Cygnus Gold Limited
Annual Report 2020
An Australian Gold and Base Metals Exploration Group
Corporate Directory
Principal Place of Business & Registered Office
Ground Floor, 24 Outram Street, West Perth, WA 6005
Contact information
Phone: +61 (0)8 6118 1627
Email: info@cygnusgold.com Website: www.cygnusgold.com
Australian Business Number
80 609 094 653
Directors
Mr Michael Bohm
Non-Executive Chairman
Mr Simon Jackson
Executive Director
Mr Raymond Shorrocks Non-Executive Director
Mr Shaun Hardcastle
Non-Executive Director
Joint Company Secretaries
Mr Michael Naylor
Ms Susan Field
Auditors
Grant Thornton Audit Pty Ltd
Central Park, Level 43
152-158 St Georges Terrace
Perth WA 6000
Bankers
National Australia Bank
100 St Georges Terrace Perth WA 6000
Stock Exchange Listing
Solicitors
Primary listing: Australian Securities Exchange
HWL Ebsworth Lawyers
ASX Code: CY5
Share Register
Computershare Investor Services Pty Ltd
GPO Box 2975, Melbourne VIC 3001
Phone: +61 3 9415 5000
Fax: +61 3 9473 250
Level 20, 240 St Georges Terrace
Perth WA 6000
2
Contents
02
Corporate Directory
04
Chairman’s Statement
05
Directors’ Report
36
Auditor’s Independence Declaration
37
Consolidated Statement of Profit and Loss and Other Comprehensive Income
38
Consolidated Statement of Financial Position
39
Consolidated Statement of Changes in Equity
40
Consolidated Statement of Cash Flows
41
Notes to the Financial Statements
67
Directors’ Declaration
68
Independent Auditor’s Report
71
ASX Additional Information
3
Chairman’s Statement
Dear Shareholder,
2020 has certainly been a challenging year across the globe with the Covid-19 pandemic impacting lives and business
globally.
For Cygnus Gold Limited (ASX: CY5) it has been a year of transition as we moved from grass roots exploration in the
wheatbelt of Western Australia (WA) to focus on the opportunity to acquire a more advanced asset and to strengthen
our balance sheet.
In parallel with this we continued to support the excellent gold exploration work in WA being carried out by our joint
venture partner Gold Road Resources. The joint ventures provide Cygnus shareholders with potentially meaningful
exposure to gold exploration success in the wheatbelt via the world-class exploration team at Gold Road.
Rounding out the transition of our business focus was the appointment of experienced non-executive directors Ray
Shorrocks and Shaun Hardcastle to the Cygnus board during 2020. Ray and Shaun bring a wealth of Industry and
Corporate experience to the board, as well as a track record of success, which will be utilised by Simon Jackson who
transitioned to an Executive role, leading Cygnus’ search for an advanced asset.
In addition to that search, and the work of our JV partner Gold Road, the Group is looking at opportunities to unlock
value from its WA nickel and base-metals prospects which we believe, whilst early stage, show promise in an area
gaining attention due to the growing demands in the battery-metals sector.
I would like to thank shareholders for supporting the changes made to the business as we moved to transition the
Group away from a sole focus on grass-roots exploration, whilst navigating the challenges presented - to everyone -
by the pandemic.
We are still on that journey and plan to deliver on a new business outlook as a priority during 2021.
In closing, I wish for all of our shareholders and stakeholders to remain safe and well during these challenging times.
Michael Bohm
Chairman
4
Directors’ Report
The directors’ of Cygnus Gold Limited (Cygnus or the Company) and the entities controlled (Group) present their report, together
with the financial statements for the year ended 31 December 2020.
Directors
The names and details of the Group’s directors in office during the financial year and until the date of this report (unless
otherwise stated) are as follows:
Mr Michael Bohm - Non-Executive Chairman
Appointed 30 September 2016
Mr Bohm is a qualified mining professional with significant corporate and operations experience. He has had extensive minerals
industry experience in Australia, South East Asia, Africa, Chile, Canada and Europe. A graduate of WA School of Mines, Mr Bohm
has worked as a mining engineer, mine manager, study manager, project manager, project director and managing director and
has been directly involved in a number of new mine developments.
Mr Bohm currently serves as a Director of a number of ASX-listed companies and sits on their Audit & Risk Committees and Chairs
their Remuneration Committees. Prior to this, he has held a number of directorships including those with Perseus Mining Limited,
Argyle Diamonds Mines, Sally Malay Mining Limited and Ashton Mining of Canada.
Over the past three years, Mr Bohm has also held directorships with the following ASX listed companies:
Other current directorships
Commenced
Ceased
Mincor Resources Limited
1 January 2017
Ramelius Resources Limited
29 November 2012
Riedel Resources Limited
11 December 2020
-
-
-
Former directorships in the last 3 years
Perseus Mining Limited
15 October 2009
31 May 2018
5
Mr Simon Jackson – Executive Director
Appointed Executive Director on 31 August 2020, previously appointed Non-Executive Director on 17 November 2017.
Mr Jackson is a Chartered Accountant with 30 years' experience in the gold industry. He is currently Managing Director of ASX
listed copper explorer Kopore Metals Limited. He previously held positions as CEO and MD of ASX-listed Brazilian-focused gold
producer Beadell Resources Limited and President & CEO of the TSXV-listed Orca Gold Inc, a junior exploration company with
multiple gold discoveries in Sudan.
From 1999 to 2010, he was an integral part of the senior management team at Red Back Mining Inc, which grew from a small
West Perth-based junior to a TSX-listed intermediate producer that was taken over by Kinross Gold Corp in 2010. Mr Jackson's
career includes corporate transactions and equity financings involving assets in Australia, Africa, Asia and South America.
Over the past three years, Mr Jackson has also held directorships with the following ASX listed companies:
Other current directorships
Commenced
Ceased
CZR Resources Limited (formerly Coziron Resources Limited)
30 January 2019
Sarama Resources Limited
Kopore Metals Limited
11 March 2011
7 March 2019
-
-
-
Former directorships in the last 3 years
Beadell Resources Limited
9 November 2015
14 July 2018
Orca Gold Inc
4 April 2013
30 May 2019
6
Mr Raymond Shorrocks - Non-Executive Director
Appointed 30 June 2020
Mr Shorrocks has over 27 years’ experience working in the investment banking industry. He is highly conversant and experienced
in all areas of mergers and acquisitions and equity capital markets, including a significant track record of transactions in the
metals and mining sectors. He was past Chairperson of ASX listed Bellevue Gold Limited and Republic Gold Limited.
Mr Shorrocks is Executive Chairman of Auteco Minerals Limited and is former Director and head of the Corporate Finance
department of a major Australian investment services company based in Sydney.
Over the past three years, Mr Shorrocks has also held directorships with the following ASX listed companies:
Other current directorships
Commenced
Ceased
Auteco Minerals Limited
Galilee Energy Limited
HCD Limited
Alicanto Minerals Limited
Former directorships in the last 3 years
28 January 2020
02 December 2013
12 June 2016
07 August 2020
-
-
-
-
Bellevue Gold Limited
31 December 2015
19 September 2019
Estrella Resources Limited
24 June 2015
01 February 2019
7
Mr Shaun Hardcastle - Non-Executive Director
Appointed 30 June 2020
Mr Hardcastle has over 15 years’ experience as a corporate lawyer and extensive experience in corporate governance, risk
management and compliance. He has been involved in a broad range of cross border and domestic transactions including equity
capital markets, mergers & acquisitions, corporate governance and project finance. Mr Hardcastle has practised law both in
Australia and overseas and currently works as a Partner with HWL Ebsworth. He graduated from the University of Western
Australia in 2005 with a Bachelor of Laws and Bachelor of Arts.
Over the past three years, Mr Hardcastle has also held directorships with the following ASX listed companies:
Other current directorships
Commenced
Ceased
Rare X Limited
Schrole Group Ltd
01 December 2017
04 October 2017
-
-
Former directorships in the last 3 years
Hawkstone Mining Ltd
Pure Foods Tasmania Ltd
Mr James Merrillees – Managing Director
Resigned as director on 30 June 2020
Dr Oliver Kreuzer – Non-Executive Director
Resigned as director on 30 June 2020
23 February 2015
14 July 2020
23 August 2018
28 April 2020
Interests in the shares and options of the Company
As at the date of this report, the interests of the directors in the shares (direct and indirect) of the Company were:
Name
Number of ordinary shares
Unlisted Options
Mr Michael Bohm
Mr Simon Jackson
Mr Ray Shorrocks
5,337,780
2,515,557
2,051,281
Mr Shaun Hardcastle
829,060
2,000,000
2,000,000
2,000,000
2,000,000
8
Joint Company Secretaries
Mr Michael Naylor
Mr Naylor has 27 years’ experience in corporate advisory and public company management since commencing his career and
qualifying as a Chartered Accountant with Ernst & Young. He has been involved in the financial management of mineral and
resource focused public companies serving on the board and in the executive management team focusing on advancing and
developing mineral resource assets and business development.
Ms Susan Field
Susan is a Chartered Accountant with over 27 years’ experience in the corporate sector and in public practice. Since qualifying as
a Chartered Accountant with Ernst & Young, Ms Field has worked in several management roles in both the public and private
sector. Prior to entering public practice, Ms Field also spent over 11 years in the financial services and retail banking industry
where she held various positions in several operational management roles.
Operating results
The Group’s consolidated net loss for the year ended 31 December 2020 after providing for income tax amounted to $7,720,430
(2019: $870,917).
The loss included the following items:
(cid:120)
(cid:120)
Share-based payment expense of $,1,174,396 (2019: $29,442)
Exploration expenditure written off of $3985,457 (2019: $437,351)
(cid:120) Options valued using Black-Scholes option pricing formula issued to a combination of management and consultants of
$2,260,524 (2019: Nil)
Review of financial position
The net assets are $3,376,826 as at 31 December 2020 (2019: $5,084,373).
Principal activities
Cygnus is an exploration company focused on the discovery of gold and base metals deposits in the south west Yilgarn of
Western Australia.
There have been no significant changes in the nature of these activities during the period.
9
Review of Operations
Overview
Cygnus has assembled a significant team of stakeholders including an experienced Board of Directors and several strategic
industry shareholders. This combination will hold shareholders in good stead as Cygnus moves forward.
Cygnus is conducting a detailed internal review of the various exploration licences that it holds in the Southwest Terrane of
Western Australia. The results of this review will lead Cygnus as it looks to progress exploration work in this region and form new
partnerships.
The Company is also actively searching for new, more advanced opportunities in precious and base metals and has reviewed a
number or potential opportunities during the year. This work is ongoing.
Figure 1: Cygnus Gold 100% and Joint Venture tenements and applications in the Southwest Terrane, WA
10
Bencubbin Project
Cygnus Gold’s 675km2 Bencubbin Project comprises three granted tenements (E70/4988, Bencubbin, E70/5169, Bencubbin North
and E70/5168, Bencubbin South).
The project, approximately 200km northeast of Perth, covers the Bencubbin Greenstone Belt – a suite of rocks extending over a
strike length of 70km and up to 5km in width - where the Company’s review of historical exploration confirmed the belt’s
prospectivity for (refer Figure 2 and Cygnus Gold ASX announcement 30/11/2018)1:
(cid:120)
‘Kambalda-style’, komatiite-hosted magmatic nickel-copper sulfides; and
(cid:120) Volcanogenic massive sulfide (VMS) base metals (lead-zinc-copper) mineralisation associated with the Mandiga gossan
where exploration by previous explorers included best results of (Refer ASX announcement on 25 February 2020)1:
(cid:120)
(cid:120)
(cid:120)
18m @ 0.14% Ni from 32m in Hole DMA4;
2m @ 0.63% Pb from 52m in Hole DMA2; and
2m @ 1.7% Zn from 176m in Hole DMA5.
Figure 2: Bencubbin North, geology, targets and Cygnus Dec. 2019-Jan 2020 aircore program and historical drilling (refer ASX
Announcement 7 October 2019)1.
11
A 76-hole (2,643m) drilling program to test high priority nickel and base metals targets was completed in early 2020,
The program at Bencubbin North intersected target geology and alteration systems on several of the high priority nickel and base
metals targets tested. Drilling highlights include:
(cid:120)
(cid:120)
Thick (up to 800m wide) komatiite sequences were intersected in the shallow drilling over the Bencubbin North nickel
targets, the first ultramafic rocks described in the belt and analogous to the rocks that host the Kambalda nickel deposits
Several zones of Pb and Zn mineralisation were intersected at the Mandiga lead-zinc-copper target, including:
o 4m @ 0.12% Pb + Zn from 12m in BNAC0023
o 1m @ 0.13% Pb + Zn from 18m in hone BNAC0041
o 1m @ 0.45% Pb + Zn in hole BNAC0042.
The Mandiga-Grylls system is confirmed as a strike extensive (more than 7km long) and broadly stratabound Ag-Pb-Zn-Cu anomaly
including strong sericite-chlorite and pathfinder mineral assemblages consistent with a VMS style mineralised system.
The Group’s regional-scale drilling at Bencubbin North has now confirmed the prospectivity of the bedrock stratigraphy below
the extensive Ni-Cu, Cu-Pb-Zn & Cu-Zn soil anomalies identified in historical soil sampling.
In particular, no electrical geophysics such as electromagnetics (EM) has been undertaken on the Ni targets, and no modern (i.e.
post 1980) EM has been completed on the VMS targets, including Mandiga.
For the Ni targets, further sampling of Cu anomalous samples and EOH samples in the ultramafics are warranted, looking for
evidence of a sulphur saturation event in the ultramafic rock. If this can be established, ground TEM would be warranted looking
for blind accumulate hosted Ni-sulphide systems. In particular, the anomalous Cu results in ferruginous saprolite will be re-
assayed for PGE’s.
Cygnus is reviewing options for advancing this project, which may include joint venture funding.
12
Stanley Project
Cygnus’ ~160km2 Stanley tenement covers a ~20km length of prospective greenstone including numerous prospects where
previous explorers intersected high-grade gold mineralisation.
The Group’s exploration at Stanley is focused on the discovery of high-grade gold mineralisation at the Keppler and McDougalls
prospects (Figure 3).
Figure 3: Cygnus Gold’s Stanley Project highlighting the Kepler Zone and McDougalls, Western Australia. Refer CY5 ASX
announcement 28 May 20191 for drill results and target descriptions.
13
Kepler
The Group’s initial exploration focus at Stanley was on extensions to the Bottleneck prospect, a historical prospect where
previous explorers had intersected shallow high-grade gold.
