Annual Financial Report
for the financial year ended
30 June 2021
1
Financial
Report
Table of Contents
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Report
ASX Additional Information
84 119 904 880
Level 6, 412 Collins Street Melbourne VIC 3000
ABN
Address
Telephone +61 2 8073 0574
Email
Website
info@dartmining.com.au
www.dartmining.com.au
3
10
11
12
13
14
15
16
34
35
39
2
Directors’ Report
The Directors of Dart Mining NL submit their report for the year ended
30 June 2021 and to the date of this report.
Operating and Financial Review
It has been a very busy year for Dart on all fronts. In October 2020, and
in the wake of a large ~$5m Rights Issue, Dart’s field crews got busy with
a broad range of exploration programs. Knowledge and understanding
gathered through the year is unprecedented and has allowed us to
prioritise projects and exploration activities far more efficiently. LiDAR
surveys, IP and MT geophysical surveys, RC drilling, diamond drilling, soil
sampling, and mapping have all been undertaken in the past twelve
months.
Some of the company’s very best drill intercepts were recorded during
the period and we drilled approximately 7,000 meters across four
separate projects, all the while working under various COVID‐19
restrictions and protocols. The board is very grateful to all staff and
contractors who “made it happen”, and who were at times operating
under very challenging conditions indeed. Noteworthy, beyond some
very encouraging drilling results, were the successes achieved in the
LiDAR survey which has uncovered a number of previously unknown
lithium pegmatite targets, various unknown access tracks, as well as
unused drill pads dating back to the 1980’s. In May 2021 we
commissioned our own Diamond Drill rig which after some initial
teething issues is now drilling approximately 20m per day using Dart
personnel. The rig is very maneuverable and covers a small footprint and
can drill up to 600m when properly configured. Having an in‐house
drilling capability has enormous benefits but ultimately leads to more
meters drilled for less money. The company is also operating its own
containerized ten‐man camp which brings a great deal of flexibility, cost
savings, convenience, and efficiencies. If it were not for the acquisition of
the camp last year, we would not have been able to drill at all during the
second half of 2020.
Financial Markets
Continued Central Bank support for bond markets, leading to record
low interest rates, as well as unprecedented fiscal support by
Governments, caused a sharp recovery in asset markets from the
COVID‐19 selloff in March 2020. Commodity markets also rallied
sharply in anticipation of further government stimulus spending on
infrastructure and global electrification.
Commodities
Gold (Au)
Gold rallied hard from the March 2020 lows to nearly US$2,000 per
ounce. It has since given up some of those gains. We remain bullish on
the price of gold in the wake of unprecedented money printing globally.
Lithium (Li ₂CO ₃)
Lithium Carbonate has recovered strongly over the last year with
record prices being achieved at recent auctions. Prices are now trading
at equal record levels last seen in late 2017, before the market crashed.
Demand from Electric Vehicle manufacturers as well as renewable
energy operators have combined with supply constraints to deliver
these record prices. It is difficult to imagine a fall in prices in the near
or medium term given the backdrop of fundamentals at play.
Base Metals
Dart has significant commodity exposure to the Base Metals complex.
Copper, Zinc, Molybdenum, and Lead are all abundant across Dart’s
tenements. All of these metals rallied hard during the year on demand
and supply fundamentals much the same as those that influenced
rallies in Lithium. In addition to the base metals Dart has abundance in
Tungsten, Tin (historic tin mining district), and more exotic elements
such as Tantalum, Niobium, and Rare Earth Elements (REE’s).
Exploration Review
Dart has been operating concurrent exploration programs throughout
the year. It is important that we continue to devote resources to broader
regional reconnaissance efforts as well so we can continue to generate
new exploration targets for closer focus when scheduling allows.
Lithium
Dart’s Lithium prospectivity and exploration is well documented, and
more recently the company summarised those efforts in an ASX release
on 20th July 2021. Given the huge recovery in Lithium Carbonate prices
we have recommenced our Lithium exploration program. The company’s
LiDAR survey was targeted across our Lithium tenements to try to define
unknown pegmatite outcrops and we have been rewarded for those
efforts. Not only have we uncovered previously unknown pegmatite
outcrops, we have also uncovered sizeable extensions to known Lithium
fertile pegmatites. The company’s LiDAR survey earlier this year has
achieved far more than we ever envisioned so much so that we are
planning to expand on our established survey areas.
Orogenic Gold
Drilling activities at Buckland, Rushworth, Granite Flat, and Sandy Creek
were undertaken on all four of these Orogenic Gold projects during the
year. All four projects turned up very encouraging results and we intend
to revisit them over the next twelve‐month period.
Porphyries
The Granite Flat Cu‐Au Porphyry project remains the company’s main
exploration focus at present along with our regional Lithium exploration
program. Granite Flat drilling and sampling has shown strong indications
of porphyry mineralisation and we have recently completed a 16km
Geophysical across the target. Dart has eight known porphyry targets
within its portfolio. The Mt Unicorn Molybdenum Copper porphyry has
suddenly become interesting again after years of prohibitively low Moly
prices. Molybdenum like many commodities has rallied strongly back to
price levels not seen since 2008. Joint venture discussions remain
ongoing in respect of the company’s porphyry exploration targets.
Financial overview
Operating results for the year
The loss for the consolidated entity after income tax was $790,839 (2020:
loss $552,450). This result is consistent with expectations of costs
associated with the exploration and development programs budgeted
and undertaken that reflect:
• costs associated with managing the exploration program;
• corporate overheads associated with statutory and regulatory
requirements as a consequence of being listed on the Australian
Securities Exchange.
Review of financial position
At the end of the financial year, a proportion of the funds raised in prior
financial years were held by the Group as cash investments for use in
future financial periods. The Group strives to maximise the return on
these funds for exploration purposes by investing surplus funds and
minimising expenditure on corporate overheads.
Covid update
Mining and Exploration remain an essential industry in Victoria as in
other states. Dart has been able to continue to operate throughout the
pandemic. We have nevertheless been disrupted at various times with
issues related to personnel availability and cross border travel. Other
problems such as consumables availability and parts supply have also
played out over the period. We envisage a COVID normal operating
environment going forward but have taken the precaution of purchasing
consumables and parts that would normally last for a twelve‐month
period. Supply chains are getting worse not better.
3
Directors’ Report
Information on Directors
The names and details of the Company’s Directors in office during the
financial year and until the date of this report are as follows. Directors
were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special
responsibilities
James Chirnside Chairman / Managing Director
Appointed 18 June 2015
James Chirnside has been professionally engaged in financial and
commodity markets over a thirty‐year period. Since returning to
Australia and establishing his own asset management company in 2002,
James has been involved in equities investment across the Asia Pacific
region.
In 1992 James moved to Hong Kong with Regent Fund Management
where he was responsible for resources investment as well as the firm’s
proprietary activities in base and precious metals. He worked for
Investment Bank County NatWest (London) where he traded financial
and commodity physical and derivative instruments. James managed the
overnight commodity trading desk for Bell Commodities (Melbourne)
where mining clients hedged metal production through the London Metal
Exchange. During the early part of his career he worked for global
commodity trading house Bunge where he traded in a range of food, fiber,
steel and metal commodities.
Prior to studying at Edith Cowan University in Perth, Western Australia,
James worked for Mt Newman Mining in the Pilbara region as a
geologist’s assistant.
Other current directorships of listed companies
WAM Capital Ltd
Cadence Capital Ltd
Ask Funding Ltd
Former directorships of listed companies in the last three years
IPE Limited
Mercantile Investments Ltd
Luke Robinson Non-executive Director (independent)
Appointed 18 June 2015
Luke Robinson has worked in Financial Markets for 20 years with a
number of stockbroking and advisory firms including Phillip Capital and
Citi Group.
Recently he has worked as an executive director of Melanesian
Exploration, a privately held company, where he was responsible for
researching, identifying and acquiring mainly petroleum assets in Papua
New Guinea. Luke was a senior client advisor with Philip Capital where
he was responsible for advising Institutional and Sophisticated
individual investors in the Australian share market. Luke’s main focus
was in resources companies including mining and energy where he
originated and distributed capital raisings for small and mid‐sized
companies. Luke holds a B. Sc. in Microbiology from the University of
Melbourne.
Other current directorships of listed companies
None.
Former directorships of listed companies in the last three years
None.
Denis Clarke Non-executive Director (independent)
Appointed 14 March 2018, resigned 29 September 2021.
