A S X A n n o u n c e m e n t | 2 2 O c t o b e r 2 0 21
2021 Annual Report
Eagle Mountain Mining Limited (ASX:EM2) (“Eagle Mountain”, the “Company”) is pleased to attach
the Annual Report for the year ending 30 June 2021.
For further information please contact:
Tim Mason
BEng, MBA, GAICD
Chief Executive Officer
tim@eaglemountain.com.au
Mark Pitts
B.Bus, FCA, GAICD
Company Secretary
mark@eaglemountain.com.au
This Announcement has been approved for release by Mark Pitts, Company Secretary on behalf of the
Board of Eagle Mountain Mining Limited
EAGLE MOUNTAIN MINING LIMITED
Eagle Mountain is a copper-gold explorer focused on the strategic exploration and development of highly
prospective greenfields and brownfields projects in Arizona, USA.
Arizona is at the heart of America’s mining industry and home to some of the world’s largest copper
discoveries such as Bagdad, Miami and Resolution, one of the largest undeveloped copper deposits in
the world.
Follow the Company developments through our website and social media channels
Website https://eaglemountain.com.au/
Twitter
https://twitter.com/eagle_mining
LinkedIn https://www.linkedin.com/company/eagle-mountain-mining-ltd/
2 0 2 1
Annual
Report
CORPORATE DIRECTORY
DIRECTORS
Rick Crabb (Non-Executive Chairman)
AUDITORS
William Buck Audit (WA) Pty Ltd
Charles Bass (Managing Director)
Level 3
Roger Port (Non-Executive Director)
15 Labouchere Road
South Perth WA 6151
ALTERNATE DIRECTOR
Brett Rowe
(Alternate Director for Charles Bass)
EXECUTIVE
Tim Mason (Chief Executive Officer)
COMPANY SECRETARY
Mark Pitts
REGISTERED OFFICE AND
PRINCIPAL PLACE OF BUSINESS
Ground Floor, 22 Stirling Highway
Nedlands, Western Australia 6009
Email: info@eaglemountain.com.au
Website: eaglemountain.com.au
REGISTERED OFFICE
Ground Floor
22 Stirling Highway
Nedlands WA 6009
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
CORPORATE GOVERNANCE
A summary statement reporting against the
4th Edition of the ASX Corporate Governance
Recommendations which has been approved
by the Board together with current policies and
charters is available on the Company website.
http://eaglemountain.com.au/about/#corporate
ASX CODE
EM2
ABN
34 621 541 204
Copper for a Low Emission Future
CONTENTS
Chairman’s Letter
Managing Director’s Letter
CEO Letter
Vision
FY2021 Highlights
Review of Operations
ASX Additional information
Financial 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
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EAGLE MOUNTAIN MINING | 2021 Annual Report
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EAGLE MOUNTAIN MINING | 2021 Annual Report Chairman’s
Letter
Dear Shareholders,
It is with pleasure that I present Eagle Mountain
Mining Limited’s fourth Annual Report. Following
the purchase in late 2019 of the Oracle Ridge copper
project in Arizona, the Company has taken a number of
important steps to enhance the value of this asset.
Our belief that the Oracle Ridge Project was a quality
acquisition due to its location, existing high-grade copper
resource and multiple exploration targets, has in my view,
been proven correct as a result of the excellent work
undertaken by the Eagle Mountain Mining team based in
Perth and Tucson.
In August 2020, major US based international drill company,
Boart Longyear was appointed to undertake the extensive
drilling programme planned for Oracle Ridge, beginning
with one rig. As new prospective targets were identified, two
additional rigs were brought into operation.
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EAGLE MOUNTAIN MINING | 2021 Annual Report
EAGLE MOUNTAIN MINING | 2021 Annual Report In December 2020, the Company announced a JORC
(2012) Mineral Resource Estimate at Oracle Ridge
of 12.2Mt at 1.51% Cu, 16.3g/t Ag and 0.19g/t Au
for 184kt Cu, 6.4Moz Ag and 73koz of Au (Indicated
and Inferred at 1.0% Cu cut-off). It was noted that
scope existed for a larger resource dependant on
cut-off grade and commodity prices. Moreover,
drill results from areas outside the JORC Resource
area indicated significant potential to expand the
resource footprint.
In February 2021, the Company acquired the
remaining 20% interest in the Oracle Ridge
Project held by Vincere Resource Holdings Inc.
This added some 81 million pounds of copper to
Eagle Mountain’s attributable copper in the JORC
Resources.
As explained in last year’s Annual Report, our goal is
to further build on the existing high-grade mineral
resource to support an attractive mine life while
maximising the production rates necessary to
minimise mining unit costs. To this end, an extensive
amount of drilling has been undertaken over the
past year, to build on the understanding of the
complex geological structures not only at Oracle
Ridge proper but also the surrounding ground.
So encouraging has been the results of this work,
that the Company staked new claims to more than
double the landholding.
Needless to say, it has been a very busy period for
the Eagle Mountain team, led by our Managing
Director Charles Bass and CEO Tim Mason in Perth
and supported by Manuel Ramos in Tucson as CEO
of US Operations. The team have safely executed
this work to a high standard during challenging
times, not only due to COVID 19 restrictions but also
some adverse weather conditions.
On behalf of the Directors, I would like to thank the
Eagle Mountain team in Perth and Arizona for their
work on both the Oracle Ridge and Silver Mountain
Projects. My thanks also to my fellow Director, Roger
Port, for his diligence and expertise on financial
and strategic issues and to Company Secretary,
Mark Pitts, for his corporate and governance
support during an active period of acquisition and
fundraising.
