CORPORATE DIRECTORY
DIRECTORS
Rick Crabb (Non-Executive Chairman)
Charles Bass (Managing Director)
Roger Port (Non-Executive Director)
REGISTERED OFFICE
Ground Floor
22 Stirling Highway
Nedlands WA 6009
ALTERNATE DIRECTOR
AUDITORS
Brett Rowe
(Alternate Director for Charles Bass)
COMPANY SECRETARY
Mark Pitts
REGISTERED OFFICE AND PRINCIPAL PLACE
OF BUSINESS
Ground Floor, 22 Stirling Highway
Nedlands, Western Australia 6009
Email:
Website: eaglemountain.com.au
info@eaglemountain.com.au
William Buck Audit (WA) Pty Ltd
Level 3
15 Labouchere Road
South Perth WA 6151
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
CORPORATE GOVERNANCE
The Company has adopted the 3rd Edition
the ASX Corporate Governance
of
Recommendations. A summary statement
which has been approved by the Board
together with current policies and charters
is available on the Company website.
http://eaglemountain.com.au/corporate-
governance/
ASX CODE
EM2
ABN
34 621 541 204
ASX ADDITIONAL INFORMATION
Schedule of mineral tenure
Eagle Mountain mineral licences as at 4 October 2019 are all presently located in the State of Arizona,
United States of America.
Prospect &
Tenure type
Pacific Horizon
Patented Claims
(26 individual claims)
Claim Reference
(Tenement)
Percentage held
Empire, Copper Ash, Palestine, Buffalo, Little
Pittsburg, Austin, Wellington, Eagle, Number Ten,
Number Eleven, Number Twelve, Number Thirteen,
Noonday, South Noonday, Dudley, Comet,
Alameda, Virginia, Mars, Ashland, Oakland,
Sunnyside, Cuprite, Azurite, Yavapai and Jumbo
Unpatented Claims
(150 individual claims)
SMM#1-14, SMM#17-145, SMM#147, SMM#149,
SMM151, SMM#155, SMM#157, SMM#159,
SMM#161
Exploration Permit
(1 individual permit)
Scarlett
Unpatented Claims
(92 individual claims)
Exploration Permit
(2 individual permits)
Red Mule
Unpatented Claims
(98 individual claims)
Exploration Permit
(2 individual permits)
Rhyolite Target
Unpatented Claims
(70 individual claims)
Exploration Permit
(1 individual permit)
08-117371
SCA#1-15, SCA#57-133
SMMSO#001 - 015; SMMSO#023 - 048;
SMMSO#054; SMMSO#056; SMMSO#058 - 084
SMM#146, SMM#148, SMM#150, SMM#152,
SMM#153, SMM#154, SMM#158, SMM#160,
SMM#162-207, SMM#210-212, SCA#16-56
008-120871, 008-120872
SMMSO#001 - 015; SMMSO#023 - 048;
SMMSO#054; SMMSO#056; SMMSO#058 - 084
08-120101
100%
100%
100%
100%
100%
100%
100%
100%
100%
2019 Annual Report
2019 Annual Report
Page 63
CONTENTS PAGE
Corporate Directory
Chairman’s Letter
Operations Report
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 Auditor’s Report
ASX Additional information
Page
INSIDE COVER
1
3
8
21
22
23
24
25
26
56
57
61
2019 Annual Report
Arizona is at the heart of America’s mining industry and home to some of the world’s largest
copper discoveries. Silver Mountain, which comprises three prospects, Pacific Horizon,
Scarlett and Red Mule, lies on the same geological setting that hosts world-class porphyry
copper mines such as Bagdad, Miami and Resolution, one of the largest undeveloped copper
deposits in the world. It also lies on the southern extension of the metallogenic belt that hosts
United Verde and Iron King.
Bradshaw Mountains Northwest of Phoenix, Arizona.
Managing Director, Mr Charles Bass stated: “We have undertaken the first modern exploration
in very difficult and remote terrain at the Pacific Horizon and Scarlett Prospects. The results to date
have confirmed the variety and complexity of mineralisation we believed was present. “The work of
our exploration team and our consultant’s Dr Linus Keating, Dr David Compston and Dr Jeff Jaacks
has been of great value and has added to our understanding of our Silver Mountain Cu-Au Project.
Having completed an aggressive exploration drilling program during the past year the Company is
now compiling and reviewing the data to determine the next steps. It is early days, but the team is
excited by the potential of Silver Mountain and other opportunities available in this world class
mineral province.
In addition to detailed analyses of the considerable amount of data obtained from our field work,
we have been actively reviewing a number of other opportunities in Arizona to complement Silver
Mountain.
2019 Annual Report
Arizona is at the heart of America’s mining industry and home to some of the world’s largest
copper discoveries. Silver Mountain, which comprises three prospects, Pacific Horizon,
Scarlett and Red Mule, lies on the same geological setting that hosts world-class porphyry
copper mines such as Bagdad, Miami and Resolution, one of the largest undeveloped copper
deposits in the world. It also lies on the southern extension of the metallogenic belt that hosts
United Verde and Iron King.
Bradshaw Mountains Northwest of Phoenix, Arizona.
Managing Director, Mr Charles Bass stated: “We have undertaken the first modern exploration
in very difficult and remote terrain at the Pacific Horizon and Scarlett Prospects. The results to date
have confirmed the variety and complexity of mineralisation we believed was present. “The work of
our exploration team and our consultant’s Dr Linus Keating, Dr David Compston and Dr Jeff Jaacks
has been of great value and has added to our understanding of our Silver Mountain Cu-Au Project.
Having completed an aggressive exploration drilling program during the past year the Company is
now compiling and reviewing the data to determine the next steps. It is early days, but the team is
excited by the potential of Silver Mountain and other opportunities available in this world class
mineral province.
Mountain.
In addition to detailed analyses of the considerable amount of data obtained from our field work,
we have been actively reviewing a number of other opportunities in Arizona to complement Silver
Chairman’s Report
Since listing on the Australian Securities Exchange in March 2018, Eagle Mountain has
focussed its exploration and project evaluation work in Arizona, a premier mining jurisdiction.
As detailed in this Annual Report, a successful first pass exploration program was completed
at our Silver Mountain Project. The results have provided the management team with
optimism on the potential of Silver Mountain, with further work to be undertaken on the
various prospects identified in this complex province.
In conjunction with the exploration work completed at Silver Mountain, a considerable
amount of time was spent completing due diligence on several greenfields and advanced
opportunities identified to broaden the Company’s project portfolio. This process led to the
Company announcing the proposed acquisition of an 80% interest in the Oracle Ridge
Copper project in Arizona. Oracle Ridge is an advanced stage opportunity, comprising an
existing underground mine (currently on care and maintenance) with significant exploration
upside.
Oracle Ridge is complementary to the Silver Mountain providing Eagle Mountain with an ideal
mix of advanced and greenfields exploration projects, and we look forward to completing the
acquisition of this exciting project and commencing a significant resource expansion
exploration program.
To lead this dual-project strategy, the Company announced the appointment of Mr Tim
Mason as Chief Executive Officer, commencing 15 January 2020. Tim has 18 years’ experience
in the mining and engineering sectors across a broad range of corporate, operations,
business development and engineering roles. Tim is an underground mining expert, who
brings significant experience in project development, feasibility studies, financing and
operation start-ups to Eagle Mountain. I look forward to working with Tim and advancing our
exciting project portfolio.
Mr Charles Bass, Eagle Mountain’s founder and current Managing Director/CEO will remain
as Managing Director for an appropriate period to ensure a smooth transition, particularly in
regard to the Company’s corporate activities in Arizona. On behalf of the Board and
shareholders, I sincerely thank Charlie for his hard work and dedication in growing Eagle
Mountain and for the path he has created for all our future endeavours. I would also like to
thank all Eagle Mountain staff and contractors for their continued hard work.
Lastly, we are very fortunate to have a supportive shareholder base. The Board and
management thank you for your ongoing support and assure you we will continue to work
diligently on executing our corporate strategy and building a Company of significance.
Yours faithfully
Rick Crabb
Chairman
2019 Annual Report
2019 Annual Report
1
Figure 1 - The Silver Mountain Project located just outside of Phoenix, Arizona
2019 Annual Report
2
Review of Operations
Silver Mountain Project
The preliminary drilling program completed at the Silver Mountain Project focused on the
Pacific Horizon, Red Mule and Scarlett areas. This program was completed over a nine month
period during the financial year. The Company’s drilling contractor together with Eagle
Mountain staff completed all holes in compliance with regulatory requirements and de-
mobilised from site in June of this year.
Figure 2 below shows the various prospect locations and illustrates the various types of
mineralisation targets within the Silver Mountain Project.
The Silver Dollar and Rhyolite targets were not tested by drilling as more exploration work is
required before drill targets can be established.
Figure 1 - The Silver Mountain Project located just outside of Phoenix, Arizona
Figure 2 Silver Mountain Project overview with landholding and unique mineralisation styles
2019 Annual Report
2
2019 Annual Report
3
Pacific Horizon
Quartz-carbonate breccia is a key copper-gold mineralization style and was encountered in
all drill holes completed at the Pacific Horizon. The current interpretation suggests that there
are two different quartz-carbonate breccias:
• The first occurs within the Volcanogenic Massive Sulphide (VMS) Horizon itself and
tends to be smaller intervals with lower values; and
• The second occurs below the Horizon footwall and tend to be larger intervals with
more significant and anomalous assays.
Drilling along the Pacific Horizon confirmed the very complex mineralogy at this target with
results to date providing a significant volume of technical and structural information. It was
unexpected that quartz-carbonate breccia would occur below the Horizon footwall, and this
has given us cause to reassess the mineralization genesis and model. Dr Jeff Jaack’s
geochemical analysis suggests a possible epithermal gold signature, and this model remains
to be investigated.
Figure 3 below shows a hypothetical long-section illustrating the different types of
mineralisation targets at the Silver Mountain Project.
Figure 3 Mineralisation targets at the Silver Mountain Project
2019 Annual Report
4
Pacific Horizon
Quartz-carbonate breccia is a key copper-gold mineralization style and was encountered in
all drill holes completed at the Pacific Horizon. The current interpretation suggests that there
are two different quartz-carbonate breccias:
• The first occurs within the Volcanogenic Massive Sulphide (VMS) Horizon itself and
tends to be smaller intervals with lower values; and
• The second occurs below the Horizon footwall and tend to be larger intervals with
more significant and anomalous assays.
Drilling along the Pacific Horizon confirmed the very complex mineralogy at this target with
results to date providing a significant volume of technical and structural information. It was
unexpected that quartz-carbonate breccia would occur below the Horizon footwall, and this
has given us cause to reassess the mineralization genesis and model. Dr Jeff Jaack’s
geochemical analysis suggests a possible epithermal gold signature, and this model remains
to be investigated.
Figure 3 below shows a hypothetical long-section illustrating the different types of
mineralisation targets at the Silver Mountain Project.
Mineralisation occurs abruptly with little anomalism either side of significant or anomalous
intercepts. This may suggest that other “hidden” ore zones may occur near to or just off the
drill holes. This type of discovery is referred to as “blind” as there is little indication of the
mineralisation occurring outside if directly “hit” by drilling.
Interpretation of assays received to date from drilling, indicate that:
• The VMS system along the Pacific Horizon has been overprinted with at least two phases
of hydrothermal alteration. This is quite different to other VMS deposits in the region.
• There are at least two mineralised systems intersected by drilling. Newspaper reports
from the time of operation of the Pacific Mine talk about 4-5 veins being found.
• The same newspaper reports talk about gold values increasing in veins moving to the west
•
while copper grades decrease.
Increased molybdenum and bismuth values are indicators of a potential buried porphyry.
As determined from a surface geochemistry report by Dr Jeff Jaacks (refer to the
Independent Geologist Report – Eagle Mountain’s Prospectus dated 23 January 2018),
molybdenum and bismuth increase along the Pacific Horizon moving south-westwards
from the Pacific Mine. The highest values encountered in the drilling were near the Buffalo
mine and from holes that reached the lowest elevations; and
• A characteristic epithermal gold chemical signature occurs in the hydrothermal breccia
and the meta-chert tuff of the Pacific Horizon.
Scarlett
Drilling at the Gold Vein target at the Scarlett Prospect area was designed to test the porphyry
potential of the area. This is quite different to the mineralisation encountered along the Pacific
Horizon.
Results from two holes were inconclusive but did reveal indicators of a potential porphyry in
the vicinity.
The simplified types of alteration encountered in porphyry systems are illustrated below in
Figure 4, including the shell-like alteration that occurs in porphyry systems both outside and
below the main ore zone. The areal extent of the actual ore zone comprises only a small
portion of the overall porphyry system.
Figure 3 Mineralisation targets at the Silver Mountain Project
2019 Annual Report
4
2019 Annual Report
5
Figure 4 Simplified alteration model of porphyry deposits.
Porphyry-style alteration was observed in all holes drilled at the Gold Vein target, including:
• Propylitic alteration as chlorite disseminated in the hosting granodiorite and in vein
selvedges. The overall intensity of the alteration increases with depth in the three
holes completed 19SMDD014, 19SMDD015 and 19SMDD016.
• Thin quartz-carbonate-K-feldspar veins are widespread in the drill core and show
alteration selvedges with white mica (sericite). Minor sulphides are associated with the
veins. Alteration can be pervasive over several metres. This may represent the outer
edge of a Phyllic zone.
The Company was very encouraged by the extent and style of alteration encountered in
drilling. Further work is required to understand where the mineralised parts of the system
could be found.
Red Mule and Rhyolite Target
The VMS Horizon discovered near the Rhyolite target and south of Red Mule has a slightly
different rock mineralogy that is similar to that of known VMS deposits in the district. This
area requires more field work including mapping and sampling before drill targets can be
established.
2019 Annual Report
6
New Projects
Although the Company’s focus had been on the highly prospective Silver Mountain Project,
the Company was aware of several advanced project opportunities within Arizona that would
complement the Silver Mountain Project.
Subsequent to the end of the financial year, the Company has announced the proposed
acquisition of an 80% interest in the Oracle Ridge Copper project in Arizona. Eagle Mountain
looks forward to completing the acquisition of this exciting project and commencing a
significant resource expansion exploration program.
Appointment of Chief Executive Officer
Subsequent to the end of the financial year, the Board announced the engagement of Mr Tim
Mason as Chief Executive Officer effective 15 January 2020.
Tim is a Mining Engineer who holds an MBA and has 18 years’ experience in the mining and
engineering sectors across a broad range of corporate, operations, business development
and engineering roles. His recent roles of General Manager Operations and General Manager
Projects and Innovation involved conducting feasibility studies, project development and
operations start-up, business development, project financing and corporate presentations
COMPETENT PERSON STATEMENT
Information in this report relating to Exploration Results is based on information compiled under the supervision of Mr
Charles Bass who is an employee of the company. Mr Bass is a Fellow of the Australasian Institute of Mining and
Metallurgy and a Fellow of the Australian Institute of Geoscientist. He holds shares and options in the Company. Mr Bass
has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves
Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bass
consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Where the Company references previous ASX announcements, JORC Table 1 disclosures are included within them. The
Company confirms that it is not aware of any new information or data that materially effects the information included
in those announcements, and that the form and context in which the Competent Persons findings are presented have not
been materially modified from the original reports.
Figure 4 Simplified alteration model of porphyry deposits.
Porphyry-style alteration was observed in all holes drilled at the Gold Vein target, including:
• Propylitic alteration as chlorite disseminated in the hosting granodiorite and in vein
selvedges. The overall intensity of the alteration increases with depth in the three
holes completed 19SMDD014, 19SMDD015 and 19SMDD016.
• Thin quartz-carbonate-K-feldspar veins are widespread in the drill core and show
alteration selvedges with white mica (sericite). Minor sulphides are associated with the
veins. Alteration can be pervasive over several metres. This may represent the outer
edge of a Phyllic zone.
The Company was very encouraged by the extent and style of alteration encountered in
drilling. Further work is required to understand where the mineralised parts of the system
could be found.
Red Mule and Rhyolite Target
The VMS Horizon discovered near the Rhyolite target and south of Red Mule has a slightly
different rock mineralogy that is similar to that of known VMS deposits in the district. This
area requires more field work including mapping and sampling before drill targets can be
established.
2019 Annual Report
6
2019 Annual Report
7
DIRECTOR’S REPORT
The Directors present their report on Eagle Mountain Mining Limited (“Eagle Mountain” or the
“Company”) and its controlled entities (the “Group”) for the year ended 30 June 2019.
DIRECTORS
The names and details of the Group’s Directors in office during the period until the date of this report
are as follows. Directors were in office for this entire year unless otherwise stated.
Rick Crabb - B. Juris (Hons), LLB, MBA, FAICD
(Non-Executive Chairman)
Rick Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor
of Laws and Master of Business Administration from the University of
Western Australia. He practised as a solicitor from 1980 to 2004 with
Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert + Tobin)
specialising in mining, corporate and commercial law, advised in relation to
numerous project developments in Australia and Africa.
Rick has since focused on his public company directorships and
investments. He has been involved as a director and strategic shareholder
in a number of successful public companies. He is currently also Chairman
of Ora Gold Limited and Paladin Energy Limited.
Charles Bass - B.Sc. Geology, M.Sc. Mining Engineering/Mineral Processing, FAICD, FAusIMM, FAIG
(Managing Director and Chief Executive Officer)
Charles Bass completed his B.Sc. in Geology at Michigan Technological
University, followed by a M.Sc in Mining Engineering & Mineral Processing
at Queen’s University, Canada. Between his degrees Charles worked as a
geologist and then Plant Metallurgist at a copper-gold mine in northern
Quebec.
