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2022
ANNUAL
REPORT
ASX:DTR
ABN: 63 149 105 653
ASX:DTR
T: + 61 (0)439 449 999
datelineresources.com.au
Contents
Corporate Directory
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information
1
2
8
17
18
19
20
21
22
53
54
58
Corporate Directory
Directors & Officers
Mark Johnson AO - Chairman
Stephen Baghdadi - Managing Director
Greg Hall - Non-Executive Director
Tony Ferguson - Non-Executive Director
Bill Lannen - Non-Executive Director
Mark Ohlsson - Company Secretary
Registered Office
Level 29
2 Chifley Square
Sydney NSW 2000
PO Box 553
South Hurstville NSW 2221
T: +61 (02) 8231 6640
F: +61 (02) 8231 6487
E-mail: info@datelineresources.com.au
Website: www.datelineresources.com.au
Securities Exchange
Australian Securities Exchange Limited
(“ASX”)
Home Exchange – Sydney
ASX Symbol – DTR (ordinary shares)
Australian Company Number
ACN 149 105 653
Australian Business Number
ABN 63 149 105 653
Bankers
Commonwealth Bank of Australia
48 Martin Place
Sydney NSW 2000
Website: www.commbank.com.au
Auditors
HLB Mann Judd (Assurance) NSW Pty Ltd
Level 19, 207 Kent Street
Sydney NSW 2000
Website: www.hlb.com.au
Share Registry
Automic Pty Ltd
L5, 126 Phillip Street
Sydney NSW 2000
Website: www.securitytransfer.com.au
Solicitors
K & L Gates
Level 31, 1 O’Connell Street
Sydney NSW 2000
Website: www.klgates.com
Domicile and Country of
Incorporation
Australia
The Company’s Corporate Governance
Statement can be found on the Company’s
website www.datelineresouces.com.au
1
DATELINE RESOURCES
Review of
Operations
Overview
The Company commenced gold production during the reporting period following commercial
production from Gold Links. At the Colosseum Gold Mine in California, a significant mineral
resource was defined and REE experts confirmed a genetic link to the Mountain Pass Rare
Earth Mine, increasing the prospectivity of discovering a major rare earth deposit.
2
ANNUAL REPORT 2022 Location of Dateline’s US assets
drill program, the Company announced a
Mineral Resource of 20.9Mt at 1.2g/t Au for
813,000 ounces of gold.
The Colosseum Project is also prospective
for rare earths, with the Company’s experts
confirming the geology at Colosseum is
genetically related to the nearby Mountain
Pass Rare Earth Mine, the highest-grade
rare earth mine globally. A gravity survey
is planned to prioritise drill targets that are
planned to be drilled during calendar 2022.
The Gold Links Project, located in Gunnison
County, Colorado has a long, rich history
of high-grade gold mining over the past
century. Multiple high-grade veins are
associated with the historical mine workings,
with grades of 15-30g/t Au common during
the main mining period from 1896-1942.
During the reporting period, the Company
commenced ore mining and gold production
from the Gold Links operation. Ore is mined
and transported to the Lucky Strike mill for
processing into gold concentrate. During the
reporting period, the Company transitioned
to an owner operated mining fleet and
commenced the expansion of the Lucky
Strike mill and flotation plant to 250tpd
throughput.
The Company also owns the Colosseum
Gold Mine, located in California. The mine
was purchased from Barrick in 2021 and had
no exploration from when the mine closed
in 1993 through to the sale date. After
compiling the data into a digital relational
database and completing a confirmatory
3
DATELINE RESOURCES Review of Operations
Gold Links Gold Project
(DTR 100%)
During the reporting period, the Company
made the decision to transition to an owner
operated mining and exploration fleet at
Gold Links. An agreement with Komatsu
provided for new and near new equipment
to be supplied to site. A new owner
operated underground excavator was
purchased during the reporting period
and was delivered in late August 2022.
Underground exploration drilling
recommenced in the September quarter.
Gold concentrate is produced at Lucky
Strike, with the Company entering into an
agreement with IXM International,
for offtake of any concentrate produced
for sale.
Gold Links Plans – Current Year
With the move to owner operated mining
and exploration, the Company has increased
flexibility with regards to opening new
development areas and drill testing various
vein sets. It is expected that development
and exploration will be ongoing, providing a
buffer of ore for future ore development.
Dateline owns approximately 2,000 acres of
freehold land in Gunnison County, Colorado
USA. This region is part of the ‘Gold Brick
District’ of the Colorado Mineral Belt.
Since acquiring the permitted Gold
Links Mine in 2016, the Company has
consolidated ownership of additional mining
and exploration ground in the region and
now owns 100% of six permitted gold mines
(Gold Links, Upper Gold Links Sacramento,
Raymond, Carter and the Lucky Strike) and
a permitted mill (Lucky Strike), collectively
known as the Gold Links Project.
During the reporting period, the Company’s
focus has been on developing access to
deeper section of the 2150 vein which is
located in the original Gold Links mine.
A mining contractor was engaged and
undertook ~600 metres of development
to allow underground drilling of the 2150
and West veins. The drilling program
commenced in July 2021 and is ongoing
using our own company purchased drill rig
and company employed drillers.
At the end of 2021, the Company made the
Development Decision to commence ore
mining from Gold Links. Ore was initially
mined at a rate of between 50-100tpd to
match the existing capacity of the Lucky
Strike mill. Commissioning of the mill was
initially undertaken at 50-80tpd, whilst
during the reporting period, the Company
made the decision to increase the circuit to
250tpd.
The installation and commissioning of the
250tpd circuit was ongoing at the end of the
reporting period.
4
ANNUAL REPORT 2022 Review of Operations
Colosseum Gold Mine
(DTR 100%)
In March 2021, the Company entered into
an agreement with LAC Minerals (USA) LLC,
a wholly owned subsidiary of Barrick Gold
Corporation to acquire the Colosseum Gold
Mine, located in San Bernadino County,
California.
Colosseum was originally discovered in the
early 1970’s, with production of ~344,000
ounces of gold between 1988 and 1993 from
two open pits.
At the time of cessation of activities, the gold
price was at a cyclical low below $350/oz.
No exploration has been undertaken at site
over the past 25 years.
Geology and Mining of the
Breccia Pipes
The development of the breccia pipes at
Colosseum is interpreted to have occurred
~100my ago with the intrusion of felsic
magma into the Pre-Cambrian sedimentary
basement rocks. This event is regionally
extensive with felsic dyke outcrops exposed
over a distance of 10km between Colosseum
and the Mountain Pass Rare Earth Mine to
the southeast.
The West and East breccia pipes have a
tear-like appearance in plan view, each
measuring ~800ft x 400ft. Both pipes are
connected by a narrow dyke4. The East pipe
has a relatively consistent grade vertically of
~1.3g/t Au, whereas the West pipe has more
variability, with grades ranging from ~2.0g/t
Au up to 4.4g/t Au.
Mineral Resource Estimate
Dateline compiled many technical reports,
maps and sections for the Colosseum Gold
Mine into a digital relational database, the
first time this had ever been completed.
A drill program was completed during
the reporting period, designed to validate
the drilling database and identify areas
of mineralisation outside of the mineral
resource envelope.
The drill program was successful and
enabled the Company to confirm a Mineral
Resource estimate of 20.9Mt at 1.2g/t Au for
813,000 ounces of gold. This initial mineral
resource is in line with internal expectations,
given a 1.1Moz resource was defined pre-
mining in the 1980’s and 344,000 oz of gold
was produced.
The validation drill program intersected
several high-grade zones that are outside
of the published mineral resource. These
intersections included:
• 100.6m @ 4.16g/t Au from 79.24m in
CM22-05 confirmed with final assay
results including
°
°
°
19.81 metres of 5.19g/t Au from
79.24 metres
3.05 metres of 13.78g/t Au from
80.77 metres
16.8 metres of 6.76 g/t Au from
112.78 metres
5
DATELINE RESOURCES Review of Operations
°
°
7.6 metres of 12.74 g/t Au from
132.59 metres
4.6 metres of 7.10g/t Au from
158.50 metres
• 10.67m @ 13.71g/t Au from 18.29m in
CM22-04 including
°
3.05 metres of 42.88g/t Au from
18.29 metres
• 1.52m of 2.70g/t Au from 70.10 metres
• 4.57m @ 6.96g/t Au from 18.29m in
CM22-03
The drilling database includes two diamond
drill holes (DDH-1 and DDH-2), drilled in
1972 by Draco Mines, with both drilled
to ~3,000 feet (~1,000m). Both drillholes
targeted a porphyry molybdenum deposit
thought to lie beneath the pipes and not
gold. Draco Mines intersected the high
grade sedimentary breccia units at 2,600
feet (790m) below the surface.
The Company believes that excellent
potential remains to significantly expand
the mineral resource at Colosseum and is
planning further diamond drilling to test the
depth extents of mineralisation.
Rare Earth Mineralisation
As part of the data compilation for
Colosseum, Dateline identified several
unexplained radiometric anomalies
in historic USGS datasets. Given that
Colosseum is located ~10km along strike
to the north of the Mountain Pass Rare
Earth mine, the highest-grade rare earth
mine globally, further investigations were
undertaken with regards to the rare earth
potential of the project.
The Company engaged US rare earth
experts, Anthony Mariano PhD and Tony
Mariano Jnr, to advise on the potential for
rare earth mineralisation at Colosseum.
Mapping and sampling by the experts
identified a number of fenite dykes over an
area of 1.6km at Colosseum. The majority
of the samples assayed were anomalous for
rare earths, with the REE experts opining
that they believe there is potential for a
significant carbonatite system at Colosseum.
A gravity survey was completed post the
reporting period to prioritise targets for
drilling during 2022.
6
ANNUAL REPORT 2022 Review of Operations
“
The Colosseum Project is also
prospective for rare earths,
with the Company’s experts
confirming the geology at
Colosseum is genetically related
to the nearby Mountain Pass
Rare Earth Mine, the highest-
grade rare earth mine globally.
7
DATELINE RESOURCES DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
The Directors submit their report on the consolidated entity (“the Group”), which consists of Dateline
Resources Limited (the “Company” or “Dateline”) and the entities it controlled during the financial year
ended 30 June 2022.
1.
INFORMATION ON DIRECTORS
The names and details of the Group’s Directors in office during the financial year and until the date of this
report are as follows. Directors were in office for the entire year unless otherwise stated.
Mr Mark Johnson AO
Non-Executive Chairman (Appointed 22 April 2013)
LLB MBA (Harvard)
Mr Johnson has worked in banking and corporate finance for more than forty years. He retired as Deputy
Chairman of Macquarie Bank in mid-2007 and now divides his time between work in the private and public
sectors.
Mr Johnson is a senior adviser to Gresham Partners, Chairman of Alinta Energy Ltd, and from 2002 to 2013
one of the three Australian members of the APEC Business Advisory Council (ABAC).
During the past three years, Mr Johnson held the following directorships in other ASX listed companies:
•
Independent Director of OneMarket Limited (resigned December 2019)
Stephen Baghdadi
Managing Director and CEO (Appointed 3 July 2014)
Since 1993 Mr. Baghdadi has acted as an executive director for numerous ASX listed companies including the
Horizon group of companies, Afro-West, Alamain Investments, Marino as well as privately held controlling
interests in manufacturing, software development and property concerns. Mr. Baghdadi has completed
several transactions in Australia, South East Asia, Europe and North America and brings to the table the ability
to identify an undervalued asset or opportunity that has the potential to yield high returns
During the past three years, Mr Baghdadi held the following directorships in other ASX listed companies:
• Executive Director of Southern Cross Explorations N.L. (current).
Mr Gregory Hall
Non-Executive Director (Appointed 19 January 2015)
B. Applied Geology (1st Class Honours)
Mr Hall is an exploration geologist with over 40 years of international experience. From 1988-2005, he was
employed by the Placer Dome group of companies, serving as Chief Geologist -World Wide during the last
five years he was there.
Placer Dome was later acquired by Barrick Gold Corporation in early 2006.
Over the course of his career, Mr. Hall had a senior role in the discoveries of both Gold Field's Granny Smith
mine and Rio Tinto's Yandi iron ore mine. In addition, he took part in the discoveries of Keringal and Wallaby
in Australia's Eastern Goldfields, as well as the definition of AngloGold Ashanti's Sunrise gold mine.
During the past three years, Mr Hall held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Greater Boulder Resources Limited (current);
• Non-Executive Director of Zeus Resources Limited (current).
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Mr Anthony Ferguson
Non-Executive Director (Appointed 29 August 2019)
MBA (Dist), B.Sc, B.E (Hons)
Mr Ferguson is an investor, entrepreneur and an investment banker.
The majority of Mr. Ferguson’s career was with Macquarie Group where he established and led the natural
resources team that advised on many major transactions in the mining industry. He established Macquarie’s
presence in Canada, headed Macquarie’s Asian investment banking operations, established and led the Asia
Resources Fund. Mr. Ferguson’s career included three years as Managing Director and Head of Investment
Banking at Rothschild Australia and a Global Partner of Rothschild Investment Bank.
Before commencing his investment banking career Tony practiced as an engineer and worked at Rio Tinto’s
Woodlawn Mine.
During the past three years, Mr Ferguson held the following directorships in other ASX listed companies: NIL
Mr Francis William Lannen
Non-Executive Director (Appointed 15 January 2021)
B.E (Mining)(Hons)
Mr Lannen is a Mining Engineer with a Bachelor of Engineering (Mining) Honours, from the University of
Sydney and holds statutory qualifications as a Mine Manager of underground and open pit mines in both
NSW and Tasmania.
Mr. Lannen’s early career was with Aberfoyle Ltd where he worked in both technical and operating rolls at
Cleveland Tin, Ardlethan Tin and the Melbourne head office. His last project was to take the Hellyer base
metal mine in Tasmania from feasibility to full production as the mine manager.
In 1990, Mr. Lannen started Mancala Pty Ltd, a specialist mining contractor and mine engineering group and
managed Mancala’s operations for over 25 years. As a mine contractor, Mancala has successfully completed
projects in both metalliferous and coal in Australia and offshore. Projects have included whole of mine
contracts in open pit and underground as well as specialist contracts in the development and recovery of
shafts. Several key projects involved mechanized mining of narrow vein deposits.
During the past three years, Mr Lannen held the following directorships in other ASX listed companies: NIL
2.
INFORMATION ON COMPANY SECRETARY
Mr John Smith
B. Com, MBA, FCPA
(Appointed 24 October 2013 – resigned 1 November 2021)
Mr Smith is a Certified Practising Accountant with over 30 years’ experience as CFO and Company Secretary
of ASX listed and unlisted companies.
Mr Mark Ohlsson
(Appointed 1 November 2021)
FCPA, Registered Tax Agent
Mr Ohlsson has been a Company Secretary or Director of a number of ASX-listed companies and his
experience spans a wide range of industries. He has been involved in business management and venture
capital for over 40 years.
8
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ANNUAL REPORT 2022
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Mr Anthony Ferguson
Non-Executive Director (Appointed 29 August 2019)
MBA (Dist), B.Sc, B.E (Hons)
Mr Ferguson is an investor, entrepreneur and an investment banker.
The majority of Mr. Ferguson’s career was with Macquarie Group where he established and led the natural
resources team that advised on many major transactions in the mining industry. He established Macquarie’s
presence in Canada, headed Macquarie’s Asian investment banking operations, established and led the Asia
Resources Fund. Mr. Ferguson’s career included three years as Managing Director and Head of Investment
Banking at Rothschild Australia and a Global Partner of Rothschild Investment Bank.
Before commencing his investment banking career Tony practiced as an engineer and worked at Rio Tinto’s
Woodlawn Mine.