Dr Clarke is a geologist with over 50 years of experience in senior
technical, financial and corporate positions in the mining and exploration
industry globally. In particular, over 16 years Dr Clarke played a
significant role in the extraordinary growth of Plutonic Resources
Limited through his positions as General Manager of the Exploration,
Finance and Administration, and Corporate Divisions of the company at
various times. He was part of the team which transformed Plutonic into one
of Australia’s largest gold producers with up to five operating mines and a
market capitalisation of over $1 billion. Prior to joining Plutonic, he spent
10 years in exploration mostly in Canada with Rio Algom Limited (a
subsidiary of Rio Tinto). Post‐1998, as Director and Consultant for 10 years,
he contributed to the development of Troy Resources Limited from small
explorer to successful international gold miner. He has been Non‐Executive
Chairman of five ASX‐listed exploration and mining companies including
BCD Resources Limited (formerly Beaconsfield Gold Limited). Additionally,
he has served as Non‐Executive director of four other listed resource
companies.
Dr Clarke holds a B. Sc. in Geology and B. A. (Economics and Statistics) from
Queensland University and a Ph. D. (Geology) from Stanford University in
California. He is a Fellow of the Australasian Institute of Mining and
Metallurgy.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Carl Swensson Non-executive Director (independent)
Appointed 15 July 2021
Mr Swensson is a Geologist with over 30 years of extensive global
experience in mineral exploration and resource assessment. He served as a
Chief Geologist of Exploration for Normandy Mining from 1989 to 2002,
during which time the Company grew from $100 Million to a $4.9 Billion
market capitalisation. Carl has wide‐ranging, global, field experience in
most commodities and deposit styles for gold, base metals, lithium,
uranium, diamonds, coal and graphite. Mr Swensson has also been involved
in a number of other established mining and exploration companies. He has
worked globally in a number of regions including Australia, Canada, Europe,
Indonesia and Latin America. Mr. Swensson has been directly involved in
Mergers and Acquisitions, Financial control, Health, Safety, and
Environment, Personnel, and Governance.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Julie Edwards Company Secretary
Appointed 1 July 2015
Julie Edwards was appointed as the Chief Financial Officer of Dart on 8 July
2015. She has had over 20 years’ experience and involvement in the
management of accounting and finance functions. She holds a Bachelor of
Commerce degree, is a member of CPA Australia, holds a CPA Public Practice
Certificate and is a registered Tax Agent.
Shareholdings of directors and other key
management personnel
The interests of each director and other key management personnel, directly and
indirectly, in the shares and options of Dart Mining NL at the date of this report
are as follows
Key
management
personnel
Ordinary
shares
Options over
ordinary
shares
Performance
rights
J Chirnside
L Robinson
D Clarke
396,040
197,532
1,483
2,599,010
49,383
-
2,900,000
500,000
4
Directors’ Report
Corporate structure
Dart Mining NL is a no liability company limited by shares that is
incorporated and domiciled in Australia. Dart Mining NL has prepared a
consolidated financial report incorporating Dart Resources Pty Ltd, Mt
Unicorn Holdings Pty Ltd and Mt View Holdings Pty Ltd all of which were
controlled by the Company (comprising the Group) during the financial year
and are included in the financial statements.
Principal activities
The company continues to pursue its minerals exploration activities with a
focus on its Oregenic Gold projects. Dorchap Lithium projects have also been
advanced and joint venture discussions around its Porphyry tenement assets
have commenced with multiple counterparties continue.
Dividend
No dividends in respect of the current financial year have been paid,
declared or recommended for payment.
Summary of shares, options and performance
rights on issue
At 30 June 2021, the Group has 99,945,476 ordinary shares and 32,856,369
unlisted options were on issue. Details of the options are as follows:
Number of
shares under
option
1,250,000
1,250,000
1,250,000
2,620,000
26,486,369
Class of
shares
Exercise price
(cents)
Expiry date
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
40
30
40
28 March 2022
5 May 2022
5 May 2022
8
30 June 2022
30
30 September 2022
During the financial year, 3,400,000 performance rights were granted to Key
Management Personnel of the Company.
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group
during the financial year.
Significant events after balance date
No matters or circumstances have arisen since the end of the financial year that
have significantly affected or may have a significant effect on the financial
operations of the Group, the financial performance of those operations or the
financial position of the Group in the subsequent financial year.
Future developments, prospects and business
strategies
The company will continue to advance exploration activities in its three
nominated strategies those being; Lithium, Orogenic Gold, and Porphyries.
Field work emphasis will be in Lithium exploration in the near term but the
company has scheduled additional exploration and development activities
for Orogenic Gold and Porphyries over the coming months.
As the Group is listed on the Australian Securities Exchange, it is subject to
the continuous disclosure requirements of the ASX Listing Rules which
require immediate disclosure to the market of information that is likely to
have a material effect on the price or value of Dart Mining NL’s securities.
The Board of Directors believe they have been compliant with the continuous
disclosure requirements throughout the reporting period and to the date of th
this report.
Environmental regulation
The economic entity holds participating interests in a number of exploration
tenements. The various authorities granting such tenements require the
tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement. There have been no
known breaches of the tenement conditions and no such breaches have been
notified by any government agencies during either the year ended 30 June 2021
or at the date of this report.
Directors Meetings
The number of Directors meetings held during the year and the numbers of
meetings attended by each Director and Committee member were as
follows:
Directors
Held
Board of Directors
Entitled to
attend
Attended
J Chirnside
D Clarke
L Robinson
Directors
D Clarke
L Robinson
4
4
4
4
4
4
4
4
4
Remuneration and Nomination Committee
Committee
Held
Attended
Entitled to
attend
-
-
-
-
-
-
There were no meetings held by the remuneration and nomination committee.
Indemnification and insurance of directors and
officers
The Company has entered into Deeds of Indemnity with the Directors and
liabilities and
Officers of the Company, indemnifying them against certain
costs to the extent permitted by law.
The Company has also agreed to pay a premium in respect of a contract insuring
the directors and officers of the Company. Full details of the cover and premium
are not disclosed as the insurance policy prohibits the disclosure.
Proceedings on behalf of the Company
No persons have applied for leave of a Court to bring proceedings on behalf of
the Company or intervene in any proceedings to which the Company is a party
for the purpose of taking responsibility on behalf of the Company for all or any
part of those proceedings. The Company was not a party to any such
proceedings during the year.
Non-audit services
The directors are satisfied that the provision of non-audit services during the
year by the auditor (or by another person or firm on the auditor’s behalf) is
compatible with the general standards of independence for auditors imposed
by the Corporations Act 2001.
Auditor independence declaration
The auditor’s independence declaration for the year ended 30 June 2021 has
been received and is included in this report.
5
Directors’ Report
Remuneration Report – Audited
This remuneration report, which forms part of the Directors’ report, sets out information about the remuneration of the Group’s directors and other key
management personnel for the financial year ended 30 June 2021. The prescribed details for each person covered by this report are detailed below.
Details of Directors and other Key Management Personnel
Directors and other key management personnel of the Group during and since the end of the financial year are as follows:
Directors
J Chirnside (appointed 18 June 2015)
L Robinson (appointed 18 June 2015)
D Clarke (appointed 14 March 2018, resigned 29 September 2021)
C Swensson (appointed 15 July 2021)
Remuneration philosophy
The Board of Directors of Dart Mining NL is responsible for determining and reviewing compensation arrangements for the Directors, the Managing Director
and other key management personnel after consideration is given to the recommendations of the Company’s Remuneration and Nomination Committee. The
Remuneration and Nomination Committee’s policy is to ensure that a remuneration package properly reflects the person’s duties and responsibilities, with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executive team. The Board of the Company reviews
and adopts or amend the recommendations of the Remuneration and Nomination Committee as proposed. The officers of the Company are given the opportunity
to receive their base emolument in a variety of forms, including cash, fringe benefits such as motor vehicles and incentive rights. It is intended that the manner
of payment chosen will be optimal for the recipient without creating undue cost to the Group.
To assist in achieving these objectives, the Board’s objective is to link the nature and amount of Directors and other key management personnel emoluments to
the Company’s financial and operational performance. It is the Board’s policy that employment contracts are entered into with all senior executives. At the date
of this report, executive remuneration is set at levels approved by the Board.
Remuneration, Group performance and shareholder wealth
The development of remuneration policies and structure are considered in relation to the effect on Group performance and shareholder wealth. They are designed
by the Board to align Director and Executive behaviour with improving Group performance and ultimately shareholder wealth.