Charles joined AMAX Inc, an American mining company in their Head Office
in 1976 and came to Perth in 1978. Between 1980 to 1981, AMAX had him
work in Tuscon, Arizona at the Twin Buttes copper mine. Charles returned
to Australia and established his first company, Metech Pty Ltd in late 1981.
Charles established Eagle Mining Corporation in 1992 with Tony Poli and was responsible for the deal
that led to the discovery of the very successful Nimary Gold Mine. Eagle Mining Corporation won both
Explorer of the Year and then Developer of the Year at Diggers and Dealers conference and was subject
to a hostile takeover in 1997.
Charles then co-founded Aquila Resources Ltd with Tony Poli in 2000 and helped transition it from a
gold explorer to iron ore and coal before it too was subject to a hostile $1.4 billion takeover in 2014 at
the hands of a joint bid between Baosteel and ASX listed Aurizon.
2019 Annual Report
Page 8
DIRECTOR’S REPORT
DIRECTORS
The Directors present their report on Eagle Mountain Mining Limited (“Eagle Mountain” or the
“Company”) and its controlled entities (the “Group”) for the year ended 30 June 2019.
The names and details of the Group’s Directors in office during the period until the date of this report
are as follows. Directors were in office for this entire year unless otherwise stated.
Rick Crabb - B. Juris (Hons), LLB, MBA, FAICD
(Non-Executive Chairman)
Rick Crabb holds degrees of Bachelor of Jurisprudence (Honours), Bachelor
of Laws and Master of Business Administration from the University of
Western Australia. He practised as a solicitor from 1980 to 2004 with
Robinson Cox (now Clayton Utz) and Blakiston & Crabb (now Gilbert + Tobin)
specialising in mining, corporate and commercial law, advised in relation to
numerous project developments in Australia and Africa.
Rick has since focused on his public company directorships and
investments. He has been involved as a director and strategic shareholder
in a number of successful public companies. He is currently also Chairman
of Ora Gold Limited and Paladin Energy Limited.
Charles Bass - B.Sc. Geology, M.Sc. Mining Engineering/Mineral Processing, FAICD, FAusIMM, FAIG
(Managing Director and Chief Executive Officer)
Charles Bass completed his B.Sc. in Geology at Michigan Technological
University, followed by a M.Sc in Mining Engineering & Mineral Processing
at Queen’s University, Canada. Between his degrees Charles worked as a
geologist and then Plant Metallurgist at a copper-gold mine in northern
Quebec.
Charles joined AMAX Inc, an American mining company in their Head Office
in 1976 and came to Perth in 1978. Between 1980 to 1981, AMAX had him
work in Tuscon, Arizona at the Twin Buttes copper mine. Charles returned
to Australia and established his first company, Metech Pty Ltd in late 1981.
Charles established Eagle Mining Corporation in 1992 with Tony Poli and was responsible for the deal
that led to the discovery of the very successful Nimary Gold Mine. Eagle Mining Corporation won both
Explorer of the Year and then Developer of the Year at Diggers and Dealers conference and was subject
to a hostile takeover in 1997.
Charles then co-founded Aquila Resources Ltd with Tony Poli in 2000 and helped transition it from a
gold explorer to iron ore and coal before it too was subject to a hostile $1.4 billion takeover in 2014 at
the hands of a joint bid between Baosteel and ASX listed Aurizon.
DIRECTOR’S REPORT
Roger Port – BA, FCA, SF Fin, FAICD
(Non-Executive Director)
Roger Port was a partner of PricewaterhouseCoopers from 1997 to 2016.
He has 30 years’ experience in financial analysis, company and business
valuations, transaction due diligence and mergers and acquisitions and led
the PricewaterhouseCoopers Perth Deals team from 2009 to 2016. He has
had significant experience in the resources sector in his career and jointly
led the PwC Australia Deals Energy & Mining industry group for five years.
Roger is a graduate of Macquarie University and gained a Graduate
Diploma in Applied Finance and Investment from the Securities Institute of
Australia. He is a Fellow of Chartered Accountants Australia and New
Zealand, a Senior Fellow of the Financial Services Institute of Australasia
and a Fellow of the Australian Institute of Company Directors.
Roger is a board member of the Harry Perkins Institute of Medical Research, Chair of Council of
Guildford Grammar School and a board member of Guildford Grammar School Foundation.
Brett Rowe - BComm, MAcc, GAICD
(Alternate Director for Charles Bass)
Brett Rowe has over 20 years’ experience in the financial services industry
and is a graduate of the Australian Institute of Company Directors. He holds
a Bachelor of Commerce degree and a Masters of Accounting.
Brett is a director and the chief executive officer of The Bass Group, as well
as a director of The Bass Family Foundation and Silver Mountain Mining Pty
Ltd. Brett is responsible for managing the global financial interests of the
Bass Family, as well as The Foundation’s ongoing support of education and
health in disadvantaged children and youth in regional Western Australia.
Brett is also a director of the Centre for Entrepreneurial Research and
Innovation Limited (CERI). CERI aims to assist the growth of WA’s non-mining industry through a strong
innovation base where high-knowledge start-up company formation can be accelerated. This is
achieved through the co-creation of a WA-based venture capital industry.
COMPANY SECRETARY
Mark Pitts - B.Bus; FCA; GAICD
(Company Secretary)
Mark Pitts is a Partner in Corporate Advisory firm Endeavour Corporate and
has over 30 years’ experience in business administration and corporate
compliance. Having started his career with KPMG in Perth, Mark has worked
at a senior management level in a variety of commercial and consulting roles
including mining services, healthcare and property development. The
majority of the past 15 years has been spent working for or providing
services to publicly listed companies in the resources sector.
Mark is a registered company auditor and holds a Bachelor of Business
Degree from Curtin University, is a Fellow of Chartered Accountants
Australia and New Zealand and is a graduate of the Australian Institute of Company Directors.
2019 Annual Report
Page 8
2019 Annual Report
Page 9
DIRECTOR’S REPORT
DIRECTORS’ INTERESTS
As at the date of this report, the Directors’ interests in shares and unlisted options of the Company are
as follows:
Director
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
Directors’
Interests in
Ordinary Shares
732,000
43,980,001
516,000
500,000
Directors’ Interests
in Unlisted Options
Options vested at
the reporting date
1,561,000
9,665,000
1,543,000
1,000,000
1,561,000
9,665,000
1,543,000
1,000,000
The Directors’ interests include Unlisted Options which are vested or exercisable as at the date of
signing this report.
DIRECTORS’ MEETINGS
The number of meetings of the Company’s Directors held during the year ended 30 June 2019, and
the number of meetings attended by each Director are as follows:
Director
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
Board of Directors’ Meetings
Attended
9
9
9
9
Eligible to Attend
9
9
9
9
PRINCIPAL ACTIVITIES
The Company’s principal activities for the year ended 30 June 2019 have been focussed on undertaking
exploration activities at the wholly owned Silver Mountain Project in Arizona in the United States of
America.
REVIEW OF OPERATIONS
The operating loss after income tax of the Group for the year ended 30 June 2019 was $6,890,466
(period ended 30 June 2018: $1,681,900). Included in the loss for the year are uncapitalized exploration
costs of $6,004,485, and non-cash items (in respect of depreciation, option expenses and movement
in annual leave liabilities) amounting to $258,737.
At 30 June 2019 cash assets amounted to $1,879,883 (2018: $6,795,421). During the year ended 30
June 2019, the Company received $1,935,306, before related costs, on the issue of shares and options.
2019 Annual Report
Page 10
Directors’
Interests in
Ordinary Shares
732,000
43,980,001
516,000
500,000
Directors’ Interests
in Unlisted Options
Options vested at
the reporting date
1,561,000
9,665,000
1,543,000
1,000,000
1,561,000
9,665,000
1,543,000
1,000,000
DIRECTOR’S REPORT
DIRECTORS’ INTERESTS
Director
as follows:
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
signing this report.
DIRECTORS’ MEETINGS
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
PRINCIPAL ACTIVITIES
America.
REVIEW OF OPERATIONS
The Directors’ interests include Unlisted Options which are vested or exercisable as at the date of
The number of meetings of the Company’s Directors held during the year ended 30 June 2019, and
the number of meetings attended by each Director are as follows:
Director
Board of Directors’ Meetings
Eligible to Attend
Attended
9
9
9
9
9
9
9
9
The Company’s principal activities for the year ended 30 June 2019 have been focussed on undertaking
exploration activities at the wholly owned Silver Mountain Project in Arizona in the United States of
The operating loss after income tax of the Group for the year ended 30 June 2019 was $6,890,466
(period ended 30 June 2018: $1,681,900). Included in the loss for the year are uncapitalized exploration
costs of $6,004,485, and non-cash items (in respect of depreciation, option expenses and movement
in annual leave liabilities) amounting to $258,737.
At 30 June 2019 cash assets amounted to $1,879,883 (2018: $6,795,421). During the year ended 30
June 2019, the Company received $1,935,306, before related costs, on the issue of shares and options.
As at the date of this report, the Directors’ interests in shares and unlisted options of the Company are
Other than the matters stated in this report there have been no significant changes in the Group’s
state of affairs during the financial year.
DIRECTOR’S REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
EQUITY SECURITIES ON ISSUE
Class of Security
Ordinary fully paid shares
Unlisted options over unissued
shares
Performance rights
Unlisted Options over Ordinary Shares
30 June 2019
103,816,039
23,801,315
30 June 2018
92,500,001
16,000,000
180,000
75,000
As at 30 June 2019 23,801,315 unissued ordinary shares of the Company were under option as follows:
Number of Options Granted
4,500,000 1
7,000,000 2
4,500,000 3
26,599 4
2,130,000 5
5,644,716 6
Exercise Price
30 cents
20 cents
30 cents
80 cents
20 cents
20 cents
Expiry Date
7 December 2020
15 January 2023
6 March 2021
15 December 2019
1 February 2023
31 July 2021
1 Offer options and vendor options issued as part consideration for the acquisition of Silver Mountain
Mining Pty Ltd.
2 Options issued to Directors, Alternate Director, employees and Company Secretary.
3 Options issued pursuant to the IPO Offer.
4 Options issued on the exercise of options issued pursuant to an option entitlement offer.
5 Options issued to employees pursuant to the Company’s share option plan.
6 Options issued pursuant to a pro-rata entitlement offer which closed on 7 June 2019.
During the year, the Company undertook an option entitlement offer, pursuant to which it issued
23,125,000 options exercisable at 40 cents each and expiring 15 December 2018. 26,599 shares were
issued on the exercise of the entitlement offer options. A total of 23,098,401 options issued to the
option entitlement offer were cancelled on expiry.
There were no other options exercised or expiring during the year.
No options have been exercised or cancelled between 30 June 2019 and the date of this report.
Subsequent to 30 June 2019, 1,800,000 options exercisable at 20 cents each and expiring 1 July 2023
were issued to employees of the Company.
Options do not entitle the holder to participate in any share issue of the Company or any other body
corporate.
The holders of unlisted options are not entitled to any voting rights until the options are exercised into
ordinary shares.
2019 Annual Report
Page 10
2019 Annual Report
Page 11
DIRECTOR’S REPORT
EQUITY SECURITIES ON ISSUE (Continued)
Performance Rights over Ordinary Shares
During the year ended 30 June 2019, the Company issued 105,000 performance rights to certain
employees of the Company. Each performance right provides the holder with the right to be issued
one ordinary share subject to satisfaction of vesting criteria.
During the year 25,000, performance rights vested but have not been exercised into shares. Other
than this no performance rights vested, were cancelled or converted to ordinary shares during the
reporting period.
On 1 July 2019, 35,000 performance rights become fully vested. Since 30 June 2019, a total of 60,000
ordinary shares have been issued to employees on the exercise of vested performance rights.
Other than this, no performance rights have been issued, vested, converted or cancelled between 30
June 2019 and the date of this report.
DIVIDENDS
No dividend has been paid since incorporation and no dividend is recommended for the current
financial year.
EVENTS SUBSEQUENT TO THE END OF THE REPORTING YEAR
Subsequent to the end of the financial year, the Company has issued 1,800,000 options exercisable at
20 cents each and expiring 1 July 2023 to employees and issued 60,000 ordinary fully paid shares to
employees on the exercise of vested performance rights.
Other than as stated above, there has not arisen in the interval between the end of the financial year
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 Company to affect substantially the operations of the Group, the results
of those operations or the state of affairs of the Group in subsequent financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group intends to undertake further exploration programs at the Silver Mountain Project in Arizona
in the United States of America.
Any other likely developments in the operations of the Group and the expected results of those
operations in future financial years have not been included in this report as the inclusion of such
information is likely to result in unreasonable prejudice to the Group.
ENVIRONMENTAL ISSUES
The Group’s operations are not regulated under any significant environmental regulation under a law
of the Commonwealth of Australia, a State or a Territory. The operations and proposed activities of the
Group are subject to United States Federal and Arizona State laws and regulations concerning the
environment.
The Board believes that the Group has adequate systems in place for the management of its
environmental requirements. The Group aims to ensure the appropriate standard of environmental
care is achieved, and in doing so, that it is aware of and is in compliance with all environmental
legislation. The Directors of the Group are not aware of any breach of environmental legislation for the
financial year under review.
2019 Annual Report
Page 12
DIRECTOR’S REPORT
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS AND AUDITORS
During the year ended 30 June 2019, the Company paid an insurance premium to insure certain
officers of the Company. The officers of the Company covered by the insurance policy include the
Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may
be incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and
that may be brought against the officers in their capacity as officers of the Company. The insurance
policy does not contain details of the premium paid in respect of individual officers of the Company.
Disclosure of the nature of the liability cover and the amount of the premium is subject to a
confidentiality clause under the insurance policy.
The Company has not provided any insurance for an auditor of the Company.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of court 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.
The Company was not a party to any such proceedings during the year.
EVENTS SUBSEQUENT TO THE END OF THE REPORTING YEAR
NON-AUDIT SERVICES
The following non-audit services were provided by William Buck Consulting (WA) Pty Ltd, a related entity
of the entity’s auditor, William Buck Audit (WA) Pty Ltd. The Directors are satisfied that the provision of
non-audit services is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001. The nature and scope of each type of non-audit service provided means
that auditor independence was not compromised.
William Buck Consulting (WA) Pty Ltd received or are due to receive the following amounts for the
provision of non-audit services:
Investigating Accountant’s Report for the Initial
Public Offer Prospectus
30 June 2019
30 June 2018
Nil
$8,025
The following non-audit services were provided by William Buck (WA) Pty Ltd, a related entity of the
entity’s auditor, William Buck Audit (WA) Pty Ltd. The Directors are satisfied that the provision of non-
audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The nature and scope of each type of non-audit service provided means that
auditor independence was not compromised.
William Buck (WA) Pty Ltd received or are due to receive the following amounts for the provision of
non-audit services:
Preparation of General Purpose Financial
Statements for Silver Mountain Mining Pty Ltd
Taxation services for Eagle Mountain Mining
Limited
30 June 2019
30 June 2018
Nil
$3,880
$5,000
$2,106
DIRECTOR’S REPORT
EQUITY SECURITIES ON ISSUE (Continued)
Performance Rights over Ordinary Shares
During the year ended 30 June 2019, the Company issued 105,000 performance rights to certain
employees of the Company. Each performance right provides the holder with the right to be issued
one ordinary share subject to satisfaction of vesting criteria.
During the year 25,000, performance rights vested but have not been exercised into shares. Other
than this no performance rights vested, were cancelled or converted to ordinary shares during the
reporting period.
On 1 July 2019, 35,000 performance rights become fully vested. Since 30 June 2019, a total of 60,000
ordinary shares have been issued to employees on the exercise of vested performance rights.
Other than this, no performance rights have been issued, vested, converted or cancelled between 30
June 2019 and the date of this report.
DIVIDENDS
financial year.
No dividend has been paid since incorporation and no dividend is recommended for the current
Subsequent to the end of the financial year, the Company has issued 1,800,000 options exercisable at
20 cents each and expiring 1 July 2023 to employees and issued 60,000 ordinary fully paid shares to
employees on the exercise of vested performance rights.
Other than as stated above, there has not arisen in the interval between the end of the financial year
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 Company to affect substantially the operations of the Group, the results
of those operations or the state of affairs of the Group in subsequent financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group intends to undertake further exploration programs at the Silver Mountain Project in Arizona
in the United States of America.
Any other likely developments in the operations of the Group and the expected results of those
operations in future financial years have not been included in this report as the inclusion of such
information is likely to result in unreasonable prejudice to the Group.
ENVIRONMENTAL ISSUES
The Group’s operations are not regulated under any significant environmental regulation under a law
of the Commonwealth of Australia, a State or a Territory. The operations and proposed activities of the
Group are subject to United States Federal and Arizona State laws and regulations concerning the
environment.
The Board believes that the Group has adequate systems in place for the management of its
environmental requirements. The Group aims to ensure the appropriate standard of environmental
care is achieved, and in doing so, that it is aware of and is in compliance with all environmental
legislation. The Directors of the Group are not aware of any breach of environmental legislation for the
financial year under review.
2019 Annual Report
Page 12
2019 Annual Report
Page 13
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
Remuneration paid to Directors and Officers of the Company is set by reference to such payments
made by other ASX listed companies of a similar size and operating in the mineral exploration industry.
In addition, reference is made to the specific skills and experience of the Directors and Officers.
Details of the nature and amount of remuneration of each Director, and other Key Management
Personnel if applicable, are disclosed annually in the Remuneration Report.
Remuneration Committee
The Board has adopted a formal Nomination and Remuneration Policy which provides a framework
for the consideration of remuneration matters.
The Company does not have a separate remuneration committee and as such all remuneration
matters are considered by the Board as a whole, with no member deliberating or considering such
matter in respect of their own remuneration.
In the absence of a separate Remuneration Committee, the Board is responsible for:
1. Setting remuneration packages for Executive Directors, Non-Executive Directors and other Key
2.