During the past three years, Mr Ferguson held the following directorships in other ASX listed companies: NIL
Mr Francis William Lannen
Non-Executive Director (Appointed 15 January 2021)
B.E (Mining)(Hons)
Mr Lannen is a Mining Engineer with a Bachelor of Engineering (Mining) Honours, from the University of
Sydney and holds statutory qualifications as a Mine Manager of underground and open pit mines in both
NSW and Tasmania.
Mr. Lannen’s early career was with Aberfoyle Ltd where he worked in both technical and operating rolls at
Cleveland Tin, Ardlethan Tin and the Melbourne head office. His last project was to take the Hellyer base
metal mine in Tasmania from feasibility to full production as the mine manager.
In 1990, Mr. Lannen started Mancala Pty Ltd, a specialist mining contractor and mine engineering group and
managed Mancala’s operations for over 25 years. As a mine contractor, Mancala has successfully completed
projects in both metalliferous and coal in Australia and offshore. Projects have included whole of mine
contracts in open pit and underground as well as specialist contracts in the development and recovery of
shafts. Several key projects involved mechanized mining of narrow vein deposits.
During the past three years, Mr Lannen held the following directorships in other ASX listed companies: NIL
2.
INFORMATION ON COMPANY SECRETARY
Mr John Smith
(Appointed 24 October 2013 – resigned 1 November 2021)
B. Com, MBA, FCPA
Mr Smith is a Certified Practising Accountant with over 30 years’ experience as CFO and Company Secretary
of ASX listed and unlisted companies.
Mr Mark Ohlsson
(Appointed 1 November 2021)
FCPA, Registered Tax Agent
Mr Ohlsson has been a Company Secretary or Director of a number of ASX-listed companies and his
experience spans a wide range of industries. He has been involved in business management and venture
capital for over 40 years.
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9
DATELINE RESOURCES
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
3.
DIRECTORS’ SHAREHOLDINGS
The following table sets out each current Director’s relevant interest in shares and rights or options to acquire
shares of the Company as at the date of this report.
Fully Paid
Ordinary
Shares
96,900,471
26,003,541
2,099,995
12,011,111
2,463,023
139,478,141
Unlisted
Share
Options
4,926,046
4,926,046
4,926,046
4,926,046
-
19,704,184
Directors
Mark Johnson
Stephen Baghdadi
Gregory Hall
Tony Ferguson
Bill Lannen
4.
DIRECTORS’ MEETINGS
Directors
Mark Johnson
Stephen Baghdadi
Gregory Hall
Tony Ferguson
Bill Lannen
Number
Eligible to
Attend
Number
Attended
9
9
9
9
9
9
9
9
9
9
Functions normally assigned to an Audit Committee and Remuneration Committee are undertaken by the
full Board.
5.
DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the financial year.
6.
PRINCIPAL ACTIVITIES
Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and
exploration in North America. The Company has assets in Colorado and California
The Colosseum project in California is located less than 10km north of the Mountain Rare Earth mine. The
Mountain Pass rare earth mine is the richest rare earth mine in the world and is the only operating rare earth
mine in the USA. Work has commenced on identifying the source of the mantle derived rocks that are located
at the Colosseum and are associated with carbonatites that host the Rare Earths.
The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County, California and
was mined for gold by Bond International Gold and LAC Minerals between 1988 and 1993. On July 6, 2022,
Dateline announced to the ASX that the Colosseum Gold mine has a JORC-2012 compliant Mineral Resource
estimate of 20.9Mt @ 1.2g/t Au for 813,000oz. Of the total Mineral Resource, 258koz @ 1.2g/t Au (32%) are
classified as Measured, 322koz @1.2g/t Au (39%) as Indicated and 235koz @1.3g/t Au (29%) as Inferred.
Gold Links hosts a swarm of high-grade narrow gold veins over more than 5km strike length and a kilometre
across strike. Historical mapping and drilling coupled with the Company’s own exploration work has
confirmed mineralisation is extensive throughout the Project. The company is actively developing
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
below historical workings.
tonnes of ore per day.
7.
FINANCIAL REVIEW
underground accessways to be able to extract known sections of mineralized vein and to be able to drill
The Lucky Strike mill is located 50km away from the Gold Links mine and is being upgraded to process 250
(a)
Financial Performance & Financial Position
The financial results of the Group for the year ended 30 June 2022 and 2021 are:
30-Jun-22
30-Jun-21
% Change
1,936,037
7,092,069
9,856,330
14,548,991
-72.7%
-32.3%
Cash & Cash equivalents ($)
Net Assets ($)
Revenue ($)
Net Profit (Loss) After Tax ($)
(14,359,734)
(5,894,399)
Profit/(Loss) per Share (Cents)
(3.2924)
(1.7720)
Dividend ($)
-
-
-
-
-143.6%
-85.8%
-
-
(b) Business Strategies and Prospects for future financial years
The Group actively evaluates the prospects of each project as results from each program become available,
these results are available via the ASX platform for shareholders information. The Group then assesses the
continued exploration expenditure and further asset development. The Group will continue the evaluation
and development of its existing mineral projects.
There are specific risks associated with the activities of the Group and general risks which are largely beyond
the control of the Group and the Directors. The risks identified below, or other risk factors, may have a
material impact on the future financial performance of the Group and the market price of the Company’s
shares.
(i) Operating Risks
The operations of the Group may be affected by various factors, including failure to locate or identify mineral
deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties
encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure
or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse
weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
(ii) Environmental Risks
The operations and proposed activities of the Group are subject to the laws and regulations of Australia, the
USA and the Republic of Fiji concerning the environment. As with most exploration projects and mining
operations, the Group’s activities are expected to have an impact on the environment, particularly if
advanced exploration or mine development proceeds. It is the Group’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
(iii) Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and production activities, as well as on its
ability to fund those activities.
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ANNUAL REPORT 2022
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
underground accessways to be able to extract known sections of mineralized vein and to be able to drill
below historical workings.
The Lucky Strike mill is located 50km away from the Gold Links mine and is being upgraded to process 250
tonnes of ore per day.
7.
FINANCIAL REVIEW
(a)
Financial Performance & Financial Position
The financial results of the Group for the year ended 30 June 2022 and 2021 are:
Cash & Cash equivalents ($)
Net Assets ($)
Revenue ($)
Net Profit (Loss) After Tax ($)
Profit/(Loss) per Share (Cents)
Dividend ($)
30-Jun-22
1,936,037
9,856,330
-
(14,359,734)
(3.2924)
-
30-Jun-21
7,092,069
14,548,991
-
(5,894,399)
(1.7720)
-
% Change
-72.7%
-32.3%
-
-143.6%
-85.8%
-
(b) Business Strategies and Prospects for future financial years
The Group actively evaluates the prospects of each project as results from each program become available,
these results are available via the ASX platform for shareholders information. The Group then assesses the
continued exploration expenditure and further asset development. The Group will continue the evaluation
and development of its existing mineral projects.
There are specific risks associated with the activities of the Group and general risks which are largely beyond
the control of the Group and the Directors. The risks identified below, or other risk factors, may have a
material impact on the future financial performance of the Group and the market price of the Company’s
shares.
(i) Operating Risks
The operations of the Group may be affected by various factors, including failure to locate or identify mineral
deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties
encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure
or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse
weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages
or increases in the costs of consumables, spare parts, plant and equipment.
(ii) Environmental Risks
The operations and proposed activities of the Group are subject to the laws and regulations of Australia, the
USA and the Republic of Fiji concerning the environment. As with most exploration projects and mining
operations, the Group’s activities are expected to have an impact on the environment, particularly if
advanced exploration or mine development proceeds. It is the Group’s intention to conduct its activities to
the highest standard of environmental obligation, including compliance with all environmental laws.
(iii) Economic
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration, development and production activities, as well as on its
ability to fund those activities.
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DATELINE RESOURCES
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
(iv) Market conditions
changes in investor sentiment toward particular market sectors;
the demand for, and supply of, capital; and
general economic outlook;
introduction of tax reform or other new legislation;
interest rates and inflation rates;
Share market conditions may affect the value of the Company’s quoted securities regardless of the
Company’s operating performance. Share market conditions are affected by many factors such as:
i.
ii.
iii.
iv. Commodity prices;
v.
vi.
vii. terrorism or other hostilities.
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
11. REMUNERATION REPORT (Audited)
The Board of Dateline Resources Limited is responsible for determining and reviewing the remuneration of
the Directors of the Company, within parameters approved by shareholders. No performance hurdles have
been imposed so far, due to the size of the Group and the structure of the remuneration in respect of the non-
executive Directors. Remuneration is not related to the company’s financial performance. Accounting and
administration services were provided by consultants at reasonable commercial rates.
The Company's Key Management Personnel comprise all of the Directors.
Company Secretarial services were provided by Mr. J Smith and Mr. M Ohlsson.
Remuneration of executives and consultants, whenever appointed, is determined by market conditions and is
not linked to the Group’s performance. There are no service agreements in place relating to Directors' fees
paid.
During the 2021 financial year at the Company’s 2020 Annual General Meeting held on 4 December 2020,
shareholders approved the issue of a total of 19,704,184 unlisted options to Directors Mr. Johnson, Mr.
Baghdadi, Mr Hall and Mr. Ferguson i.e. 4,926,046 each. These options were subsequently issued on 11
December 2020 with an exercise price of $0.09575 and an expiry date of 11 December 2024. The options also
have 3 separate vesting conditions, i.e. they will become capable of exercise in three separate tranches
subject to the satisfaction of the following three performance/vesting hurdles:
1. one third of the Options granted to each of the above named Directors will vest immediately
following the commencement of production by the Company (or any of its subsidiaries) of ore at the
rate of 30,000 tonnes per annum;
2. an additional one third of the Options granted to each of the above named directors will vest
immediately following the Company reporting that its proven JORC reserve has increased to 60,000
tonnes of gold bearing ore; and
3. the remaining one third of the Options granted to each of the above named Directors will vest
immediately following the commencement of production by the Company (or any of its subsidiaries)
of ore at the rate of 60,000 tonnes per annum.
Subject to the achievement of the above referred performance hurdles, no amount is payable by a Director
in order to exercise their Options.
No equity based payments or other benefits were paid to Directors or consultants during the year under
review; no shares or options were issued by way of remuneration.
Directors
Position
Duration of Appointment
Mark Johnson
Non-Executive Chairman
Appointed 22 April 2013
Stephen Baghdadi
Managing Director
Appointed 4 July 2014
Gregory Hall
Non-Executive Director
Appointed 19 January 2015
Tony Ferguson
Non-Executive Director
Appointed 29 August 2019
Bill Lannen
Non-Executive Director
Appointed 15 January 2021
The market price of securities can fall as well as rise and may be subject to varied and unpredictable
influences on the market for equities in general and resource exploration stocks in particular. Neither the
Company nor the Directors warrant the future performance of the Company or any return on an investment
in the Company.
8. SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Company during the year ended 30 June
2022.
9. AFTER BALANCE SHEET DATE EVENTS
On 31 August 2022 the Company announced the issue of 44,067,500 fully paid ordinary shares raising
$4,406,750 (before costs) at $0.10 per new share.
The Gold Links mining contractor commenced legal action against the Company for US$850k, whilst the
Company is claiming a similar amount pursuant to the rights under the mining contract.
No other matter or event has arisen since 30 June 2022 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise disclosed in the Group’s
financial report.
10. ENVIRONMENTAL ISSUES
The Group needs to comply with environmental regulations at the sites where it has exploration activities.
The Board is not aware of any breach of environmental requirements as they apply to the Group.
12
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ANNUAL REPORT 2022
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
11. REMUNERATION REPORT (Audited)
The Board of Dateline Resources Limited is responsible for determining and reviewing the remuneration of
the Directors of the Company, within parameters approved by shareholders. No performance hurdles have
been imposed so far, due to the size of the Group and the structure of the remuneration in respect of the non-
executive Directors. Remuneration is not related to the company’s financial performance. Accounting and
administration services were provided by consultants at reasonable commercial rates.
The Company's Key Management Personnel comprise all of the Directors.
Company Secretarial services were provided by Mr. J Smith and Mr. M Ohlsson.
Remuneration of executives and consultants, whenever appointed, is determined by market conditions and is
not linked to the Group’s performance. There are no service agreements in place relating to Directors' fees
paid.
During the 2021 financial year at the Company’s 2020 Annual General Meeting held on 4 December 2020,
shareholders approved the issue of a total of 19,704,184 unlisted options to Directors Mr. Johnson, Mr.
Baghdadi, Mr Hall and Mr. Ferguson i.e. 4,926,046 each. These options were subsequently issued on 11
December 2020 with an exercise price of $0.09575 and an expiry date of 11 December 2024. The options also
have 3 separate vesting conditions, i.e. they will become capable of exercise in three separate tranches
subject to the satisfaction of the following three performance/vesting hurdles:
1. one third of the Options granted to each of the above named Directors will vest immediately
following the commencement of production by the Company (or any of its subsidiaries) of ore at the
rate of 30,000 tonnes per annum;
2. an additional one third of the Options granted to each of the above named directors will vest
immediately following the Company reporting that its proven JORC reserve has increased to 60,000
tonnes of gold bearing ore; and
3. the remaining one third of the Options granted to each of the above named Directors will vest
immediately following the commencement of production by the Company (or any of its subsidiaries)
of ore at the rate of 60,000 tonnes per annum.
Subject to the achievement of the above referred performance hurdles, no amount is payable by a Director
in order to exercise their Options.
No equity based payments or other benefits were paid to Directors or consultants during the year under
review; no shares or options were issued by way of remuneration.
Directors
Position
Duration of Appointment
Mark Johnson
Non-Executive Chairman
Appointed 22 April 2013
Stephen Baghdadi
Managing Director
Appointed 4 July 2014
Gregory Hall
Non-Executive Director
Appointed 19 January 2015
Tony Ferguson
Non-Executive Director
Appointed 29 August 2019
Bill Lannen
Non-Executive Director
Appointed 15 January 2021
7 | P a g e
13
DATELINE RESOURCES
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
Details of remuneration of the KMP of Dateline Resources Limited are shown below:
Position
Mr Johnson
Mr Johnson
Mr Baghdadi
Mr Baghdadi
Mr Hall
Mr Hall
Mr Ferguson
Mr Ferguson
Mr Lannen
Mr Lannen
Mr Smith
Mr Ohlsson
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Director
Consultant
Company Secretary
Company Secretary
2022
$
-
-
-
480,000
-
-
-
-
-
-
33,500
26,640
2021
$
-
-
-
480,000
-
-
-
-
-
-
66,000
-
Total
540,140
546,000
None of the current Directors have received Director’s fees from the Company since their appointment.
Dateline Resources Limited, as an ASX listed company, has produced the Remuneration Report in
accordance with Section 300A of the Corporations Act 2001.
Key management personnel holdings
(i) UNLISTED OPTIONS OF KMP'S
Details of unlisted options held directly, indirectly or beneficially by key management personnel and their
related parties at any time during the financial year ended 30 June 2022 are set out below.
Company Directors
and Related Parties
Opening
Balance
Received as
Remuneration
Exercise of
Options
Net Change
Other
Closing
Balance
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
4,926,046
4,926,046
4,926,046
4,926,046
19,704,184
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,926,046
4,926,046
4,926,046
4,926,046
19,704,184
(ii) NON-RECOURSE LOANS OF KMP'S
During the 2021 year there were Non-Recourse Loans to purchase shares issued to key management
personnel, which under AASB2 are considered to be options. These amounts to purchase shares are listed
below. There were no other non-recourse loans issued to key management personnel during the 2022
financial year.