Next year again promises to be very active and
exciting for the Company and I thank shareholders
for their ongoing support.
Yours faithfully
Rick Crabb
Chairman
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EAGLE MOUNTAIN MINING | 2021 Annual Report Managing
Director’s
Letter
Dear Fellow Shareholders,
I am extremely proud of our extraordinarily
professional staff, consultants and contractors,
both in Perth and Arizona. In the face of fires, floods,
snowstorms and lighting storms, they continue to
unlock the true value at the Oracle Ridge copper mine
and its surrounds.
I am extremely excited by the potential that I see being
unlocked in the larger Oracle Ridge area. This potential was
a key motivation for me to strike an extremely beneficial
agreement with Vincere Holdings in 2019 for an 80% interest
in the project. Even though we have not yet unlocked the
true secrets of what lies below, we were encouraged to strike
a deal this year with Vincere for their remaining 20% interest
for the issue of 10 million shares of EM2. Not only was it a
relatively low cost acquisition for their share of the contained
copper, silver and gold, but all future discoveries are 100% to
the benefit of Eagle Mountain shareholders.
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EAGLE MOUNTAIN MINING | 2021 Annual Report
EAGLE MOUNTAIN MINING | 2021 Annual Report You might ask why I feel so optimistic by what I see.
In the early 1980s, I spent about a year in Tucson
working on the geology and resource definition
at the Twin Buttes porphyry copper mine. As
with almost all copper mines in the southwest US
and Mexico that are considered “porphyry”. Twin
Buttes started mining skarn mineralisation before
further mineralisation was discovered. There
were zones of quite good grade and large zones
of lesser grade material that were all cut up by
faulting and intrusions. The same host limestone
rocks that become skarnified occur throughout the
southwest. Many of the mines include various styles
of mineralisation including polymetallic veining,
skarn, breccia hosted and peripheral gold in both
sedimentary and porphyry rocks. The peripheral
gold zones were sometimes mined by original
pioneers and we have such gold occurrences in our
local area.
Most, if not all, of the hallmarks of the various
“porphyry” copper mines across the southwest
US are being recognised at and near Oracle Ridge
copper mine.
will need to establish a potential “centre of gravity”
that accounts for a much larger operation that
could encompass Golden Eagle, OREX and even Red
Hawk. This means that we need to know where to
put an initial milling operation and allow for future
expansion, but also for tailings disposal. These are
nice problems to have, but we need to be patient to
make sure that everything is done to maximise the
fullest value out of our potential and minimise our
risk.
To demonstrate my belief in the potential of the
Oracle Ridge project, I was very happy to convert
my $US1 million of debt to the Company into shares
at a premium to the share price at the time. More
recently, I was pleased to subscribe for another
$1million worth of shares during our September
2021 fund raise.
Yours faithfully
We have several fronts that we are and will be
working on to unlock this potential. Even though we
will be working on areas such as metallurgical and
mining studies at the existing Oracle Ridge mine, we
Charles Bass
Managing Director
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EAGLE MOUNTAIN MINING | 2021 Annual Report CEO Letter
Dear Fellow Shareholders,
I am pleased to report on what has been an
outstanding year of growth and achievement for
Eagle Mountain. I am incredibly proud of what our
team has delivered, despite navigating the various
challenges of COVID-19, the wettest monsoon in
Tucson since 1964, and extensive wildfires around our
Oracle Ridge project over the last year.
Our vision is to become a low-emission producer of copper
which is vital for decarbonisation of the global economy.
Most analysts are anticipating shortfalls in global copper
supply due to increasing demand and limited supply
response; both of which support forecasts for higher
copper prices, especially beyond 2025. This is a great time
to be growing our copper inventory ahead of these strong
predictions.
We see strong potential for significantly more mineralisation
to be discovered at and around the Oracle Ridge mine, due
to its striking geological similarities with other major deposits
in Arizona. Our exploration activities over the last year have
focused on developing models to vector towards prospective
areas, and we now have multiple quality targets including
Golden Eagle, OREX and Red Hawk.
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EAGLE MOUNTAIN MINING | 2021 Annual Report
EAGLE MOUNTAIN MINING | 2021 Annual Report The year has seen a rapid expansion of the team
and activities in Arizona. We undertook extensive
geophysics over the larger Oracle Ridge area
and more than doubled our land holdings over
the last year as we discovered more prospective
areas around the mine. We defined a maiden
JORC Resource, and we now have three diamond
drills turning on a full-time basis with the aim of
expanding these Resources. We have undertaken
full suites of geochemistry on the core which
provide us with a far greater insight to the geology
of the project and vectoring towards prospective
areas.
The acquisition of the remaining 20% of Oracle
Ridge was affectively an additional 81 million
pounds of copper at an acquisition price of US$0.10/
lb. This was an advantageous move that simplifies
operations and administration ahead of further
growth of the Project. We now have a team of 22
employees in Arizona, including Manuel Ramos who
was the former President of ASARCO, one of the
largest copper producers in Arizona. Recently, the
team moved into a larger office and core logging
facility in Tucson to support the expanded activities
and planned growth of the Company.
Earlier in the year, a large wildfire on the Santa
Catalina Mountains threatened many homes and
caused multiple evacuations. Our Oracle Ridge
project was very close to these fires and the local
fire department used our facilities as a base for
helicopter water bombers. Our team worked
tirelessly setting up pumps and waterlines to assist
the fire department in one of the worst wildfires in
the history of the Catalina Mountains. We were lucky
that none of our infrastructure was damaged and I
am proud we could assist the local community at a
time when it was needed most.