Management Personnel; and
Implementing employee incentive and equity based plans and making awards pursuant to those
plans.
Non-Executive Remuneration
The Company’s policy is to remunerate Non-Executive Directors, at rates comparable to other ASX
listed companies in the same industry, for their time, commitment and responsibilities.
Non-Executive Remuneration is not linked to the performance of the Company, however to align
Directors’ interests with shareholders’ interests, remuneration may be provided to Non-Executive
Directors in the form of equity based long term incentives.
1.
Fees payable to Non-Executive Directors are set within the aggregate amount approved by
shareholders at the Company’s Annual General Meeting;
2. Non-Executive Directors’ fees are payable in the form of cash and superannuation benefits;
3. Non-Executive Directors’ superannuation benefits are limited to statutory superannuation
entitlements; and
4. Participation in equity based remuneration schemes by Non-Executive Directors is subject to
consideration and approval by the Company’s shareholders.
The maximum aggregate Non-Executive Directors fees payable are currently set at $300,000 per
annum.
Executive Director and Other Key Management Personnel Remuneration
Executive remuneration consists of base salary, plus other performance incentives to ensure that:
1. Remuneration packages incorporate a balance between fixed and incentive pay, reflecting short
and long term performance objectives appropriate to the Company’s circumstances and
objectives; and
2. A proportion of remuneration is structured in a manner to link reward to corporate and individual
performances.
Executives are offered a competitive level of base salary at market rates (based on comparable ASX
listed companies) and are reviewed regularly to ensure market competitiveness. To date the Company
has not engaged external remuneration consultants to advise the Board on remuneration matters.
2019 Annual Report
Page 14
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED)
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (Continued)
Remuneration paid to Directors and Officers of the Company is set by reference to such payments
Incentive Plans
The Board has adopted a formal Nomination and Remuneration Policy which provides a framework
2. Reviews and approves existing incentive plans established for employees; and
The Company provides long term incentives to Directors and Employees pursuant to the Company’s
Employee Incentive Plan.
The Board, acting in remuneration matters:
1. Ensures that incentive plans are designed around appropriate and realistic performance targets
and provide rewards when those targets are achieved;
3. Approves the administration of the incentive plans, including receiving recommendations for and
the consideration and approval of grants pursuant to such incentive plans.
Engagement of Non-Executive Directors
Non-Executive Directors conduct their duties under the following terms:
1. A Non-Executive Director may resign from his/her position and thus terminate their contract on
written notice to the Company; and
2. A Non-Executive Director may, following resolution of the Company’s shareholders, be removed
before the expiration of their period of office (if applicable). Payment is made in lieu of any notice
period if termination is initiated by the Company, except where termination is initiated for serious
misconduct.
In consideration of the services provided by Mr Rick Crabb as Non-Executive Chairman, the Company
will pay him a fee inclusive of statutory superannuation of $50,000 per annum.
In consideration of the services provided by Mr Roger Port as Non-Executive Director, the Company
will pay him a fee inclusive of statutory superannuation of $50,000 per annum.
Messrs Crabb and Port are also entitled to fees for other amounts as the Board determines where
they perform special duties or otherwise perform extra services or make special exertions on behalf
of the Company. There were no such fees paid during the year ended 30 June 2019.
Upon commencement of employment, Messrs Crabb and Port each received 1,500,000 unlisted
options over unissued shares of the Company. An expense of $120,000 was recognised through the
Consolidated Statement of Profit or Loss and Other Comprehensive Income in the period to 30 June
2018 in respect of the 3,000,000 options issued.
Engagement of Executive Directors
The Company has entered into an executive service agreement with Mr Charles Bass in his role as
Managing Director and Chief Executive Officer on the following material terms and conditions.
Mr Bass receives a base salary inclusive of statutory superannuation of $50,000 per annum from the
commencement of the agreement until 1 June 2018, at which time the remuneration was reviewed.
Mr Bass’ remuneration was unchanged as a result of this review.
Either party may terminate the agreement by providing 30 days written notice to the other party. Eagle
Mountain may otherwise terminate the Managing Director’s employment in accordance with the
Constitution or the Corporations Act. Upon termination of the agreement, Mr Bass will cease
employment with Eagle Mountain as its Managing Director and Chief Executive Officer and will become
a Non-Executive Director of Eagle Mountain.
made by other ASX listed companies of a similar size and operating in the mineral exploration industry.
In addition, reference is made to the specific skills and experience of the Directors and Officers.
Details of the nature and amount of remuneration of each Director, and other Key Management
Personnel if applicable, are disclosed annually in the Remuneration Report.
Remuneration Committee
for the consideration of remuneration matters.
The Company does not have a separate remuneration committee and as such all remuneration
matters are considered by the Board as a whole, with no member deliberating or considering such
matter in respect of their own remuneration.
In the absence of a separate Remuneration Committee, the Board is responsible for:
1. Setting remuneration packages for Executive Directors, Non-Executive Directors and other Key
2.
Implementing employee incentive and equity based plans and making awards pursuant to those
Management Personnel; and
plans.
Non-Executive Remuneration
The Company’s policy is to remunerate Non-Executive Directors, at rates comparable to other ASX
listed companies in the same industry, for their time, commitment and responsibilities.
Non-Executive Remuneration is not linked to the performance of the Company, however to align
Directors’ interests with shareholders’ interests, remuneration may be provided to Non-Executive
Directors in the form of equity based long term incentives.
1.
Fees payable to Non-Executive Directors are set within the aggregate amount approved by
shareholders at the Company’s Annual General Meeting;
2. Non-Executive Directors’ fees are payable in the form of cash and superannuation benefits;
3. Non-Executive Directors’ superannuation benefits are limited to statutory superannuation
entitlements; and
4. Participation in equity based remuneration schemes by Non-Executive Directors is subject to
consideration and approval by the Company’s shareholders.
The maximum aggregate Non-Executive Directors fees payable are currently set at $300,000 per
annum.
Executive Director and Other Key Management Personnel Remuneration
Executive remuneration consists of base salary, plus other performance incentives to ensure that:
1. Remuneration packages incorporate a balance between fixed and incentive pay, reflecting short
and long term performance objectives appropriate to the Company’s circumstances and
objectives; and
performances.
2. A proportion of remuneration is structured in a manner to link reward to corporate and individual
Executives are offered a competitive level of base salary at market rates (based on comparable ASX
listed companies) and are reviewed regularly to ensure market competitiveness. To date the Company
has not engaged external remuneration consultants to advise the Board on remuneration matters.
2019 Annual Report
Page 14
2019 Annual Report
Page 15
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (Continued)
Mr Bass may, subject to shareholder approval, participate in Eagle Mountain’s Employee Incentive Plan
and other long term incentive plans adopted by the Board. Upon commencement of his employment,
Mr Bass received 1,500,000 unlisted options over unissued shares of the Company. An expense of
$60,000 was recognised through the Consolidated Statement of Profit or Loss and Other
Comprehensive Income in the period to 30 June 2018 in respect of the 1,500,000 options issued.
Short Term Incentive Payments
The Non-Executive Directors set annual Key Performance Indicators (“KPIs”) for Executive Directors.
The KPIs are chosen to align the reward of the individual Executives to the strategy and performance
of the Company.
Performance objectives, which may be financial or non-financial, or a combination of both, are
weighted when calculating the maximum short term incentives payable to Executives. At the end of the
year, the Non-Executive Directors will assess the actual performance of the Executives against the set
Performance Objectives. The maximum amount of the Short Term Incentive, or a lesser amount
depending on actual performance achieved is paid to the Executives as a cash payment.
No Short Term incentives are payable to Executives where it is considered that the actual performance
has fallen below the minimum requirement.
Shareholding Qualifications
The Directors are not required to hold any shares in Eagle Mountain under the terms of the Company’s
Constitution.
Group Performance
In considering the Company’s performance, the Board provides the following indices in respect of the
current financial year:
Loss for the period attributable to shareholders
$(6,890,466)
$(1,681,900)
Closing share price at 30 June
$0.125
$0.42
2019
2018
As a Group focussed on exploration activities, the Board does not consider the loss attributable to
shareholders as one of the performance indicators when implementing Short Term Incentive
payments.
In addition to technical exploration success, the Board considers the effective management of safety,
environmental and operational matters and successful management, acquisition and consolidation of
high quality landholdings, as more appropriate indicators of management performance for the
financial year.
Remuneration Disclosures
The Key Management Personnel of the Company have been identified as:
Mr Rick Crabb
Mr Charles Bass
Mr Roger Port
Mr Brett Rowe
Non-Executive Chairman
Chief Executive Officer and Managing Director
Non-Executive Director
Alternate Director for Charles Bass
2019 Annual Report
Page 16
Mr Bass may, subject to shareholder approval, participate in Eagle Mountain’s Employee Incentive Plan
and other long term incentive plans adopted by the Board. Upon commencement of his employment,
Mr Bass received 1,500,000 unlisted options over unissued shares of the Company. An expense of
$60,000 was recognised through the Consolidated Statement of Profit or Loss and Other
Comprehensive Income in the period to 30 June 2018 in respect of the 1,500,000 options issued.
Short Term Incentive Payments
The Non-Executive Directors set annual Key Performance Indicators (“KPIs”) for Executive Directors.
The KPIs are chosen to align the reward of the individual Executives to the strategy and performance
of the Company.
Performance objectives, which may be financial or non-financial, or a combination of both, are
weighted when calculating the maximum short term incentives payable to Executives. At the end of the
year, the Non-Executive Directors will assess the actual performance of the Executives against the set
Performance Objectives. The maximum amount of the Short Term Incentive, or a lesser amount
depending on actual performance achieved is paid to the Executives as a cash payment.
No Short Term incentives are payable to Executives where it is considered that the actual performance
has fallen below the minimum requirement.
Shareholding Qualifications
The Directors are not required to hold any shares in Eagle Mountain under the terms of the Company’s
Constitution.
Group Performance
current financial year:
In considering the Company’s performance, the Board provides the following indices in respect of the
Loss for the period attributable to shareholders
$(6,890,466)
$(1,681,900)
Closing share price at 30 June
$0.125
$0.42
2019
2018
As a Group focussed on exploration activities, the Board does not consider the loss attributable to
shareholders as one of the performance indicators when implementing Short Term Incentive
payments.
In addition to technical exploration success, the Board considers the effective management of safety,
environmental and operational matters and successful management, acquisition and consolidation of
high quality landholdings, as more appropriate indicators of management performance for the
financial year.
Remuneration Disclosures
The Key Management Personnel of the Company have been identified as:
Mr Rick Crabb
Non-Executive Chairman
Mr Charles Bass
Chief Executive Officer and Managing Director
Mr Roger Port
Mr Brett Rowe
Non-Executive Director
Alternate Director for Charles Bass
DIRECTOR’S REPORT
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (Continued)
REMUNERATION REPORT (AUDITED) (Continued)
The details of the remuneration of each Director and member of Key Management Personnel of the
Company is as follows:
Short Term
Post
Employment
Other Long
Term
Year Ended 30
June 2019
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Base
Salary
$
45,662
45,662
45,662
-
Total
136,986
Period from 6
September 2017
to 30 June 2018
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Total
Base
Salary
$
19,026
19,026
19,026
-
57,078
Short
Term
Incentive
Superannuation
Contributions
Value of Equity
Based
Remuneration
Value of Equity
as Proportion
of
Remuneration
%
-
-
-
-
Total
$
50,000
50,000
50,000
-
$
4,338
4,338
4,338
-
$
-
-
-
-
13,014
- 150,000
Short Term
Post
Employment
Other Long
Term
Short
Term
Incentive
Superannuation
Contributions
Value of Equity
Based
Remuneration
$
Total
$
60,000
80,833
60,000
80,833
60,000
80,833
Value of Equity
as Proportion
of
Remuneration
%
74.2%
74.2%
74.2%
$
1,807
1,807
1,807
-
40,000
40,000
100.0%
5,421
220,000 282,499
$
-
-
-
-
-
$
-
-
-
-
-
Details of Performance Related Remuneration
During the year ended 30 June 2019, no short term incentive payments were paid to the Directors or
Key Management Personnel.
Equity Based Remuneration
During the year ended 30 June 2019, no options, rights or shares were issued to Directors or Key
Management Personnel of the Company as remuneration.
2019 Annual Report
Page 16
2019 Annual Report
Page 17
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (Continued)
Equity Based Remuneration (Continued)
During the period ended 30 June 2018 the following options were granted to Directors or Key
Management Personnel of the Company following shareholder approval at a general meeting on 15
January 2018:
Period from 6 September
2017 to 30 June 2018
Number of
options
Fair value of
options
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Total
1,500,000
1,500,000
1,500,000
1,000,000
$
60,000
60,000
60,000
40,000
5,500,000
220,000
The fair value of options issued as remuneration is allocated to the relevant vesting period of the
options. Options are provided at no initial cost to the recipients.
No options were exercised by Key Management Personnel during the year ended 30 June 2019.
Exercise of Options Granted as Remuneration
During the year ended 30 June 2019, no ordinary shares were issued in respect of the exercise of
options previously granted as remuneration to Directors or Key Management Personnel of the
Company.
Equity Instrument Disclosures Relating to Key Management Personnel
Option Holdings
Key Management Personnel have the following interests in unlisted options over unissued shares of
the Company.
Year ended 30
June 2019
Name
Directors
Balance at
beginning of
the year
Received
during the
year as
remuneration
Other
changes
during the
year1
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
Rick Crabb
1,500,000
Charles Bass
6,000,000
Roger Port
1,500,000
Brett Rowe
1,000,000
-
-
-
-
61,000
1,561,000
1,561,000
3,665,000
9,665,000
9,665,000
43,000
1,543,000
1,543,000
-
1,000,000
1,000,000
1 Includes options issued pursuant to pro-rata entitlement offer.
2019 Annual Report
Page 18
DIRECTOR’S REPORT
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (Continued)
REMUNERATION REPORT (AUDITED) (continued)
Equity Instrument Disclosures Relating to Key Management Personnel (continued)
to 30
Period from 6
September
2017
June 2018
Name
Directors
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Balance at
beginning of
the period
Received
during the
period as
remuneration
Other
changes
during the
period
Balance at
the end of
the period
Vested and
exercisable
at the end of
the period2
-
-
-
-
1,500,000
6,000,0001
1,500,000
1,000,000
-
-
-
-
1,500,000
1,500,000
6,000,000
6,000,000
1,500,000
1,500,000
1,000,000
1,000,000
1 Includes 4,500,000 consideration options issued in part consideration for the acquisition of Silver
Mountain Mining Pty Ltd.
2 Options exercisable at the end of the period are subject to ASX escrow restrictions.
The fair value of options issued as remuneration is allocated to the relevant vesting period of the
Share Holdings
The number of shares in the Company held during the financial year by Key Management Personnel
of the Company, including their related parties are set out below. There were no shares granted during
the reporting period as compensation.
Year ended 30
June 2019
Name
Balance at
beginning of the
year
Received during
the year as
remuneration
Other changes
during the year
Balance at the
end of the year
Directors
Rick Crabb
580,000
Charles Bass
36,650,001
Roger Port
Brett Rowe
400,000
500,000
-
-
-
-
152,000
732,000
7,330,000
43,980,001
116,000
-
516,000
500,000
Period
from 6
September 2017
to 30 June 2018
Name
Directors
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Balance at
beginning of the
period
Received during
the period as
remuneration
Other changes
during the
period
Balance at the
end of the
period
-
-
-
-
-
-
-
-
580,000
580,000
36,650,001
36,650,001
400,000
500,000
400,000
500,000
Equity Based Remuneration (Continued)
During the period ended 30 June 2018 the following options were granted to Directors or Key
Management Personnel of the Company following shareholder approval at a general meeting on 15
January 2018:
Period from 6 September
Number of
Fair value of
2017 to 30 June 2018
options
options
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
Total
1,500,000
1,500,000
1,500,000
1,000,000
$
60,000
60,000
60,000
40,000
5,500,000
220,000
Company.
Option Holdings
the Company.
Year ended 30
June 2019
Name
Directors
options. Options are provided at no initial cost to the recipients.
No options were exercised by Key Management Personnel during the year ended 30 June 2019.
Exercise of Options Granted as Remuneration
During the year ended 30 June 2019, no ordinary shares were issued in respect of the exercise of
options previously granted as remuneration to Directors or Key Management Personnel of the
Equity Instrument Disclosures Relating to Key Management Personnel
Key Management Personnel have the following interests in unlisted options over unissued shares of
Balance at
beginning of
Received
during the
Other
Vested and
changes
Balance at
exercisable
year as
during the
the end of
at the end of
the year
remuneration
year1
the year
the year
Rick Crabb
1,500,000
61,000
1,561,000
1,561,000
Charles Bass
6,000,000
3,665,000
9,665,000
9,665,000
Roger Port
1,500,000
43,000
1,543,000
1,543,000
Brett Rowe
1,000,000
-
1,000,000
1,000,000
-
-
-
-
1 Includes options issued pursuant to pro-rata entitlement offer.
2019 Annual Report
Page 18
2019 Annual Report
Page 19
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (continued)
Loans made to Key Management Personnel
No loans were made to Key Management Personnel, including personally related entities during the
financial year.
Other transactions with Key Management Personnel
Transactions between related parties are on commercial terms and conditions, no more favourable
than those available to other parties unless otherwise stated.
o
o
o
The Company has entered into a lease agreement with Elk Mountain Mining Limited (“Elk”), an
entity associated with Mr Charles Bass, for the lease of the Company’s administration offices in
Perth, Western Australia (refer note 20 for details of commitments under the lease agreement).
During the financial year, the Company incurred a total of $86,590 in respect of rent, outgoings
and car parking pursuant to the lease agreement (2018: $48,421).
