Annual Report
for the year ended 30 June 2019
De Grey Mining Limited
ABN: 65 094 206 292
De Grey Mining Limited
Contents
Corporate Information ............................................................................................................................. 2
Chairman’s Letter ..................................................................................................................................... 3
Review of Operations ............................................................................................................................... 5
Directors’ Report .................................................................................................................................... 19
Audit Independence Declaration ........................................................................................................... 33
Consolidated Statement of Comprehensive Income ............................................................................. 34
Consolidated Statement of Financial Position ....................................................................................... 35
Consolidated Statement of Changes in Equity ...................................................................................... 36
Consolidated Statement of Cash Flows ................................................................................................. 37
Notes to the Consolidated Financial Statements .................................................................................. 38
Director’s Declaration ............................................................................................................................ 65
Audit Report ........................................................................................................................................... 66
ASX Additional Information ................................................................................................................... 70
Annual Mineral Resources Statement ................................................................................................... 72
Schedule of Interests in Mining Tenements .......................................................................................... 76
1
De Grey Mining Limited
Corporate Information
ABN 65 094 206 292
Directors
Simon Lill (Executive Chairman)
Andrew Beckwith (Technical Director & Operations Manager)
Peter Hood (Non-Executive Director)
Eduard Eshuys (Non-Executive Director
Bruce Parncutt (Non-Executive Director)
Company Secretaries
Craig Nelmes
Patrick Holywell
Registered Office and Principal Place of Business
Level 3, Suites 24-26,
22 Railway Road
SUBIACO WA 6008
Telephone: +61 (0)8 6117 9328
Facsimile: +61 (0)8 6117 9330
Postal Address
PO Box 2023,
SUBIACO WA 6904
Solicitors
Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
PERTH WA 6000
Automic Group
Level 2/267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Auditors
Butler Settineri (Audit) Pty Ltd
Unit 16, First Floor Spectrum Offices
100 Railway Road
SUBIACO WA 6008
Internet Address
www.degreymining.com.au
Email Address
admin@degreymining.com.au
Stock Exchange Listing
Australian Securities Exchange (ASX code DEG)
Frankfurt Stock Exchange (FRA code WKN 633879)
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De Grey Mining Limited
Chairman’s Letter
Dear Shareholders,
I am pleased to report than your company is in a significantly stronger position today than it was twelve months ago.
Most notably, the acquisition of Indee Gold Pty Ltd the owner of a significant tenement package that forms part of the
Pilbara Gold Project (“PGP”), was completed in August this year.
De Grey now owns 100% of PGP, unencumbered.
The completion of the acquisition was funded after the year end by a capital raising and entitlements issue totalling $22M,
underwritten by Bell Potter, supported by many existing shareholders and introducing a number of Australian institutional
investors to the company’s register.
Consequently, the Company has welcomed many new shareholders to the register, perhaps most notably Northwest Non
Ferrous Australia Mining Pty Ltd, the previous vendors of Indee Gold Pty Ltd and whom now hold a 6.31% interest in
Company.
DGO Gold Limited, now our largest shareholder, are also to be thanked for their support and increasing their shareholding
by investing a further $3.75M in the Company. Clearly all other shareholders, be they existing or new, who contributed are
also thanked for their support.
The ambitious decision 2½ years ago to acquire Indee Gold for $15 million has now been vindicated. At the time of entering
the option to acquire the Indee Gold landholding, the Company’s market capitalisation was only $3.5M. However, the
Board understood that joining the Indee and the Turner River assets would provide the opportunity for scale that is only
now beginning to be recognised.
The acquisition of Indee Gold was made at the time at an effective cost of A$27.88 per oz. Since then we have spent $9.4M
on the Project to increase resources on the Indee tenements by 603,400 oz to 1,141,400 oz for a total finding cost of $15.57
per oz and a total acquisition cost of $21.37 per oz.
These numbers include the defining of new resources and the conversion of a portion of resources from Inferred to
Measured and Indicated categories, whilst also including activity on the conglomerate gold prospects also situated on the
Indee tenements. We expect the discovery cost to continue to reduce and use by way of example recent finding costs at
Toweranna where the resource has increased from 40,700 oz (Inferred) before we started drilling to 356,600 oz (284,000oz
Indicated) at a finding cost of less than $10/oz. Our goal is to continue this trend of discovering low cost new resource
ounces.
Our 100% owned tenement package is well located within 80km south of Port Hedland and comprises approximately 1,500
km2 of what we firmly believe will be a major new gold province of Western Australia. The potential for extension of
resources and additional discovery across the tenements is extremely high and is well covered in the Operations Review.
To date only 10% of the 200 plus kms of shear zones and new intrusion related targets have been drill tested in any detail,
with most of that drilling less than 150m from surface. A significant aircore drilling program is underway across these highly
prospective structures with the aim of further new and substantial discoveries.
De Grey’s exploration team continue to achieve a high rate of drilling success, with 53% of diamond holes achieving
intersections of greater than 10 gram metres (i.e. 5m x 2 gm) and 45% of RC holes greater than 5 gram metres (i.e. 5gms x
1m). The drilling results achieved to date are at least comparable to similar stage projects in the better explored Yilgarn
Craton and confirm the high prospectivity in this part of the Pilbara. Resource finding costs referred above are also
comparable with many Yilgarn brownfields projects adding to the company’s confidence of further resource additions at
reasonable exploration expense.
The discovery success to date combined with the large inventory of untested targets lends strong support to the Board’s
conviction that De Grey’s land position encompasses one of the largest under explored gold provinces in the world in the
favourable low sovereign risk environment of Western Australia.
Data on mature, well-explored gold provinces of similar scale show an asymptotic distribution of deposit size with the
largest deposit in a province often containing greater than 30% of total province gold resources. Our exploration potential
in the emerging Pilbara Gold Province is enhanced by the view that the largest deposits are yet to be discovered or fully
delineated.
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De Grey Mining Limited
We now have 3 rigs on site concentrating on the regional aircore exploration and resource extensions at the Company’s
key resource areas of Withnell, Toweranna and Mallina. We are targeting each of these larger gold camps as we believe
they will all grow substantially with our expectation being that each may well surpass 1M ounces in the fullness of time.
Our exploration strategy is to continue to explore and increase resources with view to de-risk future developments through
a strong resource inventory of large shallow open pit and underground mines. The scale, potential and resource distribution
is evolving rapidly as we advance our understanding of potential economics. Current drilling programs are designed to
improve that understanding as quickly as possible, whilst continuing to increase the project’s gold endowment.
We have consistently advised our short-term targets to achieve +2M ounces before the end of the year, and +3M ounces
before the end of 2020. We remain confident with reaching these self-imposed milestones and believe that the bulk of
those additional ounces may well be defined from the key resource centres of Withnell, Mallina and Toweranna in the
current phase of exploration.
We have welcomed the experience of Messrs Peter Hood, Eduard Eshuys and Bruce Parncutt to the Board. The ability to
attract high calibre Directors is testament to the quality of the project. I would urge you to read their profiles in the
Director’s report.
We thank Messrs. Steve Morris and Brett Lambert, both of whom stepped down from the board in August after serving the
company for 5 and 2 years respectively. Their contribution and support of the company has re-established the Company
with 100% ownership of a major Australian gold project.
Similarly, I wish to thank all staff members and contractors for their hard work and dedicated efforts during the last 12
months – it is not always easy through the cycles of exploration campaigns but we are all believers in the project and remain
dedicated to the outcomes we are seeking to achieve.
In closing while thanking shareholders for your continuing support I also commend you to read this annual report carefully.
The potential for shareholder value growth over the next several years is significant.
Yours sincerely,
Simon Lill
Executive Chairman
4
De Grey Mining Limited
Review of Operations
The following review of operations discusses the Company’s activities during the year. De Grey’s focus is on the Pilbara
Gold Project (PGP), a structural shear and intrusion hosted gold project with a resource inventory of 29.65Mt @ 1.8g/t
for 1.7Moz that is expected to grow substantially as further exploration advances.
During the year exploration activities continued at the PGP, located within one hour’s drive from the major coastal port
and mining town of Port Hedland, approximately a two hour flight direct from Perth in Western Australia (Figure 1). The
acquisition of Indee Gold Pty Ltd, subsequent to the period, consolidates 100% of the key project areas and covers
~1,500km2 of highly prospective Archaean aged rocks and controlling structures. Additional joint venture and option
agreements to the immediate south provide De Grey with the right to earn between 70-80% of additional tenements. .
The main joint venture tenement area is the Farno McMahon ground, EL 47/2502 where our Joint Venture partner is
Novo Resources of Canada.
The PGP is an outstanding exploration and future development gold project, that is well located in an infrastructure rich
area of the Pilbara. The PGP hosts the largest gold resources in the Pilbara with excellent potential for significant increases
as all five major gold resource areas remain open in most directions and to date have only received relatively shallow
drilling. De Grey is continuing to aggressively drill to increase overall resources with the initial corporate targets of +2.0M
ounces by the end of 2019, and +3.0M plus by the end of 2020 with new discoveries expected to increase resources well
beyond the stated targets as exploration advances.
The Company continues to explore and increase resources as part of the Company’s overall strategy to de-risk the project
prior to development.
Figure 1: Project location
The Company recognises the province scale landholding that it now controls which includes over 200km of under
explored mineralised shear zones and numerous new intrusion related targets (Figure 2). De Grey estimates only 10% of
the prospective NE trending shear zones have been drilled in any detail with RC and diamond drilling. Most drill holes are
less than 150m in depth, with very few below 300m.
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De Grey Mining Limited
Mallina Basin – Highly Prospective Archaean Sedimentary Basin in the Pilbara region
In the Pilbara, the Mallina Basin is the largest Archaean sedimentary basin by strike extent and volume and is interpreted
to be controlled by large deep seated mantle tapping structures (NW corridor) that allow primary gold rich fluids to flow
into the basin. This underlying “deep seated mantle tapping” architecture creates an excellent fluid pathway and the
complex folding and shearing history provides excellent structural traps for gold mineralisation in the various shear zones,
anticlinal structures and associated intrusions.
The shear zone style of gold mineralisation is well documented with defined resources including the Withnell, Wingina,
Mt Berghaus and Mallina deposits which occur as generally steep sub vertical lodes within large regional scale shear
zones. Large extents of the shear zones have highly prospective zones of strong gold and associated pathfinder elements
already defined yet have not been drill tested to date. This style of mineralisation forms the largest portion of the current
known resources.
During the year the resources at Toweranna were substantially increased from the previous 2.1Mt @ 2.2g/t for 143,900
oz to 5.33Mt @ 2.1g/t for 356,600oz within 200m from surface. This increase underlined the substantial potential of this
intrusion style of mineralisation throughout the project area. A recent database review, has defined seven (7) new
intrusion related gold targets, including five high priority drill targets with encouraging, shallow gold intersections
highlighted. These five targets have not been followed up since drilling and sampling occurred between 1998 to 2005.
Project Potential
The potential to host significantly larger deposits or to grow one of the currently identified deposits, is considered likely
based on evidence that most large world class gold provinces host several major deposits (>3.2Moz) and potentially one
“mega” deposit (>32Moz) as seen in many highly explored gold provinces around the world. The diagram below, taken
from Hagemann and Cassidy aims to demonstrate this principle for the Yilgarn.
The Yilgarn is a mature exploration region with a highly endowed inventory of large gold deposits. The deposits are
dominantly hosted in structurally controlled sub-vertical shear zones and inter-related intrusives. In contrast the Mallina
Basin is a very immature exploration region with all the same hall marks and styles of gold mineralisation as seen in the
Yilgarn. Accordingly, De Grey is confident the PGP resources will substantially grow as exploration continues across De
Grey’s large land holding.
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De Grey Mining Limited
Further De Grey has reviewed all past drilling and exploration costs across the project area and has calculated overall
discovery costs per inferred gold ounces at around $15-20/oz for the current 1.7Moz resource. This is below the
Australian industry average of approximately $20-25/oz for inferred resources. This overall discovery costs of $15-20/oz
is expected to continue and it is important to note the current discovery costs includes over 62% in the Measured and
Indicated categories, making the value add to shareholders even more appealing.
Across the project, the drilling database shows a high success rate for intersecting significant gold mineralisation in
diamond core and RC drilling which in turn leads to a rapid increase in resources as indicated below.
• DDH drill holes >10 gram x metres (i.e. 5m @ 2g/t) is 53%
• RC drilling >5 gram x metres (i.e. 5m @ 1g/t) is 45%
The recent resource increase at Toweranna is a prime example where a high drilling hit rate has been achieved together
with a new resource increase of 212,000oz (from 143,900 ozs (2018) to 356,600 ozs (2019)) has been added for a
discovery cost well below $10/oz during the last 6 months. As resource extension drilling continues to focus on the larger
Withnell, Mallina and Toweranna deposits there is an expectation this lower discovery cost will continue into the new
year.
2019/2020 program
Drilling to date has defined an overall gold resource of 29.65Mt @ 1.8g/t for 1.7Moz on granted exploration and mining
leases owned 100% by De Grey.
The 2019/2020 exploration program is to be directed at increases in inferred resources with 70% of the funds earmarked
for step-out RC and diamond drilling at the Withnell, Mallina and Toweranna deposits as the highest priority targets.
The 2019/2020 field season will be an exciting period as the Company also undertakes a major push for new discoveries.
The remaining 30% of funds is to focus on new discoveries along the prospective shear zones and intrusion targets with
a substantial 70,000m aircore program currently underway. This large program has commenced (Figure 2) and aims to
build on an extensive review during 2018/2019 of past drilling, geology, geophysics and geochemical sampling across the
project. A new regional structural architecture, geology interpretation and prioritisation of targets has been undertaken.
Outcomes of this detailed work reveal the Mallina Basin, NE trending structures and Sanukitoid intrusions correlate well
with similar gold large regional scale structures as seen in the Eastern Goldfields Yilgarn Craton. These features suggest
the gold mineralisation of the Pilbara is very similar in age, geometry, host rocks and alteration styles as many of the gold
deposits mined throughout the Kalgoorlie to Wiluna region.
Figure 2
Over 200km of prospective and under-explored shear zones and new
intrusion targets
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De Grey Mining Limited
2019 Gold Resource Increase
The new Total Mineral Resource (Table 1) encompasses drilling to 30 June 2019 and is now reported as
29.65Mt @ 1.8g/t Au (1,679,700oz), comprising:
•
•
•
•
•
M & I (62%)
Inferred (38%)
Oxide (34%)
Fresh (66%)
Withnell underground 2.22Mt @ 4.1g/t Au (291,900oz)
16.97Mt @ 1.8g/t Au (999,100 oz)
12.68Mt @ 1.7g/t Au (680,700 oz)
11.83Mt @ 1.5g/t Au (570,100 oz)
17.81Mt @ 1.9g/t Au (1,109,700 oz)
Resource drilling undertaken during the 2018/2019 season including in excess of 21,000m of RC and 10,000m of diamond
drilling and has resulted in a 21% increase in global resources. This equates to a discovery cost of around $15 per ounce.
The quality of the resources is substantiated by 62% in the Measured and Indicated categories (up from 53%), mostly in
the shallow open pit resources, and the relatively high grade of 1.8g/t (11% increase) which compares favourably to other
recent open pit developments in Western Australia. Potential for significant increases remains at all the existing resource
deposits.
Table 1 Total Gold Mineral Resources by Mining Centre
The open pit resources are quoted using a 0.5g/t lower cut off and the Withnell underground resource using a lower grade
cut of 2g/t. The resources at Mt Berghaus, Mallina, Wingina, Camel, Roe, Dromedary and Calvert remain unchanged and
will be updated after further drilling is completed at each deposit.
Most significant resource changes occurred in the following deposits:
▪
▪
Toweranna open pit (5.33Mt @ 2.1g/t Au for 356,600oz) resource model has been extended from 100m to
200m depth to reflect the recent infill and extensional drilling completed to the end of June 2019. The multiple
stacked lodes remain open along strike to the NE and particularly at depth.
In an ASX release dated 13 March 2019, De Grey defined an Exploration Target for Toweranna from 0 - 400m of
9.6Mt to 11.2Mt at a grade range of 2.1g/t to 2.3g/t for 680,000oz to 800,000oz (includes existing resource of
2.01Mt @ 2.2g/t Au for 143,900oz).
Exploration Target Cautionary Statement - The potential quantity and grade of the Exploration Target is
conceptual in nature. There has been insufficient exploration to determine a mineral resource and there is no
certainty that further exploration work will result in the determination of a mineral resource.
The resource increase at Toweranna reflects the increase to 200m, with drilling completed and continuing testing
the target to 400m depth and beyond.
Withnell Underground (2.2Mt @ 4.1g/t Au for 291,900oz) is now separated from the Withnell open pit resource
using the 2017 Scoping Study nominal $1600 open pit shell number 33. The underground resource has been
remodelled below this pit shell based on recent infill and stepout drilling which increased and extended the
multiple high grade lodes previously defined. The global grade averages 4.1g/t Au with individual lodes ranging
from 2.7g/t up to 7.3g/t. The mineralisation remains open along strike and at depth.
8
MtAu g/tAu OzMtAu g/tAu OzMtAu g/tAu OzMtAu g/tAu OzOxide 0.921.955,4003.051.5151,9001.121.348,2005.091.6255,500Fresh0.621.733,5006.772.1463,1005.302.3389,30012.692.2885,800Total 1.541.888,9009.821.9615,0006.432.1437,50017.792.01,141,400Oxide 2.681.8152,1001.841.587,6002.211.174,9006.741.5314,500Fresh0.401.620,5000.681.634,9004.041.3168,4005.121.4223,800Total 3.081.7172,7002.521.5122,5006.251.2243,20011.861.4538,400Oxide3.601.8207,6004.901.5239,4003.341.1123,10011.831.5570,100Fresh1.021.654,0007.452.1498,0009.341.9557,60017.811.91,109,700Total4.621.8261,60012.351.9737,50012.681.7680,70029.651.81,679,700Total AreaTypeMeasuredIndicatedInferredWithnell Mining CentreWingina Mining CentreTOTAL Pilbara Gold Project
De Grey Mining Limited
Withnell Gold Deposit
Withnell incorporates a single and continuous 6km long strike length of shear zone hosted gold mineralisation defined
over a number of pits including the main dominant Withnell open pit and underground resource together with the small
satellite deposits Camel, Roe and Dromedary. The main Withnell resource is 1.2km long with underground lodes
extending to 400m in part and generally shallower depths. This resource remains extensively open at depth along multiple
underground lodes. The satellite deposits represent other under drilled areas along the 6km strike length, where drilling
is generally limited to only 100m depth. The immediate focus of drilling is at the main Withnell deposit and extension
along strike to the west and at depth on the various underground lodes.