The Group’s early drilling confirmed this high-grade Bottleneck zone. Analysis of drill results subsequently identified that
mineralisation is preferentially concentrated in a distinct metadacite unit (the Kepler Zone) which extended well north and west
of Bottleneck and was poorly lightly tested by deeper drilling.
Follow up drilling at Kepler intersected a broad zone of mineralisation in a section 220m along strike from Bottleneck, with hole
STRC0020 intersecting (refer Figure 4 and CY5 ASX announcement 28 May 2019)1:
(cid:120)
6m @ 1.95 g/t Au from 81m, which included 2m @ 5.49 g/t Au from 81m.
A large extent of the metadacite unit at Kepler remains untested by drilling, and Cygnus has undertaken a strategic review to
guide the forward program on this target (refer discussion below).
Figure 4: Cygnus Gold’s Kepler Zone in the Stanley Project. Background image is 1VD of the Bouguer gravity where red colours
define denser rock units (refer CY5 ASX announcement 28 May 20191 for drill results and target descriptions).
McDougalls
The McDougalls prospect includes McDougalls South, where Cygnus drilling intersected anomalous gold over wide
intervals including (see ASX announcement 2 April 2019)1:
(cid:120) STRC0007: 4m @ 0.25g/t Au from 32m
(cid:120) STRC0008: 16m @ 0.19g/t Au from 32m
(cid:120) STRC0016: 10m @ 0.37g/t Au from 50m.
Follow-up aircore drilling by the Group demonstrated these mineralised zones are associated with a shallow, 1,000m x
500m zone of anomalous gold within a NW-trending structural zone.
14
To test this zone for higher grades, Cygnus drilled six RC holes (STRC0022-0027) that intersected more widespread
gold mineralisation with intersections including (refer Figure 8 and ASX announcement 28 May 2019)1:
(cid:120) STRC0023: 9m @ 0.40g/t Au from 42m 2
(cid:120) STRC0024: 5m @ 0.34g/t Au from 32m
(cid:120) STRC0025: 3m @ 0.31g/t Au from 90m and
(cid:120) STRC0027: 11m @ 0.14g/t Au from 64m.
A technical review of the McDougalls prospect has identified several targets to test for higher gold grades in this broad
mineralised system.
The Group is in discussions regarding potential JV partners for the Stanley Project.
Gold Road JV Projects
In addition to the 100% projects, Cygnus is also in joint venture (JV) with ASX-listed developer Gold Road Resources Ltd (Gold
Road, ASX:GOR) over the Lake Grace (diluting to 10%) and Yandina (diluting to 10%) JVs (Figure 1).
The JV tenements cover an area of approximately 3,000km² targeting gold mineralisation associated with the prospective
Yandina Shear which is known to host gold mineralisation elsewhere in the Southwest Terrane (SWT).
In October 2020, Gold Road took over management of the Lake Grace and Yandina JV’s. Cygnus is currently planning to maintain
its 10% interest in these JV’s.
The Hammerhead Project (Figure 5) is part of a more than 20km long belt where the JV is targeting gold mineralisation within a
prospective greenstone package associated with the regional Yandina Shear. The Yandina Shear Zone is a regional geological
structure extending over hundreds of kilometres and interpreted to control the distribution of gold mineralisation regionally.
A 336-hole (15,737m) program targeting more than 20km long Hammerhead greenstone belt was completed in March 2020. The
results from the early 2020 air-core (AC) drilling defined at least eight discrete gold anomalous zones associated with a 20km long
section of the Yandina Shear, with best results returned from the Gunsmoke, Lakeside and Hammerhead prospects, including:
(cid:120) Gunsmoke:
o 12m @ 0.78 g/t Au from 30m, incl. 8m @ 1.06 g/t Au from 30m in LGAC0332
(cid:120) Hammerhead:
o 1m @ 0.16g/t Au from 39m (end of hole sample) in LGAC0138
o 3m @ 0.24g/t Au from surface and 2m @ 0.15g/t Au from 32m in LGAC0140.
(cid:120)
Lakeside:
o 6m @ 0.59g/t Au from 49m in LGAC0418
o 3m @ 0.20g/t Au from 25m in LGAC0429.
In June, the JV commenced follow up drilling at Hammerhead and this program was completed during the third quarter for a total
of 9,081m of aircore (AC) and 736m of reverse circulation (RC) drilling targeting the Hammerhead, Lakeside, Gunsmoke and Holland
Rock prospects.
This program was inclusive of 1,300m of AC drilling at the Hideaway Prospect on the Lake Grace JV approximately 50km to the
northwest of Hammerhead.
Hideaway is a large historical gold-in-soils anomaly coincident with a 1.1km-long mafic-felsic granulite contact. Limited, shallow
drilling at Hideaway by previous explorers included 11m at 1.3 g/t Au from 7m (HRC1) and 1m at 1.0 g/t Au from 31 m and 1m at
0.83 g/t Au from 37m (HRC7).
During the year Cygnus was once again successful in securing Western Australian Government co-funding to support diamond core
drilling of several prospects on the Hammerhead Project.
The co-funding of up to $150,000 in direct drilling costs is part of the Exploration Incentive Scheme (EIS), a competitive award by
the State Government to support technically driven mineral exploration in Western Australia (WA).
15
Figure 5: Hammerhead Project, Western Australia. Aircore drilling with significant intervals (>0.1 g/t Au) on ground gravity. Refer
ASX Announcement 7/10/2019 for intercept details1.
Burracoppin Project (Cu-Pb-Zn)
Cygnus’ Burracoppin tenements, ~25km east-northeast of Merredin, are along strike from the Edna May gold mine,
owned and operated by Ramelius Resources Ltd (ASX:RMS).
Exploration by previous explorers at Burracoppin identified a more than 2.5km long by 0.7km wide gold-in-soil anomaly
at Anomaly 47. This anomaly is open to the east where it is obscured by a paleochannel system.
The geochemical signature of mineralisation at Anomaly 47 is similar to that of known volcanogenic massive sulphide
(“VMS”) deposits globally, and Cygnus’ detailed ground gravity and airborne electromagnetic (AEM) surveys identified
several anomalies with signatures comparable with known VMS systems and which warrant follow up drill testing (for
details refer ASX Announcement 22/10/2018)1.
16
Panhandle Project
The ~100km2 Panhandle tenement (approximately 300km north of Kalgoorlie in the Central Yilgarn of Western Australia) covers a
~13km long section of the Panhandle Greenstone Belt where the Group’s review of historical exploration has revealed limited
surface sampling and geophysical surveys with no previous drilling (Figure 6). The Group considers the Panhandle tenement
prospective for:
(cid:120) Volcanogenic massive sulfide (VMS) base metals (lead-zinc-copper) mineralisation analogous to Cobre Ltd’s (ASX:CBE)
Perrinvale Project which includes an intersection of 5m @ 9.75% Cu, 3.2g/t Au, 34g/t Ag, 3.1% Zn on the Schwabe prospect
(refer CBE ASX Announcement 31/1/2020)
(cid:120) Orogenic gold mineralisation similar to ASX-listed TSC Ltd’s (ASX:TSC) Rover Project intersected high grade gold including
5m @ 9g/t Au (refer TSC ASX Announcement 25/2/2020)
(cid:120) Magmatic nickel-copper sulfides hosted in mafic/ultramafic rocks identified in the Panhandle Greenstone.
Figure 6: Cygnus’ Panhandle project interpreted geology with adjacent Cobre prospects highlighted. Drill intersections quoted are
from CBE ASX Announcement 31 January 20201.
17
Corporate
During the year Cygnus underwent a significant change in Management, Board and welcomed some significant new shareholders
to the register.
Founding Directors, James Merrillees and Oliver Kreuzer resigned from the Board and Ray Shorrocks and Shaun Hardcastle
became non-executive Directors. Simon Jackson transitioned into a part time executive Director role.
The Group undertook two equity placements in 2020 and welcomed some new substantial shareholders:
(cid:120)
(cid:120)
In July 2020, the Group completed a placement to raise approximately $1,370,000 (before costs) through the issue of up
to 30,455,556 fully paid ordinary shares in the Group at an issue price of $0.045 per share.
In August 2020 the Group received commitments from sophisticated and professional investors to raise approximately
$1.2 million (before costs) through the issue of up to 9,363,461 fully paid ordinary shares in the Group at an issue price
of $0.13 per share.
In October 2020, the Group’s registered address and principal place of business changed to Ground Floor, 24 Outram Street,
West Perth and in December 2020 it appointed Susan Field as joint Company Secretary joining Michael Naylor in this role.
At year end the Group remains well financed with $3,385,934 in cash.
Share placements and issues
During the financial year, the Group issued 39,819,017 as detailed in the below table to raise $2,587,750 before issue costs.
Date
07/07/2020
27/08/2020
23/09/2020
16/11/2020
16/11/2020
Total
Number of
Shares
10,000,000
6,825,000
19,900,000
555,556
2,538,461
39,819,017
Price per
Share
$
0.045
0.130
0.045
0.045
0.130
Amount raised before
issue costs
$
450,000
887,250
895,500
25,000
330,000
2,587,750
Unlisted options issued
Grant Date
Date of
Exercise
Expiry
Price
$
22/09/20
22/09/23
$0.08
Total
Balance
1 January
2020
-
-
Granted
Exercised
Balance
Vested and
31 December
Exercisable
2020
29,500,000
-
29,500,000
29,500,000
29,500,000
-
29,500,000
29,500,000
18
Change of Registered Address
In September, the Group changed its registered address to Ground Level, 24 Outram Street, West Perth, WA 6005.
Resignation of Non-Executive Director
On 30 June 2020, Mr James Merrillees and Dr Oliver Kreuzer resigned.
Dividends paid or recommended
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to
the date of this report.
Subsequent Events
There not been any events that have arisen between 31 December 2020 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations of
the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
Likely Developments and Expected Results
The Group is committed to:
•
•
•
exploration of the Group’s key assets in the Wheatbelt region of Western Australia;
continue to negotiate further access with private landholders in relation to areas of interest identified by the above
activities; and
implement a strategy to seek out further exploration, acquisition and joint venture opportunities.
Environmental issues
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all
regulations when carrying out any exploration work. The directors have considered the National Greenhouse and Energy
Reporting Act 2007 (‘the NGER Act’) and at the current stage of development and based on the locations of the Group’s
operations, the directors have determined that the NGER Act will have no effect on the Group for the current or subsequent
financial year. The directors will reassess this position as and when the need arises.
No environmental breaches have occurred or have been notified by any Government agencies during the year ended 31
December 2020.
Significant changes in the state of affairs
There have been no changes in the state of affairs of the Group other than those outlined in the Review of Operations.
Corporate Governance
The directors of Cygnus believe that effective corporate governance improves company performance, enhances corporate social
responsibility and benefits all stakeholders. Changes and improvements are made in a substance over form manner, which
appropriately reflect the changing circumstances of the company as it grows and evolves. Accordingly, the Board has established
a number of practices and policies to ensure that these intentions are met and that all shareholders are fully informed about the
affairs of the Group.
19
The Company reviews all of its corporate governance practices and policies on an annual basis to ensure they are appropriate for
the Company’s current stage of development. This year, the review was made against the new ASX Corporate Governance
Council’s Principles and Recommendations (4th edition).
The Board has reviewed and approved its Corporate Governance Statement on 31 March 2021, and this is available on the
Company’s website at www.cygnusgold.com/corporate-governancedetail
The Company has a corporate governance section on the website which includes details on the Company’s governance
arrangements and copies of relevant policies and charters.
20
Remuneration Report (Audited)
This remuneration report for the year ended 31 December 2020 outlines the remuneration arrangements of the Company and
its’ controlled entities (Group) in accordance with the requirements of the Corporations Act 2001 (Cth) (the Act) and its
Regulations. This information has been audited as required by section 300A of the Corporations Act.
The remuneration report details the remuneration arrangements for Key Management Personnel (KMP) who are defined as
those persons having authority and responsibility for planning, directing and controlling the major activities of the
Company and Group, directly or indirectly including any director (whether executive or otherwise) of the parent.
The table below outlines the KMP of the Company during the financial year ended 31 December 2020. Unless otherwise
indicated, the individuals were KMP for the entire financial year.
For the purposes of this report, the term “executive” includes the Executive Directors and senior executives of the Company.
Executive director
Simon Jackson
Executive Director (appointed Executive Director on 31 August 2020, previously
Non-Executive Director appointed 17 November 2017)
James Merrillees *
Managing Director (resigned 30 June 2020)
Non Executive director
Michael Bohm
Non-Executive Chairman (appointed 30 September 2016)
Raymond Shorrocks
Non-Executive Director (appointed 30 June 2020)
Shaun Hardcastle
Non-Executive Director (appointed 30 June 2020)
Oliver Kreuzer
Senior executive
Non-Executive Director (resigned 30 June 2020)
Michael Naylor
Joint Company Secretary (appointed 4 October 2016)
Susan Field
Joint Company Secretary (appointed 23 December 2020)
*Remuneration paid to James Merrillees as an employee or consultant after 30 June 2020 has not been included in this report as
he was not considered Key Management personnel from this date on.
There were no other changes to KMP after reporting date and before the date the financial report was authorised for issue.
21
Remuneration governance
Due to the current size of the Group, it is more efficient and effective for the functions otherwise undertaken by a remuneration
committee to be performed by the Board. All directors are therefore responsible for determining and reviewing compensation
arrangements for key management personnel, including periodically assessing the appropriateness of the nature and amount of
remuneration by reference to relevant market conditions and prevailing practices.
The Board may obtain professional advice where necessary to ensure that the Group attracts and retains talented and motivated
directors, executives and employees who can enhance Group performance through their contributions and leadership.
Remuneration framework
The Board recognises that the Group’s performance and ultimate success in project delivery depends on many factors including
its ability to attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must be
transparent to shareholders and be fair and competitive, taking into account the nature and size of the organisation and its
current stage of activities, funding and general market conditions.
The approach to remuneration has been structured with the following objectives:
•
•
Fairness: provide a fair level of reward to all employees;
Transparency: establish transparent links between reward and performance;
• Alignment: promote mutually beneficial outcomes by aligning employee, and shareholder interests; and
• Culture: drive leadership performance and behaviours that promote safety, diversity and employee engagement.
The remuneration for executives may have several components, including:
•
•
•
Fixed remuneration, inclusive of superannuation and allowances;
Short Term Incentives (“STI”) under a performance-based cash bonus incentive plan; and
Long Term Incentives (“LTI”) through participation in the Company’s approved equity incentive plan.
These three components comprise each executive’s total annual remuneration.
To link executive remuneration with the Company’s performance, the Company’s policy is to endeavour to provide a portion of
each executive’s total remuneration as “at risk”.