The performance of the consolidated entity for five years to 30 June 2021 are summarised below:
2019
(893,381)
2020
(552,450)
2021
(790,839)
Year Ended 30 June
Loss attributable to owners of the
company
The factors that are considered to affect total shareholders return (“TSR”) are summarised below:
2019
0.08
Nil
(2)
Year Ended 30 June
Share’s Price in cents
Dividends Declared
EPS in cents
2021
0.14
Nil
(1)
2020
0.11
Nil
(1)
2018
(2,453,665)
2017
(715,393)
2018
0.16
Nil
(8.8)
2017
0.088
Nil
(4.2)
Non-executive director remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain directors of the highest calibre at a
cost that is acceptable to shareholders
Structure
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of Non-executive Directors shall be determined from time to time by a
general meeting of the Company’s shareholders. An amount not exceeding the sum determined is then divided between the directors as agreed whilst
maintaining a surplus amount that can be attributed to additional Non-executive Directors should they be appointed at any time. The latest determination was
sought and granted at the Company’s AGM on 2 October 2012 whereby shareholders approved an aggregate remuneration of $475,000 per year. The amount
of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually. The Board
considers advice from external consultants as well as the fees paid to Non-executive Directors of comparable companies when undertaking the annual review
process. Each Non-executive Director receives a fee for being a Director of the Group. Directors who are called upon to perform extra services beyond the
Director’s ordinary duties or who are members of Board Committees may be paid additional fees for those services.
The remuneration of Non-executive Directors for the financial year ended 30 June 2021 is detailed in this report. The Board has implemented these guaranteed
levels of remuneration which are not dependent on performance in order to ensure the Group’s ability to retain quality personnel. Employment Agreements are
entered into with Executive Directors and specified executives.
6
Directors’ Report
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive and executive director remuneration is separate and distinct.
Senior executive remuneration
Objective
The Board aims to reward Executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company and
so as to:
• reward Executives for Company, business unit and individual performance against targets set by reference to appropriate benchmarks;
• align the interests of Executives with those of shareholders;
• link reward with the strategic goals and performance of the Company; and
• ensure total remuneration is competitive by market standards.
Structure
In determining the level and make-up of executive remuneration, the Board obtained independent advice from external consultants
on market levels of remuneration for comparable executive roles. It is the Board’s policy that employment contracts are entered into with all senior executives.
Service contracts
Service contracts were entered into with Executive Directors and Specified Executives.
Managing Director
The terms of an employment agreement with the MD, James Chirnside, issued on 19 June 2015 include inter alia:
• A fixed remuneration package of $150,000 plus superannuation per annum, and director’s fees of $30,000 plus Superannuation whilst engaged as a
director of Dart Mining NL.
Other Key Management Personnel
All other KMP have rolling contracts with standard termination provisions as follows:
Resignation
1 - 3 months
1 - 3 months
Unvested awards forfeited
Notice
period
Payment in
lieu of notice
Treatment of STI on termination
Termination for cause
1 month
1 month
Unvested awards forfeited. Claw back of deferred STI payments at
the Board’s discretion
Termination in cases of disablement,
redundancy or notice without cause
3 months
3 months
Claw back of deferred STI payments at the Board’s discretion
Remuneration Summary
Short term benefits
Salaries,
fees and
leave
$
2021
Executive Directors
James Chirnside
171,000
Non-executive Directors
Current
Denis Clarke
Luke Robinson
28,500
28,500
228,000
Cash
bonus
Non-
monetary
benefits
$
-
-
-
-
$
-
-
-
-
Post-employment
benefits
Superannuation
Share-
based
payments
Options/
Incentive
rights
Termination
payments
Total
Percentage of
share-based
payments
$
$
$
$
%
16,245
153,609
-
340,854
45.07%
2,707
2,708
21,660
-
26,484
180,093
-
-
-
31,207
57,692
429,753
0.00%
45.9%
41.9%
7
Director’s Report
Short term benefits
Salaries,
fees and
leave
$
2020
Executive Directors
James Chirnside
144,136
Non-executive Directors
Current
Denis Clarke
Luke Robinson
Employee options
24,023
24,023
-
192,182
Cash
bonus
Non-
monetary
benefits
$
-
-
-
-
$
-
-
-
-
Post-employment
benefits
Superannuation
Share-
based
payments
Options/
Incentive
rights
Termination
payments
Total
Percentage of
share-based
payments
$
$
$
$
%
13,693
117,500
-
275,329
42.67%
2,282
2,282
-
-
18,257
117,500
-
-
-
26,305
26,305
327,939
0.00%
0.00%
35.83%
The following table summarises the value of remuneration options and incentive rights granted, exercised or lapsed during the year:
Grantee
Number
Grant date
Expiry date
J Chirnside
J Chirnside
1,250,000
1,250,000
6 Dec 2019
5 May 2022
6 Dec 2019
28 March 2022
Exercise price
(cents)
Fair value at
grant date
(cents)
Vesting date
30
40
5.2
4.2
6 Dec 2019
6 Dec 2019
These options and incentive rights are not quoted, not transferrable and may be exercised at any time after vesting date.
Performance Rights
The terms and conditions of each grant of performance rights during the year affecting remuneration in the current or a future period with respect to Key
Management Personnel are shown in the table below.
Executive
Grant date
Number
Expiry
date
Vesting
Date
Exercise
price
Fair value
Performance condition
J Chirnside
J Chirnside
J Chirnside
J Chirnside
L Robinson
L Robinson
L Robinson
L Robinson
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
725,000
725,000
725,000
725,000
125,000
125,000
125,000
125,000
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
31/12/20
31/12/21
15/9/23
31/12/23
31/12/20
31/12/21
15/9/23
31/12/23
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$nil
$0.18
$0.18
$0.10
$0.18
$0.18
$0.18
$0.10
$0.18
2000 metres of drilling before 31/12/2020
8000 metres of drilling before 31/12/2021
60 cent share price for 15 days prior to 15/09/2023
30,000 metres of drilling before 31/12/2023
2000 metres of drilling before 31/12/2020
8000 metres of drilling before 31/12/2021
60 cent share price for 15 days prior to 15/09/2023
30,000 metres of drilling before 31/12/2023
8
Directors’ Declaration
This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.
_____________________
James Chirnside
Chairman
_____________________
Luke Robinson
Director
Melbourne
30 September 2021
9
Corporate Governance Statement
The Board of Directors of Dart Mining NL (the Company) is responsible for establishing the corporate governance framework of the Group having regard to the
ASX Corporate Governance Council (CGC) published guidelines as well as its corporate governance principles and recommendations. The Board guides and
monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable.
The Company’s corporate governance statement for 2021 is located on the Company’s website at www.dartmining.com.au – about us – Corporate Policy.