During the period ended 30 June 2018, the Company issued 37,500,000 ordinary fully paid
shares at 10 cents per share and 4,500,000 options over unissued shares, exercisable at 30
cents each and expiring 3 years from the date of grant to Silver Mountain Mining Nominee Pty
Ltd, an entity associated with a Director Mr Charles Bass, in consideration for the acquisition of
the issued capital of Silver Mountain Mining Pty Ltd (refer note 24); and
During the period ended 30 June 2018 an amount of $85,447 owing by the Group to Silver
Mountain Mining Nominee Pty Ltd, an entity associated with Mr Charles Bass, was repaid in full.
Other than the above, there were no other transactions with Key Management Personnel.
End of Remuneration Report
AUDITOR’S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, William Buck Audit (WA) Pty Ltd, to
provide the Directors of the Group with an Independence Declaration in relation to the audit of the
financial report. This Independence Declaration is set out on the following page and forms part of this
Directors’ report for the year ended 30 June 2019.
This report has been made in accordance with a resolution of the Board of Directors.
Charles Bass
Director
Dated at Perth this 18th day of September 2019
2019 Annual Report
Page 20
The Company has entered into a lease agreement with Elk Mountain Mining Limited (“Elk”), an
audit.
AUDITORS INDEPENDENCE DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF EAGLE MOUNTAIN MINING
LIMITED
I declare that, to the best of my knowledge and belief during the year ended 30 June 2019
there have been:
— no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Conley Manifis
Director
Dated this 18th day of September 2019
DIRECTOR’S REPORT
REMUNERATION REPORT (AUDITED) (continued)
Loans made to Key Management Personnel
financial year.
Other transactions with Key Management Personnel
No loans were made to Key Management Personnel, including personally related entities during the
Transactions between related parties are on commercial terms and conditions, no more favourable
than those available to other parties unless otherwise stated.
o
o
o
entity associated with Mr Charles Bass, for the lease of the Company’s administration offices in
Perth, Western Australia (refer note 20 for details of commitments under the lease agreement).
During the financial year, the Company incurred a total of $86,590 in respect of rent, outgoings
and car parking pursuant to the lease agreement (2018: $48,421).
During the period ended 30 June 2018, the Company issued 37,500,000 ordinary fully paid
shares at 10 cents per share and 4,500,000 options over unissued shares, exercisable at 30
cents each and expiring 3 years from the date of grant to Silver Mountain Mining Nominee Pty
Ltd, an entity associated with a Director Mr Charles Bass, in consideration for the acquisition of
the issued capital of Silver Mountain Mining Pty Ltd (refer note 24); and
During the period ended 30 June 2018 an amount of $85,447 owing by the Group to Silver
Mountain Mining Nominee Pty Ltd, an entity associated with Mr Charles Bass, was repaid in full.
Other than the above, there were no other transactions with Key Management Personnel.
End of Remuneration Report
AUDITOR’S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, William Buck Audit (WA) Pty Ltd, to
provide the Directors of the Group with an Independence Declaration in relation to the audit of the
financial report. This Independence Declaration is set out on the following page and forms part of this
Directors’ report for the year ended 30 June 2019.
This report has been made in accordance with a resolution of the Board of Directors.
Charles Bass
Director
Dated at Perth this 18th day of September 2019
2019 Annual Report
Page 20
2019 Annual Report
Page 21
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the Year Ended 30 June 2019
Continuing Operations
Other revenue
Interest income
Administration and other costs
Employee expenses – non-exploration
Employee expenses – equity based
Depreciation expense
Exploration and evaluation costs
Gains on foreign currency exchange
Loss before income tax
Year ended 30
June 2019
A$
Period from 6
September 2017
to 30 June 2018
A$
Notes
12
27,389
(555,971)
(271,771)
(45,494)
(154,143)
(6,004,485)
113,997
-
28,151
(363,599)
(122,149)
(287,500)
(50,038)
(886,765)
-
(6,890,466)
(1,681,900)
Income tax expense
5
-
-
Loss after income tax from continuing operations
(6,890,466)
(1,681,900)
Other comprehensive income net of income tax
Other comprehensive income to be re-classified to
profit or loss in subsequent years net of income tax
Unrealised gain on foreign currency exchange
Total comprehensive loss for the year/period
14a
-
77,575
-
219,494
(6,812,891)
(1,462,406)
Basic and diluted loss per share
25
cents
(7.4)
cents
(3.3)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
2019 Annual Report
Page 22
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the Year Ended 30 June 2019
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
30 June 2019
30 June 2018
Note
A$
A$
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure – land
Property, plant and equipment
Bonds and security deposits
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Trade and other payables
Employee leave liabilities
Borrowings
Total Current Liabilities
Non-Current Liabilities
Borrowings
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
6
7
8
9
10
11
11
1,879,883
54,626
1,934,509
1,164,027
435.324
130,101
1,729,452
6,795,421
59,719
6,855,140
1,104,495
463,576
-
1,568,071
3,663,961
8,423,211
224,648
59,391
10,908
294,947
25,484
25,484
320,431
54,818
-
10,331
65,149
34,531
34,531
99,680
3,343,530
8,323,531
Period from 6
Year ended 30
September 2017
June 2019
to 30 June 2018
Notes
A$
A$
Continuing Operations
Other revenue
Interest income
Administration and other costs
Employee expenses – non-exploration
Employee expenses – equity based
Depreciation expense
Exploration and evaluation costs
Gains on foreign currency exchange
Loss before income tax
12
27,389
(555,971)
(271,771)
(45,494)
(154,143)
(6,004,485)
113,997
28,151
(363,599)
(122,149)
(287,500)
(50,038)
(886,765)
-
-
-
-
Income tax expense
5
-
Loss after income tax from continuing operations
(6,890,466)
(1,681,900)
(6,890,466)
(1,681,900)
Other comprehensive income net of income tax
Other comprehensive income to be re-classified to
profit or loss in subsequent years net of income tax
Unrealised gain on foreign currency exchange
14a
Total comprehensive loss for the year/period
Basic and diluted loss per share
25
-
77,575
(6,812,891)
219,494
(1,462,406)
cents
(7.4)
cents
(3.3)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
14
13
Equity
13,579,949
Issued capital
4,500
Option capital
(1,828,582)
Reserves
(8,412,337)
Accumulated losses
11,952,582
4,500
(1,951,651)
(1,681,900)
TOTAL EQUITY
3,343,530
8,323,531
The above statement of financial position should be read in conjunction with the accompanying notes.
2019 Annual Report
Page 22
2019 Annual Report
Page 23
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CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2019
Cash Flows from Operating Activities
Payments to suppliers and employees
Payments for exploration and evaluation
Interest received
Year ended 30
June 2019
A$
Period from 6
September 2017
to 30 June 2018
A$
Note
(668,591)
(5,941,606)
39,920
(450,421)
(890,613)
15,615
Net cash used in operating activities
15
(6,570,277)
(1,325,419)
Cash Flows from Investing Activities
Cash recognised on acquisition of subsidiary
Payments for purchase of fixed assets
Payments for bonds and deposits
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from the issue of shares and options
Payments for share and option issue costs
Loan repayments
Net cash generated by financing activities
-
(116,183)
(127,510)
(243,693)
1,935,306
(147,910)
(11,509)
1,775,887
36,079
(456,715)
-
(420,636)
9,504,500
(885,787)
(89,013)
8,529,700
Net increase/(decrease) in cash held
(5,038,083)
6,783,645
Cash and cash equivalents at the beginning of the
year
Effect of foreign exchange on cash and cash
equivalents
6,795,421
-
122,545
11,776
Cash and cash equivalents at the end of the year
6
1,879,883
6,795,421
The above statement of cash flows should be read in conjunction with the accompanying notes.
2019 Annual Report
Page 25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
These consolidated financial statements and notes represent those of Eagle Mountain Mining Limited and its
controlled entities (the “Group”). Eagle Mountain Mining Limited is a public limited liability company, incorporated
and domiciled in Australia.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The
financial statements for the year ended 30 June 2019 were approved and authorised for issue by the Board of
Directors on 17 September 2019.
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
(a) Basis of Preparation
These general purpose financial statements for the reporting year ended 30 June 2019 have been prepared
in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements of the Australian Accounting Standards Board. The financial
statements and notes comply with International Financial Reporting Standards.
The financial report has been prepared on an accruals basis and is based on historical cost and does not
take into account changing money values or, except where stated, current valuations of non-current assets.
Cost is based on the fair values of the consideration given in exchange for assets.
(i) Going Concern
The Group has incurred a loss of $6,890,466 and a net operating cash outflow of $6,570,277 during the
year ended 30 June 2019. Cash assets at 30 June 2019 were $1,879,883 and total liabilities at that date
were $320,431.
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal
course of business. The ability of the Group to continue to adopt the going concern assumption will depend
on future successful capital raisings, the successful exploration and subsequent exploitation of the Group’s
mining licences and permits, and/or sale of non-core assets.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. The Directors reasonably expect that the Company will be able to raise sufficient capital to
fund the Group’s exploration and working capital requirements, and that the Group will be able to settle
debts as and when they become due and payable. On this basis, the Directors are therefore of the opinion
that the use of the going concern basis is appropriate in the circumstances.
Should the Company be unable to raise the required funding, there is a material uncertainty that may cast
significant doubt on whether the company will be able to continue as a going concern and therefore,
whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and
at the amounts stated in the financial report.
(ii) Basis of Consolidation
The financial information comprises the financial information of Eagle Mountain and entities (including
special purpose entities) controlled by Eagle Mountain (its “subsidiaries”).
Control is achieved when Eagle Mountain:
•
•
•
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
Eagle Mountain reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
2019 Annual Report
Page 26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
These consolidated financial statements and notes represent those of Eagle Mountain Mining Limited and its
controlled entities (the “Group”). Eagle Mountain Mining Limited is a public limited liability company, incorporated
and domiciled in Australia.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The
financial statements for the year ended 30 June 2019 were approved and authorised for issue by the Board of
Directors on 17 September 2019.
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
(a) Basis of Preparation
These general purpose financial statements for the reporting year ended 30 June 2019 have been prepared
in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements of the Australian Accounting Standards Board. The financial
statements and notes comply with International Financial Reporting Standards.
The financial report has been prepared on an accruals basis and is based on historical cost and does not
take into account changing money values or, except where stated, current valuations of non-current assets.
Cost is based on the fair values of the consideration given in exchange for assets.
(i) Going Concern
were $320,431.
The Group has incurred a loss of $6,890,466 and a net operating cash outflow of $6,570,277 during the
year ended 30 June 2019. Cash assets at 30 June 2019 were $1,879,883 and total liabilities at that date
The financial statements have been prepared on the going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal
course of business. The ability of the Group to continue to adopt the going concern assumption will depend
on future successful capital raisings, the successful exploration and subsequent exploitation of the Group’s
mining licences and permits, and/or sale of non-core assets.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. The Directors reasonably expect that the Company will be able to raise sufficient capital to
fund the Group’s exploration and working capital requirements, and that the Group will be able to settle
debts as and when they become due and payable. On this basis, the Directors are therefore of the opinion
that the use of the going concern basis is appropriate in the circumstances.
Should the Company be unable to raise the required funding, there is a material uncertainty that may cast
significant doubt on whether the company will be able to continue as a going concern and therefore,
whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and
at the amounts stated in the financial report.
(ii) Basis of Consolidation
The financial information comprises the financial information of Eagle Mountain and entities (including
special purpose entities) controlled by Eagle Mountain (its “subsidiaries”).
Control is achieved when Eagle Mountain:
has power over the investee;
•
•
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.
Eagle Mountain reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ii) Basis of Consolidation (Continued)
The financial information of subsidiaries is prepared for the same reporting period as Eagle Mountain,
using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting
policies that may exist. All inter-company balances and transactions, including unrealised profits arising
from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs
cannot be recovered.
Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to
be consolidated from the date on which control is transferred out of the Group. Total comprehensive
income of subsidiaries is attributed to the owners of Eagle Mountain and to the non-controlling interests
even if this results in the non-controlling interests having a deficit balance.
Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in
the consolidated statement of profit or loss and other comprehensive income from the date Eagle
Mountain gains control until the date when Eagle Mountain ceases to control the subsidiary.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated
as the difference between:
the aggregate of the fair value of the consideration received and the fair value of any retained
•
interest; and
•
the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and
any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are
accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary
(i.e. reclassified to profit and loss or transferred to another category of equity as specified/permitted by
the applicable Accounting Standards). The fair value of any investment retained in the former subsidiary
at the date when control is lost is regarded as the fair value on initial recognition for subsequent
accounting under AASB 9, or when applicable, the cost on initial recognition of an investment in an
associate or a joint venture.
(iii) New Accounting Standards Adopted in the Current Year
Application of New and Revised Accounting Standards
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current
reporting period. The adoption of these Accounting Standards and Interpretations did not have any
significant impact on the financial performance or position of the Group during the financial year.
Impact of Changes – AASB 9 Financial Instruments
The Company has adopted AASB 9 from 1 July 2018 which have resulted in changes to accounting policies
and the analysis for possible adjustments to amounts recognised in the financial statements. In
accordance with the transitional provisions in AASB 9, the reclassifications and adjustments are not
reflected in the statement of financial position as at 30 June 2018. The Company has not recognised a
loss allowance on trade and other receivables following assessment of the impact of the new impairment
model introduced by AASB 9.
Classification and Measurement
On 1 July 2018, the Company has assessed which business models apply to the financial instruments
held by the Company and have classified them into the appropriate AASB 9 categories. The main effects
resulting from this reclassification are shown in the table below.
2019 Annual Report
Page 26
2019 Annual Report
Page 27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ii)
New Accounting Standards Adopted in the Current Year (Continued)
On adoption of AASB 9, the Company classified financial assets and liabilities as measured at either
amortised cost or fair value, depending on the business model for those assets and on the asset’s
contractual cash flow characteristics. There were no changes in the measurement of the Company’s
financial instruments.
There was no impact on the statement of comprehensive income or the statement of changes in equity
on adoption of AASB 9 in relation to classification and measurement of financial assets and liabilities.
2019 Annual Report
Page 28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(ii)
New Accounting Standards Adopted in the Current Year (Continued)
On adoption of AASB 9, the Company classified financial assets and liabilities as measured at either
amortised cost or fair value, depending on the business model for those assets and on the asset’s
contractual cash flow characteristics. There were no changes in the measurement of the Company’s
financial instruments.
There was no impact on the statement of comprehensive income or the statement of changes in equity
on adoption of AASB 9 in relation to classification and measurement of financial assets and liabilities.
The following table summarises the impact on the classification and measurement of the Company’s
financial instruments at 1 July 2018:
Presented in statement of
Financial
financial position
Asset
Bank
AASB 139
AASB 9
Reported $
Restated $
Loans and
Amortised
No change
No change
Cash and cash equivalents
deposits
receivables
Cost
Trade and other
Loans and
Loans and
Amortised
No change
No change
receivables
receivables
receivables
Cost
Loans and
Amortised
Amortised
No change
No change
Trade and other payables
payables
Cost
Cost
The Company does not currently enter into any hedge accounting and therefore there is no impact to
the Company’s financial statements.
Impairment
AASB 9 introduces a new expected credit loss (“ECL”) impairment model that requires the Company to
adopt an ECL position across the Company’s financial assets from 1 July 2018. The Company’s receivables
balance consists of GST refunds from the Australian Taxation Office and interest receivables from
recognised Australian banking institutions. While cash and cash equivalents are also subject to the
impairment requirements of AASB 9, an impairment loss would be considered immaterial.
The loss allowances for financial assets are based on the assumptions about risk of default and expected
loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on the Company’s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period. Given the Company’s receivables are from
the Australian Taxation Office and recognised Australian banking institutions, the Company has assessed
that the risk of default is minimal and as such, no impairment loss has been recognised against these
receivables as at 30 June 2019. Other amended standards adopted by the Group which do not have a
material impact on the financial statements are:
•
•
•
AASB 2016-5 Amendments to Australian Accounting Standards
Measurement of Share-based Payment Transactions
Interpretation 22 Foreign Currency Transactions and Advance Consideration
Interpretation 23 Uncertainty over Income Tax Treatments
- Classification and
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have
not been early adopted.
New Accounting Standards and Interpretations Not Yet Mandatory or Early Adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended, but are
not yet mandatory, have not been early adopted by the Group for the reporting year ended 30 June 2019.
The Group’s assessment of the impact of these new or amended Accounting Standards and
Interpretations most relevant to the Group are set out below:
AASB 16 Leases
AASB 16 Leases will replace existing accounting requirements for leases under AASB 117 Leases. Under
current requirements, leases are classified based on their nature as either finance leases which are
recognised on the statement of financial position, or operating leases, which are not recognised on the
statement of financial position.
2019 Annual Report
Page 28
2019 Annual Report
Page 29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Under AASB 16 , the Company’s accounting for operating leases as a lessee will result in the recognition
of a right-of-use (ROU) asset and an associated lease liability on the statement of financial position. The
lease liability represents the present value of future lease payments, with the exception of short term
and low value leases. An interest expense will be recognised on the lease liabilities and a depreciation
charge will be recognised for the ROU assets. There will also be additional disclosure requirements under
the new standard.
Based on the Company’s assessment to date, the adoption of AASB 16 is expected to have an immaterial
impact on the financial statements of the Company due to the minimal number, if any, of non-cancellable
leases currently entered into by the Company which would not fall under a short term or low value
exception.
Transition
The Company will initially apply AASB 16 on 1 July 2019 using the modified retrospective approach.
Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening
balance of retained earnings at 1 July 2019 with no restatement of comparative information.