The recent resource update is also the first time an underground resource has been stated at Withnell. This higher grade
underground resource is expected to grow during the 2019/2020 drilling program as depth extensions are tested along
the multiple subvertical lodes beneath the open pit resources.
Figure 3
Existing Withnell open pits
Figure 4
Existing Withnell open pits
9
Figure 5 - Withnell Lode 1 showing recent extension drilling and open at depth along 1.2km strike
De Grey Mining Limited
Toweranna Gold Deposit
The Toweranna deposit grew 148% to 5.33Mt @ 2.1g/t for 356,600oz during the period, through a substantial RC and
diamond drilling program testing the top 200m of the deposit and now is the second largest deposit at the project. The
recent drilling was completed on a nominal 40m x 40m basis and further resource potential along strike to the NE and
below 200m depth is being tested as part of the current 2019 second half year program.
The deposit represents a new style of mineralisation not previously recognised in the Pilbara, yet is well known in the
Yilgarn to host many multi-million ounce gold deposits. The gold mineralisation is hosted in multiple flat lying quartz -
sulphide veins within a circular intrusive body and into the surrounding sediments (Figure 6) . The stacked lodes remain
open to the NE and at depth. Drilling is currently underway to test for shallow open pit resources to the NE and at depth
from 200m depth to a nominal 600m and a deeper drill hole is planned to test to 1000m.
10
Figure 6
Toweranna multiple staked quartz-sulphide lodes
De Grey Mining Limited
The potential of this style of mineralisation is considered high, as the stacked quartz vein lodes are expected to continue
at depth and the individual quartz lodes contain significant high grade veins. This style of deposit is well known in other
Archean regions of the world, including the Yilgarn where examples include the Wallaby(+8moz) and Jupiter (+1.5Moz)
deposits. The Lamaque and Sigma (9.5Moz combined) deposits of Canada are also two examples of large multi-million
ounce deposits in similar Archaean aged intrusions.
Metallurgical testwork on dedicated drill core from Toweranna indicates the oxide and fresh ore is free milling. High gold
recovery was defined in all of the oxide zone samples, ranging from 92.0% at the coarse grind size to 94.7% at 75µm
within 24 hour extraction time. The fresh rock samples returned excellent results with 94.7% gold recovery at 150 µm
and 96.3% at the finer grind size over the 24 hour timeframe.
Separate samples were also tested for gravity recovery, with oxide and fresh rock samples returning recoveries of 20.8%
and 54.3% respectively. The high levels of gravity gold indicate that it may be possible to lift total gold recovery by
installing a gravity concentrator ahead of the CIL circuit.
Comminution test work was carried out to assess the physical properties of the Toweranna samples. The oxide material
was classified as soft with a low abrasion index, similar to the other deposits at the PGP. The fresh samples were
classified as medium to hard with a high abrasion index.
11
New Toweranna style Targets
The recent 2019 drilling at Toweranna and resultant resource upgrade has established Toweranna style mineralisation as
an important new style of mineralisation in the district. Review of the past data has defined 7 new targets. All seven
targets are significantly larger than Toweranna, ranging in strike length from 0.5km to 2km and five are considered walk
up drill targets based on encouraging historic gold results including:
De Grey Mining Limited
Scooby - 3m @ 2.67g/t, 2m @ 5.22g/t, 6m @ 1.03g/t and 2m @ 2.77g/t.
Shaggy - 12m @ 1.25g/t incl 3m @ 4.19g/t, 13m @ 0.98g/t incl 3m @ 2.86g/t
Antwerp -16m @ 0.74g/t incl 8m @ 1.28g/t, 8m @ 0.84g/t incl 4m @ 1.25g/t
Charity Well - 2m @ 14.28g/t, 4m @ 2.24g/t, 1m @ 7.80g/t
Geemas - 5m @ 1.20g/t, 1m @ 13.5g/t, 1m @ 7.02g/t, 3m @ 1.10g/t
The other two identified targets, Alectroenus and Hemiphaga have never been drill tested. Testing of these targets have
commenced as part of the overall 2020 drilling programs.
Figure 7
Scooby Prospect section 650580E showing shallow drill intercepts
Mallina – New SAM geophysics data provides numerous new targets
The Mallina deposit occurs in a large 6km long shear zone with multiple lodes defined to date. Overall the deposit is
extensively under drilled and as a consequence the mineralisation is less well understood. The Mallina resource was not
updated in the July 2019 resource update as insufficient drilling had been completed. However drilling completed during
the period has demonstrated significant zones of higher grade gold mineralisation and wider alteration zones are evident
in the Central Zone. The deposit is a high priority for new resource extensions and will be targeted during the 2019/2020
program.
As examples of the large resource upside, a high grade gold (13.4m @ 5.1g/t) was intersected on section 609540E (Figure
8). This mineralisation appears to be spatially related to a narrow porphyry intrusion. A second broader alteration zone
(up to 50m thick) occurs on section 609315E (Figure 9) with significant zone of gold mineralisation, 56m @ 3.04g/t
including 30m @ 5.29g/t intersected. Subsequent drilling below this zone has intersected 16m @ 3.0g/t including 6m @
4.66g/t and a lower hole intersected strong alteration but lower gold values. Supergene enrichment and possible
depletion are considered important and - further drilling is required to better understanding these relationships and/or
other orientations of the controlling structures.
In order to better focus drilling, a Sub-Audio Magnetic (SAM) survey was undertaken (Figure 10). The results of this survey
have shown many along strike extension targets, new untested targets and potential new orientations of known gold
mineralisation. As significant program of aircore drilling is currently underway to test many new SAM targets and possible
structural controls in differing orientation. RC drilling for resource extensions will be planned thereafter.
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De Grey Mining Limited
Metallurgical test work on the Mallina mineralisation has been completed with results showing 94% recovery in the oxide
material and 86% via a sulphide float to produce a sulphide rich concentrate with a mass pull of approximately 8.6%
followed by pressure oxidation of the concentrate. This processing is in line with a proposed processing flowsheet as
designed by GRES and is as expected very similar to the Withnell fresh ore processing requirements. No gravity test work
has been completed to date.
Comminution test work was carried out to assess the physical properties of the Mallina samples. The oxide material was
classified as soft with a low abrasion index, similar to the other deposits at the PGP. The fresh samples were classified as
hard with a high abrasion index.
Figure 8 - Mallina Central Section 609540E
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Figure 9 - Mallina Central Section 609315E
De Grey Mining Limited
Figure 10 - Mallina SAM survey showing new long strike targets to be tested with aircore drilling.
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De Grey Mining Limited
Economic and Development studies
During the year economic evaluations continued with a major focus of work centred on determining the metallurgy of the
oxide and fresh domains at each deposit. This preliminary work is now complete with all deposits showing the oxide domain
recoveries of +94% and the various fresh domains ranging from free milling material with +94% recoveries to sulphide
dominant mineralisation with recoveries ranging from 87% to 90%.
GR Engineering Services were engaged to design and cost an efficient 2Mtpa processing plant to PFS standards based on
the metallurgy of the ore materials. This flowsheet design has been completed and comprises an industry standard CIL
processing circuit for the oxide and free milling ores and an additional sulphide float and oxidation sub-circuit (Figure 11).
Final design and costings remain to be finalised.
Cube Consulting have been engaged to assess various open pit optimisations and scheduling as a first pass evaluation. This
work is currently progressing based on the recent July 2019 resources. Additionally, Cube have also been engaged to
complete a high level scoping level evaluation of a Withnell underground mining operation. This assessment is currently
underway based on the recent underground resource of 2.22Mt @ 4.1g/t for 291,900oz. Both assessments are advancing
and further resource extension drilling recommended at all resources, particular Withnell, Mallina and Toweranna to de-
risk the project with a larger resource inventory.
Ore sorting is a growing field that looks at pre-processing or conditioning of certain ore types where the ore is separated
from waste material prior to processing in the processing plant. At Toweranna, preliminary ore sorting test work was
competed on the various rock types and quartz vein material, by Tomra Sorting Pty Ltd (Tomra). The initial results are
positive with a single pass optical sorting method, using 20-100m fragments, providing excellent separation of the gold
hosting quartz veins and the non-mineralised rock types. Further detailed ore sorting is planned to be completed.
Economic evaluation of the various mining scenarios, including open pit, underground mining and the benefits of ore
sorting at Toweranna continues to advance in parallel to increased resource extension drilling programs.
Figure 11 - Simplified processing circuit designed by GRES
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De Grey Mining Limited
Other Gold Activities
• Conglomerate Gold
Conglomerate gold is a new style of gold mineralisation recently recognised in the region. De Grey has progressed the
geological understanding of this mineralisation with diamond drilling at Jarret Well and Steel Well together with bulk
sampling from trenches at Loudens Patch.
At Loudens bulk 250kg sampling and on site crushing and gravity processing was carried out in order to understand the
coarse gold content of the prospective conglomerate unit. Results show visible coarse grained gold is present in the
conglomerate unit which is approximately 1-2m thick at Loudens West. Two trenches were completed and the average
grade of the coarse gold component in each of the trenches is 3.3g/t in LTR001 and 2.4g/t in LTR002. The fine gold content
remains to be tested and would be additional to the coarse gold grade.
A diamond core hole was completed at Jarret Well and another at Steel Well which has provided a detailed stratigraphic
profile of the sequence and lithologies. At Jarret Well the first diamond hole intersected fresh conglomerate sequence
from 57.5m to 97m depth with a pyrite rich conglomerate intersected from 73.5m to 85.1m. The pyrite bearing
conglomerate contains euhedral to rounded pyrite and is interpreted to represent a similar “buck shot” pyrite rich unit
as seen at Novo Resources Corp’s Comet Well and Purdy’s prospects.
During the year ahead the Company will continue to monitor its conglomerate peer’s activities with a low level of
ongoing activity whilst it continues to focus on its structural gold resource growth.
• Lag Gravels with Novo Resources
In July 2019, De Grey entered into a binding letter of intent (LOI) with Novo Resources Corp (“Novo”) expanding De Grey’s
exploration to include gold-bearing lag gravel deposits across De Grey’s large land position. Novo, with new joint venture
partner Sumitomo Corporation, are currently exploring the Egina lag gravels project immediately to the south of De Grey’s
project. This agreement allows De Grey to tap into Novo’s specialised experience and add value through the additional
search for near surface gold-bearing lag gravel deposits. Importantly, the Indee Gold mining tenements, existing
resources including a 300m buffer around each deposit (and any future mining lease related to these existing resource
areas), in situ “hardrock” conglomerate gold targets and an existing third party gravel right are excluded from the LOI.
Under the LOI, Novo has the right to explore De Grey’s project for gold-bearing lag gravel deposits for an initial three-year
period having paid AUD $1 million, of which AUD $300,000 held in escrow by Novo until De Grey acquired Indee Gold Pty
Ltd, which occurred subsequent to the financial year end on 22 August 2019.
Prior to the expiry of the Initial Period, Novo may elect to extend its exploration rights for an additional two years (the
“Second Period”) by paying an additional AUD $1 million (the “Second Payment”). Beyond the Second Period, Novo can
elect to continue to extend its exploration rights in two year increments by paying an additional AUD $1 million per
extension period subject to the successful submission of a mining lease application (Mining Area) or De Grey’s waiver of
this condition.
If a mining lease is granted over a proposed lag gravel Mining Area on De Grey’s tenements, a Joint Venture is formed and
Novo will be deemed to have acquired an 80% interest in the relevant initial Mining Area (and any future Mining Areas) by
giving notice to DEG and on payment of a one-time amount of AUD $2 million. If the Joint Venture is established during
the Initial Period, Novo will also be required to pay the Second Payment of $1M. Thereafter, the Joint Venture is to be
funded pro-rata and includes an election whereby De Grey may dilute and retain to a 1% net smelter royalty.
16
De Grey Mining Limited
Non Gold Assets
During the period , two diamond holes (132 metres) were completed at the King Col prospect. The drilling confirmed the
strong lithium, tantalum and caesium grades previously intersected in RC drilling. The mineralisation is associated with
the lithium bearing minerals of petalite, spodumene and lepidolite and caesium with pollucite. The drill core has been
logged by the WA Geological Survey using the Hylogger spectral scanner as part of the EIS project funding.
The existing base metal (Zn-Pb-Cu-Au-Ag) resources and associated 60km of prospective greenstone belt stratigraphy has
been reviewed and a series of new targets generated. Follow-up drilling is planned to further test these targets during
2019/2020 field season.
As part of the base metals review, Ni sulphide and Platinoid potential has been re-assessed. Specialised soil sampling is
currently underway in association with the CSIRO to determine if surface sampling can be used to target the Ni sulphide
style of mineralisation below the blanket of transported windblown sands. An additional two diamond holes are planned
to test the platinoid potential and is co-funded by the WA Geological Survey EIS funding program.
The company is also assessing the benefits of divesting the non gold assets referred above
Corporate
The key corporate activities for the financial year and ensuing period:
•
•
•
•
•
A $5.0 Million placement was completed in July 2018 under a subscription agreement with Pilbara neighbour DGO
Gold Limited (“DGO”) of which $250,000 had been received in the 2018 financial year. Under the agreement DGO
subscribed for 25M shares at $0.20 per share, with two tranches of free attaching unlisted options, being 12.5M
options exercisable at $0.25 by 30 November 2019; and 12.5M options exercisable at $0.30 by 30 May 2021. The
DGO shares are subject to a 12 month escrow from the date of subscription.
A further $6.04 Million was received during the half-year on the exercise of listed and unlisted class options.
On 21 December 2018, the Company announced it had formally elected to extend the Settlement Date for the
100% acquisition of Indee Gold Pty Ltd (“Indee Gold”) to 24 July 2019. The extension payment of A$700,000 was
made to the owners of Indee Gold, being Northwest Nonferrous Australia Mining Pty Ltd (“NNAM”) and the total
consideration remaining reduced to:
➢
➢
Payment of $9.7M in cash; and
The issue of $3.0M of equity in De Grey at a price that is 90% of a 20-day VWAP immediately prior to
settlement.
Entered into a Letter of Intent (ASX: “De Grey expands exploration potential through LOI with Novo” 1 July 2019)
with Novo Resources of Canada, allowing Novo to explore for gold bearing lag gravels across the De Grey
tenements. The LOI provides for an upfront payment of $700,000 (paid) with a further $300,000 payable
following completion of the Indee Gold acquisition. Novo ultimately have the right to enter into an 80:20 Joint
Venture through their election, subject to additional payments and time extensions identified in the ASX release.
Subsequent to the year end the Company finalised an A$22M capital raising with Bell Potter, comprising a $3M
placement at $0.05 per share and a subsequent entitlements issue, fully underwritten by Bell Potter. This
provided capital to finalise the Indee Gold Pty Ltd acquisition and additional capital to support the Company’s
drilling program. The acquisition included the issue of $3M of equity to the Indee Gold vendors.
17
De Grey Mining Limited
Disclaimers
Competent Person
The information in this report that relates to exploration results is based on, and fairly represents information and supporting
documentation prepared by Mr. Andrew Beckwith, a Competent Person who is a member of The Australasian Institute of Mining and
Metallurgy. Mr. Beckwith is a consultant to De Grey Mining Limited. Mr. Beckwith has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr.
Beckwith consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person
who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services.
Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr Payne consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Exploration Target Cautionary Statement
The information in this report that relates to Withnell Underground Exploration Target is based on, and fairly represents information
and supporting documentation compiled by Mr. Andrew Beckwith, a Competent Person who is a member of The Australasian Institute
of Mining and Metallurgy. Mr. Beckwith is a consultant to De Grey Mining Limited. Mr. Beckwith has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore
Reserves”. Mr. Beckwith consents to the inclusion in this report of the matters based on his information in the form and context in which
it appears.
Forward Looking Statements
Statements regarding De Grey’s plans with respect to the mineral properties, resource reviews, programmes, economic studies and
future development are forward-looking statements. There can be no assurance that De Grey’s plans for development of its mineral
properties will proceed any time in the future. There can also be no assurance that De Grey will be able to confirm the presence of
additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed
on any of De Grey’s mineral properties.
18
Directors’ Report
Your directors present their report on the consolidated entity comprising De Grey Mining Limited (“De Grey” or “the
Company”) and its controlled entities (“the consolidated entity” or “Group”) for the financial year ended 30 June 2019.
De Grey Mining Limited
All amounts are expressed in Australian dollars unless otherwise stated.
De Grey is a company limited by shares that is incorporated and domiciled in Australia.
Directors
The following persons were Directors of the Company during the whole of the financial year and up to the date of this report,
except as otherwise indicated:
Simon Lill
Andrew Beckwith
Peter Hood (appointed 16 November 2018)
Eduard Eshuys (appointed 23 July 2019)
Jeffrey (Bruce) Parncutt (appointed 23 July 2019)
Steven Morris (resigned 22 July 2019)
Brett Lambert (resigned 22 July 2019)
Information on Directors
Simon Lill, BSc MBA
Executive Chairman
Mr. Lill was appointed to the board in October 2013 and has a BSc and MBA, both from The University of Western Australia.
He has extensive experience over three decades with ASX listed companies, spanning small cap companies to larger concerns,
involving restructuring, corporate, compliance, marketing, company secretarial and management activities.
During the past three years Mr Lill has also served as a Director of the following listed companies:
Date appointed
18 May 2011
2 September 2013
29 March 2018
Company
Mejority Capital Limited
Purifloh Limited
XPD Soccer Gear Group Limited
Date ceased
-
-
-
Interest in shares and options:
13,239,063 ordinary fully paid shares
1,000,000 options over ordinary shares in De Grey Mining Limited
700,000 performance rights
Andrew Beckwith, BSc Geology, Aus IMM
Technical Director & Operations Manager
Mr Beckwith was appointed to the board in October 2017, having commenced his time with De Grey as a Technical
Consultant back in February 2016.