10
11
AUDITOR’S INDEPENDENCE DECLARATIONUNDER SECTION 307C OF THE CORPORATIONS ACT 2001TO THE DIRECTORS OF DART MINING NLI declare that, to the best of my knowledge and belief, during the year ended 30 June 2021 there have been:(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 inrelation to the audit; and(ii) no contraventions of any applicable code of professional conduct in relation to the audit. MORROWS AUDIT PTY LTD I.L JENKINSDirector Melbourne: 30 September 2021 Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the financial year ended 30 June 2021
Continuing operations
Revenue
Cost of sales
Consultancy fees
Professional fees
Employee benefits expense
Share based payments
Depreciation and amortisation expense
Office expenses
Finance expenses
Administrative expenses
Travel related expenses
Loss on sale of assets
Expenses
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) for the year
Other comprehensive income
Other comprehensive income for the year
Total comprehensive income for the year
Attributable to:
Net profit/(loss) attributable to
Members of the parent entity
Non-controlling interests
Total comprehensive income
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents)
Diluted earnings per share (cents)
The accompanying notes form part of these financial statements
Consolidated Group
2021
$
2020
$
29,414
(17,599)
(15,355)
(137,676)
(150,435)
(180,093)
(11,025)
(21,941)
(3,493)
(273,066)
(3,419)
(6,151)
(820,253)
(790,839)
-
23,556
(11,269)
(28,311)
(84,500)
(99,188)
(117,500)
(10,121)
(25,300)
(3,284)
(183,434)
(13,099)
-
(576,006)
(552,450)
-
(790,839)
(552,450)
-
-
(790,839)
(552,450)
(790,839)
(552,450)
-
-
(790,839)
(552,450)
(0.9)
(0.7)
(1)
(1)
Note
4
5
6
9
9
12
Consolidated Statement of Financial Position
As at 30 June 2021
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Deferred exploration and evaluation costs
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
The accompanying notes form part of these financial statements
Consolidated
30 June 2021
Note
$
30 June 2020
$
10
11
15
13
15
14
16
17
17
18
27
1,099,385
75,407
47,751
1,222,543
2,102,811
106,270
12,406,739
14,615,820
15,838,363
707,103
111,503
818,606
15,502
15,502
834,108
890,086
22,740
26,709
939,535
695,552
106,175
9,475,144
10,276,871
11,216,406
232,292
83,774
316,066
10,218
10,218
326,284
15,004,255
10,890,122
30,521,503
467,093
(15,984,341)
15,004,255
25,891,124
192,500
(15,193,502)
10,890,122
13
Consolidated Statement of Changes in Equity
For the financial year ended 30 June 2021
Consolidated
Balance at 1 July 2019
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
Ordinary share
capital
Option reserve
Accumulated
losses
$
$
$
Total
$
23,919,997
75,000
(14,641,052)
9,353,945
-
-
-
-
-
2,068,000
(96,873)
1,971,127
-
-
-
(552,450)
(552,450)
-
-
(552,450)
(552,450)
117,500
-
-
-
117,500
-
-
-
-
-
117,500
-
2,068,000
(96,873)
2,088,627
Balance at 30 June 2020
25,891,124
192,500
(15,193,502)
10,890,122
Balance at 1 July 2020
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
25,891,124
192,500
(15,193,502)
10,890,122
-
-
-
-
-
4,997,274
(366,895)
4,630,379
-
-
-
274,593
-
-
-
274,593
(790,839)
(790,839)
(790,839)
(790,839)
-
-
-
-
-
274,593
-
4,997,274
(366,895)
4,904,972
Balance at 30 June 2021
30,521,503
467,093
(15,984,341)
15,004,255
The accompanying notes form part of these financial statements
14
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from sale of vegetation credits
Government and other rebates
Interest received
Interest paid
Payments to suppliers and employees
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Payments for exploration costs
Purchase of land and improvements
Purchases of property, plant and equipment
Disposal of property, plant and equipment
Security deposits refunded (held)
Note
Consolidated
2021
$
2020
$
2,082.25
22a
-
28,969
371
(3,493)
(670,509)
(644,662)
(2,372,652)
(19,881)
(1,541,771)
66,627
59
6,416
16,047
1,118
(1,547)
(384,864)
(362,830)
(923,551)
(51,236)
(79,669)
2,000
(795)
Net cash provided by/(used) in investing activities
(3,867,618)
(1,053,251)
Cash flows from financing activities
Proceeds from issue of ordinary shares
Payment of share issue costs
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Cash and cash equivalent at the beginning of the financial year
Cash and cash equivalent at the end of the financial year
10
The accompanying notes form part of these financial statements
4,997,274
(275,695)
4,721,579
209,299
890,086
1,099,385
2,068,000
(93,573)
1,974,427
558,346
331,740
890,086
15
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 1 Corporate information
The consolidated financial statements of Dart Mining NL and its subsidiaries (collectively, the Group) for the year ended 30 June 2021 were authorised for issue
in accordance with a resolution of the Directors on 30 September 2021.
Dart Mining NL (the Company or the parent) is a for profit company limited by shares incorporated in Australia whose shares are publicly traded on the Australian
Stock Exchange.
Note 2 Summary of significant accounting policies
Basis of preparation
These financial statements are general-purpose financial statements which have been prepared in accordance with the Australian Accounting Standards,
Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001
Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial statements
containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the
financial statements and notes also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified where applicable
by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
(a) Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Dart Mining NL at the end of the reporting period.
A controlled entity is any entity over which Dart Mining NL has the ability and right to govern the financial and operating policies so as to obtain benefits from
the entity’s activities.
The result of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date
of acquisition or up to the effective date of disposal, as appropriate. A list of controlled entities is contained in Note 12 to the financial statements.
In preparing the consolidated financial statements, all intra-group balances and transactions between entities in the consolidated group have been eliminated in
full.
(b) Income tax
The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense/ (income).
Current income tax expense charged to profit or loss is the tax payable on taxable income. (Current tax liabilities)/assets are measured at the amounts expected
to be paid to/ (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax assets and deferred tax liability balances during the year and unused tax losses.
The nature of the operations and principal activities of the Group are described in the Directors’ Report. Information on the Group’s structure is provided in
Note 12. Information on other related party relationships is provided in Note 25.
Current and deferred income tax expense/ (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit
or loss.
Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on accounting
or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Their
measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to
non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax
liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be
available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not
recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable
future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where : (a) a legally enforceable right of offset exists;
and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in
which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
16
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
(c) Property, plant and equipment
i)
Items of property, plant and equipment are initially recorded at cost net of GST and depreciated as outlined below.
Acquisition
ii) Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight‐line basis at rates based upon the expected useful lives of these assets. The useful lives of
these assets are detailed in Note 13 of the financial statements.
iii) Disposal
The gain or loss arising on disposal or retirement of property, plant or equipment is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in profit and loss.
iv) Subsequent measurement
Property, plant and equipment are subsequently measured at amortised cost. Amortised cost is calculated as the amount at which the asset is measured
at initial recognition less any depreciation or impairment.
(d) Deferred exploration and evaluation
In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, exploration and evaluation expenditure incurred is accumulated in respect
of each identifiable area of interest. Other than Research and Development costs (see Note 2 (e)) these costs are only carried forward to the extent that they are
expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable
assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against operating results in the year in which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of
the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration
costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with
the clauses of the mining permits. Such costs are determined using estimates of future costs, current legal requirements and technology on an undiscounted
basis.
Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration there is uncertainty regarding
the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs are determined on the basis that restoration
will be completed within one year of abandoning a site.
(e) Research and development costs
Research costs relating to the development of exploration models are expensed as incurred.
(f) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this
is the date that the Group commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair
value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are
used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical
expedient was applied as specified in AASB 15.63.
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at:
-
-
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
-
-
-
a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the
relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated
future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
17
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
A financial liability is held for trading if:
-
-
it is incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship are
recognised in profit or loss.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
-
-
-
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
-
-
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
-
-
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
-
-
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount
outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are
subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
-
-
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”) that would otherwise
arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately,
so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated
consistently on a fair value basis;
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable
until the financial asset is derecognised.
Impairment
At the end of each reporting year the Group assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of
financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having
occurred, which has an impact on the estimated future cash flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event.
Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income
is reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant
financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and
changes in arrears or economic conditions that correlate with defaults.
For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial
assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered
by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly
if no impairment amount was previously recognised in the allowance account.
When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Group recognises the impairment for such
financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.
De-recognition
Financial assets are de-recognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no
longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are de-recognised when the related
obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another
party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in the statement of comprehensive
income or profit or loss.
18
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
(g) Impairment of assets
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly controlled entities deemed to
be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset,
being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its
recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in
accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation
decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use.
(h) Leases
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease
liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate
implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and
by reducing the carrying amount to reflect the lease payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less
any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset
to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a
right-of-use asset, the costs are included in the related rightof-use asset, unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful
life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated statement of financial position.
The Group did not have a right-of-use asset and a corresponding lease liability during the periods presented.
(i) Employee benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee
benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled.
Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In
determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy any vesting requirements. These
cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable
to employee benefits.
(j) Provisions
Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic
benefits will result and that outflow can be reliably measured.
(k) Cash and cash equivalents
Cash and cash equivalents include deposits available on demand with banks.
(l) Issued capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Company.
Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction of the proceeds of the equity instrument to which
the costs relate. Transaction costs are costs that are incurred directly in connection with the issue of those equity instruments and which would not have been
incurred had those instruments not been issued.
19
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
(m) Share-based payments
The Group measures the cost of equity-settled transactions with employees and consultants by reference to the fair value of the equity instruments at the date at
which they are granted. The fair value is determined by using the Black-Scholes model, using the assumptions detailed in Note 23.
The fair value determined at the grant date of the equity settled share based payment is expensed on a straight-line basis over the vesting period, based on
(i)
the directors’ estimate of shares that will eventually vest.
(ii) Equity-settled share based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair
value cannot be estimated reliably, in which these are measured at the fair value of the equity instruments granted at the date the entity obtains the goods or the
counterparty renders the service.
(n) Going concern basis
The Group is involved in the exploration and evaluation of mineral tenements and as such expects to be cash absorbing until these tenements demonstrate that
they contain economically recoverable reserves.
As at 30 June 2021, the Group had a surplus of current assets over current liabilities of $403,937 (2020: $623,469) including cash reserves of $1,099,385 (2020:
$890,086).
For the year ended 30 June 2021, the Group reported net cash outflows from operations and investing activities of $644,662 (2020: $362,830) and $3,867,618
(2020: $1,053,251) respectively. These cash outflows were offset by net cash inflows from financing activities of $4,721,579 (2020: $1,974,427) resulting in
total cash inflows/ (outflows) for the year of $209,299 (2020: $558,346).
The financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of
assets and settlement of liabilities in the ordinary course of business.
The ability of the Group to continue as a going concern for the twelve months from the date of this report is dependent on its ability to control its overhead
costs and exploration expenditures and to generate additional funds from activities including:
-
-
-
other future equity or debt fund raisings;
the potential farm-out of participating interests in the Group’s tenements; and
successful development of existing tenements.
Having carefully assessed the likelihood of securing additional funding or entering into farm-out arrangements including the funds raised subsequent to the
balance date and the Group’s ability to effectively manage their expenditures and cash flows from operations, the directors believe that the Group will continue
to operate as a going concern for the foreseeable future and therefore it is appropriate to prepare the financial statements on a going concern basis.
(o) Revenue and other income
The Company recognises revenue on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration
the Company expects to receive in exchange for those goods or services.
Revenue is recognised by applying a five-step model as follows:
1. Identify the contract with the customer
2. Identify the performance obligations
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations
5. Recognise revenue as and when control of the performance obligations is transferred
Interest is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
(p) Trade and other receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected
to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any
provision for impairment. Refer to Note 2(g) for further discussion on the determination of impairment losses.
(q) Trade and other payables
Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance
is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
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 ATO
is included with other receivables or payables in the statement of financial position.
20
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
(r) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian
Taxation Office (ATO).
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 ATO
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 ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.
(s) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an additional
(third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statement is presented.
(t) Critical accounting judgements and sources of estimations
In applying the Group’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and
liabilities. These estimates and assumptions are made based on past experience and other factors that are considered relevant. Actual results may differ from
these estimates. All estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects both current and future periods.
The following describes critical judgements that management has made in the process of applying the Group’s accounting policies and that have the most
significant effect on the amounts recognised in the financial statements:
Impairment of deferred exploration costs
The Group’s accounting policy for exploration expenditure results in some items being capitalised for an area of interest where it is considered likely to be
recoverable in the future or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Management is
required to make certain estimates and assumptions as to future events and circumstances which may change as new information becomes available. If a
judgement is made that recovery of a capitalised expenditure is unlikely, the relevant amount will be written off to the income statement.
(u) New Accounting Standards for Application in Future Periods
Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the potential impact of such
pronouncements on the Group when adopted in future periods, are discussed below:
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
The amendments address a current inconsistency between AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint
Ventures. The amendments clarify that, on a sale or contribution of assets to a joint venture or associate or on a loss of control when joint control or significant
influence is retained in a transaction involving an associate or a joint venture, any gain or loss recognised will depend on whether the assets or subsidiary
constitute a business, as defined in AASB 3 Business Combinations. Full gain or loss is recognised when the assets or subsidiary constitute a business, whereas
gain or loss attributable to other investors’ interests is recognised when the assets or subsidiary do not constitute a business. This amendment effectively
introduces an exception to the general requirement in AASB 10 to recognise full gain or loss on the loss of control over a subsidiary. The exception only applies
to the loss of control over a subsidiary that does not contain a business, if the loss of control is the result of a transaction involving an associate or a joint venture
that is accounted for using the equity method. Corresponding amendments have also been made to AASB 128.
When these amendments are first adopted for the year ending 30 June 2023, there is not expected to be a material impact on the financial statements.
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as current or Non-current
AASB 2020-1 makes amendments to AASB 101 Presentation of Financial Statements to clarify requirements for the presentation of liabilities in the statement
of financial position as current or noncurrent. A liability is classified as current if the entity has no right at the end of the reporting period to defer settlement
for the liability for at least 12 months after the reporting period. The AASB recently issued amendments at AASB 101 to clarify the requirements for classifying
liabilities as current. Specifically:
clarifying that the classification of a liability as either current or non-current is based on the entity’s rights at the end of the reporting period;
stating that management’s expectations around whether they will defer settlement or not does not impact the classification of the liability;
adding guidance about lending conditions and how these can impact classification; and
including requirements for liabilities that can be settled using an entity’s own instruments.
When these amendments are first adopted for the year ending 30 June 2023, there is not expected to be a material impact on the financial statements.
21
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 3 Parent information
Statement of Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Statement of Profit or Loss and Other Comprehensive Income
Total profit/(loss)*
Total comprehensive income/(loss)
Consolidated
2021
$
2020
$
1,222,543
7,419,300
8,641,843
818,606
15,502
834,118
939,383
3,080,694
4,020,077
316,267
10,218
326,485
7,807,725
3,693,592
30,521,503
467,093
(23,180,871)
7,807,725
25,891,124
192,500
(22,390,032)
3,693,592
(790,839)
(790,839)
(552,450)
(552,450)
*Dart Mining NL (the parent entity) recognized a loan owing from Mount Unicorn Holdings Pty Ltd, wholly owned subsidiary, and subsequently impaired the loan.
This loan impairment has no impact on the consolidated loss for the Group.
Note 4 Revenue and other income
Revenue from continuing operations
Other revenue
- Interest received
- Vegetation Offset income
- Government grant and other rebates
Note 5 Profit/(loss) for the year
Profit/(loss) before income tax from operations include the following expenses
Exploration expenses written off
Depreciation
445
-
28,969
29,414
11,025
1,093
6,416
16,047
23,556
-
10,121
22
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 6 Tax expense
(a) The prima facie tax on profit from ordinary activities before income tax is reconciled to the
income tax expense
Profit/(loss) from continuing operations
Income tax expense (benefit) calculated at 26% (2020: 27.5%)
Effect of non-deductible expenses
Effect of deductible temporary differences
Effect of unused tax losses and tax offsets not recognised as deferred tax assets
Utilisation of tax losses brought forward
Income tax expense
(b) Tax losses not brought to account
Tax losses brought forward
Current year tax losses
Utilisation of tax losses brought forward
Effect of changed income tax rate
Recognition of tax losses – correction prior years
Tax losses carried forward
Note 7 Key management personnel compensation
Total remunerations paid to KMP of the Company and the Group during the year are as follows :
Short-term employee benefits
Post-employment benefits
Share-based payments
Total KMP compensation
Consolidated
2021
$
2020
$
(790,839)
(205,618)
92,674
(828,692)
941,636
-
-
5,738,006
941,636
-
(312,982)
55,368
6,422,028
228,000
21,660
180,093
429,753
(552,450)
(151,924)
73,478
(312,892)
391,338
-
-
5,318,060
391,338
-
-
28,608
5,738,006
192,182
18,257
117,500
327,939
KMP options and rights holdings
There were 3,400,000 incentive right issued to KMP of the group during the financial year as an incentive or as compensation (2020: 2,500,000 options issued).
The number of options and incentive rights over ordinary shares held during the financial year by each KMP of the Group is as follows:
Balance at
beginning of year
Incentive rights
granted as
r e muneration during
the year
Unlisted Incentive
rights exercised,
lapsed or excluded
during the year
Net other
changes1
Balance at
end of year
2020
J Chirnside
L Robinson
2,500,000
-
2,500,000
2,900,000
500,000
3,400,000
-
-
-
-
-
-
5,400,000
500,000
5,900,000
23
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 8 Auditor’s remuneration
Amounts received or due and receivable by Morrows Audit Pty Ltd for:
Audit or review of the financial statements of the Group
Note 9 Earnings per share
(a) Reconciliation of earnings to profit and loss
Net profit/(loss) for the year
Earnings/(loss) used to calculate basic EPS
(b) Weighted average number of ordinary shares outstanding during the year used in the calculation of
basic EPS
Weighted average number of ordinary shares outstanding during the year used in the calculation of
diluted EPS
Basic earnings per share (cents)
Diluted earnings per share (cents)
Consolidated
2021
$
2020
$
29,000
28,400
(790,839)
(790,839)
(552,450)
(552,450)
92,459,775
55,954,521
113,748,492
59,875,559
(0.9)
(0.7)
(1)
(1)
Diluted earnings per share is calculated after classifying all options on issue remaining unconverted at 30 June 2021 as potential ordinary shares. At 30 June
2021, the Company had on issue 38,956,369 (2019: 9,070,000) options and performance rights over unissued capital and had incurred a net loss.
Note 10 Cash and cash equivalent
Cash at bank and on hand
Note 11 Trade and other receivables
Accrued interest – other persons/corporations
GST receivable
1,099,385
1,099,385
890,086
890,086
48
75,359
75,407
128
22,612
22,740
No receivable amounts were past due or impaired at 30 June 2021 (2020: Nil)
Credit risk
The Group has no significant concentration of credit risk with respect to any single counter party or group of counter-parties other than those receivables
specifically provided for and mentioned within Note 11. The class of assets described as Trade and Other Receivables is considered to be the main source of
credit risk related to the Group.