Our exploration activities and potential mining
operation will have a strong focus on minimising our
environmental footprint. We will evaluate the use
of electric mining equipment, as opposed to diesel
equipment, to reduce emissions which will further
reduce power requirements for ventilation. Future
mining studies will consider the extensive energy-
saving benefits of gravity as our Resources are
located at an elevated position.
Our exploration activities will continue with a
two-pronged approach. Firstly, we will continue to
hunt for a larger mineralised system, potentially
far larger than what has been defined thus far.
Secondly, we will continue to grow and upgrade
our existing JORC resources to a critical size that
supports a reasonable minelife with strong annual
production rates. Prior to potentially recommencing
mining operations at Oracle Ridge, we believe that
it’s vital to build our mineral resources to de-risk
this decision and ensure the mine and plant are
designed appropriately. To support future mining
studies, we will undertake metallurgical test work
and other studies in parallel with the resource
expansion to enable a faster transition to mining.
Our Silver Mountain Copper Project remains a highly
prospective greenfields project however, following
the exploration success in the last year, we will
continue to focus on further building our resource
base at Oracle Ridge in the coming year. We will look
to recognise further value in Silver Mountain, either
from ongoing geological investigations or bringing in
other groups to assist with exploration activities.
Over the last year, we have built an enthusiastic
team, driven by shared values to find the copper
the world desperately needs to reduce carbon
emissions. I believe we are well positioned for
significant growth with a high-quality team and an
attractive asset base. I would like to thank all our
dedicated board, employees, contractors, business
partners and shareholders for their contributions to
our Company over the last year.
Yours faithfully
Tim Mason
Chief Executive Officer
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EAGLE MOUNTAIN MINING | 2021 Annual Report Vision To become a low-emission
producer of copper which
is vital for decarbonisation
of the global economy
10
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EAGLE MOUNTAIN MINING | 2021 Annual Report
EAGLE MOUNTAIN MINING | 2021 Annual Report FY2021
Highlights
• Maiden JORC Resource estimate calculated at 12.2 Mt at 1.51%
Cu,16.3G/t Ag and 0.19g/t Au based on historical holes only.
•
Strong exploration results with a focus on resource expansion.
• Multiple new exploration targets were defined including OREX,
the Talon and Golden Eagle.
•
Accelerated drilling program successfully commenced, now
with three diamond drills rigs operating on a full-time basis.
• Moved to 100% ownership of Oracle Ridge. This included a
further 81 million pounds of copper at an effective acquisition
price of US$0.10/lb Cu.
•
•
•
Landholding at Oracle Ridge more than doubled.
Supported the local community and fire departments during
wildfires on the Santa Catalina Mountains.
Appointed Manuel Ramos as CEO in the US. Mr Ramos was the
former President of ASARCO, a major copper producer in Arizona.
• Well supported capital raisings which generated $20m in new
capital.
•
Eagle Mountain Mining awarded the Deloitte High Growth Award
for 2021.
EAGLE MOUNTAIN MINING | 2021 Annual Report
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EAGLE MOUNTAIN MINING | 2021 Annual Report Review of
Operations
Portal and core shed at Oracle Ridge
RReevviieeww ooff OOppeerraattiioonnss
Eagle Mountain Mining Limited (“Eagle Mountain”, “Company”) owns 100% of the Oracle Ridge and
Silver Mountain projects in Arizona, a Tier 1 mining jurisdiction1 which hosts many large copper
mines and projects operated by major mining companies including BHP, Rio Tinto, Freeport-
McMoran, Asarco, Hudbay and South 32. The Company’s projects are prospective for both high-
grade copper-silver-gold mineralization and large-scale copper systems. Activities during the year
focused primarily on the Oracle Ridge Project.
Eagle Mountain’s vision is to become a low-emission producer of copper which is vital for
decarbonisation of the global economy. It is planned that future mining operations will have a
strong focus on reducing emissions by using battery or electric powered mining equipment and
sourcing or producing renewable energy where possible. At Oracle Ridge, the project benefits
from its resource being located on a hill so the use of gravity as part of the mine design could
further reduce energy consumption which also reduces emissions. Many countries have renewed
targets for decarbonisation of their economies and copper is a key metal for reducing the use of
fossil fuels. We are driven by our vision to supply the copper for a greener global future, but also
to supply that copper via a low-emission process.
1Arizona is ranked 3th in the world by the Fraser Institute for mining investment attractiveness
https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2019.pdf
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EAGLE MOUNTAIN MINING | 2021 Annual Report
OOrraaccllee RRiiddggee CCooppppeerr PPrroojjeecctt ((110000%%))
Summary
The Oracle Ridge Copper Mine is located northeast of Tucson and 26 kilometres from BHP’s San
Manuel mine, once the largest underground mine in the USA. The site is easily accessible by road
and is supported by a nearby railway and copper smelters in the state. Figure 1 shows the location
of the Oracle Ridge copper project.
Figure 1 - Location of Oracle Ridge Copper Project
The Oracle Ridge Copper Mine is an advanced stage exploration project with a high-grade copper
resource with significant gold and silver. Mineralization at Oracle Ridge is skarn hosted which is
common at many other porphyry deposits in Arizona. The source of the mineralisation at Oracle
Ridge has not been found and it remains a key exploration opportunity.