22
2020 mix of remuneration for Directors and KMP percentage of total remuneration
James Merrillees and Oliver Kreuzer resigned 30 June 2020.
Overview of Company Performance
In considering the Company’s performance and benefits for shareholder wealth, the Board has regard to the following indices in
respect of the current and the previous three financial years:
2017
2018
2019
2020
Income
$3,262
$198,317
$231,203
$439,311
Net loss after tax
$784,721
$638,119
$870,917
$7,720,430
Share price 31 December
N/A
$0.065
$0.044
$0.18
Currently, there is a portion of remuneration of key management personnel that is linked to performance via share based awards
which is linked to individual performance, the volume weighted average price, tenure with the Company, and total of
shareholder return as measured against the performance of a Company of peer exploration companies. The rationale for this
approach is that the Group is in the exploration phase, and it is currently not appropriate to link remuneration to factors such as
profitability.
23
Executive Director Remuneration
A combination of fixed and variable reward may be provided to executives, based on their responsibility within the Company in
relation to the achievement of its strategic objectives and capacity to contribute to the generation of long term shareholder
value.
The components of executive remuneration may consist of:
Fixed Remuneration
Executives receive a fixed base cash salary and other associated benefits. Executives also receive statutory superannuation
guarantee contribution required by Australian legislation which was 9.5% on 31 December 2020. No executives receive any other
retirement benefits.
Fixed remuneration of executives will be set by the Board each year and is based on a number of factors. In setting fixed
remuneration for executives, individual performance, skills, expertise and experience are also taken into account as well as the
Company’s current level of activity and funding.
Where appropriate, external remuneration consultants may be engaged to assist the Board. No external consultants were
engaged during the year.
Long Term Incentives
The objective of LTI’s is to provide potential reward to executives and directors in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As such LTIs can be made to executives and directors who are able to
influence the generation of shareholder wealth and thus have an impact on the Company’s performance.
Included in the 29,500,000 Incentive Options issued on 22 September 2020 are 10,000,000 Incentive Options which were granted
during the year to Simon Jackson, Michael Bohm, Shaun Hardcastle, Ray Shorrocks and Michael Naylor (or their respective
nominees) as follows;
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
Mr Simon Jackson (or his nominee)
Mr Michael Bohm (or his nominee)
Mr Shaun Hardcastle (or his nominee)
Mr Ray Shorrocks (or his nominee)
Mr Michael Naylor (or his nominee)
The Incentive Options were approved by shareholders at General Meeting held on 7 September 2020 at an exercise price of
$0.08 each, and with an expiry date three years from the issue date, being 22 September 2023.
There were no performance rights issued during the year.
24
Non-Executive director remuneration
Non-Executive directors’ fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are determined in accordance with the rules set out in the Company’s Constitution and the
Corporations Act at the time of the director’s retirement or termination.
Non-Executive directors’ remuneration may include an incentive portion consisting of performance rights/options, as considered
appropriate by the Board, which is subject to shareholder approval in accordance with the ASX Listing Rules.
The aggregate remuneration, and the manner in which it is apportioned amongst Non-Executive directors, is reviewed annually.
The Board considers the amount of director fees being paid by comparable companies with similar responsibilities and levels of
experience of the Non-Executive directors when undertaking the annual review process.
The current maximum amount of Non-Executive directors’ fees payable is fixed at $300,000 in total, for each 12-month period
commencing 1 January each year, until varied by ordinary resolution of shareholders.
Non-Executive directors are not entitled to any termination payments.
The Company prohibits directors or executives from entering arrangements to protect the value of any Cygnus shares, options or
performance rights that the director or executive has become entitled to as part of his/her remuneration package. This includes
entering contracts to hedge their exposure.
Use of remuneration consultants
During the year ended 31 December 2020 the Board did not engage the services of remuneration consultants. This was
considered appropriate whilst the Group is in exploration phase.
25
The remuneration of the Directors
The Directors and KMP of Cygnus are set out in the following tables:
Short Term Benefits
Post-
Share based
Employment
payments
Non-Executive Directors
s
e
e
F
t
n
a
t
l
u
s
n
o
C
s
e
e
F
/
y
r
a
a
S
l
e
v
a
e
L
l
a
u
n
n
A
s
u
n
o
B
2020 10,000 38,325
-
Mr Michael Bohm
2019 43,333
-
Dr Amanda Buckingham
2020 -
-
(resigned 20 September
2019)
2019 26,667 1,750
Dr Oliver Kreuzer
(resigned 30 June 2020)
2020 16,000
-
2019 34,667
-
-
-
-
-
-
Mr Ray Shorrocks
(appointed 30 June 2020)
2020 -
20,000
-
Mr Shaun Hardcastle
2019 -
-
-
2020 -
20,333
-
2019 -
-
-
-
-
-
-
-
-
-
-
-
-
i
s
t
h
g
R
e
c
n
a
m
r
o
f
r
e
P
)
h
s
a
c
-
n
o
n
(
s
n
o
i
t
p
O
d
e
t
s
i
l
n
U
)
h
s
a
c
-
n
o
n
(
n
o
i
t
a
u
n
n
a
r
e
p
u
S
%
d
e
s
a
b
e
c
n
a
m
r
o
f
r
e
P
n
o
i
t
a
r
e
n
u
m
e
r
f
o
l
a
t
o
T
950
78
291,680
341,033 85.6
4,117
3,376
-
-
2,533
2,845
1,520
78
3,293
3,376
-
-
-
-
-
50,826 6.6
- -
33,795 8.4
17,598 0.4
41,336 8.2
-
-
-
-
-
-
-
-
291,680
311,680 93.6
-
- -
291,680
312,013 93.5
-
-
-
26
Executives
James Merrillees
(resigned 30 June 2020)
Mr Simon Jackson
(appointed Executive
Director 31 August 2020,
2020
112,500 -
8,654
-
10,688
3,838
2019
225,000 -
17,308 -
23,019
16,469
-
-
135,680 2.8
281,796 5.8
2020
62,667 -
3,077
-
5,953
78
291,680
363,455 80.3
formerly Non Executive
2019
34,667 -
-
Director)
Michael Naylor1
Susan Field
(appointed 23 December
2020)
Total Remuneration
2020
2019
2020
2019
-
-
-
-
81,000 -
78,000 -
-
-
-
-
-
-
-
-
-
3,293
3,376
-
41,336 8.2
-
-
-
-
-
-
-
-
291,680
372,680 78.3
-
-
-
78,000 -
- -
- -
2020
201,167 159,658 11,731 -
19,111
4,072
1,458,400
1,854,139 78.9
2019
364,334 79,750 17,308 -
36,255
29,442
-
527,089 5.6
1Amount owing on 31 December 2020, $7,500 and at 31 December 2019, $6,000.
Shares Issued on Exercise of Options and Performance Rights
2020
There were no shares issued on exercise of options or performance rights during the year. However, subsequent to year end
former Director James Merrillees is to be issued 350,000 shares pertaining to having met the hurdles required for Class A and B
Performance Rights during the 2020 financial period. These Performance Rights hurdles were disclosed within the 2019 annual
report.
2019
750,000 performance rights to the value of $11,822 was granted as part of the former MD’s remuneration during the year ended
31 December 2019 of which 400,000 lapsed during the same period.
27
Shares held by directors and key management personnel, including their related parties, as set out below:
Balance at
Balance at
Received
Other
Balance Balance at
during
start of the
date of
the year on
acquisition/
at date of
end of
year appointment
exercise of
disposal of shares
resignation
the year
options
during
the year
Non-Executive directors
Mr Michael Bohm
4,226,669
Mr Raymond Shorrocks
(appointed 30 June 2020)
Mr Shaun Hardcastle
(appointed 30 June 2020)
Dr Oliver Kreuzer
(resigned 30 June 2020)
Executives
Mr James Merrillees
(resigned 30 June 2020)
Mr Simon Jackson
-
-
2,008,334
200,000
(appointed Executive Director 31
August 2020, formerly Non Executive
404,446
Director)
Mr Michael Naylor
2,241,667
Ms Susan Field
Total
-
9,081,116
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,495,726
2,051,281
829,060
-
-
-
5,722,395
2,051,281
829,060
-
(2,008,334)
-
(200,000)
-
-
2,111,111
-
2,515,557
2,883,263
-
-
-
5,124,930
-
9,370,441
(2,208,334) 16,243,223
28
Performance rights held by Directors and key management personnel
There were no Performance Rights granted to the Managing Director, Executive Director or Non-Executive Directors during the
year.
Balance at
Granted as
Received during
Lapsed/
Held at
Vested and
start of the
remuneration
the year on
forfeited
31 December 2020
exercisable at 31
year
exercise of options
or date of
resignation
December 2020
Non-Executive Directors
Mr Michael Bohm
100,000
Mr Raymond Shorrocks
(Appointed 30 June 2020)
Mr Shaun Hardcastle
(Appointed 30 June 2020)
-
-
Dr Oliver Kreuzer
(Resigned 30 June 2020)
100,000
Executives
Mr James Merrillees
(resigned 30 June 2020)
700,000
Mr Simon Jackson
(appointed Executive
Director 31 August 2020,
100,000
formerly Non Executive
Director)
Mr Michael Naylor
Ms Susan Field
-
-
Total
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(100,0001)
-
-
(100,0001)
-
-
(350,000)1
350,000 2
(100,0001)
-
-
-
-
-
(650,000)1
350,000
-
-
-
-
-
-
-
-
1 650,000 performance rights from tranche 2 were not achieved and were cancelled on 15 January 2020
2 Subsequent to year end 350,000 share are to be issued pertaining to Class A and B performance rights issued to former Director
James Merrillees with the hurdles required for Class A and B Performance Rights issued during the 2019 financial period having
been met.
29
Unlisted options held by Directors and key management personnel
Grant
Date
Date of
Expiry
Fair
Value
Exercise
Price
Issued
Balance
1 Jan
2020
Exercised Balance
31 Dec
2020
22/09/2020 22/09/2023 $0.1458
$0.08
22/09/2020 22/09/2023 $0.1458
$0.08
22/09/2020 22/09/2023 $0.1458
$0.08
22/09/2020 22/09/2023 $0.1458
$0.08
22/09/2020 22/09/2023 $0.1458
$0.08
-
-
-
-
-
2,000,0001
2,000,0001
2,000,0001
2,000,0001
2,000,0001
-
-
-
-
-
Michael
Bohm
Raymond
Shorrocks
Shaun
Hardcastle
Simon
Jackson
Michael
Naylor
Total
1 No consideration is paid on issue of Options.
2019
There were no options granted to KMPs as compensation in prior period.
Vested
and
Exercisable
31 Dec
2020
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
10,000,000
10,000,000
10,000,000
30
Performance Rights
Subject to the vesting criteria being met, directors will be entitled to exercise the number of performance rights vesting and be
issued with a corresponding number of ordinary shares in the Company.
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
p
e
h
t
g
n
i
r
u
d
d
e
t
n
a
r
g
)
$
(
1
r
a
e
y
Year of grant
d
e
d
r
a
w
a
.
o
n
l
a
t
o
T
e
t
a
d
d
r
a
w
A
e
t
a
d
g
n
i
t
s
e
V
e
t
a
d
y
r
i
p
x
E
e
c
n
a
m
r
o
f
r
e
p
f
o
e
u
a
v
l
r
i
a
F
)
$
(
e
t
a
d
d
r
a
w
a
t
a
t
h
g
i
r
e
c
i
r
p
e
s
i
c
r
e
x
E
/
d
e
l
l
e
c
n
a
c
/
d
e
s
p
a
l
.
o
N
r
a
e
y
g
n
i
r
u
d
d
e
t
i
e
f
r
o
f
Mr Bohm
2018
100,0001
25 May 18 NA
15 Jan 20
0.19
Nil
(100,000)2
Mr Jackson
2018
100,0001
25 May 18 NA
15 Jan 20
0.19
Nil
(100,000)2
Dr Kreuzer
2018
100,0001
25 May 18 NA
15 Jan 20
0.19
Nil
(100,000)2
Mr Merrillees
2018
350,0001
25 May 18 NA
15 Jan 20
0.19
Nil
(350,000)2
2019
175,0001, 3
27 May 19 NA
31 Dec 20
0.05
Nil
2019
175,0001, 3
27 May 19 NA
31 Dec 20
0.05
Nil
Total
1,000,000
-
-
(650,000)2
r
a
e
y
g
n
i
r
u
d
d
e
t
n
a
r
g
.
o
N
-
-
-
-
-
-
-
f
o
e
u
a
v
l
l
a
t
o
T
-
-
-
-
-
-
-
d
e
s
i
n
g
o
c
e
r
t
n
u
o
m
A
)
$
(
d
o
i
r
e
p
g
n
i
t
s
e
v
n
o
d
e
s
a
b
0
2
0
2
n
i
78
78
78
274
2,176
1,388
4,072
1.
The total value has been determined using management’s estimates and judgments, applying weighted probabilities to
determine the most likely outcome of the vesting criteria that will be met during the vesting period and multiplying the
quantity of rights expected to vest by the fair value at award date. These estimates were made based on how the company
has historically performed relative to the peer Company and future considerations. The total value attributable to each key
management personnel is first determined and then expensed evenly over the vesting period (herein the period between
the Award date and Expiry date) and thus only a portion is recognised in the current period.
650,000 performance rights from tranche 2 were not achieved and were cancelled on 15 January 2020.
These performance rights were not cancelled, as the performance hurdles were achieved and shares are to be issued
2.
3.
subsequent to 31 December 2020.
31
Employment contracts of Directors and senior executives
Mr Simon Jackson, Executive Director, has an employment contract with the Company that specifies his employment as an
Executive Director and provides for an annual review of remuneration. Mr Jackson received a fixed annual based remuneration of
$131,400 (inclusive of superannuation). Prior to his executive appointment on 30 August 2020, Mr Jackson was a Non-Executive
Director for the Company.
Mr Jackson is required to give the Company is required to give the Company 3 months written notice and the Company is
required to give Mr Jackson 3 months’ notice to terminate the contract or payment in lieu.
The Company has an agreement with Blue Leaf Corporate Pty Ltd, a company associated with Mr Naylor, which commenced on
15 January 2018 for the provision of company secretarial and financial management services. Mr Naylor is required to give the
Company 90 days’ notice to terminate the contract and the Company is required to give Mr Naylor 90 days’ notice to terminate
the contract or payment in lieu.
Mr James Merrillees, previously Managing Director, had an employment contract with the Company that specified duties and
obligations to be fulfilled and provides for an annual review of remuneration. Mr Merrillees received a fixed annual based
remuneration of $246,375 (inclusive of superannuation).
