202 1 ANNUAL RE PO RT
CORPORATE
DIRECTORY
DIRECTORS &
COMPANY SECRETARY
Mr Wayne Trumble
Non-Executive Chairman
Mr Alasdair Cooke
Executive Director
Mr Richard Monti
Non-Executive Director
Mr Steve Abbott
Managing 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
Automic Group
Level 2, 267 St Georges Terrace
Perth 6000
Western Australia
Telephone: 1300 288 664
Internet: automicgroup.com.au
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
Fairweather Corporate Lawyers
595 Stirling Highway
Cottesloe WA 6011
AUDITOR
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco 6008
Western Australia
2
TABLE OF
CONTENTS
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
1
2
8
10
18
19
20
21
22
23
41
42
46
MANAGING
DIRECTOR’S
REPORT
I’m very pleased to report on what has been a redefining
12 months for Caravel Minerals (ASX: CVV), in a year of
extraordinary events for global markets.
During the year, Caravel made significant advances
towards becoming an Australian copper developer.
A stronger copper market combined with a clear plan for
progressing our feasibility studies has taken the project
from a scoping level assessment to being well advanced
in feasibility studies and planning for implementation.
The copper price increased about 60% over the 12-month
period and further price increases are expected as
supply and costs come under pressure from resource
depletion, social and political disruptions and fewer
new discoveries. These dynamics have seen companies
such as Caravel become a proxy for investor exposure to
upward movements in the copper price.
Caravel is one of the largest copper resources in Western
Australia and in the top 10 largest undeveloped copper
projects in Australia. During the past year we have
completed several drilling programs including 7,275m of
diamond drilling and 26,955m of reverse circulation (RC)
percussion drilling at the Project, aiming to extend and
define higher-grade zones. The recent work will form the
basis for a new resource to support the Pre-feasibility
Study (PFS) and is expected to significantly add to the
2019 Mineral Resource of 661.9Mt @ 0.28% Cu for 1.86Mt
contained copper.
Results from the drilling have shown significant new
zones of higher-grade mineralisation at the Bindi
deposit, highlighted potential to extend the Dasher
deposit resource and improved geological confidence
across the Project. An updated Mineral Resource
Estimate is expected to be complete early in the fourth
quarter of this year.
A range of other project development activities are also
being undertaken for the PFS. Ausenco was appointed as
lead engineering consultant in June 2021. Ausenco is an
excellent partner for the Caravel Copper Project as they
are an industry leader in global engineering services
with extensive experience in copper processing and
infrastructure projects.
The first-phase engineering Copper works is now
complete including trade-off studies for comminution,
flotation, water, tailings and layout options with
guidance to be reported in a Revised Scoping Study
during October 2021. The PFS is continuing and is
planned to be complete in early 2022.
A range of other activities progressed in the second
half of the year including studies on mine optimisation
and design, geotechnical design, metallurgy, tailings
design, environmental approvals, water supply, power
supply, logistics, concentrate marketing and community/
stakeholder relations.
Caravel has developed a strong shareholder base,
both new and existing, and the value of the company
has risen in line with the copper price and increasing
understanding of the Project's value. We raised over
$21 million in four placements through the year to fund
drilling, project development and exploration work.
Paradice Investment Management became a major
shareholder during the year, acquiring nearly 7% of the
company. I thank both existing and new shareholders for
their support.
We are grateful for the strong support from suppliers,
contractors, and many stakeholders near our project
and this support is highly valued by the Company, its
Board and Management. In particular we wish to thank
landowners who have worked with us since 2009 and
continue to be important stakeholders as we progress
our field investigations for the PFS.
I take this opportunity to thank our Management team
and staff for their efforts over the past year, particularly
given our busy PFS and resource drilling programs. I also
thank my fellow Board members for their support and
guidance through the year.
We have many important milestones to deliver in the
next 12 months, and I look forward to keeping you
updated during this journey.
Steve Abbott
Managing Director
1
ANNUAL REPORT 2021CARAVEL MINERALS
REPORT ON ACTIVITIES
HIGHLIGHTS
Corporate
Over $21 million raised in placements through the
year to fund drilling, project development and
exploration work.
Paradice Investment Management became a major
shareholder during the year, acquiring nearly 7% of
the company.
Strong support from existing shareholders
demonstrating confidence in company assets and
direction.
Retention and attraction of experienced management
and staff during a period of intense competition for
labour within the WA resources sector.
Successful navigation of business conditions and
opportunities presented by the COVID-19 pandemic
resulting from people and assets based in Western
Australia as well as positive business relationships
with suppliers and stakeholders.
Resource
Drilling programs were completed at the Dasher
deposit as well as the Ninan, Opie, and Dasher East
Prospects, drilling is ongoing at the Bindi deposit.
Extensive 26,955m reverse circulation (RC) percussion
drilling program at the Bindi deposit to test extensions
and continuity of copper mineralisation in the Bindi
East Limb (Figure 1).
7,275m Deep diamond drilling to test the depth extents
of the Bindi copper deposit.
The geological model for the Bindi mineralisation was
revised at the south end of the Bindi East Zone where
observations from the drill cores indicate development
of a synformal fold closure producing the wider than
expected intersections where holes have passed
through the interpreted fold hinge (Figure 2).
Revisions to the geology model based on the potential
for a continuation of the mineralisation though the
synform, forming a third zone east of the East Limb.
2
Based on deep drilling results at Bindi, the Company
defined an Exploration Target for the intersected
mineralisation of 75 to 85 million tonnes at a grade of
0.20% to 0.30% copper, for 150,000 to 255,000 tonnes
contained copper (Figure 3).
11,000 metre RC percussion infill drilling program
commenced during the year at the Bindi East Limb
and Hinge area to confirm higher-grade copper zones
within the Bindi Hinge and more recently identified
Bindi East Limb area (Figure 1).
Diamond drilling work was also undertaken to obtain
detailed geotechnical information and additional
metallurgical samples for the feasibility studies into
the mining development of the Caravel Copper Project.
Increased confidence in higher-grade areas for
resource/reserve classification for consideration in
early stages of a proposed mine schedule.
Significant and material volumes of data collected for
incorporation into new mineral estimate planned for
October 2021.
Figure 1: Bindi deposit drilling collar plan 2020/21
CARAVEL MINERALSANNUAL REPORT 2021
Figure 2: Bindi South East Synform Cross Section
Figure 3: Bindi Oblique – with deep exploration target
CARAVEL MINERALS
3
ANNUAL REPORT 2021 ANNUAL REPORT 2021
PFS Geotechnical assessment of Bindi deposit
completed by Dempers & Seymour.
Metallurgical test work – comminution testing
including work indices, SMC and abrasion testing
is well advanced. Work continues on the flotation
parameters and optimisation for the circuit.
Discussions have taken place with port authorities
regarding the export of concentrate through the
relevant facilities.
Progressed power application processes with Western
Power, capitalising on existing grid power connection
and a range of energy options including renewable
sources.
First water bores drilled as part of works that are
underway to define groundwater models.
Landowner discussions and consultation as a key
component of project layout planning and design
options that were also investigated concurrently
during the year.
Environmental baseline study continuation including
completion of fauna surveys.
Permitting and approvals planning and
commencement of requirements for Environmental
Protection Act 1986 Part IV referral.
Environmental baseline studies progressed and on
track for completion during the 2021 spring season.
Project
Formal commencement of the Caravel Copper
Project Pre-Feasibility Study building on the positive
economics defined by the 2019 Scoping Study and in
an environment of rising copper prices.
