ANNUAL
REPORT
2022
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 2
ABN 840 119 031 864 | ASX : DRE
CORPORATE
DIRECTORY
DIRECTORS
Paul Chapman
(Non-executive Chairman)
Dean Tuck
(Managing Director)
SHARE REGISTRY
Computershare
Level 5, 191 St Georges Tce
Ian Gordon
(Non-executive Director)
Perth, WA, 6000
Philip Crutchfield
(Non-executive Director)
Australia
COMPANY SECRETARY
Jessamyn Lyons
REGISTERED OFFICE
Level 3, 35 Outram Street
West Perth WA 6005
Telephone: +61 (8) 9473 8345
Website: www.dreadnoughtresources.com.au
Telephone: + 61 8 6188 0800
AUDITORS
PKF Perth
Level 5, 35 Havelock Street
West Perth WA 6005
STOCK EXCHANGE
Australian Securities Exchange
ABN 40 119 031 864
(Home Exchange: Perth, Western Australia)
ASX Code: DRE
DREADNOUGHT RESOURCES (ASX:DRE) IS A HIGHLY
ACTIVE WEST AUSTRALIAN MINERAL EXPLORER FOCUSED ON
FINDING THE METALS NEEDED NOW AND IN THE FUTURE.
As a small and dedicated team with more than 50 years
Dreadnought currently has three core projects:
experience, we pride ourselves in how we operate, including
Tarraji-Yampi Cu-Ag-Au-Co, Mangaroon Ni-Cu-PGE-REE-
our established relationships with companies and communities.
Au and the Central Yilgarn Project.
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022 CONTENTS
CHAIRMAN’S LETTER
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDIT REPORT
ASX ADDITIONAL INFORMATION
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022 CHAIRMAN’S
LETTER
DEAR FELLOW SHAREHOLDER,
We are pleased to present the 2022 Annual Report for Dreadnought
Resources Limited (“Dreadnought” or the “Company”).
The past year has been another active year for Dreadnought and we
have made substantial progress on multiple fronts.
Many view Dreadnought as an overnight success story. The reality is that it
has taken about 3,000 nights to get to where we are today. Over those 3,000
nights, we have stuck to a number of basic philosophies:
•
put your money where your mouth is.
• drive significant equity returns, that is where the real money is for us and
hence our shareholders.
• dominate an area and ensure that our projects are something that others
may want to own someday.
•
•
•
generate a relentless and real news flow, explorers that do well are active
and convey regular and meaningful information to investors.
put your foot on good projects and the funding will come.
find metal and do not be dissuaded by those that say you should be
focused on a particular metal or project.
• manage risk and create option value for shareholders.
•
engage good people and remunerate them fairly with plenty of upside to
equity success.
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022 NONE OF THIS IS PARTICULARLY ROCKET SCIENCE,
IT IS JUST A MATTER OF APPLYING THE RIGOR AND
DISCIPLINE TO KEEP GOING WHEN THE WIND MAY BE
BLOWING AGAINST YOU.
I always like to remember our milestones and these are shown below:
2014: Formed the Tarraji Joint Venture
2015: Acquired Rocky Dam
2017: Acquired Yampi from Rio Tinto
2017: Consolidated ground around Tarraji Yampi
2018: Finalised first ever deeds of access with Department of Defence over YSTA military reserve
2019: ASX listing and board control
2019: Acquired Illaara greenstone belt to ensure year-round news flow
2020: High-grade Au discovery at Metzke's Find
2020: Mangaroon acquired
2021: High-grade Cu-Ag-Au-Co discovery at Orion
2021: FQM Option to Earn-in on Mangaroon Ni-Cu-PGE Project
2022: Ni-Cu sulphides identified in 9/12 Holes at Mangaroon Ni-Cu-PGE Project
2022: FQM Exercises Option to commence Earn-in
2022: High-Grade rare earths discovered at Yin/Sabre
To dominate around Tarraji-Yampi, Mangaroon and Central Yilgarn we have completed 2 joint ventures,
14 acquisitions and 1 divestment.
Since gaining our ASX listing in 2019, we have raised $32.4 million in equity via 11 different raisings and
converted those funds into a market capitalisation of ~$350 million. We have also issued 229 market
sensitive announcements at a consistent rate of 1.2 per week from listing.
In the year ahead we will continue at a relentless pace. While success breeds its own set of challenges, I
can assure shareholders we have a team that is up to the task.
In closing, we would like to thank our stakeholders including traditional owners, local communities,
employees, joint venture partners, suppliers and other business partners. We also would take this
opportunity to thank our fellow shareholders for your ongoing support.
PAUL CHAPMAN
Non-Executive Chairman
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022 DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of
Dreadnought Resources Limited (referred to hereafter as the Parent Entity, Dreadnought or the Company) and the
entities it controlled at the end of, or during, the year ended 30 June 2022.
DIRECTORS
The following persons were directors of the Company during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Paul Chapman
(Non-executive Chairman)
Appointed 9 April 2019
Dean Tuck
(Managing Director)
Appointed 9 April 2019
Ian Gordon
(Non-executive Director)
Appointed 21 December 2017
Paul Payne
(Non-executive Director)
Appointed 21 December 2017– retired 13 September 2022
Philip Crutchfield
(Non-executive Director)
Appointed 13 September 2022
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were minerals exploration and development. There were
no significant changes in the nature of activities of the Group during the year.
DIVIDENDS
No dividends have been declared or paid during the year (2021: Nil).
OPERATING RESULTS AND FINANCIAL POSITION
The net result of operations for the financial year was a loss of $1,433,764 (2021: $1,277,865).
The net assets of the Group have increased by $7,356,437 during the financial year from $12,158,775 at 30 June 2021
to $19,515,212 at 30 June 2022.
REVIEW OF OPERATIONS
Group Overview
The Group is an ASX-listed exploration and development company focussing on acquiring and exploring high-quality
projects within the state of Western Australia. The Company’s strategy is to discover major deposits on these projects
either by itself or in joint venture with major mining companies.
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DIRECTORS
report, unless otherwise stated:
Paul Chapman
(Non-executive Chairman)
Appointed 9 April 2019
Dean Tuck
(Managing Director)
Appointed 9 April 2019
Ian Gordon
(Non-executive Director)
Appointed 21 December 2017
Paul Payne
(Non-executive Director)
Philip Crutchfield
(Non-executive Director)
Appointed 13 September 2022
PRINCIPAL ACTIVITIES
Appointed 21 December 2017– retired 13 September 2022
The principal activities of the Group during the financial year were minerals exploration and development. There were
no significant changes in the nature of activities of the Group during the year.
DIVIDENDS
No dividends have been declared or paid during the year (2021: Nil).
OPERATING RESULTS AND FINANCIAL POSITION
The net result of operations for the financial year was a loss of $1,433,764 (2021: $1,277,865).
The net assets of the Group have increased by $7,356,437 during the financial year from $12,158,775 at 30 June 2021
to $19,515,212 at 30 June 2022.
REVIEW OF OPERATIONS
Group Overview
The Group is an ASX-listed exploration and development company focussing on acquiring and exploring high-quality
projects within the state of Western Australia. The Company’s strategy is to discover major deposits on these projects
either by itself or in joint venture with major mining companies.
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of
Dreadnought Resources Limited (referred to hereafter as the Parent Entity, Dreadnought or the Company) and the
entities it controlled at the end of, or during, the year ended 30 June 2022.
The following persons were directors of the Company during the whole of the financial year and up to the date of this
The highlights and significant changes in state of affairs during the year and to date include:
Mangaroon Ni-Cu-PGE (FQM Earn-In)
• On 30 August 2022, First Quantum Minerals Ltd (TSE:FM “First Quantum”), a ~A$20B TSX listed company,
exercised its earn-in option over the Mangaroon Ni-Cu-PGE Project. First Quantum funded the option period and
can now earn an initial 51% interest by funding $12M of expenditure by 1 March 2026. First Quantum may withdraw
at any time during the earn-in phase with 0% interest. First Quantum also paid Dreadnought $150,000
upon the exercise of the option to earn-in.
• Disseminated
to net-textured/brecciated magmatic Ni-Cu sulphide
(pyrrhotite-chalcopyrite-pentlandite)
mineralisation has been intersected in 9 out of the 12 RC holes drilled to date. The drilling covers only ~10% of
strike along the ~45km long Money Intrusion, located within the Project.
The Money Intrusion has been confirmed as having a bladed/funnel shape with mineralisation along both
for massive sulphide mineralisation at depth.
sides of
intrusion, highlighting
the potential
the
•
Mangaroon Rare Earths (100%)
Dreadnought made significant progress on the 100% owned rare earths (“REE”) at Mangaroon as summarised below:
100% Controlled by Dreadnought
• Mangaroon REE are 100% owned and controlled by Dreadnought.
Genuine Scale Potential Already at Yin and Sabre
• Yin discovery contains 3km of confirmed mineralised strike and remains open along 16kms of strike – initial
JORC Resource in December 2022 quarter, extensional drilling over 13km of strike planned.
• Sabre discovery contains ~1km of confirmed mineralised strike and remains open along strike – initial JORC
Resource in March 2023 quarter, extensional and infill drilling planned.
Long term incentives fully triggered at JORC Resource of at least 30Mt @ >1% TREO, 31 December 2024.
•
Significant, Step-Change, Growth Potential Beyond Yin and Sabre
• Mineralised Y8 REE ironstones confirmed.
• Seven carbonatite targets (C1-C7) may be the regional source of REE.
• Confirmed mineralisation at 22 outcropping targets with another 10 prospective targets requiring further work.
•
100 additional outcropping targets prospective for REE identified.
High-Grade TREO Potential
• Numerous thick, high-grade assays already announced from first drill program at Yin.
High-grade Neodymium and Praseodymium Concentrate Potential
• Yin, like the Yangibana REE project controlled by the ~$550M Hastings Technology Metals Ltd (ASX.HAS),
(“Hastings”) is a globally unique REE deposit due to the high proportion of neodymium and praseodymium in the
total rare earth oxide (NdPr ratio). NdPr values up to ~40%, nearly double the global average.
Positive Metallurgy Results
•
Initial metallurgical test work from Yin performed well, achieving a recovery of 92.8% at a concentrate grade of
12.3% Nd2 O3 and an average 40% TREO.
• Yin is predominantly hosted in monazite which is amenable to commercial processing.
Analogous to a Globally Unique, Commercially Viable Development 25kms Away
• Yangibana is Dreadnought’s immediate neighbour located only 25km to the northeast of Yin and currently has a
JORC Resource of 27.42Mt @ 0.97% TREO with 0.33% Nd2O3+Pr6O11.
• Yangibana is under construction and development with first production planned for 2024.
Global Strategic Imperative Driving Rare Earth Growth & Prices
• Supply chain security and low carbon transition are imperatives against a backdrop of heightened geopolitical
tension pushing supply away from China.
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Mangaroon Au, Ni-Cu-PGE, REE (100%)
• Dreadnought continues to consolidate ground around Mangaroon including with the acquisition (subject to
completion) of the high-grade Diamonds, Star of Mangaroon, Pritchard Well and Twin Peaks gold mines and
surrounding areas that cover major regional structures. The tenements host at least ten historic gold mines.
Importantly, the tenements are strategically located between Dreadnought’s 100% owned rare earths project to
the south-east and the First Quantum Minerals Ni-Cu-PGE Earn-in to the north-west.
The tenements are highly prospective for gold, base metals and rare earths. Highlights include:
•
•
o Historical estimated gold production from the gold mines: ~7,500oz Au @ 34.8g/t Au (Star of
Mangaroon) and 5,000oz Au @ 7.9g/t Au (Two Peaks).
o Shear zones with numerous mineralised 1-10m wide, 20-200m long outcrops containing high-grade
gold that remain under explored and undrilled.
o Rock chip samples along the shear zones of up to 6.9% Cu, 185 g/t Ag, 121 g/t Au and 23% Pb.
o Despite the attractive geology and encouraging historical exploration results the area has seen limited
to no follow up drilling.
Tarraji-Yampi Cu-Ag-Au-Co (“Tarraji-Yampi”)
The high-grade Cu-Ag-Au-Co-Zn Orion discovery was made in 2021. The 2022 auger sampling program “fingerprinted”
Orion and applied that knowledge across other under cover areas at Tarraji-Yampi. Pleasingly, nine high-quality Orion
look a likes were identified, including six new gossanous and mineralised outcrops, from the auger program completed in
April-June 2022.
Significant outcropping mineralisation associated with auger anomalism was identified at the new
Thunderer and Vanguard prospects with results including:
• KMRK0289: 37% Cu, 163g/t Ag, 1.0g/t Au, 0.03% Co
• KMRK0290: 39.4% Cu, 165g/t Ag, 1.6g/t Au, 0.02% Co
• KMRK0291: 14% Cu, 17g/t Ag, 0.6 g/t Au, 0.10% Co
• KMRK0295: 12.9% Cu, 51.5 g/t Ag, 0.02% Co, 0.1% Zn
Based on this success, a decision was made to expand the program with two auger rigs. It is expected further drill targets
will be defined as part of the expanded program. As a consequence, drilling at Tarraji-Yampi was deferred until the 2023
field season. Accordingly, auger generated targets will be prioritised to best position Dreadnought for drilling success.
Geophysical surveys will be undertaken in March/April 2023 to define what is expected to be a robust pipeline of drill
targets for 2023.
Central Yilgarn Gold, Base Metals, Critical Minerals and Iron Ore Project (“Central Yilgarn”)
Dreadnought continues to consolidate ground around Central Yilgarn including with the acquisition of seven tenements
covering ~100 strike kilometres over the Evanston and Yerilgee greenstone belts (~740sq kms) west of and adjacent to the
Illaara greenstone belt.
Since 2016, the previous owner undertook first-pass, gold exploration, resulting in numerous significant results including:
T1 Prospect: 15m @ 1.5 g/t Au including 3m @ 6.7g/t Au from 12m*
T2 Prospect: 21m @ 1.1g/t Au including 3m @ 2.3g/t Au from 63m*
•
•
• Phil’s Lode Prospect: 24m @ 1.6g/t Au including 9m @ 3.3g/t Au from 12m*
• Snowflake Prospect: 16m @ 1.9 g/t Au including 4m @ 8.5g/t Au from 0m*
• Megatron Prospect: 9m @ 2.6 g/t Au including 3m @ 7.1 g/t Au from 26m*
*see ASX release dated 1 August 2022 for references to the previous AMD announcements outlining these results.
The gold prospects have had limited to no follow up drilling. Other commodities such as iron ore, LCT pegmatites and
komatiite hosted nickel sulphides have received limited attention. A Senior Exploration Geologist (Leah Dawson) who is
familiar with the project and the team, was recruited to focus exclusively on the Central Yilgarn Project.
Subsequent to 30 June 2022, Dreadnought exercised its option to acquire 100% ownership of tenements E29/965 and
E30/485. These tenements cover parts of the Kings and P1 iron ore occurrences including significant magnetite banded
iron formations, the Central Komatiite belt, currently under assessment for nickel sulphides, the eastern extensions of the
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Mangaroon Au, Ni-Cu-PGE, REE (100%)
• Dreadnought continues to consolidate ground around Mangaroon including with the acquisition (subject to
completion) of the high-grade Diamonds, Star of Mangaroon, Pritchard Well and Twin Peaks gold mines and
surrounding areas that cover major regional structures. The tenements host at least ten historic gold mines.
Importantly, the tenements are strategically located between Dreadnought’s 100% owned rare earths project to
the south-east and the First Quantum Minerals Ni-Cu-PGE Earn-in to the north-west.
The tenements are highly prospective for gold, base metals and rare earths. Highlights include:
•
•
o Historical estimated gold production from the gold mines: ~7,500oz Au @ 34.8g/t Au (Star of
Mangaroon) and 5,000oz Au @ 7.9g/t Au (Two Peaks).
o Shear zones with numerous mineralised 1-10m wide, 20-200m long outcrops containing high-grade
gold that remain under explored and undrilled.
o Rock chip samples along the shear zones of up to 6.9% Cu, 185 g/t Ag, 121 g/t Au and 23% Pb.
o Despite the attractive geology and encouraging historical exploration results the area has seen limited
to no follow up drilling.
Tarraji-Yampi Cu-Ag-Au-Co (“Tarraji-Yampi”)
The high-grade Cu-Ag-Au-Co-Zn Orion discovery was made in 2021. The 2022 auger sampling program “fingerprinted”
Orion and applied that knowledge across other under cover areas at Tarraji-Yampi. Pleasingly, nine high-quality Orion
look a likes were identified, including six new gossanous and mineralised outcrops, from the auger program completed in
April-June 2022.
Significant outcropping mineralisation associated with auger anomalism was identified at the new
Thunderer and Vanguard prospects with results including:
• KMRK0289: 37% Cu, 163g/t Ag, 1.0g/t Au, 0.03% Co
• KMRK0290: 39.4% Cu, 165g/t Ag, 1.6g/t Au, 0.02% Co
• KMRK0291: 14% Cu, 17g/t Ag, 0.6 g/t Au, 0.10% Co
• KMRK0295: 12.9% Cu, 51.5 g/t Ag, 0.02% Co, 0.1% Zn
Based on this success, a decision was made to expand the program with two auger rigs. It is expected further drill targets
will be defined as part of the expanded program. As a consequence, drilling at Tarraji-Yampi was deferred until the 2023
field season. Accordingly, auger generated targets will be prioritised to best position Dreadnought for drilling success.
Geophysical surveys will be undertaken in March/April 2023 to define what is expected to be a robust pipeline of drill
targets for 2023.
Central Yilgarn Gold, Base Metals, Critical Minerals and Iron Ore Project (“Central Yilgarn”)
Dreadnought continues to consolidate ground around Central Yilgarn including with the acquisition of seven tenements
covering ~100 strike kilometres over the Evanston and Yerilgee greenstone belts (~740sq kms) west of and adjacent to the
Illaara greenstone belt.
Since 2016, the previous owner undertook first-pass, gold exploration, resulting in numerous significant results including:
•
•
T1 Prospect: 15m @ 1.5 g/t Au including 3m @ 6.7g/t Au from 12m*
T2 Prospect: 21m @ 1.1g/t Au including 3m @ 2.3g/t Au from 63m*
• Phil’s Lode Prospect: 24m @ 1.6g/t Au including 9m @ 3.3g/t Au from 12m*
• Snowflake Prospect: 16m @ 1.9 g/t Au including 4m @ 8.5g/t Au from 0m*
• Megatron Prospect: 9m @ 2.6 g/t Au including 3m @ 7.1 g/t Au from 26m*
*see ASX release dated 1 August 2022 for references to the previous AMD announcements outlining these results.
The gold prospects have had limited to no follow up drilling. Other commodities such as iron ore, LCT pegmatites and
komatiite hosted nickel sulphides have received limited attention. A Senior Exploration Geologist (Leah Dawson) who is
familiar with the project and the team, was recruited to focus exclusively on the Central Yilgarn Project.
Subsequent to 30 June 2022, Dreadnought exercised its option to acquire 100% ownership of tenements E29/965 and
E30/485. These tenements cover parts of the Kings and P1 iron ore occurrences including significant magnetite banded
iron formations, the Central Komatiite belt, currently under assessment for nickel sulphides, the eastern extensions of the
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DIRECTORS’ REPORT
Peggy Sue pegmatite field as well as several VMS and gold prospects many with samples awaiting assay. This exercise
provided 100% ownership over the highly prospective, 75km long, Illaara Greenstone Belt.
At the date of this report outstanding matters in relation to Central Yilgarn include:
• Assays from Peggy Sue pegmatite sampling
• Assays from RC drilling at Nelson, Trafalgar, Metzke’s Find, Spitfire
• Results from Central Komatiite Belt target generation work
•
Initial JORC Resource for Metzke’s Find Au (Central Yilgarn).
Corporate Highlights to 30 June 2022:
• On 23 July 2021, the Convertible Loan Note holders elected to convert their notes into 109,090,909 fully paid
ordinary shares thereby reducing debt by $600,000 to nil.
In relation to employee options, the following activities occurred:
• On 2 July 2021, the Company granted 11,500,000 options via the Dreadnought Employee Option Plan (“Plan”) to
the current employees and the company secretary of the Company. The options have a $0.04 exercise price and
an expiry date of 2 July 2024.
•
In July and August 2021, employees of the Company exercised 20,000,000 options for a total of $180,000.
• On 31 August 2021, the Company issued 2,000,000 options via the Plan to an employee of the Company. The
options have a $0.06 exercise price and an expiry date of 11 August 2024.
• On 2 December 2021, employees of the Company exercised 2,000,000 options for a total of $27,500.
• On 31 January 2022, an employee of the Company opted to early exercise 1,500,000 options for a total of $15,000.