Mr Merrillees was required to give the Company a minimum of six weeks’ notice to terminate the agreement and the Company
was required to give Mr Merrillees three months’ notice to terminate the contract or payment in lieu.
Mr Merrillees resigned as Managing Director effective 30 June 2020 and as an employee effective 30 September 2020.
Loans to key management personnel
There were no loans to key management personnel of the Company, including their personally related parties, as at 31 December
2020 or 31 December 2019.
Other transactions with key management personnel
Mr Hardcastle is a Partner of the following related party which transacted with the Company.
Entity
Services provided
2020
2019
HWL Ebsworth
Company secretarial and financial management
services
*Amount owing at 31 December 2020, $1,012 and at 31 December 2019 $Nil.
$49,587.50*
-*
There were no other transactions with key management personnel.
Voting and comments made at the Company’s last Annual General Meeting
Cygnus received a 99.98% “yes” votes on its Remuneration Report for the year ended 31 December 2019. The Company received
no specific feedback on its Remuneration Report at the Annual General Meeting.
END OF REMUNERATION REPORT
32
Meetings of directors
During the financial year, six meetings of directors were held and attendances by each director during the year were as follows:
Director’s names
Number attended
Number eligible to attend
Michael Bohm
Simon Jackson
Ray Shorrocks
Shaun Hardcastle
James Merrillees
(Resigned 30 June 2020)
Dr Oliver Kreuzer
(Resigned 30 June 2020)
5
5
1
1
4
4
5
5
1
1
4
4
Given the size of the Board the Company has decided that there are no efficiencies to be gained from forming separate
committees.
Share options and performance rights
There are 29,500,000 share options on issue (2019: Nil) and there were 350,000 performance rights on issue (2019: 350,000) at
the date of this report.
Indemnifying officers
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer of the Company
shall be indemnified out of the property of the Company against any liability incurred by him in his capacity as officer or agent of
the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending
any proceedings, whether civil or criminal. The terms of the policy prevent disclosure of the amount of the premium payable and
the level of indemnification under the insurance contract.
Indemnifying of auditors
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer to the extent
permitted by law, the Company has agreed to indemnify its auditors, Grant Thornton, as part of the terms of its audit
engagement agreement, against claims by third parties arising from the audit (for an unspecified amount). No payments have
been made to indemnify Grant Thornton to the date of this report.
33
Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit services
During the year, related practices to Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain other services in
addition to their statutory audit duties. The Board has considered the non-audit services provided during the year by the auditor
and is satisfied that the provision of those non-audit services during the year is compatible with, and did not compromise, the
auditor independence requirements of the Corporations Act 2001 for the following reasons:
•
•
all non-audit services were subject to the corporate governance procedures adopted by the Company and have been
reviewed by the Board of Directors to ensure they do not impact upon the impartiality and objectivity of the auditor
the non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting
in a management or decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing
risks and rewards
The total remuneration for audit and non-audit services provided during the prior and current financial years is set out in note 10
of the financial statements.
Auditor’s independence declaration
The lead auditor’s independence declaration for the year ended 31 December 2020 has been received and is attached to this
Directors’ Report.
This report is made in accordance with a resolution of the directors.
Simon Jackson
Executive Director
Dated in Perth this 31 day of March 2021.
Notes
1.
2.
Refer ASX announcement on the said date for full details of these exploration results. Cygnus is not aware of any new
information or data that materially affects the information included in the said announcement.
Information on historical results from the Stanley Project, including JORC Code Table 1 information, is contained in the
Independent Technical Assessment Report within Cygnus’ Prospectus dated 22 November 2017. Cygnus is not aware of
any new information or data that materially affects the information included in the Prospectus.
34
Competent Persons Statement
The information in this annual report that relates to Exploration Results is based on information and supporting documentation
compiled by Mr James Merrillees, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy.
Mr Merrillees was previously the Managing Director up until 30 June 2020 and a previous employee of Cygnus and holds
shares in the Company.
Mr Merrillees has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Merrillees consents to the inclusion in this annual report of the
matters based on this information in the form and context in which it appears.
Forward Looking Statement
This report may contain certain forward-looking statements and projections regarding estimated, resources and reserves;
planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives.
Such forward looking statements/ projections are estimates for discussion purposes only and should not be relied upon. They are
not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are
beyond the control of Cygnus Gold Limited. The forward-looking statements/projections are inherently uncertain and may
therefore differ materially from results ultimately achieved.
Cygnus Gold Limited does not make any representations and provides no warranties concerning the accuracy of the projections,
and disclaims any obligation to update or revise any forward-looking statements/projects based on new information, future
events or otherwise except to the extent required by applicable laws. While the information contained in this report has been
prepared in good faith, neither Cygnus Gold or any of its directors, officers, agents, employees or advisors give any
representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information,
opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of Cygnus
Gold Limited, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect,
express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information
or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever
arising, from the use of this report.
35
Central Park, Level 43
152-158 St Georges Terrace
Perth WA 6000
Correspondence to:
PO Box 7757
Cloisters Square
Perth WA 6000
T +61 8 9480 2000
F +61 8 9322 7787
E info.wa@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Cygnus Gold Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Cygnus
Gold Limited for the year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L A Stella
Partner – Audit & Assurance
Perth, 31 March 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
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Liability limited by a scheme approved under Professional Standards Legislation.
36
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2020
REVENUE
Other income
EXPENSES
Audit and accounting
Borrowing costs
Consultants and contractors
Corporate costs
Depreciation and amortisation
Depreciation on right of use assets
Employee benefits expense
Exploration and evaluation written off
Exploration and evaluation costs
Interest expense of lease liability
Listing and compliance
Share based payments – unlisted options
Share based payments – performance rights
Office rental & outgoings
Travel and accommodation
Results from operating activities
Finance income
Loss before income tax
Income tax expense
Loss after income tax for the year
Other comprehensive loss
Total comprehensive loss for the year, net of tax
Notes
2020
$
2019
$
3
8.3
18
19
17
7
8.3
8.4
20
434,685
434,685
(30,617)
(136)
(2,374,074)
(136,393)
(41,157)
(6,192)
(261,350)
(3,985,457)
(55,384)
(1,354)
(69,921)
(1,166,720)
(7,676)
(23,196)
(114)
208,098
208,098
(37,122)
-
(86,300)
(143,263)
(42,869)
-
(220,272)
(437,351)
(8,872)
-
(50,833)
-
(29,442)
(41,364)
(4,432)
(8,159,741)
(1,102,120)
(7,725,056)
4,626
(7,720,430)
-
(894,022)
23,105
(870,917)
-
(7,720,430)
(870,917)
-
-
(7,720,430)
(870,917)
Loss per share attributable to equity holders of the Company:
Basic and diluted loss per share (cents per share)
9
(9.49)
(1.42)
This statement above should be read in conjunction with the Notes to the Financial Statements.
37
Consolidated Statement of Financial Position
As at 31 December 2020
Notes
2020
$
2019
$
ASSETS
Current
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration & evaluation
Property, plant and equipment
Right of Use Assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Total current liabilities
Non-current liabilities
Provisions
Lease liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserves
Accumulated losses
TOTAL EQUITY
4
5
17
18
19
6
7
7
8
8.1
3,385,934
39,580
3,425,514
-
52,674
68,119
120,793
3,546,307
97,006
3,369
13,087
113,462
-
56,019
56,019
169,481
3,376,826
9,130,519
4,313,389
(10,067,082)
3,376,826
1,774,659
161,461
1,936,120
3,445,813
68,298
-
3,514,111
5,450,231
338,076
18,952
-
357,028
8,830
-
8,830
365,858
5,084,373
7,427,596
28,129
(2,371,352)
5,084,373
This statement above should be read in conjunction with the Notes to the Financial Statements.
38
Consolidated Statement of Changes in Equity
For the year ended 31 December 2020
Other
Share Based
Share
Contributed
Payment
Accumulated
s
e
t
o
N
Capital
Equity
Reserve
Losses
Total Equity
$
$
$
$
$
Balance at 1 January 2019
7,128,373
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners
Issue of share capital
Share issue expense
Transfer of reserve upon forfeit of
performance rights
Share based payment expensed
Balance at 31 December 2019
Balance at 1 January 2020
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners
Issue of share capital
Share issue expense
Transfer of reserve upon forfeit of
performance rights
Share based payment expensed –
Performance Rights
Share based payment expensed –
Unlisted Options
-
-
-
8
8
302,710
(3,487)
-
-
7,427,596
7,427,596
-
-
-
2,587,750
(884,827)
-
-
-
8
8
8.4
8.4
8.2
8.3
Balance at 31 December 2020
9,130,519
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,596
(1,504,344)
5,626,625
-
-
-
-
-
(870,917)
(870,917)
-
-
(870,917)
(870,917)
-
-
302,710
(3,487)
(3,909)
3,909
-
29,442
-
29,442
28,129
(2,371,352)
5,084,373
28,129
(2,371,352)
5,084,373
-
-
-
-
-
(7,720,430)
(7,720,430)
-
-
(7,720,430)
(7,720,430)
-
-
2,587,750
(884,827)
(24,700)
24,700
7,676
4,302,284
-
-
-
7,676
4,302,284
4,313,389
(10,067,082)
3,376,826
This statement above should be read in conjunction with the Notes to the Financial Statements.
39
Consolidated Statement of Cash Flows
For the year ended 31 December 2020
Notes
2020
$
2019
$
Operating activities
Payments to suppliers and employees
(554,418)
(863,144)
Payments for exploration expenditure
Interest received
Other income
Net cash used in operating activities
Investing activities
-
5,422
434,685
(114,311)
(5,983)
24,445
208,098
(636,584)
3
11
Payments for acquisition of mining tenements
(26,840)
(14,574)
Payments for capitalised exploration expenditure
(2,642,143)
(1,466,092)
Purchase of property plant and equipment
EIS Grant-Co-funded Exploration Drilling Program
Funds received for joint venture
(25,533)
51,952
1,790,187
(8,815)
89,362
-
Net cash used in investing activities
(852,377)
(1,400,119)
Financing activities
Proceeds from share issued
Costs of shares issued
Net cash provided by financing activities
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of year
8
8
4
2,587,750
(9,787)
2,577,963
1,611,275
1,774,659
3,385,934
302,710
(3,487)
299,223
(1,737,480)
3,512,139
1,774,659
This statement above should be read in conjunction with the Notes to the Financial Statements.
40
Notes to the Financial Statements
1.
Company information
The financial statements of Cygnus Gold Limited and its’ subsidiaries, together referred to as the Group or Cygnus for the year
ended 31 December 2020 and authorised for issue in accordance with a resolution of the directors on 31 March 2021.
Cygnus is a for-profit Company incorporated and domiciled in Australia whose shares are publicly traded on the Australian
Securities Exchange. The address of its registered office and its principal place of business is Ground Floor, 24 Outram Street,
West Perth, WA 6005.
The nature of the operations and principal activities include the exploration for gold and base metals deposits in Western
Australia and are described further in the Directors’ Report.
2.
General information and statement of compliance
The financial report is a general purpose financial report, which has 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.
The financial report has been prepared on a historical cost basis.
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
3. Other income
Joint venture management fee
COVID Cashflow Boost
Other Income
2020
$
334,685
100,000
434,685
2019
$
208,098
-
208,098
41
4. Cash and cash equivalents
Cash at bank and on hand
Short-term deposits
Cash and cash equivalents
2020
$
785,934
2,600,000
3,385,934
2019
$
774,659
1,000,000
1,774,659
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods
of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the
respective short-term deposit rates.
5.
Trade and other receivables
Trade and other receivables
Gold Road funds receivable
Prepayments
2020
$
33,312
-
6,268
39,580
2019
$
45,979
16,370
99,112
161,461
All amounts are short-term. The carrying values of trade and other receivables are considered to be a reasonable approximation
of fair value.
6.
Trade and other payables
Trade and other payables
2020
$
97,006
97,006
2019
$
338,076
338,076
All amounts are short-term. The carrying values of trade and other payables are considered to be a reasonable approximation of
fair value
42
7.
Lease liabilities
Current
Non Current
Amount recognised in profit or loss
Interest expense incurred on lease liability
2020
$
13,087
56,019
69,106
1,354
Lease Liability Maturity
Within 1 Year
1 – 2 years
2 – 3 Years
3 – 4 Years
4 – 5 Years
15,931
16,384
16,851
17,331
10,276
Lease payments
Finance Charges
2019
$
-
-
-
-
Total
76,773
(2,844)
(2,234)
(1,574)
(863)
(152)
(7,667)
Net Present Value
13,087
14,150
15,277
16,468
10,124
69,106
8.
Contributed equity and reserves
The share capital of Cygnus consists only of fully paid ordinary shares; the shares do not have a par value. All shares are equally
eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ meeting of the Company.
Shares issued and fully paid:
Beginning of the year
Share issue
Share issue costs
2020
Shares
2019
Shares
2020
$
2019
$
68,251,081
60,683,341
7,427,596
7,128,373
39,819,017
7,567,740
2,587,750
302,710
-
-
(884,827)1
(3,487)
Total contributed equity at 31 December
108,070,098
68,251,081
9,130,519
7,427,596
1 During the period the Company issue 6,000,000 unlisted options to sponsoring brokers which have been collectively valued
using Black-Scholes option pricing formula valuing them at $875,040 which have been treated as share issue expenses.
Each share has the same right to receive dividend and the repayment of capital and represents one vote at the shareholders’
meeting of Cygnus Gold Limited.
43
8.1 Reserves
Share based payments reserve
Balance at the beginning of the period
Movement in share based payments reserve
Notes
2020
$
2019
$
28,129
2,596
Share based payment expense – Unlisted Option
8.2, 8.3
4,302,284
-
Share based payment expense – Performance rights - Key Management
8.4
7,676
29,442
Personnel
Transfer out of reserve upon:
Cancellation of performance rights
Balance at the end of the period
8.2 Share options
(24,700)
4,313,389
(3,909)
28,129
As approved by shareholders at General Meeting of Shareholders held on 7 September 2020 and on 22 September 2020 the
Company issued a total of 29,500,000 unlisted options on the terms and conditions as detailed below to a combination of
Directors and advisors.
The following table illustrates option movement during the year ended 31 December 2020.