Appointment of Ausenco as lead engineering
consultant for the Caravel Copper Project PFS.
Ausenco joins Caravel as a valued technical partner
with extensive experience in the successful delivery of
cost-effective, high-performance copper mining and
processing projects.
Appointment of experienced PFS technical advisory
team including:
• Dempers & Seymour – Geotechnical evaluation
• Knight Piesold – Tailings and waste rock
assessments/design
• Aurifex – Design of metallurgical test work program
and expert advice
• ALS – Metallurgical test work including ore
characterisation, comminution, flotation and vendor
testing
• Western Power – Power supply and transmission
options
• Trepanier – Resource estimation
• Smith Drilling – Water exploration
• Rockwater - Hydrological modelling and expertise
for the bore field
• Preston Consulting – Environmental Impacts
Assessment (Part IV & V – EP Act 1986)
• CDM Smith – Mining Proposal & Closure
Ausenco’s completion of first-phase engineering
including trade-off studies for comminution, flotation,
water, tailings and layout options (to be reported in a
Revised Scoping Study). Phase 2 – engineering detail
and definition well underway.
4
CARAVEL MINERALS
Caravel completed compilation of open file data for the
Dalwallinu and Toolbrunup areas and reconnaissance
surface sampling. In addition the company completed
an airborne electromagnetic (AEM) survey over the
Toolbrunup magnetic feature which defined a number of
conductors however most were considered to be sourced
from near-surface lateritic cover.
Caravel’s Brookton Cu-Zn prospect shows strong surface
geochemistry from historic sampling completed by
previous exploration companies dating back to 1977.
Elevated Cu (>500ppm) in rock chips extend for 8km
along strike, an elongate moderate magnetic feature
extends a further 6km to the east along the same trend.
Gossanous subcrop in the area is hosted by quart-biotite-
garnet schists and granite gneiss suggesting a similar
metamorphosed alteration halo to that seen at the Caravel
Copper Project.
ANNUAL REPORT 2021
EXPLORATION
NEW PROSPECTS
During the year Caravel continued to secure new mineral
exploration licences over several areas of interest
for copper, gold and nickel mineralisation within the
prospective South West Terrane of the Yilgarn Block.
The mineral potential of the South West Yilgarn Block
has been highlighted by the Pt-Pd-Ni-Cu discovery at
the Julimar Prospect by Chalice Gold Mines Ltd (70km
southwest of Bindi) and the Angepena Au-Cu discovery
by Liontown Resources Ltd (48km northwest of Bindi).
The discoveries show the potential for significant
mineralisation to be concealed below the surface
weathering zone with only subtle surface geochemical
responses.
The Caravel copper deposits were discovered in 2009 by
the same process of surface sampling and identification of
low level anomalous geochemical responses.
OUTLOOK
The Company is establishing a clear path for the
development of the Caravel Copper Project.
Project feasibility studies are funded including delivery
of the PFS and for continuation towards a DFS.
Project development will be pursued in line with
the de-risking and option refinements resulting from
feasibility work.
Caravel is actively pursuing exploration opportunities
in the South West Yilgarn Terrane where it has
particular experience and capability with programs
expected to be reported during the year.
Caravel is maintaining and expanding its sustainability
activities to ensure long-term success of the Company,
Project and our Stakeholders.
CARAVEL MINERALS
5
ANNUAL REVIEW
OF MINERAL RESOURCES
As of 30 June 2021, the combined Indicated and Inferred Mineral Resources for the project totals 372.1Mt @ 0.35% Cu (at a
0.25% Cu cut-off grade) for 1.3Mt of contained copper (Table 1).
Deposit
Bindi
Dasher
Opie
Total
Classification
Measured
Indicated
Inferred
Sub-Total
Measured
Indicated
Inferred
Sub-Total
Measured
Indicated
Inferred
Sub-Total
Measured
Indicated
Inferred
Total
Mt
-
142.6
80.8
223.4
-
70.6
64.0
134.5
-
11.6
2.6
14.2
-
224.7
147.3
372.1
Cu (%)
Mo (ppm)
-
0.36
0.35
0.36
-
0.36
0.32
0.34
-
0.34
0.34
0.34
-
0.36
0.34
0.35
-
79
69
76
-
62
61
62
-
39
35
38
-
72
65
69
Cu (t)
-
513,200
282,900
796,100
-
250,900
207,000
457,900
-
38,800
8,700
47,500
-
802,900
498,700
1,301,600
Table 1: Mineral Resources at 30 June 2021 (0.25% Cu cut-off)
5.21.1
Results of the annual review of the reported Mineral Resources at the Company’s flagship Caravel Copper
Project for the year ending 30 June 2021 are disclosed in Table 1.
5.21.2
5.21.3
5.21.4
5.21.5
The Company’s financial year end is 30 June 2021 and mineral resources held at year end are disclosed in Table 1.
Caravel has no reported Ore Reserves
There has been no material change to the Mineral Resources in the period from 30 June 2020 to 30 June 2021.
Resource governance arrangements are disclosed on page xx of the Company’s annual report that was released to
ASX on 30 September 2020.
Table 2: ASX Listing Rule 5.21 disclosure
Competent Persons Statements The information in this report that relates to
Mineral Resources is based on and fairly represents information and supporting
documentation 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 approves the inclusion in
this report of the matters based on information in the form and context in which
they appear.
Previous Disclosure 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”,
refer to 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 Resources 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.
Forward Looking Statements This document may include forward looking
statements. Forward looking statements include, but are not necessarily limited to,
statements concerning Caravel Minerals planned exploration programmes, studies
and other statements that are not historic facts. When used in this document,
the words such as “could”, “indicates”, “plan”, “estimate”, “expect”, “intend”, “may”,
“potential”, “should” and similar expressions are forward looking statements. Such
statements involve risks and uncertainties, and no assurances can be provided
that actual results or work completed will be consistent with these forward looking
statements.
6
CARAVEL MINERALSANNUAL REPORT 2021 TENEMENT
SCHEDULE
Project
Tenement
Status
Date Granted
Date Expires
Interest
Caravel Copper Project
E70/2788
E70/3674
E70/3680
E70/5228
E70/5229
R70/0060
R70/0063
E70/5400
E70/5417
E70/5511
E70/5512
E70/5673
E70/5462
E70/5506
E70/5542
E70/5596
E70/5731
E70/2338
Dalwallinu
Toolbrunup
Brookton
Congellin
Moodiarup
Gillingarra
Mt Williams
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Pending
3/6/2007
11/15/2010
11/23/2009
11/6/2019
11/6/2019
1/17/2020
5/12/2021
6/3/2020
7/9/2020
1/21/2021
2/23/2021
5/11/2021
1/5/2021
1/22/2021
3/5/2021
4/9/2021
3/5/2022
11/14/2022
11/22/2021
11/5/2024
11/5/2024
1/16/2023
5/11/2024
6/2/2025
7/8/2025
1/20/2026
2/22/2026
5/10/2026
1/4/2026
1/21/2026
3/4/2026
4/8/2026
4/21/2021
4/20/2026
100%
100%
100%
100%
100%
80%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
7
ANNUAL REPORT 2021CARAVEL MINERALS FINANCIAL REPORT
30 JUNE 2021
8
CARAVEL MINERALS Directors’ Report
30 June 2021
Corporate Directory
The Directors of Caravel Minerals Limited (the “Company” or “Caravel”) present their report on the consolidated entity (the
“Group”) consisting of Caravel Minerals Limited and its subsidiaries for the year ended 30 June 2021.