Company Directors
and Related Parties
Opening
Balance
Received as
Remuneration
Exercise
of Options
Net Change
Other
Closing
Balance
Mr Baghdadi
Mr Lannen
1,132,990
169,949
1,302,939
-
-
-
-
-
-
-
-
-
1,132,990
169,949
1,302,939
8 | P a g e
14
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2022 are set out below.
Company Directors
and Related
Opening
Balance
Received as
Remuneration
Exercise of
Options
Net Change
Other
Closing
Balance
DATELINE RESOURCES LIMITED
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
(iii) SHAREHOLDINGS OF KMP'S
Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
Company Directors
and Related
Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
75,780,551
23,692,430
2,099,995
10,900,000
2,463,023
114,935,999
63,897,385
3,272,275
2,099,995
10,000,000
-
79,269,655
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2021 are set out below:
Opening
Balance
Received as
Remuneration
Exercise of
Options
Net Change
Other
Closing
Balance
20,619,920
500,000
2,311,111
-
1,111,111
96,900,471
26,003,541
2,099,995
12,011,111
2,463,023
20,619,920
3,922,222
139,478,141
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,883,166
20,420,155
-
900,000
2,463,023
75,780,551
23,692,430
2,099,995
10,900,000
2,463,023
35,666,344
114,935,999
As the Company is not yet in the production phase, and therefore, not generating revenue, there is no direct
link between performance and shareholder wealth.
The adoption of the Remuneration Report for the financial year ended 30 June 2021 was put to the
shareholders of the Company at the Annual General Meeting held on 31 January 2022. The resolution was
passed by a poll of shareholders without amendment. The Company did not receive any specific feedback at
the AGM or throughout the year on its remuneration practices.
End of remuneration report.
12. OPTIONS
At the date of this report, there were 47,904,184 unlisted options as depicted below:
Number
Exercise
Price
Grant Date
Expiry date
Vesting
4,000,000
7,000,000
7,200,000
5,000,000
2,000,000
1,000,000
2,000,000
$0.20
$0.135
$0.11
$0.10
$0.20
$0.15
$0.13
28 Mar 2021
25 Feb 2023 Delineate 1m oz gold
30 Jul 2021
30 Jul 2023
27 Apr 2022
27 Apr 2024
30 Jun 2022
30 Jun 2024
Immediate
Immediate
Immediate
30 Jun 2022
30 Jun 2022
30 Jun 2022
30 Jun 2024 Escrow 9 months
30 Jun 2024 Escrow 9 months
30 Jun 2024 Escrow 9 months
19,704,184
$0.0958
11 Dec 2020
11 Dec 2024
9 | P a g e
ANNUAL REPORT 2022
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
(iii) SHAREHOLDINGS OF KMP'S
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2022 are set out below.
Company Directors
and Related
Received as
Remuneration
Exercise of
Options
Net Change
Other
Opening
Balance
Closing
Balance
Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
75,780,551
23,692,430
2,099,995
10,900,000
2,463,023
114,935,999
-
-
-
-
-
-
20,619,920
-
-
-
-
20,619,920
500,000
2,311,111
-
1,111,111
3,922,222
96,900,471
26,003,541
2,099,995
12,011,111
2,463,023
139,478,141
Details of shares held directly, indirectly or beneficially by key management personnel and their related
parties at any time during the financial year ended 30 June 2021 are set out below:
Company Directors
and Related
Received as
Remuneration
Exercise of
Options
Net Change
Other
Opening
Balance
Closing
Balance
Parties
Mr Johnson
Mr Baghdadi
Mr Hall
Mr Ferguson
Mr Lannen
63,897,385
3,272,275
2,099,995
10,000,000
-
79,269,655
-
-
-
-
-
-
-
-
-
-
-
-
11,883,166
20,420,155
-
900,000
2,463,023
35,666,344
75,780,551
23,692,430
2,099,995
10,900,000
2,463,023
114,935,999
As the Company is not yet in the production phase, and therefore, not generating revenue, there is no direct
link between performance and shareholder wealth.
The adoption of the Remuneration Report for the financial year ended 30 June 2021 was put to the
shareholders of the Company at the Annual General Meeting held on 31 January 2022. The resolution was
passed by a poll of shareholders without amendment. The Company did not receive any specific feedback at
the AGM or throughout the year on its remuneration practices.
End of remuneration report.
12. OPTIONS
At the date of this report, there were 47,904,184 unlisted options as depicted below:
Number
Exercise
Price
4,000,000
7,000,000
7,200,000
5,000,000
2,000,000
1,000,000
2,000,000
19,704,184
$0.20
$0.135
$0.11
$0.10
$0.20
$0.15
$0.13
$0.0958
Grant Date
Expiry date
Vesting
28 Mar 2021
30 Jul 2021
27 Apr 2022
30 Jun 2022
30 Jun 2022
30 Jun 2022
30 Jun 2022
11 Dec 2020
Immediate
Immediate
Immediate
25 Feb 2023 Delineate 1m oz gold
30 Jul 2023
27 Apr 2024
30 Jun 2024
30 Jun 2024 Escrow 9 months
30 Jun 2024 Escrow 9 months
30 Jun 2024 Escrow 9 months
11 Dec 2024
9 | P a g e
15
DATELINE RESOURCES
DIRECTORS’ REPORT
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
DIRECTORS’ REPORT
FOR THE YEAR ENDED 30 JUNE 2022
19,704,184 options vesting in 3 equal tranches. The first at a production rate of 30k tonnes p.a. The second
upon proven JORC reserve of 60k tonnes and the third at a production rate of 60k tonnes p.a.
6,000,000 options with an exercise price of $0.15 expired on 28 February 2022.
10,000,000 options with an exercise price of $0.025 expired on 31 December 2020.
During the 2021 year there were Non-Recourse Loans to purchase share in the company issued to 2 Directors
(and approved by shareholders at General Meeting 21 May 2021) which under AASB2 are considered to be
options. These are listed below:
Company Directors
Mr Baghdadi
Mr Lannen
TOTAL
Amount
$1,132,990
$169,949
$1,302,939
13. PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the
purposes of taking responsibility on behalf of the Group for all or part of those proceedings.
14. INDEMNIFICATION OF OFFICERS AND AUDITORS
During the financial year no premium was paid to insure Directors against claims while acting as a Director.
No indemnity has been granted to the Auditor of the Company.
15. NON-AUDIT SERVICES
No non-audit services were provided by HLB Mann Judd (NSW) Pty Ltd to the Group during the financial year.
16. LEAD AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for
the financial year ended 30 June 2022 has been received and can be found on page 11.
Signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Mr Mark Johnson
Non-Executive Chairman
4 October 2022
Auditor’s Independence Declaration
To the directors of Dateline Resources Limited:
As lead auditor for the audit of the consolidated financial report of Dateline Resources Limited for the year
ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
audit; and
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
(b)
any applicable code of professional conduct in relation to the audit.
This declaration is in relation to Dateline Resources Limited and the entities it controlled during the period.
Sydney, NSW
4 October 2022
M D Muller
Director
16
11 | P a g e
10 | P a g e
ANNUAL REPORT 2022
AUDITOR’S INDEPENDENCE DECLARATION
Auditor’s Independence Declaration
To the directors of Dateline Resources Limited:
As lead auditor for the audit of the consolidated financial report of Dateline Resources Limited for the year
ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the
audit; and
(b)
any applicable code of professional conduct in relation to the audit.
This declaration is in relation to Dateline Resources Limited and the entities it controlled during the period.
Sydney, NSW
4 October 2022
M D Muller
Director
11 | P a g e
17
DATELINE RESOURCES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
DATELINE RESOURCES LIMITED
COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Continuing operations
Interest income
Other income
Unrealised exchange gain/(loss)
Interest expense
Borrowing costs
Employee and contractor costs
Mining and exploration expenses
Profit/(loss) on sale of asset
Depreciation expense
Share based payments expense
Option valuation expense
Administration expenses
Profit/(Loss) from continuing operations before income tax
Income tax expense
Profit/(loss) from continuing operations after income tax
Other comprehensive profit/(loss)
Items that may be reclassified subsequently to profit or loss:
Foreign Currency Translation Reserve
Total comprehensive profit/(loss) for the period
Profit/(loss) for the year is attributable to:
Owners of the Company
Total comprehensive profit/(loss) for the year attributable to:
Owners of the Company
Note 30-Jun-22
$
30-Jun-21
$
5
6
7
-
169,686
(389,136)
(1,608,787)
(138,389)
(4,365,653)
(2,043,347)
48,561
735
168,645
521,875
(920,466)
(744,002)
(450,626)
(545,733)
(1,947)
(1,268,920)
(580,360)
(316,568)
(1,484,939)
(346,593)
(149,786)
(4,100,588)
(1,707,795)
(14,359,734)
(5,894,399)
-
-
(14,359,734)
(5,894,399)
(1,623,346)
14,515
(15,983,080)
(5,879,884)
(14,359,734)
(14,359,734)
(5,894,399)
(5,894,399)
(15,983,080)
(15,983,080)
(5,879,884)
(5,879,884)
Profit/(loss) per share from continuing operations
attributable to the ordinary equity holders of the Company:
Basic and diluted profit/(loss) per share – cents per share
Cents
18
(3.29)
Cents
(1.77)
This Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with
the accompanying notes
18
12 | P a g e
Note
30-Jun-22
30-Jun-21
$
$
8
9
4
10
11
12
10
19
13
14
15
20
13
14
15
20
1,936,037
36,659
1,348,251
661,813
3,982,760
7,092,069
355,614
-
1,057,795
8,505,478
16,989,702
8,531,559
18,122,570
15,457,451
1,117,725
3,018,444
37,716,190
25,521,261
41,698,950
34,026,739
1,462,525
9,949,980
3,283,940
947,274
1,960,983
16,142,177
1,462,525
-
-
-
-
-
-
848,071
13,052,149
1,800,223
5,934,953
2,988,552
9,091,718
-
15,700,443
18,015,223
31,842,620
19,477,748
9,856,330
14,548,991
Current Assets
Cash & cash equivalents
Trade & other receivables
Inventory
Financial assets
Total Current Assets
Non-Current Assets
Plant & equipment land & buildings
Exploration & evaluation expenditure
Financial Assets
Right-of-use assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease liabilities
Total Current Liabilities
Non Current Liabilities
Trade & other payables
Financial liabilities to related parties
Long term loan
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Equity attributable to the equity holders of the Company
16(a)
17
46,986,850
36,942,050
548,385
926,112
(37,678,905)
(23,319,171)
9,856,330
14,548,991
13 | P a g e
ANNUAL REPORT 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
AS AT 30 JUNE 2022
Current Assets
Cash & cash equivalents
Trade & other receivables
Inventory
Financial assets
Total Current Assets
Non-Current Assets
Plant & equipment land & buildings
Exploration & evaluation expenditure
Financial Assets
Right-of-use assets
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade & other payables
Financial liabilities to related parties
Short term loans
Lease liabilities
Total Current Liabilities
Non Current Liabilities
Trade & other payables
Financial liabilities to related parties
Long term loan
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
Note
30-Jun-22
30-Jun-21
$
$
8
9
4
10
11
12
10
19
13
14
15
20
13
14
15
20
1,936,037
36,659
1,348,251
661,813
3,982,760
7,092,069
355,614
-
1,057,795
8,505,478
18,122,570
15,457,451
1,117,725
3,018,444
16,989,702
8,531,559
-
-
37,716,190
25,521,261
41,698,950
34,026,739
9,949,980
3,283,940
947,274
1,960,983
1,462,525
-
-
-
16,142,177
1,462,525
-
848,071
13,052,149
1,800,223
5,934,953
2,988,552
9,091,718
-
15,700,443
18,015,223
31,842,620
19,477,748
9,856,330
14,548,991
Equity attributable to the equity holders of the Company
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
16(a)
17
46,986,850
36,942,050
548,385
926,112
(37,678,905)
(23,319,171)
9,856,330
14,548,991
13 | P a g e
19
DATELINE RESOURCES
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
Net cash flows used in operating activities
8a
(10,941,610)
(2,313,312)
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows used in operating activities
Payment to suppliers and employees
Interest paid
Cash flows used in investing activities
Payment for fixed assets
Deposits paid
Deposits refunded
Proceeds from sale of fixed assets
Cash flows from financing activities
Repayment of loans
Advance of related party loans
Proceeds from issue of shares
Transaction costs relating to share issues
Proceeds from borrowings
Borrowing costs
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Note
30-Jun-22
30-Jun-21
$
$
(10,264,377)
(2,070,966)
(677,233)
(242,346)
-
-
-
-
(877,693)
(872,632)
(1,850,758)
(1,466,105)
770,244
48,561
(135,984)
(3,120,255)
3,100,000
8,329,508
(759,694)
4,733,370
(365,547)
1,010,929
13,280,270
-
14,901,653
11,170,944
(5,156,032)
7,092,069
6,933,707
158,362
Payment for exploration & evaluation expenditure
(6,618,017)
(173,600)
Net cash flows used in investing activities
(9,116,075)
(1,923,925)
Cash and cash equivalents at end of year
8
1,936,037
7,092,069
This Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes
This Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes
14 | P a g e
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20
ANNUAL REPORT 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows used in operating activities
Payment to suppliers and employees
Interest paid
Note
30-Jun-22
$
30-Jun-21
$
(10,264,377)
(2,070,966)
(677,233)
(242,346)
Net cash flows used in operating activities
8a
(10,941,610)
(2,313,312)
Cash flows used in investing activities
Payment for fixed assets
Deposits paid
Deposits refunded
Proceeds from sale of fixed assets
(1,850,758)
(1,466,105)
770,244
48,561
(877,693)
(872,632)
-
-
Payment for exploration & evaluation expenditure
(6,618,017)
(173,600)
Net cash flows used in investing activities
(9,116,075)
(1,923,925)
Cash flows from financing activities
Repayment of loans
Advance of related party loans
Proceeds from issue of shares
Transaction costs relating to share issues
Proceeds from borrowings
Borrowing costs
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
(135,984)
(3,120,255)
3,100,000
8,329,508
(759,694)
4,733,370
(365,547)
14,901,653
(5,156,032)
7,092,069
-
1,010,929
-
13,280,270
-
11,170,944
6,933,707
158,362
Cash and cash equivalents at end of year
8
1,936,037
7,092,069
This Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes
15 | P a g e
21
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
1
REPORTING ENTITY
The financial report includes financial statements for the consolidated entity consisting of Dateline Resources
Limited (the “Company”) and the entities it controlled during the year (“the Group”). The Company is a
company limited by shares incorporated in Australia whose shares are publicly traded on the Australian
Securities Exchange Limited (“ASX”). The Company is a for-profit entity for the purposes of preparing the
financial statements. The address of its registered office and principal place of business is disclosed in the
Corporate Directory of the annual report.
The nature of the operations and principal activities of the Group are described in the Directors’ Report.
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently in these financial statements.
(a)
Statement of compliance
The financial report is a general-purpose financial report which has been prepared in accordance with
Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian
Accounting Standards Board (AASB) and the Corporations Act 2001. The financial report of the Group also
complies with International Financial Reporting Standards (IFRSs) and interpretations adopted by the
International Accounting Standards Board.
The financial statements were approved by the Board of Directors on 4 October 2022.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis unless otherwise stated.
(c)
Principles of consolidation
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the group. They are deconsolidated from the date that
control ceases. The acquisition method of accounting is used to account for business combinations by the
Group
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
(d)
Foreign currency transactions
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”).