• On 30 November 2021, the Company issued a total of 7,000,000 options to an employee and Managing Director
of the Company. The 2,000,000 options granted to an employee have an exercise price of $0.06 and an expiry of
26 November 2024 while the 5,000,000 options granted to the Managing Director have an exercise price of $0.04
and expiry of 2 July 2024.
In relation to share placements, the following activities occurred:
•
In September 2021, the Company completed a placement at $0.035 per share to institutional and sophisticated
investors raising $7,910,000 (before costs). Directors contributed a further $90,000 to the placement as approved
by shareholders at the AGM held on 24 November 2021. In addition to their participation in the placement, the
Directors exercised 8,479,452 options for a total amount of $68,699.
The Company made the following acquisitions during the year:
• On 14 October 2021, the Company acquired tenement E09/2359 at the Company’s Mangaroon Project. 750,000
shares were issued as a result of this acquisition.
On 29 April 2022, the Group was awarded a total of up to $400,000 in drilling grants via the WA Government’s co-funded
Exploration Incentive Scheme for the Mangaroon REE and Tarraji-Yampi Cu-Ag-Au-Co projects.
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to 30 June 2022, the following significant events were undertaken by the Group:
•
•
•
•
•
On 7 July 2022, the Group exercised its option to acquire 100% ownership of E29/965 and E30/485 within the
Central Yilgarn. These tenements cover parts of the Kings and P1 Iron ore occurrences including significant
magnetite banded iron formations, the Central Komatiite nickel sulphide belt, the eastern extensions of the Peggy
Sue pegmatite field as well as several VMS and gold prospects. The exercise provided 100% ownership over the
highly prospective, 75km long, Illaara Greenstone Belt. On 20 July 2022, the Group paid $1,000,000 to an
unrelated party to settle the transaction.
On 9 July 2022, the Group executed a tenement sale and purchase agreement with Arrow Minerals Limited
(ASX:AMD) to acquire a 100% interest in seven tenements being E16/495, E30/493, E30/494, E77/2403,
E77/2416, E77/2432, E77/2634). The key commercial terms included:
o AMD to receive a $20,000 cash payment upon signing of the agreement. This was paid on 11 July
2022.
o AMD to receive $280,000 cash payment at settlement. This was paid on 1 August 2022.
o The Group to issue AMD 2,350,000 fully paid ordinary shares escrowed until 31 January 2023. These
shares were issued 1 August 2022.
o AMD to receive a further cash payment of $300,000 by 30 November 2022.
o On the identification and reporting of JORC compliant inferred mineral resource of >500,000oz gold
equivalent the Group will pay AMD $1,000,000.
o AMD to retain a total 1% Net Smelter Return royalty in relation to minerals mined by or on behalf of
the Company on the tenements.
On 15 July 2022, the Group issued 8,500,000 unlisted options to its employees and company secretary. These
options have an exercise price of $0.065 and expire on 14 July 2025. The options vest on 14 July 2023.
In August 2022, the Group completed a placement at $0.06 per share to institutional and sophisticated investors
raising $12,000,000 (before costs). Directors contributed a further $350,000 to the placement, to be approved by
shareholders at the AGM to be held in November 2022.
On 17 August 2022, the Board resolved to create a Long-Term Incentive scheme under which employees and,
subject to shareholder approval, directors, may receive performance rights representing the right to subscribe for
one fully paid ordinary Dreadnought share. The objectives of setting these LTIs in the remuneration review
included:
o Ensuring employee/director alignment and retention;
o Creating long term shareholder value by setting significant targets that will have a material, beneficial
impact on Dreadnought’s enterprise value; and
o Ensuring that Dreadnought remains a preferred employer of choice in being able to attract and retain
professionals in a highly competitive market.
The Board of Directors approved LTI scheme involves the issue of performance rights, with each performance right
representing the right to subscribe for one fully paid ordinary Dreadnought share, to employees and directors. A LTI
Plan will govern the terms of the performance rights. The adoption of the LTI Plan for the purposes of Listing Rule 7.2
Exception 13 will be subject to shareholder approval at the 2022 Annual General Meeting as will the issue of
performance rights to directors. The essential terms of the LTIs are as follows:
The LTIs are divided into three equal tranches. Each tranche will vest upon the Company announcing, during the vesting
period, a JORC 2012 Mineral Resource (“Resource") of Total Rare Earth Oxide (“TREO”) as follows:
o
o
o
Tranche 1: A Resource of at least the inferred category of 10Mt @ > 1% TREO by 31 December 2022.
Tranche 2: A Resource of at least the inferred category of 20Mt @ > 1% TREO by 31 December 2023.
Tranche 3: A Resource of at least the inferred category of 30Mt @ > 1% TREO by 31 December 2024.
Vesting of the performance rights will also be conditional on the holder remaining an employee or director as at the date
the vesting condition is satisfied (subject to the exercise of any discretion by the Board to waive a vesting condition or to
allow an employee or director who retires in certain circumstances to retain their performance rights as provided for by
the rules of LTI Plan).
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DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to 30 June 2022, the following significant events were undertaken by the Group:
•
•
•
•
•
On 7 July 2022, the Group exercised its option to acquire 100% ownership of E29/965 and E30/485 within the
Central Yilgarn. These tenements cover parts of the Kings and P1 Iron ore occurrences including significant
magnetite banded iron formations, the Central Komatiite nickel sulphide belt, the eastern extensions of the Peggy
Sue pegmatite field as well as several VMS and gold prospects. The exercise provided 100% ownership over the
highly prospective, 75km long, Illaara Greenstone Belt. On 20 July 2022, the Group paid $1,000,000 to an
unrelated party to settle the transaction.
On 9 July 2022, the Group executed a tenement sale and purchase agreement with Arrow Minerals Limited
(ASX:AMD) to acquire a 100% interest in seven tenements being E16/495, E30/493, E30/494, E77/2403,
E77/2416, E77/2432, E77/2634). The key commercial terms included:
o AMD to receive a $20,000 cash payment upon signing of the agreement. This was paid on 11 July
2022.
o AMD to receive $280,000 cash payment at settlement. This was paid on 1 August 2022.
o The Group to issue AMD 2,350,000 fully paid ordinary shares escrowed until 31 January 2023. These
shares were issued 1 August 2022.
o AMD to receive a further cash payment of $300,000 by 30 November 2022.
o On the identification and reporting of JORC compliant inferred mineral resource of >500,000oz gold
equivalent the Group will pay AMD $1,000,000.
o AMD to retain a total 1% Net Smelter Return royalty in relation to minerals mined by or on behalf of
the Company on the tenements.
On 15 July 2022, the Group issued 8,500,000 unlisted options to its employees and company secretary. These
options have an exercise price of $0.065 and expire on 14 July 2025. The options vest on 14 July 2023.
In August 2022, the Group completed a placement at $0.06 per share to institutional and sophisticated investors
raising $12,000,000 (before costs). Directors contributed a further $350,000 to the placement, to be approved by
shareholders at the AGM to be held in November 2022.
On 17 August 2022, the Board resolved to create a Long-Term Incentive scheme under which employees and,
subject to shareholder approval, directors, may receive performance rights representing the right to subscribe for
one fully paid ordinary Dreadnought share. The objectives of setting these LTIs in the remuneration review
included:
o Ensuring employee/director alignment and retention;
o Creating long term shareholder value by setting significant targets that will have a material, beneficial
impact on Dreadnought’s enterprise value; and
o Ensuring that Dreadnought remains a preferred employer of choice in being able to attract and retain
professionals in a highly competitive market.
The Board of Directors approved LTI scheme involves the issue of performance rights, with each performance right
representing the right to subscribe for one fully paid ordinary Dreadnought share, to employees and directors. A LTI
Plan will govern the terms of the performance rights. The adoption of the LTI Plan for the purposes of Listing Rule 7.2
Exception 13 will be subject to shareholder approval at the 2022 Annual General Meeting as will the issue of
performance rights to directors. The essential terms of the LTIs are as follows:
The LTIs are divided into three equal tranches. Each tranche will vest upon the Company announcing, during the vesting
period, a JORC 2012 Mineral Resource (“Resource") of Total Rare Earth Oxide (“TREO”) as follows:
o
o
o
Tranche 1: A Resource of at least the inferred category of 10Mt @ > 1% TREO by 31 December 2022.
Tranche 2: A Resource of at least the inferred category of 20Mt @ > 1% TREO by 31 December 2023.
Tranche 3: A Resource of at least the inferred category of 30Mt @ > 1% TREO by 31 December 2024.
Vesting of the performance rights will also be conditional on the holder remaining an employee or director as at the date
the vesting condition is satisfied (subject to the exercise of any discretion by the Board to waive a vesting condition or to
allow an employee or director who retires in certain circumstances to retain their performance rights as provided for by
the rules of LTI Plan).
8
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Quantity of Performance Rights:
The total number of performance rights proposed to be issued as LTIs across the three tranches has been determined
by the Board as 29,200,000 with 7,700,000 issued to the directors and 21,500,000 to employees.
The Company will seek shareholder approval at the 2022 Annual General Meeting for the issue of the performance rights
to each director in accordance with ASX Listing Rule 10.14 and Chapter 2E of the Corporations Act 2001.
•
•
•
As announced on 30 August 2022, First Quantum, a ~A$20B TSX listed company, exercised its earn-in option over
the Mangaroon Ni-Cu-PGE Project. First Quantum has funded the option period and can now earn an initial 51%
interest by funding $12M of expenditure by 1 March 2026. First Quantum may withdraw at any time during the earn-
in phase with 0% interest. First Quantum also paid Dreadnought $150,000 as a consequence. The key terms of the
earn-in and Joint Venture Agreement include:
•
•
The Agreement covers the base metal rights over five tenements being E09/2384, E09/2473, E09/2433,
E08/3178 and E08/3274.
First Quantum can earn an initial 51% interest by sole funding $12M of expenditure by 1 March 2026.
First Quantum may withdraw from the project at any time during the earn-in phase with 0% interest.
• Upon satisfying the earn-in requirements, a Joint Venture will be formed where First Quantum may elect
to increase its interest to 70% by sole funding expenditure up until a Decision to Mine. If First Quantum
elects to cease funding expenditure, it will revert to a 49% interest.
• Once a Decision to Mine has been made, Dreadnought can elect to either:
o Maintain its 30% by co-contributing.
o Dilute to 20% and be loan carried by First Quantum, repaid through revenue.
o Divest its 30% interest to First Quantum at fair market value.
On 2 September 2022, the Company appointed PKF Perth to perform the audit function of the Company. PKF Perth’s
appointment is effective until the next Annual General Meeting of the Company. In accordance with section 327C of
the Corporations Act 2001, a resolution will be put to shareholders at the 2022 Annual General Meeting to appoint
PKF Perth as the Company auditor. In accordance with subsection 329(5) of the Corporations Act and having
received the consent of the Australian Securities and Investment Commission (ASIC), Nexia Perth Audit Services Pty
Ltd has resigned as Auditor of the Company.
On 12 September 2022, subject to completion, the Group announced the acquisition of 100% interest in 5 tenements
covering 77 kms2 of major regional structures. The tenements host at least ten historic gold mines including the high-
grade Star of Mangaroon, Pritchard Well and Twin Peaks gold mines. The tenements are strategically located
between the Group’s 100% owned rare earths project to the south-east and the First Quantum Ni-Cu-PGE Earn-in to
the north-west.
The key commercial terms with the unrelated party vendors (subject to completion) are outlined below.
1. Key commercial terms to acquire 100% of E09/2290, M09/146, M09/147 and M09/175 include:
a. Dreadnought to own 100% upon Completion;
b. Dreadnought to pay $50,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $250,000 at Completion;
d. Vendors to receive 20,000,000 fully paid ordinary shares at Completion;
e. 1% gross royalty payable on E09/2290, M09/146 and M09/147; and
f.
0.5% gross royalty payable on M09/175.
2. Key commercial terms to acquire 100% of M09/174 include:
a. Dreadnought to own 100% upon Completion;
b. Dreadnought to pay $25,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $50,000 at Completion;
d. Vendor to receive 1,000,000 fully paid ordinary shares at Completion; and
e. 0.5% gross royalty payable.
9
10
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Completion is expected to occur in November 2022. The proposed issue of 21,000,000 fully paid ordinary shares as
part of the consideration for the acquisition of the tenements above are expected to be issued on 2 December 2022.
•
•
As announced on 14 September 2022, Philip Crutchfield KC has been appointed as a non-executive director of
Dreadnought effective 13 September 2022. In addition, after 5 years on the Board, Paul Payne decided to step down
as a non-executive director of Dreadnought effective 13 September 2022. Paul played a pivotal role in the acquisition
of the Tarraji-Yampi Project in 2019 and also in the transformation of Dreadnought from a struggling junior resource
company to the successful organisation that it is today. Paul’s advice, guidance and contribution to the Company
especially during some challenging times is appreciated. Paul will continue to provide a number of consulting services
to Dreadnought including an initial JORC Resource on the Metzke’s Find gold deposit at the Central Yilgarn Project
in the December 2022 quarter.
On 15 September 2022, Dreadnought issued 1,500,000 ordinary fully paid shares as a result of an early exercise of
options by an employee. The options were exercisable at any time until 2 July 2024 at an exercise price of $0.04 per
option. The amount raised on the exercise of the options was $60,000. Dreadnought has relied on Section 708A of
the Corporations Act 2001 (Cth) in relation to the issue of shares.
Other than the events detailed above, there has not arisen in the interval between 1 July 2022 and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to affect
significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the
consolidated entity, in future years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGY
The Group is focused on delivering significant shareholder returns through the discovery of economic mineral deposits in
the tier one jurisdiction of Western Australia.
The Group will achieve these goals by:
•
•
Identifying projects with significant unrealised potential.
Focusing technical effort and financial investment to effectively and efficiently generate and drill exciting, mineralised
targets.
Maintaining low overheads and keeping the market well informed through continuous activity and news flow.
10
•
11
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Completion is expected to occur in November 2022. The proposed issue of 21,000,000 fully paid ordinary shares as
part of the consideration for the acquisition of the tenements above are expected to be issued on 2 December 2022.
•
As announced on 14 September 2022, Philip Crutchfield KC has been appointed as a non-executive director of
Dreadnought effective 13 September 2022. In addition, after 5 years on the Board, Paul Payne decided to step down
as a non-executive director of Dreadnought effective 13 September 2022. Paul played a pivotal role in the acquisition
of the Tarraji-Yampi Project in 2019 and also in the transformation of Dreadnought from a struggling junior resource
company to the successful organisation that it is today. Paul’s advice, guidance and contribution to the Company
especially during some challenging times is appreciated. Paul will continue to provide a number of consulting services
to Dreadnought including an initial JORC Resource on the Metzke’s Find gold deposit at the Central Yilgarn Project
in the December 2022 quarter.
•
On 15 September 2022, Dreadnought issued 1,500,000 ordinary fully paid shares as a result of an early exercise of
options by an employee. The options were exercisable at any time until 2 July 2024 at an exercise price of $0.04 per
option. The amount raised on the exercise of the options was $60,000. Dreadnought has relied on Section 708A of
the Corporations Act 2001 (Cth) in relation to the issue of shares.
Other than the events detailed above, there has not arisen in the interval between 1 July 2022 and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to affect
significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the
consolidated entity, in future years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGY
The Group is focused on delivering significant shareholder returns through the discovery of economic mineral deposits in
the tier one jurisdiction of Western Australia.
The Group will achieve these goals by:
Identifying projects with significant unrealised potential.
•
•
•
targets.
Focusing technical effort and financial investment to effectively and efficiently generate and drill exciting, mineralised
Maintaining low overheads and keeping the market well informed through continuous activity and news flow.
ASX Listing Rules Compliance
In preparing the Annual Report for the period ended 30 June 2022, the Company has relied on the following ASX
announcements.
