,650
3,314,286
3,000,000
2,490,000
2,488,586
%
10.18%
9.14%
6.37%
5.56%
4.89%
4.34%
3.24%
3.02%
2.91%
2.82%
2.60%
2.53%
2.36%
2.36%
2.25%
2.03%
1.83%
1.66%
1.38%
1.38%
Top 20 Total
Total Remaining Holders Balance
Total Shares on Issue
131,593,087
49,076,708
180,669,795
72.84%
27.16%
100.00%
2. DISTRIBUTION OF EQUITY SECURITIES
Analysis of security by size holding as at 20 September 2019:
Range
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
Securities
171,994,988
7,927,906
586,431
141,929
18,541
180,669,795
995,875
% No. of holders
95.2%
4.4%
0.3%
0.1%
0.0%
100.0%
0.6%
95
209
75
45
62
486
206
%
19.5%
43.0%
15.4%
9.3%
12.8%
100.0%
42.4%
52
CARAVEL MINERALSANNUAL REPORT 2019 3.
SUBSTANTIAL SHAREHOLDERS
The names of the substantial shareholders listed in the company’s register as at 20 September 2019 are:
Name
African Energy Resources Limited (and associated entities)
Alasdair Cooke (and associated entities)
Glenvar Nominees Pty Ltd
Eyeon Investments Pty Ltd
Number of Shares Held
18,383,872
16,509,132
11,500,000
10,039,326
4. UNQUOTED SECURITIES
As at 20 September 2019, the following unquoted securities are on issue:
Unquoted Securities
$0.068 Options expiring 28/03/2020
$0.100 Options expiring 12/05/2020
$0.080 Options expiring 30/09/2021
Total unquoted securities
Number on Issue
1,400,000
400,000
16,900,000
18,700,000
Number of Holders
4
1
12
5. VOTING RIGHTS
The voting rights of the ordinary shares are as follows:
Subject to any rights or restrictions for the time being attached to any shares or class of shares of the
Company, each member of the Company is entitled to receive notice of, attend and vote at a general
meeting. Resolutions of members will be decided by a show of hands unless a poll is demanded. On a
show of hands each eligible voter present has one vote. However, where a person present at a general
meeting represents personally or by proxy, attorney or representation more than one member, on a show
of hands the person is entitled to one vote only despite the number of members the person represents.
On a poll each eligible member has one vote for each fully paid share held.
There are no voting rights attached to any of the options that the Company currently has on issue. Upon
exercise of these options, the shares issued will have the same voting rights as existing ordinary shares.
6. ON‐MARKET BUY BACK
There is currently no on‐market buy‐back program for any of Caravel Minerals Limited’s listed securities.
7.
TENEMENTS
The following tenements were held at 20 September 2019:
Prospect Name and Location
Tenements
Calingiri (WA)
E70/2343
E70/2788, E70/2789, E70/3674, E70/3680,
E70/3755, E70/4675, E70/4676, E70/4732,
E70/5228A, E70/5229A
Ownership
Interest
80%
100%
53
ANNUAL REPORT 2019CARAVEL MINERALS 8. MINERAL RESOURCES
At 29 April 2019 the Company has an Indicated and Inferred Mineral Resource at its Caravel Copper Project
of 372.1 million tonnes at 0.35% Cu for 1,301,600 tonnes copper using a 0.25% Cu Cut‐off (Indicated 224.7
million tonnes at 0.36% Cu for 802,900 tonnes copper and Inferred 147.3 million tonnes at 0.34% Cu for
498,700 tonnes copper). The resource was announced on 29 April 2019 and a subsequent Scoping Study
was completed and released on 29 May 2019.
The Company engaged independent consultants to prepare the Resource estimate. In the course of doing
so the consultants have:
Reviewed the Company’s assay and QA/QC data;
Generated digital models that represent the interpreted geology, mineralisation and oxidisation
profiles based on drilling and geological information supplied by the Company;
Completed statistical analysis and variography of economic elements;
Estimated grades of economic elements using ordinary kriging and completed model validity
checks;
Classified the Mineral Resource estimate in accordance with the 2012 Edition of the JORC Code;
and
Reported the estimates and compiled supporting documentation in accordance with the 2012
Edition of the JORC code guidelines.
Competent Person Statements
The information in this report that relates to the Calingiri Mineral Resource estimates is extracted from
an ASX Announcement, (see ASX Announcement – 29 April 2019 “Caravel Copper Resource and Project
Update”, www.caravelminerals.com.au and www.asx.com.au). The Company confirms that it is not aware
of any new information or data that materially affects the information included in the original market
announcement and that all material assumptions and technical parameters underpinning the Mineral
Resource estimates in the relevant market announcement continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person’s findings are
represented have not been materially modified from the original market announcement.
Production Targets and Financial Information
Information in relation to the Caravel Copper Project Scoping Study, including production targets and
financial information, included in this report is extracted from an ASX Announcement dated 29 May 2019,
(see ASX Announcement ‐ 29 May 2016, “Scoping Study Confirms New 23‐Year WA Copper Project With
Outstanding Economics”, www.caravelminerals.com.au and www.asx.com.au) The Company confirms that
all material assumptions underpinning the production target and financial information set out in the
announcement released on 29 May 2019 continue to apply and have not materially changed.
54
CARAVEL MINERALSANNUAL REPORT 2019 55
ANNUAL REPORT 2019CARAVEL MINERALS ASX:CVV
Suite 1, 245 Churchill Avenue, Subiaco WA 6008
Phone: +618 9426 6400 - Fax: +618 9426 6448