The consolidated financial statements are presented in Australian dollars, which is Dateline Resources
Limited, Dateline Fiji Pty Limited and Gunnison Gold Pty Limited’s functional and presentation currency.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net
investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented
in the income statement, within finance costs. All other foreign exchange gains and losses are presented in
the income statement on a net basis within other income or other expenses.
(e)
Revenue recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Sale of goods is recognised at the point of sale, which is where the customer has taken delivery of the goods,
the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
Sale of goods
Interest
Other revenue
22
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ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate
to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net
investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented
in the income statement, within finance costs. All other foreign exchange gains and losses are presented in
the income statement on a net basis within other income or other expenses.
(e)
Revenue recognition
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is
expected to be entitled in exchange for transferring goods or services to a customer. For each contract with
a customer, the consolidated entity: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer
such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to
the constraining principle are recognised as a refund liability.
Sale of goods
Sale of goods is recognised at the point of sale, which is where the customer has taken delivery of the goods,
the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
17 | P a g e
23
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
New accounting standards and interpretations
(f)
The Group has applied all new, revised or amending Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board that are mandatory for the current reporting period. These and
together with other amending Accounting Standards and Interpretations commencing from 1 July 2021 did
not result in any material adjustments to the amounts recognised or disclosures in the financial report.
Going concern
(g)
The financial report has been prepared on a going concern basis, which contemplates the continuity of
normal business activities and the realisation of assets and liabilities in the normal course of business.
During the year, the consolidated entity incurred a net loss of $14,359,734 (2021: $5,894,399 loss) a net cash
outflow of $5,156,032 (2021: $6,933,707 inflow) and net cash out flow from operations of $10,941,610
(2021: $2,313,312). As at 30 June 2022, the consolidated entity also had a working capital deficit of
$12,159,417 (2021: surplus $7,042,953).
The ability of the Group to continue as a going concern is dependent upon the Group being able to generate
sufficient funds to satisfy exploration commitments and working capital requirements. The Company has
taken steps to ensure that it has adequate working capital to not only satisfy existing commitments but to
also future expenditure required to meet its objectives. These include
• A capital raising in July 2021 of $4,100,000,
• The finalisation in January 2022 of a US$3,000,000 (approximately A$4,350,000) loan facility at
attractive rates which is repayable over a 10-year period.
• A capital raising in April 2022 of $243,100
• A capital raising in June 2022 of $4,305,000
• A capital raising in August 2022 of $4,406,750
• The consolidated entity’s projected cash flow analysis supporting its ability to meet its financial
obligations, whereby we will control expenditure accordingly to our level of cash inflows.
• Mining and milling which will continue at Gunnison and Sooner Lucky Strike and gold concentrate will
be sold.
• Additional funding that may be raised through various transactions including future fundraising from
financial institutions and the market; and
Issuing equity to settle future liabilities, if appropriate.
•
As a result of the above, the Company is very well placed to execute its corporate strategy and the directors
believe that the going concern basis for the preparation of the financial report of the Group is appropriate.
Should the Company not be able to execute its corporate strategy there will be a material uncertainty that
exists relating to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. No adjustment has been made in relation to the recoverability and classification of
recorded assets amounts and classification of liabilities that might be necessary should the consolidated
entity not continue as a going concern.
Reverse Acquisition Accounting
(h)
Dateline Resources Limited is listed on the Australian Securities Exchange. Dateline Resources Limited
completed the legal acquisition of Dateline Fiji Pty Limited on 3rd October 2013.
Under the principles of AASB 3 Business Combinations Dateline Fiji Pty Limited was deemed to be the acquirer
for accounting purposes. Therefore, the transaction has been accounted for as a reverse acquisition under
AASB3. Accordingly, the consolidated financial statements of Dateline Resources Limited have been prepared
as a continuation of the consolidated financial statements of Dateline Fiji Pty Limited.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(i)
Income tax
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is recognised except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit; and in respect of taxable temporary
differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that it is probable that the temporary differences will not reverse
in the foreseeable future and the group is able to control the timing of the reversal of the temporary
differences.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred tax assets and deferred tax liabilities shall be offset only if:
(j)
there is a legally enforceable right to set-off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Profit or Loss and Other Comprehensive Income.
(i)
Other taxes
Revenues, expenses, assets and liabilities are recognised net of the amount of GST except where the GST
incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and receivables and payables are stated with amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Commitments or contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk or changes in value, and bank overdrafts.
taxation authority.
(j)
Cash and cash equivalents
(k)
Plant and equipment
Owned assets
impairment losses.
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and any
24
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ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Income tax
(i)
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is recognised except where the deferred income tax liability arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit; and in respect of taxable temporary
differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred
tax assets are only recognised to the extent that it is probable that the temporary differences will not reverse
in the foreseeable future and the group is able to control the timing of the reversal of the temporary
differences.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Deferred tax assets and deferred tax liabilities shall be offset only if:
(j)
(ii) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
there is a legally enforceable right to set-off current tax assets against current tax liabilities; and
authority on either:
(a) the same taxable entity; or
(b) different taxable entities which intend either to settle current tax liabilities and assets on a net
basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantially enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement
of Profit or Loss and Other Comprehensive Income.
Other taxes
(i)
Revenues, expenses, assets and liabilities are recognised net of the amount of GST except where the GST
incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as
applicable; and receivables and payables are stated with amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Commitments or contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Cash and cash equivalents
(j)
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk or changes in value, and bank overdrafts.
Plant and equipment
(k)
Owned assets
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and any
impairment losses.
19 | P a g e
25
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a work condition for its intended use, and the costs of dismantling and removing the
items and restoring the site on which they are located. Purchased software that is integral to the functionality
of the related equipment is capitalised as part of that equipment.
When parts of an item of plant and equipment have different useful lives, they are accounted for as separate
items (major components).
Subsequent costs
The Group recognises in the carrying amount of an item of plant and equipment the cost of replacing part of
such an item when that cost is incurred if it is probable that the future economic benefits embodied within
the item will flow to the Group and the cost of the item can be measured reliably. All other costs are
recognised in the profit or loss as an expense as incurred.
Depreciation
Depreciation is charged to the profit or loss using a straight-line method over the estimated useful lives of
each part of an item of plant and equipment.
Plant and equipment 3 years.
Office equipment 3 years.
Fixtures and fittings 3 years.
The estimated useful lives in the current financial year are as follows:
-
-
-
- Motor Vehicles 3 years.
- Mining equipment 10 years.
The residual value, the useful life and the depreciation method applied to an asset are reassessed at least
annually. Depreciation is commenced on plant, property and equipment once they are ready for use.
(l)
Exploration and evaluation
Exploration costs are accounted for under the "Area of Interest" method, whereby costs are carried forward
provided that rights to tenure of the area of interest are current and either there is a reasonable probability
of recoupment through successful development and exploitation or by their sale, or exploration activities in
the area have not reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable mineral reserves and active and significant operations in, or in relation to, the area
are continuing. The ultimate recoupment of costs carried forward in respect of areas of interest still in the
exploration or evaluation phases is dependent upon successful development and commercial exploitation,
or alternatively, sale of the respective areas. Exploration & Evaluation Assets are assessed for impairment
when facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
(m)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
(n)
Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(o)
Earnings per share
Basic earnings per share
shares issued during the year.
Diluted earnings per share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members
of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
(p)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
26
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ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(o)
Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing net profit or loss after income tax attributable to members
of the Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after-income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
(p)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.
When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is
written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period
as to whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
21 | P a g e
27
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial
asset has become credit impaired or where it is determined that credit risk has increased significantly, the
loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(q)
Share Based Payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of
the option, together with non-vesting conditions that do not determine whether the consolidated entity
receives the services that entitle the employees to receive payment. No account is taken of any other vesting
conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair
value of the award, the best estimate of the number of awards that are likely to vest and the expired portion
of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount
calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and
conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the
liability is calculated as follows:
• during the vesting period, the liability at each reporting date is the fair value of the award at that date
•
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to
market conditions are considered to vest irrespective of whether or not that market condition has been met,
provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not
been made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity
or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
(r)
Borrowings
(s)
Convertible Notes
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability
in the statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the
amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the
passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion
option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction
costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The
corresponding interest on convertible notes is expensed to profit or loss.
(t)
Critical accounting estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The Directors evaluate estimates and judgments incorporated into the financial report
based on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both externally
and within the Group. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
(i)
Exploration & Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation is set out in Note 2(l) above. If, after having
capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the
expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the
Statement of Profit or Loss and Other Comprehensive Income.
(ii)
Discounting
The Group has discounted non-interest bearing payables to the vendors of acquired subsidiaries, refer note
13. This discount rate is reviewed annually.
28
22 | P a g e
23 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy
the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity
or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
(r)
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
(s)
Convertible Notes
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability
in the statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the
amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the
passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion
option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction
costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The
corresponding interest on convertible notes is expensed to profit or loss.
(t)
Critical accounting estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. The Directors evaluate estimates and judgments incorporated into the financial report
based on historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both externally
and within the Group. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognised in the financial
statements are described in the following notes:
(i)
Exploration & Evaluation Expenditure
The Group’s accounting policy for exploration and evaluation is set out in Note 2(l) above. If, after having
capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the
expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the
Statement of Profit or Loss and Other Comprehensive Income.
(ii)
Discounting
The Group has discounted non-interest bearing payables to the vendors of acquired subsidiaries, refer note
13. This discount rate is reviewed annually.
23 | P a g e
29
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(iii)
Share Based Payments
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is determined by
using the Black-Scholes model taking into account the terms and conditions upon which the instruments
were granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
period but may impact profit or loss and equity. Refer to note 17 for further information.
(iv)
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease
liability. Judgement is exercised in determining whether there is reasonable certainty that an option to
extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will
not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease
term, all facts and circumstances that create an economical incentive to exercise an extension option, or not
to exercise a termination option, are considered at the lease commencement date. Factors considered may
include the importance of the asset to the consolidated entity's operations; comparison of terms and
conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold
improvements; and the costs and disruption to replace the asset. The consolidated entity reassesses whether
it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a
significant event or significant change in circumstances.
(v)
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what the consolidated entity estimates it would have to pay a
third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with
similar terms, security and economic environment
(u)
Inventory
Inventories are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost comprises
direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion
of variable and fixed overhead expenditure based on normal operating capacity.
Cost is determined on the following basis:
(a)
(b)
(c)
Gold and other metals on hand is valued on an average total production cost method
Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage
A proportion of related depreciation and amortisation charge is included in the cost of inventory
the period in which they are incurred.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery
costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessary to make the sale.
30
24 | P a g e
25 | P a g e
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(v)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial direct
costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be
incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
(w)
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable,
variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to
profit or loss if the carrying amount of the right-of-use asset is fully written down.
(x)
Finance costs
Finance costs attributable the group’s financial arrangements are capitalised as part of the borrowing and
amortised over the term of that borrowing or financial instrument. All other finance costs are expensed in
3
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The segments are consistent with the internal management reporting information that is regularly reviewed
by the chief operating decision maker, being the Board of Directors.
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(v)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial direct
costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be
incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
(w)
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable,
variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties.
When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to
profit or loss if the carrying amount of the right-of-use asset is fully written down.
(x)
Finance costs
Finance costs attributable the group’s financial arrangements are capitalised as part of the borrowing and
amortised over the term of that borrowing or financial instrument. All other finance costs are expensed in
the period in which they are incurred.
3
SEGMENT INFORMATION
AASB 8 requires operating segments to be identified on the basis of internal reports about components of
the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources
to the segment and to assess its performance.
The segments are consistent with the internal management reporting information that is regularly reviewed
by the chief operating decision maker, being the Board of Directors.
25 | P a g e
31
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The reportable segments are based on aggregated operating segments determined by the similarity of
economic characteristics, the nature of the activities and the regulatory environment in which those
segments operate.
Management has identified three reportable operating segments based on the three principal locations of
its projects – Australia, USA and Fiji. Unallocated results, assets and liabilities represent corporate amounts
that are not core to the reportable segments. Segment assets include the costs to acquire tenements and
the capitalised exploration costs of those tenements.
30 June 2022
Australia
USA
Fiji
Consolidation
Entries
TOTAL
A$
A$
A$
A$
A$
Revenues
-
2,773,721
Segment Result
(5,744,288)
(8,125,100)
-
-
(2,773,721)
-
(490,346)
(14,359,734)
Total Segment Assets
52,559,236
40,077,675
4,501,504
(55,439,464)
41,698,951
Total Segment Liabilities
16,232,028
32,446,335
5,257,672
(22,093,415)
31,842,620
30 June 2021
Revenues
A$
-
A$
750,350
Segment Result
(3,053,250)
(2,260,179)
A$
-
-
A$
A$
(580,970)
169,380
(580,970)
(5,894,399)
Total Segment Assets
40,912,364
27,683,210
4,457,293
(39,026,128)
34,026,739
Total Segment Liabilities
10,131,282
10,429,005
5,212,265
(6,294,804)
19,477,748
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
4
INVENTORY (CURRENT)
Gold & Silver concentrate on hand
Gold & Silver on hand as at 30 June 2022 has a net realisable
value of $1,348,251 (2021: $nil) measured at the spot rate of
$2,623 (gold) and $29.44 (silver) per ounce and allowing for
processing and other costs (2021: n/a).
30-Jun-22
30-Jun-21
$
$
1,348,251
1,348,251
-
-
30-Jun-22
30-Jun-21
169,686
169,686
168,645
168,645
3,999,098
1,650,633
101,490
57,162
4,100,588
1,707,795
$
$
$
$
$
$
-
-
-
-
-
-
5
OTHER INCOME
Other Income
(a)
Income tax expense
Current tax
Deferred tax
6.
ADMINISTRATION EXPENSES
30-Jun-22
30-Jun-21
Consulting and corporate expenses
Compliance and regulatory expenses
7.
INCOME TAX EXPENSE
30-Jun-22
30-Jun-21
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
(14,359,734)
Tax at the Australian tax rate of 25% (2021 - 26%)
(3,589,934)
(5,894,399)
(1,532,544)
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Temporary difference not brought to account
3,589,934
1,532,544
-
-
Income tax expense
(c)
Tax losses
Unused tax losses *
* The entities in the group have not formed a tax consolidated group and the unused tax losses
consists of tax losses from entities in the group calculated on a stand alone basis.
8
CASH & CASH EQUIVALENTS
30-Jun-22
30-Jun-21
13,184,191
9,594,258
32
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27 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
4
INVENTORY (CURRENT)
Gold & Silver concentrate on hand
30-Jun-22
30-Jun-21
$
$
1,348,251
1,348,251
-
-
Gold & Silver on hand as at 30 June 2022 has a net realisable
value of $1,348,251 (2021: $nil) measured at the spot rate of
$2,623 (gold) and $29.44 (silver) per ounce and allowing for
processing and other costs (2021: n/a).
5
OTHER INCOME
Other Income
6.
ADMINISTRATION EXPENSES
Consulting and corporate expenses
Compliance and regulatory expenses
7.
INCOME TAX EXPENSE
(a)
Income tax expense
Current tax
Deferred tax
30-Jun-22
30-Jun-21
$
169,686
169,686
$
168,645
168,645
30-Jun-22
30-Jun-21
$
3,999,098
$
1,650,633
101,490
4,100,588
57,162
1,707,795
30-Jun-22
30-Jun-21
$
$
-
-
-
-
-
-
(b) Numerical reconciliation of income tax expense to
prima facie tax payable
Loss from continuing operations before income tax expense
Tax at the Australian tax rate of 25% (2021 - 26%)
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Temporary difference not brought to account
Income tax expense
(14,359,734)
(3,589,934)
(5,894,399)
(1,532,544)
3,589,934
-
1,532,544
-
(c)
Tax losses
Unused tax losses *
9,594,258
* The entities in the group have not formed a tax consolidated group and the unused tax losses
consists of tax losses from entities in the group calculated on a stand alone basis.