ASX Announcement
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15/09/2022
15/09/2022
14/09/2022
14/09/2022
14/09/2022
12/09/2022
12/09/2022
09/09/2022
08/09/2022
06/09/2022
05/09/2022
05/09/2022
02/09/2022
02/09/2022
01/09/2022
30/08/2022
22/08/2022
17/08/2022
15/08/2022
10/08/2022
05/08/2022
05/08/2022
02/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
01/08/2022
29/07/2022
29/07/2022
29/07/2022
29/07/2022
28/07/2022
25/07/2022
15/07/2022
15/07/2022
13/07/2022
11/07/2022
07/07/2022
23/06/2022
22/06/2022
17/06/2022
16/06/2022
14/06/2022
10/06/2022
30/05/2022
16/05/2022
Cleansing Statement – Early Exercise of Options
Application for quotation of securities - DRE
Initial Director’s Interest Notice - Philip Crutchfield
Final Director’s Interest Notice – Paul Payne
Board Changes
Proposed issue of securities - DRE
Star of Mangaroon Acquisition & Consolidation
Investor Webinar Presentation Recording
New World Metals Conference Presentation
Investor Webinar Presentation
Thick Rare Earth Ironstones Confirmed at Sabre(Y3) Discovery
Further Assays Confirm Yin as Significant REE Discovery
Change of Auditor
Investor Webinar
Trading Halt
Mangaroon Ni-Cu-PGE Project Advances to $12m Earn-in
Yin Drilling Complete, Significant Growth Potential
Long-Term Incentives on Delivery of Significant REE Resource
Nine Orion Look-alikes from Auger Program, More to Come
Diamond Drilling Commenced at Yin Rare Earth Discovery
Application for quotation of securities - DRE
Cleansing Notice - Placement
AMD: Completion of Sale of Strickland Copper Gold Project WA
Cleansing Notice
Application for quotation of securities - DRE
Completion of Acquisition – Central Yilgarn Project
Proposed issue of securities - DRE
Proposed issue of securities - DRE
Capital Raise to Accelerate Large Scale Rare Earth Discovery
Corporate Presentation – July 2022
Trading Halt
Quarterly Cashflow Report – June 2022
Quarterly Activities Report – June 2022
Assays Confirm Yin as a High-Grade Rare Earth Discovery
Rare Earth Ironstones Confirmed Over 3km of Stike at Yn
Proposed issue of securities - DRE
Notification regarding unquoted securities - DRE
AMD: Divestment of Strickland Gold Project WA
Significant Regional Consolidation – Central Yilgarn Project
Exercise of Option Consolidates Ownership of Illaara
Gold Coast Investment Showcase Presentation
Orion Auger Program – Tarraji-Yampi Project
Further Gold Consolidation – Mangaroon Project
First Drilling at Yin Intersects High-Grade Rare Earths
Trading Halt
Drilling Successfully Completed at Mangaroon Project
Change of Director’s Interest Notice – Paul Payne
Drilling Intersects Magmatic Ni-Cu Sulphides at Mangaroon
10
11
12
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
ASX Announcement
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11/05/2022
09/05/2022
03/05/2022
29/04/2022
29/04/2022
29/04/2022
19/04/2022
04/04/2022
16/03/2022
02/03/2022
16/02/2022
15/02/2022
14/02/2022
01/02/2022
31/01/2022
31/01/2022
31/01/2022
31/01/2022
31/01/2022
28/01/2022
04/01/2022
08/12/2021
06/12/2021
03/12/2021
03/12/2021
02/12/2021
01/12/2021
30/11/2021
30/11/2021
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30/11/2021
29/11/2021
24/11/2021
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24/11/2021
15/11/2021
12/11/2021
11/11/2021
02/11/2021
29/10/2021
29/10/2021
29/10/2021
28/10/2021
28/10/2021
25/10/2021
14/10/2021
11/10/2021
04/10/2021
29/09/2021
Drilling Commenced at Mangaroon Project
Drilling Complete at Illaara Project
RIU Sydney Resources Round-Up Presentation
EIS Drilling Grants for Magaroon REE and Orion Cu-Ag-Au-Co
Quarterly Activities Report – March 2022
Quarterly Cashflow Report – March 2022
Commencement of Regional Auger Program – Tarrai-Yampi
Nelson and Trafalgar Drilling Update – Illaara Project
Half Yearly Report and Accounts
Drilling Commenced at Illaara Project
RIU Explorers Conference Presentation
Eight Conductors to be Drilled at Nelson and Trafalgar
Conductors Defined Along the Money Intrusion - Mangaroon
Mangaroon Rare Earths, Phosphate, Niobium & Zirconium
Early Exercise of Options – Cleansing Notice
Application for quotation of securities - DRE
December 2021 Quarterly Presentation
Quarterly Cashflow Report – December 2021
Quarterly Activities Report – December 2021
2022 Activities Update
Change of Address
Further High-Grade Cu-Ag-Au-Co-Zn from Orion Discovery
Trading Halt
Application for quotation of securities - DRE
Cleansing Notice
RIU Resurgence Conference Presentation
Change of Director’s Interest Notice – Paul Payne
Cleansing Notice
Change of Director’s Interest Notice – Dean Tuck
Change of Director’s Interest Notice – Paul Chapman
Change of Director’s Interest Notice – Ian Gordon
Notification regarding unquoted securities - DRE
Notification regarding unquoted securities - DRE
Application for quotation of securities - DRE
Application for quotation of securities - DRE
Five Carbonatite Intrusions Identiofied at Mangaroon Project
Results of Annual General Meeting
Chairman’s Address to Shareholders
AGM Presentation
High-Grade Cu-Ag-Au-Co Discovery at Orion
Trading Halt
Noosa Mining Uneartherd Conference Presentation
Supergene Confirmed and Massive Sulphides Extended at Orion
September 2021 Quarterly Presentation
Quarterly Cashflow Report – September 2021
Quarterly Activities Report – September 2021
Proposed issue of securities - DRE
South-West Connect ASX Showcase Presentation
Notice of Annual General Meeting/Proxy Form
Mangaroon Project Exploration Update & Further Consolidation
Massive Sulphides Intersected in Multiple Holes at Orion
Drilling Program Commenced at Tarraji-Yampi Project
Appendix 4G and Corporate Governance Statement 2021
13
12
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
ASX Announcement
11/05/2022
Drilling Commenced at Mangaroon Project
ASX Announcement
09/05/2022
Drilling Complete at Illaara Project
ASX Announcement
03/05/2022
RIU Sydney Resources Round-Up Presentation
ASX Announcement
29/04/2022
EIS Drilling Grants for Magaroon REE and Orion Cu-Ag-Au-Co
ASX Announcement
29/04/2022
Quarterly Activities Report – March 2022
ASX Announcement
29/04/2022
Quarterly Cashflow Report – March 2022
ASX Announcement
19/04/2022
Commencement of Regional Auger Program – Tarrai-Yampi
ASX Announcement
04/04/2022
Nelson and Trafalgar Drilling Update – Illaara Project
ASX Announcement
16/03/2022
Half Yearly Report and Accounts
ASX Announcement
02/03/2022
Drilling Commenced at Illaara Project
ASX Announcement
16/02/2022
RIU Explorers Conference Presentation
ASX Announcement
15/02/2022
Eight Conductors to be Drilled at Nelson and Trafalgar
ASX Announcement
14/02/2022
Conductors Defined Along the Money Intrusion - Mangaroon
ASX Announcement
01/02/2022
Mangaroon Rare Earths, Phosphate, Niobium & Zirconium
ASX Announcement
31/01/2022
Early Exercise of Options – Cleansing Notice
ASX Announcement
31/01/2022
Application for quotation of securities - DRE
ASX Announcement
31/01/2022
December 2021 Quarterly Presentation
ASX Announcement
31/01/2022
Quarterly Cashflow Report – December 2021
ASX Announcement
31/01/2022
Quarterly Activities Report – December 2021
ASX Announcement
28/01/2022
2022 Activities Update
ASX Announcement
04/01/2022
Change of Address
ASX Announcement
08/12/2021
Further High-Grade Cu-Ag-Au-Co-Zn from Orion Discovery
ASX Announcement
06/12/2021
Trading Halt
ASX Announcement
03/12/2021
Application for quotation of securities - DRE
ASX Announcement
03/12/2021
Cleansing Notice
ASX Announcement
02/12/2021
RIU Resurgence Conference Presentation
ASX Announcement
01/12/2021
Change of Director’s Interest Notice – Paul Payne
ASX Announcement
30/11/2021
Cleansing Notice
ASX Announcement
30/11/2021
Change of Director’s Interest Notice – Dean Tuck
ASX Announcement
30/11/2021
Change of Director’s Interest Notice – Paul Chapman
ASX Announcement
30/11/2021
Change of Director’s Interest Notice – Ian Gordon
ASX Announcement
30/11/2021
Notification regarding unquoted securities - DRE
ASX Announcement
30/11/2021
Notification regarding unquoted securities - DRE
ASX Announcement
30/11/2021
Application for quotation of securities - DRE
ASX Announcement
30/11/2021
Application for quotation of securities - DRE
ASX Announcement
29/11/2021
Five Carbonatite Intrusions Identiofied at Mangaroon Project
ASX Announcement
24/11/2021
Results of Annual General Meeting
ASX Announcement
24/11/2021
Chairman’s Address to Shareholders
ASX Announcement
24/11/2021
AGM Presentation
ASX Announcement
15/11/2021
High-Grade Cu-Ag-Au-Co Discovery at Orion
ASX Announcement
12/11/2021
Trading Halt
ASX Announcement
11/11/2021
Noosa Mining Uneartherd Conference Presentation
ASX Announcement
02/11/2021
Supergene Confirmed and Massive Sulphides Extended at Orion
ASX Announcement
29/10/2021
September 2021 Quarterly Presentation
ASX Announcement
29/10/2021
Quarterly Cashflow Report – September 2021
ASX Announcement
29/10/2021
Quarterly Activities Report – September 2021
ASX Announcement
28/10/2021
Proposed issue of securities - DRE
ASX Announcement
28/10/2021
South-West Connect ASX Showcase Presentation
ASX Announcement
25/10/2021
Notice of Annual General Meeting/Proxy Form
ASX Announcement
14/10/2021
Mangaroon Project Exploration Update & Further Consolidation
ASX Announcement
11/10/2021
Massive Sulphides Intersected in Multiple Holes at Orion
ASX Announcement
04/10/2021
Drilling Program Commenced at Tarraji-Yampi Project
ASX Announcement
29/09/2021
Appendix 4G and Corporate Governance Statement 2021
DIRECTORS’ REPORT
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29/09/2021
24/09/2021
22/09/2021
21/09/2021
21/09/2021
20/09/2021
16/09/2021
14/09/2021
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09/09/2021
09/09/2021
06/09/2021
01/09/2021
01/09/2021
01/09/2021
31/08/2021
27/08/2021
25/08/2021
04/08/2021
04/08/2021
30/07/2021
30/07/2021
30/07/2021
30/07/2021
26/07/2021
26/07/2021
19/07/2021
16/07/2021
12/07/2021
12/07/2021
08/07/2021
07/07/2021
06/07/2021
06/07/2021
06/07/2021
01/07/2021
Annual Report to Shareholders
Airborne Magnetic-Radiometric Survey Commenced at Mangaroon
Change in substantial holding
Cleansing Notice
Application for quotation of securities - DRE
Change of Director’s Interest Notice – Paul Chapman
Change of Director’s Interest Notice – Dean Tuck
Early Exercise of Options – Cleansing Notice
Application for quotation of securities - DRE
Proposed issue of securities - DRE
Proposed issue of securities - DRE
Dreadnought Resources Fully Funded Following Placement
Trading Halt
New World Metals Conference Presentation
Four New REE Ironstones Discovered at Mangaroon
Junior Minerals Exploration Incentive
Change of Director’s Interest Notice – Paul Payne
Notification regarding unquoted securities - DRE
Encouraging Results for Rare Earths at Yin
Texas Diamond Drilling Update – Tarraji Yampi
Bonanza Grade Cu-Ag-Sb-Bi Mineralisation at Rough Triangle
Large Cu-Au-Ag-Co System at Orion, Grant’s Find and Fuso
Application for quotation of securities - DRE
Early Exercise of Options – Cleansing Notice
June 2021 Quarterly Presentation
Quarterly Cashflow Report – June 2021
Quarterly Activities Report – June 2021
Significant Mineralisation at Tarraji-Yampi Project
Application for quotation of securities - DRE
Cleansing Notice – Note Conversion
High-Grade REE Ironstones Confirmed Over 2.5kms at Mangaroon
1km Long Gossanous Ni-Cu-PGE Outcrop at Mangaroon
Application for quotation of securities - DRE
Early Exercise of Options – Cleansing Notice
RC Drilling Commenced at Tarraji-Yampi Project
High-Grade Tantalum Results from Peggy Sue – Illaara Project
Employee Option Issues
Notification regarding unquoted securities - DRE
High-Grade Cu-Ag-Sb-Bi Mineralisation at Rough Triangle
Sulphides Intersected within the Ruins Dolerite at Texas
12
13
14
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Compliance Statement
This report contains information extracted from reports cited herein. These are available to view on the website
www.dreadnoughtresources.com.au. In relying on the above ASX announcements and pursuant to ASX Listing Rule 5.23.2,
the Company confirms that it is not aware of any new information or data that materially affects the information included in
the abovementioned announcements or this Annual Report for the period ended 30 June 2022.
ENVIRONMENTAL REGULATION
The operations of the Group in Australia are subject to environmental regulations under both Commonwealth and State
legislation. In the mining industry, many activities are regulated by environmental laws. The Group conducts its operations
under the necessary Commonwealth and State Licences and Works Approvals to its activities on its tenements. The Group
considers it has complied with all relevant environmental obligations.
INFORMATION ON DIRECTORS
Directors have been in office for the entire period unless otherwise stated.
PAUL CHAPMAN B.Comm, CA, Grad. Dip. Tax, MAICD, MAusIMM
Independent Non-Executive Chairman
Experience and Expertise
Mr Chapman is a company director with over 30 years in the resource sector. Mr Chapman has held senior
management roles across a range of commodity businesses and public companies in Australia and the USA. Mr
Chapman was a founding director and shareholder of Reliance Mining, Encounter Resources, Rex Minerals, Silver
Lake Resources, Black Cat Syndicate and Dreadnought Resources.
Interests in shares and options
311,038,084 shares.
Other current directorships
Mr Chapman is the non-executive chairman of Meeka Minerals Limited (ASX:MEK) (since May 2022).
Mr Chapman is a non-executive chairman of Black Cat Syndicate Limited (ASX:BC8) (since August 2017).
Mr Chapman is a non-executive chairman of Encounter Resources Limited (ASX:ENR) (since October 2005).
Mr Chapman is a non-executive director of Sunshine Gold Limited (ASX:SHN) (since November 2020).
Former directorships in the last 3 years
Avanco Resources.
15
14
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Compliance Statement
This report contains information extracted from reports cited herein. These are available to view on the website
www.dreadnoughtresources.com.au. In relying on the above ASX announcements and pursuant to ASX Listing Rule 5.23.2,
the Company confirms that it is not aware of any new information or data that materially affects the information included in
the abovementioned announcements or this Annual Report for the period ended 30 June 2022.
ENVIRONMENTAL REGULATION
The operations of the Group in Australia are subject to environmental regulations under both Commonwealth and State
legislation. In the mining industry, many activities are regulated by environmental laws. The Group conducts its operations
under the necessary Commonwealth and State Licences and Works Approvals to its activities on its tenements. The Group
considers it has complied with all relevant environmental obligations.
INFORMATION ON DIRECTORS
Directors have been in office for the entire period unless otherwise stated.
PAUL CHAPMAN B.Comm, CA, Grad. Dip. Tax, MAICD, MAusIMM
Independent Non-Executive Chairman
DIRECTORS’ REPORT
DEAN TUCK B.Sc (Hons), FGAA, MAIG
Managing Director
Experience and expertise
Mr Tuck is an experienced geologist and exploration manager having worked across a wide range of commodities in
Australia, Brazil and Southeast Asia from project generation through to resource evaluation. He has held senior level
positions at BHP Billiton and ASX listed junior explorers. Mr Tuck has been instrumental in a number of discoveries including
the Strickland gold, Mallinda and Mallina LCT pegmatites and Wonmunna iron ore.
Interests in shares and options
20,710,317 shares and 38,500,000 options.
Other current directorships
Mr Tuck is a non-executive director of Caeneus Minerals Limited (ASX:CAD) (since July 2022).
Former directorships in the last 3 years
None.
IAN GORDON B.Comm, MAICD
Non-executive Director
Experience and Expertise
Mr Chapman is a company director with over 30 years in the resource sector. Mr Chapman has held senior
management roles across a range of commodity businesses and public companies in Australia and the USA. Mr
Chapman was a founding director and shareholder of Reliance Mining, Encounter Resources, Rex Minerals, Silver
Lake Resources, Black Cat Syndicate and Dreadnought Resources.
Experience and Expertise
Mr Gordon is a mining executive with extensive experience in transaction generation, project acquisition, mine
development and the management of public companies. Mr Gordon was formally an Executive Director and Managing
Director of Ramelius Resources Limited for seven years and Managing Director of Flinders Mines Limited for two years.
He holds a Bachelor of Commerce degree from Curtin University (WA).
Interests in shares and options
311,038,084 shares.
Interests in shares and options
48,175,187 shares.
Other current directorships
Mr Chapman is the non-executive chairman of Meeka Minerals Limited (ASX:MEK) (since May 2022).
Mr Chapman is a non-executive chairman of Black Cat Syndicate Limited (ASX:BC8) (since August 2017).
Mr Chapman is a non-executive chairman of Encounter Resources Limited (ASX:ENR) (since October 2005).
Mr Chapman is a non-executive director of Sunshine Gold Limited (ASX:SHN) (since November 2020).
Former directorships in the last 3 years
Avanco Resources.
Other current directorships
Mr Gordon is a director of Woomera Mining Limited (ASX:WML) (since October 2020).
Former directorships in the last 3 years
Mr Gordon resigned as director of ASX listed company Auteco Minerals (ASX:AUT) on 28 January 2020.
PHILIP CRUTCHFILED B. Comm, LLB (Hons), LL.M LSE
Non-executive Director
(Appointed 13 September 2022)
Experience and expertise
Philip is a senior barrister specialising in commercial law. Philip is also a long standing and third largest shareholder in
Dreadnought.
Interests in shares and options
67,456,557 shares.
Other current directorships
Philip is also a director of Black Cat Syndicate Limited (ASX:BC8) (since 6 April 2021), Hamelin Gold Limited
(ASX:HMG) (since 31 August 2021), Encounter Resources Limited (ASX:ENR) (since 9 October 2019) and Applyflow
Limited (ASX:AFW) (since 17 October 2019).
14
15
16
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
PAUL PAYNE B.AppSc Grad Dip Min Ec, FAusIMM
Non-executive Director
(Appointed 21 December 207) (Resigned 13 September 2022)
Experience and expertise
Mr Payne is a geologist and holds in excess of 30 years’ experience in mining including 10 years independent consulting
across a range of commodities and jurisdictions. Mr Payne has extensive technical experience in the evaluation of
mineral deposits from early stage exploration to definitive feasibility studies. Recent exploration experience includes
implementation and management of gold exploration for Dacian Gold Limited in WA and Rift Valley Resources Limited
in Tanzania. Mr Payne has held corporate roles including Technical Director and Managing Director of ASX listed
companies including founding Managing Director of Dacian Gold Limited, and was instrumental in the Company’s
successful IPO and making the major initial gold discovery at its Mount Morgans project.
Interests in shares and options
47,277,781 shares.
Other current directorships
Mr Payne is a director of Carnaby Resources Limited (ASX:CNB) (since July 2016) and a director of Essential Metals
Limited (ASX:ESS) (since January 2020).
COMPANY SECRETARY
JESSAMYN LYONS BComm, AGIA ICSA (Grad Dip Applied Corporate Governance)
Appointed 1 July 2020.
Experience and expertise
Ms Lyons is a Chartered Secretary, a Fellow of the Governance Institute of Australia and holds a Bachelor of Commerce
from the University of Western Australia with majors in Investment Finance, Corporate Finance and Marketing. Ms Lyons
also has 15 years of experience working in the stockbroking and banking industries and has held various positions with
Macquarie Bank, UBS Investment Bank (London) and more recently Patersons Securities.
Meetings of directors
The size of the Company does not warrant separate Audit & Risk, Remuneration and Nomination Committees at this
time, accordingly the full Board performs comprises these roles. The numbers of meetings of the Company's Board of
Directors held during the year ended 30 June 2022, and the numbers of meetings attended by each director were as
follows:
Meetings of directors
Paul Chapman
Dean Tuck
Ian Gordon
Paul Payne
A = Number of meetings attended
B = Number of meetings held during the time the director held office during the year and was eligible to attend
A
6
6
6
6
B
6
6
6
6
Indemnification and insurance of officers
The Company has indemnified the directors and officers of the Company for costs incurred, in their capacity as a director
or officer, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and officers of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
17
16
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility
on behalf of the Group for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of
the Corporations Act 2001.
Non-audit services
The Group may decide to employ the auditor on assignments additional to their statutory duties where the auditors’
expertise and experience with the Group are important.
The Board of directors is satisfied that the provision of any such non-audit services is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed
below did not compromise the external auditor’s independence for the following reasons:
•
•
all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set
by the Accounting Professional and Ethical Standards Board.
There were no fees for non-audit services paid or payable to the external auditors of the Company, their related practices
or non-related audit firms during the year ended 30 June 2022.
DIRECTORS’ REPORT
PAUL PAYNE B.AppSc Grad Dip Min Ec, FAusIMM
Non-executive Director
(Appointed 21 December 207) (Resigned 13 September 2022)
Experience and expertise
Mr Payne is a geologist and holds in excess of 30 years’ experience in mining including 10 years independent consulting
across a range of commodities and jurisdictions. Mr Payne has extensive technical experience in the evaluation of
mineral deposits from early stage exploration to definitive feasibility studies. Recent exploration experience includes
implementation and management of gold exploration for Dacian Gold Limited in WA and Rift Valley Resources Limited
in Tanzania. Mr Payne has held corporate roles including Technical Director and Managing Director of ASX listed
companies including founding Managing Director of Dacian Gold Limited, and was instrumental in the Company’s
successful IPO and making the major initial gold discovery at its Mount Morgans project.
Interests in shares and options
47,277,781 shares.
Other current directorships
Limited (ASX:ESS) (since January 2020).
Mr Payne is a director of Carnaby Resources Limited (ASX:CNB) (since July 2016) and a director of Essential Metals
JESSAMYN LYONS BComm, AGIA ICSA (Grad Dip Applied Corporate Governance)
Ms Lyons is a Chartered Secretary, a Fellow of the Governance Institute of Australia and holds a Bachelor of Commerce
from the University of Western Australia with majors in Investment Finance, Corporate Finance and Marketing. Ms Lyons
also has 15 years of experience working in the stockbroking and banking industries and has held various positions with
Macquarie Bank, UBS Investment Bank (London) and more recently Patersons Securities.
The size of the Company does not warrant separate Audit & Risk, Remuneration and Nomination Committees at this
time, accordingly the full Board performs comprises these roles. The numbers of meetings of the Company's Board of
Directors held during the year ended 30 June 2022, and the numbers of meetings attended by each director were as
COMPANY SECRETARY
Appointed 1 July 2020.
Experience and expertise
Meetings of directors
follows:
Paul Chapman
Dean Tuck
Ian Gordon
Paul Payne
Meetings of directors
A
6
6
6
6
B
6
6
6
6
A = Number of meetings attended
B = Number of meetings held during the time the director held office during the year and was eligible to attend
Indemnification and insurance of officers
The Company has indemnified the directors and officers of the Company for costs incurred, in their capacity as a director
or officer, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and officers of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
16
17
18
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Shares under option
At the date of this report unissued ordinary shares of the Group under option are:
Expiry date
Exercise price
Number of
options
Vested
Unvested
Amount
paid/payable by
recipient ($)
25/05/2023
30/06/2024
09/04/2024
01/10/2023
31/10/2023
02/07/2024
11/08/2024
26/11/2024
14/07/2025
$0.0060
$0.0050
$0.0050
$0.0100
$0.0200
$0.0400
$0.0600
$0.0600
$0.0650
20,000,000
20,000,000
3,500,000
3,500,000
-
-
30,000,000
22,500,000
7,500,000
2,750,000
1,375,000
1,375,000
750,000
375,000
375,000
16,500,000
8,250,000
8,250,000
2,000,000
1,000,000
1,000,000
2,000,000
8,500,000
-
-
2,000,000
8,500,000
-
-
-
-
-
-
-
Shares issued during or since year end as a result of exercise of options:
Date granted
Exercise price
Number of
shares issued
Date exercise
Amount paid for
shares ($)
18/10/2019
04/04/2019
16/08/2019
01/07/2020
15/01/2021
02/10/2020
02/10/2020
$0.0080
$0.0100
$0.0050
$0.0098
$0.0200
$0.0100
$0.0100
10,000,000
12/07/2021
10,000,000
04/08/2021
3,000,000
13/09/2021
5,479,452
13/09/2021
750,000
02/12/2021
1,250,000
02/12/2021
1,500,000
31/01/2022
80,000
100,000
15,000
53,699
15,000
12,500
15,000
19
18
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited
The remuneration report is set out under the following main headings:
A Principles used to determine the nature and amount of remuneration
B Details of remuneration
C Share-based compensation
D Shareholdings
E Use of Remuneration Consultants
F Relationship between remuneration and Company performance
G Key Management Personnel Loan
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
A Principles used to determine the nature and amount of remuneration
The Group's policy for determining the nature and amounts of remuneration of board members and senior executive
officers of the Group is outlined below.