The project benefits from 18 kilometres of existing underground development in very good
condition along with other supporting infrastructure.
During the year, the Company completed a maiden JORC Mineral Resource Estimate (“MRE”) of
12.2Mt at 1.51% Cu, 16.3g/t Ag and 0.19g/t Au for 184kt Cu, 6.4Moz Ag and 73koz of Au (Indicated
and Inferred at 1.0% Cu cut-off) (refer ASX announcement 14 December 2020). This resource
estimate was based solely on existing historical drillholes and does not incorporate any of the
holes drilled by the Company.
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 11
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EAGLE MOUNTAIN MINING | 2021 Annual Report
During the year, the Company moved to 100% ownership of the Oracle Ridge Copper Mine
(“Oracle Ridge”) after buying out joint venture partner, Vincere Resource Holdings LLC. The
Company acquired the remaining 20% ownership from Vincere Holdings LLC in mid-2021 for the
issue of 10 million shares, which was effectively an additional 81 million pounds of copper at an
acquisition price of US$0.10/lb Cu in JORC Resources. More significantly, it provided 100%
exposure to exploration success and it dissolved the joint venture simplifying project operations
and administration (refer announcement 30 April 2021).
Eagle Mountain identified a range of exploration targets including extensions to the existing
mineralisation and other near-mine prospects before commencing its diamond drill program in
September 2020. Following strong exploration results combined with ongoing delineation of
further exploration targets, the Company brought on an additional drill in May 2021. The
Company now has three diamond drill rigs operating on a full-time basis at the project targeting
extensions to existing resources and other prospective areas.
During the year, the Company identified two separate prospective alteration systems at Golden
Eagle, located two kilometres to the east of the mine area. The geology at Golden Eagle is vastly
different from the copper skarn mineralisation at the Oracle Ridge Mine and includes multiple
prospective signatures of a large hydrothermal system including quartz veining, extensive pyrite
and polymetallic mineralisation. Drilling at Golden Eagle commenced in July 2021.
A further prospective target area was identified as a possible extension to the skarn
mineralisation which supports the MRE. This area is known as Oracle Ridge Extension or “OREX”.
OREX is at the lower contact of the Leatherwood intrusive which can be traced at the surface for
over four kilometres and displays discontinuous skarn alteration and mineralisation over its entire
length. Based on Eagle Mountain’s recent mapping and review of historical drilling information
(refer ASX announcement 12 October 2020), the Company believes that the prospective contact
exists at depth below the Leatherwood for approximately three kilometres in an east-west
direction. The Company is seeking permits from the United States Forest Service for drilling on
parts of the OREX prospect.
An MRE upgrade drilling program commenced during the year, which aims to enable resources
in the “measured” category to be defined. The initial results not only support the existing MRE but
also discovered broad zones of mineralisation in areas that had not been previously assayed.
Further resource upgrade drilling is planned for FY22.
To support the planned growth of the Company, Mr Manuel Ramos was appointed as Chief
Executive Officer of US Operations during the year. Mr Ramos is a veteran of the Arizona copper
industry. He was President and Chief Operating Officer for ASARCO LLC between 2009 and 2018.
Prior to that position, Mr Ramos was VP Metallurgical Operations for over 10 years at ASARCO.
ASARCO, now a subsidiary of Grupo México, is a large integrated copper company that operates
the Mission, Silver Bell and Ray copper mine complexes in Arizona along with the Hayden Copper
Smelter, all within a few hours drive of Eagle Mountain’s Oracle Ridge Project. Prior to ASARCO,
Mr. Ramos held various managerial positions with Grupo México over a 25 year period. Mr Ramos
is a highly regarded Arizona businessman who brings a wealth of experience and resource
industry knowledge, along with broad US networks to this new role. A key objective for Mr Ramos
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EAGLE MOUNTAIN MINING | 2021 Annual Report
is to take the Oracle Ridge Project from exploration through to feasibility and potentially
operations.
To support the accelerated exploration program, additional employees were engaged to support
drilling, core logging and general exploration activities. The Company now has 22 employees in
the US along with supporting contractors and consultants. Late in the financial year, the Company
moved into a new office in the northern end of Tucson which is closer to the site. Core processing
will occur in the new office and will allow for future growth of the Company. The Company has
also purchased a core saw to enable more efficient cutting of core at a reduced cost.
During the year, the Company continued to take a disciplined approach to the management of
COVID-19. Pleasingly there was little disruption to exploration activities. Vaccination rates in the
US are relatively high and restrictions gradually eased over the year allowing business to progress.
With the ongoing COVID-19 pandemic globally, sourcing certain supplies can be slower than usual
impacting some activities.
This year saw extreme weather with both monsoons, flooding and snow. During January, large
snowstorms across the southern USA impacted operations for a few days with over 1 foot of
snow. Drilling activities were ceased when access became too hazardous. Recently, Tucson
experienced the third wettest monsoon in its history. These rains caused damage to roads and
the extensive lightning storms prohibited drilling. Drilling rates picked up after the monsoon
season abated in September 2021.
Early in the financial year, a large wildfire in the Santa Catalina Mountains threatened many homes
and burnt extensive bushland. The fires came close to the Oracle Ridge project though fortunately
no infrastructure was damaged. The operational team in the US helped emergency crews by
setting up water lines for inflatable tanks to allow the helicopter water bombers faster access to
fight the fires. The local fire department was very appreciative of the assistance we provided, and
we were proud to contribute to the community during this time.