Grant Date
Date of
Expiry
Exercise
Balance
Granted
Exercised
Balance
Vested and
Price
1 January
31 December
Exercisable
22/09/20
22/09/23
$
$0.08
2020
-
29,500,000
Total
29,500,000
2020
29,500,000
29,500,000
29,500,000
29,500,000
-
-
The fair value at grant date stated in the table for remaining options was determined using the Black-Scholes valuation
methodology for options granted and takes into account the following inputs:
Number
Fair value
Option
Risk Free
Notes
Grant date
& Vesting
date
Expiry date
of option
exercise
Interest
Expected
at grant
date
$
price
$
Rate
%
Volatility
%
Total
Value
$
29,500,000
22/09/20
22/09/23
0.1458
0.08
0.28
101 8.3
4,302,284
44
8.3 Share based payments – Unlisted options
Share based payment expense – Unlisted Option - Share issue expenses
Share based payment expense – Unlisted Options - Consultants
2020
$
875,040
2,260,5241
Share based payment expense – Unlisted options – Key Management Personnel
1,166,720
4,302,284
2019
$
-
-
-
-
1 The fair value determined for these Options is Included in consultants and contractor expenses for the year of $2,374,074 as
disclosed in the Statement of Profit or Loss and Other Comprehensive Income on Page 37.
8.4 Performance rights
The table below discloses the number of performance rights granted, vested or lapsed during the year. Each performance rights
converts to one ordinary share in the Company upon satisfaction of the performance conditions linked to the rights. The rights do
not carry any other privileges. The fair value of the performance rights granted is determined based on the number of rights
awarded multiplied by the share price of the Company on the date awarded.
Management has assessed the most probable outcomes to be achieved by the expiry date and has used weighted probabilities to
determine the value of the rights accordingly. The expense recorded as share based payments is recognized straight-line over the
vesting period (in this case, from the award date to the expiry).
1
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Mr Bohm
2018 100,0001 25 May 18 NA 15 Jan 20 0.19
Nil
(100,000)2 -
Mr Jackson
2018 100,0001 25 May 18 NA 15 Jan 20 0.19
Nil
(100,000)2 -
Dr Kreuzer
2018 100,0001 25 May 18 NA 15 Jan 20 0.19
Nil
(100,000)2 -
Mr Merrillees
2018 350,0001 25 May 18 NA 15 Jan 20 0.19
Nil
(350,000)2 -
2019 175,0001, 3 27 May 19 NA 31 Dec 20 0.05
2019 175,0001, 3 27 May 19 NA 31 Dec 20 0.05
Total 1,000,000
Nil
Nil
-
-
-
-
(650,000)2 -
-
-
-
-
-
-
-
n
o
d
e
s
a
b
0
2
0
2
n
i
d
e
s
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)
$
(
)
$
(
t
n
u
o
m
A
78
78
78
274
2,791
4,377
7,676
45
8.4 Performance rights continued
1 The total value has been determined using management’s estimates and judgments, applying weighted probabilities to
determine the most likely outcome of the vesting criteria that will be met during the vesting period and multiplying the
quantity of rights expected to vest by the fair value at award date. These estimates were made based on how the company has
historically performed relative to the peer Company and future considerations. The total value attributable to each key
management personnel is first determined and then expensed evenly over the vesting period (herein the period between the
Award date and Expiry date) and thus only a portion is recognised in the current period.
2 650,000 performance rights from tranche 2 were not achieved and were cancelled on 15 January 2020.
3 These performance rights were not cancelled, as the performance hurdles were achieved and shares issued subsequent to 31
December 2020.
9.
Loss per share
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the Company as the
numerator (i.e. no adjustments to loss were necessary in 2020).
2020
$
2019
$
Net loss attributable to ordinary equity holders of the Company
(7,720,430)
(870,917)
Weighted average number of ordinary shares outstanding during the year used in
calculating basic and diluted loss per share
81,336,028
61,265,475
Basic and diluted loss per share (cents per share)
(9.49)
(1.42)
10. Auditor remuneration
Audit and review of financial statements
2020
$
2019
$
Auditors of Cygnus Gold Limited - Grant Thornton Audit Pty Ltd
30,617
37,122
Non-audit services
Tax compliance
Total auditor’s remuneration
4,650
5,800
35,267
42,922
46
11. Reconciliation of cashflows from operating activities
Notes
2020
$
2019
$
Cash flows from operating activities
Loss for the period
Depreciation and amortisation
Depreciation on right of use assets
Exploration and evaluation impairment and costs
Share based payment expense – Unlisted Options - Consultants
Share based payment expense – Unlisted options - Key Management
Personnel
Share based payment expense – Performance rights - Key Management
Personnel
Transfer of reserve upon forfeit of performance rights
8.3
8.3
8.4
Other
Net changes in working capital:
Change in trade and other receivables
Change in employee benefits provisions
Change in trade and other payables
Net cash used in operating activities
(7,720,430)
(870,917)
41,157
42,869
6,192
-
3,985,487
446,223
2,260,524
29,442
1,166,720
7,676
24,700
(2,330)
-
-
-
121,881
(257,742)
(24,413)
(1,569)
18,525
(24,890)
(114,311)
(636,584)
47
12. Related Party Transactions
a) Names and positions of key management personnel in office at any time during the financial year:
Michael Bohm
Simon Jackson
Non-Executive Chairman
Executive Director (Appointed Executive Director on 31 August 2020, previously Non-Executive Director)
Raymond Shorrocks
Non-Executive Director (Appointed 30 June 2020)
Shaun Hardcastle
Non-Executive Director (Appointed 30 June 2020)
Oliver Kreuzer
Non-Executive Director (Resigned 30 June 2020)
James Merrillees
Managing Director (Resigned 30 June 2020)
Michael Naylor
Joint Company Secretary
Susan Field
Joint Company Secretary (Appointed 23 December 2020)
b) Key management personnel remuneration
Short term employee benefits
Post-employment benefits
Share based payments (non-cash)
Total
2020
$
372,556
19,111
1,462,472
1,854,139
2019
$
461,392
36,255
29,442
527,089
Individual Directors and executive’s compensation disclosures
Information regarding individual directors and executive’s compensation and some equity instruments disclosures as required by
Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report on pages 21 to 32.
Apart from the details disclosed in this note, no Director has entered into a material contract with the Company since the end of
the previous financial year and there were no material contracts involving directors’ interests existing at the end of the period.
12.1 Other related party transactions
Key management of the Company are the executive members of Cygnus’s Board of Directors and members of the Executive
Council. All transactions with other related parties are made on normal commercial terms and conditions and at deemed market
–
rates.
Mr Hardcastle is a Partner of the following related party which transacted with the Company.
Entity
Services provided
HWL Ebsworth
Legal services
2020
$49,587.50*
2019
-*
*Amount owing at 31 December 2020, $1,012 and at 31 December 2019 $Nil.
48
12.1 Other related party transactions
continued
Mr Naylor is a Director of the following related party entity which transacted with the Company.
–
Entity
Services provided
Blue Leaf Corporate Pty Ltd
Company secretarial and financial management
services
*Amount owing at 31 December 2020, $7,500 and at 31 December 2019 $6,000.
2020
2019
$81,000*
$78,000*
13. Subsidiaries
Name of Entity
Parent Entity
Country of Incorporation
2020
2019
Cygnus Gold Limited
Australia
100
100
Subsidiary
Deneb Resources Pty Ltd
Cygnus Gold (Projects) Pty Ltd
Cygnus (JV Projects) Pty Ltd
Australia
Australia
Australia
100
100
100
100
100
100
49
14. Parent entity disclosure
Result of the parent entity
Loss for the year
Other comprehensive expenses
2020
2019
7,722,029
870,917
-
-
Total Comprehensive loss for the year
7,722,029
870,917
Financial Position of the parent entity at year end:
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total Liabilities
3,410,747
1,936,120
116,005
3,514,111
3,526,752
5,450,231
93,907
357,028
56,019
8,830
149,926
365,858
Total equity of the parent entity comprising of:
3,376,826
5,084,373
Contributed equity
Share option reserve
Accumulated losses
Total equity
9,130,519
7,427,596
4,313,389
28,129
(10,067,082)
(2,371,352)
3,376,826
5,084,373
50
15. Financial Risk Management
Credit risk
The carrying amount of the Group’s financial assets represents the Group’s maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Trade and other receivables
Notes
4
5
2020
$
3,385,934
39,580
2019
$
1,774,659
161,461
Risks associated with market risk, credit risk and liquidity risk are not considered material with respect to the above items.
The Group’s cash and cash equivalents and term deposits at call are held with bank and financial institution counterparties, which
are rated at least AA-, based on rating agency S&P Global Ratings.
Trade and other receivables include, accrued interest receivable from Australian accredited banks, JV receivables and tax
amounts receivable from the Australian Taxation Office. The Group has elected to measure loss allowances for trade and other
receivables at an amount equal to the 12 month Expected Credit Loss (ECL). When determining the credit risk of a financial asset,
the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This
includes both the quantitative and qualitative information and analysis, based on the Group’s historical experience and informed
credit assessment, including forward-looking information. The Group assumes that the credit risk on a financial asset has
increased significantly if it is more than 30 days past due. The Group considers a financial asset to be in default when the financial
asset is more than 90 days past due.
As at 31 December 2020, no receivables were more than 30 days past due. No receivables are considered to have a material
credit risk.
Liquidity Risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities.
The Group manages liquidity risk by monitoring forecast cash flows, only investing surplus cash with major financial institutions;
and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The Board meets on a regular basis to analyse financial risk exposure and evaluate treasury management strategies in the context
of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks to assist the Group in
managing its cash flows. Financial liabilities are expected to be settled within 12 months.
Notes
Carrying Amount $ Contractual Cash Flows $
6 Months or less $
2020 Trade and other payables
2019 Trade and other payables
6
6
97,006
338,076
97,006
338,076
97,006
338,076
51
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
Currency Risk
The Group is not exposed to significant foreign currency risk on transactions that are denominated in a currency other than the
respective functional currencies of the Group entities being the Australian Dollar (AUD).
Interest Rate Risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s cash. Cash includes funds held
in term deposits and cheque accounts during the year, which earned variable interest at rates ranging between 0.05% and 0.62%
(2019: 0.9 % and 1.5%), depending on the bank account type and account balances.
The Group has no loans or borrowings.
At the reporting date the interest rate sensitivity for the Group interest-bearing financial instrument was:
Variable rate financial assets
Carrying Amount 31
Carrying Amount 31
December 2020
December 2019
$
3,385,934
$
1,774,659
A change of 100 basis points in the interest rates at the end of the reporting period would have increased (decreased) profit and
loss by the amounts shown below.
The analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2020.
100bp increase
100bp decrease
3,386
1,775
(3,386)
(1,775)
Capital management policies and procedures
The Board policy is to maintain a capital base to maintain investor, creditor and market confidence and to sustain future
development of the business. Capital consists of ordinary shares and retained earnings (or accumulated losses). The Board of
Directors manages the capital of the Group to ensure that the Group can fund its operations and continue as a going concern.
There are no externally imposed capital requirements.
52
16. Commitments and contingent assets and liabilities
Due to the nature of the Group’s operations in exploring and evaluating areas of interest, it is difficult to accurately forecast the
nature or amount of future expenditure, although it will be necessary to incur expenditure in order to retain present interests in
mineral tenements.
Annual rent on exploration licenses held by the Group are $201,174 (2019: $205,333) with a minimum exploration commitment
of $1,149,000 (2019: $1,303,500) per annum.
The Group is not aware of any other contingent commitments.
17. Exploration and evaluation
Opening balance
Expenditure incurred during the year
Exploration and evaluation expenditures written off
Reimbursement from Farm in
Exploration expenditure State Government Co-Funded exploration
drilling support
Closing balance
Impairment
2020
$
3,445,813
3,237,204
(3,985,457)
(2,645,608)
(51,952)
2019
$
2,555,261
2,856,946
(437,351)
(1,411,851)
(117,192)
-
3,445,813
Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded that
capitalised expenditure is unlikely to be recovered by sale or future exploitation. At each reporting date the Group undertakes an
assessment of the carrying amount of its exploration and evaluation assets. During the year indicators of impairment were
identified on certain exploration and evaluation assets in accordance with AASB 6 Exploration for and Evaluation of Mineral
Resources. As a result of this review, an impairment loss of $3,985,457 has been recognised in relation to areas of interest where
the directors have concluded that capitalised expenditure is unlikely to be recovered by sale or future exploitation.
53
18. Property, plant and equipment
Assets at cost
Accumulated depreciation
Carrying value 31 December
2020
$
165,524
(112,850)
52,674
2019
$
139,991
(71,693)
68,298
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current year, is as follows:
IT equipment
Field equipment
Motor vehicles
$
$
$
Total
$
10,610
4,252
(10,174)
4,688
13,025
15,599
(17,388)
11,236
44,663
68,298
5,682
25,533
(13,595)
(41,157)
36,750
52,674
Balance at 1 January 2020
Additions
Depreciation expense
Balance at 31 December 2020
19. Right of use assets
On initial recognition
Right of use assets at cost
Depreciation for the period
Accumulated depreciation
Net carrying amount
Amount recognised in profit or loss
Depreciation expense on right to use assets
2020
$
74,311
74,311
6,192
6,192
68,119
6,192
2019
$
-
-
-
-
-
-
54
20.
Income tax expense
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax
rate is at 27.5% (2019: 27.5%) and the reported tax expense in profit or loss are as follows:
Accounting loss before tax
At Australia’s statutory income tax rate of 26.0% (2019: 27.5%)
Expenditure not allowed for income tax purposes
Non deductible Option expense
Deferred income tax at balance date relates to the following:
Deferred tax assets not brought to account
Income tax expense attributable to entity
2020
$
2019
$
7,720,430
870,917
(2,007,311)
(239,502)
(24,876)
893,079
9,082
-
1,139,108
230,420
-
-
Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been
recognised are attributable to the following:
Unrecognised deferred tax asset losses
Unrecognised deferred tax asset other
Unrecognised deferred tax liability as a result of other
21. Operating segments
1,804,093
1,646,309
74,048
87,286
(19,376)
(975,111)
1,858,765
758,484
The Group has identified its operating segments based on the internal reports that are reviewed and used by the directors (chief
operating decision makers) in assessing performance and determining the allocation of resources.
The Group operates in one segment being Exploration and Evaluation of Minerals in Western Australia.
55
22. Significant accounting policies
22.1 New accounting standards and interpretations
The Group 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 period. Any new or Amended Standards or Interpretations that are
not mandatory have not been early adopted.
Accounting Policy - AASB 16 Leases
During the year the Group entered into a sub-lease for part of office space located at Ground Floor, 24 Outram Street, West Perth
and as such has been required to account for this in accordance with AASB 16: Leases for the first time.
This note describes the nature and effect of the adoption of AASB 16: Leases on the Group’s financial statements and discloses
the new accounting policies that have been applied from 1 August 2020 being the initial date covered by the sub lease.