The Company's Constitution specifies that the total amount of remuneration of non-executive directors shall be fixed from
time to time by a general meeting. The current maximum aggregate remuneration of non-executive directors has been
set at $300,000 per annum. Directors may apportion any amount up to this maximum amount amongst the non-executive
directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and other
expenses incurred in performing their duties as directors.
Non-executive and executive directors’ remuneration is by way of fees and statutory superannuation contributions. The
Company’s Incentive Options Plan (‘Plan”) was approved by shareholders on 30 November 2020. Directors are eligible
to participate in the Plan.
The Company's remuneration structure is based on a number of factors including the financial position of the Company
and the particular experience and performance of the individual in meeting key objectives of the Company. The Board is
responsible for assessing relevant employment market conditions and achieving the overall, long term objective of
maximising shareholder wealth, through the retention of high quality personnel.
The Company does not emphasise cash bonus schemes or other incentive based cash payments given the nature of the
Company's business as a mineral exploration entity. However, the Board may approve the payment of cash bonuses from
time to time in order to reward individual performance in achieving key objectives as considered appropriate by the Board.
The Company’s Incentive Option Plan enables the Board to offer eligible employees and directors options to acquire
ordinary fully paid shares in the Company. Under the terms of the Plan, options may be offered to the Company's eligible
employees at no cost or no more than nominal monetary consideration unless otherwise determined by the Board in
accordance with the terms and conditions of the Plan. The objective of the Plan is to align the interests of employees and
shareholders by providing employees of the Company with the opportunity to participate in the equity of the Company as
an incentive to achieve greater success and value for the Company and to maximise the long term performance of the
Company.
19
20
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Voting and comments made at the Company’s 2021 Annual General Meeting
Dreadnought Resources Limited received more than 99% of ‘yes’ votes on its remuneration report for the 2021 financial
year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
B Details of remuneration
This report details the nature and amount of remuneration for each key management person of the Company.
The names and positions held by directors and key management personnel of the Company during the financial year are:
•
•
•
•
Mr P Chapman – Chairman, non-executive (appointed 9 April 2019)
Mr D Tuck – Managing Director (appointed 9 April 2019)
Mr I Gordon – Director, non-executive (since 21 December 2017)
Mr P Payne – Director, non-executive (since 21 December 2017)
The remuneration policy of the Group has been designed to align directors’ objectives with shareholder and business
objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates.
By providing components of remuneration that are indirectly linked to share price appreciation (in the form of options and/or
performance rights), executive, business and shareholder objectives are aligned. The Board of Directors (“Board”) believes
the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and
manage the Company, as well as create goal congruence between directors and shareholders.
The remuneration policy and the relevant terms and conditions has been developed by the full Board as the Company
does not currently have a Remuneration Committee due to the size of the Company. In determining competitive
remuneration rates, the Board reviews trends among comparative companies and industry generally. It examines terms
and conditions for employee incentive schemes, benefit plans and share plans. Reviews are performed to confirm that
executive remuneration is in line with market practice and is reasonable in the context of Australian executive remuneration
practices.
The Company is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and
retaining talented executives, directors and executives are paid market rates associated with individuals in similar
positions, within the same industry.
(a) Executive remuneration – Mr D Tuck (appointed 9 April 2019)
Mr Dean Tuck, Managing Director, was employed by the Group in accordance with the terms and conditions outlined
within his service agreement dated 9 April 2019. For the year ended 30 June 2022, Mr Tuck received a base salary of
$255,750 in short term remuneration (2021: $200,000), with a further $25,575 in post-employment superannuation
contributions (2021: $19,000). Both parties may terminate the employment agreement by giving notice of termination to
each other on not less than one (1) months’ notice in writing.
The Group granted the Managing Director unlisted incentive options as follows:
- On 16 August 2019, 10,500,000 unlisted incentive options exercisable at $0.005 on or before 30 June 2024 vesting
immediately, with a fair value of $51,331. 3,000,000 of these options were exercised during the year (2021: 4,000,000).
- On 23 December 2019, 30,000,000 unlisted incentive options with a 5 year term vesting quarterly on an annual
basis at the end of every financial year.
Mr Tuck’s ability to exercise the 40,500,000 long term incentive options is subject to the following conditions:
- 10,500,000 unlisted incentive options (total expense of $51,332): vested immediately, may be exercised after grant
date and expire on 30 June 2024; and
20
21
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Voting and comments made at the Company’s 2021 Annual General Meeting
DIRECTORS’ REPORT
-
30,000,000 unlisted incentive options (total expense of $177,184): 25% may be exercised on or after each of 30
June 2020, 30 June 2021, 30 June 2022 and 30 June 2023, and expire on 9 April 2024.
Dreadnought Resources Limited received more than 99% of ‘yes’ votes on its remuneration report for the 2021 financial
year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
On 30 November 2021, 5,000,000 unlisted incentive options exercisable at $0.04 on or before 2 July 2024 with a value
of $186,900 were granted to the Managing Director. 50% will vest after 12 months from grant date and 50% after 24
months from grant date.
B Details of remuneration
(b) Non-Executive remuneration
The agreements in place during the 2022 financial year with the non-executive chairman, Paul Chapman and the non-
executive directors, Ian Gordon and Paul Payne are summarised below:
-
-
Term of agreement is renewed annually
Fee of $3,000 per month (plus minimum statutory superannuation entitlements) was paid for the 2022 financial
year
- No payment of termination benefits
- Annual election in writing to take base fee in options under the Company’s Incentive Option Plan
21
22
This report details the nature and amount of remuneration for each key management person of the Company.
The names and positions held by directors and key management personnel of the Company during the financial year are:
•
•
•
•
Mr P Chapman – Chairman, non-executive (appointed 9 April 2019)
Mr D Tuck – Managing Director (appointed 9 April 2019)
Mr I Gordon – Director, non-executive (since 21 December 2017)
Mr P Payne – Director, non-executive (since 21 December 2017)
The remuneration policy of the Group has been designed to align directors’ objectives with shareholder and business
objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates.
By providing components of remuneration that are indirectly linked to share price appreciation (in the form of options and/or
performance rights), executive, business and shareholder objectives are aligned. The Board of Directors (“Board”) believes
the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and
manage the Company, as well as create goal congruence between directors and shareholders.
The remuneration policy and the relevant terms and conditions has been developed by the full Board as the Company
does not currently have a Remuneration Committee due to the size of the Company. In determining competitive
remuneration rates, the Board reviews trends among comparative companies and industry generally. It examines terms
and conditions for employee incentive schemes, benefit plans and share plans. Reviews are performed to confirm that
executive remuneration is in line with market practice and is reasonable in the context of Australian executive remuneration
practices.
The Company is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and
retaining talented executives, directors and executives are paid market rates associated with individuals in similar
positions, within the same industry.
(a) Executive remuneration – Mr D Tuck (appointed 9 April 2019)
Mr Dean Tuck, Managing Director, was employed by the Group in accordance with the terms and conditions outlined
within his service agreement dated 9 April 2019. For the year ended 30 June 2022, Mr Tuck received a base salary of
$255,750 in short term remuneration (2021: $200,000), with a further $25,575 in post-employment superannuation
contributions (2021: $19,000). Both parties may terminate the employment agreement by giving notice of termination to
each other on not less than one (1) months’ notice in writing.
The Group granted the Managing Director unlisted incentive options as follows:
- On 16 August 2019, 10,500,000 unlisted incentive options exercisable at $0.005 on or before 30 June 2024 vesting
immediately, with a fair value of $51,331. 3,000,000 of these options were exercised during the year (2021: 4,000,000).
- On 23 December 2019, 30,000,000 unlisted incentive options with a 5 year term vesting quarterly on an annual
basis at the end of every financial year.
Mr Tuck’s ability to exercise the 40,500,000 long term incentive options is subject to the following conditions:
- 10,500,000 unlisted incentive options (total expense of $51,332): vested immediately, may be exercised after grant
date and expire on 30 June 2024; and
20
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Details of key management personnel remuneration
Short-Term
Post-employment
Long-
term
Share-
based
payments
TOTAL
Total
performance
related
Options
as % of
total
2022
Salary
fees
Cash
bonus
Non-
monetary
D Tuck
P Chapman
I Gordon
P Payne
Total
$
255,750
36,000
36,000
38,769
366,519
$
$
-
-
-
-
-
-
-
-
-
-
Accrued
annual
leave
$
19,231
-
-
-
19,231
Super-
annuation
Retirement
benefits
Termination
benefits
Incentive
plans
Options
$
25,575
3,600
3,600
3,863
36,638
$
-
-
-
-
-
$
-
-
-
-
-
$
-
-
-
-
-
$
83,721
-
-
-
83,721
$
384,277
39,600
39,600
42,632
506,109
%
-
-
-
-
-
%
22%
-
-
-
-
Short-Term
Post-employment
Long-
term
Share-
based
payments
TOTAL
Total
performance
related
Options
as % of
total
2021
Salary
fees
Cash
bonus
Non-
monetary
Super-
annuation
Retirement
benefits
Termination
benefits
Incentive
plans
Options
$
$
$
%
-
-
-
100%
-
-
-
-
-
-
-
-
*Appointed on 31 July 2019; resigned on 9 July 2020. Mr Day was engaged under a service contract with 133 North Trust to act as Company Secretary and Chief Financial Officer.
D Tuck
P Chapman
I Gordon
P Payne
N Day*
Total
$
200,000
-
36,000
36,000
3,992
275,992
$
19,000
-
3,420
3,420
-
25,840
242,167
114,182
39,420
39,420
3,992
439,181
-
114,182
-
-
-
114,182
%
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
Accrued
annual
leave
$
23,167
-
-
-
-
23,167
23
22
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
C Share-based compensation
Employee Incentive Options Plan
The Company has an Employee Incentive Options Plan approved by shareholders that enables the Board to offer eligible
employees and directors options to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, options
to acquire ordinary fully paid shares may be offered to the Company's eligible employees at no cost unless otherwise
determined by the Board in accordance with the terms and conditions of the Plan.
Options granted as remuneration
Incentive options were granted to key management personnel of the Company during the year. The terms and conditions
of each grant of options over ordinary shares affecting remuneration of key management personnel in this financial year or
future reporting years are as follows:
Name
Dean Tuck
Number of
options
granted
5,000,000
Grant date
Vesting date and
exercisable date
Expiry Date
Exercise
Price
24 November
2021
50% vest after 12
months, 50% vest after
24 months
02 July 2024
$0.04
Fair value
per option at
grant date
$0.0374
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the Company. Options vest based on the provision of
service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options
are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options
other than on their potential exercise.
Shares issued on exercise of remuneration options
On 13 September 2021, Paul Chapman exercised all of his 5,479,452 options granted as remuneration during the year
ended 30 June 2021 for an amount of $53,699. On 13 September 2021, Dean Tuck exercised 3,000,000 options granted
as remuneration during the year ended 30 June 2020 for an amount of $15,000.
23
24
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Directors' interests in shares and options
Directors' relevant interests in shares and options of the Company are disclosed below.
Options
The number of options held by key management personnel of the Group during the financial year is as follows:
Balance at
beginning of
year
Granted as
remuneration
during the
year
Options
exercised
Net change
other
Balance at
year end
Total vested
30/06/22
Total
exercisable
30/06/22
30 June 2022
Directors
P Chapman
I Gordon
P Payne
D Tuck
5,479,452
-
-
36,500,000
41,979,452
-
-
-
5,000,000
5,000,000
(5,479,452)
-
-
(3,000,000)
(8,479,452)
-
-
-
-
-
-
-
-
38,500,000
38,500,000
-
-
-
26,000,000
26,000,000
-
-
-
26,000,000
26,000,000
D
Shareholdings
The number of ordinary shares held by key management personnel of the Group during the financial year is as follows:
Balance at
beginning of year
Participation in
Placement
during the year
Issued on exercise
of options during
the year
Other changes
during the year
Balance at end
of year
30 June 2022
Directors
P Chapman
D Tuck
I Gordon
P Payne
304,130,061
17,710,317
47,603,758
46,706,352
416,150,488
1,428,571
-
571,429
571,429
2,571,429
5,479,452
3,000,000
-
-
8,479,452
-
-
-
-
-
311,038,084
20,710,317
48,175,187
47,277,781
427,201,369
25
24
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Directors' interests in shares and options
Directors' relevant interests in shares and options of the Company are disclosed below.
The number of options held by key management personnel of the Group during the financial year is as follows:
Granted as
Balance at
remuneration
beginning of
during the
year
year
Options
exercised
Net change
other
Balance at
Total vested
exercisable
year end
30/06/22
30/06/22
Total
5,479,452
-
-
-
-
-
(5,479,452)
-
-
-
-
-
-
-
-
-
-
-
36,500,000
5,000,000
(3,000,000)
38,500,000
26,000,000
26,000,000
41,979,452
5,000,000
(8,479,452)
38,500,000
26,000,000
26,000,000
-
-
-
-
-
D
Shareholdings
The number of ordinary shares held by key management personnel of the Group during the financial year is as follows:
Participation in
Issued on exercise
Balance at
Placement
of options during
Other changes
Balance at end
beginning of year
during the year
the year
during the year
of year
Options
30 June 2022
Directors
P Chapman
I Gordon
P Payne
D Tuck
30 June 2022
Directors
P Chapman
D Tuck
I Gordon
P Payne
DREADNOUGHT RESOURCES LIMITED
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
D
Shareholdings (Continued)
Other transactions with key management personnel and their related parties
Transactions with key management personnel and their related parties recognised during the year (excluding re-
imbursement of expenses incurred on behalf of the Company) relating to directors and their director related entities were
as follows:
Director
Transaction
P Chapman
Payments to a director related entity for office rental (ie Stone
Poneys Nominees Pty Ltd atf Chapman Superannuation Fund).
The lease has been terminated effective 31 December 2021.
No amounts were owing to related parties as at 30 June 2022 (2021: nil).
E Use of Remuneration Consultants
Consolidated
2022
$
9,350
2021
$
11,627
The Board seeks external remuneration advice as required. No such advice was obtained during the financial year ended
30 June 2022.
F Relationship between remuneration and Company performance
Remuneration for certain individuals is directly linked to the performance of the Group. Details of the earnings and total
shareholders return for the last five years. Due to the nature of the Group’s principal activities, the Directors assess the
performance of the Group with regard to the annual volume weighted share price of the Group’s ordinary shares listed on
the ASX and the market capitalisation of the Group.
304,130,061
17,710,317
47,603,758
46,706,352
416,150,488
1,428,571
-
571,429
571,429
2,571,429
5,479,452
3,000,000
-
-
8,479,452
-
-
-
-
-
311,038,084
20,710,317
48,175,187
47,277,781
427,201,369
Operating revenue
Net profit/(loss)
Share price at year end
Annual VWAP
Market capitalisation at year end
2022
$
398,289
(1,433,764)
0.0470
0.0424
2021
$
389,814
(1,277,865)
0.0240
0.0184
2020
$
72,163
(1,215,539)
0.0060
0.066
2019
$
3,474
(688,822)
0.0040
0.0042
2018
$
3,993
(324,155)
0.0050
0.0048
Market capitalisation as at 30 June 2022 was $133,528,577.
G Key Management Personnel Loan
There were no loans issued to key management personnel during the financial year (2021: Nil).
Remuneration report ends.
24
25
26
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Auditor’s independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
The Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors.
Dean Tuck
Managing Director
Dated 28 September 2022
27
26
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Auditor’s independence declaration
immediately after this directors' report.
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
The Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors.
PKF Perth
Dean Tuck
Managing Director
Dated 28 September 2022
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF DREADNOUGHT RESOURCES LIMITED
In relation to our audit of the financial report of Dreadnought Resources Limited for the year ended 30 June 2022,
to the best of my knowledge and belief, there have been no contraventions of the auditor independence
requirements of the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SHANE CROSS
PARTNER
28 SEPTEMBER 2022
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
26
28
DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the Year Ended 30 June 2022
Other income
Gain on fair value of financial asset
Grant income
Administration expenses
Finance expense
Exploration expenditure
Legal fees
Depreciation expense
Impairment of exploration expenditure
Director and employee benefits expense
Loss from continuing operations before income tax
Income tax benefit
Consolidated
Note
30 June 2022
$
30 June 2021
$
2
11
3
3
3
10
3
4
398,289
307,314
50,000
-
-
82,500
(793,691)
(669,158)
(42,312)
(76,477)
(268,852)
(282,247)
(28,912)
(20,191)
(62,114)
-
(123,715)
(315,169)
(562,457)
(304,437)
(1,433,764)
(1,277,865)
-
-
Loss from continuing operations before income tax
(1,433,764)
(1,277,865)
Other comprehensive loss, net of income tax
Equity instruments at fair value through other comprehensive loss
-
-
Total comprehensive loss for the year
(1,433,764)
(1,277,865)
Loss per share for loss attributable to the ordinary equity holders of the Company
Cents
Basic loss per share (cents)
Diluted loss per share (cents)
Note
Cents
17
17
(0.05)
(0.05)
(0.06)
(0.06)
The above consolidated statement of profit or loss and comprehensive income should be read in conjunction with the
accompanying notes.
29
28
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Financial Position
As at 30 June 2022
Other income
398,289
307,314
Gain on fair value of financial asset
50,000
Consolidated
30 June 2022
30 June 2021
Note
$
2
11
3
3
3
10
3
4
-
82,500
(793,691)
(669,158)
(42,312)
(76,477)
(268,852)
(282,247)
(28,912)
(20,191)
(62,114)
(123,715)
(315,169)
(562,457)
(304,437)
$
-
-
-
-
Grant income
Administration expenses
Finance expense
Exploration expenditure
Legal fees
Depreciation expense
Impairment of exploration expenditure
Director and employee benefits expense
Income tax benefit
Loss from continuing operations before income tax
(1,433,764)
(1,277,865)
Loss from continuing operations before income tax
(1,433,764)
(1,277,865)
Other comprehensive loss, net of income tax
Equity instruments at fair value through other comprehensive loss
Total comprehensive loss for the year
(1,433,764)
(1,277,865)
-
-
Loss per share for loss attributable to the ordinary equity holders of the Company
Cents
Basic loss per share (cents)
Diluted loss per share (cents)
Note
Cents
17
17
(0.05)
(0.05)
(0.06)
(0.06)
The above consolidated statement of profit or loss and comprehensive income should be read in conjunction with the
accompanying notes.