When applying the modified retrospective approach to leases previously classified as operating leases
under AASB 117, the Company can elect, on a lease-by-lease basis, whether to apply a number of practical
expedients on transition. The Company is assessing the potential impact of using these practical
expedients.
Based on the current assessment and conditions of the Company, it is expected that the adoption of
AASB 16 will have minimal impact if any on the financial statements of the Company. The actual impact
of applying AASB 16 on the financial statements in the period of initial application will depend however
on future economic conditions, including the Company’s borrowing rate, the composition of the
Company’s lease portfolio, the extent to which the Company elects to use practical expedients and
recognition exemptions, and the new accounting policies, which are subject to change until the Company
presents its first financial statements that include the date of initial application.
The Company anticipates recognising rights of use assets and corresponding lease liabilities of
approximately $396,000 on 1 July 2019 in respect of the Group’s various property leases (refer note 20(b)
for further details of the Group’s lease commitments).
(b) Exploration, Evaluation and Development Expenditure
Exploration and evaluation expenditure is generally written off in the year incurred, except for acquisition
of exploration properties which is capitalised and carried forward.
When production commences, any accumulated costs for the relevant area of interest which have been
capitalised and carried forward will be amortised over the life of the area according to the rate of depletion
of the economically recoverable resources. A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to the area of interest. The
carrying value of any capitalised expenditure is assessed by the Directors each reporting period to
determine if any provision should be made for the impairment of the carrying value. The appropriateness
of the Group’s ability to recover these capitalised costs has been assessed at the end of each reporting
period and the Directors are satisfied that the value is recoverable.
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at an
overall level whenever facts and circumstances suggest that the carrying amount of the assets may exceed
recoverable amount. An impairment exists when the carrying amount of the assets exceeds the estimated
recoverable amount. The assets are then written down to their recoverable amount. Any impairment losses
are recognised in the income statement.
2019 Annual Report
Page 30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Under AASB 16 , the Company’s accounting for operating leases as a lessee will result in the recognition
of a right-of-use (ROU) asset and an associated lease liability on the statement of financial position. The
lease liability represents the present value of future lease payments, with the exception of short term
and low value leases. An interest expense will be recognised on the lease liabilities and a depreciation
charge will be recognised for the ROU assets. There will also be additional disclosure requirements under
Based on the Company’s assessment to date, the adoption of AASB 16 is expected to have an immaterial
impact on the financial statements of the Company due to the minimal number, if any, of non-cancellable
leases currently entered into by the Company which would not fall under a short term or low value
the new standard.
exception.
Transition
The Company will initially apply AASB 16 on 1 July 2019 using the modified retrospective approach.
Therefore, the cumulative effect of adopting AASB 16 will be recognised as an adjustment to the opening
balance of retained earnings at 1 July 2019 with no restatement of comparative information.
When applying the modified retrospective approach to leases previously classified as operating leases
under AASB 117, the Company can elect, on a lease-by-lease basis, whether to apply a number of practical
expedients on transition. The Company is assessing the potential impact of using these practical
expedients.
Based on the current assessment and conditions of the Company, it is expected that the adoption of
AASB 16 will have minimal impact if any on the financial statements of the Company. The actual impact
of applying AASB 16 on the financial statements in the period of initial application will depend however
on future economic conditions, including the Company’s borrowing rate, the composition of the
Company’s lease portfolio, the extent to which the Company elects to use practical expedients and
recognition exemptions, and the new accounting policies, which are subject to change until the Company
presents its first financial statements that include the date of initial application.
The Company anticipates recognising rights of use assets and corresponding lease liabilities of
approximately $396,000 on 1 July 2019 in respect of the Group’s various property leases (refer note 20(b)
for further details of the Group’s lease commitments).
(b) Exploration, Evaluation and Development Expenditure
Exploration and evaluation expenditure is generally written off in the year incurred, except for acquisition
of exploration properties which is capitalised and carried forward.
When production commences, any accumulated costs for the relevant area of interest which have been
capitalised and carried forward will be amortised over the life of the area according to the rate of depletion
of the economically recoverable resources. A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward costs in relation to the area of interest. The
carrying value of any capitalised expenditure is assessed by the Directors each reporting period to
determine if any provision should be made for the impairment of the carrying value. The appropriateness
of the Group’s ability to recover these capitalised costs has been assessed at the end of each reporting
period and the Directors are satisfied that the value is recoverable.
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at an
overall level whenever facts and circumstances suggest that the carrying amount of the assets may exceed
recoverable amount. An impairment exists when the carrying amount of the assets exceeds the estimated
recoverable amount. The assets are then written down to their recoverable amount. Any impairment losses
are recognised in the income statement.
(c)
Trade and Other Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are generally
due for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped
based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(d)
Interest Income
Interest income is recognised as it accrues.
(e)
Foreign Currency Transactions
Foreign currency transactions are translated into the functional currency of the Group which is Australian
dollars at the rates of exchange prevailing at the dates of the transaction. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary
items measured at fair value are reported at the exchange rate at the date when fair values were
determined.
Exchange differences arising on the translation of monetary items are recognised in the consolidated
statement of profit or loss and other comprehensive income. Exchange differences arising on the
translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is
directly recognised in equity, otherwise the exchange difference is recognised in the consolidated
statement of profit or loss and other comprehensive income.
(f) Operating Segments
An operating segment is a component of an entity that engages in business activities from which it may
earn revenues and incur expenses (including revenues and expenses relating to transactions with other
components of the same entity), whose operating results are regularly reviewed by the entity's chief
operating decision maker to make decisions about resources to be allocated to the segment and assess
its performance and for which discrete financial information is available. This includes start-up operations
which are yet to earn revenues. The chief operating decision maker has been identified as the Board of
Directors taken as a whole. Management will also consider other factors in determining operating
segments such as the existence of a line manager and the level of segment information presented to the
Board of Directors.
Operating segments have been identified based on the information provided to the Board of Directors.
(g)
Financial Instruments
Investments and other financial assets are initially measured at fair value. Transaction costs are included
as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets
are subsequently measured at either amortised cost or fair value depending on their classification.
Classification is determined based on both the business model within which such assets are held and the
contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the Group has transferred substantially all the risks and rewards of ownership. When there
is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.
Financial assets at fair value through profit or loss
2019 Annual Report
Page 30
2019 Annual Report
Page 31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention
of making a profit, or a derivative; or
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised
in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon
initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the Group's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(h) Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
(i)
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly
liquid investments with original maturities of three months or less, and bank overdrafts.
(j)
Impairment of Assets
At each reporting date, the Group reviews the carrying amounts of its tangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if
any). Where the asset does not generate cash flows that are independent from the other assets, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
2019 Annual Report
Page 32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Financial assets at fair value through other comprehensive income include equity investments which the
Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon
(k) Property, Plant and Equipment
If the recoverable amount of an asset (or cash-generated unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value,
in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss
subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years.
A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is
carried at fair value, in which case the impairment loss is treated as a revaluation increase.
Property, plant and equipment assets are initially recognised at acquisition cost or manufacturing cost,
including any costs directly attributable to bringing the assets to the location and condition necessary for
the assets to be capable of operating in the manner intended by the Group’s management.
Property, plant and equipment assets are subsequently measured using the cost model which reflects cost
less subsequent depreciation and impairment losses. Depreciation is recognised on a diminishing value
basis to write down the cost less estimated residual value of the assets.
Leasehold improvements are capitalised and subsequently amortised over the term of the respective lease.
The following depreciation rates are applied to property, plant and equipment assets on the diminishing value
basis:
•
•
Motor vehicles: 25%
Other property, plant and equipment: 20-50%
Material residual value estimates and estimates of useful life are updated as required, but at least annually.
Gains or losses arising on the disposal of property, plant and equipment assets are determined as the
difference between the disposal proceeds and the carrying amount of the assets and are recognised in
profit or loss within other income or other expenses.
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (“ATO”). In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability
in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are
classified as operating cash flows.
(m) Taxation
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit and loss is the tax payable on the taxable income using
applicable income tax rates enacted or substantially enacted as at the end of the reporting period. Current
tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the
relevant taxation authority.
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised
of making a profit, or a derivative; or
in profit or loss.
Financial assets at fair value through other comprehensive income
initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the Group's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12
month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has increased
significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit
or loss.
(h) Borrowings
(i)
Cash and Cash Equivalents
(j)
Impairment of Assets
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest method.
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly
liquid investments with original maturities of three months or less, and bank overdrafts.
At each reporting date, the Group reviews the carrying amounts of its tangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if
any). Where the asset does not generate cash flows that are independent from the other assets, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
2019 Annual Report
Page 32
2019 Annual Report
Page 33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial information. Deferred tax assets
also result where amounts have been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Where temporary differences exist in relation to investments in subsidiaries and associates, deferred tax
assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
(n) Trade and Other Payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
(o) Provisions and Contingencies
Provisions are recognised when the Group has a legal or constructive obligation, as a result of a past event,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
(p)
Employee benefits
Short Term Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts
expected to be paid when the liabilities are settled.
Other Long Term Employee Benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect of
services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(q) Share Based Payment Transactions
The Group recognises the fair value of options granted to Directors, employees and consultants as
remuneration as an expense on a pro-rata basis over the vesting period in the consolidated statement of
profit or loss and other comprehensive income with a corresponding adjustment to equity.
The Group provides benefits to employees (including Directors) of the Group in the form of share based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transactions”). The cost of these equity-settled transactions with employees (including
Directors) is measured by reference to fair value at the date they are granted. The fair value is determined
using the Black Scholes option pricing model.
2019 Annual Report
Page 34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial information. Deferred tax assets
also result where amounts have been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Where temporary differences exist in relation to investments in subsidiaries and associates, deferred tax
assets and liabilities are not recognised where the timing of the reversal of the temporary difference can
be controlled and it is not probable that the reversal will occur in the foreseeable future.
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
Provisions are recognised when the Group has a legal or constructive obligation, as a result of a past event,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
(n) Trade and Other Payables
(o) Provisions and Contingencies
measured.
(p)
Employee benefits
Short Term Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts
expected to be paid when the liabilities are settled.
Other Long Term Employee Benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect of
services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures and
periods of service. Expected future payments are discounted using market yields at the reporting date on
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated
future cash outflows.
Defined Contribution Superannuation Expense
incurred.
(q) Share Based Payment Transactions
Contributions to defined contribution superannuation plans are expensed in the period in which they are
The Group recognises the fair value of options granted to Directors, employees and consultants as
remuneration as an expense on a pro-rata basis over the vesting period in the consolidated statement of
profit or loss and other comprehensive income with a corresponding adjustment to equity.
The Group provides benefits to employees (including Directors) of the Group in the form of share based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transactions”). The cost of these equity-settled transactions with employees (including
Directors) is measured by reference to fair value at the date they are granted. The fair value is determined
using the Black Scholes option pricing model.
(r)
Issued Capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of
the share proceeds received.
(s) Critical Accounting Estimates and Judgments
In preparing the financial information, the Group has been required to make certain estimates and
assumptions concerning future occurrences. There is an inherent risk that the resulting accounting
estimates will not equate exactly with actual events and results.
(i)
Significant Accounting Judgements
In the process of applying the Group’s accounting policies, management has made the following
judgements, apart from those involving estimations, which have the most significant effect on the amounts
recognised in the financial statements:
Acquisition of Silver Mountain Mining Pty Ltd
On 7 December 2017 Eagle Mountain acquired a 100% interest in the issued capital of Silver Mountain
Mining Pty Ltd, an entity which controls the Silver Mountain Project located in Arizona in the United States
of America.
Eagle Mountain acquired the entire share capital of Silver Mountain from an entity associated with Mr
Charles Bass. Mr Bass was a Director holding an interest in the entire shareholding of Eagle Mountain. As
such, the Directors considered the acquisition to be a common control transaction. Accordingly, the excess
in fair value of consideration given over the net assets acquired was allocated to a common control reserve.
(ii)
Significant Accounting Estimates and Assumptions
The carrying amount of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual
reporting period are:
Key Estimates – Impairment of Capitalised Exploration and Evaluation Expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number
of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future
technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Key Estimates – Share Based Payment Transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. Fair values of share options are determined
using the Black Scholes option pricing model. Should the assumptions used in these calculations differ, the
amounts recognised could significantly change.
2019 Annual Report
Page 34
2019 Annual Report
Page 35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Key Estimates – Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the
best estimates of the Directors. These estimates take into account both the financial performance and
position of the Group as they pertain to current income taxation legislation, and the Directors’
understanding thereof. No adjustment has been made for pending or future taxation legislation. The
current income tax position represents the Directors’ best estimate, pending an assessment by the ATO.
Key Judgment – Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation. At the current stage of the Group’s development and its current
environmental impact, the Directors believe such treatment is reasonable and appropriate.
(t)
Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly unforced transaction between independent, knowledgeable and willing market participants at
the measurement date.
(u) Comparative Information
Comparative information has been included for the period from when the Company was incorporated on 6
September 2017 to 30 June 2018.
2019 Annual Report
Page 36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Key Estimates – Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the
best estimates of the Directors. These estimates take into account both the financial performance and
position of the Group as they pertain to current income taxation legislation, and the Directors’
understanding thereof. No adjustment has been made for pending or future taxation legislation. The
current income tax position represents the Directors’ best estimate, pending an assessment by the ATO.
Key Judgment – Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or
enacted environmental legislation. At the current stage of the Group’s development and its current
environmental impact, the Directors believe such treatment is reasonable and appropriate.
(t)
Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly unforced transaction between independent, knowledgeable and willing market participants at
the measurement date.
(u) Comparative Information
Comparative information has been included for the period from when the Company was incorporated on 6
September 2017 to 30 June 2018.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
RELATED PARTY TRANSACTIONS
2.
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
o
o
o
The Company has entered into a lease agreement with Elk Mountain Mining Limited (“Elk”), an entity
associated with Mr Charles Bass, for the lease of the Company’s administration offices in Perth, Western
Australia (refer note 20 for details of commitments under the lease agreement). During the year the
Company incurred a total of $86,590 in respect of rent, outgoings and car parking pursuant to the lease
agreement (2018: $48,421).
During the period ended 30 June 2018, the Company issued 37,500,000 ordinary fully paid shares at a
deemed price of 10 cents per share and 4,500,000 options over unissued shares exercisable at 30 cents
each and expiring 3 years from the date of grant to Silver Mountain Mining Nominee Pty Ltd, an entity
associated with a Director Mr Charles Bass, in consideration for the acquisition of the issued capital of Silver
Mountain Mining Pty Ltd (refer note 24).
During the period ended 30 June 2018, an amount of $85,447 owing by the Group to Silver Mountain
Mining Nominee Pty Ltd, an entity associated with Mr Charles Bass, was repaid in full.
3.
REMUNERATION OF AUDITORS
Audit and review of the financial statements
Other services
Total
Year ended
30 June 2019
A$
25,000
Period from 6
September 2017 to 30
June 2018
A$
17,500
3,880
28,880
14,248
31,748
The auditor of Eagle Mountain Mining Limited is William Buck Audit (WA) Pty Ltd. During the reporting period
William Buck Audit (WA) Pty Ltd and its related entities provided non-audit services amounting to $3,880 (2018:
$14,248) to members of the Eagle Mining Group.
4.
LOSS FROM ORDINARY ACTIVITIES
Included in the loss before income tax are the
following specific items of income/(expenses):
Gains on foreign exchange
Movements in employee leave liabilities
Project generation costs
Year ended
30 June 2019
A$
Period from 6
September 2017 to
30 June 2018
A$
113,997
(59,391)
(30,402)
-
-
-
2019 Annual Report
Page 36
2019 Annual Report
Page 37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
5.
INCOME TAX EXPENSE
Year ended 30 June
2019
A$
Period from 6
September 2017 to
30 June 2018
A$
-
-
-
-
(521,799)
(355,304)
521,799
355,304
-
-
Current tax:
Current income tax charge/(benefit)
Current income tax benefit not recognised
Deferred tax:
Relating to origination and reversal of timing
differences
Deferred tax benefit not recognised
(a)
The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax
as follows:
Loss before tax
(6,890,466)
(1,681,900)
The prima facie tax on loss from ordinary activities
attributable to parent entity before income tax:
Prima facie tax (benefit) on loss from ordinary
activities before income tax at 27.5%
Add/(Less) tax effect of:
Exploration costs not deducted for tax
Non deductible share based payments
Share issue costs deducted
Deferred tax asset not brought to account
Income tax attributable to entity
b) Deferred tax – Balance Sheet
Liabilities
Prepaid expenses
Accrued income
Assets
Accrued expenses
Employee leave liabilities
Revenue losses available to offset against future
taxable income
Deductible equity raising costs
(1,894,878)
(462,523)
1,646,348
12,511
(56,853)
292,872
-
9,803
-
9,803
11,941
16,333
679,937
178,695
886,906
243,860
79,063
(48,718)
188,318
-
8,802
3,447
12,249
-
-
172,680
194,873
367,553
Net deferred tax asset not recognised
877,103
355,304
2019 Annual Report
Page 38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
5.
INCOME TAX EXPENSE
5.
INCOME TAX EXPENSE (CONTINUED)
c) Deferred tax – Income Statement
Liabilities
Prepaid expenses
Accrued income
Assets
Accrued expenses
Employee leave liabilities
Deductible equity raising costs
Increase in tax losses carried forward
Deferred tax benefit movement not recognised
Year ended 30
June 2019
A$
Period from 6
September 2017 to
30 June 2018
A$
(1,001)
3,447
11,941
16,333
(16,178)
507,257
521,799
(8,802)
(3,447)
-
-
194,873
172,680
355,304
The deferred tax benefit of tax losses not brought to account will only be obtained if:
(i)
The Company derives future assessable income of a nature and an amount sufficient to enable the benefit
from the tax losses to be realised;
The Company continues to comply with the conditions for deductibility imposed by tax legislation; and
No changes in tax legislation adversely affect the Company realising the benefit from the deduction of the losses.