Directors
Qualifications, Experience and Special Responsibilities of Directors
Wayne Trumble - Chairman
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 supply of
energy to the KCGM mining operations in Kalgoorlie.
For the twelve years to 2013, Mr Trumble was the Executive General Manager of Griffin Power Pty Ltd, reporting to the 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
Former directorships in the last three years
None
Special responsibilities
Chairman
Member of Remuneration Committee
Interests in shares and options
400,000 shares
287,908 options
Stephen Abbott - Managing Director
A highly regarded mining executive with more than 25 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.
Prior to Caravel, Mr Abbott worked as General Manager Iron Ore and Industrial Minerals for BC Iron and General Manager Business
Development for Gindalbie Minerals.
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.
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.
Other current directorships
Nil
Special responsibilities
Managing Director
Former directorships in the last three years
None
Interests in shares and options
5,657,144 shares
5,303,262 options
Alasdair Cooke - Executive Director
Alasdair Cooke has over 30-years of experience in the mining
industry with over 15 years managing public resource
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
of successful mining projects including greenfield mines in Australia, Africa and South America. Mr Cooke is the Chairman of African
Energy Resources and a Director of EVE Investments.
Alasdair is a substantial shareholder of Caravel Minerals.
Other current directorships
EVE Investments Limited
African Energy Resources Ltd
Special responsibilities
Executive Director
Former directorships in the last three years
Anova Metals Limited (retired 8 May 2020)
Interests in shares and options
25,176,358 shares
5,033,262 options
9
ANNUAL REPORT 2021CARAVEL MINERALS
ANNUAL REPORT 2021
Directors’ Report
30 June 2021
Director's Report
30 June 2021
Richard Monti – Non-Executive Director (appointed 18 August 2020)
Mr Monti has a successful thirty-four year career in the international mineral resource industry and brings to Caravel broad project
development and corporate experience. Mr Monti is currently on the board of ASX listed companies Alto Metals Limited, Zinc of
Ireland Limited and Pacifico Minerals Limited and is the principal of Terracognita supplying technical, commercial and corporate
advice to resource industry companies.
Other current directorships
Alto Metals Limited
Zinc of Ireland Limited
Pacifico Minerals Limited
Special responsibilities
Chairman of Remuneration Committee
Former directorships in the last three years
Black Dragon Gold Limited (resigned 11 August 2021)
Interests in shares and options
1,000,000 shares
1,393,954 options
Alexander Sundich - Non-Executive Director (resigned 8 December 2020)
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.
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 2021 (30 June 2020: nil)
Corporate and Financial Position
On 18 August 2020, Mr Richard Monti was appointed as a non-executive director. In addition to non-executive director fees of
$25,000 per annum, Mr Monti is paid a monthly fee of $1,750 for his role as chairman of the exploration committee.
On 8 December 2020, Mr Alexander Sundich resigned as a non-executive director of the Company.
During the year a total of 20,209,295 options over ordinary shares were issued to KMP, employees and consultants. Of these,
6,678,386 options were issued to Key Management Personnel of which 390,000 options were granted to Alasdair Cooke in lieu of
unpaid director fees for July 2021 and the remaining 6,288,386 options were granted under the terms and conditions of the Caravel
Employee Share Option Plan (the “Option Plan”). Total value of options granted during the year is $3,690,143 of which $179,600 is
the value of options issued to a consultant in payment of share issuance costs, $22,191 is the value of options issued in lieu of
outstanding director fees $3,488,352 is the value of options granted under the Option Plan. Details on terms and valuation of these
options are disclosed in note 7.5.
The group’s net loss from operations for the year was $11,201,272 (2020: $1,118,461).
At 30 June 2021, the group had net current assets of $11,940,426 (2020: $169,317). 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.
Movements in Company’s share capital
During the year the Company completed the following share placements and a share purchase plan:
-
On 21 July 2020 the Company completed a share placement (Placement) to raise $1,050,000 by issuing 26,250,000 shares
at 4 cents per share.
10
10
CARAVEL MINERALS
CARAVEL MINERALSANNUAL REPORT 2021
Director's Report
Directors’ Report
30 June 2021
30 June 2021
-
-
-
-
-
-
On 20 August 2020 the Company completed a share purchase plan to raise $1,000,000 by issuing 25,000,000 shares at 4
cents per share.
On 11 September 2020 the shareholders approved the issue of further 2,500,000 shares under the Placement to a director
of the Company, Mr Alasdair Cook to raise additional $100,000.
On 27 November 2020 the Company completed a share placement to raise $2,750,000 by issuing 34,375,000 shares at 8
cents per share.
On 4 March 2021, the Caravel Minerals advised that it had completed a share placement to raise $9,000,000 by the issue
of 56,250,000 shares at 16 cents per share.
On 4 March 2021, 1,250,000 shares were issued to nominees of Alasdair Cooke in connection with his participation in a 8
cent share placement of 27 November 2020 that was approved by shareholders on 5 February 2021, to raise $100,000.
On 21 June 2021 the Company completed a share placement raising $7,500,000 by issuing 27,777,778 shares at 27 cents
per share.
Shares and options over ordinary shares issued in settlement of supplier invoices (refer to note 4.2 for details):
-
-
-
On 16 October 2020 the Company issued 2,082,222 shares at 4.5 cents per share to a drilling contractor in settlement of
$93,000 of drilling services. This value was reported in share capital at balance date.
On 8 January 2021, 1,562,000 shares at 8 cents per share were issued to a drilling contractor in settlement of $124,960
of drilling services provided in 2020. This value was reported in share capital at balance date.
On 4 March 2021 the Company awarded Canaccord Genuity 2,000,000 options exercisable at 30 cents and expiring 3
March 2024 as part consideration for their assistance with a $9,000,000 capital raising.
Exercise and conversion of options into ordinary shares of the Company:
-
-
-
On 7 January 2021, 1,000,000 options were exercised at a strike price of 8 cents to raise $80,000.
On 4 March 2021, 200,000 options were exercised at a strike price of 8 cents to raise $16,000.
On 17 June 2021, 2,125,000 and 230,326 options were exercised at a strike price of 8 cents and 30 cents per option to
raise $239,098.
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
None.
Matters subsequent to the end of the financial year
On 9 July 2021, 625,000 options were exercised at a strike price of 8 cents to raise $50,000.
On 20 September 2021, 11,200,000 options were exercised at a strike price of 8 cents to raise $896,000.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the entity up to 30 June
2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly
developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social
distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the entity's
operations, the results of those operations, or the entity's state of affairs in future financial years.
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.
11
ANNUAL REPORT 2021CARAVEL MINERALS
Directors’ Report
Director's Report
30 June 2021
30 June 2021
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.
The directors are uncertain of the duration of the COVID-19 pandemic and of the potential consequential impact that may flow
through to the Group’s future operating costs and exploration activities. The directors believe there are reasonable prospects the
Group can continue operations through the COVID-19 pandemic and are committed to the long term development and growth of
the Company on behalf of its shareholders, employees and the communities in which it operates.
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 2021, and the
number of meetings attended by each director.
Board Meetings
Number Eligible
to attend
5
Board
Meetings
Number
attended
5
Remuneration
Committee Meetings
Number Eligible
to attend
1
Remuneration
Committee Meetings
Number
attended
1
5
1
5
5
5
1
5
5
1
-
-
-
1
-
-
-
Wayne Trumble
Richard Monti
Alexander Sundich
Stephen Abbott
Alasdair Cooke
Insurance of Officers and Auditors
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 is $17,161 (2020: $10,500)
exclusive of GST.