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Exploration asset held for sale
Financial assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right-of-use-assets
Exploration assets
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Lease liability
Total Current Liabilities
Non-Current Liabilities
Lease liability
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
Note
30 June 2022
$
30 June 2021
$
6
7
8
10
11
9
9
10
12
13
13
14
2,501,971
86,172
150,446
-
150,000
2,645,136
157,172
334,613
100,000
-
2,888,589
3,236,921
291,498
198,782
17,660,998
-
-
10,371,428
18,151,278
10,371,428
21,039,867
13,608,349
1,222,313
95,023
29,742
807,641
62,986
-
1,347,078
870,627
177,577
-
-
578,947
177,577
578,947
1,524,655
1,449,574
19,515,212
12,158,775
15
16
60,954,153
770,418
(42,209,359)
52,030,339
904,031
(40,775,595)
19,515,212
12,158,775
28
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
29
30
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
Attributable to shareholders
Dreadnought Resources Limited
Issued
Capital
Accumulated
Losses
Equity
Reserve
Options
Reserve
Total
$
$
$
$
$
Balance at 1 July 2020
43,389,962
(39,497,730)
39,520
664,500
4,596,252
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
(Note 15)
Exercise of options (Note 15)
Equity component of the
convertible notes
Option issues, net of transaction costs
and tax (Note 16)
Balance at 30 June 2021
-
-
-
(1,277,865)
-
(1,277,865)
7,987,877
652,500
-
-
-
-
-
-
-
-
-
-
-
16,199
-
-
-
-
-
-
(1,277,865)
-
(1,277,865)
7,987,877
652,500
16,199
-
183,812
183,812
52,030,339
(40,775,595)
55,719
848,312
12,158,775
Balance at 1 July 2021
52,030,339
(40,775,595)
55,719
848,312
12,158,775
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
(Note 15)
Conversion of convertible notes
Exercise of options (Note 15)
Option vesting and issues, net of
transaction costs and tax (Note 16)
Balance at 30 June 2022
-
-
-
(1,433,764)
-
(1,433,764)
-
-
-
-
-
-
(1,433,764)
-
(1,433,764)
7,509,657
655,719
758,438
-
-
-
-
(55,719)
-
-
-
(467,239)
7,509,657
600,000
291,199
-
60,954,153
-
(42,209,359)
389,345
770,418
389,345
19,515,212
-
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
31
30
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2022
Balance at 1 July 2020
43,389,962
(39,497,730)
39,520
664,500
4,596,252
Payments to suppliers and employees
(1,262,281)
(704,365)
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated
Note
30 June 2022
$
30 June 2021
$
Interest received
Interest and other costs of finance paid
Receipts from JV Partner
Government grants
5,167
4,035
(5,945)
(60,278)
502,169
203,279
-
100,973
Net cash used in operating activities
26
(760,890)
(456,356)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for exploration assets
Payment for property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Capital raising costs
Exercise of options
Payment of lease liability
Balance at 30 June 2022
60,954,153
(42,209,359)
389,345
389,345
770,418
19,515,212
Net cash provided by financing activities
(6,794,242)
(6,002,235)
(325,215)
(749)
(7,119,457)
(6,002,984)
8,000,000
8,535,998
(518,843)
(548,121)
291,199
652,500
(35,174)
-
7,737,182
8,640,377
Attributable to shareholders
Dreadnought Resources Limited
Issued
Capital
Accumulated
Losses
Equity
Reserve
Options
Reserve
Total
$
$
$
$
$
-
-
-
-
-
-
-
-
-
(1,277,865)
(1,277,865)
(1,433,764)
(1,433,764)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,277,865)
-
(1,277,865)
7,987,877
652,500
16,199
(1,433,764)
-
(1,433,764)
-
-
-
-
-
-
-
-
-
-
-
7,509,657
655,719
758,438
(55,719)
(467,239)
7,509,657
600,000
291,199
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
(Note 15)
Exercise of options (Note 15)
Equity component of the
convertible notes
Option issues, net of transaction costs
and tax (Note 16)
Balance at 30 June 2021
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
(Note 15)
Conversion of convertible notes
Exercise of options (Note 15)
Option vesting and issues, net of
transaction costs and tax (Note 16)
7,987,877
652,500
16,199
52,030,339
(40,775,595)
55,719
848,312
12,158,775
183,812
183,812
Balance at 1 July 2021
52,030,339
(40,775,595)
55,719
848,312
12,158,775
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Cash and cash equivalents at beginning of year
2,645,136
464,099
Net increase/(decrease) in cash and cash equivalents held
(143,165)
2,181,037
Cash and cash equivalents at end of financial year
2,501,971
2,645,136
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
30
31
32
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1
Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated Financial Statements are set out
below. These policies have been consistently applied to all the periods presented, unless otherwise stated. The
Financial Statements are for the consolidated entity consisting of Dreadnought Resources Limited and its subsidiaries.
(a)
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and interpretations issued by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. Dreadnought Resources Limited is a for profit entity for the purpose of preparing the
financial statements.
(i) Compliance with IFRS
These consolidated financial statements also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared on an accrual basis, under the historical cost convention,
as modified by the revaluation of financial assets through other comprehensive income.
(iii) Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the
Group.
(b)
Going concern
The financial statements have been prepared on a going concern basis which assumes the Company and Consolidated
Group will have sufficient funds to pay its debts, as and when they become payable, for a period of at least 12 months
from the date the financial report is authorised for issue.
As at 30 June 2022, the Consolidated Group had net assets of $19,515,212 (2021: $12,158,775) and a working capital
surplus of $1,541,511 (2021: working capital surplus of $2,366,294). Included in non-current liabilities as at 30 June
2021 are Convertible Notes of $578,947 which have been fully converted into ordinary shares in 2022. In addition,
during the financial year, the Consolidated Group had cash outflows from operating activities of $760,890 (2021:
$456,356) and cash outflows from investing activities (including payments for exploration) of $7,119,457 (2021:
6,002,984).
In August 2022, the Group completed a placement at $0.06 per share to institutional and sophisticated investors raising
$12,000,000 (before costs). Directors contributed $350,000 to the placement subject to shareholder approval at the
AGM to be held in November 2022.The Group’s cash flow forecast out to 30 September 2023 indicates that the Group
will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from
the date of signing this financial report.
To address the future funding requirements of the Group, the directors have:
•
•
developed a business plan that provides encouragement for investors to invest; and
continued their focus on maintaining an appropriate level of corporate overheads and projects spending in line
with the Group’s available cash.
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of preparation is appropriate.
33
32
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1
Summary of Significant Accounting Policies
1
Summary of Significant Accounting Policies (continued)
The principal accounting policies adopted in the preparation of these consolidated Financial Statements are set out
(c) Basis of Consolidation
below. These policies have been consistently applied to all the periods presented, unless otherwise stated. The
Financial Statements are for the consolidated entity consisting of Dreadnought Resources Limited and its subsidiaries.
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and interpretations issued by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. Dreadnought Resources Limited is a for profit entity for the purpose of preparing the
(a)
Basis of Preparation
financial statements.
(i) Compliance with IFRS
These consolidated financial statements also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared on an accrual basis, under the historical cost convention,
as modified by the revaluation of financial assets through other comprehensive income.
(iii) Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the
Group.
(b)
Going concern
The financial statements have been prepared on a going concern basis which assumes the Company and Consolidated
Group will have sufficient funds to pay its debts, as and when they become payable, for a period of at least 12 months
from the date the financial report is authorised for issue.
As at 30 June 2022, the Consolidated Group had net assets of $19,515,212 (2021: $12,158,775) and a working capital
surplus of $1,541,511 (2021: working capital surplus of $2,366,294). Included in non-current liabilities as at 30 June
2021 are Convertible Notes of $578,947 which have been fully converted into ordinary shares in 2022. In addition,
during the financial year, the Consolidated Group had cash outflows from operating activities of $760,890 (2021:
$456,356) and cash outflows from investing activities (including payments for exploration) of $7,119,457 (2021:
6,002,984).
In August 2022, the Group completed a placement at $0.06 per share to institutional and sophisticated investors raising
$12,000,000 (before costs). Directors contributed $350,000 to the placement subject to shareholder approval at the
AGM to be held in November 2022.The Group’s cash flow forecast out to 30 September 2023 indicates that the Group
will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from
the date of signing this financial report.
To address the future funding requirements of the Group, the directors have:
developed a business plan that provides encouragement for investors to invest; and
•
•
with the Group’s available cash.
continued their focus on maintaining an appropriate level of corporate overheads and projects spending in line
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of preparation is appropriate.
The Group financial statements consolidate those of the Parent and all of its subsidiaries. The Parent controls a subsidiary
if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June. All transactions and
balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions
between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises
the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in
profit or loss. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are
recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets
that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners
of the parent and the non-controlling interests based on their respective ownership interests.
(d)
Investments in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required. Separate joint venture entities providing joint ventures with an interest to
net assets are classified as a joint venture and accounted for using the equity method.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to
each liability of the arrangement. The Group’s interests in assets, liabilities, revenue and expenses of joint operations are
included in the respective line items of the consolidated financial statements. Gains and losses resulting from sales to a
joint operation are recognised to the extent of the other parties’ interests. When the Group makes purchases from a joint
operation, it does not recognise its share of the gains and losses from the joint arrangement until it resells those
goods/assets to a third party.
(e)
Comparative Amounts
Comparatives are consistent with prior years, unless otherwise stated. Where a change in comparatives has also affected
the opening retained earnings previously presented in a comparative period, an opening statement of financial position at
the earliest date of the comparative period has been presented.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
iv
(f)
Summary of Significant Accounting Policies (continued)
Income Tax
The tax expense recognised in the profit or loss and other comprehensive income relates to current income
tax expense plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused
tax losses during the year).
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for
the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using
the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts
of tax bases of assets and liabilities to the carrying amounts in the consolidated financial statements. Deferred
tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using the
assumption that the carrying amount of the asset will be recovered through sale.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences and
losses can be utilised.
Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised
amounts and there is an intention either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against
current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied
by the same taxation authority on either the same taxable entity or different taxable entities which intend either
to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period
except where the tax arises from a transaction which is recognised in other comprehensive income or equity,
in which case the tax is recognised in other comprehensive income or equity respectively.
Dreadnought Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity in the Group recognises its own current and
deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to
allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the
subsidiaries are immediately transferred to the head entity.
The tax consolidated group has entered into a tax funding arrangement whereby each company in the Group
contributes to the income tax payable by the Group in proportion to their contribution to the Group’s taxable
income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts
recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to
the head entity.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
iv
(f)
Income Tax
The tax expense recognised in the profit or loss and other comprehensive income relates to current income
tax expense plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused
tax losses during the year).
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for
the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using
the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts
of tax bases of assets and liabilities to the carrying amounts in the consolidated financial statements. Deferred
tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using the
assumption that the carrying amount of the asset will be recovered through sale.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences and
losses can be utilised.
simultaneously.
Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised
amounts and there is an intention either to settle on a net basis or to realise the asset and settle the liability
Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against
current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied
by the same taxation authority on either the same taxable entity or different taxable entities which intend either
to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period
except where the tax arises from a transaction which is recognised in other comprehensive income or equity,
in which case the tax is recognised in other comprehensive income or equity respectively.
Dreadnought Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity in the Group recognises its own current and
deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to
allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the
subsidiaries are immediately transferred to the head entity.
The tax consolidated group has entered into a tax funding arrangement whereby each company in the Group
contributes to the income tax payable by the Group in proportion to their contribution to the Group’s taxable
income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts
recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to
the head entity.
34
Summary of Significant Accounting Policies (continued)
iv
Summary of Significant Accounting Policies (continued)
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(g)
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains a lease or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability are recognised by the Group where the Group
is a lessee. However, all contracts that are classified as short-term leases (i.e. a lease with a remaining lease
term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
•
•
•
•
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest. Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects
that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life
of the underlying asset.
(h)
Revenue and other income (including government grants)
Revenue is recognised when or as the Group transfers control of goods or services to a customer at the amount
to which the Group expected to be entitled. If the consideration promised includes a variable amount, the Group
estimates the amount of consideration to which it will be entitled.
Revenue is measured at the transaction price received or receivable (which excludes estimates of variable
consideration) allocated to the performance obligation satisfied and represents amounts receivable for services
provided in the normal course of business, net of discounts, VAT, GST and other sales related taxes. Where
the expected period between transfer of a promised service and payment from the customer is one year or
less no adjustment for a financing component is made.
Revenue arising from the provision of services is recognised when and to the extent that the customer
simultaneously receives and consumes the benefits of the Group’s performance or the Group does not create
an asset with an alternative use but has an enforceable right to payment for performance completed to date.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
Government assistance revenue is recognised when it is received or when the right to receive payment is
established.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
(i)
Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables
in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority
is classified as operating cash flows.
(j)
Property, Plant and Equipment
Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any
impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the
costs of dismantling and restoring the asset, where applicable.
Plant and equipment
Plant and equipment is measured on a cost basis. The carrying amount of plant and equipment is reviewed
annually by directors to ensure it is not in excess of the recoverable amount. The recoverable amount is
assessed on the basis of the expected net cash flows that will be received from the assets’ employment and
subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Subsequent costs are included in the assets’ carrying amounts or recognised as separate assets as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost can be measured reliably. All other repairs and maintenance are charged to the statement
of profit or loss and other comprehensive income during the financial year in which they are incurred.
Depreciation
The depreciable amount of all property, plant and equipment, except for freehold land is depreciated on a
reducing balance method from the date that management determine that the asset is available for use. The
depreciation rates used for each class of depreciable assets vary from 25% to 40%. Where the asset qualifies
for the ATO instant write-off deduction, it is written off in the statement of profit or loss and other comprehensive
income.
(k)
Financial instruments
Classification and Measurement
Under AASB 9, the Group measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs. Under AASB 9, debt financial instruments are
subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other
comprehensive income (FVOCI).
Classification is based on two criteria:
• The Group’s business model for managing the assets; and
• Whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on
the principal amount outstanding (the ‘SPPI criterion’).
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
1 Summary of Significant Accounting Policies (continued)
(i)
Goods and Services Tax (GST)
(k)
Financial instruments (continued)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables
in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority
is classified as operating cash flows.
(j)
Property, Plant and Equipment
Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any
impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the
costs of dismantling and restoring the asset, where applicable.
Plant and equipment
Plant and equipment is measured on a cost basis. The carrying amount of plant and equipment is reviewed
annually by directors to ensure it is not in excess of the recoverable amount. The recoverable amount is
assessed on the basis of the expected net cash flows that will be received from the assets’ employment and
subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Subsequent costs are included in the assets’ carrying amounts or recognised as separate assets as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost can be measured reliably. All other repairs and maintenance are charged to the statement
of profit or loss and other comprehensive income during the financial year in which they are incurred.
Depreciation
income.
The depreciable amount of all property, plant and equipment, except for freehold land is depreciated on a
reducing balance method from the date that management determine that the asset is available for use. The
depreciation rates used for each class of depreciable assets vary from 25% to 40%. Where the asset qualifies
for the ATO instant write-off deduction, it is written off in the statement of profit or loss and other comprehensive
(k)
Financial instruments
Classification and Measurement
Under AASB 9, the Group measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs. Under AASB 9, debt financial instruments are
subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other
comprehensive income (FVOCI).
Classification is based on two criteria:
• The Group’s business model for managing the assets; and
• Whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on
the principal amount outstanding (the ‘SPPI criterion’).
The classification and measurement of the Group’s debt financial assets are, as follows:
• Debt instruments are amortised cost for financial assets that are held within a business model with the
objective to hold the financial assets in order to collect contractual cash flows that meet the SPPI criterion.
This category includes the Group’s trade and other receivables.
Other financial assets are classified and subsequently measured, as follows:
• Equity instruments at FVOCI, with no recycling of gains or losses to profit or loss on derecognition. This
category only includes equity instruments which the Group has irrevocably elected to so classify upon initial
recognition or transition.
Impairment
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant financing component.
Where applicable, in measuring the expected credit losses, the trade receivables are assessed on a collective
basis as they possess shared credit risk characteristics. They are grouped based on the days past due.
The expected loss rates are based on the historic payment profile for as well as the corresponding historical
credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking
macroeconomic factors affecting the customer’s ability to settle the amount outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make
payments within 180 days from the invoice date and failure to engage with the Group on alternative payment
arrangement amongst others is considered indicators of no reasonable expectation of recovery.
Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes that can be converted to
ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary
with changes in fair value.
The liability component of compound financial instruments is initially recognised at the fair value of a similar
liability that does not have an equity conversion option. The equity component is initially recognised at the
difference between the fair value of the compound financial instrument as a whole and the fair value of the
liability component. Any directly attributable transaction costs are allocated to the liability and equity
components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial instrument
is not remeasured.
Interest related to the financial liability is recognised in profit or loss. On conversion at maturity, the financial
liability is reclassified to equity and no gain or loss is recognised.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
(l)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets
are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
(m)
Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments
with original maturities of twelve months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Any bank overdrafts the
Group have are shown within borrowings in current liabilities in the consolidated statement of financial position.
(n)
Employee benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled
wholly within twelve months after the end of the period in which the employees render the related service.
Examples of such benefits include wages and salaries and non-monetary benefits. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The Group’s liabilities for long service leave are included in other long term benefits as they are not expected
to be settled wholly within twelve months after the end of the period in which the employees render the related
service. They are measured at the present value of the expected future payments to be made to employees.
The expected future payments incorporate anticipated future wage and salary levels, experience of employee
departures and periods of service. Any re-measurements arising from experience adjustments and changes
in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if
the Group does not have an unconditional right to defer settlement for at least twelve (12) months after the
reporting period, irrespective of when the actual settlement is expected to take place.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
1 Summary of Significant Accounting Policies (continued)
(l)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets
are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
(m)
Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments
with original maturities of twelve months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Any bank overdrafts the
Group have are shown within borrowings in current liabilities in the consolidated statement of financial position.
(n)
Employee benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled
wholly within twelve months after the end of the period in which the employees render the related service.
Examples of such benefits include wages and salaries and non-monetary benefits. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The Group’s liabilities for long service leave are included in other long term benefits as they are not expected
to be settled wholly within twelve months after the end of the period in which the employees render the related
service. They are measured at the present value of the expected future payments to be made to employees.
The expected future payments incorporate anticipated future wage and salary levels, experience of employee
departures and periods of service. Any re-measurements arising from experience adjustments and changes
in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if
the Group does not have an unconditional right to defer settlement for at least twelve (12) months after the
reporting period, irrespective of when the actual settlement is expected to take place.
(o)
Loss per share
Dreadnought Resources Ltd presents basic and diluted loss per share information for its ordinary shares.
Basic loss per share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after income tax effect
of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming the conversion of
all dilutive potential ordinary shares.
(p)
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
(q)
Share-Based Payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees and non-
employees. The fair value of the equity to which employees become entitled is measured at grant date and
recognised as an expense over the vesting period, with a corresponding increase to an equity account. The
fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using a Black
Scholes pricing model which incorporates all market vesting conditions. The amount to be expensed is
determined by reference to the fair value of the options or shares granted. This expense takes in account any
market performance conditions and the impact of any non-vesting conditions but ignores the effect of any
service and non-market performance vesting conditions.
Non-market vesting conditions are taken into account when considering the number of options expected to
vest. At the end of each reporting period, the Group revises its estimate of the number of options which are
expected to vest based on the non-market vesting conditions. Revisions to the prior period estimate are
recognised in profit or loss and equity.
If the Group modifies the terms or conditions of the equity instruments granted in a manner that reduces the
total fair value of the share-based payment arrangement, or is not otherwise beneficial to the employee, the
Group shall nevertheless continue to account for the services received as consideration for the equity
instruments granted as if that modification had not occurred. In addition, the Group recognises the effect of
modifications that increase the total fair value of the share-based payment arrangement or are otherwise
beneficial to the employee.
(r)
Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves. As the asset is not
available for use it is not depreciated or amortised.
Accumulated costs in relation to an abandoned area are impaired in full against profit or loss in the period in
which the decision to abandon that area is made.
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.
38
39
40
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
(s)
Reserves
FVOCI reserves represent financial assets at fair value through other comprehensive income reserve. The
reserve records fair value change of equity instruments. The equity reserve represents the equity component
(conversion rights) on the issue of unsecured convertible notes.
(t)
Key estimates and judgments
The preparation of the consolidated financial statements requires management to make estimates and
judgments. These estimates and judgments are continually evaluated and are based on historical experience
and other factors, including expectations of future events that may have a financial impact on the Group and
that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
(i) Estimated impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that
may lead to impairment of assets as noted in note 1(l). Where an impairment trigger exists, the recoverable
amount of the asset is determined.
(ii) Exploration and evaluation
The Group policy for exploration and evaluation is discussed in note 1 (r). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by
future sale or exploration, then the relevant capitalised amount will be written off through the statement of profit
or loss.
(Iii) Compound financial instrument
The Group’s policy for compound financial instrument is discussed in Note 1(k). The fair value of the liability
component is determined based on the contractual stream of future cash flows which is discounted at the rate
of interest that would apply to an identical financial instrument without the conversion option. The Group uses
its judgement to determine the discount rate based on the market interest rates existing at the end of each
reporting period.
(iv) Estimation of tax losses carried forward
Potential future income tax benefits attributable to gross tax losses of $43,532,798 (2021: $34,898,311) carried
forward have not been brought to account at 30 June 2022 because the directors do not believe it is appropriate
to regard realisation of the future tax benefit as probable. These benefits will only be obtained if:
a.
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the losses and deductions to be released;
the Group continues to comply with the conditions for deductibility imposed by the law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for
the losses.
b.
c.
Tax losses carried forward have no expiry date.
40
41
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
(s)
Reserves
FVOCI reserves represent financial assets at fair value through other comprehensive income reserve. The
reserve records fair value change of equity instruments. The equity reserve represents the equity component
(conversion rights) on the issue of unsecured convertible notes.
(t)
Key estimates and judgments
The preparation of the consolidated financial statements requires management to make estimates and
judgments. These estimates and judgments are continually evaluated and are based on historical experience
and other factors, including expectations of future events that may have a financial impact on the Group and
that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
(i) Estimated impairment
amount of the asset is determined.
(ii) Exploration and evaluation
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that
may lead to impairment of assets as noted in note 1(l). Where an impairment trigger exists, the recoverable
The Group policy for exploration and evaluation is discussed in note 1 (r). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by
future sale or exploration, then the relevant capitalised amount will be written off through the statement of profit
or loss.
(Iii) Compound financial instrument
The Group’s policy for compound financial instrument is discussed in Note 1(k). The fair value of the liability
component is determined based on the contractual stream of future cash flows which is discounted at the rate
of interest that would apply to an identical financial instrument without the conversion option. The Group uses
its judgement to determine the discount rate based on the market interest rates existing at the end of each
reporting period.