The Group as lessee
At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset
and a corresponding liability are recognised by the Group where the Group is a lessee. However, all contracts that are classified
as short-term leases (i.e. leases with a remaining lease term of 12 months or less and leases of low-value assets are recognised as
an operating expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The
lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses
incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows;
-
-
-
-
-
-
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement
date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of options to terminate the lease.
Impact of standards issued but not yet applied:
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2020
reporting periods and have not been early adopted by the Group.
These standards are not expected to have a material impact on the entity in the current or future reporting periods and on
foreseeable future transactions.
22.2 Functional and presentation currency
The functional currency of Group is measured using the currency of the primary economic environment in which that entity
operates. The financial statements are presented in Australian dollars which is the parent entity’s functional and presentation
currency.
56
22.3 Parent entity disclosure
The financial information for the parent entity, Cygnus Gold Limited, disclosed in Note 14 has been prepared on the same basis as
the consolidated financial statements, other than investments in subsidiaries, which have been recorded at cost less
impairments.
22.4 Principles of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of significant controlled entities
(subsidiaries) at year end is contained in note 13. The financial statements of subsidiaries are prepared for the same reporting
period a the parent entity, using consistent accounting policies.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
22.5 Operating expenses
Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin. Expenditure for
warranties is recognised and charged against the associated provision when the related revenue is recognised.
22.6 Financial instruments
Financial instruments
(cid:4)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:258)(cid:374)(cid:455)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:400)(cid:3)(cid:396)(cid:349)(cid:400)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:381)(cid:374)(cid:286)(cid:3)(cid:286)(cid:374)(cid:410)(cid:349)(cid:410)(cid:455)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:381)(cid:396)(cid:3)(cid:286)(cid:395)(cid:437)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:374)strument
of another entity.
Other receivables
Other receivables, which generally have 30 day terms, are recognised initially at fair value and subsequently carried at amortised
cost using the effective interest method, less an allowance for any estimated shortfall in receipt. An estimate of any shortfall in
(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:393)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:373)(cid:258)(cid:282)(cid:286)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:286)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:258)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:349)(cid:374)(cid:272)(cid:437)(cid:396)(cid:396)(cid:286)(cid:282)(cid:856)(cid:3)(cid:17)(cid:258)(cid:282)(cid:3)(cid:282)(cid:286)(cid:271)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:449)(cid:396)(cid:349)(cid:410)(cid:410)(cid:286)(cid:374)(cid:3)(cid:381)(cid:296)(cid:296)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:349)(cid:282)(cid:286)(cid:374)(cid:410)(cid:349)(cid:302)(cid:286)(cid:282)(cid:856)
Trade and other payables
Liabilities for creditors and other amounts are carried at amortised cost, which is the present value of the consideration to be
paid in the future for goods and services received, whether or not billed to the consolidated entity. The carrying period is dictated
by market conditions but is generally less than 45 days.
Initial recognition and measurement
(cid:38)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:302)(cid:286)(cid:282)(cid:853)(cid:3)(cid:258)(cid:410)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:258)(cid:400)(cid:3)(cid:400)(cid:437)(cid:271)(cid:400)(cid:286)(cid:395)(cid:437)(cid:286)(cid:374)(cid:410)(cid:367)(cid:455)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:282)(cid:3)(cid:258)(cid:410)(cid:3)(cid:258)(cid:373)(cid:381)(cid:396)(cid:410)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:853)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)
(cid:272)(cid:381)(cid:373)(cid:393)(cid:396)(cid:286)(cid:346)(cid:286)(cid:374)(cid:400)(cid:349)(cid:448)(cid:286)(cid:3)(cid:349)(cid:374)(cid:272)(cid:381)(cid:373)(cid:286)(cid:3)(cid:894)(cid:75)(cid:18)(cid:47)(cid:895)(cid:853)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:856)
(cid:100)(cid:346)(cid:286)(cid:3)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:302)(cid:272)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:282)(cid:286)(cid:393)(cid:286)(cid:374)(cid:282)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:859)(cid:400)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:3)(cid:272)(cid:346)(cid:258)(cid:396)(cid:258)(cid:272)(cid:410)(cid:286)(cid:396)(cid:349)(cid:400)(cid:410)ics and
the Group(cid:859)(cid:400)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:373)(cid:856)(cid:3)(cid:116)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:454)(cid:272)(cid:286)(cid:393)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:396)(cid:258)(cid:282)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:258)(cid:271)(cid:367)(cid:286)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:282)(cid:381)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:302)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)
(cid:302)(cid:374)(cid:258)(cid:374)cing component or for which the Group has applied the practical expedient, the Group (cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:258)(cid:410)(cid:3)
its fair (cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:393)(cid:367)(cid:437)(cid:400)(cid:853)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:853)(cid:3)(cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:258)(cid:272)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:400)(cid:856)(cid:3)(cid:100)(cid:396)(cid:258)(cid:282)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:258)(cid:271)(cid:367)(cid:286)(cid:400)(cid:3)(cid:410)hat
57
(cid:282)(cid:381)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:258)(cid:349)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:302)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:373)(cid:393)(cid:381)(cid:374)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)Group has applied the practical expedient are measured at the
transaction price determined under AASB 15.
(cid:47)(cid:374)(cid:3)(cid:381)(cid:396)(cid:282)(cid:286)(cid:396)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:3)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:302)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:282)(cid:3)(cid:258)(cid:410)(cid:3)(cid:258)(cid:373)(cid:381)(cid:396)(cid:410)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:296)air value through OCI, it needs to give rise to cash
(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:858)(cid:400)(cid:381)(cid:367)(cid:286)(cid:367)(cid:455)(cid:3)(cid:393)(cid:258)(cid:455)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:393)(cid:396)(cid:349)(cid:374)(cid:272)(cid:349)(cid:393)(cid:258)(cid:367)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:3)(cid:894)(cid:94)(cid:87)(cid:87)(cid:47)(cid:895)(cid:859)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:393)(cid:396)(cid:349)(cid:374)(cid:272)(cid:349)(cid:393)(cid:258)(cid:367)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:381)(cid:437)(cid:410)(cid:400)(cid:410)(cid:258)(cid:374)(cid:282)(cid:349)(cid:374)(cid:336)(cid:856)(cid:3)(cid:100)(cid:346)(cid:349)(cid:400)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:400)(cid:400)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:296)(cid:286)rred
to as the SPPI test and is performed at an instrument level.
The Group’s (cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:349)(cid:374)(cid:336)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:396)(cid:286)(cid:296)(cid:286)(cid:396)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:346)(cid:381)(cid:449)(cid:3)(cid:349)(cid:410)(cid:3)(cid:373)(cid:258)(cid:374)(cid:258)(cid:336)(cid:286)(cid:400)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:381)(cid:396)(cid:282)(cid:286)(cid:396)(cid:3)(cid:410)(cid:381)(cid:3)(cid:336)(cid:286)(cid:374)(cid:286)(cid:396)(cid:258)(cid:410)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)
(cid:327)(cid:381)(cid:449)(cid:400)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:3)(cid:282)(cid:286)(cid:410)(cid:286)(cid:396)(cid:373)(cid:349)(cid:374)(cid:286)(cid:400)(cid:3)(cid:449)(cid:346)(cid:286)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:272)(cid:381)(cid:367)(cid:367)(cid:286)(cid:272)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:853)(cid:3)(cid:400)(cid:286)(cid:367)(cid:367)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)
assets, or both.
Subsequent measurement
(cid:38)(cid:381)(cid:396)(cid:3)(cid:393)(cid:437)(cid:396)(cid:393)(cid:381)(cid:400)(cid:286)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:400)(cid:437)(cid:271)(cid:400)(cid:286)(cid:395)(cid:437)(cid:286)(cid:374)(cid:410)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:853)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:302)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:296)(cid:381)(cid:437)(cid:396)(cid:3)(cid:272)(cid:258)(cid:410)(cid:286)(cid:336)(cid:381)(cid:396)(cid:349)(cid:286)(cid:400)(cid:855)
•
•
•
•
Financial assets at amortised cost (debt instruments)
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition
(equity instruments)
(cid:38)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. The Group (cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:258)(cid:373)(cid:381)(cid:396)(cid:410)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:272)(cid:381)(cid:400)(cid:410)(cid:3)(cid:349)(cid:296)(cid:3)(cid:271)(cid:381)(cid:410)(cid:346)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:296)(cid:381)(cid:367)(cid:367)(cid:381)(cid:449)(cid:349)(cid:374)(cid:336)(cid:3)
conditions are met:
•
•
(cid:100)(cid:346)(cid:286)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:346)(cid:286)(cid:367)(cid:282)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:349)(cid:374)(cid:3)(cid:258)(cid:3)(cid:271)(cid:437)(cid:400)(cid:349)(cid:374)(cid:286)(cid:400)(cid:400)(cid:3)(cid:373)(cid:381)(cid:282)(cid:286)(cid:367)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:410)(cid:381)(cid:3)(cid:346)(cid:381)(cid:367)(cid:282)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367) assets in order to collect
(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)
(cid:100)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:336)(cid:349)(cid:448)(cid:286)(cid:3)(cid:396)(cid:349)(cid:400)(cid:286)(cid:3)(cid:381)(cid:374)(cid:3)(cid:400)(cid:393)(cid:286)(cid:272)(cid:349)(cid:302)(cid:286)(cid:282)(cid:3)(cid:282)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:400)(cid:381)(cid:367)(cid:286)(cid:367)(cid:455)(cid:3)(cid:393)(cid:258)(cid:455)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:296)
principal and interest on the principal amount outstanding Financial assets at amortised cost are subsequently measured
(cid:437)(cid:400)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:286)(cid:296)(cid:296)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:286)(cid:400)(cid:410)(cid:3)(cid:894)(cid:28)(cid:47)(cid:90)(cid:895)(cid:3)(cid:373)(cid:286)(cid:410)(cid:346)(cid:381)(cid:282)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:400)(cid:437)(cid:271)(cid:361)(cid:286)(cid:272)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:373)(cid:286)(cid:374)(cid:410)(cid:856)(cid:3)(cid:39)(cid:258)(cid:349)(cid:374)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)
(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:282)(cid:286)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:853)(cid:3)(cid:373)(cid:381)(cid:282)(cid:349)(cid:302)(cid:286)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:349)(cid:373)(cid:393)(cid:258)(cid:349)(cid:396)(cid:286)(cid:282)(cid:856)
The Group(cid:859)(cid:400)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)al assets at amortised cost includes trade and other receivables.
Derecognition
(cid:4)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:894)(cid:381)(cid:396)(cid:853)(cid:3)(cid:449)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:258)(cid:393)(cid:393)(cid:367)(cid:349)(cid:272)(cid:258)(cid:271)(cid:367)(cid:286)(cid:853)(cid:3)(cid:258)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:3)Group (cid:381)(cid:296)(cid:3)(cid:400)(cid:349)(cid:373)(cid:349)(cid:367)(cid:258)(cid:396)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:895)(cid:3)(cid:349)(cid:400)(cid:3)(cid:393)(cid:396)(cid:349)(cid:373)(cid:258)(cid:396)(cid:349)(cid:367)(cid:455)(cid:3)
derecognised (i.e., removed from the Group’s sta(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:895)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:855)
•
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(cid:100)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:346)(cid:258)(cid:448)(cid:286)(cid:3)(cid:286)(cid:454)(cid:393)(cid:349)(cid:396)(cid:286)(cid:282)(cid:3)(cid:381)(cid:396)
The Group (cid:346)(cid:258)(cid:400)(cid:3)(cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:296)(cid:286)(cid:396)(cid:396)(cid:286)(cid:282)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:258)(cid:400)(cid:400)(cid:437)(cid:373)(cid:286)(cid:282)(cid:3)(cid:258)(cid:374)(cid:3)(cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:410)(cid:381)(cid:3)(cid:393)(cid:258)(cid:455)(cid:3)(cid:410)(cid:346)(cid:286)
(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:282)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:349)(cid:374)(cid:3)(cid:296)(cid:437)(cid:367)(cid:367)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:381)(cid:437)(cid:410)(cid:3)(cid:373)(cid:258)(cid:410)(cid:286)(cid:396)(cid:349)(cid:258)(cid:367)(cid:3)(cid:282)(cid:286)(cid:367)(cid:258)(cid:455)(cid:3)(cid:410)(cid:381)(cid:3)(cid:258)(cid:3)(cid:410)(cid:346)(cid:349)(cid:396)(cid:282)(cid:3)(cid:393)(cid:258)(cid:396)(cid:410)(cid:455)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:258)(cid:3)(cid:858)(cid:393)(cid:258)(cid:400)(cid:400)-through’ arrangement; and either (a) the
Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset
58
When the Group (cid:346)(cid:258)(cid:400)(cid:3)(cid:410)(cid:396)(cid:258)(cid:374)(cid:400)(cid:296)(cid:286)(cid:396)(cid:396)(cid:286)(cid:282)(cid:3)(cid:349)(cid:410)(cid:400)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:3)(cid:410)(cid:381)(cid:3)(cid:396)(cid:286)(cid:272)(cid:286)(cid:349)(cid:448)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)ws from an asset or has entered into a pass-through arrangement, it
evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the
transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The
transferred asset and the associated liability ar(cid:286)(cid:3)(cid:373)(cid:286)(cid:258)(cid:400)(cid:437)(cid:396)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:258)(cid:3)(cid:271)(cid:258)(cid:400)(cid:349)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:396)(cid:286)(cid:327)(cid:286)(cid:272)(cid:410)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:349)(cid:336)(cid:346)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)Group has
retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Impairment of financial assets
(cid:28)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:286)(cid:282)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:286)(cid:400)(cid:3)(cid:894)(cid:28)(cid:18)(cid:62)(cid:400)(cid:895)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:258)(cid:367)(cid:367)(cid:3)(cid:282)(cid:286)(cid:271)(cid:410)(cid:3)(cid:349)(cid:374)(cid:400)(cid:410)(cid:396)(cid:437)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:346)(cid:286)(cid:367)(cid:282)(cid:3)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:271)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)h an
(cid:258)(cid:367)(cid:367)(cid:381)(cid:449)(cid:258)(cid:374)(cid:272)(cid:286)(cid:856)(cid:3)(cid:28)(cid:18)(cid:62)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)(cid:381)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:296)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:271)(cid:286)(cid:410)(cid:449)(cid:286)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:282)(cid:437)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:258)(cid:272)(cid:272)(cid:381)(cid:396)(cid:282)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:410)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:258)(cid:367)(cid:367)(cid:3)(cid:410)(cid:346)(cid:286)
(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)Group expects to receive, discounted at an approximation of the original effective interest rate. The expected
(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:258)(cid:367)(cid:286)(cid:3)(cid:381)(cid:296)(cid:3)(cid:272)(cid:381)(cid:367)(cid:367)(cid:258)(cid:410)(cid:286)(cid:396)(cid:258)(cid:367)(cid:3)(cid:346)(cid:286)(cid:367)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:374)(cid:346)(cid:258)(cid:374)(cid:272)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:336)(cid:396)(cid:258)(cid:367)(cid:3)(cid:410)(cid:381)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)
contractual terms.