Note 12 Controlled entities
Dart Resources Pty Ltd
Mt Unicorn Holdings Pty Ltd
Mt View Holdings Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Percentage owned (%)
2021
100%
100%
100%
2020
100%
100%
100%
For each of the controlled entities that the place of business is the same as the place of incorporation. The activities of these entities are not material to the
Group. There are no significant restrictions on the Group’s or its controlled entities ability to access or use the assets and settle the liabilities of the Group nor
are there restrictions on ownership changes to these entities.
24
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 13 Property, plant and equipment
Consolidated
2021
$
2020
$
Plant and equipment
At cost
Accumulated depreciation
Computer equipment & software
At cost
Accumulated depreciation
Motor vehicles
At cost
Accumulated depreciation
Freehold land and Improvements
At cost
Accumulated depreciation
Total property, plant and equipment
1,279,803
(192,464)
1,087,339
130,504
(99,877)
30,627
887,834
(235,890)
651,944
333,314
(413)
332,901
2,102,811
Plant &
equipment
Computer
equipment &
software
Motor vehicles Freehold Land
and
improvements
243,397
(120,577)
122,820
96,331
(86,354)
9,977
421,213
(171,892)
249,321
313,434
-
313,434
695,552
Total
Consolidated
Balance at 1 July 2020
Additions
Disposals
Depreciation expense
Depreciation expense capitalised as deferred exploration
Reversal of accumulated depreciation on disposal
Balance at 30 June 2021
$
122,820
1,040,951
(4,545)
(469)
(71,418)
-
1,087,339
$
9,977
34,173
-
(10,142)
(3,381)
-
30,627
$
$
$
249,321
528,703
(62,082)
-
(74,115)
10,117
651,944
313,434
695,552
19,881
1,623,708
-
(414)
-
-
(66,627)
(11,025)
(148,914)
10,117
332,901
2,102,811
Plant &
equipment
Computer
equipment &
software
Motor vehicles Freehold Land
and
improvements
Consolidated
Balance at 1 July 2019
Additions
Disposals
Depreciation expense
Depreciation expense capitalised as deferred exploration
expenditure
Reversal of accumulated depreciation on disposal
Balance at 30 June 2020
$
110,897
29,027
(2,000)
(966)
(14,624)
486
122,820
$
20,377
2,454
-
(9,641)
(3,213)
-
9,977
$
260,425
33,206
-
-
(44,310)
-
$
262,198
51,236
-
-
-
-
Total
$
653,897
115,923
(2,000)
(10,607)
(61,147)
486
249,321
313,434
695,552
25
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
The following useful lives are used in the calculation of depreciation:
Plant and equipment
Computer equipment & software
Motor vehicles
3 – 6 years
3 – 4 years
4 – 5 years
Note 14 Deferred exploration and evaluation
Balance at beginning of financial year
Current year expenditure capitalised – mining exploration
Exploration costs written-off
Balance at end of financial year
Comprising:
Consolidated
2021
$
9,475,144
2,931,595
-
2020
$
8,536,188
938,956
-
12,406,739
9,475,144
-
Deferred mining exploration expenditure
12,406,739
9,475,144
Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of Pre‐feasibility Studies, exploration and evaluation or
sale or farm‐out of the exploration interests. A percentage of the CEO’s salary and associated costs are capitalised in line with the Company’s policy for
capitalising costs directly relating to pre‐feasibility and exploration. Namely, the Company has four cost centres, Corporate, Pre‐feasibility, Research and
Development and Exploration. Where identifiable, costs associated with the Pre‐feasibility and Exploration cost centres are capitalised. These costs are
annually reviewed for impairment and a charge is made direct to the Income Statement of the Company when an impairment is identified. The Company
still intends to continue activity on the remaining tenements under its control.
Note 15 Other assets
CURRENT
Prepayments
NON-CURRENT
Bond security for exploration tenement licences
Bond security for company credit cards
Loan receivable
Rental property bonds
Note 16 Trade and other payables
CURRENT
Trade payables
Sundry payables
Terms and conditions relating to the above financial instruments:
Trade creditors are non-interest bearing and are usually settled on 30 day terms.
(i)
(ii) Other creditors are non-interest bearing and have an average term of 30 days.
Consolidated
2021
$
47,751
47,751
99,710
5,000
-
1,560
106,270
Consolidated
2021
$
417,200
289,903
707,103
2020
$
26,709
26,709
89,556
5,000
10,750
869
106,175
2020
$
152,877
79,415
232,292
26
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 17 Provisions
CURRENT
Short term employee benefits – annual leave
NON-CURRENT
Employee benefits – long service leave
Note 18 Issued capital
Ordinary shares
Consolidated
Balance at the beginning of the financial year
Shares issued as consideration for tenements
Private placement (October 2019)
1 for 20 share consolidation
Private placement at $0.10 (January 2020)
Private placement at $0.05 (April 2020)
Private placement at $0.05 (May 2020)
Private placement at $085 (10,800,000 shares issued 1 July 20200
Rights issue at $0.20 (August 2020)
Rights Issue shortfall Placement at $0.20 (November 2021)
Less transaction costs arising from issue of shares
Balance at end of financial year
Consolidated
2021
$
2020
$
111,503
83,774
15,503
127,006
10,218
93,992
2021
No
$
2020
No
$
74,959,107
25,891,124
1,011,376,136
23,919,997
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,780,808
12,205,561
2,556,162
2,441,112
(366,895)
6,000,000
53,000,00
0
(1,016,857,029)
79)
5,400,000
4,240,000
1,000,000
10,800,00
0
-
-
-
30,000
318,000
-
540,000
212,000
50,000
918,000
-
-
(96,873)
99,945,476
$30,521,503
74,959,107
25,891,124
Terms and conditions of contributed equity
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale of
all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy,
at a meeting of the Company.
The issued capital of the Company quoted on the ASX comprises 99,945,476 ordinary shares (2020: 74,959,107).
Unlisted options
Consolidated
Balance at the beginning of the financial year
Options issued to J Chirnside (December 2019)
Options issued under share placement (January 2020)
Options issued under share placement (June 2020)
Options issued under right issue (August 2020)
Options issued under right issue shortfall (November 2020)
Options issued for services (November 2020)
Options issued for services (December 2020)
Options expired on 30 June 2021
Balance at end of financial year
2021
2020
No
9,070,000
-
-
-
12,780,808
12,205,561
500,000
1,000,000
(2,700,000)
32,856,369
No*
1,250,000
2,500,000
2,700,000
2,620,000
-
-
-
-
-
9,070,000
27
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
At the end of the financial year, there were 32,856,369 (2020: 9,070,000) unlisted options on issue
Securities
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Expiry date
Number
Exercise price
(cents)
Escrow period
28 March 2022
5 May 2022
5 May 2022
30 June 2022
30 June 2022
1,250,000
1,250,000
1,250,000
2,620,000
26,486,369
40
30
40
8
30
-
-
-
-
-
Performance Rights
At the end of the financial year, there were 3,400,000 (2020: nil) performance rights on issue
Grant date
Number
Expiry date
Vesting Date Exercise price
Performance condition
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
Balance at end of financial year
850,000
850,000
850,000
850,000
3,400,000
Note 19 Expenditure commitments
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
31/12/20
31/12/21
15/9/23
31/12/23
$nil
$nil
$nil
$nil
2000 metres of drilling before 31/12/2020
8000 metres drilling before 31/12/2021
60 cent share price for 15 days prior to 15/09/2023
30,000 metres drilling before 31/12/2023
Exploration expenditure
Under the terms of the exploration tenement licences, the Group has a commitment to meet a minimum expenditure requirement in order to keep its rights current.
The minimum expenditure requirement is not recognised as a liability in the Statement of Financial Position of the Group as the Group may relinquish its rights
to a particular tenement thereby removing the requirement to meet the minimum expenditure requirement.
Not longer than 1 year
Between 1 and 5 years
Longer than 5 years
Operating leases
The Group has a commercial lease on a property, this lease expires in six months.
Note 20 Contingent liabilities and contingent assets
Consolidated
2021
$
1,468,487
8,899,739
19,643,585
30,011,811
2020
$
315,017
308,260
-
623,277
The company establishes an accrued liability for claims when it determines that a loss is probable and the amount of the loss can be reasonably
estimated. Accruals will be adjusted from time to time, as appropriate, in the light of additional information.
Under tenement licence conditions in Victoria the Group is required to rehabilitate each licence area to its original state subsequent to any exploration work.