(iv) Estimation of tax losses carried forward
Potential future income tax benefits attributable to gross tax losses of $43,532,798 (2021: $34,898,311) carried
forward have not been brought to account at 30 June 2022 because the directors do not believe it is appropriate
to regard realisation of the future tax benefit as probable. These benefits will only be obtained if:
a.
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the losses and deductions to be released;
the Group continues to comply with the conditions for deductibility imposed by the law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for
b.
c.
the losses.
Tax losses carried forward have no expiry date.
40
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Summary of Significant Accounting Policies (continued)
(u)
Joint control
The Group’s accounting policy for Joint Arrangements is set out in Note 1(d). AASB 11 Joint Arrangements
requires an investor to have contractually agreed the sharing of control when making decisions about the
relevant activities (in other words requiring the unanimous consent of the parties sharing control). However,
what these activities are is a matter of judgement. As at the reporting date 30 June 2022, the Group does not
have any Joint Arrangements as defined in this policy. While there are agreements in place with other parties
(for the Group’s 80% interest in certain tenements which form part of its Tarraji-Yampi project), there is no joint
control over decisions about relevant activities required to progress these projects. For the Tarraji-Yampi
project, it is the view of the Group that it controls this project through its 80% interest.
(v)
Financial report
The financial report was authorised for issue on 28 September 2022 by the Board of Directors.
(w)
Adoption of new and revised accounting standards and interpretations
In the year ended 30 June 2022, the directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting periods
beginning on or after 1 July 2022. As a result of this review, the directors have determined that there is no
material impact of the new and revised Standards and Interpretations on the Group and, therefore, no material
change is necessary to the Group’s accounting policies.
(x)
New accounting standards and interpretations that are not yet mandatory
The Company has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Amendments to AASB 101 clarify the criteria used to determine whether liabilities are classified as current or
non-current. These amendments clarify that current or non-current classification is based on whether an entity
has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after
the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods,
services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion
feature classified as an equity instrument separately from the liability component of a compound financial
instrument. The amendments are effective for annual reporting periods beginning on or after 1 January 2023.
The Group is currently assessing the impact of new accounting standards and amendments. The Group does
not believe that the amendments to AASB 101 will have a significant impact on the classification of its liabilities.
41
42
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
2 Other Income
Receipts from JV
Option fee income (Note 9(v))
Others
3 Expenses
Administration expenses
Compliance and regulatory
Computer expenses
Consulting fees (a)
Insurance
Seminar/conference
Share registry
Travel and accommodation
Marketing / investor relations
Other
(a) Consulting fees
Accounting and secretarial services
Tenement related
Director and employee benefit expenses
Non-executive directors’ fees
Share-based payment (Note 16 and 27)
- Directors
- Employees
Superannuation
Other employee benefit
Consolidated
30 June 2022
$
393,122
-
5,167
30 June 2021
$
203,279
100,000
4,035
398,289
307,314
103,577
28,914
193,494
29,635
45,719
36,860
41,633
142,165
171,694
119,764
47,834
243,290
33,665
36,389
55,375
16,154
34,000
82,687
796,691
669,158
184,615
196,787
8,879
46,503
193,494
243,290
110,770
66,049
83,721
114,182
305,624
11,063
51,279
69,630
6,533
48,043
562,457
304,437
Salaries and wages recharged to Exploration Assets during the year was $1,074,947 (2021: $641,709).
Finance expense
Of the total balance, $5,010 (2021: $60,000) relates to payment on the convertible loan note interest which was cash
in nature. The remaining relates to interest on lease liability of $15,314 (2021: Nil), interest accrued on the convertible
loan note of $21,053 (2021: $16,199) and $935 (2021: $278) on interest on insurance premium funding.
43
42
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
2 Other Income
Receipts from JV
Option fee income (Note 9(v))
Others
3 Expenses
Administration expenses
Compliance and regulatory
Computer expenses
Consulting fees (a)
Insurance
Seminar/conference
Share registry
Travel and accommodation
Marketing / investor relations
Other
(a) Consulting fees
Accounting and secretarial services
Tenement related
Director and employee benefit expenses
Non-executive directors’ fees
Share-based payment (Note 16 and 27)
- Directors
- Employees
Superannuation
Other employee benefit
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Consolidated
30 June 2022
30 June 2021
$
393,122
-
5,167
$
203,279
100,000
4,035
398,289
307,314
3 Expenses (continued)
Depreciation expense:
Depreciation of property, plant and equipment
Amortisation of right-of-use assets
4
Income Tax Expense
Income tax expense/(benefit)
Current tax
Deferred tax
Income tax expense/(benefit)
Reconciliation of income tax to accounting loss:
Prima facie loss from ordinary activities
Tax at the Australian tax rate of
Prima facie tax expenses/(income) on ordinary activities
Add:
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Non assessable income
Other non allowable items
Share-based payments
Tax effect of temporary differences not brought to account as they do not meet
the recognition criteria
103,577
28,914
193,494
29,635
45,719
36,860
41,633
142,165
171,694
119,764
47,834
243,290
33,665
36,389
55,375
16,154
34,000
82,687
796,691
669,158
184,615
196,787
8,879
46,503
193,494
243,290
110,770
66,049
83,721
114,182
305,624
11,063
51,279
69,630
6,533
48,043
562,457
304,437
42
Salaries and wages recharged to Exploration Assets during the year was $1,074,947 (2021: $641,709).
Finance expense
Of the total balance, $5,010 (2021: $60,000) relates to payment on the convertible loan note interest which was cash
in nature. The remaining relates to interest on lease liability of $15,314 (2021: Nil), interest accrued on the convertible
loan note of $21,053 (2021: $16,199) and $935 (2021: $278) on interest on insurance premium funding.
Consolidated
30 June 2022
$
30 June 2021
$
33,717
28,397
62,114
-
-
-
Consolidated
30 June 2022
$
30 June 2021
$
-
-
-
-
-
-
-
-
(1,433,764)
(1,277,865)
25%
26%
(358,441)
(332,245)
-
6,532
97,336
(9,750)
570
47,791
254,573
293,634
-
-
43
44
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
4
Income Tax Expense (continued)
Deferred Income Tax
Deferred income tax at 30 June relates to the following
Deferred tax liabilities
Prepayments
Other financial assets
Property, plant and equipment
Exploration assets
Deferred tax assets
Accruals
Leases
Provision for employee entitlements
Section 40-880 expenditure
Revenue tax losses
Capital losses
Deferred tax assets not brought to account as realisation is not
probable
Deferred tax assets
Consolidated
2022
$
2021
$
(37,612)
(12,500)
(122,570)
(4,406,889)
88
51,830
23,756
216,780
10,910,697
399,331
(66,865)
-
-
(2,603,803)
9,201
-
16,376
223,035
9,027,843
441,304
(7,022,911)
(7,047,091)
-
-
A deferred tax liability of $Nil (2021: $Nil) was recognised in equity during the financial year.
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the recognition
criteria per AASB 112 Income Taxes. A DTA has not been recognised in respect of tax losses as realisation of the benefit
is not regarded as probable.
The Group is part of a tax consolidated group in accordance with the tax consolidation legislation. The Group has
unrecognised assessed gross tax losses of $43,532,798 (2021: $34,898,311) that are available indefinitely for offset against
future taxable profits of the Group subject to satisfaction of the relevant tax losses recoupment tests.
The tax rates applicable to each potential tax benefit are as follows:
Timing differences – 25%;
Tax losses – 25%.
The Group has JMEI credits available from the Australian Taxation Office of $Nil in respect of the year ending 30 June
2023 (2022: $750,000). The JMEI entitles Australian resident investors in eligible minerals exploration companies to obtain
either a refundable tax offset or (where the Eligible Investor is a corporate tax entity) franking credits.
45
44
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
4
Income Tax Expense (continued)
5 Operating Segments
Deferred Income Tax
Deferred income tax at 30 June relates to the following
Deferred tax liabilities
Prepayments
Other financial assets
Property, plant and equipment
Exploration assets
Deferred tax assets
Accruals
Leases
Provision for employee entitlements
Section 40-880 expenditure
Revenue tax losses
Capital losses
probable
Deferred tax assets
Consolidated
2022
$
2021
$
(37,612)
(12,500)
(122,570)
(4,406,889)
88
51,830
23,756
216,780
10,910,697
399,331
-
(66,865)
(2,603,803)
9,201
16,376
223,035
9,027,843
441,304
-
-
-
-
Deferred tax assets not brought to account as realisation is not
(7,022,911)
(7,047,091)
A deferred tax liability of $Nil (2021: $Nil) was recognised in equity during the financial year.
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the recognition
criteria per AASB 112 Income Taxes. A DTA has not been recognised in respect of tax losses as realisation of the benefit
is not regarded as probable.
The Group is part of a tax consolidated group in accordance with the tax consolidation legislation. The Group has
unrecognised assessed gross tax losses of $43,532,798 (2021: $34,898,311) that are available indefinitely for offset against
future taxable profits of the Group subject to satisfaction of the relevant tax losses recoupment tests.
The tax rates applicable to each potential tax benefit are as follows:
Timing differences – 25%;
Tax losses – 25%.
The Group has JMEI credits available from the Australian Taxation Office of $Nil in respect of the year ending 30 June
2023 (2022: $750,000). The JMEI entitles Australian resident investors in eligible minerals exploration companies to obtain
either a refundable tax offset or (where the Eligible Investor is a corporate tax entity) franking credits.
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are
reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that at this time
are no separately identifiable segments. The principal products and services of this operating segment are the mining
and exploration operations predominately in Western Australia.
6 Cash and cash equivalents
Cash at bank and in hand
7
Trade and other receivables
Current:
Receivable for option fee
GST receivable
Other receivables
Total current trade and other receivables
Consolidated
30 June 2022
$
30 June 2021
$
2,501,971
2,645,136
2,501,971
2,645,136
Consolidated
30 June 2022
$
30 June 2021
$
-
84,210
1,962
110,000
46,163
1,009
86,172
157,172
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial
statements.
As at 30 June 2022 there were no material trade and other receivables that were considered to be past due or
impaired (2021: Nil) and therefore there no expected loss credit provision required.
8 Other current assets
Prepayments
Total other assets
Consolidated
30 June 2022
$
30 June 2021
$
150,446
334,613
150,446
334,613
44
45
46
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
9
Fixed assets
Property, plant and equipment:
Leasehold improvements – at cost
Less: Accumulated depreciation
Motor vehicles – at cost
Less: Accumulated depreciation
Right-of-use assets:
Right of use assets – at cost (see Note 13)
Less: Accumulated amortisation
Total fixed assets
Consolidated
30 June 2022
$
30 June 2021
$
140,375
(8,474)
131,901
184,840
(25,243)
159,597
291,498
227,179
(28,397)
198,782
490,280
-
-
-
-
-
-
-
-
-
-
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Leasehold
improvements
$
Motor
vehicles
$
Right of
use assets
$
Total
$
Balance at 1 July 2021
Additions
Right of use asset at inception of lease
Depreciation expense
Amortisation of right of use asset
-
140,375
-
(8,474)
-
-
184,840
-
(25,243)
-
-
-
227,179
-
(28,397)
-
325,215
227,179
(33,717)
(28,397)
Balance at 30 June 2022
131,901
159,597
198,782
490,280
47
46
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
10 Exploration and evaluation assets
Current
Exploration asset held for sale (i)
Consolidated
30 June 2022
$
30 June 2021
$
-
-
100,000
100,000
(i) On 19 June 2021, the Group entered into a binding Terms Sheet to sell its Rocky Dam Gold Project to Lycaon
Resources Limited, a then pre-IPO company that listed on the ASX on 17 November 2021. The Group received
500,000 Lycaon shares as consideration plus a 1% net smelter royalty over all minerals extracted from Rocky
Dam. The shares were recognised at a cost of $0.20 per share totalling $100,000 based on the sale and
purchase agreement.
Non-Current
Exploration and evaluation asset
Balance at 1 July 2020
Impairment (iii)
Expenditure incurred
Balance at 30 June 2021
Balance at 1 July 2021
Acquisition (i)
Impairment (ii)
Expenditure incurred
Balance at 30 June 2022
30 June 2022
$
17,660,998
17,660,998
30 June 2021
$
10,371,428
10,371,428
5,104,501
(315,169)
5,582,096
10,371,428
10,371,428
58,500
(123,715)
7,354,785
17,660,998
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
(i) The Group purchased the license for tenement E09/2359 from an unrelated party by way of cash consideration
of $30,000 and 750,000 shares of the Company at an issue price of $0.038 per share.
(ii) The impairment of the exploration assets in 2021/2022 relates to the surrender of tenements during the year.
(iii) The impairment of the exploration assets in 2020/2021 relates to the impairment within the Rocky Dam project
as disclosed in (i) above.
47
48
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
11 Financial assets
Investment in listed entity:
Fair value at beginning of the year
Additions at cost
Change in fair value
Fair value at end of the year
Consolidated
30 June 2022
$
30 June 2021
$
-
100,000
50,000
150,000
-
-
-
-
In June 2021, the Group entered into an agreement to divest tenements in its Rocky Dam projects to Lycaon
Resources Ltd, a then pre-IPO company that listed on the ASX on 17 November 2021. The Group received 500,000
Lycaon shares as consideration plus a 1% net smelter royalty over all minerals extracted from Rocky Dam. The
shares were recognised at a cost of $0.20 per share totalling $100,000 based on the sale and purchase agreement.
As at 30 June 2022, the investment was revalued to reflect the share price of Lycaon as of that date which resulted
in a gain in fair value of $50,000. There were no financial assets as at 30 June 2021.
12 Trade and other payables
Trade payables
Accrued expenses
PAYG and wages payable
Superannuation payable
Total trade and other payables
Consolidated
30 June 2022
$
30 June 2021
$
802,257
381,896
37,810
350
1,222,313
739,233
24,574
22,443
21,391
807,641
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.
13 Lease liability
Office space lease:
Current portion
Noncurrent portion
Total lease liability
Consolidated
30 June 2022
$
30 June 2021
$
29,742
177,577
207,319
-
-
-
The lease liability relates to the Company’s office space in Unit 1, 4 Burgay Court, Osborne Park, WA 6017 for an
initial period of 3 years. The Company has an option to extend the lease for another 3 years.
49
48
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
14 Other financial liabilities
Convertible notes – liability component – non-current
Total financial liabilities
Consolidated
30 June 2022
$
-
-
30 June 2021
$
578,947
578,947
The Group received a total amount of $600,000 from issuing Convertible Notes in June 2019. The issue of Convertible
Notes was approved by shareholders in August 2019. Each of the Convertible Notes carries a face value of $1.00
with an annual interest rate of 10% and maturity date of 2 July 2021. On 8 April 2021, the maturity date was extended
to 1 July 2022. The holder may elect to convert the Convertible Notes into shares at $0.0055 per share. Upon the
occurrence of default, the lender may require immediate redemption of all outstanding Convertible Notes together
with all interest and other outstanding moneys to be immediately due and payable to the lender. The Convertible
Notes were determined to be a compound financial instrument, resulting in a split between liability and equity
components (Note 1(k)). The fair value of the liability component is determined based on the contractual future cash
flows which is discounted at the rate of interest (14%) that would apply to an identical financial instrument without the
conversion option. At 30 June 2021, $55,719 was attributed to equity component.
On 23 July 2021, the Convertible Loan Note holders elected to convert their Convertible Notes into 109,090,909 fully
paid ordinary shares thereby reducing the debt to $nil.
15
Issued Capital
Ordinary shares fully paid
Date
At 1 July 2020
15/07/2020
Options exercised
05/08/2020
Options exercised
30 June 2022
$
30 June 2021
$
60,954,153
52,030,339
No.
$
1,891,680,768
43,389,962
17,500,000
137,500
1,000,000
5,000
13/08/2020
Share Placement – Sophisticated and professional investors
170,666,673
1,536,000
20/08/2020
Options exercised
19/10/2020
Options exercised
26/10/2020
Options exercised
15,000,000
75,000
10,000,000
100,000
21,000,000
165,000
30/10/2020
Share Placement – Sophisticated and professional investors
125,000,000
3,500,000
19/11/2020
Options exercised
07/04/2021
Options exercised
10,000,000
60,000
12,000,000
110,000
19/04/2021
Share Placement – Sophisticated and professional investors
166,666,667
3,000,000
06/05/2021
Share Purchase Plan – Eligible shareholders
27,777,653
499,998
Less: Transaction costs
-
(548,121)
At 30 June 2021
2,468,291,761
52,030,339
49
50
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
15
Issued capital (continued)
At 1 July 2021
12/07/2021
Options exercised
23/07/2021
Conversion of Notes
4/08/2021
Options exercised
13/09/2021
Options exercised
13/09/2021
Options exercised
21/09/2021
Placement
30/11/2021
Issues of shares regarding acquisition
30/11/2021
Director Participation in Placement
30/11/2021
Options exercised
2/12/2021
Options exercised
31/01/2022
Options exercised
Exercise of options and conversion of notes
Less: Transaction costs
30 June 2022
No.
30 June 2021
$
2,468,291,761
52,030,339
10,000,000
109,090,909
80,000
600,000
10,000,000
100,000
3,000,000
5,479,452
15,000
53,699
226,000,000
7,910,000
750,000
2,571,429
750,000
1,250,000
1,500,000
28,500
90,000
15,000
12,500
15,000
-
-
522,958
(518,843)
At 30 June 2022
2,838,683,551
60,954,153
Capital Management
Management controls the capital of the Group in order to maintain and generate long-term shareholder value and ensure
that the Group can fund its operations and continue as a going concern. The Group is not subject to any externally imposed
capital requirements. Management effectively manages the Group capital by assessing the Group financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses include the
management of debt levels, distributions to shareholders and share issues.
The Group received a total amount of $600,000 from the issue of Convertible Notes. The issue of Convertible Notes was
approved by shareholders on 16 August 2019. The Convertible Notes each with a face value of $1.00 bear interest at 10%
per annum, have a Conversion Price of $0.0055 and mature on 1 July 2022. On 23 July 2021, the Convertible Loan Note
holders elected to convert their notes into 109,090,909 fully paid ordinary shares thereby reducing debt to $nil.
(a) Options
The details of the unlisted options are as follows:
Number
20,000,000
3,500,000
30,000,000
2,750,000
750,000
16,500,000
2,000,000
2,000,000
77,500,000
Exercise Price $
0.0060
0.0050
0.0050
0.0100
0.0200
0.0400
0.0600
0.0600
Expiry Date
25-May-23
30-Jun-24
9-Apr-24
1-Oct-23
31-Oct-23
02-Jul-24
11-Aug-24
26-Nov-24
Refer Note 16(a) for further information.
51
50
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
16 Reserves
Options reserve (a)
Equity reserve (b)
(a) Options Reserve
Consolidated
30 June 2022
$
30 June 2021
$
770,418
-
848,312
55,719
770,418
904,031
No.
$
Grant Date At 1 July 2020
163,000,000
664,500
04/04/2019 Options exercised – IronRinger Vendor Options
(40,000,000)
-
16/08/2019 Options exercised – Director Options
25/05/2020 Options exercised – Broker Options
01/07/2020 Options issued – Chairman Options (1)
02/10/2020 Options issued – Employee Options (2)
15/01/2021 Options issued – Employee Options (3)
At 30 June 2021
Grant Date At 1 July 2021
02/07/2021 Options issued - employees(4)
11/08/2021 Options issued - employee(5)
24/11/2021 Options issued - Managing Director(6)
29/11/2021 Options issued – employee(6)
Options issued in prior years but partly vesting during the
current year
Options exercised during the year
Reclassification of exercised options to issued capital
At 30 June 2022
(26,500,000)
-
(20,000,000)
-
5,479,452
114,182
5,500,000
1,500,000
54,779
14,851
88,979,452
848,312
No.
$
88,979,452
11,500,000
2,000,000
5,000,000
2,000,000
848,312
168,832
45,525
83.721
30,831
-
60,436
(31,979,452)
-
-
(467,239)
77,500,000
770,418
1) A term of Paul Chapman’s appointment as a director of the Company was that he was entitled to $36,000 plus
superannuation in fees for the year ending 30 June 2021 (year ended 30 June 2020 $nil). Paul Chapman elected
to receive his remuneration for the financial year ending 30 June 2021 by way of an issue of options. The Board
resolved to grant 5,479,452 options to Paul Chapman under the Company’s Plan on 1 July 2020, subject to
obtaining shareholder approval. Shareholder approval was obtained on 30 November 2020. The options vested in
four equal tranches quarterly from 1 July 2020.
2) On 2 October 2020, the Company agreed to issue employees of the Company who are not related parties of the
Company, 2,500,000 and 3,000,000 Options respectively under the Plan, subject to obtaining Shareholder
approval. Shareholder approval was obtained on 30 November 2020. 50% of the options vest 12 months from
grant date and the other 50% vest 24 months from grant date.