Project History
Since mining ceased in 1996, there has been little modern exploration and very minimal drilling
beyond the defined MRE, until Eagle Mountain acquired the project. Table 1 below shows a brief
history of Oracle Ridge.
PPrrooppeerrttyy OOwwnneerr
Phelps Dodge Copper Co.
TTiimmee PPeerriioodd
1873-1937
Daily Arizona Copper Co,
Control Mines
Continental
Union Mines Inc
Copper
Inc,
1937 - 1968
1968 - 1988
Santa Catalina Mining Corp
1988 - 2004
EEvveennttss
• Mining in district begins
• 20 t/day copper smelter constructed
• Exploration and development
• 90 t/day flotation plant constructed
• Operations occur sporadically
•
• Reported US$19 million expenditure on
Large scale analysis of mineralisation
exploration and development
• 750 short ton (“st”)/day mill constructed 1991
• 1000 st/day mill expansion completed 1993
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 13
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Marble Mountain Ventures
LLC
Oracle Mining Corp
2004 - 2010
2010 - 2014
Receiver of Oracle Ridge
Mining LLC (ORM) - Vincere
Resource Holdings LLC
2014 – 2019
Wedgetail Operations LLC
(80% controlled by Eagle
Mountain Mining)
2019-2020
• Roughly 1 million st of ore processed 1991-1995
• Operation closed 1996 and mill removed
• Real estate developers – no mining or exploration
• Gold Hawk, renamed Oracle Mining Corp,
purchased 100% in the Oracle Ridge property
from Marble Mountain Ventures
• 21,700 m validation and expansion drill program
2010-2013
• Air Quality Permit received 2012
• MOU with Pima County on land exchange
• Updated Mineral Resource Estimate NI43-101
2014
• Secured note granted to Vincere
• Vincere’s secured note puts ORM in receivership
• Oracle Ridge mine assets held on care and
maintenance at cost of approx. US$400,000 per
annum
• Wedgetail Operations LLC (“Wedgetail”) undertook
due diligence and negotiations on Oracle Ridge,
which resulted in Wedgetail acquiring an 80%
interest
the project November 2019
(commercial details of the acquisition are outlined
later in the report)
in
Wedgetail Operations LLC
(100% controlled by Eagle
Mountain Mining)
2021
• Wedgetail purchased Vincere’s 20% interest, thus
moving to 100% ownership.
Table 1 - History of the Oracle Ridge Copper Project
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Figure 2 - Plan Map of the Oracle Ridge Claims
Existing Infrastructure
The project has substantial infrastructure at the mine including approximately 18 kilometres of
underground development, access roads, tailings storage facility (closed), underground
ventilation, electrical and water services and surface infrastructure including offices and
maintenance buildings.
The existing infrastructure will reduce capital costs and the time required to re-start potential
production, which will be assessed in any future mining study.
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Underground development at Oracle Ridge
Underground diamond drill at Oracle Ridge
Mineralisation
The MRE at Oracle Ridge occurs within five main skarn zones, hosted by three limestone
formations; Abrigo, Martin and Escabrosa. These same formations also host significant skarn
deposits at other major porphyry mines in Arizona, including the Bisbee district, Mission Complex,
Twin Buttes, the Ray Mine, Superior district and further south into major mines located in Mexico.
Skarn alteration and copper mineralisation is believed to have formed during the Laramide
orogeny, a geologic period when many major world-class copper deposits such as Globe-Miami,
Magma, Resolution, Ray and San Manuel-Kalamazoo were formed throughout the southwestern
United States.
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Skarns are formed by an influx of hot solutions and heat from a nearby intrusive was likely
responsible for altering the mineral composition of the pre-existing limestone prior to depositing
copper, gold and silver minerals. The location of the intrusive at Oracle Ridge is not known and
locating this system remains a key exploration objective for the Company.
A conceptual section of Oracle Ridge is shown in Figure 3 below.
Figure 3 - Cross-Section of Conceptual Skarn Mineralisation at Oracle Ridge
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Core from drilling at the Talon. Mineralisation includes copper mineralisation with disseminated bornite (blue)
and chalcopyrite (yellow) in skarnified sediments in drill hole WT-21-32 (272.1 to 272.5m) (refer ASX
announcement 23 September 2021)
JORC Resource
During the year, a maiden JORC Mineral Resource Estimate (MRE) was completed. The MRE is the
culmination of a substantial amount of work by Eagle Mountain and follows the appointment of
SRK Consulting (Australasia) (SRK), a highly reputable mining consultancy. SRK was engaged to
complete the MRE using a methodology best suited for the mineralisation style at Oracle Ridge.
None of the drill holes completed since the commencement of the resource expansion drilling
program, which commenced in September 2020, have been included in the MRE, providing
significant opportunity for a resource upgrade in the future.
Using a 1.0% Cu cut-off grade, Oracle Ridge contains 12.2Mt at 1.51% Cu, 16.3/t Ag and 0.19g/t
Au for a contained 184kt Cu, 6.4Moz Ag and 73koz of Au as shown in Table 2 and Table 3 below.