30-Jun-22
8
CASH & CASH EQUIVALENTS
13,184,191
30-Jun-21
27 | P a g e
33
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Cash at bank and in hand
$
1,936,037
1,936,037
$
7,092,069
7,092,069
Reconciliation of net (loss) after tax to net cash flows used in operating activities
(a) Net profit / (loss) after income tax
Adjustments for:
Depreciation
Debt forgiveness
Foreign exchange
Share based payments and option valuation
Proceeds from sale of PPE
Borrowing costs
Finance costs
Change in assets and liabilities
(Increase)/decrease in inventory
Increase/(decrease) in trade and other payables
Net cash flows used in operating activities
(b) Non-Cash Financing and Investing Activities
Transfer of loans owed to Southern Cross Exploration NL to
Mr Johnson. (Note 14)
Transfer of loans owed to Mr. Johnson to Convertible
Notes. (Note 14)
Conversion of Mr Johnson's convertible note to equity
Forgiveness of PPP Loan. (Note 13)
Capitalised borrowing costs
9
TRADE & OTHER RECEIVABLES
Other receivables
(a) Trade receivables past due but not impaired
There were no trade receivables past due but not impaired.
30-Jun-22
$
30-Jun-21
$
(14,359,734)
(5,894,399)
1,268,920
(169,686)
389,136
663,161
(48,561)
138,387
1,608,787
580,360
(168,645)
(521,875)
1,634,725
-
-
-
(1,348,251)
916,231
-
2,056,522
(10,941,610)
(2,313,312)
-
-
2,061,992
-
811,018
1,217,521
3,853,552
865,000
182,462
-
30-Jun-22
$
30-Jun-21
$
36,659
36,659
355,614
355,614
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of
receivables mentioned above. Refer to Note 21 for more information on the risk management
policy of the Group and the credit quality of the Group’s trade receivables.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(b) Fair value and credit risk
their fair value.
10 FINANCIAL ASSETS
Current
ANZ term deposits
Exploration deposits
Equipment rental deposit
Exploration deposits:
30-Jun-22
30-Jun-21
Deposits held as security by government authorities
Amounts held in escrow for exploration contractors
300,348
Amount held in escrow as deposit for Colosseum
acquisition.
Non-current
Security Deposit:
Deposits held as security by Government authorities
11 PLANT & EQUIPMENT LAND & BUILDINGS
30-Jun-22
30-Jun-21
$
$
Carrying amount of plant & equipment land & buildings
18,122,570
16,989,702
30-Jun-22
30-Jun-21
$
$
13,084
300,348
348,381
661,813
-
-
300,348
12,798
1,044,997
-
1,057,795
115,629
265,534
663,834
1,044,997
1,117,725
1,117,725
-
-
251,799
(80,029)
171,770
-
198,117
(26,347)
171,770
53,682
(53,682)
-
-
-
-
-
(a) Plant and Equipment
At Cost
Less accumulated depreciation
Total plant and equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
34
28 | P a g e
29 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(b) Fair value and credit risk
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate
their fair value.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of
receivables mentioned above. Refer to Note 21 for more information on the risk management
policy of the Group and the credit quality of the Group’s trade receivables.
30-Jun-22
$
30-Jun-21
$
10 FINANCIAL ASSETS
Current
ANZ term deposits
Exploration deposits
Equipment rental deposit
13,084
300,348
348,381
661,813
12,798
1,044,997
-
1,057,795
Exploration deposits:
30-Jun-22
30-Jun-21
Deposits held as security by government authorities
Amounts held in escrow for exploration contractors
Amount held in escrow as deposit for Colosseum
acquisition.
Non-current
Security Deposit:
Deposits held as security by Government authorities
-
300,348
-
300,348
115,629
265,534
663,834
1,044,997
1,117,725
1,117,725
-
-
11 PLANT & EQUIPMENT LAND & BUILDINGS
30-Jun-22
$
30-Jun-21
$
Carrying amount of plant & equipment land & buildings
18,122,570
16,989,702
(a) Plant and Equipment
At Cost
Less accumulated depreciation
Total plant and equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
251,799
(80,029)
171,770
-
198,117
(26,347)
171,770
53,682
(53,682)
-
-
-
-
-
29 | P a g e
35
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(b) Office Equipment
At Cost
Less accumulated depreciation
Total office equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(c) Mining Plant & Equipment
At Cost
Less accumulated depreciation
Total mining plant & equipment
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
(d) Mine & Mill Development
At Cost
Total Mine and Mill Development
Movement during the year
Balance at the beginning of the year
Additions
Balance at the end of the year
(e) Mining Land & Buildings
At Cost
Total Mining land and buildings
Movement during the year
Balance at the beginning of the year
Additions
Balance at the end of the year
Furniture & Fixtures
At Cost
Less accumulated depreciation
Total Furniture & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Balance at the end of the year
(f)
36
30-Jun-22
$
30-Jun-21
$
77,162
(62,313)
14,849
30-Jun-22
12,476
7,696
(5,323)
14,849
6,527,847
(1,567,012)
4,960,835
4,029,179
1,568,755
(637,099)
4,960,835
69,466
(56,990)
12,476
30-Jun-21
4,128
10,199
(1,851)
12,476
4,959,092
(929,913)
4,029,179
3,814,262
762,817
(547,900)
4,029,179
5,375,598
5,375,598
5,375,598
5,375,598
5,375,598
-
5,375,598
7,425,963
7,425,963
7,425,963
-
7,425,963
23,914
(3,052)
20,862
3,171
18,153
-
(462)
20,862
5,375,598
-
5,375,598
7,425,963
7,425,963
7,425,963
-
7,425,963
5,761
(2,590)
3,171
8,918
-
(4,757)
(990)
3,171
30 | P a g e
(g) Motor Vehicles
30-Jun-22
30-Jun-21
At Cost
Less accumulated depreciation
Total Furniture & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
Movement during the year
Balance at the beginning of the year
Expenditure incurred during the year
Balance at the end of the year
$
244,761
(92,067)
152,694
143,315
58,039
(48,660)
152,694
$
186,722
(43,407)
143,315
65,447
107,643
(29,775)
143,315
30-Jun-22
30-Jun-21
8,531,559
6,925,892
15,457,451
8,357,959
173,600
8,531,559
12
EXPLORATION & EVALUATION EXPENDITURE
Carrying amount of exploration expenditure
15,457,451
8,531,559
Exploration and evaluation expenditure capitalised relates to expenditure incurred and capitalised for the
Udu Polymetallic Exploration Project in Fiji, the Gold Links Project located in Colorado USA and the Colosseum
Project in California USA. This expenditure has been accounted for in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources. The fair value of the tenements acquired on acquisition of Gunnison
Gold Pty Ltd have also been accounted for here.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest and
also dependent on the Group’s ability to renew the expired tenements without exception.
Current trade and sundry creditors of $2,598,527 are non-interest bearing and are settled on 30
13 TRADE & OTHER PAYABLES
Current
Trade and sundry creditors
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
Accruals
day terms.
Non-Current
PPP Loan Liability
Other loans
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
30-Jun-22
30-Jun-21
$
$
2,598,527
3,458,736
3,458,738
433,979
9,949,980
1,407,523
-
-
55,002
1,462,525
-
-
-
-
-
2,875,880
2,875,880
161,496
21,697
5,934,953
31 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
(g) Motor Vehicles
At Cost
Less accumulated depreciation
Total Furniture & Fixtures
Movement during the year
Balance at the beginning of the year
Additions
Depreciation expense
Balance at the end of the year
12
EXPLORATION & EVALUATION EXPENDITURE
Carrying amount of exploration expenditure
Movement during the year
Balance at the beginning of the year
Expenditure incurred during the year
Balance at the end of the year
30-Jun-22
$
30-Jun-21
$
244,761
(92,067)
152,694
30-Jun-22
143,315
58,039
(48,660)
152,694
186,722
(43,407)
143,315
30-Jun-21
65,447
107,643
(29,775)
143,315
15,457,451
8,531,559
8,531,559
6,925,892
15,457,451
8,357,959
173,600
8,531,559
Exploration and evaluation expenditure capitalised relates to expenditure incurred and capitalised for the
Udu Polymetallic Exploration Project in Fiji, the Gold Links Project located in Colorado USA and the Colosseum
Project in California USA. This expenditure has been accounted for in accordance with AASB 6 Exploration
for and Evaluation of Mineral Resources. The fair value of the tenements acquired on acquisition of Gunnison
Gold Pty Ltd have also been accounted for here.
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation, or alternatively, the sale of the respective area of interest and
also dependent on the Group’s ability to renew the expired tenements without exception.
13 TRADE & OTHER PAYABLES
Current
Trade and sundry creditors
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
Accruals
30-Jun-22
$
30-Jun-21
$
2,598,527
3,458,736
3,458,738
433,979
9,949,980
1,407,523
-
-
55,002
1,462,525
Current trade and sundry creditors of $2,598,527 are non-interest bearing and are settled on 30
day terms.
Non-Current
Amount owed to the vendors of CRG Mining LLC
Amount owed to the vendors of ALSH LLC
PPP Loan Liability
Other loans
-
-
-
-
-
2,875,880
2,875,880
161,496
21,697
5,934,953
31 | P a g e
37
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
The amounts owed to the vendors of CRG Mining LLC and ASL LLC with a carrying value of $6,917,474
(2021 : $5,751,760) were arrived at after applying an annual discount of 10% (2021 : 10%) to future payments
with a total face value of US$5 million, are all payable on 31 December 2022.
14 FINANCIAL LIABILITIES TO RELATED PARTIES
Current
Loan - Mr. Mark Johnson
Convertible Notes Mr. Mark Johnson
Loan - Mr. Stephen Baghdadi
Non-Current
Convertible Notes Mr. Mark Johnson
30-Jun-22
$
30-Jun-21
$
3,023,700
160,240
100,000
3,283,940
-
-
-
-
848,071
848,071
2,988,552
2,988,552
At a General Meeting of the Company’s shareholders held on 21 May 2021, it was approved that the
Company issue to Mr. Mark Johnson 3,853,552 unsecured Convertible Notes in accordance with the
convertible note subscription agreement entered into by the Company on 20 April 2021.
The consideration for the issuance of these Convertible Notes is the cancellation/extinguishment by Mr
Johnson's of all amounts owing by the Company to Mr Johnson (or his nominee) immediately after the
completion of a debt novation agreement which was also presented to and passed by shareholders at the
same General Meeting.
On 28 May 2021, the Company received from Mr. Johnson a Conversion Notice to covert 865,000 Convertible
Notes into 8,650,000 shares at an issue price of $0.10 per share. Mr Johnson converted a further 1,100,000
Convertible Notes to 11,000,000 shares in July 2021 and another 916,992 to 9,619,920 shares in June 2022.
This reduced the Convertible Notes outstanding as at 30 June 2022 to $1,008,311 (2021: $2,988,552).
The Convertible Note Agreement approved by shareholders at the above meeting, provides for interest to
be capitalised annually at a rate of 5% per annum. Interest expense of $108,720 has been accrued during the
year to meet this requirement.
Directors Loans
During the financial year Mr Johnson lent a total of $3,000,000 unsecured loan with interest payable at 5%
p.a., repayable on 185 days’ notice. Interest of $23,700 has been accrued as at 30 June 2022.
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July. No interest was
payable.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
As announced to the market on 24 March 2021, the Company has secured a working capital facility of
$9,091,718 (US$6,847,882). The loan has a maturity date of 23 March 2031. The first 3 years of the loan are
interest only followed by principal and interest for the remainder of the term. The interest rate is 2.75% plus
the US prime rate per annum (based on a 360-day year). The interest rate at 30th June 2022 was 6.25%. The
facility is secured and ringfenced by the Company’s Gold Links project in Colorado USA. In January 2022 the
Company borrowed a further US$3,000,000. This loan has a 10-year maturity date, interest and principal
monthly repayments immediately. Interest is payable at 2.75% plus the US prime rate per annum.
All those facilities have been fully drawn down at balance date.
16
CONTRIBUTED EQUITY
(a)
Share Capital
Ordinary Capital - Number of Shares
Ordinary Capital - Paid Up
(b) Movements in Share Capital
1 July 2021
14 Jul 2021
02 Aug 2021
03 Aug 2021
05 Oct 2021
14 Apr 2022
26 Apr 2022
26 Apr 2022
17 Jun 2022
22 Jun 2022
Opening Balance
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Issue of shares
Share Issue Costs
Closing Balance
Convertible Notes conversion
Convertible Notes conversion
Consolidated
30-Jun-22
30-Jun-21
495,730,320
$46,986,850
380,776,200
$36,942,050
Consolidated
No. of Shares
$
380,776,200
600,000
42,133,333
11,000,000
3,422,222
1,910,000
3,218,645
9,619,920
25,060,000
17,990,000
-
495,730,320
36,942,050
-
3,792,000
1,100,000
308,000
210,100
127,400
961,992
2,506,000
1,799,000
(759,692)
46,986,850
38
32 | P a g e
33 | P a g e
ANNUAL REPORT 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
FOR THE YEAR ENDED 30 JUNE 2022
As announced to the market on 24 March 2021, the Company has secured a working capital facility of
$9,091,718 (US$6,847,882). The loan has a maturity date of 23 March 2031. The first 3 years of the loan are
interest only followed by principal and interest for the remainder of the term. The interest rate is 2.75% plus
the US prime rate per annum (based on a 360-day year). The interest rate at 30th June 2022 was 6.25%. The
facility is secured and ringfenced by the Company’s Gold Links project in Colorado USA. In January 2022 the
Company borrowed a further US$3,000,000. This loan has a 10-year maturity date, interest and principal
monthly repayments immediately. Interest is payable at 2.75% plus the US prime rate per annum.
All those facilities have been fully drawn down at balance date.
16
CONTRIBUTED EQUITY
(a)
Share Capital
Ordinary Capital - Number of Shares
Ordinary Capital - Paid Up
Consolidated
30-Jun-22
30-Jun-21
495,730,320
$46,986,850
380,776,200
$36,942,050
(b) Movements in Share Capital
Consolidated
1 July 2021
14 Jul 2021
02 Aug 2021
03 Aug 2021
05 Oct 2021
14 Apr 2022
26 Apr 2022
26 Apr 2022
17 Jun 2022
22 Jun 2022
Opening Balance
Issue of shares
Issue of shares
Convertible Notes conversion
Issue of shares
Issue of shares
Issue of shares
Convertible Notes conversion
Issue of shares
Issue of shares
Share Issue Costs
Closing Balance
No. of Shares
380,776,200
600,000
42,133,333
11,000,000
3,422,222
1,910,000
3,218,645
9,619,920
25,060,000
17,990,000
-
495,730,320
$
36,942,050
-
3,792,000
1,100,000
308,000
210,100
127,400
961,992
2,506,000
1,799,000
(759,692)
46,986,850
33 | P a g e
39
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
27 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did effect a 25 to 1 consolidation of fully paid ordinary shares. This reduced the number of fully
paid ordinary shares from 8,831,078,076 shares to 353,243,021 as at 27 May 2021.
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen Baghdadi
: 16,420,156 and Mr. Bill Lannen : 2,463,023). These shares were issued with the consideration payable by
Mr. Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced
by the Company. Under AASB2, the issuance of these shares is treated as share based payments, the value
of these were assessed by Directors based on information including an independent valuation (using an
option pricing model) at $1,302,939 and are recorded in the Share Based Payments Reserve (Note 17).