Rehabilitation costs are estimated not to exceed $81,000 (2020: $60,000)
The Company and a wholly-owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and its subsidiary
guarantee the debts of each other.
No contingent assets existed at the reporting date.
28
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 21 Operating segments
The Group’s activities consist of base metal and gold exploration currently in one geographic region of north-east Victoria. There are no other significant classes
of business, either singularly or in aggregate. Internal monthly management reports are provided to the Group’s Directors that consolidate operations in one
segment. Therefore, the Group’s activities are classed as one business segment and as a result operating and financial information are not separately disclosed in
this note.
Note 22 Cash-flow information
a) Reconciliation of cash flow from operations with profit after income tax
Profit/(loss) after income tax
Non- cash flows in profit/(loss)
Depreciation
Share based payments
Loss on sale of assets
Changes in assets and liabilities
(Increase)/Decrease in receivables
(Increase)/Decrease in other assets
Increase/(Decrease) in trade payables and accruals
Increase/(Decrease) in provisions
Cash flow from operations
b) Reconciliation of cash
Cash balance comprises:
Cash on hand and at call
c)
Financing facility
The Group has no available finance facilities at balance date.
d) Non-cash financing and investing activities
There were no non-cash financing or investing activities during the financial year.
Note 23 Share-based payments
Executive options
Share-based options granted during or held at the end of the current reporting year.
Grantee
Number
Grant date
Expiry date
J Chirnside
J Chirnside
1,250,000
1,250,000
6 Dec 2019
6 Dec 2019
5 May 2022
5 May 2022
Consolidated
2021
$
2020
$
(790,839)
(552,450)
11,025
180,093
6,151
(52,821)
(500)
(1,505)
3,734
644,662
10,121
117,500
24,237
(5,132)
39,905
2,989
(362,830)
1,099,386
1,099,386
890,086
890,086
Exercise price
(cents)
Fair value at
grant date
(cents)
Vesting date
30
40
5.2
4.2
6 Dec 2019
6 Dec 2019
29
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Executive Performance Rights
Share-based rights granted during or held at the end of the current reporting year.
Executive
Number
Grant date
Expiry
date
Exercise
price
J Chirnside
J Chirnside
J Chirnside
J Chirnside
L Robinson
L Robinson
L Robinson
L Robinson
725,000
725,000
725,000
725,000
125,000
125,000
125,000
125,000
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2021
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
11 Feb 2024
nil
nil
nil
nil
nil
nil
nil
nil
Fair value at
grant date
(cents)
18
18
10
18
18
18
10
18
Performance condition
2000 metres of drilling before 31/12/2020
8000 metres drilling before 31/12/2021
60 cent share price for 15 days prior to 15/09/2023
30,000 metres drilling before 31/12/2023
2000 metres drilling before 31/12/2020
8000 metres drilling before 31/12/2021
60 cent share price for 15 days prior to 15/09/2023
30,000 metres drilling before 31/12/2023
Vesting
Date
31/12/20
31/12/21
15/9/23
31/12/23
31/12/20
31/12/21
15/9/23
31/12/23
These options and incentive rights are not quoted, not transferrable and may be exercised at any time after vesting date.
Other Options
Grant date
Number
Vesting date
Expiry date
28 Mar 2019
12 Nov 2020
23 Dec 2020
1,250,000
500,000
1,000,000
28 Mar 2019
12 Nov 2020
23 Dec 2020
28 Mar 2022
30 Sept 2022
30 Sept 2022
Movements in share-based payments
2021
Exercise price
(cents)
Fair value at
grant date
(cents)
6
6.2
6.5
40
30
30
2020
Balance at beginning of year
Granted
Expired
Balance at end of year
Exercisable at end of year
Number Weighted average
exercise price
Number Weighted average
exercise price
(cents)
(cents)
3,750,000
4,900,000
-
8,650,000
8,650,000
37
9
-
21
21
1,250,000
2,500,000
-
3,750,000
3,750,000
40
35
37
37
Options are priced using a Black-Scholes model. Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for
the effects of non-transferability, exercise restrictions. Expected volatility is based on the historical share price volatility of the Company over the reporting period.
Note 24 Events after the reporting period
No matters or circumstances have arisen since the end of the financial year that have significantly affected or may have a significant effect on the financial operations
of the Group, the financial performance of those operations or the financial position of the Group in the subsequent financial year.
Note 25 Related party transactions
Key Management Personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director
(executive or otherwise) of the entity are considered Key Management Personnel (refer Note 7).
Other related parties
Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.
Transactions with related parties
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise
stated. There were no related party transactions.
30
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Note 26 Financial risk management
The Group’s financial instruments consist mainly of deposits with banks, receivables and trade and other payables.
The totals of each category of financial instruments, measured in accordance with AASB9 as detailed in the accounting policies to these financial
statements are as follows:
Financial assets
Cash and cash equivalents
Other receivables
Other non-current receivables
Total financial assets
Financial liabilities
Financial liabilities at amortised costs - trade and other payables
Total financial liabilities
Consolidated
2021
$
1,099,386
75,407
106,270
1,281,063
707,104
707,104
2020
$
890,086
22,740
106,174
1,019,000
232,292
232,292
Specific financial risk exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk and foreign
currency risk. There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies and
processes for managing or measuring the risks from the previous period.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy
of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Group’s exposure to credit risks are
continuously monitored and controlled by counterparty limits that are reviewed and approved by the management on a regular basis. The Group does not have
any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds and
derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international credit rating agencies. The carrying
amount of financial assets recorded in the financial statements, net of any allowances
for losses, represent the Group’s maximum exposure to credit risk.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework for
the management of the Group’s short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining
adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching profiles of financial assets and liabilities.
The following table details the Group’s remaining contractual maturity for its financial liabilities and financial assets
Within 1 year
1 to 5 years
Over 5 years
Total
2021
2020
2021
2020
2021
2020
2021
2020
Consolidated
Financial liabilities due for payment
Trade and other payable
707,104
232,292
Total contractual outflows
707,104
232,292
-
-
-
-
-
-
Financial assets cash flow realisable
Cash and cash equivalents
Loans and other receivables
1,099,386
890,086
-
-
106,270
106,174
Other non-interest bearing receivables
75,407
22,740
-
Total anticipated inflows
1,174,793
912,826
106,270
106,174
Net (outflow)/inflow on financial
instruments
467,689
680,534
106,270
106,174
-
-
-
-
-
-
-
-
-
-
-
-
-
-
707,104
232,292
707,104
232,292
1,099,386
890,086
106,270
106,174
75,407
22,740
1,281,063
1,019,000
573,959
786,708
31
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Market risk
Interest rate risk
The Group’s exposure to market risk primarily consist of financial risks associated with changes in interest rates as detailed below. As the level of risk is low, the
Group does not use any derivatives to hedge its exposure. Market risks are managed through cash flow forecasts and sensitivity analysis on a regular basis.
The Group is exposed to interest rate risks as it holds funds at both fixed and variable interest rates. The risk is managed through the use of cash flow forecasts
supplemented by sensitivity analysis.
The Group currently holds no amounts of borrowed funds.
Interest rate sensitivity analysis
A sensitivity analysis has been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the beginning of the
interest rate risk internally to key
financial year and held constant throughout the reporting period. A 50-basis point increase or decrease is used when reporting
management personnel and represents management’s assessment of the possible change in interest rates.
Year ended 30 June 2021
+/- 0.5% in interest rates
Year ended 30 June 2020
+/- 0.5% in interest rates
Consolidated
Profit
$
5,497
4,450
Equity
$
5,497
4,450
There have been no changes in any methods or assumptions used to prepare the above analysis from the previous year.
Fair value
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at cost less any accumulated impairments in the
statements approximates their fair values.
financial
The fair values of financial assets and financial liabilities are determined as follows:
• Holdings in unlisted shares are measured at cost less any impairments. The directors consider that no other measure could be used reliably;
• Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.
Fair value estimation
The fair value of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented in the
Statement of Financial Position. Fair value is the amount at which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in
an arm’s length transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material
impact on the
amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is
extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained
from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and
other valuation techniques commonly used by market participants.
Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being applied by
the market since their initial recognition by the Group. Most of these instruments, which are carried at amortised cost (i.e. term receivables, held-to-maturity
assets), are to be held until maturity and therefore the fair value figures calculated bear little relevance to the Group.
Financial assets
Cash and cash equivalents
Loans and other receivables
Other non-interest bearing receivables
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
2021
2020
Carrying amount
Fair value
Carrying amount
Fair value
1,099,386
106,270
75,407
1,281,063
705,647
705,647
1,099,386
106,270
75,407
1,281,063
705,647
705,647
890,086
106,175
22,740
890,086
106,175
22,740
1,019,000
1,019,000
232,292
232,292
232,292
232,292
The fair values disclosed in the above table have been determined based on the following methodologies:
Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying amount is equivalent to
fair value. Trade and other payables excludes amounts provided for annual leave, which is outside the scope of AASB9.