Table 2 – Oracle Ridge Copper Project JORC 2012 Mineral Resource Estimate (1.0% Cu cut-off)1
CCllaassss
IInnddiiccaatteedd
IInnffeerrrreedd
TToottaall
TToonnnnaaggee ((MMtt)) CCuu ((%%))
1.52
1.50
11..5511
6.6
5.6
1122..22
Note - Totals may not add due to rounding differences
AAgg ((gg//tt))
15.8
17.0
1166..33
AAuu ((gg//tt))
0.19
0.18
00..1199
CCuu ((tt))
100,000
84,000
118844,,000000
AAgg ((OOzz))
3,348,000
3,033,000
66,,338822,,000000
AAuu ((OOzz))
40,000
33,000
7733,,000000
20
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Table 3 – Oracle Ridge Copper Project cut-off grade comparison (Indicated and Inferred)1
CCooppppeerr CCuutt--ooffff ((%% CCuu)) TToonnnnaaggee ((MMtt)) CCuu ((%%))
AAgg ((gg//tt)) AAuu ((gg//tt))
CCuu ((tt))
AAgg ((OOzz))
AAuu ((OOzz
00..44
00..66
00..88
11..00
11..22
11..44
11..66
44.5
28.4
18.6
1122..22
8.1
5.6
3.7
0.87
1.08
1.30
11..5511
1.72
1.91
2.12
9.7
12.0
14.1
1166..33
18.5
20.6
22.9
0.11
0.13
0.17
00..1199
0.21
0.23
0.25
389,000 13,791,000 158,000
309,000 10,923,000 125,000
242,000
8,453,000
97,000
118844,,000000
66,,338822,,000000
7733,,000000
140,000
4,845,000
55,000
108,000
3,718,000
42,000
79,000
2,729,000
29,000
Note - Totals may not add due to rounding differences
The defined mineralisation at Oracle Ridge includes both higher and lower grade zones with a
steep grade versus tonnage relationship. By reducing the cut-off from 1% to 0.8% Cu, there is a
32% increase in contained copper. Conversely, by increasing the cut-off to 1.4% Cu, the overall
copper grade increases significantly from 1.51% to 1.91% Cu. These variations provide optionality
for future mining studies in terms of the potential production rate and grade.
Skarn Expert
During the year, the Company engaged Dr Larry Meinert, a world-renowned expert on skarns and
associated mineralisation. Dr Meinert’s review included examination of drill core, mapping of
underground formations and assay analysis. Key conclusions from Dr Meinert’s technical report
include:
• The southern extension to the Oracle Ridge mine area is prospective for additional
copper-rich mineralisation
• Potential for additional skarn-hosted mineralisation exists in the central and southern part
of the Oracle Ridge mine area beneath the Leatherwood intrusive and forms a prime
target for deeper drilling
• Aeromagnetics is an effective tool in targeting copper mineralisation at Oracle Ridge
• Detailed logging of minerals across the deposit will allow vectoring towards copper-rich
zones
Dr Meinert will continue collaborating with Eagle Mountain’s technical team to improve the
knowledge of the mineralisation system, evaluate exploration results at near-mine targets such
as OREX and define new prospective areas in the Oracle Ridge region.
Exploration
Since acquiring the project in November 2019, the Company has continued to build its geological
knowledge of the mine and region. This work has included reinterpretation of existing data,
structural reviews, multispectral studies, and geophysical surveys.
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 19
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EAGLE MOUNTAIN MINING | 2021 Annual Report
The exploration strategy at Oracle Ridge is to initially prove the exploration target through drilling.
Concurrently, as skarn mineralisation is sourced from porphyry systems, locating the structural
controls leading to the porphyry system remains a key exploration focus for the Company.
In September 2020, the Company commenced a surface diamond drilling program at Oracle
Ridge. The drilling program was set to target extensions to high-grade portions of the existing
MRE.
During the year, the Company discovered a new zone of mineralisation along the upper
Leatherwood contact. This area known as the Talon coincides with a strong magnetic anomaly.
Assay results in this area included the outstanding high-grade intercept of 12.7m at 3.96% Cu,
49.11g/t Ag and 1.3g/t Au. Included in this zone was 34.4% Cu, 367g/t Ag and 26.2g/t Au over
0.4m in a massive chalcopyrite zone, the highest assay grades received at Oracle Ridge (refer ASX
announcement 31 March 2021).
Massive sulphides had not been previously encountered by Eagle Mountain at Oracle Ridge. This
is an exciting discovery and the technical team and its consultants are assessing the relevance of
this interval and its implications for the prospectivity of this area. Large portions of the
Leatherwood contact remain untested across the Project.
In April 2021, it was decided to accelerate diamond drilling with a second rig mobilised in late May
2021 and a third drill commencing in early July 2021. The decision to accelerate drilling was
supported by the following factors:
• Multiple strong assay and drilling results outside the existing MRE;
• Prospectivity for further mineralisation supported by the report from, Dr Larry Meinert
•
(refer ASX announcement 19 May 2021); and
Increasing pipeline of high-priority targets within a few kilometres of the underground
mine portals.
The aim of the accelerated drilling program is to:
• Expand the existing JORC Resources;
• Establish a Measured Resource category in the next MRE;
• Drill test high-priority targets within a few kilometres of the existing mine; and
• Assist vectoring towards potential deeper sources of mineralisation.
Drilling on the western side of the Talon indicated the potential for stacked lodes with multiple
mineralised zones in hole WT-21-15. Subsequent to the end of the financial year, assay results
for nearby holes WT-21-16 and WT-21-17 (refer ASX announcement 29 July 2021) confirmed the
presence of stacked mineralised lodes in the area. This is extremely encouraging as the stacked
lodes have the potential to add significant tonnes to the existing MRE. Follow-up drilling is planned
to the south of this area.
A total of 40 holes equalling 13,011 metres were drilled during the year.