He is a successful and experienced explorer who has previously held senior technical roles with AngloGold Ashanti, Acacia
Resources, Helix Resources, Normandy NFM, North Flinders Mines, BP Minerals Australia, and Westgold Resources. At
Westgold, Mr. Beckwith initially held the role of exploration manager before appointment as Managing Director.
Additionally, Mr. Beckwith was an Executive director of Bulletin Resources Limited until June 2014.
During his time at Westgold, he was intimately involved in the Explorer 108 Pb-Zn-Ag and the Au-Cu Rover 1 (1.2Moz)
discoveries in the Northern Territory as well as the acquisition of Central Murchison Gold Project located in Western
Australia.
19
During the past three years Mr Beckwith has also served as a Director of the following listed companies:
Company
Carnavale Resources Limited
Date appointed
29 July 2014
Date ceased
-
De Grey Mining Limited
Interest in shares and options:
7,631,668 ordinary fully paid shares
2,000,000 options over ordinary shares in De Grey Mining Limited
800,000 performance rights
Peter Hood, BE(Chem), MAusIMM, FlChemE, FAICD
Non-executive Director
Mr. Hood was appointed to the board on 19 November 2018. Mr. Hood, a Chemical Engineer, has had a distinguished career
in the Australian Mining and Chemical Industries. He held the position of Senior Production Engineer at the Kwinana Nickel
Refinery from 1971 to 1981, then Mill Superintendent of the WMC Kambalda Nickel and Gold Operations between 1982 to
1985. In 1985, he joined Coogee Chemicals Pty Ltd in the position of General Manager and then as their CEO between 1998
and 2005. He then held the position of CEO of Coogee Resources Ltd before retiring in 2008. Through that period he was part
of the management team that oversaw significant growth in Coogee Chemicals company capitalisation.
During the past three years Mr Hood has also served as a Director of the following listed companies:
Date appointed
23 February 2018
10 February 2011
15 September 2011
Date ceased
-
-
-
Company
Cue Energy Resources Limited
GR Engineering Limited
Matrix Composites and Engineering Limited
Interest in shares and options:
3,000,000 ordinary fully paid shares
Committees
Remuneration Committee (appointed 29 August 2019)
Eduard Eshuys, BSc, FAusIMM, FAICD
Non-executive Director
Mr. Eshuys was appointed to the board on 23 July 2019. Mr. Eshuys is a highly experienced and well credentialled geologist
with over 40 years exploration experience in Australia. His successes as Joseph Gutnick’s exploration director are well known.
In the late 1980s and early 1990s he led the teams that discovered the Plutonic, Bronzewing and Jundee gold deposits, and
the Cawse Nickel Deposit. He has also had involvement in the Maggie Hays and Mariners nickel discoveries in the 1970’s.
More recently he was the Managing Director and CEO of St Barbara Limited from July 2004 to March 2009. During this time
St Barbara Limited grew substantially as a gold producer.
During the past three years Mr. Eshuys has also served as a Director of the following listed companies:
Company
DGO Gold Limited
NTM Gold Limited
Interest in shares and options:
Nil
Committees
Remuneration Committee (Chairman, appointed 29 August 2019)
Date appointed
15 July 2010
26 March 2019
Date ceased
-
-
20
De Grey Mining Limited
Jeffrey (Bruce) Parncutt, AO, BSc, MBA
Non-executive Director
Mr. Parncutt was appointed to the board on 23 July 2019. Mr. Parncutt is currently Chairman of investment banking group
Lion Capital and has had a career spanning over 40 years in investment management, investment banking and stock broking,
where he has previously held roles as Managing Director of McIntosh Securities, Senior Vice President of Merrill Lynch,
Director of Australian Stock Exchange Ltd, President of the Council of Trustees of the National Gallery of Victoria, Board
Member and Chairman of the NGV Foundation, member of the Felton Bequest Committee, Council member of Melbourne
Grammar School. He has also held a number of listed public companies directorships, including Acrux Ltd, Praemium Limited
and Stuart Petroleum Ltd.
In 2016, Mr. Parncutt was recognised as Officer in the Order of Australia in the Queen’s Birthday Honours List for
distinguished service to the community as a philanthropist (particularly in arts and education) and as an advocate and
supporter of charitable causes, and to business and commerce. He is currently a member of The Australian Ballet Board, the
University of Melbourne Campaign Board, and the University of Melbourne Centre for Positive Psychology Strategic Advisory
Board, and a Trustee of the Helen MacPherson Smith Trust.
During the past three years Mr Bruce Parncutt has also served as a director of the following listed companies:
Company
Acrux Limited
DGO Gold Limited
Interest in shares and options:
Nil
Date appointed
30 April 2012
23 May 2018
Date ceased
7 December 2016
-
Committees
Remuneration Committee (Chairman, appointed 29 August 2019)
Steven Morris, Dip Fin Mkts
Non-executive Director
Mr. Morris resigned from the board on 22 July 2019.
Committees
Remuneration Committee (appointed 26 July 2018, resigned 22 July 2019)
Brett Lambert, B.AppSc (Mining Engineering), MAICD
Non-executive Director
Mr Lambert resigned from the board on 22 July 2019.
Committees
Remuneration Committee (Chairman, appointed 26 July 2018, resigned 22 July 2019)
Company Secretaries
The following persons acted as Company Secretary of the Company during the whole of the financial year and up to the date
of this report:
Craig Nelmes, BBus
Mr. Nelmes is an Accountant whom joined De Grey in October 2013. He over 25 years experience in finance, secretarial,
governance, financial systems and accounting services to the mining sector in Australia and overseas. His experiences include
over seven years with International Accounting firm Deloitte, nine years with a multi-national resource’s entity and most
recently ten years with Corporate Consultants Pty Ltd, a Company providing accounting, secretarial and administrative
services to ASX and TSX listed entities.
21
De Grey Mining Limited
Patrick Holywell, FGIA GradDipCA GAICD BCom
Patrick Holywell is a Chartered Accountant whom joined De Grey in July 2018. He has over 15 years of experience in corporate
governance, finance and accounting including employment with Deloitte and Patersons Securities Ltd. Mr Holywell has been
employed by and acted as company secretary, CFO and/or director of a number of companies in the resources sector.
Principal Activities
The principal activity of the consolidated entity during the course of the year was exploration and development activities at
the Pilbara Gold Project, 80 kms south west of Port Hedland in the Pilbara region of Western Australia. De Grey currently
controls a considerable tenement package comprising over 1,500km2. The tenement package is highly prospective for gold,
other precious metals and also comprises significant base metals resources (Zn-Ag-Pb) as well as the recently identified
lithium prospects.
Financial Review
The consolidated loss after tax for the year ended 30 June 2019 was $2,009,130 (2018: $2,476,951).
Earnings per share
The basic loss per share for the year ended 30 June 2019 was 0.50 cents per share (2018: 0.85 cents per share).
Dividends
No dividends were paid or declared during the financial year. No recommendation for payment of dividends has been made.
Significant changes in state of affairs
There were no significant changes in the nature of the activities of the Group during the period, other than those included
in the Key Highlights.
Matters subsequent to the end of the financial year
There has been no matters or circumstances occurring subsequent to the end of the financial year that has significantly
affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the
Group in future financial years, other than;
On 16 July 2019, shareholders approved resolutions to proceed with both the Indee Gold Pty Ltd acquisition, as well as
approval to issue $3M of consideration shares to NMAM. Shareholders had previously approved both resolutions on 5
October 2018 but as the Company exercised its option to extend the settlement date out to 24 July 2019, it was necessary
under ASX listing rules to obtain shareholder approval again.
On 18 July 2019, the Company executed a further variation to the acquisition agreement with Northwest Nonferrous
Australia Mining Pty Ltd (“NNAM”) to extend the end date for completion of the Company’s acquisition of Indee Gold Pty
Ltd from 24 July 2019 to on or before 24 August 2019, so as to provide De Grey with the additional time required to
complete a fully-underwritten Entitlement Offer capital raising.
22
De Grey Mining Limited
On 24 July 2019, the Company completed a placement of 60.3 Million shares to sophisticated, professional and other
exempt investor clients of Bell Potter Securities Limited (“BPS”), at a price of $0.05 per share to raise $3.017 Million (before
costs of raising) as well as announcing that BPS would also be fully underwriting a Pro-rata Renounceable Entitlement Offer
on a 1 for 1.28 basis to raise $19.1 Million (before costs of raising), also at an issue price of $0.05 per share. All funds
settled capital raise. The capital raisings were all settled by 14 August 2019.
On 22 August 2019, settlement of the acquisition of Indee Gold Pty Ltd was completed, with the Company making the final
cash payment of $9.7 Million in cash and the issue of 59,065,579 fully paid ordinary shares in the Company (at a deemed
price of 5.0879 cents per share).
On 22 August 2019, the Company also allotted the following fully paid ordinary shares;
•
•
3,802,748 shares in lieu of supplier invoices at a deemed price of 6.5 cents per share.
3,950,000 shares on the exercise of performance rights to directors and employees. These represent Tranches 1, 3 and
5 (Refer Note 17(e)) where each of the respective vesting conditions had been met.
Likely developments and expected results
De Grey seeks to maximise shareholder value through its ongoing exploration and development work at The Pilbara Gold
Project. The Project consists of a combination of 100% owned tenements and tenements with farm in rights in favour of De
Grey, and representing a tenement package of over 1,500Km2 in the Pilbara region of Western Australia, and +200 km of
prospective shear zones hosting mineralisation that includes gold, base metals and lithium.
The Company also recognises the potential of its land package for further substantial gold discoveries with over 40 gold
anomalies already identified, as well as significant underground potential at a number of the existing resources. It is also
anticipated that regional exploration work through a combination of air core and RC drilling will represent part of the overall
plan to increase the resource base will continue through the 2019-2020 financial year and beyond.
Aside from the shear zone hosted resources the Company also controls three zones of conglomerate gold mineralisation and
intends to undertake bulk sample testing. The style of mineralisation does not lend itself to traditional sampling methods
due to nuggety gold mineralisation. The potential of these zones is seen as significant, and exploration work will continue in
tandem with the shear zone hosted mineralisation remaining the strong focus.
De Grey is also continuing to explore its base metals and lithium prospects and is considering mechanisms to continue to add
shareholder value through various corporate strategies.
23
De Grey Mining Limited
Remuneration Report (Audited)
The remuneration report is set out under the following main headings:
A. Key Management Personnel
B. Remuneration policy
C. Service agreements
D. Details of Remuneration
E. Securities Based Compensation
F. Other Transactions and Balances with Key Management Personnel
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
A. Key management personnel
Names and positions held of the Company’s key management personnel (“Key Management Personnel”) in office at any time
during the financial year and up to the date of this annual report are:
Key Management Personnel
Mr Simon Lill
Position
Executive Chairman
Mr Andrew Beckwith
Technical Director & Operations Manager (appointed 26 October 2017)
Mr. Peter Hood
Mr. Eduard Eshuys
Non-executive Director (appointed 16 November 2018)
Non-executive Director (appointed 23 July 2019)
Mr. Jeffrey (Bruce) Parncutt
Non-executive Director (appointed 23 July 2019)
Mr Steven Morris
Mr Brett Lambert
Mr Craig Nelmes
Non-Executive Director (resigned 22 July 2019)
Non-Executive Director (resigned 22 July 2019)
Joint Company Secretary
Mr Patrick Holywell
Joint Company Secretary (appointed 2 July 2018)
Except as noted, the named persons held their current position for the whole of the financial year and/or at the date of this
report.
24
De Grey Mining Limited
B. Remuneration policy
The remuneration policy of De Grey Mining Limited has been designed by the board taking into consideration the stage of
development of the Group and the activities undertaken. Its objective is to align key management personnel objectives with
shareholder and business objectives by providing a fixed remuneration component or fee for service (where that is
applicable) and offering specific long-term incentives based on key performance areas affecting the Group’s financial results
or operational milestones. The board of De Grey Mining Limited believes the remuneration policy to be appropriate and
effective in its ability to attract and retain the best executives and directors to run and manage the Group.
From time to time when reviewing the remuneration, the Company may also source external advice to assist with salary
setting and determination of other benefits, including short term and long-term incentive plans.
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment
objectives and director and key management personnel performance. Currently, this is facilitated through the issue of
options and/or performance rights to the majority of key management personnel to encourage the alignment of personal
and shareholder interests. The company believes this policy will be effective in increasing shareholder wealth.
Fixed remuneration
Fixed remuneration consists of total Directors salaries ’ fees, salaries, bonus, consulting fees and employer contributions to
superannuation funds, excluding performance pay (cash, shares and options). Fixed remuneration levels are reviewed
annually by the board.
Executive remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework has the following components:
• Base salary (which is based on factors such as length of service, performance and experience) and (where applicable)
employer contributions to superannuation;
• Consulting fees for executives providing services under a services contract;
•
•
Short-term performance incentives taking into consideration executive and/or Company performance indicators that
the Company may set from time and other matters that it deems appropriate; and
Long-term incentives through participation in the Performance Rights (“PRP”) and/or Employee Option (“EOP”) Plans of
De Grey Mining Limited and as approved by the Board.
Non-executive Directors’ remuneration
The board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment
and responsibilities. The board determines payments to the non-executive directors and reviews their remuneration
annually, based on market practice, duties and accountability.
Fees for non-executive directors are not linked to the performance of the Group. However, to align Directors’ interests with
shareholder interests, these directors may receive short term performance incentives and longer-term performance
incentives via the EOP.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders
at the Annual General Meeting and is currently $250,000.
The annual remuneration for each non-executive director was set in the range of $36,000 - $48,000 per annum for the 2018-
2019 financial year. These fees have been determined by the Board of the Company, taking into consideration factors such
as the market rates of industry peer companies and the current level of activity. Where there is a significant change in the
size and scale of Company activities these annual fees will be reviewed. Where approved and at the request of the board,
any of the Non-Executive Directors may from time to time be required to fulfil certain executive functions.
25
De Grey Mining Limited
Use of remuneration consultants
The Board may (from time to time) engage the services of external consultants to advise on the remuneration policy and to
benchmark director and key management personnel remuneration against comparable entities so as to ensure that
remuneration packages are consistent with the market and are appropriate for the organisation. The Group did not employ
the services of any remuneration consultants during the financial year ended 30 June 2019.
Performance Rights (PRP) and Employee Option Plans (EOP) of De Grey Mining Limited
The PRP and EOP were last approved by Shareholders at the 2017 and 2018 Annual General Meetings respectively.
Directors and full and part time employees of De Grey Mining Limited are eligible to participate in each Plan. Any issue of
Rights or Options to Directors under either Plan will be subject to Shareholder approval pursuant to the provisions of the
ASX Listing Rules and the Corporations Act 2001. The Directors consider that collectively the PRP and EOP represent an
appropriate method to:
• Reward Directors, Key management personnel and employees for their past performance;
•
•
•
•
•
Provide long term incentives for participation in the Company’s future growth;
To motivate and retain Directors, KMP and senior employees;
Establish a sense of ownership in the Company for the Directors and employees;
Enhance the relationship between the Company and its employees for the long-term mutual benefit of all parties; and
Enable the Company to attract high calibre individuals who can bring specific expertise to the Company.
Voting on the Remuneration Report - 2018 Annual General Meeting
The Company received approximately 99.6% of “yes” votes on its remuneration report for the current financial year (2017:
99.4%).
C. Executive service agreements
Remuneration and other terms of employment for the executive directors and other KMP are formalised in employment or
service agreements. The major provisions of the agreements relating to remuneration for the year ended 30 June 2019 are
set out in the table below:
Name
Agreement
Simon Lill
Andrew Beckwith
Craig Nelmes
Patrick Holywell¹
Service
Employment
Service
Service
Base Salary
/Fees (p.a)
$156,000
$250,000
$169,698
-
Consulting/Hr
Duration
Notice Period
Termination
-
-
-
$140
Ongoing
Ongoing
Ongoing
Ongoing
3 months
3 months
3 months
1 month
6 months
6 months
6 months
1 month
26
De Grey Mining Limited
D. Details of Remuneration
Details of the remuneration of the directors, the key management personnel of the Group (as defined in AASB 124 Related
Party Disclosures) and specified executives of De Grey Mining Limited and the Group are set out in the following tables. The
key management personnel of the Group are the Directors of De Grey Mining Limited and the Company Secretaries.
Short-term
Post-
employment
Share based payments
Total
Salary or
Consulting Fees
Bonus
Superannuation
Options
Performance
rights
$
$
$
$
$
$
% of
remuneration
performance-
based
%
Directors
Simon Lill
2019
2018
Andrew
Beckwith3
2019
2018
Steven Morris
2019
2018
Brett Lambert3
2019
2018
Davide Bosio2
2019
2018
Peter Hood⁵
2019
Sub-
Directors
total
156,000
147,000
25,000⁶
-
-
-
42,600
-
118,627
62,401
342,227
209,401
223,933
212,216
25,000⁶
-
21,274
14,461
36,000
36,000
42,922
24,917
-
19,005
27,397
-
-
-
-
-
-
-
-
-
4,078
2,082
-
1,995
2,603
42,600
26,200
10,650
-
10,650
-
-
-
164,817
86,698
61,806
32,512
41,204
21,675
-
-
-
477,624
339,575
108,456
68,512
98,854
48,674
-
21,000
30,000
2019
2018
486,252
439,138
50,000
-
27,955
18,538
106,500
26,200
386,454
203,286
1,057,161
687,162
Key
Other
management
personnel
Craig Nelmes¹
2019
2018
169,698
28,059
Patrick
Holywell4
2019
60,690
key
Total
management
personnel
compensation
-
-
-
-
-
-
10,650
13,100
71,176
37,441
251,522
78,600
4,260
-
64,950
54%
30%
49%
33%
67%
47%
52%
45%
0%
0%
33%
64%
7%
2019
2018
716,640
467,197
50,000
27,955
18,538
121,410
39,300
457,630
240,727
1,373,633
765,762
¹Mr Nelmes service agreement entered into from 1 May 2018 (and representing 75% of his time).
²Mr Bosio resigned 26 October 2017.
3Mr. Beckwith and Mr. Lambert were appointed directors 26 October 2017.
4Mr Holywell provides fee for service and was appointed 2 July 2018.
⁵ Mr. Hood was appointed 16 November 2018.
