CVD Equipment
Annual Report 2019

Plain-text annual report

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. 50 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 

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