51
52
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
16 Reserves (Continued)
(a) Options Reserve (Continued)
3) On 1 November 2020, the Company agreed to offer an employee of the Company who is not a related party of
the Company, 1,500,000 Options under the Plan. 50% of the options vest 12 months from grant date and the
other 50% vest 24 months from grant date.
4) On 2 July 2021, the Company granted 11,500,000 options via the Dreadnought Plan to the current employees
and the company secretary of the Company. The options have a $0.04 exercise price and an expiry date of 2 July
2024. 50% of the options vest 12 months from grant date and the other 50% vest 24 months from grant date.
5) On 31 August 2021, the Company issued 2,000,000 options via the Plan to an employee of the Company. The
options have a $0.06 exercise price and an expiry date of 11 August 2024. 50% of the options vest 12 months
from grant date and the other 50% vest 24 months from grant date.
6) On 30 November 2021, the Company issued a total of 7,000,000 options to an employee and the Managing
Director of the Company - 2,000,000 options have an exercise price of $0.06 and an expiry of 26 November 2024,
while the remaining 5,000,000 options have an exercise price of $0.04 and expiry of 2 July 2024. 50% of each
series of options vest 12 months from grant date and the other 50% vest 24 months from grant date.
(b) Equity Reserve
Relates to the equity component of the Convertible Note. Refer to Note 14 for more details. During the year ended
30 June 2022, the reserve was transferred to issued capital upon the conversion of the notes to shares of stock.
17 Loss per share
(a) Basic loss per share
Loss attributable to the ordinary equity holders
Weighted average number of shares outstanding during the year
Basic loss per share (cents)
Consolidated
30 June 2022
$
30 June 2021
$
(1,433,764)
2,774,262,376
(0.05)
(1,277,865)
2,223,544,155
(0.06)
(b) Dilutive earnings per share
In accordance with AASB 133 Earnings per Share, potential ordinary shares in the form of options and convertible
notes are antidilutive when their conversion to ordinary shares decrease loss per share from continuing operations.
The calculation of diluted earnings/(losses) per share does not assume conversion, exercise, or other issue of
potential ordinary shares that would have an antidilutive effect on earnings/(losses) per share.
53
52
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
16 Reserves (Continued)
(a) Options Reserve (Continued)
3) On 1 November 2020, the Company agreed to offer an employee of the Company who is not a related party of
the Company, 1,500,000 Options under the Plan. 50% of the options vest 12 months from grant date and the
other 50% vest 24 months from grant date.
4) On 2 July 2021, the Company granted 11,500,000 options via the Dreadnought Plan to the current employees
and the company secretary of the Company. The options have a $0.04 exercise price and an expiry date of 2 July
2024. 50% of the options vest 12 months from grant date and the other 50% vest 24 months from grant date.
5) On 31 August 2021, the Company issued 2,000,000 options via the Plan to an employee of the Company. The
options have a $0.06 exercise price and an expiry date of 11 August 2024. 50% of the options vest 12 months
from grant date and the other 50% vest 24 months from grant date.
6) On 30 November 2021, the Company issued a total of 7,000,000 options to an employee and the Managing
while the remaining 5,000,000 options have an exercise price of $0.04 and expiry of 2 July 2024. 50% of each
series of options vest 12 months from grant date and the other 50% vest 24 months from grant date.
Relates to the equity component of the Convertible Note. Refer to Note 14 for more details. During the year ended
30 June 2022, the reserve was transferred to issued capital upon the conversion of the notes to shares of stock.
(b) Equity Reserve
17 Loss per share
(a) Basic loss per share
Basic loss per share (cents)
(b) Dilutive earnings per share
In accordance with AASB 133 Earnings per Share, potential ordinary shares in the form of options and convertible
notes are antidilutive when their conversion to ordinary shares decrease loss per share from continuing operations.
The calculation of diluted earnings/(losses) per share does not assume conversion, exercise, or other issue of
potential ordinary shares that would have an antidilutive effect on earnings/(losses) per share.
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
18 Exploration Commitments
Exploration expenditure commitments payable:
Not later than 12 months
Between 12 months and five years
Later than five years
Total exploration tenement minimum expenditure
Consolidated
30 June 2022
30 June 2021
$
$
1,929,000
1,157,760
1,048,000
1,955,000
-
3,086,760
3,003,000
The Group can seek deferral of minimum expenditures or relinquish tenements as required.
Director of the Company - 2,000,000 options have an exercise price of $0.06 and an expiry of 26 November 2024,
19 Financial Risk Management
The Group is exposed to a variety of financial risks through its use of financial instruments. This note discloses the
Group’s objectives, policies and processes for managing and measuring these risks. The Group’s overall risk
management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. The
Group does not speculate in financial assets.
Consolidated
30 June 2022
30 June 2021
$
$
Specific risks
•
•
•
Market risk - currency risk, interest rate risk and equity price risk
Credit risk
Liquidity risk
The principal categories of financial instrument used by the Group are:
•
•
•
•
Cash at bank
Trade and other receivables
Trade and other payables
Other financial liabilities – convertible notes
Loss attributable to the ordinary equity holders
(1,433,764)
(1,277,865)
Objectives, policies and processes
Weighted average number of shares outstanding during the year
2,774,262,376
2,223,544,155
(0.05)
(0.06)
Specific information regarding the mitigation of each financial risk to which the Group is exposed is provided below.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter
difficulty in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they
become due. The Group maintains cash to meet its liquidity requirements for up to 30-day periods. The Group
manages its liquidity needs by carefully monitoring long-term financial liabilities as well as cash-outflows due in
day-to-day business.
Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis
of a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day period are identified monthly. At
the reporting date, these reports indicate that the Group expected to have sufficient liquid resources to meet its
obligations under all reasonably expected circumstances.
52
53
54
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19 Financial Risk Management (continued)
The Group’s assets and liabilities have contractual maturities which are summarised below:
Consolidated
Within 1 year
More than 1 year
30 June
2022
$
30 June
2021
$
30 June
2022
$
30 June
2021
$
2,501,971 2,645,136
86,172
157,172
150,000
-
2,738,143 2,802,308
1,222,313
807,641
29,742
-
-
-
-
-
-
-
-
177,577
-
-
-
-
-
-
-
578,947
1,252,055
807,641
177,577
578,947
Financial assets
Cash and cash equivalents
Trade and other receivables
Investment in listed entity
Financial Liabilities
Trade and other payables
Lease liability
Convertible notes – liability component, at amortised cost
Market risk
(i) Foreign currency sensitivity
All of the Group transactions are carried out in Australian Dollars, therefore the Group is not exposed to foreign
exchange risk.
(ii) Cash flow interest rate sensitivity
The Group is not exposed to interest rate sensitivity on its financial assets and liabilities during the year ended 30
June 2022.
(iii) Price sensitivity
The Group is not exposed to price sensitivity.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to
the Group.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and
financial institutions, as well as credit exposure to wholesale and retail customers, including outstanding receivables
and committed transactions. Management considers that all the financial assets that are not impaired for each of the
reporting dates under review are of good credit quality, including those that are past due. The credit risk for liquid
funds and other short-term financial assets is considered negligible, since the counterparties are reputable banks
with high quality external credit ratings. The long term and short term ratings is AA- and A-1+ respectively (Source:
S&P Global Ratings).
55
54
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
19 Financial Risk Management (continued)
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared
to their carrying values as presented in the consolidated statement of financial position. Fair values are those amounts
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 judgement, where changes in
assumptions may have a material impact on the amounts estimated. Areas of judgement 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.
30 June 2022
30 June 2021
Net
Carrying
Value
$
Net Fair
value
$
Net
Carrying
Value
$
Net Fair
value
$
2,501,971
2,501,971 2,645,136
2,645,136
86,172
86,172
157,172
157,172
150,000
150,000
-
-
2,738,143
2,738,143 2,802,308
2,802,308
Financial assets
Cash and cash equivalents
Trade and other receivables
Investment in listed entity
Total financial assets
Financial liabilities
Trade and other payables
1,222,313
1,222,313
807,641
807,641
Lease liability
207,319
207,319
-
-
Convertible notes – liability component
-
-
578,947
578,947
Total financial liabilities
1,429,632
1,429,632 1,386,588
1,386,588
20 Dividends
There were no dividends paid during the year (2021: nil).
55
56
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
21 Key Management Personnel Disclosures
The totals of remuneration paid to the key management personnel of Dreadnought Resources Ltd during the year
are as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
Total Remuneration
Consolidated
30 June 2022
$
385,750
36,638
83,721
30 June 2021
$
299,159
25,840
114,182
505,929
439,181
The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to
each member of the Group’s Key Management Personnel for the years ended 30 June 2022 and 30 June 2021.
Other key management personnel transactions
For details of other transactions with key management personnel, refer to Note 22: Related Party Transactions.
22 Remuneration of Auditors
Remuneration of the auditor, for:
Auditing or reviewing the financial report
PKF Perth
-
- Nexia Perth Pty Ltd (Australia)
23 Deed of Cross-Guarantee
Consolidated
30 June 2022
$
30 June 2021
$
18,000
11,000
29,000
-
30,000
30,000
The Company has not entered into any guarantees, in the current or previous financial year, in relation to the debts
of its subsidiaries.
57
56
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24 Contingent Liabilities
In December 2019, the Company signed an agreement with an unrelated party, granting the Company an exclusive
license and option to acquire 100% interest in tenements E30/485 and E29/965. The Company paid an Initial Option
Fee of $100,000 on 12 December 2019. The option term was extended for an additional fifteen (15) months by the
Company giving an extension notice to the unrelated party and paying the option extension fee of $100,000. On 7
July 2022, the Company exercised its option and completed the purchase free from all encumbrances for $1 million.
As part of the consideration for the acquisition of tenements E04/2560, E29/1050, E29/957, E29/959, E30/471,
E30/476, E08/3178, E08/3274, E08/3275, E09/2359, E09/2370, E09/2384, E09/2433, E09/2448, E09/2449 and
E09/2450 from relevant parties, the Company has the obligation to pay royalties, which only become due and payable
when and if mining commences.
There were no other material contingent liabilities or contingent assets for the year ended 30 June 2022.
25 Related Parties
The Group’s main related parties are as follows:
(i) 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 (whether executive or otherwise) of that entity are considered key
management personnel.
For details of remuneration disclosures relating to key management personnel, refer to the remuneration report in
the Directors' Report.
The aggregate amounts recognised during the year (excluding re-imbursement of expenses incurred on behalf of
the Company) relating to directors and their director related entities were as follows:
Director
Transaction
P Chapman
Payments to a director related entity for office rental (ie Stone
Poneys Nominees Pty Ltd atf Chapman Superannuation Fund).
The lease has been terminated effective 31 December 2021.
Consolidated
2022
$
9,350
2021
$
11,627
No amounts were outstanding and owing to related parties as at 30 June 2022 (2021: nil).
(ii) Subsidiaries:
The consolidated financial statements include the financial statements of Dreadnought Resources Ltd and the
following subsidiaries:
Name of subsidiary
Dreadnought Exploration Pty Ltd (formerly Dreadnought
Kimberley Pty Ltd)
Dreadnought Yilgarn Pty Ltd
% ownership
interest
2022
% ownership
interest
2021
100
100
100
100
57
58
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
26 Cash Flow Information
Reconciliation of result of loss for the year to cashflows from operating activities:
Reconciliation of net loss to net cash provided by operating activities:
Loss for the year
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss:
- share based payments
- net gain on revaluation of investment in listed entity
- - property, plant and equipment expensed
- impairment loss on exploration assets
- interest on convertible notes
- interest on lease liability
- depreciation expense
- amortisation of ROU asset
- exploration expenditure
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries:
- (increase)/decrease in trade and other receivables
- (increase)/decrease in prepayments
- increase in trade and other payables
Cashflow outflow from operations
Non-cash investing and financing activities
Conversion of notes to shares
Non-cash assets acquisition
Consolidated
30 June 2022
$
30 June 2021
$
(1,433,764)
(1,277,865)
389,345
(50,000)
-
123,715
-
15,314
33,717
28,397
-
183,812
-
749
315,169
16,199
-
-
-
78,968
109,047
(15,091)
38,430
(105,779)
243,495
88,896
(760,890)
(456,356)
600,000
28,500
-
-
59
58
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
27 Share-based Payments
At 1 July 2021
Options exercised
Options issued
Options vesting
At 30 June 2022
Number
88,979,452
(31,979,452)
20,500,000
-
77,500,000
Weighted
Average
Exercise Price
$0.04
$0.011
$0.03
$0.01
$0.03
$
848,312
(467,239)
328,909
60,436
770,418
Share-based payments granted during the year:
11,500,000 Employees and Company Secretary Options granted on 2 July 2021.
On 2 July 2021, the Company granted 11,500,000 options via the Plan to employees of the Company who are not
related parties of the Company. The exercise price of the options is $0.04 and the options will expire on 2 July 2024.
50% of these options will vest to the employees on 12 months of continued employment and 50% on 24 months of
continued employment.
The options were deemed to have a fair value at grant date of $0.0197 per option. This value was calculated using
the Black-Scholes option pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.025
$0.04
158.33%
0.18%
3 years
2,000,000 Employee Options granted on 11 August 2021.
On 11 August 2021, the Company granted an employee of the Company who is not a related party of the Company,
2,000,000 Options under the Plan. The exercise price of the options is $0.06 and the options will expire on 11 August
2024. 50% of these options will vest to the employee on 12 months of continued employment and 50% on 24 months
of continued employment.
The options were deemed to have a fair value of $0.0343 per option. This value was calculated using the Black-
Scholes option pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.042
$0.06
161.46%
0.19%
3 years
5,000,000 Managing Director Options granted on 24 November 2021
On 24 November 2021, the Company granted the Managing Director of the Company, 5,000,000 Options under the
Plan. The exercise price of the options is $0.04 and the options will expire on 2 July 2024. 50% of these options will
vest to the employee on 12 months of continued employment and 50% on 24 months of continued employment.
59
60
DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
27 Share-based Payments (continued)
Share-based payments granted during the year (continued):
The options were deemed to have a fair value of $0.0374 per option. This value was calculated using the Black-
Scholes option pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.046
$0.04
157.46%
0.99%
3 years
2,000,000 Employee Options granted on 26 November 2021
On 26 November 2021, the Company granted an employee of the Company who is not a related party of the
Company, 2,000,000 Options under the Plan. The exercise price of the options is $0.06 and the options will expire
on 26 November 2024. 50% of these options will vest to the employee on 12 months of continued employment and
50% on 24 months of continued employment.
The options were deemed to have a fair value of $0.0352 per option. This value was calculated using the Black-
Scholes option pricing model applying the following inputs:
Share price
Exercise price
Expected volatility
Risk free interest rate
Useful life
$0.044
$0.06
157.20%
0.92%
3 years
A share-based payment expense has been included within the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, with the expense recognised over the useful life/term of the options. The total share-based
payment expense for the year in respect to equity instruments issued was $389,345, classified under Director &
Employee Benefits (Note 3) in the profit and loss.
Share-based payment arrangements granted in prior years and exercised during the financial year ended 30
June 2022:
1) On 4 April 2019, the Group issued a total of 50,000,000 unlisted options exercisable at $0.01 on or before 3
April 2024, vesting immediately to vendors of IronRinger Resources Pty Ltd. 10,000,000 options were exercised
during the year (2021: 40,000,000 were exercised).
2) On 16 August 2019, the Group granted 10,500,000 unlisted incentive options exercisable at $0.005 on or before
30 June 2024, vesting immediately to the Managing Director. 3,000,000 options were exercised during the year
(2021: 4,000,000 options were exercised).
3) On 23 December 2019, the Group granted 30,000,000 unlisted incentive options exercisable at $0.005 on or
before 9 April 2024, vesting annually over 4 financial years to the Managing Director.
4) On 25 May 2020, the Group engaged the services of Shaw and Partners Ltd as broker to manage the placement
and the consideration for doing so included 40,000,000 options. The options are exercisable at $0.006 on or
before 25 May 2023 vesting immediately to the broker. There were no options exercised during the year ended
30 June 2022 (2021: 20,000,000 options were exercised).
5) On 1 July 2020, The Board resolved to grant 5,479,452 options to Paul Chapman under the Company’s Plan.
This was approved by the shareholders on 30 November 2020. The options vested immediately and were
exercised in full on 13 September 2021.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
27 Share-based Payments (continued)
Share-based payment arrangements granted in prior years and exercised during the financial year ended 30
June 2022 (continued):
6) On 2 October 2020, the Company agreed to offer two employees of the Company who are not related parties
of the Company, 2,500,000 and 3,000,000 Options respectively under the Plan, subject to obtaining Shareholder
approval. Shareholder approval was obtained on 30 November 2020. 50% of the options vest 12 months from
grant date and the other 50% vest 24 months from grant date. Nick exercised 1,250,000 options on 1 December
2021 and Matthew exercised 1,500,000 options on 31 January 2022. In addition, a total of $46,029 was
recognised as part of share-based payment expense for the portion vested during the year ended 30 June 2022.
7) On 1 November 2020, the Company agreed to offer an employee of the Company who is not a related party of
the Company, 1,500,000 Options under the Plan. 50% of the options vest 12 months from grant date and the
other 50% vest 24 months from grant date. Luke exercised 750,000 options during the year ended 30 June
2022. In addition, $14,407 was recognised as part of share-based payment expense for the portion vested
during the year ended 30 June 2022.
The share options outstanding at the end of the financial year had a weighted average remaining contractual life of
1.61 years (2021: 3.03 years) and weighted average exercise price of $0.016 (2021: $0.04).
28 Events Occurring After The Reporting Date
Subsequent to 30 June 2022, the following significant events were undertaken by the Group:
•
•
•
•
On 7 July 2022, the Group exercised its option securing 100% ownership over tenements E29/965 and E30/485
within the Illaara Project. These tenements cover parts of the Kings and P1 Iron ore occurrences including
significant magnetite banded iron formations, the Central Komatiite belt, currently under assessments for nickel
sulfides, the Eastern extensions of the Peggy Sue pegmatite field as well as several VMS and gold prospects
many with samples awaiting assay. The exercise provides 100% ownership over the highly prospective, 75 km
long, Illaara Greenstone Belt. On 20 July 2022, the Group paid $1,000,000 to Mel Dalla Costa to settle the
transaction.
On 9 July 2022, the Group executed a tenement sale and purchase agreement with Arrow Minerals Limited
(ASX:AMD) to acquire a 100% interest in the Strickland Copper Gold Project (comprising E16/495, E30/493,
E30/494, E77/2403, E77/2416, E77/2432, E77/2634) in Western Australia. The commercial terms of the
agreement are as follows:
o AMD received a $20,000 cash payment upon signing of the agreement. This was paid on 11 July 2022.
o AMD will receive $280,000 cash payment at settlement. This was paid on 1 August 2022.
o The Company will issue AMD 2,350,000 fully paid ordinary shares in Dreadnought Resources Ltd at
settlement, escrowed until 31 January 2023. The Company issued the shares on 1 August 2022.
o AMD will receive a further cash payment of $300,000 by 30 November 2022.
o On the identification and reporting of JORC compliant inferred mineral resource of >500,000oz gold
equivalent the Group will pay AMD $1,000,000 cash.
o AMD will retain a total 1% Net Smelter Return royalty in relation to minerals mined by or on behalf of the
Company on the Strickland Copper Gold Project.
On 15 July 2022, the Group issued 8,500,000 unlisted options to its employees and company secretary. These
options have an exercise price of $0.065 and will expire on 14 July 2025. The options will vest on 14 July 2023.
In August 2022, the Group completed a heavily oversubscribed placement at $0.06 per share to institutional and
sophisticated investors raising $12,000,000 (before costs). Directors contributed a further $350,000 to the
placement maintaining 14% ownership and bringing their total investment to ~1.81 million, to be approved by
shareholders at the AGM to be held in November 2022.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
28 Events Occurring After The Reporting Date (continued)
•
On 17 August 2022, the Board of Directors, as part of the remuneration review for the 2022-2023 financial year,
resolved to create a Long-Term Incentive scheme under which employees and, subject to shareholder approval,
directors, may receive performance rights. The objectives of setting these LTIs in the remuneration review included:
o Ensuring employee/director alignment and retention;
o Creating long term shareholder value by setting significant targets that will have a material, beneficial
impact on Dreadnought’s enterprise value; and
o Ensuring that Dreadnought remains a preferred employer of choice in being able to attract and retain
professionals in a highly competitive market.
The Board of Directors approved LTI scheme involves the issue of performance rights, with each performance
right representing the right to subscribe for one fully paid ordinary Dreadnought share, to employees and directors.