⁶ On 30 August 2018, the board approved each discretionary bonus on the basis of past performance, as recommended on 26 July 2018 by the Remuneration
Committee.
27
De Grey Mining Limited
Share-holdings of Key Management Personnel
Opening Balance
Received on
Purchases (disposals)
Other changes
Closing Balance
1 July 2018
exercise of options
during the year
during the year
30 June 2019
No.
No.
No.
No.
No.
5,100,000
4,025,000
1,883,333⁵
2,066,668⁵
-
-
-
-
6,983,333
6,091,668
-
-
500,000
500,000
1,000,000
1,310,000
1,023,334⁵
-
-
1,812,111
1,784,611⁶
-
-
-
-
44,594
-
-
-
-
-
2,333,334
-
3,641,316
-
12,247,111
6,757,946
544,594
500,000
20,049,651
Directors
Simon Lill
Andrew
Beckwith¹
Peter
Hood4
Steven
Morris³
Brett
Lambert¹,³
Other
executives
Craig
Nelmes
Patrick
Holywell²
Total
1Mr Beckwith and Mr Lambert were appointed directors 26 October 2017.
2Mr Holywell was appointed 2 July 2018.
³Mr Morris and Mr. Lambert both resigned as directors on 22 July 2019, and subsequent to the reporting date.
4Mr Hood was appointed 16 November 2018.
⁵ Options all with an exercise price of $0.10cents each.
⁶ 634,611 options with an exercise price of $0.04 each and 1,150,000 with an exercise price of $0.10.
Option-holdings of Key Management Personnel
Opening Balance
1 July 2018
Options acquired as
compensation
Purchases (disposals)
during the year
Exercised/other
changes during the
year
Closing Balance
30 June 2019
No.
No.
No.
No.
No.
Directors
Simon Lill
Andrew
Beckwith¹
Peter Hood4
Steven
Morris³
Brett
Lambert¹,³
Other
executives
Craig
Nelmes
Patrick
Holywell²
Total
1,883,333
3,066,668
-
1,350,000
-
1,000,000
1,000,000
-
250,000
250,000
2,284,611
250,000
-
8,584,612
100,000
2,850,000
-
-
-
(1,883,333)
(2,066,668)
-
(326,666)
(1,023,334)
-
-
-
-
-
(326,666)
(6,757,946)
1,000,000
2,000,000
-
250,000
250,000
100,000
4,350,000
(1,784,611)
750,000
1Mr Beckwith and Mr Lambert were appointed directors 26 October 2017.
2Mr Holywell was appointed 2 July 2018.
³Mr Morris and Mr. Lambert both resigned as directors on 22 July 2019, and subsequent to the reporting date.
4Mr Hood was appointed 16 November 2018.
28
De Grey Mining Limited
Performance rights of Key Management Personnel
Opening
Balance
1 July 2018
No.
1,500,000
2,000,000
-
750,000
500,000
900,000
-
5,650,000
Rights acquired
as
compensation
Purchases
(disposals)
Other changes
Closing Balance
during the year
during the year
30 June 2019
No.
No.
No.
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
2,000,000
-
750,000
500,000
900,000
-
5,650,000
Directors
Simon Lill
Andrew Beckwith1
Peter Hood4
Steven Morris3
Brett Lambert1,3
Other executives
Craig Nelmes
Patrick Holywell²
Total
1Mr Beckwith and Mr Lambert were appointed directors 26 October 2017.
2Mr Holywell was appointed 2 July 2018.
³Mr Morris and Mr. Lambert both resigned as directors on 22 July 2019, and subsequent to the reporting date.
4Mr Hood was appointed 16 November 2018.
E. Securities based compensation - options
The Company granted 2,850,000 (2018: 2,250,000) options over unissued ordinary shares during the financial year to
Directors and other executives as part of their remuneration, as detailed in the table below:
Grant
Date
Expiry
Date
Exercise
Price
(cents)
Value per
option at
grant date
(cents)
Granted
Number
Exercised
Number
Vesting Date
Number
Vested at
end of
year
2019
Simon Lill
Andrew
Beckwith
17 Oct 2018
31 May 2021
30.0
17 Oct 2018
31 May 2021
30.0
Steve Morris
17 Oct 2018
31 May 2021
Brett Lambert
17 Oct 2018
31 May 2021
Craig Nelmes
17 Oct 2018
31 May 2021
Craig Nelmes
17 Oct 2018
31 May 2021
30.0
30.0
30.0
30.0
2018
Andrew
Beckwith
24 Sep 2017
31 Oct 2020
10.0
Craig Nelmes
24 Sep 2017
31 Oct 2020
10.0
4.26
4.26
4.26
4.26
4.26
4.26
2.62
2.62
1,000,000
1,000,000
250,000
250,000
250,000
100,000
1,000,000
500,000
-
-
-
-
-
-
-
-
17 Oct 2018 1,000,000
17 Oct 2018 1,000,000
17 Oct 2018
250,000
17 Oct 2018
250,000
17 Oct 2018
250,000
17 Oct 2018
100,000
24 Sep 2017 1,000,000
24 Sep 2017
500,000
There are no performance related conditions attached to any of these issued options.
29
De Grey Mining Limited
F. Securities based compensation – performance rights
There were no performance rights granted to directors and key management personnel as part of compensation during the
year ended 30 June 2019. A total of 6,700,000 were granted in the prior year ended 30 June 2018 and are set out below:
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
No.
No.
No.
No.
No.
Total
No.
2019
Nil
2018
Simon Lill
Andrew Beckwith
Steve Morris
Brett Lambert
Craig Nelmes
200,000
200,000
500,000
500,000
100,000
400,000
400,000
400,000
400,000
400,000
150,000
150,000
150,000
150,000
150,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
300,000
300,000
100,000
1,500,000
2,000,000
750,000
500,000
900,000
The amortised values of rights (issued in the prior year) over ordinary shares granted, exercised and lapsed for directors as
part of compensation during the year ended 30 June 2019 are set out below:
Simon Lill
Andrew Beckwith
Steve Morris
Brett Lambert
Craig Nelmes
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Total
$
17,479
34,958
13,109
8,739
8,739
$
17,479
34,958
13,109
8,739
8,739
$
53,399
42,719
16,020
10,680
32,040
$
21,530
17,224
6,459
4,306
12,918
$
8,739
34,958
13,109
8,739
8,739
$
118,626
164,817
61,806
41,203
71,176
457,628
The Performance Rights shall vest upon satisfaction of the following milestones:
1. Tranche One – the Company declaring greater than 1,500,000 ounce gold resource (JORC 2012) at an overall grade of at
least 1.7 g/t and a minimum category of JORC inferred at the Pilbara Gold Project, on or before 30 November 2019;
2. Tranche Two – the Company declaring greater than 2,000,000 ounce gold resource (JORC 2012) at an overall grade of at
least 1.7 g/t and a minimum category of JORC inferred at the Pilbara Gold Project, or before 30 November 2019;
3. Tranche Three – settlement of the Company’s 100% acquisition of Indee Gold Pty Ltd;
4. Tranche Four – The Company securing Project Financing for the Pilbara Gold Project at a minimum throughput of 1M
tpa; and
5. Tranche Five – The Company confirming higher grade resources of at least 200,000 ounces and at an overall grade of
greater than 5 g/t or before 30 November 2019.
¹ The vesting conditions for Tranches 1, 3 and 5 of the Performance Rights were met subsequent to the reporting date. Each
of the tranches were exercised by the holders and shares allotted on 22 August 2019.
G. Other transactions and balances with Key Management Personnel
There were no other transactions and balances with key management personnel.
----------- End of Audited Remuneration Report -----------
30
Directors’ and Committee Meetings
The number of meetings of the Company’s Board of Directors and its committee’s held in the 12 months to 30 June 2019
and the number of meetings attended by each Director are as per the following table:
De Grey Mining Limited
Directors Meetings
Eligible
Attended
Remuneration Committee¹
Eligible
Attended
Simon Lill
Andrew Beckwith
Steven Morris¹²
Brett Lambert¹²
Peter Hood²
Eduard Eshuys²
Jeffrey (Bruce) Parncutt²
8
8
8
8
4
-
-
8
8
8
8
4
-
-
-
-
1
1
-
-
-
-
-
1
1
-
-
-
¹ The Remuneration Committee was formed as approved by the full board on 26 July 2018 and consisted of Mr. Lambert (Chairman of the
Committee) and Mr. Morris.
²On 22 July 2019, both Mr Lambert and Mr. Morris resigned. On 29 August 2019, the full board of Company has appointed Mr. Peter Hood
and the two new incoming directors Mr Eshuys and Mr. Parncutt to the Remuneration Committee, with Mr. Eshuys as its Chairman.
Share Options and Performance rights
At the date of this report there are 77,333,333 unissued ordinary shares in respect of which options are outstanding and
2,750,000 performance rights outstanding.
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Performance rights Tranche 2
Performance rights Tranche 4
Number
14,250,000
33,333,333
12,500,000
17,250,000
1,300,000
1,450,000
Exercise Price
10 cents
20 cents
25 cents
30 cents
N/A
N/A
Expiry Date
31 October 2020
30 November 2019
30 November 2019
30 May 2021
30 November 2019
30 November 2021
During the financial year 29,750,000 options were issued, 62,711,811 options were exercised and no performance rights
either issued or exercised. Since the end of the financial year no options have been issued or exercised, with 3,950,000
performance rights exercised and no further issued.
No person entitled to exercise options and/or performance rights had or has any right by virtue of the option to participate
in any share issue of the company or a right to vote at a shareholder meeting.
Environmental Regulation
The Group is subject to environmental regulation in respect to its exploration activities. The Group aims to ensure the
appropriate standard of environmental care is achieved, and in doing so, that it is aware of and is in compliance with all
environmental legislation. The directors of the Group are not aware of any breach of environmental legislation for the year
under review.
Risk Management
The board is responsible for ensuring that risks, and also opportunities, are identified on a timely basis and that activities are
aligned with the risks and opportunities identified by the board. Given the size and scale of its current operations, the board
and key management personnel as a group periodically assess risks and develop strategies to mitigate the impact of any
perceived risks. The board endeavours to identify potential risks when carrying out strategy planning and budgeting tasks
and assessment and monitoring through its board meetings.
31
De Grey Mining Limited
Insurance of Directors and Officers
During the financial year, De Grey Mining Limited paid a premium to insure the directors and secretary of the Company. The
total amount of insurance contract premiums paid is confidential under the terms of the insurance policy.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought
against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by
the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a
wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage
for themselves or someone else or to cause detriment to the company. It is not possible to apportion the premium between
amounts relating to the insurance against legal costs and those relating to other liabilities.
Non-Audit Services
The following non-audit services were provided by the Group’s auditor, Butler Settineri (Audit) Pty Ltd, or associated entities
(refer note 20). The directors are satisfied that the provision of non-audit services is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-
audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
• All non-audit services have been reviewed by the board to ensure they do not impact the impartiality and objectivity of
the auditor; and
• None of the services undermine the general standard of independence for auditors.
Butler Settineri received or are due to receive the following amounts for the provision of non-audit services:
Tax compliance services
Proceedings on behalf of the company
2019
$
2,800
2018
$
2,200
As at the date of this report there are no leave applications or proceedings booked on behalf of De Grey Mining Limited
under section 237 of the Corporations Act 2001.
Auditor’s Independence Declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on
page 33.
Signed in accordance with a resolution of the directors
Simon Lill
Executive Chairman
Perth, 25 September 2019
32
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of De Grey Mining Limited for the year ended 30
June 2019, I declare that, to the best of my knowledge and belief, there have
been:
a) No contraventions of the auditor independence requirements of the
Corporations Act 2001 in relation to the audit; and
b) No contraventions of any applicable code of professional conduct in relation
to the audit.
The declaration is in respect of De Grey Mining Limited and the entities it controlled
during the year.
BUTLER SETTINERI (AUDIT) PTY LTD
LUCY P GARDNER
Director
Perth
Date: 25 September 2019
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2019
Notes
Consolidated
De Grey Mining Limited
REVENUE & OTHER INCOME
4
1,253,929
2019
$
EXPENDITURE
Depreciation expense
Director & employee expenses
Share based payments (directors & employees)
Corporate and compliance expenses
Consulting expenses
Corporate advisory
Share based payments – corporate advisory
Investor relations & promotional expenses
Occupancy expenses
Administration and other expenses
LOSS BEFORE INCOME TAX
INCOME TAX BENEFIT / (EXPENSE)
LOSS FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Other comprehensive income for the year, net of tax
5/28
5
6
2018
$
184,311
(40,663)
(480,303)
(347,947)
(346,560)
(204,463)
(203,375)
(314,880)
(557,269)
(37,500)
(128,302)
(182,117)
(1,068,499)
(751,744)
(315,451)
(48,667)
(133,501)
-
(516,929)
(105,735)
(140,416)
(2,009,130)
(2,476,951)
-
-
(2,009,130)
(2,476,951)
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO EQUITY
HOLDERS OF DE GREY MINING LIMITED
(2,009,130)
(2,476,951)
Basic and diluted loss per share for loss attributable to the ordinary equity
holders of the company (cents per share)
27
(0.50)
(0.85)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the Notes to the
Consolidated Financial Statements.
34
Consolidated Statement of Financial Position
AT 30 JUNE 2019
Notes
Consolidated
De Grey Mining Limited
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial assets
Deferred exploration & evaluation expenditure
Plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefit obligations
Contract liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Contract liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
2019
$
1,335,398
735,031
10,993
29,177
2,110,599
115,103
30,675,391
729,089
31,519,583
2018
$
1,147,538
245,075
19,894
42,962
1,455,469
200,000
21,982,686
691,087
22,873,773
33,630,182
24,329,242
1,287,046
29,429
12,700,000
14,016,475
1,322,874
9,868
700,000
2,032,742
-
-
12,700,000
12,700,000
14,016,475
14,732,742
19,613,707
9,596,500
70,787,718
1,414,570
(52,588,581)
19,613,707
59,464,845
711,106
(50,579,451)
9,596,500
7
8
9
10
11
12
13
14
15
16
16
17
18
18
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Consolidated
Financial Statements.
35
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2019
Consolidated
Notes
Contributed
Equity
$
Reserves
$
Accumulated
Losses
$
Total
$
De Grey Mining Limited
BALANCE AT 30 JUNE 2017
Loss for the year
OTHER COMPREHENSIVE INCOME
18(b)
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share application monies (non-refundable)
Share issue costs
Share based payments - options
18(a)
Share based payments – performance rights 18(a)
Transfer of reserve on expiry of options
18(a)
17(b)
17(b)
17(b)
BALANCE AT 30 JUNE 2018
Loss for the year
OTHER COMPREHENSIVE INCOME
18(b)
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share issue costs
Share based payments - options
18(a)
Share based payments – performance rights 18(a)
Transfer of reserve on expiry of options
18(a)
17(b)
17(b)
49,108,104
170,530
(48,102,500)
1,176,134
-
-
-
-
-
-
(2,476,951)
(2,476,951)
-
(2,476,951)
-
(2,476,951)
10,110,003
250,000
(158,887)
-
-
155,625
-
-
-
407,205
288,996
(155,625)
-
-
-
-
-
-
10,110,003
250,000
(158,887)
407,205
288,996
-
59,464,845
711,106
(50,579,451)
9,596,500
-
-
-
-
-
-
(2,009,130)
(2,009,130)
-
(2,009,130)
-
(2,009,130)
11,453,068
(178,475)
-
-
48,280
-
-
202,350
549,394
(48,280)
-
-
-
-
-
11,453,068
(178,475)
202,350
549,394
-
BALANCE AT 30 JUNE 2019
70,787,718
1,414,570
(52,588,581)
19,613,707
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Consolidated
Financial Statements.
36
Consolidated Statement of Cash Flows
De Grey Mining Limited
Notes
Consolidated
2019
$
2018
$
FOR THE YEAR ENDED 30 JUNE 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Option fee received – lag gravel rights
Exploration data sale received
Royalties received
EIS Grant received
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation expenditure
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
26
CASH FLOWS FROM INVESTING ACTIVITIES
Option payments to acquire tenements
Payments to acquire – Indee Gold Pty Ltd
Proceeds/(payments) - available for sale financial assets
Payments for plant and equipment
NET CASH INFLOW / (OUTFLOW) FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of ordinary shares
Proceeds from application for issue of ordinary shares (non-refundable)
Payments of share issue transaction costs
Transaction costs related to loans & borrowings
NET CASH INFLOW FROM FINANCING ACTIVITIES
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the financial year
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
7
700,000
150,000
20,335
7,320
(2,049,252)
23,265
(8,263,267)
(9,411,599)
(10,000)
(700,000)
94,000
(291,212)
(907,212)
10,836,105
-
(178,475)
(150,959)
10,506,671
187,860
1,147,538
1,335,398
-
-
11,316
53,680
(2,019,783)
22,596
(5,153,578)
(7,085,770)
(195,000)
(1,500,000)
(200,000)
(593,224)
(2,488,224)
9,623,390
250,000
(158,887)
-
9,714,503
140,509
1,007,029
1,147,538
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Consolidated Financial
Statements.
37
De Grey Mining Limited
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 June 2019
1. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the
consolidated entity consisting of De Grey Mining Limited and its subsidiaries. The financial statements are presented in
Australian dollars. De Grey Mining Limited is a company limited by shares, domiciled and incorporated in Australia. The
financial statements were authorised for issue by the directors on 25 September 2019. The directors have the power to
amend and reissue the financial statements.
A. Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. De Grey Mining Limited
is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
The consolidated financial statements of the De Grey Mining Limited Group also comply with international Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) New, revised or amending Accounting Standards and Interpretations adopted in the 2019 financial year
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. The adoption of these Accounting
Standards and Interpretations did not have any significant impact on the financial performance or position of the Group
during the financial year.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to
the Group include:
• AASB 9 Financial Instruments and related amending Standards;
• AASB 15 Revenue from Contracts with Customers and related amending Standards; and
• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share based
Payment Transactions.
AASB 9 Financial Instruments and associated Amending Standards
In the current year, the Group has applied AASB 9 Financial Instruments (as amended) and the related consequential
amendments to other Accounting Standards that are effective for an annual period that begins on or after 1 January 2018.
The transition provisions of AASB 9 allow an entity not to restate comparatives however there was no material impact on
adoption of the standard. Additionally, the Group adopted consequential amendments to AASB 7 Financial Instruments:
Disclosures.