(ii)
(iii)
6.
CASH AND CASH EQUIVALENTS
Cash at bank
Deposits at call
Total
30 June 2019
A$
1,879,883
-
1,879,883
30 June 2018
A$
2,058,849
4,736,572
6,795,421
Included in cash at bank of $1,879,883 (2018: $2,058,849) are amounts held in US dollar denominated bank
accounts equivalent to $229,270 (2018: $1,895,194).
7. TRADE AND OTHER RECEIVABLES
GST receivable
Accrued income and other receivables
Prepaid expenses and deposits
Total
30 June 2019
A$
30 June 2018
A$
2,725
16,253
35,648
54,626
5,220
12,534
41,965
59,719
Net deferred tax asset not recognised
877,103
355,304
2019 Annual Report
Page 38
2019 Annual Report
Page 39
Year ended 30 June
Period from 6
2019
September 2017 to
A$
30 June 2018
Current tax:
Current income tax charge/(benefit)
Current income tax benefit not recognised
Deferred tax:
differences
as follows:
Loss before tax
Relating to origination and reversal of timing
(521,799)
(355,304)
Deferred tax benefit not recognised
521,799
355,304
(a)
The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax
The prima facie tax on loss from ordinary activities
attributable to parent entity before income tax:
Prima facie tax (benefit) on loss from ordinary
activities before income tax at 27.5%
(1,894,878)
(462,523)
(6,890,466)
(1,681,900)
-
-
-
1,646,348
12,511
(56,853)
292,872
-
9,803
-
9,803
11,941
16,333
679,937
178,695
886,906
A$
-
-
-
243,860
79,063
(48,718)
188,318
-
8,802
3,447
12,249
-
-
172,680
194,873
367,553
Add/(Less) tax effect of:
Exploration costs not deducted for tax
Non deductible share based payments
Share issue costs deducted
Deferred tax asset not brought to account
Income tax attributable to entity
b) Deferred tax – Balance Sheet
Liabilities
Prepaid expenses
Accrued income
Assets
Accrued expenses
Employee leave liabilities
Revenue losses available to offset against future
taxable income
Deductible equity raising costs
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
8.
EXPLORATION AND EVALUATION EXPENDITURE – LAND
Movement during the period
Carrying value – beginning of year
Recognised on acquisition of Silver Mountain Mining Pty Ltd1
Effect of movement in foreign exchange rates
Carrying value – end of the year
30 June 2019
A$
30 June 2018
A$
1,104,495
-
59,532
-
969,897
134,598
1,164,027
1,104,495
1Capitalised exploration asset acquisition costs recognised on acquisition of Silver Mountain Mining Pty Ltd.
Exploration and evaluation expenditure – land is held by Silver Mountain Mining LLC, which is a 100% owned US
based subsidiary of Silver Mountain Mining Pty Ltd.
The recoverability of the carrying amount of the exploration and evaluation assets is dependent upon successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
9.
PROPERTY, PLANT AND EQUIPMENT
Cost at the beginning of the year
Effect of foreign exchange movements
Additions
Cost at the end of the year
the
Accumulated depreciation at
beginning of the year
Effect of foreign exchange movements
Depreciation charged in the year
Accumulated depreciation at the end of
the year
Net book value at the beginning of the
year
Net book value at the end of the year
Leasehold
improvements
A$
306,122
1,658
48,631
356,411
(30,514)
(466)
(78,827)
Office
equipment and
furniture
A$
77,489
2,159
5,727
Field
equipment
and vehicles
A$
146,013
8,253
61,817
Total
A$
529,625
12,070
128,246
85,375
216,084
657,870
(9,071)
(26,464)
(66,049)
(495)
(33,836)
(1,393)
(41,480)
(2,354)
(154,143)
(109,807)
(43,402)
(69,337)
(222,546)
275,608
68,418
119,549
463,576
246,604
41,973
146,747
435,324
Assets with a net book value of A$54,201 (2018: A$65,573) held by Silver Mountain Mining Operations Inc. are
pledged as security in respect of vehicle loan liabilities (refer note 11).
10. TRADE AND OTHER PAYABLES
Current
Trade creditors and accrued expenses
Other creditors
Payroll liabilities
Total
2019 Annual Report
Page 40
30 June 2019
A$
30 June 2018
A$
173,713
1,496
49,439
224,648
38,775
1,419
14,624
54,818
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
8.
EXPLORATION AND EVALUATION EXPENDITURE – LAND
11. BORROWINGS
Movement during the period
Carrying value – beginning of year
Recognised on acquisition of Silver Mountain Mining Pty Ltd1
Effect of movement in foreign exchange rates
Carrying value – end of the year
30 June 2019
30 June 2018
A$
1,104,495
-
59,532
A$
-
969,897
134,598
1,164,027
1,104,495
1Capitalised exploration asset acquisition costs recognised on acquisition of Silver Mountain Mining Pty Ltd.
Exploration and evaluation expenditure – land is held by Silver Mountain Mining LLC, which is a 100% owned US
based subsidiary of Silver Mountain Mining Pty Ltd.
The recoverability of the carrying amount of the exploration and evaluation assets is dependent upon successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
9.
PROPERTY, PLANT AND EQUIPMENT
Leasehold
Office
Field
Total
improvements
equipment and
equipment
furniture
and vehicles
A$
306,122
1,658
48,631
356,411
(30,514)
(466)
(78,827)
A$
77,489
2,159
5,727
85,375
A$
146,013
8,253
61,817
A$
529,625
12,070
128,246
216,084
657,870
(9,071)
(26,464)
(66,049)
(495)
(33,836)
(1,393)
(41,480)
(2,354)
(154,143)
(109,807)
(43,402)
(69,337)
(222,546)
Net book value at the beginning of the
275,608
68,418
119,549
463,576
Net book value at the end of the year
246,604
41,973
146,747
435,324
Assets with a net book value of A$54,201 (2018: A$65,573) held by Silver Mountain Mining Operations Inc. are
pledged as security in respect of vehicle loan liabilities (refer note 11).
Cost at the beginning of the year
Effect of foreign exchange movements
Additions
Cost at the end of the year
Accumulated depreciation
at
the
beginning of the year
Effect of foreign exchange movements
Depreciation charged in the year
Accumulated depreciation at the end of
the year
year
10. TRADE AND OTHER PAYABLES
Trade creditors and accrued expenses
Current
Other creditors
Payroll liabilities
Total
30 June 2019
30 June 2018
A$
A$
173,713
1,496
49,439
224,648
38,775
1,419
14,624
54,818
Current
Vehicle loan amounts due within one year
10,908
10,331
30 June 2019
A$
30 June 2018
A$
Non-Current
Vehicle loan amounts due after one year
25,484
34,531
Vehicle loan amounts are secured over assets with a net book value of A$54,201 (2018: A$65,573) held by
Silver Mountain Mining Operations Inc. (refer note 9).
12. OPTIONS AND EQUITY BASED PAYMENTS
Options – Reconciliation of Movements
Options on issue at the beginning of the year
Consideration options issued1
Remuneration options issued2
Initial Public Offer options3
Offer options issued – entitlement offer4
Offer options exercised – entitlement offer4
Options cancelled on expiry – entitlement offer4
Options issued on exercise of offer options – entitlement offer4
Options issued to employees5
Options issued attaching to entitlement offer securities6
Options on issue at 30 June
30 June
2019
No.
16,000,000
-
-
-
23,125,000
(26,599)
(23,098,401)
26,599
2,130,000
5,644,716
23,801,315
30 June
2018
No.
-
4,500,000
7,000,000
4,500,000
-
-
-
-
-
-
16,000,000
1 During the period ended 30 June 2018, the Company issued 4,500,000 options over unissued shares exercisable
at 30 cents each and expiring 3 years from the date of grant in part consideration for the acquisition of Silver
Mountain Mining Pty Ltd (refer note 14b and note 24).
2 The Company issued 7,000,000 options over unissued shares, exercisable at 20 cents each and expiring 5 years
from the date of grant to officers and employees of the Company following shareholder approval received on
15 January 2018.
3 The Company issued 4,500,000 options over unissued shares exercisable at 30 cents each and expiring 6 March
2021 pursuant to the Initial Public Offer prospectus dated 23 January 2018.
4 The Company issued options at a price of 1 cent per option pursuant to an entitlement offer exercisable at 40
cents each expiring 15 December 2018. Upon exercise into shares the holder received a further option for each
share exercised at 80 cents each and expiring 12 months from issue.
5 Unlisted options issued to employees of the Company pursuant to the Company’s employee share option plan.
6 Unlisted options issued to subscribers to the non-renounceable pro-rata entitlement offer of shares which closed
on 7 June 2019.
2019 Annual Report
Page 40
2019 Annual Report
Page 41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
12. OPTIONS AND EQUITY BASED PAYMENTS (CONTINUED)
Option Capital – Reconciliation of Movements
Issue
Price
A$
Balance at the beginning of the year
Initial Public Offer options
Offer options issued – entitlement offer
Less: costs of option entitlement offer
Less: transfer to reserves on exercise/expiry of offer
options
$0.001
$0.01
N/a
N/a
30 June
2019
A$
4,500
-
231,250
(71,221)
(160,029)
4,500
30 June
2018
A$
-
4,500
-
-
-
4,500
Options outstanding at the beginning
of the year
Options granted during the year
Options exercised during the year
Options
unexercised during the year
Options outstanding at 30 June
and expired
cancelled
2019
Weighted
Average
Exercise
Price (cents)
25.6
35.0
40.0
20.0
23.8
2018
Weighted
Average
Exercise
Price (cents)
-
25.6
-
-
25.6
No.
-
16,000,000
-
-
16,000,000
No.
16,000,000
30,926,315
(26,599)
(23,098,401)
23,801,315
Basis and Assumptions Used in the Valuation of Options
The options issued during the year were valued using the Black-Scholes option valuation methodology, using the
following inputs:
Date granted
6 May 2019
Number of
options
granted
2,130,000
Exercise
price
(cents)
20
Risk free
interest
rate used
1.39%
Volatility
applied
99%
Value of
Options
$216,165
Expiry date
1 Feb 2023
Historical volatility for comparable listed exploration companies has been used as the basis for determining
expected share price volatility. An expense of $27,242 has been recognised through the consolidated statement
of profit or loss and other comprehensive income for the year ended 30 June 2019 (2018: $280,000) in respect of
the vesting of options during the year.
Weighted Average Contractual Life
The weighted average contractual life for unexercised options is 28.4 months (2018: 34.9 months).
Performance Rights
During the year ended 30 June 2019 the Company issued 105,000 performance rights to an employee on the following
terms:
Number of
Performance Rights
35,000
35,000
35,000
Vesting Date
Expiry Date
1 Jul 2019
1 Jul 2020
1 Jul 2021
1 Jul 2026
1 Jul 2027
1 Jul 2028
Value of Performance
Rights
$11,200
$11,200
$11,200
$33,600
2019 Annual Report
Page 42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
12. OPTIONS AND EQUITY BASED PAYMENTS (CONTINUED)
Option Capital – Reconciliation of Movements
Balance at the beginning of the year
Initial Public Offer options
Offer options issued – entitlement offer
Less: costs of option entitlement offer
Less: transfer to reserves on exercise/expiry of offer
options
Issue
Price
A$
$0.001
$0.01
N/a
N/a
30 June
2019
A$
4,500
-
231,250
(71,221)
(160,029)
30 June
2018
A$
4,500
-
-
-
-
4,500
4,500
No.
Price (cents)
No.
Price (cents)
2019
Weighted
Average
Exercise
25.6
35.0
40.0
20.0
23.8
2018
Weighted
Average
Exercise
16,000,000
25.6
-
-
-
-
-
-
16,000,000
25.6
Options outstanding at the beginning
of the year
Options granted during the year
Options exercised during the year
Options
cancelled
and expired
unexercised during the year
Options outstanding at 30 June
16,000,000
30,926,315
(26,599)
(23,098,401)
23,801,315
Basis and Assumptions Used in the Valuation of Options
The options issued during the year were valued using the Black-Scholes option valuation methodology, using the
following inputs:
Number of
Exercise
Date granted
6 May 2019
2,130,000
options
granted
price
(cents)
20
Risk free
interest
rate used
1.39%
Volatility
applied
Value of
Options
99%
$216,165
Expiry date
1 Feb 2023
Historical volatility for comparable listed exploration companies has been used as the basis for determining
expected share price volatility. An expense of $27,242 has been recognised through the consolidated statement
of profit or loss and other comprehensive income for the year ended 30 June 2019 (2018: $280,000) in respect of
the vesting of options during the year.
Weighted Average Contractual Life
Performance Rights
terms:
The weighted average contractual life for unexercised options is 28.4 months (2018: 34.9 months).
During the year ended 30 June 2019 the Company issued 105,000 performance rights to an employee on the following
Number of
Vesting Date
Expiry Date
Value of Performance
Performance Rights
35,000
35,000
35,000
1 Jul 2019
1 Jul 2020
1 Jul 2021
1 Jul 2026
1 Jul 2027
1 Jul 2028
Rights
$11,200
$11,200
$11,200
$33,600
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
12. OPTIONS AND EQUITY BASED PAYMENTS (CONTINUED)
2019
105,000 performance rights were granted on 29 August 2018 and valued at 32 cents per right based on the
determined underlying value of the Company’s shares. An expense of $18,252 has been recognised through the
consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2019 in
respect of the vesting of these rights during the period.
2018
75,000 performance rights were granted on 15 January 2018 and valued at 10 cents per right based on the
determined underlying value of the Company’s shares. An expense of $7,500 has been recognised through the
consolidated statement of profit or loss and other comprehensive income for the period ended 30 June 2018 in
respect of the issue of the 75,000 performance rights granted as remuneration.
13.
ISSUED CAPITAL
Shares
Year ended
30 June 2019
Period 6 September
2017 to 30 June 2018
Balance at the beginning of the
year
92,500,001 11,952,582
Issue price
Shares
A$
Shares
Shares issued on incorporation
Shares issued to acquire Silver
Mountain Mining Pty Ltd (note
24)
Shares
investors
to pre-IPO
issued
Shares issued to IPO investors
Shares issued on exercise of
options
Entitlement issue shares issued
Less: share issue costs – share
based (refer note 12)
Less: share issue costs – cash *
Balance at 30 June
$0.20
$0.10
$0.10
$0.20
$0.40
$0.15
-
-
A$
-
-
-
-
1
- 37,500,000
3,750,000
- 15,000,000
1,500,000
- 40,000,000
8,000,000
-
-
-
-
26,599
10,640
11,289,439
1,693,416
-
-
-
-
-
-
-
(411,631)
-
(885,787)
103,816,039 13,579,949 92,500,001 11,952,582
(76,689)
-
* No deferred tax asset has been recognised in respect of the share issue costs as at the date of the financial
report it is not probable that it will be realised (refer note 5).
The Company is a public company limited by shares. The Company was incorporated in Perth, Western Australia.
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid on
the shares respectively held by them.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary
shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled
to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
2019 Annual Report
Page 42
2019 Annual Report
Page 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
14. RESERVES
Foreign currency translation reserve
Share based payments reserve
Common control reserve
Movements:
a)
Foreign currency translation reserve
Balance at the beginning of the year
Exchange gains for the year
Balance at 30 June
As at 30 June
2019
A$
As at 30 June
2018
A$
297,069
888,625
219,494
843,131
(3,014,276)
(3,014,276)
(1,828,582)
(1,951,651)
Year ended
30 June 2019
A$
219,494
77,575
297,069
Period 6
September
2017 to 30
June 2018
A$
-
219,494
219,494
Foreign currency translation reserve
The foreign currency translation reserve records unrealised exchange gains and losses on translation of
controlled entities accounts during the year.
b)
Share based payments reserve
Balance at the beginning of the year
Fair value of options and performance rights issued during the year
(note 12, 24)
Balance at 30 June
Year ended
30 June 2019
A$
Period 6
September
2017 to 30
June 2018
A$
843,131
-
45,494
843,131
888,625
843,131
Share based payments reserve
The share based payments reserve has been used to recognise the fair value of options and performance
rights issued and vested but not exercised as at the end of the reporting year.
c)
Common control reserve
Balance at the beginning of the year
Common control transactions during the year
Balance at 30 June
2019 Annual Report
Page 44
Year ended
30 June 2019
A$
Period 6
September
2017 to 30
June 2018
A$
(3,014,276)
-
-
(3,014,276)
(3,014,276)
(3,014,276)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
14. RESERVES
14. RESERVES (Continued)
Common control reserve
The amount recognised in the common control reserve represents the excess in fair value consideration
given, over the net assets acquired, on the acquisition of Silver Mountain Mining Pty Ltd from Silver
Mountain Mining Nominees Pty Ltd on 7 December 2017 (refer note 24).
On 7 December 2017 the Directors determined that the acquisition was undertaken between entities
which were under common control due to respective share ownership.
Foreign currency translation reserve
Share based payments reserve
Common control reserve
Movements:
a)
Foreign currency translation reserve
Balance at the beginning of the year
Exchange gains for the year
Balance at 30 June
As at 30 June
As at 30 June
2019
A$
297,069
888,625
2018
A$
219,494
843,131
(3,014,276)
(3,014,276)
(1,828,582)
(1,951,651)
Year ended
30 June 2019
A$
219,494
77,575
297,069
Period 6
September
2017 to 30
June 2018
A$
-
219,494
219,494
Period 6
September
2017 to 30
June 2018
A$
-
Year ended
30 June 2019
A$
843,131
45,494
843,131
888,625
843,131
Year ended
30 June 2019
A$
(3,014,276)
Period 6
September
2017 to 30
June 2018
A$
-
-
(3,014,276)
(3,014,276)
(3,014,276)
Foreign currency translation reserve
controlled entities accounts during the year.