22
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Principal Geologist Brian Paull holding core from WT-21-06 (from 371.6m) which assayed 34.4% Cu, 367g/t Ag
and 26.2g/t Au (refer ASX announcement 31 March 2021).
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 21
23
EAGLE MOUNTAIN MINING | 2021 Annual Report
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24
EAGLE MOUNTAIN MINING | 2021 Annual Report
To support the accelerated drilling program, extensive roadworks continued during the year to
establish new drilling pads. Some of the zones with very high copper assay grades could not be
followed up previously due to the location of access roads at the time. The roads installed during
the year enabled targeting of these prospective areas.
Resource extension drilling at Oracle Ridge
Mineral Resource Estimate Upgrade Drilling
During the year, two Resource upgrade holes were drilled with a further two holes completed in
early July 2021. The aim of the MRE upgrade program was to verify the quality and reliability of a
small portion of the historical drilling information in the Company’s database. In addition, should
the remaining infill MRE upgrade holes support the grades and thicknesses of previous drilling,
a portion of the existing Indicated MRE is likely to be upgraded to the JORC Measured category
(following an updated MRE). Only ‘Measured’ Mineral Resources may be converted to ‘Proved’
Ore Reserves if they are economically mineable as defined by a Pre-Feasibility or Feasibility
Study. These studies would include the application of various modifying factors and dilution and
have not yet been completed.
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 23
25
EAGLE MOUNTAIN MINING | 2021 Annual Report
The results of the initial MRE upgrade drilling were very pleasing as the results not only
supported the surrounding holes and MRE, but also intercepted thick zones of mineralisation
which had not previously been assayed. Results include:
• 110.1m at 1.06% Cu, 9.64g/t Ag and 0.16g/t Au (WT-21-24), ending in mineralisation,
and included
o 18.4m at 3.12% Cu, 27.83g/t Ag and 0.51g/t Au, within
o 50.5m at 1.73% Cu, 14.31g/t Ag and 0.26g/t Au2
• 106.0m at 1.15% Cu, 11.73g/t Ag and 0.16g/t Au (WT-21-20)3
• 96.1m at 0.98% Cu, 7.84g/t Ag and 0.15g/t Au (WT-21-18)4
The intercept of 18.4m at 3.12% copper and 0.51g/t gold, within a much larger mineralised zone,
is one of the best intercepts recorded at Oracle Ridge. In addition, the overall average gold
grades in the reported infill holes are, better than those in surrounding historical holes.
The results from the resource upgrade drilling are significant because if the presence of these
thick zones is extensive it could materially improve the contained copper in the resource and
provide optionality for future mining methods and production rates.
Core logging at Oracle Ridge
2 Refer ASX announcement 15 September 2021
3 Refer ASX announcement 31 August 2021
4 Refer ASX announcement 29 July 2021
26
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EAGLE MOUNTAIN MINING | 2021 Annual Report
GGoollddeenn EEaaggllee
Golden Eagle is an area centred approximately two kilometres to the east of the Oracle Ridge
mine portals which abuts the OREX project area to the north. Literature and preliminary
exploration work by Eagle Mountain showed potential for Golden Eagle to contain a gold-rich
mineralised system (refer ASX announcement 3 March 2021).
The Company initiated an exploration program over the area including a geological mapping and
sampling program and a geophysical magnetic survey. The objective of the program was to
confirm the extent and endowment of the area and identify favourable targets for drilling.
Two separate prospective alteration systems have been discovered at Golden Eagle, both vastly
different to the copper skarn mineralisation at the Oracle Ridge mine two kilometres to the west.
One of the alteration systems includes silica flooding, quartz stockwork veining and pyritization
along a major fault system; measuring 1 kilometre by 0.3 kilometres and remaining open in three
directions. The other system includes gold samples at surface up to 10.45 g/t Au that sit along a
1.5-kilometre-long magnetic high anomaly.
There are several faults that occur in the area, including the regionally significant Geesaman
Fault which represents a favourable plumbing system for mineralising fluids.
Drilling at Golden Eagle commenced in July 2021 testing both the pyrite silica zone and the
magnetic feature crossing the alteration area in a NW-SE direction. See Figure 5 below.
Outcropping Vuggy quartz vein with pods of massive hematite, jarosite and goethite rock at Golden Eagle
which assayed 1.62 g/t Au and 10.30 g/t Ag. (Refer ASX announcement 23 August 2021)
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 25
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EAGLE MOUNTAIN MINING | 2021 Annual Report
Figure 5 – Plan view of Golden Eagle showing prospective systems (Refer ASX announcement 23 August
2021).
The Golden Eagle Project contains several features which rank it as a high priority exploration
opportunity:
• A favourable structural setting including major features such as the Geesaman Fault
act to hide the magnitude of the alteration system;
• Significant pyritic and silica alteration has been uncovered along the Pidgeon Tank
Fault;
• High-grade gold samples over a 1.5-kilometre-long magnetic trend together with
anomalous bismuth and tungsten; and
• Historical gold mining, including the well documented Sanderson Mine.
28
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EAGLE MOUNTAIN MINING | 2021 Annual Report
OOrraaccllee RRiiddggee EExxtteennssiioonn ““OORREEXX””
Based on encouraging results from an initial field mapping program at OREX in 2020 (refer
ASX announcement 12 October 2020), a detailed mapping project was undertaken. Assays
confirmed extensive occurrences of outcropping skarn-hosted copper-silver-gold
mineralisation along the lower contact of the Leatherwood intrusive and the skarn horizon.