In summary AASB 9 introduced new requirements for:
•
•
• General hedge accounting.
The classification and measurement of financial assets and financial liabilities;
Impairment of financial assets; and
AASB 15 Revenue from Contracts with Customers and related amending Standards
In the current year, the Group has applied AASB 15 Revenue from Contracts with Customers (as amended) which is effective
for an annual period that begins on or after 1 January 2018. The new standard is based on the principle that revenue is
recognised when control of a good or service transfers to a customer – so the notion of control replaces the prior notion of
risks and rewards. There was no material impact on adoption of the standard and no adjustment made to current or prior
period amounts.
38
De Grey Mining Limited
(iii) New Accounting Standards and Interpretations for application in future periods
Any new, revised or amending Accounting Standards or Interpretations issued by the AASB that are not yet mandatory have
not been early adopted. These together with an assessment of the potential impact of such pronouncements on the Group
when adopted in future periods, are discussed below:
AASB 16: Leases
This Standard is applicable to annual reporting periods beginning on or after 1 January 2019. When effective, this Standard
will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations.
AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as
operating or finance leases.
The main changes introduced by the new Standard are as follows:
•
•
•
•
•
recognition of a right-of-use asset and lease liability for all leases (excluding short-term leases with a lease term 12
months or less of tenure and leases relating to low-value assets)
depreciation of right-of-use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and
unwinding of the liability in principal and interest components;
inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability
using the index or rate at the commencement date;
application of a practical expedient to permit a lessee to elect not to separate non-lease components and instead
account for all components as a lease; and
inclusion of additional disclosure requirements.
The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with
AASB 108 or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of
initial application.
The Group has completed a preliminary assessment as to the impact of AASB 16 and does not expect that it will have a
material effect on the Group. The standard will affect primarily the accounting for the group’s operating leases. As at the
reporting date, the group has non-cancellable operating lease office rental commitments of $201,448, see note 22. The
group has assessed that these lease commitments will likely become finance leases under the new standard, and hence an
asset and corresponding financial liability of $187,287 will be recognised upon adopting the new standard.
(iv) Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the change in fair value
of equity investments at fair value through profit or loss.
B. Principles of consolidation
(i)
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of De Grey Mining Limited
(“company” or “parent entity”) as at 30 June 2019 and the results of all subsidiaries for the year then ended. De Grey Mining
Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are entities the parent controls. The parent controls an entity when it 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 over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated 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 the impairment of the asset transferred.
39
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by
the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of
comprehensive income, statement of changes in equity and statement of financial position respectively.
Investments in subsidiaries are accounted for at cost in the separate financial statements of De Grey Mining Limited.
De Grey Mining Limited
(ii)
Joint ventures
Jointly controlled assets - the proportionate interests in the assets, liabilities and expenses of joint venture activities have
been incorporated in the financial statements under the appropriate headings. Details of the joint ventures are set out in
note 25.
(iii)
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the
controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the
amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate
reserve within equity attributable to owners of De Grey Mining Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is remeasured
to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount
for the purposes of subsequently accounting for the retained interest as an associate, jointly controlled entity or financial
asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted
for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised
in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or associate is reduced but joint control or significant influence is
retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified
to profit or loss where appropriate.
C. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the full Board of Directors.
D. Foreign currency translation
(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 De Grey Mining Limited's functional and presentation currency.
(ii)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
40
(iii)
Group companies
De Grey Mining Limited
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
•
assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of
that statement of financial position;
income and expenses for each statement of comprehensive income are translated at average exchange rates (unless
that is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which
case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive income.
•
•
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of
borrowings and other financial instruments designated as hedges of such investments, are recognised in other
comprehensive income.
When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange
differences are reclassified to profit or loss, as part of the gain or loss on sale.
E. Revenue recognition
Revenue from contract(s) with customers
Revenue is recognised at an amount that reflects the consideration to which the group 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 with the transaction price, if any, reflects concessions provided to the customers 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 the variable
consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly
probably 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.
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.
F. Cash and cash equivalents
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, 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 insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
41
De Grey Mining Limited
G. Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company’s subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the
tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred income
tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the
reporting date and are expected to apply when the related deferred income tax asset is realised, or the deferred income
tax liability is settled.
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.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases
of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset
where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously.
De Grey Mining Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation
legislation. As a consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these
entities are set off in the consolidated financial statements.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
H. Financial instruments
Classification of financial instruments
The Group classifies its financial assets into the following measurement categories:
•
•
those to be measured at fair value (either through other comprehensive income, or through profit or loss); and
those to be measured at amortised cost.
The classification depends on the Group’s business model for managing financial assets and the contractual terms of the
financial assets' cash flows.
The Group classifies its financial liabilities at amortised cost unless it has designated liabilities at fair value through profit or
loss or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.
42
De Grey Mining Limited
Debt instruments
Investments in debt instruments are measured at amortised cost where they have:
•
contractual terms that give rise to cash flows on specified dates, that represent solely payments of principal and
interest on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
•
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently
measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model
described below regarding impairment of financial assets.
Financial instruments designated as measured at fair value through profit or loss
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with transaction costs
recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are
recognised in the income statement as they arise.
Where a financial asset is measured at fair value, a credit valuation adjustment is included to reflect the credit worthiness
of the counterparty, representing the movement in fair value attributable to changes in credit risk.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly reduces an accounting
mismatch or:
•
•
if a host contract contains one or more embedded derivatives; or
if financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance
with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value attributable to
changes in the Group’s own credit quality is calculated by determining the changes in credit spreads above observable
market interest rates and is presented separately in other comprehensive income.
Impairment of financial assets
The 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 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.
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.
Recognition and derecognition of financial instruments
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the contractual
provisions of the instrument, which is generally on trade date. Loans and receivables are recognised when cash is advanced
(or settled) to the borrowers.
Financial assets at fair value through profit or loss are recognised initially at fair value. All other financial assets are
recognised initially at fair value plus directly attributable transaction costs.
The Group derecognises a financial asset when the contractual cash flows from the asset expire or it transfers its rights to
receive contractual cash flows from the financial asset in a transaction in which substantially all the risks and rewards of
ownership are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised
as a separate asset or liability.
43
A financial liability is derecognised from the balance sheet when the Group has discharged its obligations, or the contract
is cancelled or expires.
Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the Group has a legal
right to offset the amounts and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.
De Grey Mining Limited
I. Plant and equipment
Each class of Plant, equipment and motor vehicles is carried at historical cost or fair value as indicated less, where
applicable, any accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to
the asset.
The carrying amounts are reviewed annually by Directors to ensure it is not in excess of the estimated recoverable amount
from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received
from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present
values in determining recoverable amounts and an asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Depreciation of plant and equipment is calculated using the reducing balance method to allocate their cost or revalued
amounts, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain
leased plant and equipment, the shorter lease term. The rates vary between 20% and 40% per annum.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
J. Exploration and evaluation costs
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and
evaluation asset in the year in which the expenditure is incurred where;
•
•
The Group has secured (or has the legal right to) tenure, and/or the legal rights to explore an area of interest;
Exploration and evaluation activities in the area of interest have not at the end of the reporting period reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active
and significant operations in, or in relation to, the area of interest are continuing; and
The exploration and evaluation expenditures are expected to be recouped through successful development and
exploitation of the area of interest, or alternatively, by its sale.
•
Where the conditions outlined are not met in relation to specific area(s) of interest, then those exploration and evaluation
costs are expensed as incurred.
K. Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which
are unpaid. The amounts are unsecured and are paid on normal commercial terms.
L. Employee benefits
Wages and salaries, annual leave and long service leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are
settled. The liability for annual leave and long service leave is recognised in the provision for employee benefits. All other
short-term employee benefit obligations are presented as payables.
44
De Grey Mining Limited
M. Leases
Lease payments for operating leases (where substantially all the risks and benefits remain with the lessor) are charged
as an expense in the periods in which they are incurred.
Lease incentives under operating leases, if any, are recognised as a liability and amortised on a straight-line basis over
the life of the lease term.
N. Share-based payments
The Group provides benefits to employees (including directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled
transactions’), refer to note 28.
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which
they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled
to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the
extent to which the vesting period has expired and (ii) the number of options that, in the opinion of the directors of the
Group, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment
is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a
market condition.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not
yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award
and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they
were a modification of the original award.
Options over ordinary shares have also been issued as consideration for the acquisition of interests in tenements and other
services. These options have been treated in the same manner as employee options described above, with the expense
being included as part of exploration expenditure.
O. 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.
P. Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the company, 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.
(ii) 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.
45
De Grey Mining Limited
Q. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
R. Significant accounting judgements estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various factors,
including expectations of future events, management believes to be reasonable under the circumstances.
Exploration expenditure
Exploration and evaluation costs are assessed on the basis of whether or not it is appropriate to carry as a Deferred
exploration asset – refer to (j) above.
Financial assets – measurement and impairment assessment
The Company is required to classify those all assets and liabilities, measured at fair value, using a three-level hierarchy,
based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly; and
Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant
to fair value and therefore which category the asset or liability is placed in can be subjective. The fair value of assets and
liabilities classified as level 3 (if any) is determined by the use of valuation models. These include discounted cash flow
analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.
The group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group
of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of consideration of all available information with respect to the
asset. In the case of non-listed equity investments classified as available-for-sale, the Company takes into consideration its
underlying assets and liabilities, its most recent funding and any other pertinent information to support its carrying value
and/or indicators of asset impairment.
46
De Grey Mining Limited
2. Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price
risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group.
Risk management is carried out by the full Board of Directors as the Group believes that it is crucial for all Board members
to be involved in this process. The Board, with the assistance of senior management as required, has responsibility for
identifying, assessing, treating and monitoring risks and reporting to the Board on risk management.
A. Market risk
Foreign exchange risk
The Group has minimal operations internationally and there are currently limited exposures to foreign exchange risk arising
from currency exposures.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a
currency that is not the entity’s functional currency and net investments in foreign operations. The Group has not
formalised a foreign currency risk management policy, however it monitors its foreign currency expenditure in light of
exchange rate movements.
All parent entity and Australian subsidiary entity balances are in Australian dollars and all Group balances are in Australian
dollars, so the Group has only minimal exposure to foreign currency risk at the reporting date.
Price risk
Given the current level of operations, the Group is not exposed to price risk.
Interest rate risk
The Group is exposed to movements in market interest rates on cash and cash equivalents. The Group policy is to monitor
the interest rate yield curve out to six months to ensure a balance is maintained between the liquidity of cash assets and
the interest rate return. The balance of cash and cash equivalents for the Group of $1,335,398 (2018: $1,147,538) is subject
to interest rate risk. The proportional mix of floating interest rates and fixed rates to a maximum of six months fluctuate
during the year depending on current working capital requirements. The weighted average interest rate received on cash
and cash equivalents by the Group was 0.54% (2018: 0.70%).
Sensitivity analysis
At 30 June 2019, if interest rates had changed by -/+ 100 basis points from the weighted average rate for the year with all
other variables held constant, post-tax loss for the Group would have been $36,615 lower/higher (2018: $32,481
lower/higher) as a result of lower/higher interest income from cash and cash equivalents.
B. Credit risk
Credit risk arises from cash and cash equivalents (including deposits with banks and financial institutions), as well as credit
exposures customers via any outstanding receivables. Credit risk is managed on a group basis. For banks and financial
institutions, only independently rated parties with a minimum rating of ‘A’ are accepted.
When undertaking transactions with customers, the Company will enter into legally binding arrangements and ensures that
such agreements seek to mitigate risk by undertaking a credit quality assessment of the customer that takes into account
its financial position, past experience, length of time has been a customer and other factors.
47
Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. Indicators that
there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment
plan with the group, and a failure to make contractual payments for a period of greater than 120 days past due. Impairment
losses on trade receivables and contract assets are presented as net impairment losses within operating profit. Subsequent
recoveries of amounts previously written off are credited against the same line item.
De Grey Mining Limited
The assessment of impairment losses for the current financial year is Nil (2018: Nil).
C. Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash
and marketable securities are available to meet the current and future commitments of the Group. Due to the nature of
the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary
source of funding being equity raisings. The Board of Directors constantly monitor the state of equity markets in conjunction
with the Group’s current and future funding requirements, with a view to initiating appropriate capital raisings as required.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the Statement of financial
position. All trade and other payables are non-interest bearing and due within 12 months of the reporting date.
D. Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. All financial assets and financial liabilities of the Group at the balance date are recorded at amounts
approximating their carrying amount. The fair value of financial instruments traded in active markets is based on quoted
market prices at the reporting date. The quoted market price used for financial assets held by the Group is the current bid
price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values
due to their short-term nature.
48
De Grey Mining Limited
3. Segment Information
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used
to make strategic decisions. For management purposes, the Group has identified one reportable operating segment being
exploration activities undertaken in one geographical segment being Australasia. These segments include the activities
associated with the determination and assessment of the existence of commercial economic reserves, from the Group’s
mineral assets in the sole geographic location.
Segment performance is evaluated based on the operating profit and loss and cash flows and is measured in accordance with
the Group’s accounting policies.
Segment revenue
1,178,541
155,684
1,178,541
155,684
Minerals Exploration
Australasia
2019
$
2018
$
Consolidated Total
2019
$
2018
$
Reconciliation of segment revenue to total revenue
before tax:
Interest revenue
Change in fair value of equity investments at fair value
through profit or loss
Other revenue
Total revenue and other income
19,744
22,596
9,103
46,541
1,253,929
-
6,031
184,311
Segment results
1,178,541
155,684
1,178,541
155,684
Reconciliation of segment result to net loss before tax:
Corporate advisory
Share based payments
Other corporate and administration
Net loss before tax
(133,501)
(751,744)
(2,302,426)
(2,009,130)
(203,375)
(662,826)
(1,766,434)
(2,476,951)
Segment operating assets
32,160,880
24,329,242
32,160,880
22,645,049
Reconciliation of segment operating assets to total
assets:
Other corporate and administration assets
Total assets
1,469,302
1,684,194
33,630,182
24,329,243
Segment operating liabilties
13,491,175
14,473,198
13,491,175
14,473,198
Reconciliation of segment operating liabilities to total
liabilities:
Other corporate and administration liabilities
Total liabilities
525,300
259,545
14,016,475
14,732,743
49
4. Revenue and other income
Revenue - from continuing operations
Option fee – lag gravels (i)
Exploration data fee
Royalties- sands
Other Income
EIS Grant
Interest
Change in fair value of equity investments through profit or loss
Other
De Grey Mining Limited
Consolidated
2019
$
1,000,000
150,000
21,221
7,320
19,744
9,103
46,541
1,253,929
2018
$
-
-
11,605
53,680
22,596
-
96,430
184,311
(i) On 28 June 2019, the Company entered into a binding Letter of Intent with Novo Resources Corp that granted them the right to explore
De Grey’s project for gold-bearing lag gravel deposits for an initial three-year period (the “Initial Period”) by paying a non-refundable AUD
$1 million, and of which AUD $300,000 has been held in escrow until De Grey has completed its 100% acquisition of Indee Gold Pty Ltd
(this was subsequently completed 22 August 2019 – Refer to Notes 16 and 29). There are no other performance obligations with respect
to this initial three year option fee.
5. Expenses
Loss before income tax includes the following specific expenses:
Contributions to superannuation funds
Share based payments – options (Directors & under approved plan)
Share based payments – performance rights (Directors & under approved plan)
Share based payments – corporate advisory services
130,663
202,350
549,394
-
65,879
58,950
288,997
314,880
6. Income tax
(a) Income tax expense
Current tax
Deferred tax
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
Prima facie tax benefit at the Australian tax rate of 27.5% (2018: 27.5%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Capital raising fees
Other allowable expenditure
Sundry items
Tax effect of current year tax losses for which no deferred tax asset has been
recognised
Income tax expense
(c) Unrecognised deferred tax assets
Capital raising fees
Carry forward tax losses
Gross deferred tax assets
50
-
-
-
-
-
-
(2,009,130)
(2,476,951)
(552,511)
(681,161)
(46,354)
(2,474,823)
240,256
(2,833,431)
(38,988)
(1,678,129)
(18,634)
(2,416,912)
2,833,431
-
2,416,912
-
106,682
17,077,916
17,184,598
103,956
18,341,985
18,445,941
De Grey Mining Limited
No deferred tax asset has been recognised for the above balance as at 30 June 2019 and it is not considered probable that
future taxable profits will be available against which it can be utilised.
(d) Tax consolidation
Effective 1 July 2004, for the purposes of income taxation, De Grey Mining Limited and its 100% owned Australian subsidiaries
formed a tax consolidated group. Members of the group have entered into a tax sharing arrangement in order to allocate
income tax between the entities should the head entity default on its tax payment obligations. At the balance date, the
possibility of default is remote. The head entity of the tax consolidated group is De Grey Mining Limited.
The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate De
Grey Mining Limited for any current tax payable assumed and are compensated by De Grey Mining Limited for any current
tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to De Grey
Mining Limited under the tax consolidation legislation. The funding amounts are determined by reference to the amounts
recognised in the wholly-owned entities’ financial statements.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head
entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment
of interim funding amounts to assist with its obligations to pay tax instalments. The funding amounts are recognised as
current intercompany receivables or payables.
(e) Franking credits
The company has no franking credits available for use in future years.
7. Current assets – Cash and cash equivalents
Cash at bank & on hand (i)
Short-term & on-call deposits (ii)
Consolidated
2019
$
2018
$
838,960
496,438
1,335,398
116,128
1,031,410
1,147,538
(i) Cash at bank earns interest at floating rates based on daily bank deposit rates.
(ii) Short-term deposits are made for varying periods of between one day and three months depending on the immediate
cash requirements of the Group and earn interest at the respective short-term deposit rates.
8. Current assets – Trade and other receivables
Trade receivables
GST receivable (net)
R&D offset receivable
Fuel tax credits receivable
Sundry debtors (i)
359,562
34,140
306,651
34,143
535
735,031
3,759
184,310
-
56,279
727
245,075
(i) Sundry debtors are non-interest bearing and have repayment terms between 30 and 90 days.