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held. At shareholders meetings, each
ordinary share is entitled to one vote per share when a poll is called, otherwise each shareholder has one
vote on a show of hands.
At 30 June 2022 there were 495,730,320 (2021: 380,776,200) fully paid ordinary shares on issue, which are
freely tradeable, other than 600,000 escrowed until 14 July 2023, 800,000 escrowed until 14 April 2023,
423,729 escrowed until 14 April 2024 and 1,694,916 escrowed until 14 April 2025. There are no preference
shares on issue.
(c) Capital Management
The Group’s capital includes share capital, reserves and accumulated losses. The Group’s objectives when
managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can continue
to provide returns for shareholders and benefits for other stakeholders. The Group manages the capital
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics
of the underlying assets. In order to achieve this, the Group may issue new shares in order to meet its
financial obligations. There are no externally imposed capital requirements.
17 RESERVES
Option Valuation Reserve
Foreign Currency Translation Reserve
Share Based Payments Reserve
30-Jun-22
$
1,137,873
(2,270,334)
1,680,846
548,385
30-Jun-21
$
270,161
(646,988)
1,302,939
926,112
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange differences arising on translation of
foreign controlled subsidiaries.
Option Valuation Reserve
Balance at 30 June 2020 - $211,830
19,704,184 unlisted options recognised in the options valuation reserve at $149,786 were issued on
11 December 2020 1
10,000,000 unlisted options recognised in the options valuation reserve at $211,830 lapsed on 31
December 2020.
10,000,000 unlisted options recognised in the options valuation reserve at $120,375 were issued on
26 March 20212
Balance at 30 June 2021 - $270,161
6,000,000 unlisted options valued at $63,485 lapsed on 28 February 20222
February 20222
27 April 20223
30 June 20224
4,000,000 unlisted options valued at $56,890 was removed from the options valuation reserve on 28
7,200,000 unlisted options recognised in the options valuation reserve at $582,453 were issued on
10,000,000 unlisted options recognised in the options valuation reserve at $264,022 were issued on
In relations to the 19,704,184 options issued on 11 December 2020, $141,607 was recognised in the
options reserve over the vesting period1
Balance at 30 June 2022 - $1,137,873
1On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at
the Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options
issued was $456,133. The fair value at grant date is determined using the Black Scholes Model. The
options vest in 3 equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of
reserves and the third at 60k tonnes of production.
The model inputs for the options granted included:
(a) Exercise price: $0.09575
(b) Grant date: 11 December 2020
(c) Expiry date: 11 December 2024
(d) Share price at grant date: $0.05
(e) Expected price volatility of the Company’s shares: 100%
(f) Risk-free interest rate: 0.25%
2On 26 March 2021 10,000,000 options were issued to pay the facilitators of the Colosseum
transaction. The assessed fair value at grant date of options issued was $120,375. The fair value at
grant date is determined using the Black Scholes Model. 6,000,000 of the options lapsed on 28
February 2022. We believe the remaining 4,000,000 options are unlikely to achieve its vesting
conditions. We have therefore reversed $120,375 from the options reserve and taken an expense in
the profit & loss.
The model inputs for the options granted included:
(a) Exercise price: $0.15 for 6,000,000 unlisted options and $0.20 for 4,000,000 unlisted options
(b) Grant date: 26 March 2021
(c) Expiry date: 6,000,000 28 February 2022 and 4,000,000 28 February 2023
(d) Share price at grant date: $0.10
(e) Expected price volatility of the Company’s shares: 100%
(f) Risk-free interest rate: 0.41%
3On 27 April 2022 7,200,000 options were issued in consideration of the provision of loan funds. The
assessed fair value at grant date of options issued was $582,453. The fair value at grant date is
determined using the Black Scholes Model.
The model inputs for the options granted included:
(a) Exercise price: $0.11
(b) Grant date: 27 April 2022
(c) Expiry date: 27 April 2024
(d) Share price at grant date: $0.135
40
34 | P a g e
35 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
4,000,000 unlisted options valued at $56,890 was removed from the options valuation reserve on 28
February 20222
7,200,000 unlisted options recognised in the options valuation reserve at $582,453 were issued on
27 April 20223
10,000,000 unlisted options recognised in the options valuation reserve at $264,022 were issued on
30 June 20224
In relations to the 19,704,184 options issued on 11 December 2020, $141,607 was recognised in the
options reserve over the vesting period1
Balance at 30 June 2022 - $1,137,873
1On 11 December 2020, 19,704,184 options were issued to directors as approved by shareholders at
the Annual general Meeting on 4 December 2020. The assessed fair value at grant date of options
issued was $456,133. The fair value at grant date is determined using the Black Scholes Model. The
options vest in 3 equal tranches. The first at 30k tonnes of production. The second at 60k tonnes of
reserves and the third at 60k tonnes of production.
The model inputs for the options granted included:
(a) Exercise price: $0.09575
(b) Grant date: 11 December 2020
(c) Expiry date: 11 December 2024
(d) Share price at grant date: $0.05
(e) Expected price volatility of the Company’s shares: 100%
(f) Risk-free interest rate: 0.25%
2On 26 March 2021 10,000,000 options were issued to pay the facilitators of the Colosseum
transaction. The assessed fair value at grant date of options issued was $120,375. The fair value at
grant date is determined using the Black Scholes Model. 6,000,000 of the options lapsed on 28
February 2022. We believe the remaining 4,000,000 options are unlikely to achieve its vesting
conditions. We have therefore reversed $120,375 from the options reserve and taken an expense in
the profit & loss.
The model inputs for the options granted included:
(a) Exercise price: $0.15 for 6,000,000 unlisted options and $0.20 for 4,000,000 unlisted options
(b) Grant date: 26 March 2021
(c) Expiry date: 6,000,000 28 February 2022 and 4,000,000 28 February 2023
(d) Share price at grant date: $0.10
(e) Expected price volatility of the Company’s shares: 100%
(f) Risk-free interest rate: 0.41%
3On 27 April 2022 7,200,000 options were issued in consideration of the provision of loan funds. The
assessed fair value at grant date of options issued was $582,453. The fair value at grant date is
determined using the Black Scholes Model.
The model inputs for the options granted included:
(a) Exercise price: $0.11
(b) Grant date: 27 April 2022
(c) Expiry date: 27 April 2024
(d) Share price at grant date: $0.135
35 | P a g e
41
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(e) Expected price volatility of the Company’s shares:105%
(f) Risk-free interest rate:2.38%
4On 30 June 2022 10,000,000 options were issued to various suppliers. 5,000,000 issued in
consideration of loans made and vest immediately. 5,000,000 are escrowed for 9 months. Of these
500,000 are conditional on mining approval at Colosseum, 1,500,000 are conditional on commencing
operations at the Colosseum mine and 3,000,000 conditional on mining production targets being met.
The assessed fair value at grant date of options issued was $471,000. The fair value at grant date is
determined using the Black Scholes Model.
The model inputs for the options granted included:
(a) Exercise price: 5,000,000 at $0.10, 2,000,000 at $0.13, 1,000,000 at $0.15 and 2,000,000 at
$0.20
(b) Grant date: 30 June 2022
(c) Expiry date: 30 June 2024 – (the 2,000,000 options issued at $0.20 have an expiry date of 30
June 2025)
(d) Share price at grant date: $0.10
(e) Expected price volatility of the Company’s shares:105%
(f) Risk-free interest rate: 2.73%
Share Based Payments Reserve
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021),
the Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr.
Baghdadi: 16,420,156 and Mr. Lannen : 2,463,023). These shares were issued with the consideration
payable by Mr. Baghdadi and Mr. Lannen for the shares funded by an interest free and limited
recourse loan advanced by the Company. Under AASB2, the issuance of these shares is treated as
share-based payments, the cost of these were independently valued (using an option pricing model)
at $1,302,939 and are recorded in the Share Based Payments Reserve.
7,000,000 unlisted options recognised in the share-based reserve at $357,161 were issued on 30 July
2021
On 30 July 2021 7,000,000 options were issued to PAC Partners. The assessed fair value at grant date
of options issued was $357,161. The fair value at grant date is determined using the Black Scholes
Model.
The model inputs for the options granted included:
(a) Exercise price: $0.135
(b) Grant date: 30 July 2021
(c) Expiry date: 30 July 2023
(d) Share price at grant date: $0.09
(e) Expected price volatility of the Company’s shares: 130%
(f) Risk-free interest rate 0.02%
On 14 July 2021 the Company issued to two employees 400,000 and 200,000 fully paid ordinary
shares. These shares were issued with the consideration payable by the employees for the shares
funded by interest free and limited recourse loans of $40,000 and $20,000 advanced by the Company,
secured against the 400,000 and 200,000 ordinary shares respectively. Under AASB2, the issuance of
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
these shares is treated as share-based payments, the cost of these were independently valued (using
an option pricing model) at $20,746 and are recorded in the Share Based Payments Reserve.
18 EARNINGS PER SHARE
The calculation of basic loss per share at 30 June 2022 was based on the loss attributable to ordinary
shareholders of $14,359,734 (2021 : loss $5,894,399) and a weighted average number of shares
outstanding during the financial year ended 30 June 2022 of 436,141,402 (2021 : 332,547,427) calculated
as follows :
(a) Basic profit/(loss) per share
30-Jun-22
30-Jun-21
Net profit/(loss) per share attributable to ordinary
equity holders of the Company ($)
($14,359,734)
($5,894,399)
Weighted average number of ordinary shares
436,141,402
332,547,427
(3.2924)
(1.7725)
Potential ordinary shareholders are not considered dilutive, thus diluted profit/(loss) per share is the
19 RIGHT-OF-USE ASSETS (NON-CURRENT)
30-Jun-22
30-Jun-21
Continuing operations
- Basic profit/(loss) per share (cents)
(b) Diluted profit/(loss) per share
same as basic loss per share.
Mining Equipment - right of use
Less: Accumulated depreciation
Motor Vehicles - right of use
Less: Accumulated depreciation
$
2,964,031
(327,180)
2,636,851
607,769
(226,176)
381,593
$
-
-
-
-
-
-
Additions to the right-of-use assets during the year were $3,571,800.
The consolidated entity leases motor vehicles and mining equipment under agreements of between one
to three years with, in some cases, options to extend. The leases have various escalation clauses. On
renewal, the terms of the leases are renegotiated. The consolidated entity leases other equipment under
agreements of less than one year, those leases are either short-term or low-value, so have been expensed
as incurred and not capitalised as right-of-use assets.
42
36 | P a g e
37 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
these shares is treated as share-based payments, the cost of these were independently valued (using
an option pricing model) at $20,746 and are recorded in the Share Based Payments Reserve.
18 EARNINGS PER SHARE
The calculation of basic loss per share at 30 June 2022 was based on the loss attributable to ordinary
shareholders of $14,359,734 (2021 : loss $5,894,399) and a weighted average number of shares
outstanding during the financial year ended 30 June 2022 of 436,141,402 (2021 : 332,547,427) calculated
as follows :
(a) Basic profit/(loss) per share
30-Jun-22
30-Jun-21
Net profit/(loss) per share attributable to ordinary
equity holders of the Company ($)
($14,359,734)
($5,894,399)
Weighted average number of ordinary shares
Continuing operations
- Basic profit/(loss) per share (cents)
436,141,402
332,547,427
(3.2924)
(1.7725)
(b) Diluted profit/(loss) per share
Potential ordinary shareholders are not considered dilutive, thus diluted profit/(loss) per share is the
same as basic loss per share.
19 RIGHT-OF-USE ASSETS (NON-CURRENT)
Mining Equipment - right of use
Less: Accumulated depreciation
Motor Vehicles - right of use
Less: Accumulated depreciation
30-Jun-22
$
2,964,031
(327,180)
2,636,851
607,769
(226,176)
381,593
30-Jun-21
$
-
-
-
-
-
-
Additions to the right-of-use assets during the year were $3,571,800.
The consolidated entity leases motor vehicles and mining equipment under agreements of between one
to three years with, in some cases, options to extend. The leases have various escalation clauses. On
renewal, the terms of the leases are renegotiated. The consolidated entity leases other equipment under
agreements of less than one year, those leases are either short-term or low-value, so have been expensed
as incurred and not capitalised as right-of-use assets.
37 | P a g e
43
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
20
LEASE LIABILITIES
Lease liabilities (current)
Lease liabilities (non-current)
30-Jun-22
$
30-Jun-21
$
1,960,983
1,800,223
-
-
21 FINANCIAL RISK MANAGEMENT
The Group's principal financial instruments consist of deposits with banks, receivables, other financial
assets and payables. At the reporting date, the Group had the following mix of financial assets and
liabilities.
Financial Assets
Cash & cash equivalents
Trade & other receivables
Financial Assets
Bonds
Financial Liabilities
Trade & other payables
Short term loans
Financial liabilities to related parties
Lease liabilities
Long term loans
30-Jun-22
$
30-Jun-21
$
1,936,037
36,659
661,813
1,117,724
3,752,233
9,949,980
947,274
4,132,011
3,761,206
13,052,149
31,842,620
7,092,069
355,614
1,057,795
-
8,505,478
7,397,478
-
2,988,552
-
9,091,718
19,477,748
Net exposure
(28,090,387)
(10,972,270)
Financial risk management
The main risks arising from the Group’s financial instruments are interest rate risk, credit risk, foreign
currency risk and liquidity risk. The Group uses different methods to measure and manage different types of
risks to which it is exposed. Primary responsibility for identification and control of financial risks rests with
the Board of Directors.
(a)
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The Group is exposed to interest rate risk as it invests funds at both fixed and floating interest
rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate deposits.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Financial Assets
Cash & cash equivalents
Financial liability – long term loan
Sensitivity
30-Jun-22
$
1,936,037
(13,053,149)
30-Jun-21
$
7,092,069
-
Based on the cash and cash equivalent held on 30 June 2022, had the interest rate increased by 1%, the
group’s post-tax loss would have been decreased by $19,360 and had the interest rate decreased. By 1% the
group's post tax loss would have been increased by $19,360. Based on the cash and cash equivalent held on
30 June 2021, had the interest rate increased by 1%, the group’s post-tax loss would have been decreased
by $70,920 and had the interest rate decreased by 1% the group's post tax loss would have been increased
by $70,920.
The Company has 3 long terms loans totaling US$9,847,000 (2021: $6,847,000). Interest is payable monthly
at the US Prime Rate plus 2.75% p.a. Currently the interest rate is 6% p.a.
Based on the borrowings at held on 30 June 2022, had the interest rate increased by 1%, the group’s post-
tax loss would have been increased by $US98,470 ($A135,670) and had the interest rate decreased by 1%
the group's post tax loss would have been decreased by $US98,470 ($A$135,670). Based on the borrowings
held on 30 June 2021, had the interest rate increased by 1%, the group’s post-tax loss would have been
increased by US$68,470 ($A92,128) and had the interest rate decreased by 1% the group's post tax loss would
have been decreased by US$68,470 ($A92,128).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financing loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
The carrying amount of financial assets recorded in the financial statements, net of any provision for losses,
represents the Group’s maximum exposure to credit risk. All trade and other receivables are due within 30
days and none are past due.
(i) Cash and cash equivalents
The Group’s primary banker is Commonwealth Bank of Australia (2021 : Commonwealth Bank of Australia).
The Board considers the use of this financial institution, which has a short term rating of AA- from Standards
and Poors to be sufficient in the management of credit risk with regards to these funds.