(cid:28)(cid:18)(cid:62)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:449)(cid:381)(cid:3)(cid:400)(cid:410)(cid:258)(cid:336)(cid:286)(cid:400)(cid:856)(cid:3)(cid:38)(cid:381)(cid:396)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:454)(cid:393)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:374)(cid:381)(cid:410)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:302)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:396)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:400)(cid:349)(cid:374)ce
initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months
(a 12-(cid:373)(cid:381)(cid:374)(cid:410)(cid:346)(cid:3)(cid:28)(cid:18)(cid:62)(cid:895)(cid:856)(cid:3)(cid:38)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:381)(cid:400)(cid:286)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:286)(cid:454)(cid:393)(cid:381)(cid:400)(cid:437)(cid:396)(cid:286)(cid:400)(cid:3)(cid:296)(cid:381)(cid:396)(cid:3)(cid:449)(cid:346)(cid:349)(cid:272)(cid:346)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:302)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:396)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:400)(cid:349)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)n,
a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the
default (a lifetime ECL).
(cid:38)(cid:381)(cid:396)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:282)(cid:286)(cid:271)(cid:410)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:894)(cid:349)(cid:856)(cid:286)(cid:856)(cid:853)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:381)(cid:374)(cid:3)(cid:282)(cid:286)(cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:3)(cid:258)(cid:410)(cid:3)(cid:271)(cid:258)(cid:374)(cid:364)(cid:895)(cid:856)(cid:3)The ECL is based on the 12-month ECL. The 12-month ECL is the
(cid:393)(cid:381)(cid:396)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:367)(cid:349)(cid:296)(cid:286)(cid:410)(cid:349)(cid:373)(cid:286)(cid:3)(cid:28)(cid:18)(cid:62)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:396)(cid:286)(cid:400)(cid:437)(cid:367)(cid:410)(cid:400)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:282)(cid:286)(cid:296)(cid:258)(cid:437)(cid:367)(cid:410)(cid:3)(cid:286)(cid:448)(cid:286)(cid:374)(cid:410)(cid:400)(cid:3)(cid:381)(cid:374)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:400)trument that are possible within 12 months after the
reporting date. However. When (cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:346)(cid:258)(cid:400)(cid:3)(cid:271)(cid:286)(cid:286)(cid:374)(cid:3)(cid:258)(cid:3)(cid:400)(cid:349)(cid:336)(cid:374)(cid:349)(cid:302)(cid:272)(cid:258)(cid:374)(cid:410)(cid:3)(cid:349)(cid:374)(cid:272)(cid:396)(cid:286)(cid:258)(cid:400)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:272)(cid:396)(cid:286)(cid:282)(cid:349)(cid:410)(cid:3)(cid:396)(cid:349)(cid:400)(cid:364)(cid:3)(cid:400)(cid:349)(cid:374)(cid:272)(cid:286)(cid:3)(cid:381)(cid:396)(cid:349)(cid:336)(cid:349)(cid:374)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:258)(cid:367)(cid:367)(cid:381)(cid:449)(cid:258)(cid:374)(cid:272)(cid:286)(cid:3)(cid:449)(cid:349)(cid:367)(cid:367)(cid:3)(cid:271)(cid:286)(cid:3)(cid:271)(cid:258)(cid:400)(cid:286)(cid:282)(cid:3)
on the lifetime ECL.
The Group (cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:400)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:296)(cid:258)(cid:437)(cid:367)(cid:410)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374) contractual payments are 90 days past due. However, in certain cases, the
Group (cid:373)(cid:258)(cid:455)(cid:3)(cid:258)(cid:367)(cid:400)(cid:381)(cid:3)(cid:272)(cid:381)(cid:374)(cid:400)(cid:349)(cid:282)(cid:286)(cid:396)(cid:3)(cid:258)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:410)(cid:381)(cid:3)(cid:271)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:282)(cid:286)(cid:296)(cid:258)(cid:437)(cid:367)(cid:410)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:349)(cid:374)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:381)(cid:396)(cid:3)(cid:286)(cid:454)(cid:410)(cid:286)(cid:396)(cid:374)(cid:258)(cid:367)(cid:3)(cid:349)(cid:374)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:374)(cid:282)(cid:349)(cid:272)(cid:258)(cid:410)(cid:286)(cid:400)(cid:3)(cid:410)(cid:346)(cid:258)(cid:410)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)Group is
unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the
Group(cid:856)(cid:3)(cid:4)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:449)(cid:396)(cid:349)(cid:410)(cid:410)(cid:286)(cid:374)(cid:3)(cid:381)(cid:296)(cid:296)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:374)(cid:381)(cid:3)(cid:396)(cid:286)(cid:258)(cid:400)(cid:381)(cid:374)(cid:258)(cid:271)(cid:367)(cid:286)(cid:3)(cid:286)(cid:454)(cid:393)(cid:286)(cid:272)(cid:410)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:448)(cid:286)(cid:396)(cid:349)(cid:374)(cid:336)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:272)(cid:381)(cid:374)(cid:410)(cid:396)(cid:258)(cid:272)(cid:410)(cid:437)(cid:258)(cid:367)(cid:3)(cid:272)(cid:258)(cid:400)(cid:346)(cid:3)(cid:327)(cid:381)(cid:449)(cid:400)(cid:856)
i)
Financial liabilities
Initial recognition and measurement
(cid:38)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:272)(cid:367)(cid:258)(cid:400)(cid:400)(cid:349)(cid:302)(cid:286)(cid:282)(cid:853)(cid:3)(cid:258)(cid:410)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:853)(cid:3)(cid:258)(cid:400)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:3)(cid:410)(cid:346)(cid:396)(cid:381)(cid:437)(cid:336)(cid:346)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)(cid:367)(cid:381)(cid:400)(cid:400)(cid:853)(cid:3)(cid:367)(cid:381)(cid:258)ns and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
(cid:4)(cid:367)(cid:367)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:349)(cid:410)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:258)(cid:410)(cid:3)(cid:296)(cid:258)(cid:349)(cid:396)(cid:3)(cid:448)(cid:258)(cid:367)(cid:437)(cid:286)(cid:856)
The Group(cid:859)(cid:400)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:349)(cid:374)(cid:272)(cid:367)(cid:437)(cid:282)(cid:286)(cid:3)(cid:410)(cid:396)(cid:258)(cid:282)(cid:286)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:393)(cid:258)(cid:455)(cid:258)(cid:271)(cid:367)(cid:286)(cid:400)(cid:856)
59
Derecognition
(cid:4)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:282)(cid:286)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:449)(cid:346)(cid:286)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:381)(cid:271)(cid:367)(cid:349)(cid:336)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:437)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:282)(cid:349)(cid:400)(cid:272)(cid:346)(cid:258)(cid:396)(cid:336)(cid:286)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)(cid:272)(cid:258)(cid:374)(cid:272)(cid:286)(cid:367)(cid:367)(cid:286)(cid:282)(cid:3)(cid:381)(cid:396)(cid:3)expires. When an existing
(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:3)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:393)(cid:367)(cid:258)(cid:272)(cid:286)(cid:282)(cid:3)(cid:271)(cid:455)(cid:3)(cid:258)(cid:374)(cid:381)(cid:410)(cid:346)(cid:286)(cid:396)(cid:3)(cid:296)(cid:396)(cid:381)(cid:373)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:258)(cid:373)(cid:286)(cid:3)(cid:367)(cid:286)(cid:374)(cid:282)(cid:286)(cid:396)(cid:3)(cid:381)(cid:374)(cid:3)(cid:400)(cid:437)(cid:271)(cid:400)(cid:410)(cid:258)(cid:374)(cid:410)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:282)(cid:349)(cid:296)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:410)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:400)(cid:853)(cid:3)(cid:381)(cid:396)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:410)(cid:286)(cid:396)(cid:373)(cid:400)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:374)(cid:3)(cid:286)(cid:454)(cid:349)(cid:400)(cid:410)(cid:349)(cid:374)(cid:336)(cid:3)liability
(cid:258)(cid:396)(cid:286)(cid:3)(cid:400)(cid:437)(cid:271)(cid:400)(cid:410)(cid:258)(cid:374)(cid:410)(cid:349)(cid:258)(cid:367)(cid:367)(cid:455)(cid:3)(cid:373)(cid:381)(cid:282)(cid:349)(cid:302)(cid:286)(cid:282)(cid:853)(cid:3)(cid:400)(cid:437)(cid:272)(cid:346)(cid:3)(cid:258)(cid:374)(cid:3)(cid:286)(cid:454)(cid:272)(cid:346)(cid:258)(cid:374)(cid:336)(cid:286)(cid:3)(cid:381)(cid:396)(cid:3)(cid:373)(cid:381)(cid:282)(cid:349)(cid:302)(cid:272)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:400)(cid:3)(cid:410)(cid:396)(cid:286)(cid:258)(cid:410)(cid:286)(cid:282)(cid:3)(cid:258)(cid:400)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:282)(cid:286)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)the original liability and the
(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:381)(cid:296)(cid:3)(cid:258)(cid:3)(cid:374)(cid:286)(cid:449)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:455)(cid:856)(cid:3)(cid:100)(cid:346)(cid:286)(cid:3)(cid:282)(cid:349)(cid:296)(cid:296)(cid:286)(cid:396)(cid:286)(cid:374)(cid:272)(cid:286)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:396)(cid:286)(cid:400)(cid:393)(cid:286)(cid:272)(cid:410)(cid:349)(cid:448)(cid:286)(cid:3)(cid:272)(cid:258)(cid:396)(cid:396)(cid:455)(cid:349)(cid:374)(cid:336)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:400)(cid:3)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:272)(cid:381)(cid:336)(cid:374)(cid:349)(cid:400)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:393)(cid:396)(cid:381)(cid:302)(cid:410)(cid:3)(cid:381)(cid:396)(cid:3)loss.
ii)
Offsetting of financial instruments
(cid:38)(cid:349)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:258)(cid:400)(cid:400)(cid:286)(cid:410)(cid:400)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:367)(cid:349)(cid:258)(cid:271)(cid:349)(cid:367)(cid:349)(cid:410)(cid:349)(cid:286)(cid:400)(cid:3)(cid:258)(cid:396)(cid:286)(cid:3)(cid:381)(cid:296)(cid:296)(cid:400)(cid:286)(cid:410)(cid:3)(cid:258)(cid:374)(cid:282)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:374)(cid:286)(cid:410)(cid:3)(cid:258)(cid:373)(cid:381)(cid:437)(cid:374)(cid:410)(cid:3)(cid:349)(cid:400)(cid:3)(cid:396)(cid:286)(cid:393)(cid:381)(cid:396)(cid:410)(cid:286)(cid:282)(cid:3)(cid:349)(cid:374)(cid:3)(cid:410)(cid:346)(cid:286)(cid:3)(cid:400)(cid:410)(cid:258)(cid:410)(cid:286)(cid:373)(cid:286)(cid:374)(cid:410)(cid:3)(cid:381)(cid:296)(cid:3)(cid:302)(cid:374)(cid:258)(cid:374)(cid:272)(cid:349)(cid:258)(cid:367)(cid:3)(cid:393)(cid:381)(cid:400)(cid:349)(cid:410)(cid:349)(cid:381)(cid:374)(cid:3)(cid:349)(cid:296)(cid:3)(cid:410)(cid:346)(cid:286)(cid:396)(cid:286)(cid:3)(cid:349)(cid:400)(cid:3)(cid:258)
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.
22.7
Income taxes
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation Office (‘ATO’)
and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is
payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax
rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of
assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the
initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting
profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if
reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the
foreseeable future.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective
period of realisation, provided they are enacted or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable
income, based on the Group’s forecast of future operating results which is adjusted for significant non- taxable income and
expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the Group has a right and intention to set off current tax assets and
liabilities from the same taxation authority.
Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or loss, except
where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in
equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively.
60
22.8 Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash at banks and on hand and short- term deposits
with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the
statement of cash flows (Exploration and evaluation expenditure is net of $2.6M that was received and spent on behalf of Gold
Road (Projects) Pty Ltd), cash and cash equivalents consist of cash and short- term deposits, as defined above, are considered an
integral part of the Group’s cash management.
22.9 Equity and reserves
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares
are deducted from share capital, net of any related income tax benefits.
Retained earnings include all current and prior period retained profits.
The Group maintains a share base payments reserve which accumulates the value recognised as a result of share based awards
issued to employees or contractors for services rendered. Where amounts have accumulated in the reserve and the underlying
instruments expire, amounts are transferred from the reserve to retained earnings. Where amounts have accumulated in the
reserve and the underlying instruments have vested or been exercised, amounts are transferred from the reserve to share
capital.
22.10 Provisions, contingent liabilities and contingent assets
Provisions for product warranties, legal disputes, onerous contracts or other claims are recognised when the Group has a present
legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required
from the Group and amounts can be estimated reliably. Timing or amount of the outflow may still be uncertain.
Restructuring provisions are recognised only if a detailed formal plan for the restructuring has been developed and implemented,
or management has at least announced the plan’s main features to those affected by it. Provisions are not recognised for future
operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable
evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where
there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money
is material.
Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is
recognised as a separate asset. However, this asset may not exceed the amount of the related provision.
No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are
disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.
61
22.11 Exploration and Development expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest.
These costs are only capitalised to the extent that they are expected to be recovered through the successful development of the
area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Costs of site restoration are provided over the life of the project from when exploration commences and are included in the costs
of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures,
waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of permits. Such costs
have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning
the site.
22.12 Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as
part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of investing and
financing activities, which are disclosed as operating cash flows.
22.13 Critical Accounting Estimates and Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing this Annual Financial Report, the significant judgements and estimates made by management in applying the Entity’s
accounting policies and the key sources of estimation uncertainty are detailed below.
62
Critical Estimates
Exploration and Evaluation Expenditure – Impairment
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s accounting
policy requires estimates and assumptions as to future events and circumstances. In particular, whether successful development
and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to this assessment
is estimates and assumptions as to the presence of mineral reserves, timing of expected cash flows, exchange rates, commodity
prices and future capital requirements. Changes in these estimates and assumptions as new information about the presence or
recoverability of a mineral reserve becomes available, may impact the assessment of the recoverable amount of exploration and
evaluation assets. If, after having capitalised the expenditure a judgement is made that recovery of the expenditure is unlikely, an
impairment loss is recorded in the statement profit or loss and other comprehensive income.