9. Current assets - Inventories
Diesel fuel in stock
10,993
10,993
19,894
19,984
51
10. Current assets – Other assets
Prepayment rents
Prepayment – other
Advances & deposits
11. Financial assets
Financial assets at fair value through profit or loss
Current
Listed equity securities (i)
Unlisted equity securities (i)
De Grey Mining Limited
Consolidated
2019
$
-
27,380
1,797
29,177
2018
$
10,000
31,030
1,932
42,962
115,103
-
115,103
-
200,000
200,000
(i) On 18 September 2018, the Company announced that Novo Resources Corp. of Canada (“Novo”) had agreed to acquire
100% of unlisted minerals exploration entity Farno McMahon Pty Ltd. The Company accepted the Novo offer, which was
combination of cash ($94,000) and scrip.
12. Non-current assets – Deferred exploration & evaluation expenditure
Beginning of financial period
Exploration expenditure - all areas of interest (i)
Tenement option payments (non Indee Gold Pty Ltd)
Indee Gold Pty Ltd – acquisition consideration paid
Indee Gold Pty Ltd – acquisition consideration payable
Expensed to P&L
21,982,686
8,682,705
10,000
-
-
-
30,675,391
980,397
5,907,789
194,500
1,500,000
13,400,000
-
21,982,686
(i) The Group has capitalised all costs associated with The Pilbara Project.
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
13. Non-current assets – Plant and equipment
Plant and equipment
Cost
Accumulated depreciation
Net book amount
Plant and equipment
Opening net book amount
Additions
Depreciation charge
Closing net book amount
1,349,679
(620,590)
729,089
691,087
220,119
(182,117)
729,089
1,129,560
(438,473)
691,087
58,361
673,389
(40,663)
691,087
52
14. Current liabilities – Trade and other payables
Trade payables
Trade payables to be settled via an equity issue
Other payables and accruals (i)
De Grey Mining Limited
Consolidated
2019
$
907,792
247,178
132,076
1,287,046
2018
$
1,167,211
92,750
62,913
1,322,874
(i) Trade, other payables and accruals are non-interest bearing and are normally settled on terms of 30-45 days.
15. Current liabilities – Employee benefit obligations
Employee benefits (i)
29,429
9,868
(i) The current provision for employee benefits includes all unconditional entitlements where employees have completed
the required period of service. The entire amount is presented as current, since the consolidated entity does not have an
unconditional right to defer settlement and has an expectation that employees will take the full amount of accrued leave
or require payment within the next 12 months.
16. Current & non-current liabilities – Contract liabilities
Contract liabilities (i)
Consists of:
Current
Non-current
12,700,000
13,400,000
12,700,000
-
12,700,000
700,000
12,700,000
13,400,000
(i) On 12 February 2018, the Company executed a fully binding Share Sale Agreement (“SSA”) to acquire 100% of the issued
shares in the capital of Indee Gold Pty Ltd (“Indee Gold”) from Northwest Nonferrous Australia Mining Pty Ltd (“NNAM”).
During the financial year a part payment of $700,000 was paid to extend the settlement date to 24 July 2019, with
agreement to extend beyond this date, so as to enable the Company to finalise a significant capital raising. Settlement
has ultimately occurred, post balance date, on 22 August 2019 (refer to Note 29 – Subsequent Events).
53
17. Contributed equity
(a) Share capital
Ordinary shares fully paid
Total contributed equity
(b) Movements in ordinary share capital
Beginning of the financial year
Issued during the current & prior years:
Share issued in lieu of supplier invoices (non-cash)
Shares issued on exercise of options
Placement share issue
Shares issued on exercise of options
Shares issued on exercise of options
Shares issued on exercise of options
Shares issued - part consideration tenement acquisition
Placement share issue
Shares issued - part consideration tenement acquisition
Placement share issue
Share issued in lieu of supplier invoices (non-cash)
Transaction costs
Share based payments reserve transfer on option exercise
End of the financial year
(c) Movements in options on issue
Beginning of the financial year
Net issued / (exercised or cancelled) during the year:
− Exercisable at 4 cents, on or before 10 June 2019
− Exercisable at 8 cents, on or before 25 Nov 2017
− Exercisable at 10 cents, on or before 30 Nov 2018
− Exercisable at 10 cents, on or before 30 Nov 2018
− Exercisable at 5.8 cents, on or before 6 Sep 2017
− Exercisable at 10 cents, on or before 31 Oct 2020
− Exercisable at 20 cents, on or before 30 Nov 2019
− Exercisable at 25 cents, on or before 30 Nov 2019
− Exercisable at 30 cents, on or before 30 May 2021
End of the financial year
De Grey Mining Limited
2019
2018
Issue
Price
Number of shares
$
Number of
shares
$
427,590,370
70,787,718
334,468,800
59,464,845
427,590,370
70,787,718
334,468,800
59,464,845
334,468,800
59,464,846
201,296,240
49,108,104
-
123,384
-
-
-
5,962,720
4,750,000
616,963
(178,475)
48,280
70,787,718
7,595,324
20,850,000
60,450,000
5,000,000
2,125,000
3,068,903
150,000
33,333,333
600,000
-
-
-
-
334,468,800
332,113
834,000
3,022,500
290,000
170,000
306,890
22,500
5,000,000
132,000
250,000
-
(158,887)
155,625
59,464,845
Number of options
2019
2018
110,295,144
62,030,714
(3,084,611)
-
(53,527,200)
(6,100,000)
-
-
-
12,500,000
17,250,000
77,333,333
(20,850,000)
(2,125,000)
29,906,097
(1,250,000)
(5,000,000)
14,250,000
33,333,333
-
-
110,295,144
$0.04373
$0.058
$0.05
$0.04
-
3,084,611
-
-
-
$0.08
$0.10 59,627,200
$0.15
$0.15
$0.11405
$0.22
$0.20 25,000,000
5,409,759
-
-
427,590,370
Unlisted
Unlisted
Listed
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
54
(d) Movement in performance rights on issue
During the year there were no unlisted Performance Rights issued (2018: 6,700,000) to directors and employees of the
Group. The movement in performance rights consists of five (5) tranches each with specific performance hurdles.
Tranche 1¹
Tranche 2
Tranche 3¹
Tranche 4
Tranche 5¹
Total
De Grey Mining Limited
Opening balance – 1 July 2018
1,300,000
1,300,000
1,450,000
1,450,000
1,200,000
6,700,000
Performance rights issued for the year
-
-
-
-
-
-
Closing balance – 30 June 2019
1,300,000¹
1,300,000
1,450,000¹
1,450,000
1,200,000¹
6,700,000
The Performance Rights shall vest upon satisfaction of the following milestones:
1. Tranche One – the Company declaring greater than 1,500,000 ounce gold resource (JORC 2012) at an overall grade of at
least 1.7 g/t and a minimum category of JORC inferred at the Pilbara Gold Project, on or before 30 November 2019;
2. Tranche Two – the Company declaring greater than 2,000,000 ounce gold resource (JORC 2012) at an overall grade of at
least 1.7 g/t and a minimum category of JORC inferred at the Pilbara Gold Project, or before 30 November 2019;
3. Tranche Three – settlement of the Company’s 100% acquisition of Indee Gold Pty Ltd;
4. Tranche Four – The Company securing Project Financing for the Pilbara Gold Project at a minimum throughput of 1M
tpa; and
5. Tranche Five – The Company confirming higher grade resources of at least 200,000 ounces and at an overall grade of
greater than 5 g/t or before 30 November 2019.
¹ The vesting conditions for Tranches 1, 3 and 5 of the Performance Rights were met subsequent to the reporting date. Each
of the tranches were exercised by the holders and shares allotted on 22 August 2019.
(e) Ordinary shares
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. On a show of hands every holder of ordinary shares present at a
meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Ordinary shares
have no par value and the Company does not have a limited amount of authorised capital. Neither the Company, nor any of
its subsidiaries, holds any shares in the Company at 30 June 2019 (2018: Nil).
(f) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they
may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk
management is the current working capital position against the requirements of the Group to meet exploration
programmes and corporate overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet
anticipated operating requirements, with a view to initiating appropriate capital raisings as required. The working capital
position of the Group at 30 June 2019 and 30 June 2018 are as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables (i)
Working capital position
Consolidated
2019
$
1,335,398
735,031
(1,039,868)
1,030,561
2018
$
1,147,538
245,075
(1,230,124)
162,489
(i) This is net of payables totalling $247,178 (2018: $92,750) settled/or to be settled by an equity issue of ordinary fully paid shares.
55
18. Reserves and accumulated losses
(a) Reserves
Share-based payments reserve (i)
Movements:
Share-based payments reserve
Balance at beginning of year
Share based payments (options) expense (Directors & EOP plan)
Share based payments (options) expense (Corporate advisory)
Share based payments (performance rights) expense (Directors & PR plan)
Transfer to Issued Capital on exercise/expiry of options
Balance at end of year
(b) Accumulated losses
Balance at beginning of year
Net loss for the year
Balance at end of year
(c) Nature and purpose of reserves
De Grey Mining Limited
Consolidated
2019
$
1,414,570
1,414,570
711,106
202,350
-
549,394
(48,280)
1,414,570
2018
$
711,106
711,106
170,530
58,950
348,255
288,996
(155,625)
711,106
(50,579,451)
(2,009,130)
(52,588,581)
(48,102,500)
(2,476,951)
(50,579,451)
(i) Share-based payments reserve - The share-based payments reserve is used to recognise the value of equity benefits provided to either
employees or directors as remuneration or to suppliers as payment for products and services.
19. Dividends
-
-
No dividends were paid during the financial year.
No recommendation for payment of dividends has been made.
20.
Remuneration of auditors
During the year the following fees were paid or payable for services
provided by the auditor of the parent entity, its related practices and non-
related audit firms:
(a) Audit services
Butler Settineri (Audit) Pty Ltd - audit and review of financial reports
Total remuneration for audit services
(b) Non-audit services
Butler Settineri – tax compliance services
Total remuneration for other services
33,777
33,777
2,800
2,800
42,737
42,737
2,200
2,200
56
21. Contingent liabilities
There are no contingent liabilities or contingent assets of the Group at reporting date.
22. Commitments
(a) Exploration commitments
The Group has certain commitments to meet minimum expenditure
requirements on the mineral exploration assets it has an interest in.
Outstanding Pilbara Project exploration commitments are as follows:
Turner River tenements (100% owned) (i)
Indee Gold Pty Ltd (“Indee Gold”) tenements (100% owned) (ii)
Haoma tenement (100% owned) (iii)
Tenements under option agreements (iv)
Annual commitment for the Pilbara Project assets
De Grey Mining Limited
Consolidated
2019
$
2018
$
731,160
617,600
126,000
197,160
1,671,920
756,240
590,100
70,000
147,280
1,563,620
(i) The Turner River Project tenements are owned 100% and have minimum aggregate expenditure requirements of
$731,160 p.a. (2018: $756,240).
(ii) On 22 August 2019 and subsequent to the reporting date, the Indee Gold tenements became 100% owned when
settlement of the acquisition of Indee Gold Pty Ltd was completed (refer in Note 29 – Subsequent events).
(iii) On 12 July 2018, the Haoma tenement became 100% owned on exercise of an option to acquire.
(iv) The tenements that remain under option and/or earn-in agreements are with respect to the Blue Moon, Farno
McMahon and Vanmaris Projects, as detailed in Note 25.
(b) Capital commitments
The Group did not have any capital commitments as at the current or prior balance date.
(c) Operating lease (non-cancellable)
Within one year
Later than one year and less than five years
Aggregate lease expenditure contracted for at reporting date but
not recognised as liabilities
100,724
100,724
48,895
195,580
201,448
244,475
57
De Grey Mining Limited
23. Related party transactions
(a) Parent entity
The ultimate parent entity within the Group is De Grey Mining Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in note 24.
(c) Transactions with related parties
Transactions between related parties are on commercial terms and conditions, no more favourable than those available to
other parties unless otherwise stated.
(d) Loans to related parties
De Grey Mining Limited has provided unsecured, interest free loans to each of its wholly owned Australian subsidiaries and
all of which have been fully impaired.
24.
Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1(b):
Name
Country of Incorporation Class of Shares
Equity Holding¹
Beyondie Gold Pty Ltd
Domain Mining Pty Ltd
Winterwhite Resources Pty Ltd
Last Crusade Pty Ltd
Indee Gold Pty Ltd²
Australia
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
¹ The proportion of ownership interest is equal to the proportion of voting power held.
² The acquisition of Indee Gold Pty Ltd was completed on 22 August 2019, subsequent to the reporting date (Refer Note 29).
25.
Interests in joint ventures / other acquisitions
2019
2018
%
100
100
100
100
-
%
100
100
100
100
-
(a) Attgold Pty Ltd Retained Pegmatite Rights across E45-2364 (a tenement within the Pilbara Project)
In February 2007, De Grey acquired 100% of tenement E45-2364 on exercise of an option. Under the agreement, Attgold
retained the pegmatite related rights on this tenement only. The pegmatite rights give Attgold rights to explore on the
tenement for pegmatite minerals, which in turn are defined as “tin, tantalum, niobium, lithium, caesium and non-gold
bearing or base metal bearing aggregate.” This is subject to various clauses of priority, access and normal statutory
requirements. De Grey holds all other mineral rights in this tenement, most specifically gold and base metals and the joint
venture has a carrying value of nil.
(b) Mount Dove Iron Rights
On 22 September 2015, the company entered into a Deed of Termination with the Atlas Iron Group, where they relinquished
their iron ore rights on any of the Turner River Project tenements, the Company shall pay Atlas Iron Limited a one-off payment
of $50,000 if it mines iron ore on its tenements.
58
De Grey Mining Limited
(c) Turner River Shingles, River Sand and Limestone Blocks Farm-Out
In October 2012 De Grey, through its wholly owned subsidiary Last Crusade Pty Ltd (“LC”), entered into an agreement with
Mobile Concreting Solutions Pty Ltd (“MCS”) under which LC facilitated the excision of graticule B703 from LC’s Exploration
Licence 45/3390. Under the agreement, MCS applied for a mining licence over the excised graticule to mine for shingles,
river sand and limestone blocks. LC retains the right to explore for all other minerals on the affected ground and MCS pays a
royalty of $0.50 per tonne to LC for all material removed. The sands mining operations commenced in the December 2013
quarter and have continued throughout the current financial year.
(d) Indee Gold Option
On 24 January 2017, De Grey initially entered into an exclusive and binding Heads of Agreement (“HoA”) with current owner
Northwest Nonferrous Australia Mining Pty Ltd (“NNAM”) and its wholly-owned subsidiary, Indee Gold Pty Ltd (“Indee Gold”).
Indee Gold owns the gold assets to the immediate west of De Grey’s Turner River Project near Port Hedland, Western
Australia.
De Grey executed a detailed Share Sale Agreement (“SSA”) on 9 February 2018 to acquire all the shares in Indee Gold from
NNAM for a total acquisition price is A$15 Million. As at the reporting date, De Grey has completed its financial obligations
under the agreement via the payment of an initial Exclusivity Fee of $100,000 (paid in January 2017) and a deposit of $1.5
Million (paid in February 2018) and during the reporting period a further payment of $800,000 to extend settlement out to
24 July 2019.
As at the reporting date, the remaining consideration payable so as to effect settlement was as follows:
•
•
$7.7 Million to be paid on Settlement scheduled on and before for 24 July 2019;
$3 Million of Consideration Shares (new De Grey fully paid ordinary shares) to be issued on Settlement to NMAM and
Matters subsequent to the reporting date
On 16 July 2019, shareholders approved resolutions to proceed with both the Indee Gold Pty Ltd acquisition, as well as
approval to issue shares to NMAM as noted above. Shareholders had previously approved both resolutions on 5 October
2018 but have taken the option to extend the settlement date during the reporting period, which required the Company to
obtain shareholder again.
On 18 July 2019, the Company executed a variation to the acquisition agreement with Northwest Nonferrous Australia
Mining Pty Ltd (“NNAM”) to extend the end date for completion of the Company’s acquisition of Indee Gold from 24 July
2019 to 24 August 2019, so as to provide De Grey with the additional time required to complete a fully-underwritten
Entitlement Offer capital raising.
On 22 August 2019, settlement was completed, and the Company became the 100% shareholder of Indee Gold Pty Ltd.
(e) Farno McMahon Project Option
On 28 July 2017, De Grey secured an option to joint venture (earn-in) agreement for tenement E47/2502, representing the
Farno McMahon Project. An option fee of $40,000 was paid to the Vendor granting De Grey an exclusive right and period to
assess the project and on 2 October 2017, the Company elected to enter into a Joint Venture Earn-in. The vendor retains all
alluvial rights.
The Joint Venture Earn-in consists of two stages:
Stage 1 - DEG to spend a minimum of $1.0M over a period of 3 years to earn 30%, as follows:
•
•
•
Year 1 (to 13 December 2017) expenditure requirement of $100,000 has been met;
Year 2 (to 13 December 2018 subsequently extended to 13 March 2019) expenditure requirement of $300,000 has been
met; and
Year 3 (to 13 December 2019) expenditure requirement of $600,000 which is in progress at the date of this report.
Stage 2 - DEG may spend a further $1.0M expenditure over an additional 1-year period (Year 4) to earn an additional 45%
equity in the tenement for a total equity of 75%.
59
De Grey Mining Limited
(f) Vanmaris Project Option
On 25 September 2017, secured an Option letter agreement with the owner of tenements E47/3399, E47/3428-3430,
P47/1732-1733 whereby De Grey may acquire an 80% interest in each of these listed tenements, within a 4 year option
period.
The terms of the letter agreement included a cash and script option payment to the vendors of $30,000 cash and 150,000
ordinary fully paid De Grey shares.
De Grey are to maintain the tenements in good standing during the option period and within the 4 year option period can
elect to acquire an 80% interest on payment of $500,000 cash. The vendor retains the alluvial and prospecting rights to a
depth of 3 metres.
(g) Blue Moon Project Option
On 11 October 2017, secured an Option letter agreement with the owner of tenement P47/1773 whereby De Grey may
acquire a 70% interest in the listed tenements, within a 2 year option period.
The key terms of the letter agreement included a cash and script option payment to the vendors of $125,000 cash and
600,000 ordinary fully paid De Grey shares.
It is then to fund exploration at De Grey’s discretion during the 2 year Option Period and after which it can elect to acquire
70% of the mineral rights of the tenement below 6m depth on payment of $500,000 cash. The Vendor retains all the mineral
rights to a depth of 6 metres.