12
CARAVEL MINERALSANNUAL REPORT 2021
Directors’ Report
Director's Report
30 June 2021
30 June 2021
Share Options on Issue at the Date of this Report
Unissued shares
At the date of this report, the unissued ordinary shares of Caravel Minerals Limited under option are as follows:
Number of
unlisted options
3,000,000
3,215,100
1,250,000
250,000
2,000,000
13,042,222
1,727,447
24,484,769
Exercise price
($)
0.08
0.08
0.08
0.10
0.30
0.30
0.75
Expiry Date
30/09/2021
30/06/2022
30/09/2022
30/09/2022
3/03/2024
30/06/2023
31/05/2023
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 exercised 3,555,326 options to acquire ordinary shares at an average weighted
average price of 9.43 cents per option.
Non-Audit Services
There were no non-audit services provided during the year by the auditor, BDO Audit (WA) Pty Ltd.
Auditor’s Independence Declaration
The auditor’s independence declaration is on page 18 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
Richard Monti
Alexander Sundich
Stephen Abbott
Alasdair Cooke
Non-Executive Chairman
Non-Executive Director (appointed 18 August 2020)
Non-Executive Director (resigned 8 December 2020)
Managing Director
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.
13
ANNUAL REPORT 2021CARAVEL MINERALS Directors’ Report
Director's Report
30 June 2021
30 June 2021
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 non-executive 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 2021 and 30 June 2020 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:
•
•
•
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.
14
CARAVEL MINERALSANNUAL REPORT 2021
Directors’ Report
Director's Report
30 June 2021
30 June 2021
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 2021 and 30 June 2020 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 $50,000 upon his appointment on 29 May 2019 payable
upon securing funding for a definitive feasibility study. The bonus was not payable at balance date.
Structure
Variable remuneration may be delivered in the form of options, shares or cash bonus. No cash bonuses were granted or paid during
the year ended 30 June 2021.
Executives receive a superannuation guarantee contribution required by the government, which is currently 9.5% (9.5% for the year
ended 30 June 2020) and do not receive any other retirement benefit. Some individuals, however, may choose to sacrifice part of
their salary to increase payments towards superannuation.
Options Granted
Some Directors were awarded options during the year. All options were granted over unissued fully paid ordinary shares in the
company. The number of options granted was determined having regard to the factors described above. Options are vested and
exercisable when the vesting conditions are met; options with no vesting conditions are vested and exercisable immediately upon
issue. The options are issued to directors at no cost and are exercisable upon vesting at the exercise price.
There has not been any alteration to the terms or conditions since the grant date.
The following table sets out terms of the options granted to directors during the year ended 30 June 2021:
Options granted during the year
Grant Date
Number of options
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Share price at grant date ($)
Expiry Date
Fair value per option ($)
Total value at grant date ($)
Vesting
Awarded to:
Alasdair Cooke
Richard Monti
Wayne Trumble
Steve Abbott
11/09/20201
390,000
-
104
0.24
1.80
0.080
0.100
30/06/2022
0.057
22,191
26/11/2020
1,250,000
-
104
0.24
1.84
0.080
0.095
30/09/2022
0.053
66,250
18/05/2021
2,735,124
-
117
0.72
2.12
0.300
0.400
30/06/2023
0.264
723,007
Upon issue
Upon issue
Upon issue
18/05/2021
2,303,262
-
117
0.72
2.12
0.300
0.400
30/06/2023
0.264
608,848
28/02/2022
390,000
-
-
-
-
1,250,000
-
-
1,151,631
143,954
287,908
1,151,631
1,151,631
-
-
1,151,631
1 On 11 September 2020, the Company's shareholders approved the issue of 2,730,000 options to Alasdair Cooke for Director
services for the period 1 January to 31 July 2020 under the Company's Employee Incentive Scheme. All options were valued at the
date of approval. Of the total options issued, 390,000 options relate to provision of July 2020 services, while 2,340,000 options were
issued in respect to services for the period 1 January to 30 June 2020. The value of the 390,000 options is included as part of this
year’s remuneration; the value of 2,340,000 options is included in the prior year remuneration.
A total of $904,957 was expensed in respect to the options granted to directors during the year.
During the year ended 30 June 2021, 500,000 options were exercised by directors at an exercise price of 8 cents. The options were
fully expensed in prior years.
15
ANNUAL REPORT 2021CARAVEL MINERALS
Directors’ Report
Director's Report
30 June 2021
30 June 2021
Employment Contracts
Executive Directors
The employment conditions of Managing Director, Mr Stephen Abbott, are formalised in a contract of employment. The total
current remuneration package as at 30 June 2021 was $7,800 per month inclusive of statutory superannuation with an additional
$1,500 per day for additional time worked.
The employment conditions of Executive Director, Mr Alasdair Cooke, are formalised in a contract of employment. The total
remuneration package from 1 July 2020 to the reporting date was $150,000 per annum with an additional $1,500 per day for
additional time worked. Notice of one month is required for either party to terminate the contract.
Key Management Personnel Remuneration
Short term
employee
benefits
Post-
employment
benefits
Share based
payments
%
Performance-
based
Total
Cash salary
Superannuation
Options
Key Management Personnel remuneration - 2021
Non-Executive Directors
Wayne Trumble
Richard Monti1,2
Alexander Sundich1
Executive Directors
Stephen Abbott
Alasdair Cooke
Total
Total
Key Management Personnel remuneration - 2020
Non-Executive Directors
Wayne Trumble
Alexander Sundich
Executive Directors
Stephen Abbott
Alasdair Cooke
29,971
39,575
14,214
174,764
211,100
469,624
7,087
28,395
170,736
75,000
281,218
2,174
2,097
677
76,106
104,303
-
3,811
-
8,759
335,681
373,369
889,459
23,332
2,024
16,220
-
41,576
-
-
39,601
133,146
172,747
70%
71%
-
65%
64%
65%
-
-
17%
64%
35%
108,251
145,975
14,891
514,256
584,469
1,367,842
30,419
30,419
226,557
208,146
495,541
1 Mr Richard Monti was appointed on 18 August 2020; Mr Alexander Sundich resigned on 8 December 2020.
2 Director fees for Mr Richard Monti are paid to Greatcity Corporation Pty Ltd of which Mr Monti is a director.
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:
Balance at
30/06/2020
Purchases
Exercise of
options
Other
changes2
Balance at
30/06/2021
Balance at
Reporting Date
Non-Executive Directors
Wayne Trumble
Richard Monti1
Alexander Sundich1
Executive Directors
Stephen Abbott
Alasdair Cooke
Total
-
-
- 1,000,000
955,099
1,044,901
457,144
18,867,581
20,369,626
500,000
4,308,777
6,763,876
500,000
-
-
-
-
500,000
-
-
500,000
1,000,000
(2,000,000)
-
400,000
1,000,000
-
-
-
(2,000,000)
957,144
23,176,358
25,633,502
5,657,144
25,176,358
32,233,502
1 Mr Richard Monti was appointed on 18 August 2020; Mr Alexander Sundich resigned on 8 December 2020.
2 Other changes relate to shares held on the date of becoming or ceasing to be KMP.
16
CARAVEL MINERALSANNUAL REPORT 2021
Directors’ Report
Director's Report
30 June 2021
30 June 2021
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
30/06/2020
Issued as
remuneration
during the year
Expired
During
the Year
Exercised
During the
Year
Other
Changes3
Balance at
30/06/2021
Vested and
exercisable
Non-Executive
Directors
Wayne Trumble
Richard Monti1,2
Alexander Sundich1
Executive Directors
Stephen Abbott
Alasdair Cooke
Total
500,000
-
500,000
8,000,000
4,340,000
13,340,000
287,908
1,393,954
-
2,303,262
2,693,262
6,678,386
-
-
-
-
-
-
(500,000)
-
-
-
-
(500,000)
287,908
1,393,954
-
287,908
1,393,954
-
-
-
(500,000)
-
-
(500,000)
10,303,262
7,033,262
19,018,386
6,151,631
5,881,631
16,715,124
1 Mr Richard Monti was appointed on 18 August 2020; Mr Alexander Sundich resigned on 8 December 2020.
2 143,954 options issued as remuneration to Mr Richard Monti, were issued to Greatcity Corporations Pty Ltd of which Mr Monti is
a director.