Cash at Bank and short term banks deposits
(ii) Trade & other receivables
While the Group has policies in place to ensure that transactions with third parties have an appropriate credit
history, the management of current and potential credit risk exposures is limited as far as is considered
commercially appropriate. Up to the date of this report, the Board has placed no requirement for collateral
on existing debtors.
30-Jun-22
30-Jun-21
$
$
1,936,037
7,092,069
44
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ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Financial Assets
Cash & cash equivalents
Financial liability – long term loan
30-Jun-22
$
1,936,037
(13,053,149)
30-Jun-21
$
7,092,069
-
Sensitivity
Based on the cash and cash equivalent held on 30 June 2022, had the interest rate increased by 1%, the
group’s post-tax loss would have been decreased by $19,360 and had the interest rate decreased. By 1% the
group's post tax loss would have been increased by $19,360. Based on the cash and cash equivalent held on
30 June 2021, had the interest rate increased by 1%, the group’s post-tax loss would have been decreased
by $70,920 and had the interest rate decreased by 1% the group's post tax loss would have been increased
by $70,920.
The Company has 3 long terms loans totaling US$9,847,000 (2021: $6,847,000). Interest is payable monthly
at the US Prime Rate plus 2.75% p.a. Currently the interest rate is 6% p.a.
Based on the borrowings at held on 30 June 2022, had the interest rate increased by 1%, the group’s post-
tax loss would have been increased by $US98,470 ($A135,670) and had the interest rate decreased by 1%
the group's post tax loss would have been decreased by $US98,470 ($A$135,670). Based on the borrowings
held on 30 June 2021, had the interest rate increased by 1%, the group’s post-tax loss would have been
increased by US$68,470 ($A92,128) and had the interest rate decreased by 1% the group's post tax loss would
have been decreased by US$68,470 ($A92,128).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financing loss from
defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions concluded is spread amongst approved counterparties.
The carrying amount of financial assets recorded in the financial statements, net of any provision for losses,
represents the Group’s maximum exposure to credit risk. All trade and other receivables are due within 30
days and none are past due.
(i) Cash and cash equivalents
The Group’s primary banker is Commonwealth Bank of Australia (2021 : Commonwealth Bank of Australia).
The Board considers the use of this financial institution, which has a short term rating of AA- from Standards
and Poors to be sufficient in the management of credit risk with regards to these funds.
Cash at Bank and short term banks deposits
(ii) Trade & other receivables
30-Jun-22
$
1,936,037
30-Jun-21
$
7,092,069
While the Group has policies in place to ensure that transactions with third parties have an appropriate credit
history, the management of current and potential credit risk exposures is limited as far as is considered
commercially appropriate. Up to the date of this report, the Board has placed no requirement for collateral
on existing debtors.
39 | P a g e
45
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(b)
Foreign currency risk
The group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US and Fijian dollar. Foreign exchange risk arises from future
commercial transactions and recognised financial assets and financial liabilities denominated in a currency
that is not the Company’s functional currency. The risk is measured using sensitivity analysis and cash flow
forecasting. The group's exposure to foreign currency risk at the end of the reporting period, expressed in
Australian Dollars, was as follows:
Cash at Bank and short-term bank deposits
Financial assets
Payables
Borrowings
SENSITIVITY
30-Jun-22
$
30-Jun-21
$
294,953
5,967,154
1,765,758
-
(2,678,058)
(6,867,350)
(14,210,441)
(9,091,718)
At 30 June 2022, had the Australian dollar weakened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have reduced by $1,497,726 (2021: $1,110,213)
and loss would have increased by $1,497,726 (2021: $1,110,213).
At 30 June 2022, had the Australian dollar strengthened by 10% against the US and Fijian dollar, with all other
variables being constant, the net assets of the group would have increased by $1,225,413 (2021: $908,356)
and loss would have reduced by $1,225,413 (2021: $908,356).
Liquidity risk management
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with
financial liabilities.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and
long-term funding and liquidity management requirements.
The Group manages liquidity risk by continually monitoring cash reserves and cash flow forecasts to ensure
that financial commitments can be met as and when they fall due.
The terms of the group’s financial liabilities are detailed in notes 13, 14 and 15.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22
KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Key management personnel compensation
Compensation by category
Short term employee benefits
of the Directors’ report.
(b)
(i)
Material contracts
Directors’ Deeds of Indemnity
30-Jun-22
30-Jun-21
$
$
580,140
580,140
546,000
546,000
Information regarding individual Directors and Executive compensation and some equity instruments
disclosures as permitted by Corporations Regulation 2M.3.03 is provided in the remuneration report section
With every Director appointment, the Group enters into a deed of indemnity, insurance and access with each
of its Directors. Under these deeds, the Group agrees to indemnify each Director to the extent permitted by
the Corporations Act 2001 against any liability arising as a result of the Director acting in the capacity as a
Director of the Group. The Group is also required to maintain insurance policies for the benefit of the
Directors and must also allow the Directors to inspect Group documents in certain circumstances.
(ii)
Loans to Directors
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen Baghdadi
: 16,420,156 and Mr. Bill Lannen-: 2,463,023). These shares were issued with the consideration payable by
Mr. Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced
by the Company. Under AASB2, the issuance of these shares is treated as share-based payments, the cost of
these were independently valued (using an option pricing model) at $1,302,939 and are recorded in the Share
Based Payments Reserve (Note 17).
Other Fees Paid to/accrued for Directors
paid to Directors.
(iii)
Balances outstanding
Other than that provided in the remuneration section of the Directors’ report, there were no other fees
As at 30 June 2022 the following amounts were unpaid to KMP and or Directors:
Mr Baghdadi
30-Jun-22
30-Jun-21
$
$
-
238,000
46
40 | P a g e
41 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22
KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Key management personnel compensation
Compensation by category
Short term employee benefits
30-Jun-22
$
30-Jun-21
$
580,140
580,140
546,000
546,000
Information regarding individual Directors and Executive compensation and some equity instruments
disclosures as permitted by Corporations Regulation 2M.3.03 is provided in the remuneration report section
of the Directors’ report.
(b)
(i)
Material contracts
Directors’ Deeds of Indemnity
With every Director appointment, the Group enters into a deed of indemnity, insurance and access with each
of its Directors. Under these deeds, the Group agrees to indemnify each Director to the extent permitted by
the Corporations Act 2001 against any liability arising as a result of the Director acting in the capacity as a
Director of the Group. The Group is also required to maintain insurance policies for the benefit of the
Directors and must also allow the Directors to inspect Group documents in certain circumstances.
(ii)
Loans to Directors
On 28 May 2021 (after receiving the approval of shareholders at a General Meeting on 21 May 2021), the
Company did issue to related parties a total of 18,883,179 fully paid ordinary shares (Mr. Stephen Baghdadi
: 16,420,156 and Mr. Bill Lannen-: 2,463,023). These shares were issued with the consideration payable by
Mr. Baghdadi and Mr. Lannen for the shares funded by an interest free and limited recourse loan advanced
by the Company. Under AASB2, the issuance of these shares is treated as share-based payments, the cost of
these were independently valued (using an option pricing model) at $1,302,939 and are recorded in the Share
Based Payments Reserve (Note 17).
Other Fees Paid to/accrued for Directors
Other than that provided in the remuneration section of the Directors’ report, there were no other fees
paid to Directors.
(iii)
Balances outstanding
As at 30 June 2022 the following amounts were unpaid to KMP and or Directors:
Mr Baghdadi
30-Jun-22
30-Jun-21
$
$
-
238,000
41 | P a g e
47
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
23 RELATED PARTY DISCLOSURES
(i) Key management personnel
Disclosures relating to directors and executives are set out in note 22 Key Management Personnel
Disclosures.
(ii) Transactions with related parties
FINANCIAL LIABILITIES TO RELATED PARTIES
Current
Loan – Mr. Mark Johnson
Convertible Notes Mr. Mark Johnson
Loan – Mr. Stephen Baghdadi
Non-Current
Convertible Notes Mr. Mark Johnson
30-Jun-22
$
30-Jun-21
$
3,023,700
160,240
100,000
3,283,940
-
848,071
848,071
-
-
-
-
-
2,988,552
2,988,552
At a General Meeting of the Company’s shareholders held on 21 May 2021, it was approved that the
Company issue to Mr. Mark Johnson 3,853,552 unsecured Convertible Notes in accordance with the
convertible note subscription agreement entered into by the Company on 20 April 2021.
The consideration for the issuance of these Convertible Notes is the cancellation/extinguishment by Mr
Johnson's of all amounts owing by the Company to Mr Johnson (or his nominee) immediately after the
completion of a debt novation agreement which was also presented to and passed by shareholders at the
same General Meeting.
The total debt owed to Mr. Johnson as at 21 May 2021, was $3,853,552.
On 28 May 2021, the Company received from Mr. Johnson a Conversion Notice to covert 865,000 Convertible
Notes into 8,650,000 shares at an issue price of $0.10 per share. Mr Johnson converted a further 1,100,000
Convertible Notes to 11,000,000 shares in July 2021 and another 916,992 to 9,619,920 shares in June 2022.
This reduced the Convertible Notes outstanding as at 30 June 2022 to $1,008,311 (2021: $2,988,552).
The Convertible Note Agreement approved by shareholders at the above meeting, provides for interest to
be capitalised annually at a rate of 5% per annum. Interest expense of $108,730 has been accrued during the
year to meet this requirement.
Directors Loans
During the financial year Mr Johnson lent a total of $3,000,000 unsecured loan with interest payable at 5%
p.a., repayable on 185 days’ notice. Interest of $23,700 has been accrued as at 30 June 2022.
Mr Baghdadi made a short-term loan of $100,000 on 2 June 2022 which was repaid in July. No interest was
payable.
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(iii) Subsidiaries and associates
Name of subsidiary
Dateline Fiji Pty Limited
Matai Holdings (Fiji) Ltd
Golden Phoenix Resources Limited
Golden Phoenix Australia Pty Ltd
Gunnison Gold Pty Ltd
Colosseum Mines Pty Ltd
Fossil Creek Mines LLC
CRG Mining LLC
Saguache Mining LLC
SLV Minerals LLC
Colosseum Rare Metals Inc.
ALSH LLC
Sooner Lucky Strike Mine LLC
24
COMMITMENTS
(a) Operating Commitments
Ownership
Ownership
Country of
Interest (%)
Interest (%)
Incorporation
30.6.22
30.6.21
Australia
Fiji
Australia
Australia
Australia
Australia
USA
USA
USA
USA
USA
USA
USA
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
During the year ended 30 June 2021, Colosseum Mines Pty Ltd and Colosseum Rare metals Inc, were
incorporated on 24 March 2021 and 26 March 2021 respectively.
Within one year
After one year but not more than five years
Total minimum commitment
The commitments above are subject to mining expenditure. They relate to the exploration
tenements granted to, and under application by the Group.
(b) Exploration and Evaluation Commitments
There were no exploration and evaluation commitments at year end.
30-Jun-22
30-Jun-21
$
1,506,929
407,163
1,914,092
$
-
-
-
25
SUBSEQUENT EVENTS
On 31 August 2022 the Company announced the issue of 44,067,500 fully paid ordinary shares raising
$4,406,750 (before costs) at $0.10 per new share.
The Gold Links mining contractor commenced legal action against the Company for US$850k, whilst the
Company is claiming a similar amount pursuant to the rights under the mining contract.
No other matter or event has arisen since 30 June 2022 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise as disclosed in the Group’s
financial report.
48
42 | P a g e
43 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
(iii) Subsidiaries and associates
Name of subsidiary
Dateline Fiji Pty Limited
Matai Holdings (Fiji) Ltd
Golden Phoenix Resources Limited
Golden Phoenix Australia Pty Ltd
Gunnison Gold Pty Ltd
Colosseum Mines Pty Ltd
Fossil Creek Mines LLC
CRG Mining LLC
Saguache Mining LLC
SLV Minerals LLC
Colosseum Rare Metals Inc.
ALSH LLC
Sooner Lucky Strike Mine LLC
Country of
Incorporation
Australia
Fiji
Australia
Australia
Australia
Australia
USA
USA
USA
USA
USA
USA
USA
Ownership
Interest (%)
30.6.22
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Ownership
Interest (%)
30.6.21
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
During the year ended 30 June 2021, Colosseum Mines Pty Ltd and Colosseum Rare metals Inc, were
incorporated on 24 March 2021 and 26 March 2021 respectively.
COMMITMENTS
24
(a) Operating Commitments
Within one year
After one year but not more than five years
Total minimum commitment
30-Jun-22
$
1,506,929
407,163
1,914,092
30-Jun-21
$
-
-
-
The commitments above are subject to mining expenditure. They relate to the exploration
tenements granted to, and under application by the Group.
(b) Exploration and Evaluation Commitments
There were no exploration and evaluation commitments at year end.
25
SUBSEQUENT EVENTS
On 31 August 2022 the Company announced the issue of 44,067,500 fully paid ordinary shares raising
$4,406,750 (before costs) at $0.10 per new share.
The Gold Links mining contractor commenced legal action against the Company for US$850k, whilst the
Company is claiming a similar amount pursuant to the rights under the mining contract.
No other matter or event has arisen since 30 June 2022 that would be likely to materially affect the
operations of the Group, or the state of affairs of the Company not otherwise as disclosed in the Group’s
financial report.
43 | P a g e
49
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
26
CONTINGENT LIABILITIES
For the year ended 30 June 2022 and for the year ended 30 June 2021, the following contingent liabilities
existed.
There are contracted contingent liabilities in regard to Royalty Arrangements to the vendors of CRG Mining
LLC. (CRG). The vendors of CRG are entitled to receive royalty payments at a rate of US$50 for each ounce of
gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5
million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million will
be paid by 31 December 2022 which is included in the deferred consideration. (Refer note 13).
On the acquisition of Sooner Lucky Strike Mine there is a contingent liability in regard to Royalty
Arrangements to the vendors of ALSH LLC. (ALSH). The vendors of ALSH are entitled to receive royalty
payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the
acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an
aggregate minimum amount of US$2.5 million will be paid by 31 December 2022 which is included in the
deferred consideration. (Refer note 13).
Royalties payable to the previous owner of Gunnison Property
During the year ended 30 June 2018 the Company acquired freehold land over the Gold Links property. The
agreement entitles the previous owner of this land to Royalty payments as detailed below:
The Company shall pay Royalties to the previous owner based on a percentage of Net Smelter Returns base
on the Gold Price per Ounce as follows:
Gold Price per Ounce
Ownership Percentage of Net Smelter Returns
(USD)
$1,000 and below
1.0%
$1,501 to $2,000
2.0%
$5,501 and above
7.0%
$1,001 to 1,500
An Additional 0.1% for every $100 in excess of $1,000 up to $1,500
$2,001 to $5,500
2.0% plus additional 0.1% for every $100 in excess of $2,000 up to $5,500
The percentage will be adjusted bi- annually if the total amount of gold produced over a 6 month period
is greater than one ounce per ton. The adjustment is calculated by multiplying the average Ownership
Percentage of Net Smelter returns during each 6 month period by the Gold Ratio. The Gold Ratio is the
ratio of the amount of ounces of gold produced verses the tonnes of ore mined and milled.
The maximum percentage payable is capped at 7%.
Minimum payment if no production occurs
If no production is under taken after 31 October 2018 the previous owner is entitled to US$15,000 per
calendar year if the following condition is met:
A commercial quantity (as determined by the previous owner’s project engineer and geologist)
or ore is available
Colosseum Gold Mine
In March 2021, the Company entered into an agreement with LAC Minerals (USA) LLC, a wholly owned
subsidiary of Barrick Gold Corporation to acquire the Colosseum Gold Mine, located in San Bernadino
County, California. Colosseum was originally discovered in the early 1970’s, with production of ~344,000
ounces of gold between 1988 and 1993 from two open pits. At the time of closure, the gold price was at
a cyclical low below $350/oz. No exploration has been undertaken at the site over the past 25 years.