26.
Statement of cash flows
Reconciliation of net loss after income tax to net cash outflow from operating
activities
Net loss for the year
Non-Cash Items
Depreciation of non-current assets
Share based payments (options and performance rights)
Equity settlement of expenses
Gain on available for sale investments
Change in operating assets and liabilities
(Increase)/decrease in trade, other receivables and assets
(Increase)/decrease in inventories
(Decrease)/increase in trade and other payables
Other Items
Payments to acquire or option mineral tenements
Transaction costs – loans and borrowings
Exploration & evaluation expenditure capitalised
Net cash outflow from operating activities
Consolidated
2019
$
2018
$
(2,009,130)
(2,476,951)
182,117
751,744
616,964
(9,103)
(353,831)
8,901
239,136
10,000
150,959
40,663
696,201
332,113
-
(145,510)
(8,200)
135,953
154,500
-
(8,999,356)
(5,814,539)
(9,411,599)
(7,085,770)
60
27. Loss per share
(a) Reconciliation of earnings used in calculating loss per share
Loss attributable to the owners of the company used in calculating basic and diluted
loss per share
(b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic and diluted loss per share
De Grey Mining Limited
2019
$
2018
$
(2,009,130)
(2,476,951)
Number of shares
398,278,765
291,136,047
(c) Information on the classification of options
As the Group has made a loss for the year ended 30 June 2019, all options on issue are considered antidilutive and have not been included
in the calculation of diluted earnings per share. These options could potentially dilute basic earnings per share in the future.
28.
Share-based payments
From time to time options are granted to;
(i) eligible employees under the Performance Rights Plan (“PRP”) and/or the Employee Option Plan (“EOP”) of De Grey
Mining Limited to align their interests with that of the shareholders of the company.
(ii) Directors under rules comparable with the PRP and/or EOP, but subject to shareholder approval pursuant to the
provisions of the ASX Listing Rules and the Corporations Act 2001.
(a) Options
Employee Option Plan of De Grey Mining Limited (“EOP”) ¹
Shareholders last approved the EOP at the Annual General Meeting held on 28 November 2018. The EOP is designed to attract
and retain eligible employees, provide an incentive to deliver growth and value for the benefit of all Shareholders and facilitate
capital management by enabling the Company to preserve cash reserves for expenditure on principal activities. Participation
in the Plan is at the discretion of the Board and no eligible employee has a contractual right to receive an option under the
Plan.
The exercise price and expiry date for all options granted will be determined by the board prior to granting of the options, and
in the case of Director options subject to shareholder approval. The options granted may also be subject to conditions on
exercise and usually have a contractual life of two to three years.
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share in
the capital of the company with full dividend and voting rights.
There were 2,500,000 director options granted (2018: Nil) and 2,250,000 EOP options¹ granted (2018: 2,250,000) in the
financial year ended 30 June 2019 and are all currently outstanding are detailed in the following table:
Grant date
Expiry date
Exercise price
Cents
Balance at start
of the year
Granted during
the year
Number
Number
Expired or
other change
during the year
Number
Balance at end of
the year
Number
Vested and
exercisable at
end of the year
Number
Consolidated – 2018
30 Nov 2016
30 Nov 2016
24 Sep 2017
17 Oct 2018
17 Oct 2018
30 Nov 2018
30 Nov 2018
31 Oct 2020
31 May 2021
31 May 2021
2,500,000
3,600,000
2,250,000
-
-
8,350,000
-
-
-
2,500,000
2,250,000
4,750,000
(2,500,000)
(3,600,000)
-
-
-
(6,100,000)
-
-
2,250,000
2,500,000
2,250,000
7,000,000
-
-
2,250,000
2,500,000
2,250,000
7,000,000
61
De Grey Mining Limited
Grant date
Expiry date
Exercise price
Cents
Balance at start
of the year
Granted during
the year
Number
Number
Expired or
other change
during the year
Number
Balance at end of
the year
Number
Vested and
exercisable at
end of the year
Number
Consolidated – 2018
25 Nov 2014
30 Nov 2016
30 Nov 2016
24 Sep 2017
25 Nov 2017
30 Nov 2018
30 Nov 2018
31 Oct 2020
2,125,000
3,500,000
3,850,000¹
-
9,475,000
-
-
-
2,250,000
2,250,000
(2,125,000)
(1,000,000)
(250,000)
-
(3,375,000)
-
2,500,000
3,600,000
2,250,000
8,350,000
-
2,500,000
3,600,000
2,250,000
8,350,000
Expenses arising from options - share-based payment transactions
The weighted average fair value of the options granted during the year was $0.0426 (2018: $0.0262). The price was calculated
by using the Black-Scholes European Option Pricing Model applying the following inputs:
Weighted average exercise price (cents)
Weighted average life of the option (years)
Weighted average underlying share price (cents)
Expected share price volatility
Weighted average risk-free interest rate
2019
30.0
2.6
15.0
75%
1.5%
2018
10.0
3.1
6.6
75%
1.5%
Historical volatility has been used as the basis for determining expected share price volatility as it assumed that this is
indicative of future trends, which may not eventuate.
No assumptions have been made relating to dividends or expected early exercise of the options and there are no other inputs
to the model.
The life of the options is based on historical exercise patterns, which may not eventuate in the future.
Total expenses arising from equity settled share-based payment transactions recognised during the period were as follows:
Options issued to directors and EOP to eligible employees
(b) Performance rights
$
202,350
$
58,950
Employee Performance Rights Plan of De Grey Mining Limited (“PRP”)
Shareholders approved the PRP at the Annual General Meeting held on 30 November 2017. The PRP, like the EOP Plan is
designed to attract and retain eligible employees, provide an incentive to deliver growth and value for the benefit of all
Shareholders and facilitate capital management by enabling the Company to preserve cash reserves for expenditure on
principal activities. Participation in the Plan is at the discretion of the Board and no eligible employee has a contractual right
to receive performance rights under the Plan.
The performance rights granted will be determined by the board prior to granting of the rights, and in the case of Director
performance rights, these are subject to shareholder approval. The rights granted may be subject to performance milestones
before the holder has the right to exercise (Refer Note 17) and can have a contractual life of up to 5 years.
Rights granted carry no dividend or voting rights. When exercisable, each right is convertible into one ordinary share in the
capital of the company with full dividend and voting rights.
There were Nil performance rights granted (2018: 6,700,000) in the financial year ended 30 June 2019 and all remained
outstanding as at the reporting date, as detailed in the following table:
62
De Grey Mining Limited
Expenses arising from performance rights - share-based payment transactions
On 21 December 2017, 6,700,000 unlisted Performance Rights were issued to directors and employees of the Group, with
vesting conditions as described in Note 17 (e)
Number Issued (No.)
Grant Date
Exercise Price ($)
Expiry/Amortisation Date
Underlying Share Price on Grant ($)
Total Fair Value ($) – Life of Right
Tranche 1
Tranche 2
Tranche 3¹
Tranche 4¹
Tranche 5
1,300,000
1,300,000
1,450,000
1,450,000
1,200,000
21-Dec-2017
21-Dec-2017
21-Dec-2017 21-Dec-2017 21-Dec-2017
N/A
N/A
N/A
N/A
N/A
30-Nov-2019
30-Nov-2019
24-Jul-2019 30-Nov-2021 30-Nov-2019
$0.17
$0.17
$0.17
$0.17
$0.17
$221,000
$221,000
$246,500
$246,500
$204,000
Total Fair Value ($) – Expensed 30 June 2019
$113,613
$113,613
$154,858
$62,437
$104,873
¹ Under the performance rights plan, rights expire the earlier of any date specified on issue or 5 years. In the case of tranches 3 and 4 and for the purposes
of amortisation, the fair value share-based payments have been calculated on the basis of all information available at date of this report, and board considers
both dates as appropriate.
² On 22 August 2019 and subsequent to the reporting date, the vesting conditions on Tranches 1, 3 and 5 had been met, with 100% of those performance
rights exercises and shares allotted (Refer Note 29 – Subsequent Events).
$549,394
29.
Events occurring after the reporting date
There have been no matters or circumstances occurring subsequent to the end of the financial year that has significantly
affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the
Group in future financial years, other than;
On 16 July 2019, shareholders approved resolutions to proceed with both the Indee Gold Pty Ltd acquisition, as well as
approval to issue $3M of consideration shares to NMAM. Shareholders had previously approved both resolutions on 5
October 2018 but as the Company exercised its option to extend the settlement date out to 24 July 2019, it was necessary
under ASX listing rules to obtain shareholder approval again.
On 18 July 2019, the Company executed a further variation to the acquisition agreement with Northwest Nonferrous
Australia Mining Pty Ltd (“NNAM”) to extend the end date for completion of the Company’s acquisition of Indee Gold Pty
Ltd from 24 July 2019 to on or before 24 August 2019, so as to provide De Grey with the additional time required to
complete a fully-underwritten Entitlement Offer capital raising.
On 24 July 2019, the Company completed a placement of 60.3 Million shares to sophisticated, professional and other
exempt investor clients of Bell Potter Securities Limited (“BPS”), at a price of $0.05 per share to raise $3.017 Million (before
costs of raising) as well as announcing that BPS would also be fully underwriting a Pro-rata Renounceable Entitlement Offer
on a 1 for 1.28 basis to raise $19.1 Million (before costs of raising), also at an issue price of $0.05 per share. All funds
settled capital raise. The capital raisings were all settled by 14 August 2019.
On 22 August 2019, settlement of the acquisition of Indee Gold Pty Ltd was completed, with the Company making the final
cash payment of $9.7 Million in cash and the issue of 59,065,579 fully paid ordinary shares in the Company (at a deemed
price of 5.0879 cents per share).
On 22 August 2019, the Company also allotted the following fully paid ordinary shares;
•
•
3,802,748 shares in lieu of supplier invoices at a deemed price of 6.5 cents per share.
3,950,000 shares on the exercise of 3,950,000 performance rights to directors and employees. These presented
Tranches 1, 3 and 5 (Refer Note 17(e)) where each of the respective vesting conditions had been met.
63
30. Parent entity information
De Grey Mining Limited
Parent Entity
2019
$
2018
$
The following information relates to the parent entity, De Grey Mining Limited, at 30 June 2019. The information presented here has been
prepared using accounting policies consistent with those presented in Note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Contributed equity
Reserves
Accumulated losses
Total equity
Loss for the year
Other comprehensive loss
Total comprehensive loss for the year
2,225,702
31,404,480
33,630,182
14,016,475
-
14,016,475
70,787,718
1,414,570
(52,588,581)
19,613,707
(2,009,130)
(2,009,130)
1,455,470
22,873,773
24,329,243
2,032,743
12,700,000
14,732,743
59,464,845
711,106
(50,579,451)
9,596,500
(2,476,951)
-
(2,476,951)
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2019 and 30 June 2018.
Capital commitments
The parent entity had no capital commitments as at 30 June 2019 and 30 June 2018.
Accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1.
64
De Grey Mining Limited
Director’s Declaration
In the directors’ opinion:
(a)
the financial statements and notes set out on pages 34 to 64 are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
giving a true and fair view of the company’s and the consolidated entity’s financial position as at 30 June 2019
and of their performance for the financial year ended on that date;
the audited remuneration report set out on pages 24 to 30 of the directors’ report complies with section 300A of
the Corporations Act 2001;
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable; and
a statement that the attached financial statements are in compliance with Australian Accounting Standards has been
included in the notes to the financial statements.
(b)
(c)
(d)
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Simon Lill
Executive Chairman
Perth, 25 September 2019
65
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF DE GREY MINING LIMITED
Report on the Financial Report
Opinion
We have audited the financial report of De Grey Mining Limited (“the Company”) and its controlled
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
2019 the consolidated statement of 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.
In our opinion:
a) the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its
financial performance for the year then ended; and
ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
b) The financial report also complies with the International Financial Reporting Standards as
disclosed in note 1 A(i).
Basis for Opinion
We have 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 ethical requirements
in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period.
These matters were addressed in the context of our audit of the financial report as a while, 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
Our audit procedures included the following:
• ensuring the Group’s continued right to explore
in the relevant areas of interest including
assessing documentation such as exploration
and mining licences;
• enquiring of management and the directors as
to the Group’s intentions and strategies for
future exploration activity and
reviewing
budgets and cash flow forecasts;
• assessing the results of recent exploration
activity to determine whether there are any
indicators suggesting a potential impairment of
the carrying value of the asset;
• assessing the Group’s ability to finance the
planned exploration and evaluation activity; and
• assessing the adequacy of the disclosures
made by the Group in the financial report.
exploration
Deferred
expenditure (refer notes 1(J) and 12)
and
evaluation
The Group operates as an exploration entity
its primary activities entail
and as such
expenditure focussed on the exploration for and
evaluation of economically viable mineral
deposits. These activities are currently limited
to the Pilbara region in Western Australia.
All exploration and evaluation expenditure
incurred during the year has been capitalised
and recognised as an asset in the Statement of
Financial Position.
The closing value of deferred exploration and
evaluation expenditure is $30,675,391 as at 30
June 2019.
The carrying value of exploration and
evaluation assets is subjective based on the
Group’s intention, and ability, to continue to
explore the asset. The carrying value may also
be affected by
results of ongoing
exploration activity indicating that the mineral
reserves and
resources may not be
commercially viable for extraction. This creates
a risk that the asset value included within the
financial statements may not be recoverable.
the
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2019, but does not include the
financial report and the auditor’s report thereon.
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.
Directors’ Responsibilities 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 the Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit.
We also:
•
Identify and assess 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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
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
significant in the audit of the financial report of the current period and are therefore 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 public interest benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included on pages 24 to 30 of the directors’ report for the
year ended 30 June 2019.
In our opinion, the Remuneration Report of De Grey Mining Limited, for the year ended 30 June 2019,
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.
BUTLER SETTINERI (AUDIT) PTY LTD
LUCY P GARDNER
Director
Perth
Date: 25 September 2019
ASX Additional Information
De Grey Mining Limited
Additional information required by Australian Stock Exchange Ltd, and not shown elsewhere in this report, is as follows. The
information is current as at 18 September 2019.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
The number of shareholders holding
marketable parcel of shares are:
less than a
Ordinary shares
Number of holders
Number of shares
177
364
414
1,524
791
3,270
770
31,699
1,239,377
3,472,698
62,284,957
871,521,980
938,550,711
2,909,706
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are as follows:
DGO Gold Limited
Northwest Nonferrous Australia Mining Pty Ltd
Citicorp Nominees Pty Ltd
Kirkland Lake Gold Limited
HSBC Custody Nominees Australia Ltd
HSBC Custody Nominees Australia Ltd – A/C 2
JP Morgan Nominees Australia Pty Ltd
BNP Paribas Nominees Pty Ltd
1
2
3 Merrill Lynch (Australia) Nominees Pty Ltd
4
5
6
7
8
9
10 Mr. Michael Lynch
11 Ginga Pty Ltd
12 Troca Enterprises Pty Ltd
13 Morgan Stanley Australia Securities (Nominee) Pty Limited
14 National Nominees Ltd
15 Mr Lincoln James Topham & Mrs Pauline Margery Topham
16 Mr. Andrew Rhys Jackson
17 Equity Trustees Limited
18 BNP Paribas Nominees Pty Ltd
19 Nelson Enterprises
20 HSBC Custody Nominees Australia Ltd - GSCO ECA
70
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
100,845,935
59,065,579
55,289,316
45,737,147
33,333,333
27,366,168
20,389,359
19,587,224
18,042,297
13,983,563
13,274,000
11,424,841
10,801,000
9,500,000
9,212,498
9,095,000
8,277,786
8,194,295
7,796,388
7,342,149
432,194,484
10.74%
6.29%
5.89%
4.87%
3.55%
2.92%
2.17%
2.09%
1.92%
1.49%
1.41%
1.22%
1.15%
1.01%
0.98%
0.97%
0.88%
0.87%
0.83%
0.78%
52.05%
(c) Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations
Act 2001 are:
De Grey Mining Limited
DGO Gold Limited
Northwest Nonferrous Australia Mining Pty Ltd
(d) Unquoted (unlisted) Securities
Number of Shares
100,845,935
59,065,579
Class
Number
of
Securities
Number
of
Holders
Unlisted $0.10 options, expiry 31 October 2020
2,250,000
3
Unlisted $0.10 options, expiry 31 October 2020
12,000,000
Unlisted $0.20 options, expiry 30 November 2019
Unlisted $0.25 options, expiry 30 November 2019
Unlisted $0.30 options, expiry 31 May 2021
Unlisted $0.30 options, expiry 31 May 2021
33,333,333
12,500,000
12,500,000
4,750,000
1
1
1
1
Performance rights
6,700,000
6
Holders of 20% or more of the class
Holder Name
Andrew Beckwith
Phil Tornatora
Craig Nelmes
Corporate Resource
Consultants Pty Ltd
Kirkland Lake Gold Limited
DGO Gold Limited
DGO Gold Limited
Simon Lill
Andrew Beckwith
Andrew Beckwith
Simon Lill
Number of
Securities
1,000,000
750,000
500,000
12,000,000
33,333,333
12,500,000
12,500,000
1,000,000
1,000,000
2,000,000
1,500,000
(e) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
The Quoted and unquoted (unlisted) options have no voting rights.
(f) Corporate Governance
The Board of De Grey Mining Limited is committed to Corporate Governance. The Board is responsible to its Shareholders
for the performance of the Company and seeks to communicate with Shareholders. In accordance with ASX Listing Rule
4.10.3, the Company has elected to disclose its Corporate Governance policies and its compliance with them on its website,
rather than in the Annual Report.
Accordingly, information about the Company's Corporate Governance practices is set out on the Company's website at
https://degreymining.com.au/corporate-governance.
(g) Application of Funds
During the financial year, De Grey Mining Limited confirms that it has used its cash and assets (in a form readily
convertible to cash) in a manner which is consistent with the Company’s business objectives.