3 Other changes relate to options held on the date of becoming or ceasing to be KMP.
Use of Remuneration Consultants
The company did not use the services of any remuneration consultants during the year.
Voting and comments made at the Company’s 2020 Annual General Meeting
At the Annual General Meeting held on 26 November 2020 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.
Transactions with key management personnel
During the year a total of 6,678,386 options were issued to KMP. Of these, 390,000 options were granted to Alasdair Cooke in lieu
of unpaid director fees for July 2021 and the remaining 6,288,386 options were granted under the terms and conditions of the
Caravel Employee Share Option Plan (the “Option Plan”). Total value of options granted to KMP during the year is $1,420,296 of
which $22,191 is the value of options issued in payment of directors’ fees and $1,398,105 is the value of options granted under the
Option Plan. Details on terms and valuation of these options are disclosed in note 7.5.
The following transactions with related parties took place during the year ended 30 June 2021:
- $221,756 (2020: $79,928) was paid to Mitchell River Group, of which Mr Alasdair Cooke is a part owner, for provision of serviced
offices and geological consultancy. No invoices were unpaid at 30 June 2021 (30 June 2020: $37,530).
- The Company paid $207,240 of share placement management fees, inclusive of GST, to Bridge Street Capital (BSC) of which Mr
Alex Sundich is the owner and a director. No invoices were unpaid at 30 June 2021 (30 June 2020: nil).
The value of KMP options yet to vest at 30 June 2021 was $515,339.
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
30 September 2021
17
ANNUAL REPORT 2021CARAVEL 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 2021, 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
period.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 30 September 2021
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.
18
CARAVEL MINERALSANNUAL REPORT 2021
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
Other Income
Administration services
Employee expenses
Exploration expenses
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
2021
$
108,626
(406,122)
(2,961,582)
(7,942,194)
(11,201,272)
-
(11,201,272)
(11,201,272)
-
(11,201,272)
2020
$
72,757
(160,625)
(682,890)
(347,703)
(1,118,461)
-
(1,118,461)
(1,118,461)
-
(1,118,461)
3.5
3.5
(3.89)
(3.89)
(0.58)
(0.58)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
19
ANNUAL REPORT 2021CARAVEL MINERALS
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
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
2021
$
2020
$
4.1
4.3
2.1
2.2
4.4
5.1
13,249,063
363,849
9,266
13,622,178
3,107,811
206,859
3,314,670
16,936,848
1,681,752
1,681,752
1,681,752
231,850
17,564
7,839
257,253
3,107,811
129,526
3,237,337
3,494,590
87,936
87,936
87,936
15,255,096
3,406,654
66,639,277
(54,444,775)
3,060,594
15,255,096
46,146,487
(45,970,841)
3,231,008
3,406,654
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
20
CARAVEL MINERALSANNUAL REPORT 2021
Consolidated Statement of Changes in Equity
Consolidated Statement for Changes in Equity
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
At 30 June 2020
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
Total
Reclassification within equity
At 30 June 2021
At 30 June 2019
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 2020
Contributed
equity
Accumulated
losses
Share-Based
Payments
Reserve
Total
equity
$
46,146,487
-
-
20,492,790
-
20,492,790
-
$
(45,970,841)
(11,201,272)
(11,201,272)
$
3,231,008
-
-
$
3,406,654
(11,201,272)
(11,201,272)
-
-
-
2,727,338
-
2,556,924
2,556,924
(2,727,338)
20,492,790
2,556,924
23,049,714
-
66,639,277
(54,444,775)
3,060,594
15,255,096
45,503,512
-
-
(44,852,380)
(1,118,461)
(1,118,461)
642,975
-
642,975
46,146,487
-
-
-
(45,970,841)
3,052,066
-
-
-
178,942
178,942
3,231,008
3,703,198
(1,118,461)
(1,118,461)
642,975
178,942
821,917
3,406,654
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
21
ANNUAL REPORT 2021CARAVEL MINERALS
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
Cash flows from investing activities
(Payments)/proceeds for property, plant and equipment
Net cash (outflow) from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue costs
Net cash inflow from financing activities
Cash and cash equivalents at the beginning of the year
Net increase in cash and cash equivalents
Cash and cash equivalents at the end of the year
Note
2021
$
2020
$
179
108,447
(501,104)
(6,929,613)
(7,322,091)
(114,427)
(114,427)
21,835,098
(1,381,367)
20,453,731
231,850
13,017,213
13,249,063
470
72,287
(874,145)
(323,188)
(1,124,576)
-
-
660,116
(17,141)
642,975
713,451
(481,601)
231,850
4.2
5.2
5.2
4.1
4.1
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
22
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
1. Basis of preparation
The annual report of Caravel Minerals Limited for the year ended 30 June 2021 was authorised for issue in accordance with a
resolution of the directors on 30 September 2021.
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 2021 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.
23
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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.
Where a potential impairment is indicated, an assessment is performed for each cash generating unit that is no larger
than the area of interest. The Group performs impairment testing in accordance with accounting policy note 2.3.
Judgement is applied when considering whether fact and circumstances as per above indicate that the exploration and
evaluation asset should be tested for impairment and no impairment indicators were noted during the year.
Share based payments
The consolidated entity measures the cost of equity-settled transactions with employees (including directors and
consultants) by reference to the fair value of the equity instruments at the date at which they are granted. The fair value
is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based
payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period
but may impact profit or loss and equity.
The Company has issued options that vest upon the completion of a pre-feasibility study on the Caravel Copper Project.
Directors have determined that this hurdle is likely to be met and 28 February 2022 is the most likely date of
achievement.
24
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the company based on known information. This consideration extends to the nature of the products and
services offered, customers, supply chain, staffing and geographic regions in which the company operates. Other than
as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial
statements or any significant uncertainties with respect to events or conditions which may impact the company
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
2. Capital Expenditure
2.1. Exploration & Evaluation Expenditure
Caravel Mineral’s Copper Project is located 120kms from Perth in Western Australia’s Wheatbelt region. The potential
mining area is located on cleared agricultural freehold land and is well connected to existing infrastructure
including interconnected power, roads and highways, regional service towns and a range of export ports. Caravel’s
copper deposits form part of a regional copper-molybdenum-gold mineralised belt discovered in a previously
unexplored part of the Yilgarn Craton.
Exploration and evaluation costs are expensed as incurred as an operating cost of the Group. Costs related to the
acquisition of properties that contain mineral resources are capitalised and allocated separately to specific areas of
interest. These costs are capitalised until the viability of the area of interest is determined.
The Group has exploration costs carried forward in respect of areas of interest:
Areas of interest:
Caravel Copper Project
2021
$
3,107,811
2020
$
3,107,811
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful
development and commercial exploitation, or alternatively the sale, of the respective areas of interest.