The foreign currency translation reserve records unrealised exchange gains and losses on translation of
b)
Share based payments reserve
Balance at the beginning of the year
Fair value of options and performance rights issued during the year
(note 12, 24)
Balance at 30 June
Share based payments reserve
The share based payments reserve has been used to recognise the fair value of options and performance
rights issued and vested but not exercised as at the end of the reporting year.
c)
Common control reserve
Balance at the beginning of the year
Common control transactions during the year
Balance at 30 June
2019 Annual Report
Page 44
2019 Annual Report
Page 45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
15. CASH FLOW INFORMATION
Reconciliation of cash flows from operating activities with loss after income
tax
Loss after income tax
Non-cash items included in profit or loss
Depreciation expense
Gains on foreign exchange
Share based payment expense
Changes in assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in prepayments
(Decrease)/increase in employee leave liabilities
(Decrease)/increase in accounts payable and accruals
(Increase)/decrease in accrued income
Year ended
30 June 2019
A$
Period 6
September
2017 to 30
June 2018
A$
(6,890,466)
(1,681,900)
154,143
(113,997)
45,494
(8,040)
(1,878)
59,391
172,542
12,534
50,038
-
287,500
2,660
(25,771)
-
54,588
(12,534)
Net cash outflows from Operating Activities
(6,570,277)
(1,325,419)
16. SEGMENT INFORMATION
AASB 8 “Operating Segments” requires operating segments to be identified on the basis of internal reports about
components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segment and to assess its performance.
The Group operates in one segment, being exploration for mineral resources. This is the basis on which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
Following the acquisition of Silver Mountain Mining Pty Ltd on 7 December 2017, the Group operates in Australia
and United States of America.
Information regarding the non-current assets by geographical location is reported below. No segment information
is provided for United States of America in relation to revenue and profit or loss for the year ended 30 June 2019
or period ended 30 June 2018.
Reconciliation of Non-Current Assets by Geographical Location
Australia
United States of America
2019 Annual Report
Page 46
30 June 2019
A$
30 June 2018
A$
225,536
1,503,916
1,729,452
295,541
1,272,530
1,568,071
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
15. CASH FLOW INFORMATION
17. SUBSEQUENT EVENTS
Reconciliation of cash flows from operating activities with loss after income
tax
Loss after income tax
Non-cash items included in profit or loss
Depreciation expense
Gains on foreign exchange
Share based payment expense
Changes in assets and liabilities:
(Increase)/decrease in receivables
(Increase)/decrease in prepayments
(Decrease)/increase in employee leave liabilities
(Decrease)/increase in accounts payable and accruals
(Increase)/decrease in accrued income
Year ended
30 June 2019
A$
Period 6
September
2017 to 30
June 2018
A$
(6,890,466)
(1,681,900)
154,143
(113,997)
45,494
(8,040)
(1,878)
59,391
172,542
12,534
50,038
-
-
287,500
2,660
(25,771)
54,588
(12,534)
Net cash outflows from Operating Activities
(6,570,277)
(1,325,419)
16. SEGMENT INFORMATION
AASB 8 “Operating Segments” requires operating segments to be identified on the basis of internal reports about
components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segment and to assess its performance.
The Group operates in one segment, being exploration for mineral resources. This is the basis on which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
and United States of America.
Following the acquisition of Silver Mountain Mining Pty Ltd on 7 December 2017, the Group operates in Australia
Information regarding the non-current assets by geographical location is reported below. No segment information
is provided for United States of America in relation to revenue and profit or loss for the year ended 30 June 2019
or period ended 30 June 2018.
Reconciliation of Non-Current Assets by Geographical Location
Australia
United States of America
30 June 2019
30 June 2018
A$
A$
225,536
1,503,916
1,729,452
295,541
1,272,530
1,568,071
Subsequent to the end of the financial year, the Company has issued 1,800,000 options exercisable at 20 cents
each and expiring 1 July 2023 to employees and issued 60,000 ordinary fully paid shares to employees on the
exercise of vested performance rights.
Other than as stated above, there has not arisen in the interval between the end of the financial year 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 Company to affect substantially the operations of the Group, the results of those operations or the state of
affairs of the Group in subsequent financial years.
18. KEY MANAGEMENT PERSONNEL
(a)
Directors and Key Management Personnel
The following persons were Directors of Eagle Mountain Mining Limited during the financial year:
(i)
(ii)
(iii)
Chairman – Non-Executive
Rick Crabb
Executive Director
Charles Bass, Managing Director
Non-Executive Director
Roger Port
Brett Rowe (as Alternate Director to Charles Bass)
There were no other persons employed by or contracted to the Company during the financial year, having
responsibility for planning, directing and controlling the activities of the Company, either directly or indirectly.
(b)
Key Management Personnel Compensation
A summary of total compensation paid to Key Management Personnel is as follows:
Total short term employment benefits
Total equity-based payments
Total post-employment benefits
Year ended
30 June 2019
A$
136,986
-
13,014
Period 6
September
2017 to 30
June 2018
A$
57,078
220,000
5,421
150,000
282,499
2019 Annual Report
Page 46
2019 Annual Report
Page 47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
19. CONTINGENT ASSETS AND LIABILITIES
The Group has an exploration service agreement with Dragon’s Deep Exploration, Inc., an Arizona corporation
(“Dragon”).
Included in this agreement is a performance bonus payable to Dragon consisting of cash together with shares in
Eagle Mountain Mining Limited (shares at market price, escrowed as required by the appropriate exchange) within
10 days of the events detailed below:
Criteria
Minimum of 24 holes completed by the Group with 70% success
within 24 months of first drilling1
Commencement of a preliminary feasibility study in respect of
any land covered by any mining claims or permits held by Silver
Mountain Mining LLC and located in Arizona, USA.2
Cash Bonus
Shares of
Value
US$50,000
US$150,000
US$100,000
US$200,000
1.
2.
Success defined as a minimum 40 gram-metre zone (Au equivalent) within each drill hole for 70% of non-
condemnation holes drilled.
The milestone satisfaction date is the date on which the Company announces to the Australian Securities
Exchange that it has commenced a pre-feasibility study on the relevant mining claims or permits. “Pre-
feasibility Study” is as defined in the Australian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (2012 Edition).
Phase 1 drilling commenced at the Silver Mountain Project on 1 October 2018 and ended in early June 2019.
Based on the completed drilling, current exploration plans and drill advancement rate it is considered unlikely that
the first criterion listed above will be met. The Group does not currently foresee a preliminary feasibility study
covering the claims held by Silver Mountain Mining LLC commencing in the near future.
Other than the above, the Group has no contingent assets or liabilities outstanding at the end of the year.
20. COMMITMENTS
(a)
Exploration Expenditure
In order to maintain the current tenure status of its exploration assets, the Group has certain obligations
and minimum expenditure requirements with respect to unpatented claims and Arizona state exploration
permits located in Arizona in the United States of America, as follows:
Within 1 year
After 1 year but not more than 5 years
Total
30 June
2019
A$
161,685
728,892
890,577
30 June
2018
A$
178,548
665,715
844,263
2019 Annual Report
Page 48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
19. CONTINGENT ASSETS AND LIABILITIES
The Group has an exploration service agreement with Dragon’s Deep Exploration, Inc., an Arizona corporation
Included in this agreement is a performance bonus payable to Dragon consisting of cash together with shares in
Eagle Mountain Mining Limited (shares at market price, escrowed as required by the appropriate exchange) within
10 days of the events detailed below:
(“Dragon”).
Criteria
Cash Bonus
Shares of
Value
US$50,000
US$150,000
Minimum of 24 holes completed by the Group with 70% success
within 24 months of first drilling1
Commencement of a preliminary feasibility study in respect of
any land covered by any mining claims or permits held by Silver
US$100,000
US$200,000
Mountain Mining LLC and located in Arizona, USA.2
Success defined as a minimum 40 gram-metre zone (Au equivalent) within each drill hole for 70% of non-
1.
2.
condemnation holes drilled.
The milestone satisfaction date is the date on which the Company announces to the Australian Securities
Exchange that it has commenced a pre-feasibility study on the relevant mining claims or permits. “Pre-
feasibility Study” is as defined in the Australian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (2012 Edition).
Phase 1 drilling commenced at the Silver Mountain Project on 1 October 2018 and ended in early June 2019.
Based on the completed drilling, current exploration plans and drill advancement rate it is considered unlikely that
the first criterion listed above will be met. The Group does not currently foresee a preliminary feasibility study
covering the claims held by Silver Mountain Mining LLC commencing in the near future.
20. COMMITMENTS
(a)
Exploration Expenditure
In order to maintain the current tenure status of its exploration assets, the Group has certain obligations
and minimum expenditure requirements with respect to unpatented claims and Arizona state exploration
permits located in Arizona in the United States of America, as follows:
After 1 year but not more than 5 years
Within 1 year
Total
30 June
2019
A$
161,685
728,892
890,577
30 June
2018
A$
178,548
665,715
844,263
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
20. COMMITMENTS (Continued)
(b)
Operating Lease Commitments
The Company has entered into a 5 year lease commencing 1 January 2018 in respect of its offices at 22
Stirling Highway, Nedlands. The initial lease cost, inclusive of estimated outgoings, is A$79,650 per annum,
with a 2% increase applied annually, and a 3 year lease for exploration offices in Arizona at an initial lease
cost of US$42,000 per annum. Operating lease commitments are as follows:
Due within 1 year
Due after 1 year but not more than 5 years
Due after more than 5 years
30 June
2019
A$
139,450
256,498
-
395,947
30 June
2018
A$
137,272
395,948
-
533,220
(c)
Asset Acquisition
The Group has no commitments for asset acquisitions at 30 June 2019 or 30 June 2018.
21. FINANCIAL RISK MANAGEMENT
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Company’s exposure to the specific risks, and the policies and processes for measuring and
managing those risks. The Board of Directors has the overall responsibility for the risk management framework
and has adopted a Risk Management Policy.
Other than the above, the Group has no contingent assets or liabilities outstanding at the end of the year.
(a) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from transactions with customers and
investments.
Trade and Other Receivables
The nature of the business activity of the Group does not result in trading receivables. The receivables that
the Group does experience through its normal course of business are short term and the most significant
recurring by quantity is receivable from the Australian Taxation Office. The risk of non-recovery of
receivables from this source is considered to be negligible.
Cash Deposits
The Directors believe any risk associated with the use of predominantly one bank is addressed through the
use of at least an A-rated bank as a primary banker. Except for this matter the Group currently has no
significant concentrations of credit risk.
(b)
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management
is cognisant of the future demands for liquid finance resources to finance the Company’s current and future
operations, and consideration is given to the liquid assets available to the Company before commitment is
made to future expenditure or investment.
2019 Annual Report
Page 48
2019 Annual Report
Page 49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
21. FINANCIAL RISK MANAGEMENT (Continued)
(c) Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising any return.
Interest Rate Risk
The Group has cash assets which may be susceptible to fluctuations in changes in interest rates. Whilst
the Group requires the cash assets to be sufficiently liquid to cover any planned or unforeseen future
expenditure, which prevents the cash assets being committed to long term fixed interest arrangements,
the Group does mitigate potential interest rate risk by entering into short to medium term fixed interest
investments.
Equity Risk
The Group has no direct exposure to equity risk.
Foreign Exchange Risk
The Group holds a portion of its cash assets in US dollar denominated bank accounts and bank deposits.
The Group is also significantly exposed to foreign exchange risk through transactions and arrangements in
respect of its US based operations.
Other than the above, the Group does not have any direct contact with foreign exchange fluctuations other
than their effect on the general economy.
The Group seeks to mitigate foreign exchange risk by considering capital requirements and foreign
exchange rates when undertaking treasury transactions, such as utilising US dollar denominated term
deposits.
22. FINANCIAL INSTRUMENTS
Credit Risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level
of credit risk, and as such no disclosures are made (refer note 21(a)).
Impairment Losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting
date. No impairment expense or reversal of impairment charge has occurred during the financial year.
Interest Rate Risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Financial liabilities
Variable rate instruments
Financial assets
2019 Annual Report
Page 50
Carrying
amount ($)
2019
Carrying
amount ($)
2018
(36,392)
(44,862)
1,879,883
6,795,421
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
21. FINANCIAL RISK MANAGEMENT (Continued)
22. FINANCIAL INSTRUMENTS (Continued)
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
2019
Variable rate instruments
2018
Variable rate instruments
Profit or loss
1%
increase
1%
decrease
Equity
1%
increase
1%
decrease
18,799
(18,799)
18,799
(18,799)
67,954
(67,954)
67,954
(67,954)
Foreign Exchange Risk
At the reporting date the Australian dollar equivalent of amounts recognised by the Group in US dollars were as follows:
Financial assets
Cash at bank
Deposits at call
Financial liabilities
Trade and other payables
Borrowings
Carrying
amount ($)
2019
Carrying
amount ($)
2018
229,270
-
1,895,194
1,736,572
229,270
3,631,766
(86,749)
(36,392)
(123,141)
(25,359)
(44,862)
(70,401)
Cash Flow Sensitivity Analysis for Foreign Exchange
A change in foreign exchange rates of 5% at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
Profit or loss
Equity
5%
increase
5%
decrease
5%
increase
5%
decrease
2019
Financial assets
-
-
11,464
(11,464)
(36,392)
(44,862)
Financial liabilities
6,157
(6,157)
6,157
(6,157)
1,879,883
6,795,421
2018
Financial assets
-
-
181,588
(181,588)
Financial liabilities
3,520
(3,520)
3,520
(3,520)
2019 Annual Report
Page 50
2019 Annual Report
Page 51
(c) Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising any return.
Interest Rate Risk
The Group has cash assets which may be susceptible to fluctuations in changes in interest rates. Whilst
the Group requires the cash assets to be sufficiently liquid to cover any planned or unforeseen future
expenditure, which prevents the cash assets being committed to long term fixed interest arrangements,
the Group does mitigate potential interest rate risk by entering into short to medium term fixed interest
investments.
Equity Risk
Foreign Exchange Risk
The Group has no direct exposure to equity risk.
The Group holds a portion of its cash assets in US dollar denominated bank accounts and bank deposits.
The Group is also significantly exposed to foreign exchange risk through transactions and arrangements in
respect of its US based operations.
Other than the above, the Group does not have any direct contact with foreign exchange fluctuations other
than their effect on the general economy.
The Group seeks to mitigate foreign exchange risk by considering capital requirements and foreign
exchange rates when undertaking treasury transactions, such as utilising US dollar denominated term
deposits.
22. FINANCIAL INSTRUMENTS
Credit Risk
Impairment Losses
Interest Rate Risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible level
of credit risk, and as such no disclosures are made (refer note 21(a)).
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting
date. No impairment expense or reversal of impairment charge has occurred during the financial year.
At the reporting date the interest profile of the Group’s interest-bearing financial instruments was:
Carrying
amount ($)
2019
Carrying
amount ($)
2018
Fixed rate instruments
Financial liabilities
Variable rate instruments
Financial assets
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
22. FINANCIAL INSTRUMENTS (Continued)
Liquidity Risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements (refer note 21(b)):
Consolidated
Carrying
amount
$
Contractual
cash flows
$
< 6
months
$
6-12
months
$
1-2
years
$
2-5
years
$
> 5
years
$
2019
Trade
payables
Borrowings
and
other
2018
Trade
payables
Borrowings
and
other
Fair Values
224,648
224,648
224,648
-
-
-
36,392
39,316
5,882
5,882
11,765
15,787
261,040
263,964 230,530
5,882
11,765
15,787
54,818
54,818
54,818
-
-
-
44,862
48,378
5,571
5,571
11,142
26,094
99,680
103,196
60,389
5,571
11,142
26,094
-
-
-
-
-
Fair Values Versus Carrying Amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position are as follows:
Cash and cash equivalents
Trade and other payables
Borrowings
Consolidated
2019
Carrying
amount
$
1,879,883
(224,648)
(36,392)
Fair value
$
1,879,883
(224,648)
(36,392)
Consolidated
2018
Carrying
amount
$
Fair value
$
6,795,421
(54,818)
(44,862)
6,795,421
(54,818)
(44,862)
1,618,843
1,618,843
6,695,741
6,695,741
The Group’s policy for recognition of fair values is disclosed at note 1(t).
2019 Annual Report
Page 52
The following are the contractual maturities of financial liabilities, including estimated interest payments and
Eagle Mountain Mining Limited is the ultimate parent entity of the Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
23. CONTROLLED ENTITIES
The following were controlled entities at the end of the financial year and have been included in the consolidated
financial statements:
Name
Country of
Incorporation
Date
acquired/incorporated
Silver Mountain
Mining Pty Ltd
Silver Mountain
Mining LLC
Silver Mountain
Mining Operations Inc
Australia
7 December 2017
United States of
America
United States of
America
7 December 2017
18 January 2018
Percentage
Interest Held
2019
Percentage
Interest Held
2018
100%
100%
100%
100%
100%
100%
Silver Mountain Mining LLC and Silver Mountain Mining Operations Inc are both 100% owned subsidiaries of Silver
Mountain Mining Pty Ltd.