71
Annual Mineral Resources Statement
Withnell Mining Centre September 2019 Mineral Resources - Gold
Indicated
Au Oz Mt
Au g/t
Au Oz
Measured
Au
g/t
1.4
1.7
1.5
Mt
0.58
0.60
1.17
26,400
31,900
58,300
Inferred
Au
g/t
1.3
2.8
2.0
4.4
4.0
4.0
1.2
1.4
1.3
1.6
1.9
1.8
1.1
1.8
1.7
0.8
1.2
1.2
1.6
2.2
2.0
1.6
1.8
1.7
Au Oz
1,700
3,800
5,500
200
197,700
197,900
21,300
88,800
110,100
13,100
59,500
72,600
1,500
8,600
10,100
1,400
9,300
10,700
5,700
14,800
20,500
2,200
4,700
6,900
0.15
1.02
1.17
0.03
0.64
0.67
0.45
0.81
1.26
0.62
3.49
4.10
0.32
0.14
0.46
0.43
0.56
0.99
0.13
0.07
0.20
0.03
0.03
0.06
0.86
0.86
0.04
0.01
0.06
3.05
6.77
9.82
1.6
2.0
2.0
2.9
4.4
4.4
1.3
1.2
1.2
2.4
2.1
2.2
2.6
1.4
2.2
1.3
1.3
1.3
1.5
2.3
1.8
1.6
1.6
1.6
0.7
0.7
2.1
2.1
2.1
1.5
2.1
1.9
7,700
65,900
73,700
2,800
91,200
94,000
19,100
31,400
50,600
47,700
236,300
284,000
26,800
6,500
33,300
17,900
23,800
41,700
6,000
5,300
11,300
1,400
1,700
3,200
19,300
19,300
3,000
900
3,900
151,900
463,100
615,000
Mt
0.04
0.04
0.08
0.00
1.55
1.55
0.55
2.01
2.57
0.25
0.98
1.23
0.04
0.14
0.19
0.05
0.23
0.28
0.11
0.21
0.33
0.04
0.08
0.12
0.03
0.05
0.07
1.12
5.30
6.43
0.18
0.01
0.19
2.8
2.1
2.8
16,400
600
17,000
0.06
0.01
0.08
0.10
2.7
2.5
2.7
2.2
5,500
1,000
6,500
7,200
0.10
2.2
7,200
0.92
0.62
1.54
1.9
1.7
1.8
55,400
33,500
88,900
De Grey Mining Limited
Total
Au
g/t
1.4
1.9
1.8
3.0
4.1
4.1
1.3
1.3
1.3
2.2
2.1
2.1
2.6
1.7
2.2
1.3
1.3
1.3
1.8
2.2
2.0
1.9
1.7
1.9
0.7
Au Oz
35,800
101,600
137,400
3,000
288,900
291,900
40,500
120,200
160,700
60,800
295,800
356,600
44,700
15,700
60,400
19,300
33,100
52,400
17,200
21,100
38,300
10,800
6,400
17,200
19,300
Mt
0.77
1.66
2.43
0.03
2.19
2.22
1.00
2.82
3.83
0.86
4.46
5.33
0.54
0.29
0.84
0.48
0.79
1.27
0.30
0.30
0.60
0.17
0.12
0.29
0.86
1.3
1.4
1.4
1.3
2.3
2.1
1,100
2,100
3,300
48,200
389,300
437,500
0.86
0.07
0.06
0.13
5.09
12.69
17.79
0.7
1.8
1.6
1.7
1.6
2.2
2.0
19,300
4,100
3,100
7,200
255,500
885,800
1,141,400
Au Oz
Mt
Au Oz
Mt
Wingina Mining Centre September 2019 Mineral Resources - Gold
Measured
Au
g/t
1.8
1.6
1.7
Au Oz
152,100
20,500
172,700
Mt
2.68
0.40
3.08
2.68
0.40
3.08
1.8
1.6
1.7
152,100
20,500
172,700
Mt
0.65
0.34
0.99
0.68
0.27
0.95
0.51
0.07
0.58
1.84
0.68
2.52
Indicated
Au
g/t
1.3
1.5
1.4
1.8
1.7
1.7
1.3
1.8
1.4
1.5
1.6
1.5
27,000
16,300
43,300
38,900
14,400
53,300
21,700
4,200
25,800
87,600
34,900
122,500
Inferred
Au
g/t
1.3
1.7
1.6
1.1
1.2
1.2
0.9
1.1
0.9
1.1
1.3
1.2
14,400
57,400
71,700
35,800
91,800
127,600
24,700
19,200
43,900
74,900
168,400
243,200
0.34
1.08
1.42
0.99
2.40
3.39
0.89
0.56
1.44
2.21
4.04
6.25
Total
Au
g/t
1.6
1.6
1.6
1.4
1.2
1.3
1.0
1.2
1.1
1.5
1.4
1.4
Au Oz
193,500
94,200
287,700
74,700
106,300
181,000
46,300
23,300
69,700
314,500
223,800
538,400
3.67
1.82
5.49
1.67
2.77
4.34
1.40
0.63
2.03
6.74
5.12
11.86
72
Deposit
Type
Withnell
Open Pit
Withnell
U/G
Mallina
Tower-
anna
Camel
Calvert
Roe
Drom-
edary
Leach
Pad
Hester
Withnell
Mining
Centre
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Deposit
Type
Wingina
Mt
Berghau
s
Amanda
Wingina
Mining
Centre
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
Oxide
Fresh
Total
De Grey Mining Limited
De Grey Mining Limited Total September 2019 Mineral Resources - Gold
Mining
Centre
Type
Oxide
Withnell
Fresh
Total
Oxide
Wingina
Fresh
Total
Oxide
Fresh
Total
Total
Pilbara
Gold
Project
Measured
Mt
0.92
0.62
1.54
2.68
0.40
3.08
3.60
1.02
4.62
Au
g/t
1.9
1.7
1.8
1.8
1.6
1.7
1.8
1.6
1.8
Au Oz
55,400
33,500
88,900
152,100
20,500
172,700
207,600
54,000
Mt
3.05
6.77
9.82
1.84
0.68
2.52
4.90
7.45
261,600
12.35
Indicated
Au
g/t
1.5
Au Oz
151,900
463,100
615,000
87,600
34,900
122,500
239,400
498,000
Mt
1.12
5.30
6.43
2.21
4.04
6.25
3.34
9.34
737,500
12.68
2.1
1.9
1.5
1.6
1.5
1.5
2.1
1.9
Inferred
Au
g/t
1.3
2.3
2.1
1.1
1.3
1.2
1.1
1.9
1.7
Au Oz
Mt
48,200
5.09
389,300
12.69
437,500
17.79
74,900
168,400
6.74
5.12
243,200
11.86
123,100
11.83
557,600
17.81
680,700
29.65
Total
Au
g/t
1.6
2.2
2.0
1.5
1.4
1.4
1.5
1.9
1.8
Au Oz
255,500
885,800
1,141,400
314,500
223,800
538,400
570,100
1,109,700
1,679,700
All gold deposits are reported at a 0.5g/t Au cut-off grade except Withnell Underground (beneath Pit 33 Whittle shell) where
a 2.0g/t cut-off was applied and Wingina below -55mRL where a 1.0g/t Au cut-off was applied.
Deposit
Class
Discovery
Massive Sulphide
Discovery Deposit
Halo
Mineralisation
Discovery Deposit
Total
Orchard Tank
Deposit Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Indicated
Inferred
Total
Turner River Project September 2019 Base Metal Mineral Resources
Pb
Zn
Tonnes
Mt
0.27
0.35
0.61
0.15
0.63
0.78
0.41
0.98
1.39
Zn
%
5.2
5.2
5.2
0.9
1.1
1.0
3.7
2.6
2.9
Pb
%
2.4
2.1
2.2
0.5
0.5
0.5
1.7
1.0
1.2
Cu
%
0.2
0.2
0.2
0.1
0.1
0.1
0.2
0.1
0.1
Ag
Au
ppm ppm
192
1.9
196
1.3
194
1.5
47
0.9
60
0.6
57
0.6
140
1.6
108
0.8
118
1.0
Metal Tonnes
13,900
18,200
32,100
1,300
6,900
8,200
15,200
25,100
40,300
6,400
7,100
13,500
700
2,900
3,600
7,100
10,000
17,100
Cu
600
600
1,200
100
400
400
700
900
1,700
Au
Oz
16,300
14,100
30,400
4,300
11,700
16,000
20,600
25,800
46,400
Ag
kOz
1,600
2,200
3,800
200
1,200
1,400
1,900
3,400
5,300
2.08
2.08
3.4
3.4
1.4
1.4
0.1
0.1
0.7
0.7
105
105
70,800
70,800
28,900
28,900
2,400
2,400
45,500
45,500
7,000
7,000
Turner River Total September 2019 Base Metal Mineral Resources
Class
Tonnes
Mt
0.41
3.06
3.47
Discovery and Orchard Tank deposits are reported at a 0.5% Zn cut-off grade
Indicated
Inferred
Total
Au
ppm
1.6
0.7
0.8
Ag
ppm
140
106
110
Pb
%
1.7
1.3
1.3
Cu
%
0.2
0.1
0.1
Zn
%
3.7
3.1
3.2
De Grey Total
Zn
Pb
Cu
Metal Tonnes
15,200
95,800
111,000
7,100
39,000
46,100
700
3,400
4,100
Au
Oz
20,600
71,300
91,900
Ag
kOz
1,900
10,400
12,300
73
Review of Material Changes
Material changes have been made to the Company’s Gold Mineral Resource Inventory. Between September 2018 and
September 2019, the total inventory for the Pilbara Gold Project increased from 27.2Mt at 1.6g/t for 1,394koz to 29.6Mt at
1.8g/t for 1,678koz as shown below.
De Grey Mining Limited
Measured
De Grey Mining Limited - Comparison of September 2018 and September 2019 Gold Mineral Resources
Total
Au
g/t
1.8
Inferred
Au
g/t
1.7
Report
Year
Au
g/t
1.9
Au
g/t
1.8
Indicated
680,700
737,500
261,600
Au Oz
Au Oz
Au Oz
12.35
29.65
12.68
4.62
Mt
Mt
Mt
Mt
Au Oz
1,679,700
1.7
2%
247,400
9.85
1.6
491,800
12.93
1.6
654,500
27.25
1.6
1,393,800
6%
25%
20%
50%
-2%
6%
4%
9%
11%
21%
Pilbara
Gold
Project
Total
2019
2018
4.47
Change
3%
At the Withnell Mining Centre, increases are due to the delineation of a new Mineral Resource for the Withnell Underground
deposit where high grade lodes were targeted by deep drilling. Toweranna and Hester deposits increased with the
incorporation of successful exploration drilling results. The total Withnell Mining Centre Mineral Resource inventory at
September 2019 comprised 17.8Mt at 2.0g/t Au for 1,141koz, an increase of 31% in ounces compared to the September
2018 report.
At the Wingina Mining Centre, a material increase to the Amanda Mineral Resource estimate resulted from the incorporation
of successful exploration drilling results. The Mineral Resource at September 2019 for the Wingina Mining Centre comprised
11.9Mt at 1.4g/t Au for 538koz, an increase of 4% in ounces compared to the September 2018 report.
Withnell Mining Centre - Comparison of September 2018 and September 2019 Gold Mineral Resources
Deposit
Withnell
Mallina
Tower-
anna
Camel
Calvert
Roe
Drom-
edary
Leach
Pad
Hester
Withnell
Mining
Centre
Report
Year
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
Measured
Au
g/t
1.5
1.3
19%
Au Oz
58,300
44,100
32%
Mt
1.17
1.02
15%
0.19
0.19
0%
2.8
2.8
0%
17,000
17,000
0%
0.08
0.08
0%
0.10
0.10
0%
2.7
2.7
0%
2.2
2.2
0%
6,500
6,500
0%
7,200
7,200
0%
1.54
1.39
11%
1.8
1.7
7%
88,900
74,800
19%
Indicated
Inferred
Total
Mt
Au g/t
Au Oz
Mt
1.84
2.79
-34%
1.26
1.26
0%
4.10
0.72
468%
0.46
0.46
0%
0.99
0.99
0%
0.20
0.20
0%
0.06
0.06
0%
0.86
0.86
0%
0.06
>
9.82
7.33
34%
1.64
2.56
-36%
2.57
2.57
0%
1.23
1.29
-5%
0.19
0.19
0%
0.28
0.28
0%
0.33
0.33
0%
0.12
0.12
0%
0.07
0.10
-25%
6.43
7.43
-14%
2.8
1.7
67%
1.2
1.2
0%
2.2
2.3
-8%
2.2
2.2
0%
1.3
1.3
0%
1.8
1.8
0%
1.6
1.6
0%
0.7
0.7
0%
2.1
>
1.9
1.6
24%
167,700
156,600
7%
50,600
50,600
0%
284,000
54,400
422%
33,300
33,300
0%
41,700
41,700
0%
11,300
11,300
0%
3,200
3,200
0%
19,300
19,300
0%
3,900
>
615,000
370,400
66%
74
Au
g/t
3.9
2.1
84%
1.3
1.3
0%
1.8
2.2
-15%
1.7
1.7
0%
1.2
1.2
0%
2.0
2.0
0%
1.7
1.7
0%
1.4
1.5
-9%
2.1
1.8
18%
Au Oz
Mt
Au g/t
Au Oz
203,400
176,600
15%
110,100
110,100
0%
72,600
89,500
-19%
10,100
10,100
0%
10,700
10,700
0%
20,500
20,500
0%
6,900
6,900
0%
3,300
4,800
-31%
437,500
429,200
2%
4.65
6.37
-27%
3.83
3.83
0%
5.33
2.01
165%
0.84
0.84
0%
1.27
1.27
0%
0.60
0.60
0%
0.29
0.29
0%
0.86
0.86
0%
0.13
0.10
34%
17.79
16.16
10%
2.9
1.8
60%
1.3
1.3
0%
2.1
2.2
-7%
2.2
2.2
0%
1.3
1.3
0%
2.0
2.0
0%
1.9
1.9
0%
0.7
0.7
0%
1.7
1.5
11%
2.0
1.7
19%
429,300
377,300
14%
160,700
160,700
0%
356,600
143,900
148%
60,400
60,400
0%
52,400
52,400
0%
38,300
38,300
0%
17,200
17,200
0%
19,300
19,300
0%
7,200
4,800
50%
1,141,400
874,300
31%
De Grey Mining Limited
Wingina Mining Centre - Comparison of September 2018 and September 2019 Gold Mineral Resources
Measured
Indicated
Inferred
Deposit
Wingina
Mt
Berghaus
Amanda
Wingina
Mining
Centre
Report
Year
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
Au Oz
Mt
Mt
3.08
3.08
0%
Au
g/t
1.7
1.7
0%
172,700
172,700
0%
Au
g/t
1.4
1.4
0%
1.7
1.7
0%
1.4
1.3
2%
1.5
1.5
0%
0.99
0.99
0%
0.95
0.95
0%
0.58
0.57
2%
2.52
2.51
0%
Au Oz
Mt
Au g/t
Au Oz
Mt
43,300
43,300
0%
53,300
53,300
0%
25,800
24,800
1.42
1.42
0%
3.39
3.39
0%
1.44
0.69
1.6
1.6
0%
1.2
1.2
0%
0.9
1.2
71,700
71,700
0%
127,600
127,600
0%
43,900
26,000
4%
110%
-20%
69%
5.49
5.49
0%
4.34
4.34
0%
2.03
1.26
61%
Total
Au
g/t
1.6
1.6
0%
1.3
1.3
0%
1.1
1.3
Au Oz
287,700
287,700
0%
181,000
181,000
0%
69,700
50,800
-15%
37%
3.08
3.08
1.7
1.7
172,700
172,700
122,500
121,500
1%
6.25
5.49
14%
1.2
1.3
-5%
243,200
11.86
225,300
11.09
8%
7%
1.4
1.5
-3%
538,400
519,400
4%
There were no changes to the Mineral Resource estimates for the Turner River base metal deposits during the 2019 financial
year.
Governance and Internal Control
The Company’s procedures for the sample techniques and sample preparation are regularly reviewed and audited by
independent experts.
Assays are performed by independent internationally accredited laboratories with a QAQC program showing acceptable
levels of accuracy and precision.
The exploration assay results database is maintained and appropriate backed-up internally.
All De Grey Mineral Resource estimates have been undertaken independently by Payne Geological Services Pty Ltd.
COMPETENT PERSON STATEMENT
The information in this Annual Mineral Resources Statement is based on, and fairly represents information and supporting documentation
prepared by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-
time employee of Payne Geological Services. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of
deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Payne consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
Mr Payne has approved this Mineral Resources Statement as a whole and consents to its inclusion in the Annual Report in the form and
context in which it appears.
In relation to Mineral Resources, the Company confirms that all material assumptions and technical parameters that underpin the relevant
market announcement continue to apply and have not materially changed.
75
Schedule of Interests in Mining Tenements
De Grey Mining Limited
Project/Location
Country
Tenement
Percentage
held/earning
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Turner River
Blue Moon
Farno-McMahon
Indee
Indee
Indee
Indee
Indee
Indee
Indee
Indee
Indee
Indee
Vanmaris
Vanmaris
Vanmaris
Vanmaris
Vanmaris
Vanmaris
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
E47/891
E45/2533
E45/2364
E45/2983
E45/2995
E45/3390
E45/3391
E45/3392
E45/4751
E47/3552
E47/3553
E47/3554
E47/3750
P45/3029
P47/1827
P47/1866
P47/1773
E47/2502
E47/2720
E47/3504
M47/473
M47/474
M47/475
M47/476
M47/477
M47/480
L47/164
L47/165
E47/3399
E47/3428
E47/3429
E47/3430
P47/1732
P47/1733
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%¹
0%²
0%³
0%³
0%³
0%³
0%³
0%³
0%³
0%³
0%³
0%³
0%⁴
0%⁴
0%⁴
0%⁴
0%⁴
0%⁴
¹ De Grey Option has an option to acquire a 70% interest from tenement holder Mr. Craig Gibson (Note 25(h)).
² De Grey has entered into an option to joint venture agreement with Farno McMahon Pty Ltd (owned 100% by Novo Resources Corp) to
earn up to a 75% interest.
³ In February 2018, De Grey executed a fully binding share agreement to acquire 100% of Indee Gold Pty Ltd – the tenement owner (Note
25(d)) and on 22 August 2019 settlement was completed with the Company now the 100% shareholder of Indee Gold Pty Ltd as at the
date of this report.
⁴ De Grey Option has an option to acquire an 80% interest from tenement holder Mr. Mathew Vanmaris (Note 25(g)).
76