Performance Rights
The Group makes judgments around the value of awarded performance rights based on the historical performance of the Group
as the vesting conditions are linked to peer Group comparison via Total Shareholder Returns (TSR). Management determines the
total value of the award based on weighted probabilities of the vesting criteria being achieved. In addition to historical
performance compared to its peers, management further considers how the Group is tracking towards the vesting criteria based
on subsequent performance with reference to subsequent events up to balance date, as well as any other expected
improvements in the share price based on operational knowledge.
Critical Judgments
Exploration and Evaluation Expenditure
The entity capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where
the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are
certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such
expenditure should not be written off since feasibility studies in such areas have not yet been conducted.
22.14 Going Concern
The financial statements have been prepared on a going concern basis of accounting which assumes that the Group will be able
to meet its commitments, realise its assets, discharge its liabilities in the ordinary course of business and meet exploration
budgets. In arriving at this position, the Directors recognise the Group is dependent on various funding alternatives to meet these
commitments which may include share placements and suitable project funding arrangements including earn-ins, joint ventures
or project divestment.
During the current year the Group the cash outflows from operating and investing activities equated to $966,688 (2019:
$2,036,703) and held $3,385,934 of cash and cash equivalents and net and net assets of $3,376,826 at balance date.
The Directors are, however, confident that further funding will be obtained to meet the groups objectives. In addition, the
Directors have considered the minimum expenditure requirements necessary in order to maintain tenements in good standing
and to meet the committed expenditures for the 12 month period from the date of this report and consider the going concern
basis of preparation as appropriate.
63
22.15 Employee benefits
Wages and salaries and annual leave:
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service. Examples of such benefits include wages
and salaries, non-monetary benefits and accumulating sick leave. Short-term employee benefits are measured at the
undiscounted amounts expected to be paid when the liabilities are settled.
22.16 Property, plant and equipment
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Costs
include expenditures that are directly attributable to the acquisition of the asset.
Subsequent Costs
Subsequent expenditure is only capitalised when it is probable that the future economic benefits associated with the expenditure
will flow to the Group.
Ongoing repairs and maintenance are expensed as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of
property, plant and equipment. The expected useful lives in the current and comparative period are as follows:
IT equipment
2 – 3 years
Plant and equipment
2 – 3 years
Motor vehicle
5 years
The estimated useful lives, depreciation methods and residual values are reviewed at the end of each reporting period.
22.17 Share based payments
The Group operates equity-settled share-based remuneration plans for its employees. None of the Group’s plans feature any
options for a cash settlement.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where
employees are rewarded using share-based payments, the fair values of employees’ services are determined indirectly by
reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the
impact of non-market vesting conditions (for example profitability and sales growth targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to share option
reserve. Where vesting periods exist, the total expense is recognised straight-line over the vesting period. Where vesting
conditions are non-market based, the expense is based on the best available estimate of the number of instruments expected to
vest. Where the vesting conditions are market based, the Group uses a pricing model to determine fair value of each instrument.
64
22.18 Other income
Other income recognises the management fee charged for managing joint operations, this is recognised on an accruals basis at a
point in time, which is defined as the moment in which the Group spends the JV partner’s contributions to the earn-in
arrangement and thus is entitled to the management fee that attaches to the expenditure.
22.19 Joint Operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets,
and obligations for the liabilities, relating to the arrangement. The Group has recognised its share of jointly held assets, liabilities,
revenues and expenses of joint operations.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets,
and obligations for the liabilities, relating to the arrangement. The Group has recognised its share of jointly held assets, liabilities,
revenues and expenses of joint operations.
The Group currently has two joint operations with the listed ASX company Gold Road Resources Limited (“Gold Road”) as follows:
1.
The Lake Grace Project
Cygnus owns 100% of the tenement rights and Gold Road can earn-in to a maximum of 75% of interest in the tenements. In
order to do so, Gold Road must spend as much as $3.7M over the four year period from the commencement of the
operation in October 2017.
During the year Cygnus received cash calls from Gold Road and managed the exploration and evaluation activity at their
discretion, deriving a management fee of 15% of the expenditure that has spent from Gold Road funds until 30 September
2020 when Gold Road took over the management. Given the accounting policies noted above, none of the amounts spent
by Cygnus on behalf of Gold Road are included in the exploration and evaluation asset on the Consolidated Statement of
Financial Position. The Group only capitalises qualifying expenditure on the projects as exploration and evaluation asset
where it is the Group’s cash used.
The Group is currently diluting to 10% and it then is planning to maintain its 10% interest in the Lake Grace Project.
2.
The Yandina Project
In this joint operation, Cygnus’s hold 10% and Gold Road hold 90% of the interest in the Yandina Project tenements. The
expenditure incurred is capitalised as exploration and evaluation asset based on the percentage of in held. During the year
Cygnus managed the cash calls and the exploration and evaluation activity at their discretion, deriving a management fee of
15% of the expenditure that has spent, until 30 September 2020 when Gold Road took over the management.
The Group is planning to maintain its 10% interest in the Yandina Project.
65
22.20 Government grants
The Group receives government grants for qualifying exploration and evaluation activity. The amounts are paid in arrears as a
reimbursement. All expenditures incurred by the Group that are covered by the grant are capitalized exploration and evaluation
expenditure. For this reason, the Group applies the grant amounts received as an off- set against its evaluation and exploration
asset balance on the Consolidated Statement of Financial Position. In the current period, this treatment occurred for the EIS
Grant - a co-funded exploration drilling program - totalling to $51,952 (2019: 89,362).
23 Post reporting date events
There have not been any events that have arisen between 31 December 2020 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations of
the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
66
Directors’ Declaration
1.
In the opinion of the Directors of Cygnus Gold Limited:
a. The financial statements and notes of Cygnus Gold Limited are in accordance with the Corporations Act 2001,
including:
I. Giving a true and fair view of its consolidated financial position as at 31 December 2020 and of its performance for the
year ended on that date; and
II. Complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001; and
b.
There are reasonable grounds to believe that Cygnus Gold Limited will be able to pay its debts as and when they
become due and payable.
2.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Managing Director and Chief Financial Officer for the year ended 31 December 2020.
3. Note 2 confirms that the financial statements also comply with International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
Simon Jackson
Executive Director
Perth, 31 March 2021
67
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Independent Auditor’s Report
To the Members of Cygnus Gold Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Cygnus Gold Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or
loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the
year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional 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 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.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
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and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
68
Key audit matter
Exploration and evaluation assets - Notes 17 & 22.11
At 31 December 2020 the carrying value of exploration and
evaluation assets was $nil.
In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to assess at each
reporting date if there are any triggers for impairment which
may suggest the carrying value is in excess of the recoverable
value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
How our audit addressed the key audit matter
Our procedures included, amongst others:
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
(cid:120)
o
obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to
the general ledger;
reviewing management’s area of interest
considerations against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance
with AASB 6 including;
o
tracing projects to statutory registers, exploration
licenses and third party confirmations to
determine whether a right of tenure existed;
enquiring of management regarding their
intentions to carry out exploration and evaluation
activity in the relevant exploration area, including
review of management’s budgeted expenditure;
understanding whether any data exists to
suggest that the carrying value of these
exploration and evaluation assets are unlikely to
be recovered through development or sale;
assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
evaluating the competence, capabilities and objectivity
of management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
o
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 31 December 2020, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and 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.
69
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 Company’s/Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the Company/Group or to cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 21 to 32 of the Directors’ report for the year ended 31
December 2020.
In our opinion, the Remuneration Report of Cygnus Gold Limited, for the year ended 31 December 2020 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
L A Stella
Partner – Audit & Assurance
Perth, 31 March 2021
70
Top 20 holders of ordinary shares
In accordance with ASX Listing Rule 4.10, the following information is provided as at 23 March 2020.
Rank
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SOUTHERN CROSS CAPITAL PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
Units
7,669,677
7,384,588
6,658,721
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
SYMORGH INVESTMENTS PTY LTD
5,789,494
MS CHARMAINE LINDA LOBO
MR ALAN FRANK CLELAND
GLEESON MINING PTY LTD
MR TIMOTHY MCCORMACK
MR JAMES MICHAEL THOMSON
DR OLIVER PIERRE KREUZER
5,722,395
3,066,668
2,465,813
2,386,944
2,184,444
2,130,556
BIGJAC INVESTMENTS PTY LTD
2,111,111
GOLD LEAF CORPORATE PTY LTD
1,991,453
MR MICHAEL DYLAN NAYLOR + MS SARAH MCALPINE
MR GAVIN JEREMY DUNHILL
FATHOM GEOPHYSICS AUSTRALIA PTY LTD
1,959,999
1,850,000
1,666,667
SYMORGH INVESTMENTS PTY LTD
1,666,667
SPRING STREET HOLDINGS PTY LTD
THE DUTCHINA INVESTMENTS PTY LTD
MR RONALD WILLIAM BILLYARD + MS FIONA CURREY
SLAM CONSULTING PTY LTD
1,606,837
1,465,154
1,332,000
1,300,000
62,409,188
% of issued
capital
7.10
6.83
6.16
5.36
5.30
2.84
2.28
2.21
2.02
1.97
1.95
1.84
1.81
1.71
1.54
1.54
1.49
1.36
1.23
1.20
57.75
71
Range of shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Substantial Holders
Total holders
24
85
77
302
116
604
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SOUTHERN CROSS CAPITAL PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
Units
6,692
283,811
645,610
13,131,700
94,002,285
108,070,098
Units
7,669,677
7,384,588
6,658,721
SYMORGH INVESTMENTS PTY LTD
5,789,494
MS CHARMAINE LINDA LOBO
5,337,780
% of issued capital
0.01
0.26
0.60
12.15
86.98
100.00
% of issued capital
7.10
6.83
6.16
5.36
5.30
Unmarketable Parcels
There were 59 shareholders with less than a marketable parcel of shares, based on the closing price $0.17
Restricted Securities
There are no restricted securities.
Voting Rights
In accordance with the Company’s constitution, on a show of hands every member present in person or by proxy or attorney or
duly appointed representative has one vote. On a poll every member present or by proxy or attorney or duly authorised
representative has one vote for every fully paid share held.
ASX Listing Rule 4.10.19
In accordance with Listing Rule 4.10.19, the company states that it has used the cash and assets in a form readily convertible to
cash that it had at the time of admission in a way consistent with its business objectives. The business objective is primarily
mineral exploration.
72
Schedule of tenements
A listing of the Entity’s tenements:
Tenement
Location
Registered Owner
Structure and Ownership
Cygnus Gold Limited
E77/2564
Western Australia
Cygnus Gold Limited
Pending, 100%
Cygnus Gold (Projects) Pty Ltd
E70/4787
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/4854
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/4911
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/4939
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/4989
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/4990
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/5131
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
E70/5137
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
Deneb Resources Pty Ltd
E29/1075
Western Australia
Deneb Resources Pty Ltd
E70/4988
Western Australia
Deneb Resources Pty Ltd
E70/4992
Western Australia
Deneb Resources Pty Ltd
E70/5050
Western Australia
Deneb Resources Pty Ltd
E70/5168
Western Australia
Deneb Resources Pty Ltd
E70/5169
Western Australia
Deneb Resources Pty Ltd
E70/5196
Western Australia
Deneb Resources Pty Ltd
E70/5397
Western Australia
Deneb Resources Pty Ltd
E70/5409
Western Australia
Deneb Resources Pty Ltd
E70/5410
Western Australia
Deneb Resources Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
73
Tenement
Location
Registered Owner
Structure and Ownership
Deneb Resources Pty Ltd
E70/5413
Western Australia
Deneb Resources Pty Ltd
100%
E70/5492
Western Australia
Deneb Resources Pty Ltd
Pending 100%
E70/5617
Western Australia
Deneb Resources Pty Ltd
Pending 100%
E70/5618
Western Australia
Deneb Resources Pty Ltd
Pending 100%
E77/2405
Western Australia
Deneb Resources Pty Ltd
E77/2463
Western Australia
Deneb Resources Pty Ltd
100%
100%
E77/2720
Western Australia
Deneb Resources Pty Ltd
Pending 100%
Lake Grace Joint Venture Project – Managed by Gold Road Resources Limited
E70/4853
Western Australia
Cygnus (JV Projects) Pty Ltd
E70/4855
Western Australia
Cygnus (JV Projects) Pty Ltd
E70/4991
Western Australia
Cygnus (JV Projects) Pty Ltd
E70/5017
Western Australia
Cygnus (JV Projects) Pty Ltd
E70/5188
Western Australia
Cygnus (JV Projects) Pty Ltd
E70/5251
Western Australia
Cygnus Gold Limited
Cygnus (diluting to 10%), Gold Road Projects Pty
Ltd (earning 90%)
Cygnus (diluting to 10%), Gold Road Projects Pty
Ltd (earning 90%)
Cygnus (diluting to 10%), Gold Road Projects Pty
Ltd (earning 90%)
Cygnus (diluting to 10%), Gold Road Projects Pty
Ltd (earning 90%)
Cygnus (diluting to 10%), Gold Road Projects Pty
Ltd (earning 90%)
Pending, Cygnus (diluting to 10%), Gold Road
Projects Pty Ltd (earning 90%)
E70/5320
Western Australia
Gold Road Projects Pty Ltd (75%),
Cygnus (diluting to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earning 90%)
Yandina Joint Venture Project – Managed by Gold Road Resources Limited
E70/5098
Western Australia
E70/5099
Western Australia
E70/5100
Western Australia
E70/5101
Western Australia
Gold Road Projects Pty Ltd (75%),
Cygnus (diluted to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earned 90%)
Gold Road Projects Pty Ltd (75%),
Cygnus (diluted to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earned 90%)
Gold Road Projects Pty Ltd (75%),
Cygnus (diluted to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earned 90%)
Gold Road Projects Pty Ltd (75%),
Cygnus (diluted to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earned 90%)
74
Tenement
Location
Registered Owner
Structure and Ownership
Yandina Joint Venture Project
E70/5230
Western Australia
E70/5231
Western Australia
E70/5232
Western Australia
Gold Road Projects Pty Ltd (75%),
Cygnus (diluting to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earning 90%)
Gold Road Projects Pty Ltd (75%),
Cygnus (diluting to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earning 90%)
Gold Road Projects Pty Ltd (75%),
Cygnus (diluting to 10%), Gold Road Projects Pty
Cygnus (JV Projects) Pty Ltd (25%)
Ltd (earning 90%)
75