A LTI Plan will govern the terms of the performance rights. The adoption of the LTI Plan for the purposes of Listing
Rule 7.2 Exception 13 will be subject to shareholder approval at the 2022 Annual General Meeting as will the
issue of performance rights to directors. The essential terms of the LTIs are as follows:
Vesting Conditions:
The LTIs are divided into three equal tranches. Each tranche will vest upon the Company announcing, during the
vesting period, a JORC 2012 Mineral Resource (“Resource") of Total Rare Earth Oxide (“TREO”) as follows:
•
•
•
Tranche 1: A Resource of at least the inferred category of 10Mt @ > 1% TREO by 31 December 2022.
Tranche 2: A Resource of at least the inferred category of 20Mt @ > 1% TREO by 31 December 2023.
Tranche 3: A Resource of at least the inferred category of 30Mt @ > 1% TREO by 31 December 2024.
Vesting of the performance rights will also be conditional on the holder remaining an employee or director as at the
date the vesting condition is satisfied (subject to the exercise of any discretion by the Board to waive a vesting
condition or to allow an employee or director who retires in certain circumstances to retain their performance rights
as provided for by the rules of LTI Plan).
Quantity of Performance Rights:
The total number of performance rights proposed to be issued as LTIs across the three tranches has been
determined by the Board as 29,200,000 with 7,700,000 issued to the directors and 21,500,000 to employees.
The Company will seek shareholder approval at the 2022 Annual General Meeting for the issue of the performance
rights to each director in accordance with ASX Listing Rule 10.14 and Chapter 2E of the Corporations Act 2001.
•
As announced on 30 August 2022, First Quantum Minerals Ltd (TSE:FM “First Quantum”), a ~A$20B TSX listed
company, has exercised its earn-in option over the Mangaroon Ni-Cu-PGE Project. First Quantum has funded the
option period and can now earn an initial 51% interest by funding $12M of expenditure by 1 March 2026. First
Quantum may withdraw at any time during the earn-in phase with 0% interest. First Quantum must also pay
Dreadnought $150,000 by 30 September 2022. The key terms of the earn-in and Joint Venture Agreement include:
The Agreement covers the base metal rights over five tenements being E09/2384, E09/2473, E09/2433,
E08/3178 and E08/3274.
First Quantum can earn an initial 51% interest by sole funding $12M of expenditure by 1 March 2026.
First Quantum may withdraw from the project at any time during the earn-in phase with 0% interest.
• Upon satisfying the earn-in requirements, a Joint Venture will be formed where First Quantum may elect
to increase its interest to 70% by sole funding expenditure up until a Decision to Mine. If First Quantum
elects to cease funding expenditure, it will revert to a 49% interest.
•
• Once a Decision to Mine has been made, Dreadnought can elect to either:
o Maintain its 30% by co-contributing.
o Dilute to 20% and be loan carried by First Quantum, repaid through revenue.
o Divest its 30% interest to First Quantum at fair market value.
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•
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
28 Events Occurring After The Reporting Date (continued)
•
•
•
•
On 2 September 2022, the Company appointed PKF Perth to perform the audit function of the Company. PKF Perth’s
appointment is effective until the next Annual General Meeting of the Company. In accordance with section 327C of
the Corporations Act 2001, a resolution will be put to shareholders at the 2022 Annual General Meeting to appoint
PKF Perth as the Company auditor. In accordance with subsection 329(5) of the Corporations Act and having
received the consent of the Australian Securities and Investment Commission (ASIC), Nexia Perth Audit Services
Pty Ltd has resigned as Auditor of the Company.
On 12 September 2022, subject to completion, the Group announced the acquisition of 100% interest in 5 tenements
covering 77 square kilometres of major regional structures. The tenements host at least ten historic gold mines
including the high-grade Star of Mangaroon, Pritchard Well and Twin Peaks gold mines. The tenements are
strategically located between the Group’s 100% owned rare earths project to the south-east and the First Quantum
Minerals Ni-Cu-PGE Earn-in to the north-west.
The key commercial terms with the unrelated party vendors (subject to completion) are shown below.
1. Key commercial terms to acquire 100% of E09/2290, M09/146, M09/147 and M09/175 include:
a. Dreadnought to own 100% upon Completion;
b. Dreadnought to pay $50,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $250,000 at Completion;
d. Vendors to receive 20,000,000 fully paid ordinary shares at Completion;
e. 1% gross royalty payable on E09/2290, M09/146 and M09/147; and
f.
0.5% gross royalty payable on M09/175.
2. Key commercial terms to acquire 100% of M09/174 include:
a. Dreadnought to own 100% upon Completion;
b. Dreadnought to pay $25,000 upon signing the Sale & Purchase Agreement (paid);
c. Dreadnought to pay $50,000 at Completion;
d. Vendor to receive 1,000,000 fully paid ordinary shares at Completion; and
e. 0.5% gross royalty payable.
Completion is expected to occur in November 2022.
On 12 September 2022, the Group also announced the proposed issue of 21,000,000 fully paid ordinary shares of
the Company with an estimated issued price of $0.13 per share as part of the consideration for the acquisition of the
tenements above. The shares are expected to be issued on 2 December 2022.
As announced on 14 September 2022, Philip Crutchfield KC was appointed as a non-executive director of
Dreadnought effective 13 September 2022. In addition, after 5 years on the Board, Paul Payne decided to step down
as a non-executive director of Dreadnought effective 13 September 2022. Paul will continue to provide a number of
consulting services to Dreadnought including an initial JORC Resource on the Metzke’s Find gold deposit at the
Central Yilgarn Project in the December 2022 quarter.
On 15 September 2022, Dreadnought issued 1,500,000 ordinary fully paid shares as a result of an early exercise of
options by an employee. The options were exercisable at any time until 2 July 2024 at an exercise price of $0.04
per option. The amount raised on the exercise of the options was $60,000. Dreadnought has relied on Section 708A
of the Corporations Act 2001 (Cth) in relation to the issue of shares.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
28 Events Occurring After The Reporting Date (continued)
Other than the events detailed above, there has not arisen in the interval between 1 July 2022 and the date of this
report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group,
to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of
the consolidated entity, in future years.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
29 Parent entity
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
Statement of Profit or Loss and Other Comprehensive Income
Total loss for the year
Total comprehensive loss
30 June 2022
$
30 June 2021
$
2,840,494
18,327,553
3,134,597
10,367,656
21,168,047
13,502,253
1,346,802
177,577
777,787
578,947
1,524,379
1,356,734
60,954,153
(42,080,903)
770,418
52,030,339
(40,788,851)
904,031
19,643,668
12,145,519
(1,292,052)
(1,291,121)
(1,292,052)
(1,291,121)
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
30 Company Details
The registered office of the Company is:
Dreadnought Resources Ltd
Level 3, 35 Outram Street
West Perth WA 6005
The principal place of business of the Company is:
Dreadnought Resources Ltd
Unit 1, 4 Burgay Court
Osborne Park WA 6017
The postal address of the Company is:
PO Box 646
West Perth WA 6005
www.dreadnoughtresources.com.au
Email: info@dreadnoughtresources.com.au
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Directors’ Declaration
For the Year Ended 30 June 2022
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in Note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position
as at 30 June 2022 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Dean Tuck
Managing Director
Dated 28 September 2022
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF DREADNOUGHT RESOURCES LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Dreadnought Resources Limited (the company), which
comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant
accounting policies and other explanatory information, and the directors’ declaration of the company and the
consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time
during the financial year.
In our opinion the accompanying financial report of Dreadnought Resources Limited is in accordance with the
Corporations Act 2001, including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its
performance for the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of
any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
PKF Perth
Key Audit Matters
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the
financial report of the current year. This matter was 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 audit opinion on this matter.
For the matter below, our description of how our audit addressed this matter is provided in that context.
1. Valuation of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2022 the carrying value of exploration
and evaluation assets was $17,660,998
(2021:
$10,371,428), as disclosed in Note 10.
The consolidated entity’s accounting policy in respect
of exploration and evaluation expenditure is outlined in
Note 1(r).
Significant judgement is required:
•
•
in determining whether facts and circumstances
indicate that the exploration and evaluation assets
should be tested for impairment in accordance
with Australian Accounting Standard AASB 6
Exploration
for and Evaluation of Mineral
Resources (“AASB 6”); and
in determining the treatment of exploration and
evaluation expenditure in accordance with AASB
6, and the consolidated entity’s accounting policy.
In particular:
o whether the particular areas of interest meet
the recognition conditions for an asset; and
o which elements of exploration and evaluation
expenditures qualify for capitalisation for each
area of interest.
Our work included, but was not limited to, the following
procedures:
•
conducting a detailed review of management’s
trigger events
impairment
assessment of
prepared in accordance with AASB 6 including:
o
o
o
assessing whether the rights to tenure of
the areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
obtaining specific representations with the
directors and management as to the status
of ongoing exploration programmes for the
areas of interest, as well as assessing if
there was evidence that a decision had
been made to discontinue activities in any
specific areas of interest; and
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes.
•
•
•
considering whether exploration activities for
the areas of interest had reached a stage
where
of
assessment
reasonable
economically recoverable reserves existed;
a
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
for compliance with AASB 6 and
the
consolidated entity’s accounting policy; and
reviewing the impairment calculations provided
and related assumptions and disclosures in
Notes 1(r), 1(t) and 10 for accuracy and
completeness.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
PKF Perth
2. Share Based Payments
Why significant
How our audit addressed the key audit matter
issued
For the year ended 30 June 2022, the value of share-
totalled $389,345 as
based payments
disclosed in Note 3 and 27. This has been recognised
as a share-based payment expense in the Statement
of Profit or Loss and Other Comprehensive Income for
$389,345.
The consolidated entity’s accounting judgement and
estimates in respect of share-based payments is
outlined in Note 1(q). Significant judgement is required
in relation to:
• The valuation method used in the model; and
• The assumptions and inputs used within the model.
Our work included, but was not limited to, the following
procedures:
• Reviewed the company’s valuations of the equity
instruments issued, including:
o assessing the appropriateness of the valuation
method used; and
o assessing the reasonableness of the assumptions
and inputs used within the valuation model.
• Reviewed Board meeting minutes and ASX
announcements as well as enquired of relevant
personnel to ensure all share-based payments had
been recognised;
• Assessed the allocation and recognition to ensure
these are reasonable; and
• Assessed
the appropriateness of
the
related
disclosures in Notes 1(q), 3 and 27.
Other Information
Those charged with governance are responsible for the other information. The other information comprises the
information included in the consolidated entity’s annual report for the year ended 30 June 2022, 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, with the exception of the Remuneration Report.
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 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 consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
PKF Perth
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the consolidated entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the consolidated entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the group financial report. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
PKF Perth
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Dreadnought Resource Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SHANE CROSS
AUDIT PARTNER
28 SEPTEMBER 2022
WEST PERTH
WESTERN AUSTRALIA
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
Additional information required by the ASX Listing Rules is set out below.
1.
Shareholdings
The issued capital of the Company as at 23 September 2022 is:
3,042,533,551 ordinary fully paid shares
All issued ordinary fully paid shares carry one vote per share.
2.
Distribution of Equity Securities as at 21 September 2022
Ordinary Shares (ASX Code: DRE)
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
104
183
491
2,944
2,441
28,517
720,290
4,030,774
133,075,595
2,904,678,375
Totals
6,137
3,042,533,551
0.00
0.02
0.13
4.35
95.49
100.00%
3.
Unmarketable parcels
There were 208 holders of less than a marketable parcel of ordinary shares.
4.
Substantial shareholders as at 23 September 2022
Name
Number of Shares
% Holding
Paul Chapman and associated entities
311,038,084
10.22%
5.
Restricted Securities Subject to Escrow as at 23 September 2022
The 2,350,000 shares issued to Arrow Minerals Limited as partial consideration for the Group’s acquisition of seven
tenements are escrowed until 31 January 2023.
6.
On-market buy back
There is currently no on-market buyback program for any of the Company’s listed securities.
7.
Group cash and assets
In accordance with Listing Rule 4.10.19, the Group confirms that it has been using the cash and assets for the year
ended 30 June 2022 consistent with its business objective and strategy.
8.
Voting Rights
All ordinary fully paid shares have one voting right per share. Unlisted options have no voting rights.
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
9.
Top 20 Largest Holders of Listed Securities as at 21 September 2022
Holder Name
Holding
%
STONE PONEYS NOMINEES PTY LTD
296,471,330
PARETO NOMINEES PTY LTD
MR PHILIP DAVID CRUTCHFIELD
69,829,613
60,834,525
MR DAVID MICHAEL CHAPMAN + MS MICHELE WOLLENS
54,224,107
1
2
3
4
5
6
7
8
9
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
PAYNE GEOLOGICAL SERVICES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
PARKRANGE NOMINEES PTY LTD
10 MRS BELINDA GORDON + MR IAN GORDON
11 MR NEVRES CRLJENKOVIC
11 MR TAO WU
13 MR DEAN TUCK + MRS DIANNE MAE TUCK
14 MR IAN JAMES GORDON
15 MR DREW GRIFFIN MONEY
15 MR LIZHONG WU + MRS WEIPING QIU
17 MR STEPHEN JAMES FOLEY + MS NATALIE CHANTAL MELLONIUS
18
NATIONAL NOMINEES LIMITED
19
KAOS INVESTMENTS PTY LIMITED
20
CAMPBELL KITCHNER HUME & ASSOCIATES PTY LTD
9.74
2.30
2.00
1.78
1.77
1.68
1.30
1.28
1.12
0.91
0.82
0.82
0.68
0.68
0.66
0.66
53,930,364
50,990,162
39,652,781
39,000,000
34,200,000
27,611,114
25,000,000
25,000,000
20,710,317
20,564,073
20,000,000
20,000,000
18,333,330
0.60
18,077,468
17,750,000
0.59
0.58
17,400,000
0.57
Total held by top 20 registered shareholders
929,579,184
30.55
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
10.
Unquoted securities
The following table lists the unquoted options over unissued shares issued under the Dreadnought Employee
Incentive Plan.
Options Class
Securities on Issue
Holder(s)
UNLISTED OPTIONS @ $0.01 EXPIRING 01/10/23
2,750,000
UNLISTED OPTIONS @ $0.005 EXPIRING 9/04/2024
30,000,000
UNLISTED OPTIONS @ $0.06 EXPIRING 11/08/2024
2,000,000
UNLISTED OPTIONS @ $0.005 EXPIRING 30/06/2024 3,500,000
UNLISTED OPTIONS @ $0.02 EXPIRING 31/10/2023
750,000
UNLISTED OPTIONS @ $0.04 EXPIRING 02/07/2024
15,000,000
UNLISTED OPTIONS @ $0.06 EXPIRING 26/11/2024
2,000,000
UNLISTED OPTIONS @ $0.065 EXPIRING 14/07/2025 8,500,000
2
1
1
1
1
5
1
7
The following table lists the unquoted options over unissued shares issued outside of the Dreadnought
Employee Incentive Plan.
UNLISTED OPTIONS @ $0.006 EXPIRING 25/05/2023
Holder Name
Holding
%
1 MR BLAIR OLIVER CAMPBELL SPAULDING
5,000,000
25%
2
3
PARETO NOMINEES PTY LTD
RAVENHILL ASSET MANAGEMENT PTY LTD
Total
10,000,000
50%
5,000,000
25%
20,000,000
100%
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
DREADNOUGHT RESOURCES LIMITED
Tarraji-Yampi
E04/2315
Tarraji
WA
Granted
80%
Tarraji-Yampi
E04/2508
Yampi
WA
Granted
Tarraji-Yampi
E04/2557
Yampi
WA
Granted
Tarraji-Yampi
E04/2572
Yampi
WA
Granted
Tarraji-Yampi
E04/2608
Robinson River
WA
Granted
E04/2675
Meda
WA
Granted
E04/2676
Easton
WA
Granted
E04/2560
Wombarella
WA
Granted
100%
100%
100%
100%
100%
100%
100%
Dreadnought Exploration Pty Ltd (80%)
Whitewater Resources Pty Ltd (20%)
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
E04/2574
Broome Creek
WA
Application
100%
Dreadnought Exploration Pty Ltd
E04/2573
Napier Downs
WA
Granted
100%
Dreadnought Exploration Pty Ltd
E04/2815
Meda
WA
Application
100%
Dreadnought Exploration Pty Ltd
E04/2816
Meda
WA
Application
100%
Dreadnought Exploration Pty Ltd
76
West
Kimberley
West
Kimberley
West
Kimberley
West
Kimberley
West
Kimberley
West
Kimberley
West
Kimberley
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
DREADNOUGHT RESOURCES LIMITED
Illaara
E29/0957
Illaara
WA
Granted
Illaara
E29/0959
Illaara
WA
Granted
Illaara
E29/1050
Metzke’s Find
WA
Granted
Illaara
E30/0471
Illaara
WA
Granted
Illaara
E30/0476
Illaara
WA
Granted
Illaara
E29/0965
Ularing
WA
Granted
Illaara
E30/0485
Wailing Rock
WA
Granted
Mangaroon
E08/3178
Gascoyne
WA
Granted
Mangaroon
E08/3274
Lyndon
WA
Granted
Mangaroon
E08/3275
Lyndon
WA
Granted
Mangaroon
E08/3439
Lyndon
WA
Granted
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Dreadnought Resources Ltd
Dreadnought Resources Ltd
Dreadnought (Yilgarn) Pty Ltd
Dreadnought Resources Ltd
Dreadnought Resources Ltd
Dalla-Costa, Melville Raymond
Dalla-Costa, Melville Raymond
Dreadnought Exploration Pty Ltd
Dreadnought Resources Ltd
Dreadnought Resources Ltd
Dreadnought Exploration Pty Ltd
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
DREADNOUGHT RESOURCES LIMITED
Mangaroon
E09/2359
Gascoyne
WA
Granted
Mangaroon
E09/2370
Gascoyne
WA
Granted
Mangaroon
E09/2384
Gascoyne
WA
Granted
Mangaroon
E09/2433
Gascoyne
WA
Granted
Mangaroon
E09/2448
Lyons
WA
Granted
Mangaroon
E09/2449
Lyons
WA
Granted
Mangaroon
E09/2450
Lyons
WA
Granted
Mangaroon
E09/2467
Lyndon
WA
Granted
Mangaroon
E09/2473
Lyndon
WA
Granted
Mangaroon
E09/2478
Lyndon
WA
Granted
Mangaroon
E09/2531
Lyons
WA
Granted
Mangaroon
E09/2535
Hardey
WA
Granted
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Resources Ltd
Dreadnought Resources Ltd
Dreadnought Resources Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
ASX Additional Information – Tenement List
Lease Name
Project
Tenement
Status
State
DREADNOUGHT RESOURCES LIMITED
% Owned by DRE
Holders
Mangaroon
E09/2616
Hardey
WA
Granted
Mangaroon
E09/2620
Hardey
WA
Granted
Mangaroon
E09/2405
Mangaroon
WA
Granted
100%
100%
100%
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Historic Gold Mines Pty Ltd
Illaara
E30/534
Ularing
WA
Application
100%
Dreadnought Exploration Pty Ltd
Illaara
L29/0143
Wailing Rock
WA
Application
100%
Dreadnought Exploration Pty Ltd
West
Kimberley
West
Kimberley
West
Kimberley
West
Kimberley
P04/306
Mt Amy
WA
Granted
P04/307
Mt Amy
WA
Granted
P04/308
Mt Amy
WA
Granted
P04/309
Mt Amy
WA
Granted
100%
100%
100%
100%
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Dreadnought Exploration Pty Ltd
Windell
E52/4139
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4141
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4142
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHT RESOURCES LIMITED
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
Windell
E52/4143
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4144
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4145
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4146
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Windell
E52/4147
Bresnahan
WA
Application
100%
Dreadnought Exploration Pty Ltd
Teano
E52/4137
Range Creek
WA
Application
100%
Dreadnought Exploration Pty Ltd
Teano
E52/4138
Range Creek
WA
Application
100%
Dreadnought Exploration Pty Ltd
Teano
E52/4140
Range Creek
WA
Application
100%
Dreadnought Exploration Pty Ltd
Bulga
E29/1074
Central Yilgarn
WA
Granted
Mt Elvire
E77/2403
Evanston
WA
Granted
Evanston
E77/2416
Evanston
WA
Granted
Evanston
E77/2432
Evanston
WA
Granted
100%
100%
100%
100%
Dalla-Costa, Melville Raymond
Arrow (Strickland) Pty Ltd
Arrow (Strickland) Pty Ltd
Arrow (Strickland) Pty Ltd
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DREADNOUGHT RESOURCES LTD AND CONTROLLED ENTITIES ABN: 40 119 031 864DREADNOUGHT RESOURCES | ANNUAL REPORT 2022
DREADNOUGHTRESOURCES.COM.AU