The following amounts are payable by subsidiary companies to the parent company Eagle Mountain Mining
Limited at the reporting date:
Name
Silver Mountain Mining Pty Ltd
Silver Mountain Mining LLC
Silver Mountain Mining Operations Inc
Amount due to
Eagle Mountain Mining Limited
2019
A$
69,727
528,472
7,082,555
2018
A$
69,562
528,472
1,168,897
The loans to subsidiary companies are non-interest bearing and the Directors of Eagle Mountain Mining Limited
do not intend to call for repayment within 12 months.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
22. FINANCIAL INSTRUMENTS (Continued)
Liquidity Risk
excluding the impact of netting agreements (refer note 21(b)):
Consolidated
amount
cash flows
months
months
years
years
years
Carrying
Contractual
< 6
6-12
1-2
2-5
> 5
$
$
$
$
$
$
-
$
-
224,648
224,648
224,648
-
36,392
39,316
5,882
5,882
11,765
15,787
261,040
263,964 230,530
5,882
11,765
15,787
54,818
54,818
54,818
-
-
-
44,862
48,378
5,571
5,571
11,142
26,094
99,680
103,196
60,389
5,571
11,142
26,094
-
-
-
-
-
2019
Trade
payables
Borrowings
and
other
2018
Trade
payables
Borrowings
and
other
Fair Values
Fair Values Versus Carrying Amounts
financial position are as follows:
Cash and cash equivalents
Trade and other payables
Borrowings
Consolidated
2019
Carrying
amount
$
1,879,883
(224,648)
(36,392)
Fair value
$
1,879,883
(224,648)
(36,392)
Consolidated
2018
Carrying
amount
$
Fair value
$
6,795,421
6,795,421
(54,818)
(44,862)
(54,818)
(44,862)
1,618,843
1,618,843
6,695,741
6,695,741
The Group’s policy for recognition of fair values is disclosed at note 1(t).
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
2019 Annual Report
Page 52
2019 Annual Report
Page 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
24. ACQUISITION OF SILVER MOUNTAIN MINING PTY LTD
During the period ended 30 June 2018, the Company acquired a 100% interest in the share capital of Silver
Mountain Mining Pty Ltd from Silver Mountain Mining Nominee Pty Ltd, an entity associated with a Director Mr
Charles Bass. The acquisition was completed on 7 December 2017.
Silver Mountain Mining Pty Ltd is the holder of the Silver Mountain Project located in Arizona in the United States
of America.
Consideration given by the Company in respect of the acquisition of Silver Mountain Mining Pty Ltd was:
Details
Ordinary fully paid shares (refer note 13)
Options exercisable at 30 cents each and expiring 3
years from the date of issue (refer note 12)
Number
37,500,000
4,500,000
Fair value
A$
3,750,000
144,0001
3,894,000
1The options given in consideration were valued using the Black Scholes valuation model using the following inputs:
Underlying share price at date of valuation
Option exercise price
Period to expiry
Volatility
Risk free rate
$0.10
$0.30
3 years
87.5%
1.95%
The net assets of the Silver Mountain Mining Pty Ltd group acquired by the Company on 7 December 2017 were:
Details
Cash assets
Other receivables and prepaid expenses
Property, plant and equipment
Capitalised exploration acquisition costs
Trade and other payables
Loan
Net asset value A$
36,079
24,075
3,810
969,897
(68,690)
(85,447)
879,724
The difference between the fair value of the consideration given by the Company, and the underlying net asset
value of the Silver Mountain Mining Pty Ltd group as at the date of acquisition amounting to $3,014,276 has been
recognised in the common control reserve (refer note 14c).
2019 Annual Report
Page 54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2019
24. ACQUISITION OF SILVER MOUNTAIN MINING PTY LTD
25. LOSS PER SHARE
During the period ended 30 June 2018, the Company acquired a 100% interest in the share capital of Silver
Mountain Mining Pty Ltd from Silver Mountain Mining Nominee Pty Ltd, an entity associated with a Director Mr
Charles Bass. The acquisition was completed on 7 December 2017.
Silver Mountain Mining Pty Ltd is the holder of the Silver Mountain Project located in Arizona in the United States
Consideration given by the Company in respect of the acquisition of Silver Mountain Mining Pty Ltd was:
of America.
Details
Ordinary fully paid shares (refer note 13)
Options exercisable at 30 cents each and expiring 3
years from the date of issue (refer note 12)
Number
37,500,000
4,500,000
1The options given in consideration were valued using the Black Scholes valuation model using the following inputs:
Underlying share price at date of valuation
Option exercise price
Period to expiry
Volatility
Risk free rate
Details
Cash assets
Other receivables and prepaid expenses
Property, plant and equipment
Capitalised exploration acquisition costs
Trade and other payables
Loan
The net assets of the Silver Mountain Mining Pty Ltd group acquired by the Company on 7 December 2017 were:
Net asset value A$
The difference between the fair value of the consideration given by the Company, and the underlying net asset
value of the Silver Mountain Mining Pty Ltd group as at the date of acquisition amounting to $3,014,276 has been
recognised in the common control reserve (refer note 14c).
Fair value
A$
3,750,000
144,0001
3,894,000
$0.10
$0.30
3 years
87.5%
1.95%
36,079
24,075
3,810
969,897
(68,690)
(85,447)
879,724
Loss used in calculation of loss per share
Weighted average number of shares used in the calculation of loss
per share
Period 6
September
2017 to 30
June 2018
$(1,681,900)
Year Ended
30 June 2019
$(6,890,466)
92,947,012
51,744,967
Basic and diluted loss per share
(7.4 cents)
(3.3 cents)
Options and performance rights to acquire ordinary shares granted by the Company and not exercised at the
reporting date are included in the determination of diluted loss per share, to the extent that they are considered
dilutive.
There are 23,801,315 options and 180,000 performance rights on issue at 30 June 2019 (2018: 16,000,000 options
and 75,000 performance rights) that have not been considered in calculating diluted loss per share as they are
not considered to be dilutive to the reported loss.
26. PARENT ENTITY INFORMATION
Assets
Current assets
Non-current assets1
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Option capital
Reserves
Accumulated losses
Total Equity
Loss for the period1
Other comprehensive income
Total comprehensive loss for the period
Parent
30 June
2019
A$
Parent
30 June
2018
A$
1,567,069
1,950,849
6,250,600
2,102,390
3,517,918
8,352,990
174,388
-
174,388
29,459
-
29,459
3,343,530
8,323,531
13,579,949
4,500
888,625
(11,129,544)
11,952,582
4,500
866,206
(4,499,757)
3,343,530
8,323,531
(6,629,787)
-
(4,499,757)
23,075
(6,629,787)
(4,476,682)
2019 Annual Report
Page 54
2019 Annual Report
Page 55
1The Company has recognised a provision against the investment in subsidiary holdings to the extent that
parent company net assets exceed those of the Group.
DIRECTORS’ DECLARATION
In the opinion of the Directors of Eagle Mountain Mining Limited (“the Company”)
(a)
the financial statements and notes set out on pages 22 to 55 are in accordance with the Corporations
Act 2001, including:
(i)
(ii)
complying with Accounting Standards and the Corporations Regulations 2001 and other
mandatory professional reporting requirements which, as stated in accounting policy note 1
to the financial statements, constitutes explicit and unreserved compliance with International
Financial Reporting Standards (IFRS); and
give a true and fair view of the financial position as at 30 June 2019 and of the performance
for the period ended on that date of the Group.
(b)
(c)
the remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report
comply with Australian Accounting Standard AASB 124 Related Party Disclosures, The Corporations Act
2001 and the Corporations Regulations 2001.
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
(d)
the financial statements comply with International Financial Reporting Standards as set out in note 1.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2019.
This declaration is made in accordance with a resolution of the Directors.
Signed at Perth this 18th day of September 2019.
Charles Bass
Managing Director
2019 Annual Report
Page 56
DIRECTORS’ DECLARATION
In the opinion of the Directors of Eagle Mountain Mining Limited (“the Company”)
(a)
the financial statements and notes set out on pages 22 to 55 are in accordance with the Corporations
Act 2001, including:
(i)
complying with Accounting Standards and the Corporations Regulations 2001 and other
mandatory professional reporting requirements which, as stated in accounting policy note 1
to the financial statements, constitutes explicit and unreserved compliance with International
Financial Reporting Standards (IFRS); and
(ii)
give a true and fair view of the financial position as at 30 June 2019 and of the performance
for the period ended on that date of the Group.
(b)
the remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report
comply with Australian Accounting Standard AASB 124 Related Party Disclosures, The Corporations Act
2001 and the Corporations Regulations 2001.
(c)
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 from the
Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2019.
This declaration is made in accordance with a resolution of the Directors.
Signed at Perth this 18th day of September 2019.
Charles Bass
Managing Director
Eagle Mountain Mining Limited
Independent auditor’s report
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Eagle Mountain Mining Limited (the Company and
its subsidiaries (the Group)), which comprises the consolidated statement of financial
position as at 30 June 2019, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2019 and of
its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
(d)
the financial statements comply with International Financial Reporting Standards as set out in note 1.
2001.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 (a) (i) in the financial report, which indicates that the Group
incurred a net loss of $6,890,466 and a net operating cash outflow of $6,570,277 during
the year ended 30 June 2019. As stated in Note 1 (a) (i), these events or conditions, along
with other matters as set forth in Note 1 (a) (i), indicate that a material uncertainty exists
that may cast significant doubt on the Group’s ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants
(the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of the Company, would be in the same terms if given
to the directors as at the time of this auditor’s report.
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Independent auditor’s report to members (continued)
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current year. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. In addition to
the matter described in the Material Uncertainty Related to Going Concern section, we
have determined the matter described below to be the key audit matters to be
communicated in our report.
CARRYING VALUE OF EXPLORATION COSTS
How our audit addressed it
Our audit procedures included:
— A review of the directors’ assessment
on the viability of the 26 patented
mining claims and 424 unpatented
mining claims, whether there were any
indicators of impairment to those costs
capitalised at the reporting date.
— We assessed the adequacy of the
Group’s disclosures in respect of the
transactions.
Area of focus
Refer also to notes 1(b), 1 (j) and 8
The Group have incurred exploration
costs in relation to exploration activities for
Copper and Gold in the surrounding area
of the Bradshaw Mountains of Yavapai
County of Arizona, USA. Exploration and
evaluation expenditure is generally written
off in the year incurred, except for
acquisition of exploration properties which
is capitalised and carried forward. There is
a risk the capitalisation of exploration and
evaluation expenditure may exceed the
value in use.
An impairment review is only required if an
impairment trigger is identified.
Due to the nature of the resources
industry, indicators of impairment applying
the value in use model could include:
— Viability of the projects
— Changes to exploration plans and
permits
— Loss of rights to tenements
— Changes to reserve estimates
— Costs of extraction and production
2019 Annual Report
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Independent auditor’s report to members (continued)
Other Information
The directors are responsible for the other information. The other information comprises
the information in the Group’s annual report for the year ended 30 June 2019 but does not
include the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the financial report or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of
the Group to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or has no realistic alternative but to
do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with the
Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
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Independent auditor’s report to members (continued)
A further description of our responsibilities for the audit of these financial statements is
located at the Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 20 of the directors’
report for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Eagle Mountain Mining Limited for the year
ended 30 June 2019, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Conley Manifis
Director
Date this day 18th of September 2019
2019 Annual Report
Page 60
ASX ADDITIONAL INFORMATION
Pursuant to the Listing Requirements of the Australian Securities Exchange, the shareholder information
set out below was applicable as at 4 October 2019.
A.
Distribution of Equity Securities
Analysis of numbers of shareholders by size of holding:
Ordinary Fully Paid Shares
Distribution
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
Totals
Number of shareholders
9
41
71
238
109
468
Securities held
3,299
119,484
638,474
11,356,236
91,758,546
103,876,039
There are 27 shareholders holding less than a marketable parcel of ordinary shares.
B.
Substantial Shareholders
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of the issued
capital) is set out below:
Holder of Relevant Interest
Silver Mountain Mining Nominee Pty Ltd
C.
Twenty Largest Shareholders
Issued Ordinary Shares
Number of shares % of shares
43,980,001
42.36%
The names of the twenty largest holders of quoted shares are listed below:
Shareholder Name
Silver Mountain Mining Nominee Pty Ltd
Aralad Management Pty Ltd
HSBC Custody Nominees (Australia) Limited
Philip John Cawood
Dr Salim Cassim
Alitime Nominees Pty Ltd
Tirumi Pty Ltd
Prospect AG Trading Pty Ltd
Zero Nominees Pty Ltd
Flue Holdings Pty Ltd
Geoffrey John Fennell & Carmel Ann Fennell
GAB Superfund Pty Ltd
Kero Investments Pty Ltd
Snowball 3 Pty Ltd
DC & PC Holdings Pty Ltd
Rich Sham Nominees Pty Ltd
Ocean View WA Pty Ltd
Dominic O’Hanlon & Karen O’Hanlon
GAB Superannuation Fund Pty Ltd
Blue Crystal Pty Ltd
Total
Ordinary Shares - Quoted
Number of shares % of Shares
43,980,001
2,900,000
2,216,312
2,000,000
1,620,000
1,362,000
1,313,200
1,250,000
1,250,000
1,200,000
1,195,296
1,000,000
966,000
932,153
916,143
897,000
830,000
760,000
750,000
737,406
68,075,511
42.36%
2.79%
2.13%
1.93%
1.56%
1.31%
1.26%
1.20%
1.20%
1.16%
1.15%
0.96%
0.93%
0.90%
0.88%
0.86%
0.80%
0.73%
0.72%
0.71%
65.54%
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ASX ADDITIONAL INFORMATION
D. Unquoted Securities
Options over Unissued Shares
Number
Options
4,500,0001
4,500,0002
7,000,0003
2,130,0004
26,5995
5,644,7166
1,800,0004
25,601,315
of
Exercise Price
Expiry Date
30 cents
30 cents
20 cents
20 cents
80 cents
20 cents
20 cents
7 December 2020
6 March 2021
15 January 2023
1 February 2023
15 December
2019
31 July 2021
1 July 2023
Number of
Holders
1
17
6
5
1
108
2
1 Options issued to a vendor to the initial public offer
2 Options issued pursuant to the initial public offer prospectus
3 Options issued to directors, officers and employees
4 Options issued to employees pursuant to the Company’s Employee Incentive Plan
5 Options issued pursuant to the exercise of options previously issued under an option entitlement offer
6 Options issued pursuant to a pro rata entitlement offer
Performance Rights
Number of Rights
Expiry Date
25,000
25,000
35,000
35,000
110,000
1 December 2026
1 December 2027
1 July 2027
1 July 2028
Number of
Holders
1
1
2
2
E.
Voting Rights
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a
show of hands whereby each member present in person or by proxy shall have one vote and upon a
poll, each share will have one vote.
There are no voting rights in respect of options over unissued shares.
Restricted Securities
F.
There are ordinary fully paid shares on issue which are subject to escrow agreements, as follows:
• 17,494,226 shares restricted until 16 March 2020.
There are unlisted options on issue that are subject to escrow agreements, as follows:
• 10,534,000 options restricted until 16 March 2020.
G.
Use of Funds
Pursuant to the requirements of ASX Listing Rule 4.10.19 the Company has used all funds raised from
its Initial Public Offer (IPO) in a manner that is consistent with the prospectus and objectives outlined
in the IPO document.
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CORPORATE DIRECTORY
DIRECTORS
Rick Crabb (Non-Executive Chairman)
Charles Bass (Managing Director)
Roger Port (Non-Executive Director)
REGISTERED OFFICE
Ground Floor
22 Stirling Highway
Nedlands WA 6009
ALTERNATE DIRECTOR
AUDITORS
Brett Rowe
(Alternate Director for Charles Bass)
COMPANY SECRETARY
Mark Pitts
REGISTERED OFFICE AND PRINCIPAL PLACE
OF BUSINESS
Ground Floor, 22 Stirling Highway
Nedlands, Western Australia 6009
Email:
Website: eaglemountain.com.au
info@eaglemountain.com.au
William Buck Audit (WA) Pty Ltd
Level 3
15 Labouchere Road
South Perth WA 6151
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
CORPORATE GOVERNANCE
The Company has adopted the 3rd Edition
the ASX Corporate Governance
of
Recommendations. A summary statement
which has been approved by the Board
together with current policies and charters
is available on the Company website.
http://eaglemountain.com.au/corporate-
governance/
ASX CODE
EM2
ABN
34 621 541 204
ASX ADDITIONAL INFORMATION
Schedule of mineral tenure
Eagle Mountain mineral licences as at 4 October 2019 are all presently located in the State of Arizona,
United States of America.
Prospect &
Tenure type
Pacific Horizon
Patented Claims
(26 individual claims)
Claim Reference
(Tenement)
Percentage held
Empire, Copper Ash, Palestine, Buffalo, Little
Pittsburg, Austin, Wellington, Eagle, Number Ten,
Number Eleven, Number Twelve, Number Thirteen,
Noonday, South Noonday, Dudley, Comet,
Alameda, Virginia, Mars, Ashland, Oakland,
Sunnyside, Cuprite, Azurite, Yavapai and Jumbo
Unpatented Claims
(150 individual claims)
SMM#1-14, SMM#17-145, SMM#147, SMM#149,
SMM151, SMM#155, SMM#157, SMM#159,
SMM#161
Exploration Permit
(1 individual permit)
Scarlett
Unpatented Claims
(92 individual claims)
Exploration Permit
(2 individual permits)
Red Mule
Unpatented Claims
(98 individual claims)
Exploration Permit
(2 individual permits)
Rhyolite Target
Unpatented Claims
(70 individual claims)
Exploration Permit
(1 individual permit)
08-117371
SCA#1-15, SCA#57-133
SMMSO#001 - 015; SMMSO#023 - 048;
SMMSO#054; SMMSO#056; SMMSO#058 - 084
SMM#146, SMM#148, SMM#150, SMM#152,
SMM#153, SMM#154, SMM#158, SMM#160,
SMM#162-207, SMM#210-212, SCA#16-56
008-120871, 008-120872
SMMSO#001 - 015; SMMSO#023 - 048;
SMMSO#054; SMMSO#056; SMMSO#058 - 084
08-120101
100%
100%
100%
100%
100%
100%
100%
100%
100%
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