32
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2021
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the Statement of Financial position have been analysed and classified using a fair value hierarchy reflecting
the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:
- quoted prices in active markets for identical assets or liabilities (Level 1)
- inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)
(Level 2); and
- inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Consolidated
2021
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
2020
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
Note 27 Reserves
Level 1
$
Level 2
$
Level 3
$
Total
$
-
-
1,099,386
890,086
-
-
1,099,386
890,086
Equity - settled benefits reserve
The equity-settled benefits reserve is used to recognise the fair value options issued to Directors, employees and third parties.
Balance at beginning of financial year
Share-based payment
Share-based payments reclassified
Balance at end of financial year
Note 28 Company details
Registered office of the Company:
Level 6, 412 Collins Street,
Melbourne Victoria 3000
Principal place of business:
Unit 10, 204 Melbourne Road
Wodonga, Victoria 3690
Share Registry:
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
Phone: +61 1300 288 664
Consolidated
2021
$
192,500
274,593
-
2020
$
75,000
117,500
-
467,093
192,500
33
Directors’ Declaration
ln accordance with a resolution of the directors of Dart Mining NL, the Directors of the Company declare that:
1 the financial statements and notes, as set out on pages 12 to 33, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards which, as stated in accounting policy note 2 to the financial statements, constitutes compliance with
International Financial Reporting Standards (lFRS); and
(b) give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that date of the consolidated
group:
2 in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and
payable;
3 the directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief
Financial Officer
The Company and a wholly‐owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and
subsidiary guarantee the debts of each other.
its
At the date of this declaration, there are reasonable grounds to believe that the companies which are party to this deed of cross guarantee will be able
to meet any obligations or liabilities to which they are, or may become subject to, by virtue of the deed.
_____________________
James Chirnside
Chairman
_____________________
Luke Robinson
Director
Melbourne
Date : 30 September 2021
34
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF DART MINING NL
Report on the Financial Report
Opinion
We have audited the financial report of DART Mining NL, (the Company and its subsidiaries (the Group), which comprises the
consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance for the year
ended on that date;
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(iii) complying with International Financial Reporting Standards as disclosed in Note 2.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the
Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that
are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
35
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF DART MINING NL
Key Audit Matters (continued)
Key audit matter
How our audit addressed the key audit matter
1) Carrying value of Deferred Exploration and
Evaluation Expenditure
Refer to Note 14 ($12,406,739)
Deferred Exploration and Evaluation expenditure
of $12,406,739 relate to costs incurred in
relation to the various tenements less
impairment.
For the financial year ended 30 June 2021, the
Directors have performed an assessment for
impairment and have determined that no further
write off or impairment is required.
The auditor’s procedures included:
Evaluated the Group’s accounting policy to recognise
capitalised exploration costs using the prescribed
accounting policy disclosure;
Obtaining a copy of the Director’s assessment of the
$12,406,739 carrying value of total deferred exploration
and evaluation expenditure with a review of the assertions
made in the assessment undertaken.
Discussing with Directors the existence of any potential
impairment indicators, including if:
i.
ii.
iii.
iv.
v.
vi.
the period for which the entity has the right to
explore in the specific area has expired during
the period or will expire in the near future, and
is not expected to be renewed;
substantive expenditure on further exploration
for and evaluation of mineral resources in the
specific area is neither budgeted nor planned;
exploration for and evaluation of mineral
resources in the specific area have not led to the
discovery of commercially viable quantities of
mineral resources and the entity has decided to
discontinue such activities in the specific area;
significant changes with an adverse effect on the
entity have taken place during the period, or will
the
take place
the near
technological, market, economic or
legal
environment in which the entity operates or in
the market to which an asset is dedicated;
the carrying amount of the net assets of the
entity is more than its market capitalisation; and
evidence is available of obsolescence or physical
damage of an asset.
future,
in
in
36
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF DART MINING NL
Other Information
The directors are responsible for the other information. The other information comprises the information included in the Group’s
annual report for the year ended 30 June 2021 but does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards
Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor’s report.
37
38
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF DART MINING NL Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in included in the directors’ report for the year ended 30 June 2021. In our opinion, the Remuneration Report of DART Mining NL, for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. MORROWS AUDIT PTY LTD I.L. JENKINSDirector Melbourne: 30 September 2021 Auditor’s Report
ASX Additional Information
Additional information required by the Australian Securities Exchange Ltd Listing Rules and not disclosed elsewhere in this report is as follows. The information
is current as at 8 September 2021.
Twenty largest shareholders
Rank
Name of holder
1
2
3
4
5
6
7
8
9
10
11
12
13
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LIMITED
KNIGHT61 INVESTMENTS PTY LTD
MR P A K NAYLOR & MRS A NAYLOR
KALAN SEVEN PTY LTD
JASH PTY LIMITED
G W HOLDINGS PTY LTD
RUSSELL SIMPSON
MR SHENGPEI CHEN
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
IRSF PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
FORTUNE66 INVESTMENTS PTY LTD
CE 61 INVESTMENTS PTY LTD
MR BRUCE WILLIAM MCLENNAN
R D & K A MCGAVIN PTY LTD
SPECIALISED ALLOYS SERVICES PTY LTD
ZONIA HOLDINGS PTY LTD
MR PAUL DOMINIC FERGUSON
MR DUANE LAWRENCE HICKS
LEUCHTER ENTERPRISES PTY LTD
BLUESTAR MANAGEMENT PTY LTD
TOTAL
TOTAL ISSUED CAPITAL
No. of ordinary
shares held
Issued
Capital
%
15,557,459
15.57%
6,450,000
6.45%
4,610,000
4.61%
4,174,387
4.18%
3,333,333
3.34%
3,133,333
3.14%
2,663,785
2.67%
2,350,000
2.35%
2,246,557
2.25%
1,600,000
1.60%
1,226,211
1.23%
1,091,320
1.09%
999,000
1.00%
908,650
0.91%
856,750
0.86%
800,000
0.80%
800,000
0.80%
765,341
0.77%
750,763
0.75%
730,000
0.73%
700,000
0.70%
55,746,889
55.78%
99,945,476 100.00%
Substantial Shareholders
Substantial shareholders as advised to the Company are set out below:
Name
CITICORP NOMINEES PTY LIMITED
KNIGHT61 INVESTMENTS PTY LTD
No. of Ordinary
Shares
Percentage of
Issued Capital
15,557,459
6,450,000
15.57%
6.45%
39
Auditor’s Report
ASX Additional Information
Distribution of member holdings
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total Holders
Ordinary shares
No of holders
No of shares
488
525
235
458
120
1,846
212,944
1,508,598
1,772,110
16,121,983
80,329,841
99,945,476
The number of security investors holding less than a marketable parcel of securities is 909 with a combined total of 1,223,238 securities.
Voting Rights
All shares carry one vote per share without restriction.
Tenement schedule
Tenement
Number
Name
Tenement Type
MIN006619
Mt View 2
Mining License
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Exploration Licence
Mitta Mitta4
Rushworth4
Empress
Eskdale3
Mt Creek
Buckland
Union4
Wangara
EL5315
EL006016
EL006277
EL006300
EL006486
EL006861
EL007007
EL006994
EL007008
EL006764
EL006865
Buckland West
Exploration Licence
Cravensville
Exploration Licence
Dart
EL006866
Cudgewa
EL (Application)
EL (Application)
EL007099
Sandy Creek
EL (Application)
EL007170
Berringama
EL007430
Buchan
EL007435
Goonerah
EL007425
Deddick
EL007428
Boebuck
EL007426
Walwa
EL (Application)
EL (Application)
EL (Application)
EL (Application)
EL (Application)
EL (Application)
Area (km2)
Unless specified
224 Ha
172
60
165
183
190
414
3
142
344
170
567
508
437
27
546
587
341
355
499
RL006615
Fairley’s2
Retention License
RL006616
Unicorn1&2
Retention License
340 Ha
23,243 Ha
Interest
Location
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
NE Victoria
NE Victoria
Central Victoria
NE Victoria
NE Victoria
NE Victoria
NE Victoria
Central Victoria
Central Victoria
NE Victoria
NE Victoria
NE Victoria
NE Victoria
NE Victoria
NE Victoria
Gippsland
Gippsland
Gippsland
NE Victoria
NE Victoria
NE Victoria
NE Victoria
40