2.2. Property Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and
other comprehensive income during the financial period in which they are incurred.
Depreciation is calculated on either the straight-line basis or diminishing value basis over their useful lives to the Group
commencing from the time the asset is held ready for use. The depreciation rates used are as follows:
Plant and equipment
Exploration equipment
Vehicles
Leasehold improvements
Computer equipment and software
Buildings
30%
25%
30%
25%
40%
2.5%
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
25
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
2021
$
2020
$
100,165
(22,481)
77,684
21,038
(6,152)
14,886
68,715
(58,345)
10,370
143,556
(39,637)
103,919
333,474
(126,615)
206,859
100,165
(14,669)
85,496
4,618
(2,905)
1,713
65,369
(49,045)
16,324
48,895
(22,902)
25,993
219,047
(89,521)
129,526
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 2021.
26
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
3. Financial Performance
3.1. Other Income
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match
them with the costs that they are intended to compensate.
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
Government Grants and rebates
Interest revenue
Other income
3.2. Expenses
Administration services
Audit, tax and accounting
Compliance & insurance
Legal fees
Marketing
Occupancy
Depreciation
Travel
Employee expenses
Directors Fees
Salaries and wages
Superannuation
Payroll Tax & Fringe Benefits Tax
Share based payments expense – Directors and employees
2021
$
2020
$
82,280
179
26,167
108,626
61,952
470
10,335
72,757
2021
$
2020
$
62,833
100,561
30,286
50,100
152,218
3,560
6,564
406,122
282,307
269,124
19,057
13,770
2,377,324
2,961,582
26,183
36,716
(14,871)
28,722
80,300
1,320
2,255
160,625
322,794
149,893
31,267
(6)
178,942
682,890
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.
27
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
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.
3.4.1. The major components of income tax are:
Current income tax
Deferred income tax
2021
$
2020
$
-
-
-
-
3.4.2. A reconciliation between tax expense and the product of accounting loss
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 26% (2020: 27.5%)
Non-deductible expenses
Share based payments
Non-assessable amounts
Impact of reduction in future corporate income tax rate
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
2021
$
(11,201,272)
-
(11,201,272)
(2,912,331)
744
618,104
(9,745)
-
2,303,228
-
-
-
-
3.4.3. Deferred tax liabilities @ 25% (2020: 25%) have not been recognised in respect of
Deferred tax liabilities @ 25% (2020: 25%) have not been recognised in
respect of
Exploration & Evaluation Expenditure
Prepayments
2021
$
776,953
2,066
779,019
2020
$
(1,118,461)
-
(1,118,461)
(307,577)
208
17,264
(7,274)
1,143,090
(845,711)
-
-
-
-
2020
$
776,953
1,710
778,663
28
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
3.4.4. Deferred tax assets have not been recognised in respect of
Provisions and accruals
Business related costs
Carry forward revenue losses
Capital losses
3.4.5. Change in corporate tax rate
2021
$
55,945
334,704
14,442,319
220,458
15,053,426
2020
$
3,831
38,234
12,186,091
220,458
12,448,614
There has been a legislated change in the corporate tax rate that will apply to future income years. The impact of this
reduction in the corporate tax rate has been reflected in the unrecognised deferred tax positions and the prima face
income tax reconciliation above.
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.
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
2021
$
2020
$
(11,201,272)
(1,118,461)
197,172,692
91,095,352
288,268,044
184,365,039
8,592,286
192,957,325
Basic loss per share (cents per share)
(3.89)
(0.58)
As at reporting date, 36,309,769 (2020: 16,900,000) unlisted options (which represent potential ordinary shares) were
not dilutive as they would decrease the loss per share. Details of changes in share capital are disclosed in note 5.2.1.
Subsequent to the reporting date, a total of 11,825,000 options were converted into ordinary shares at a strike price of 8
cents, raising $946,000.
There have been no other 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.
29
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
2021
$
13,229,063
20,000
13,249,063
2020
$
211,850
20,000
231,850
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
Net cash used in operating activities
2021
$
2020
$
(11,201,272)
(1,118,461)
2,377,324
-
37,093
-
(347,712)
1,812,476
(7,322,091)
178,942
-
22,040
-
40,908
(248,005)
(1,124,576)
Non-cash financing activities
During the year, the Company issued shares to suppliers in settlement of outstanding invoices as follows:
-
On 16 October 2020 the Company issued 2,082,222 shares at 4.5 cents per share to Orbit Drilling to settle $93,700
of invoices for services received from the supplier.
On 8 January 2021 the Company issued 1,562,000 shares at 8 cents per share to Orbit Drilling to settle $124,960 of
invoices for services received from the supplier.
On 4 March 2021 the Company issued 2,000,000 options over ordinary shares to Canaccord Genuity (Australia)
Limited in lieu of share placement brokerage fees. The options were issued at no cost at an exercise price of 30 cents,
fully vested and exercisable upon issue and expiring on 3 March 2024.
-
-
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
2021
$
5,821
358,028
363,849
2020
$
10,867
6,697
17,564
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 5.5(1)).
30
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
2021
$
1,425,351
223,778
32,623
1,681,752
2020
$
72,611
15,325
-
87,936
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
2021
$
70,315,399
(3,676,122)
66,639,277
2020
$
48,261,641
(2,115,154)
46,146,487
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.
5.2.1. Ordinary Shares
Balance 30 June 2019
Cancellation of Treasury Shares
Contractor share based payments
Entitlement Issue
Share Placement
Less Transaction costs
Date
02 Jul 2019
01 Oct 2019
01 Oct 2019
15 Oct 2019
30 Jun 2020
Number of
shares
184,365,039
(3,695,244)
750,000
13,252,897
2,500,000
-
cents
-
4.0
4.0
4.0
-
Issue price
$
45,503,512
-
30,000
530,116
100,000
(17,141)
31
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
Balance 30 June 2020
Share Placement
Share Placement
Share Placement
Share Placement
Share Placement
Option Conversion
Share Placement
Share Placement
Option Conversion
Share Placement
Option Conversion
Option Conversion
Share Placement
Less Transaction costs
Balance 30 June 2021
5.3. Unlisted options
Outstanding at the beginning of the year
Issued during the year
Expired or lapsed during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
5.4. Capital risk management
Issue price
$
Date
Number of
shares
21 Jul 2020
20 Aug 2020
11 Sep 2020
16 Oct 2020
27 Nov 2020
07 Jan 2021
08 Jan 2021
04 Mar 2021
04 Mar 2021
04 Mar 2021
17 Jun 2021
17 Jun 2021
21 Jun 2021
197,172,692
26,250,000
25,000,000
2,500,000
2,082,222
34,375,000
1,000,000
1,562,000
1,250,000
200,000
56,250,000
2,125,000
230,326
27,777,778
377,775,018
cents
4.0
4.0
4.0
4.5
8.0
8.0
8.0
8.0
8.0
16.0
8.0
30.0
27.0
46,146,487
1,050,000
1,000,000
100,000
93,700
2,750,000
80,000
124,960
100,000
16,000
9,000,000
170,000
69,098
7,500,000
(1,560,968)
66,639,277
2021
Number
2020
Number
19,655,800
20,209,295
-
(3,555,326)
36,309,769
33,142,784
18,700,000
2,755,800
-
(1,800,000)
19,655,800
16,655,800
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.
During the financial year ended 30 June 2021, the Company issued 180,602,326 ordinary shares (2020: 16,502,857
ordinary shares).