In October 2021 Dateline announced that all outstanding conditions precedent for the completion of the
acquisition had been fulfilled. As part of the transaction, Dateline has provided US$770,000 in
reclamation bonds to replace the Barrick bonds with the relevant authorities. At this time the Company
cannot reliably estimate the cost or timing of any remediation expenditure that may be required.
As part of the acquisition a further payment of US$1,500,000 to Barrick will be payable following
successful completion of a bankable feasibility study or commencement of site development for the
extraction of ore or sale of the properties. Barrick is also entitled to a 2.5% Net Smelter Return royalty
of all future production of any metals from the mine.
27 DIVIDENDS
financial year.
No dividend has been paid during the financial year and no dividend is recommended for the
50
44 | P a g e
45 | P a g e
ANNUAL REPORT 2022
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Royalties payable to the previous owner of Gunnison Property
During the year ended 30 June 2018 the Company acquired freehold land over the Gold Links property. The
agreement entitles the previous owner of this land to Royalty payments as detailed below:
The Company shall pay Royalties to the previous owner based on a percentage of Net Smelter Returns base
on the Gold Price per Ounce as follows:
Gold Price per Ounce
(USD)
Ownership Percentage of Net Smelter Returns
$1,000 and below
1.0%
$1,001 to 1,500
An Additional 0.1% for every $100 in excess of $1,000 up to $1,500
$1,501 to $2,000
2.0%
$2,001 to $5,500
2.0% plus additional 0.1% for every $100 in excess of $2,000 up to $5,500
$5,501 and above
7.0%
The percentage will be adjusted bi- annually if the total amount of gold produced over a 6 month period
is greater than one ounce per ton. The adjustment is calculated by multiplying the average Ownership
Percentage of Net Smelter returns during each 6 month period by the Gold Ratio. The Gold Ratio is the
ratio of the amount of ounces of gold produced verses the tonnes of ore mined and milled.
The maximum percentage payable is capped at 7%.
Minimum payment if no production occurs
If no production is under taken after 31 October 2018 the previous owner is entitled to US$15,000 per
calendar year if the following condition is met:
A commercial quantity (as determined by the previous owner’s project engineer and geologist)
or ore is available
Colosseum Gold Mine
In March 2021, the Company entered into an agreement with LAC Minerals (USA) LLC, a wholly owned
subsidiary of Barrick Gold Corporation to acquire the Colosseum Gold Mine, located in San Bernadino
County, California. Colosseum was originally discovered in the early 1970’s, with production of ~344,000
ounces of gold between 1988 and 1993 from two open pits. At the time of closure, the gold price was at
a cyclical low below $350/oz. No exploration has been undertaken at the site over the past 25 years.
In October 2021 Dateline announced that all outstanding conditions precedent for the completion of the
acquisition had been fulfilled. As part of the transaction, Dateline has provided US$770,000 in
reclamation bonds to replace the Barrick bonds with the relevant authorities. At this time the Company
cannot reliably estimate the cost or timing of any remediation expenditure that may be required.
As part of the acquisition a further payment of US$1,500,000 to Barrick will be payable following
successful completion of a bankable feasibility study or commencement of site development for the
extraction of ore or sale of the properties. Barrick is also entitled to a 2.5% Net Smelter Return royalty
of all future production of any metals from the mine.
27 DIVIDENDS
No dividend has been paid during the financial year and no dividend is recommended for the
financial year.
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51
DATELINE RESOURCES
NOTES TO THE FINANCIAL STATEMENTS
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
28 REMUNERATION OF AUDITORS
(a) HLB Mann Judd Assurance (NSW) Pty Ltd
An audit or review of the financial report of the Company
(b) HLB Mann Judd (NSW) Pty Ltd
Income tax services
29
(a)
PARENT ENTITY INFORMATION
Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-Current liabilities
Total Liabilities
Net Assets
Equity
Issued equity
Reserves
Accumulated losses
Total Equity
(b)
Financial Performance
Profit/(Loss) for the year
Other comprehensive income
Total Comprehensive Income
30-Jun-22
$
30-Jun-21
$
60,000
60,000
-
-
54,000
54,000
20,000
20,000
30-Jun-22
$
30-Jun-21
$
10,063,826
27,819,600
37,883,426
12,941,467
928,730
13,870,197
24,013,229
1,073,332
27,810,535
28,883,867
448,674
8,820,971
9,269,645
19,614,222
45,524,865
3,247,896
(24,759,532)
35,480,067
2,002,281
(17,868,126)
24,013,229
19,614,222
(6,891,406)
(2,309,055)
-
-
(6,891,406)
(2,309,055)
(c) Guarantees Entered Into By The Parent Entity
No guarantees have been entered into by the parent
subsidiaries.
(d) Commitments And Contingencies of the Parent Entity
entity in relation to
the debts of its
There were no commitments and contingencies for the parent entity as at 30 June 2022 or 30 June
2021 other than that disclosed in notes 24 and 26.
30. ENTITIES ACQUIRED DURING THE YEAR
Year ended 30 June 2022 - NIL
Year ended 30 June 2021 - NIL
DATELINE RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
In the Directors’ opinion:
2001, including:
a) the financial statements and notes set out on pages 12 to 46 are in accordance with the Corporations Act
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
for the financial year ended on that date, and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Equivalent Chief Executive Officer and the Equivalent
Chief Financial Officer required by Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board of Directors
Mr Mark Johnson
Non-Executive Chairman
4th October 2022
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ANNUAL REPORT 2022
DIRECTOR’S DECLARATION
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
In the Directors’ opinion:
a) the financial statements and notes set out on pages 12 to 46 are in accordance with the Corporations Act
2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements, and
(ii) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance
for the financial year ended on that date, and
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the Equivalent Chief Executive Officer and the Equivalent
Chief Financial Officer required by Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board of Directors
Mr Mark Johnson
Non-Executive Chairman
4th October 2022
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53
DATELINE RESOURCES
INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report to the Members of Dateline Resources Limited
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Dateline Resources Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2022,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors’ declaration
for the Company and the Group.
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 30 June 2022 and of its financial
performance for the year then ended; 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 (“the Code”) that are relevant to
our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Regarding Going Concern
We draw attention to Note 2(g) in the financial report, which indicates that the Group incurred a net loss of
$14,359,734 during the year ended 30 June 2022 and, as of that date, the current liabilities exceeded its
current assets by $12,159,417. As stated in Note 2(g), these events or conditions, along with other matters
as set forth in Note 2(g), indicate that a material uncertainty exists that may cast significant doubt on the
Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
54
48 | P a g e
ANNUAL REPORT 2022
INDEPENDENT AUDITOR’S REPORT
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.
Key Audit Matter
How our audit addressed the key audit
matter
Share based payments and option valuation
Note 17
The Group provides benefits to Directors and others in
the form of share based payment transactions, whereby
the Directors or others render services and receive
shares or the option to purchase shares. These share
based payment transactions are classified by the Group
as equity settled share based payment transactions.
Our procedures included but were not limited
to:
Considering the design and implementation of
controls surrounding review of valuations at the
Board level;
The accounting for share based payments is a key
audit matter because the expense recognised
incorporates a judgemental value. Black Scholes
model’s include inputs which require judgement.
Obtaining agreements for options and limited
recourse share purchase loans and assessing
the accounting treatment in conjunction with
the terms;
The share based payment expenses were split between
share based payment expenses / reserves or option
valuation expenses / reserves, depending on their type
as requested by management, however, are all
captured under AASB 2 Share Based Payments.
Obtaining management or expert valuation
using Black Scholes models and supporting the
inputs in the calculations to publicly available
data;
Considering the objectivity, competence and
capabilities of any management expert used;
Examining the disclosures made in the
financial report.
Options issued to directors were valued by
management using a Black Scholes model, and the
vesting periods were determined by the directors.
These options were accounted for in the option
valuation reserve.
Limited recourse share purchase loans, which were
accounted for as options under AASB 2 Share Based
Payments were valued with the assistance of an expert
valuer who also used a Black Scholes model. The
limited recourse share purchase loans are within the
share based payments reserve.
The impact on the financial report for the year ended 30
June 2022 reflected a profit or loss charge of $316,568
to share based payments expense and $346,593 to
option valuation expense.
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 30 June 2022, but does not include the financial
report and our auditor’s report thereon.
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49 | P a g e
DATELINE RESOURCES
INDEPENDENT AUDITOR’S REPORT
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or 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 Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
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ANNUAL REPORT 2022
INDEPENDENT AUDITOR’S REPORT
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Dateline Resources Limited for the year ended 30 June 2022
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.
HLB Mann Judd Assurance (NSW) Pty Ltd
Chartered Accountants
M D Muller
Director
Sydney, NSW
4 October 2022
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DATELINE RESOURCES
ADDITIONAL INFORMATION
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2022
The following additional information was applicable as at 21 October 2022.
1. Number of Holders of each class of equity security and the voting rights attached:
Class of Security
Ordinary Shares
Unlisted Options
No. of Holders Voting Rights Attached
1,141
47
Each shareholder is entitled to one vote per share held
N/A
There are a total of 434,509,533 ordinary fully paid shares on issue. There are no shares subject to
voluntary escrow.
2. Distribution schedule of the number of holders of fully paid ordinary shares is as follows:
Distribution
of Holders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Number of Fully Paid
Ordinary Shareholders
141
116
135
406
343
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those who shareholding is valued at less than
$500.
• There are 296 shareholders who hold less than a marketable parcel of shares.
• The number of fully paid ordinary shareholdings held in less than marketable parcels is 653,012.
4. Substantial shareholders
As at report date there are three substantial shareholders.
5. Share buy-backs
There is no current on-market buy-back scheme.
58
DATELINE RESOURCES LIMITED
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2022
6. Top 20 Shareholders
and are listed below:
Holder Name
1 Mark Johnson
2 SSX
The top 20 largest fully paid ordinary shareholders together held 65.78% of the securities in this class
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4 Stephen Baghdadi
5 MUTUAL TRUST PTY LTD
6 SPINITE PTY LTD
7 BOND STREET CUSTODIANS LIMITED
8 MR KEVIN STEPHEN DAVIS & MRS ANNETTE MARIA DAVIS
9 BNP PARIBAS NOMS PTY LTD
10 CITICORP NOMINEES PTY LIMITED
11 MR CLIVE THOMAS
12 J STUART FOLEY & AUGHTON PTY LTD
13 BICKHAM COURT SUPERANNUATION PTY LTD
14 MR ROBERT GEOFFREY PAGE & MRS ANGELA MARGARET PAGE
15 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
16 ONE MANAGED INVESTMENT FUNDS LTD
17 JCR INVESTMENTS CO P/L
17 SUNTRACK INVESTMENTS (BEVILLE) PTY LTD
18 MR ANDREW JOHN PATTERSON
19 TORNADO NOMINEES PTY LTD
20 TORNADO NOMINEES PTY LTD
Total
Total issued capital
Holding
% IC
98,394,958 17.51%
95,832,698 17.05%
53,259,187
26,028,541
12,302,000
9,400,000
9,011,111
7,711,500
7,216,664
5,904,715
4,978,934
4,900,000
4,810,393
4,360,000
4,065,403
4,001,884
4,000,000
4,000,000
3,628,667
3,016,598
2,900,000
9.48%
4.63%
2.19%
1.67%
1.60%
1.37%
1.28%
1.05%
0.89%
0.87%
0.86%
0.78%
0.72%
0.71%
0.71%
0.71%
0.65%
0.54%
0.52%
369,723,253 65.78%
562,080,320 100.00%
7. Unquoted Equity Securities
The Company has no listed unquoted equity securities on issue
8.
Interest in Mining Licences
The Company is an exploration entity, below is a list of its interest in licences, where the licences are
situated and the percentage of interest held.
Project
Description / Number
Ownership
Location
Gold Links Permitted Mine
36 Patented Claims
Gold Links Permitted Mine
20 Unpatented Claims
Lucky Strike Permitted Mine
32 Patented Claims
Lucky Strike Permitted Mine
75 Unpatented Claims
Raymond & Carter Permitted Mine
81 Patented Claims
Raymond & Carter Permitted Mine 6 Unpatented Claims
Colosseum Permitted Mine
3 Patented Claims
Colosseum Permitted Mine
80 Unpatented Claims
Udu
Udu
SPL1387
SPL1396
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
California USA
California USA
Fiji
Fiji
ANNUAL REPORT 2022
ADDITIONAL INFORMATION
DATELINE RESOURCES LIMITED
FOR THE YEAR ENDED 30 JUNE 2022
ADDITIONAL INFORMATION
FOR THE YEAR ENDED 30 JUNE 2022
6. Top 20 Shareholders
The top 20 largest fully paid ordinary shareholders together held 65.78% of the securities in this class
and are listed below:
Holder Name
1 Mark Johnson
2 SSX
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4 Stephen Baghdadi
5 MUTUAL TRUST PTY LTD
6 SPINITE PTY LTD
7 BOND STREET CUSTODIANS LIMITED
8 MR KEVIN STEPHEN DAVIS & MRS ANNETTE MARIA DAVIS
9 BNP PARIBAS NOMS PTY LTD
10 CITICORP NOMINEES PTY LIMITED
11 MR CLIVE THOMAS
12 J STUART FOLEY & AUGHTON PTY LTD
13 BICKHAM COURT SUPERANNUATION PTY LTD
14 MR ROBERT GEOFFREY PAGE & MRS ANGELA MARGARET PAGE
15 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
16 ONE MANAGED INVESTMENT FUNDS LTD
17 JCR INVESTMENTS CO P/L
17 SUNTRACK INVESTMENTS (BEVILLE) PTY LTD
18 MR ANDREW JOHN PATTERSON
19 TORNADO NOMINEES PTY LTD
20 TORNADO NOMINEES PTY LTD
Total
Total issued capital
Holding
% IC
98,394,958 17.51%
95,832,698 17.05%
9.48%
53,259,187
4.63%
26,028,541
2.19%
12,302,000
1.67%
9,400,000
1.60%
9,011,111
1.37%
7,711,500
7,216,664
5,904,715
4,978,934
4,900,000
4,810,393
4,360,000
4,065,403
4,001,884
4,000,000
4,000,000
1.28%
1.05%
0.89%
0.87%
0.86%
0.78%
0.72%
0.71%
0.71%
0.71%
3,628,667
3,016,598
2,900,000
0.65%
0.54%
0.52%
369,723,253 65.78%
562,080,320 100.00%
7. Unquoted Equity Securities
The Company has no listed unquoted equity securities on issue
8.
Interest in Mining Licences
The Company is an exploration entity, below is a list of its interest in licences, where the licences are
situated and the percentage of interest held.
Description / Number
36 Patented Claims
20 Unpatented Claims
32 Patented Claims
75 Unpatented Claims
81 Patented Claims
Project
Gold Links Permitted Mine
Gold Links Permitted Mine
Lucky Strike Permitted Mine
Lucky Strike Permitted Mine
Raymond & Carter Permitted Mine
Raymond & Carter Permitted Mine 6 Unpatented Claims
Colosseum Permitted Mine
Colosseum Permitted Mine
Udu
Udu
3 Patented Claims
80 Unpatented Claims
SPL1387
SPL1396
Ownership
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Location
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
Colorado USA
California USA
California USA
Fiji
Fiji
DATELINE RESOURCES 59
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2022
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ASX:DTR
ACN: 149 105 653
ASX:DTR
T: + 61 (0)439 449 999
datelineresources.com.au