The Company is not subject to any externally imposed capital requirements.
5.5. 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.
32
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
5.5.1. 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.
5.5.2. 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 2021 are expected to be settled within 6 months of year-end.
5.5.3. 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
been affected as shown. The analysis has been performed on the same basis for 2021 and 2020 and represents
management’s judgement of a reasonably possible movement.
30 June 2021
Cash and cash equivalents
30 June 2020
Cash and cash equivalents
Carrying
Amount
$
Interest Rate Risk -1%
Equity
Net Loss
$
$
Interest Rate Risk +1%
Equity
Net Gain
$
$
13,249,063
(132,491)
(132,491)
132,491
132,491
231,850
(2,319)
(2,319)
2,319
2,319
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.
33
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
Country of
incorporation
Equity holding
Date of
incorporation
Quadrio Resources Pty Ltd
Australia
100%
11 June 1985
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 2019 to 30 June 2020.
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
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Caravel Minerals Limited has not issued any guarantees on behalf of subsidiaries.
2021
$
13,007,838
2,608,502
15,616,340
361,244
361,244
66,639,277
(54,444,776)
3,060,595
15,255,096
(11,201,273)
-
(11,201,273)
2020
$
212,544
3,266,858
3,479,402
72,748
72,748
46,146,487
(45,970,841)
3,231,008
3,406,654
(1,118,461)
-
(1,118,461)
34
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
2021
$
469,624
8,759
889,459
1,367,842
2020
$
281,218
41,576
172,747
495,541
7.2. Transactions with Other Related Parties
Mr Richard Monti was appointed as a non-executive director on 18 August 2020.
In addition to non-executive director fees of $25,000 per annum, Mr Monti is paid a monthly fee of $1,750 for his role
as chairman of the exploration committee.
During the year a total of 6,678,386 options were issued to KMP. Of these, 390,000 options were granted to Alasdair
Cooke in lieu of unpaid director fees for July 2021 and the remaining 6,288,386 options were granted under the terms
and conditions of the Caravel Employee Share Option Plan (the “Option Plan”). Total value of options granted to KMP
during the year is $1,420,296 of which $22,191 is the value of options issued in payment of directors’ fees and $1,398,105
is the value of options granted under the Option Plan. Details on terms and valuation of these options are disclosed in
note 7.5.
The value of KMP options yet to vest at 30 June 2021 was $515,339.
Other transactions with related parties during the year ended 30 June 2021 were as follows:
- $221,756 (2020: $79,928) was paid to Mitchell River Group, of which Mr Alasdair Cooke is a part owner, for provision
of serviced offices and geological consultancy. No invoices were unpaid at 30 June 2021 (30 June 2020: $37,530).
- The Company paid $207,240 of share placement management fees, inclusive of GST, to Bridge Street Capital (BSC) of
which Mr Alex Sundich is the owner and a director. No invoices were unpaid at 30 June 2021 (30 June 2020: nil).
No loans to key management personnel were provided during the period or up to the date of signing this report.
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
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.
35
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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).
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 Incentive Plan
Shareholders approved the establishment of the Caravel Employee Incentive Plan at the 2020 AGM.
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
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year
2021
Number
19,655,800
20,209,295
-
(3,555,326)
36,309,769
33,142,784
2021
WAEP
0.08
0.27
-
0.09
0.20
0.20
2020
Number
18,700,000
2,755,800
(1,800,000)
-
19,655,800
16,655,800
2020
WAEP
0.08
0.08
0.08
-
0.08
0.08
Weighted average remaining contractual life of options at 30 June 2021: 1.19 years (2020: 1.27 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 2021 and 30 June
2020:
Options issued during the year ended 30 June 2021
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 ($)
Expiry date
Fair value per option ($)
Total value at grant date ($)
Vesting
Awarded to
Stephen Abbott
Alasdair Cooke
Wayne Trumble
Richard Monti
Alex Sundich
11/09/2020
390,000
-
104
0.24
1.80
0.080
0.100
30/06/2022
0.057
22,191
On issue
24/07/2020
69,300
-
104
0.24
1.93
0.080
0.035
30/06/2022
0.015
1,033
On issue
24/07/2020
1,250,000
-
104
0.24
1.93
0.080
0.041
30/06/2022
0.015
19,126
On issue
and service
period2
26/11/2020
1,250,000
-
104
0.24
1.84
0.080
0.095
30/09/2022
0.053
66,250
On issue
16/11/2020
250,000
-
104
0.24
1.87
0.100
0.094
30/09/2022
0.048
11,950
Service
period2
-
390,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,250,000
-
-
-
-
-
-
Options issued during the year ended 30 June 2021 (table continued)
36
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
Date of issue
Number of options
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Share price at grant date ($)
Expiry date
Fair value per option ($)
Total value at grant date ($)
Vesting
Awarded to
Stephen Abbott
Alasdair Cooke
Wayne Trumble
Richard Monti
Alex Sundich
4/03/2021
2,000,000
-
117
0.72
3.00
0.300
0.155
03/03/2024
0.090
179,600
23/03/2021
6,506,716
-
117
0.72
2.27
0.300
0.235
30/06/2023
0.135
879,708
On issue
On issue
18/05/2021
5,038,386
-
117
0.72
2.12
0.300
0.400
30/06/2023
0.264
1,331,855
On issue
and PFS
completion1
1/06/2021
1,727,446
-
117
0.72
2.08
0.300
0.550
30/06/2023
0.393
678,680
PFS
Completion
and service
period2
4/06/2021
1,727,447
-
117
0.72
1.99
0.750
0.550
31/05/2023
0.289
499,750
On issue
-
-
-
-
-
-
-
-
-
-
2,303,262
2,303,262
287,908
143,954
-
-
-
-
-
-
-
-
-
-
-
1 The Company has issued options that vest upon the completion of a pre-feasibility study on the Caravel Copper Project.
Directors have determined that this hurdle is likely to be met and 28 February 2022 is the most likely date of
achievement. The Options have an exercise price of 30 cents and expire on 30 June 2023.
2 Service period of 12 months.
Options issued during the year ended 30 June 2020
Date of issue
Number of options
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of the option (years)
Option exercise price ($)
Share price at grant date ($)
Vested
Fair value per option ($)
Total value at grant date ($)
27/09/2018 29/11/2018
3,000,000
-
100
1.50
2.82
0.080
0.054
On issue
0.027
86,700
7,900,000
-
100
1.50
2.96
0.080
0.400
On issue
0.028
216,460
21/11/2019
3,000,000
-
104
0.76
1.86
0.080
0.032
28/05/2020
0.010
29,675
21/11/2019 29/11/2019
415,800
-
104
0.27
2.58
0.080
0.035
On issue
0.015
6,195
3,000,000
-
104
0.76
1.86
0.080
0.032
30/06/2021
0.010
29,675
11/09/2020*
2,340,000
-
104
0.24
2.00
0.080
0.100
On issue
0.057
133,146
Awarded to
Stephen Abbott
Alasdair Cooke
Wayne Trumble
Alex Sundich
-
-
-
-
-
2,000,000
500,000
500,000
3,000,000
-
-
-
3,000,000
-
-
-
-
-
-
-
-
2,340,000
-
-
* On 11 September 2020, the Company's shareholders approved the issue of 2,730,000 options to Alasdair Cooke under
the Company's Employee Incentive Scheme and have been valued accordingly on this date. Of these, 390,000 options
were considered granted and expensed in the year ended 30 June 2021 and 2,340,000 options were considered granted
and expensed in the year ended 30 June 2021.
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.
37
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
7.6. Shares
During the year ended 30 June 2021, the Company issued a total of 3,644,222 shares (2020: nil) to Orbit Drilling in
exchange for services as follows:
-
On 16 October 2020 the Company issued 2,082,222 shares at 4.5 cents per share to Orbit Drilling to settle $93,700
of invoices for services received from the supplier.
On 8 January 2021 the Company issued 1,562,000 shares at 8 cents per share to Orbit Drilling to settle $124,960 of
invoices for services received from the supplier.
-
7.7. Recognised share-based payment expense in profit or loss
Expense arising from employee options issued
Total share-based payments expensed in profit or loss
2021
$
2,377,324
2,377,324
2020
$
178,942
178,942
In addition to the employee options recognised in the Income statement, the Company issued 2 million options over
ordinary shares to Cannacord in lieu of share placement brokerage fees of $179,000. The options were issued at no cost
at an exercise price of 30 cents, fully vested and exercisable upon issue and expiring on 3 March 2024. The value of the
options is recognised as the costs of share issue in the Statement of financial position.
8. Other
8.1. Events occurring after the reporting period
On 9 July 2021, 625,000 options were exercised at a strike price of 8 cents to raise $50,000.
On 20 September 2021, 11,200,000 options were exercised at a strike price of 8 cents to raise $896,000.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the entity up
to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The
situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
Other than the matters above, at the date of this report there are no other matters or circumstances which have arisen
since 30 June 2021 that have significantly affected or may significantly affect:
•
•
the operations, in financial years subsequent to 30 June 2021, of the Group;
the results of those operations, in financial years subsequent to 30 June 2021, 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 $661,000.
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 2021 Caravel Minerals Limited has no contingent liabilities (2020: nil).
38
CARAVEL MINERALSANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
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
2021
$
2020
$
40,332
40,332
45,913
45,913
39
ANNUAL REPORT 2021CARAVEL MINERALS
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
8.4. New and revised accounting standards
Adoption of new and revised accounting standards
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework
contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards, but it has not had a material impact on the consolidated entity's financial statements.
Standards issued but not yet effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021.
The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and
Interpretations.
40
CARAVEL MINERALSANNUAL REPORT 2021
Director's Declaration
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 2021 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 2021.
On behalf of the Board.
Stephen Abbott
Managing Director
30 September 2021
41
ANNUAL REPORT 2021CARAVEL 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 of Caravel Minerals Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of 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)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
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 (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
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.
42
CARAVEL MINERALSANNUAL REPORT 2021
Accounting for Share-Based Payments
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2021, the
Group issued options to a broker, employees and
key management personnel, as disclosed in Note
7.5 of the annual report.
The Group performed calculations to record the
related share-based payment expense in
accordance with AASB 2 Share Based Payment in
the consolidated statement of profit or loss,
other comprehensive income and consolidated
statement of financial position.
Refer to Note 7.3 of the annual report for a
description of the accounting policy and Note 1.7
for the significant estimates and judgements
applied to these arrangements.
Due to the complex judgements and estimates
used in determining the valuation of the share-
based payments and the appropriate vesting of
the expense, we consider the Group’s calculation
of the share based payment expense and
associated disclosures to be a key audit matter.
Our procedures included, but were not limited
to:
• Reviewing the relevant agreements to
obtain an understanding of the
contractual nature and terms and
conditions of the share-based payment
arrangements;
•
•
Evaluating management’s determination
of the fair value of the share-based
payments granted, considering the
appropriateness of the valuation models
used and assessing the valuation inputs;
Involving our valuation specialists to
assess the reasonableness of certain
assumptions used in management’s
calculations;
• Assessing the allocation of the share-
based payment expense over the
relevant vesting period; and
• Assessing the adequacy of the related
disclosures in the annual report.
2
43
ANNUAL REPORT 2021CARAVEL MINERALS
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of 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:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
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3
CARAVEL MINERALSANNUAL REPORT 2021
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 13 to 17 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Caravel Minerals Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 30 September 2021
4
45
ANNUAL REPORT 2021CARAVEL MINERALS
Additional Shareholder Information
Additional Shareholder Information – as at 15 September 2021
as at 15 September 2021
1.
TWENTY LARGEST SHAREHOLDERS
The names of the twenty largest holders of each class of listed securities as at 15 September 2021 are listed below:
ORDINARY SHARES
Rank
Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Alasdair Cooke
African Energy Resources Limited
Glenvar Nominees Pty Ltd
Mrs Pamela Julian Sargood
Milford Park Superannuation Pty Ltd
Citicorp Nominees Pty Limited
Orbit Drilling Pty Ltd
Troca Enterprises Pty Ltd
Mandel Pty Ltd
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Pty Limited
Newstead South Holdings Pty Ltd
HSBC Custody Nominees (Australia) Limited
Equity Trustees Limited
Pebadore Pty Ltd
Burls Holdings Pty Ltd
Beebee Holdings Pty Ltd
Kendali Pty Ltd
Mrs Sarah Elizabeth Mcintyre
National Nominees Limited
2. DISTRIBUTION OF EQUITY SECURITIES
Analysis of security by size holding as at 15 September 2021 :
Securities
23,676,358
15,283,872
14,830,358
12,450,000
10,662,291
9,504,447
9,358,828
8,749,001
8,200,000
7,818,163
7,659,615
6,690,138
6,067,036
6,000,000
5,950,000
5,920,512
5,349,823
4,000,000
4,000,000
3,986,969
%
6.08%
3.92%
3.81%
3.20%
2.74%
2.44%
2.40%
2.25%
2.10%
2.01%
1.97%
1.72%
1.56%
1.54%
1.53%
1.52%
1.37%
1.03%
1.03%
1.02%
176,157,411
45.21%
Holding Ranges
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including 100,000
above 100,000
Totals
Holders
105
344
250
677
333
1,709
Total Units
41,119
1,028,521
1,983,183
27,360,763
347,986,431
378,400,017
% Issued Share Capital
0.01%
0.27%
0.52%
7.23%
91.97%
100.00%
3. UNQUOTED SECURITIES
As at 15 September 2021, the following unquoted securities are on issue:
Unquoted Securities
$0.080 Options expiring 30/09/2021
$0.080 Options expiring 30/06/2022
$0.080 Options expiring 30/09/2022
$0.100 Options expiring 31/12/2022
$0.300 Options expiring 03/03/2024
$0.300 Options expiring 30/06/2023
$0.750 Options expiring 31/05/2023
Total unquoted securities
46
Number on Issue
Number of Holders
14,200,000
3,215,100
1,250,000
250,000
2,000,000
13,042,222
1,727,447
35,684,769
6
2
1
1
1
12
1
CARAVEL MINERALSANNUAL REPORT 2021
Additional Shareholder Information
Additional Shareholder Information – as at 15 September 2021
as at 15 September 2021
4.
SUBSTANTIAL SHAREHOLDERS
The names of the substantial shareholders listed in the company’s register as at 15 September 2021 are:
Name
Paradice Investment Management
Alasdair Cooke (and associated entities)
5. VOTING RIGHTS
The voting rights of the ordinary shares are as follows:
Number of Shares Held
25,925,926
23,176,358
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. MINERAL RESOURCES
At 15 September 2021 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.
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ANNUAL REPORT 2021CARAVEL MINERALS
ASX:CVV
Suite 1, 245 Churchill Avenue, Subiaco WA 6008
Phone: +618 9426 6400 - Fax: +618 9426 6448