Over 100 grab samples were collected with many returning high-grade mineralisation. The
limestone formations and resulting skarn are very similar to those encountered at the Oracle
Ridge mine.
The results of this latest fieldwork indicate that OREX is an outstanding target to define
additional skarn-hosted copper mineralisation at Oracle Ridge. Alteration and mineralisation
at OREX and at the Oracle Ridge mine display many similarities.
The lower contact of the Leatherwood intrusive at OREX can be traced at the surface for over
four kilometres and displays discontinuous skarn alteration and mineralisation over its entire
length. Based on Eagle Mountain’s recent mapping and review of historical drilling
information (refer ASX announcement 12 October 2020), the Company believes that the
prospective contact exists at depth below the Leatherwood for approximately three
kilometres in an east-west direction (see Figure 6).
The Company is seeking permits from the United States Forest Service for drilling on parts of
the OREX prospect.
Figure 6 - Location of OREX prospect with high-grade samples (refer ASX announcement 16 April 2021)
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 27
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EAGLE MOUNTAIN MINING | 2021 Annual Report
High-grade waste from dump material at OREX target assaying 9.15% Cu, 192 g/t Ag and 0.15 g/t Au. The
sample was collected next to a small adit mined along a copper-bearing shear within the Leatherwood
intrusive (refer ASX announcement 12 October 2020).
SSiillvveerr MMoouunnttaaiinn PPrroojjeecctt –– 110000%% oowwnneedd
Overview
The Silver Mountain copper/gold project (“Silver Mountain”) is located in Arizona to the
northwest of Phoenix. The project area sits on the northwest-southeast Laramide Arc, a
geological feature containing world-class porphyry copper mines such as Bagdad, Miami and
Resolution. It also lies on the southern extension of a northeast-southwest prospective
metallogenic belt that hosts United Verde and Iron King, two historical mines of volcanogenic
massive sulphide affinity. The intersection of these two trends results in a favourable geologic
setting with high complexity and potential for multiple mineralisation styles.
The northern portion of the project area has a history of prospecting and mining of high-
grade copper from the 1890s into the 1920s.
Except for very limited campaigns in the 1960s, 1970s and early 1990’s, there had been no
modern exploration of the Silver Mountain area. Eagle Mountain and its subsidiaries have
30
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 28
EAGLE MOUNTAIN MINING | 2021 Annual Report
been the first companies to undertake modern exploration over the Silver Mountain project
area commencing in 2013.
Eagle Mountain was the first group to combine the fragmented land ownership along the
main copper mining trend. A portion of the tenements are held in patented claims, which
grant royalty-free surface and mineral rights with very low carrying costs.
Silver Mountain encompasses three main prospects known as “Pacific Horizon”, “Scarlett” and
“Red Mule”, each having a unique mineralisation style.
The Company views Silver Mountain as a very prospective project supported by multiple
favourable geological signatures. Further field mapping and geophysical surveys are planned
with the aim of defining the potential source of mineralisation outcropping at the surface.
Figure 7 - Map showing the land tenure and local geology of the Pacific Horizon, Scarlett and Red Mule
prospects
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 29
31
EAGLE MOUNTAIN MINING | 2021 Annual Report
Figure 8 below shows a hypothetical cross section across the Silver Mountain project
illustrating the different types of mineralisation targets and a postulated porphyry source at
depth which could explain the different mineralisation styles observed on the property.
CCOOMMPPEETTEENNTT PPEERRSSOONN SSTTAATTEEMMEENNTTSS
The information in this document that relates to new Exploration Activities is based on
information compiled by Mr Fabio Vergara and Mr Brian Paull who are both Members of The
Australasian Institute of Mining and Metallurgy (MAusIMM) and have sufficient experience
relevant to the activity which they are undertaking to qualify as a Competent Persons as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code 2012). Mr Vergara is the Chief Geologist and
Mr Paull Principal Geologist of Eagle Mountain Mining Limited and consent to the inclusion in
this document of the information in the form and context in which it appears. Mr Vergara and
Mr Paull hold shares and options in Eagle Mountain Mining Limited.
Where the Company references previous exploration results including technical information
from previous ASX announcements and including historic results outlined in the ASX
announcement dated 25 May 2020, JORC Table 1 disclosures are included within them. The
Company confirms that it is not aware of any new information or data that materially affects
the information included in those announcements, and all material assumptions and
technical parameters underpinning the results within those announcements continue to
apply and have not materially changed. In addition, the form and context in which the
Competent Persons findings are presented have not been materially modified from the
original reports.
Where the Company references the JORC Mineral Resource Estimate announced on 14
December 2020, it confirms that it is not aware of any new information or data that materially
affects the information included in that announcement, and all material assumptions and
technical parameters underpinning
the Mineral Resource Estimate within
that
announcement continue to apply and have not materially changed. In addition, the form and
context in which the Competent Persons findings are presented have not been materially
modified from the original reports.
Figure 8 - Conceptual mineralisation system at Silver Mountain Project
32
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E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 31
EAGLE MOUNTAIN MINING | 2021 Annual Report
CCOOMMPPEETTEENNTT PPEERRSSOONN SSTTAATTEEMMEENNTTSS
The information in this document that relates to new Exploration Activities is based on
information compiled by Mr Fabio Vergara and Mr Brian Paull who are both Members of The
Australasian Institute of Mining and Metallurgy (MAusIMM) and have sufficient experience
relevant to the activity which they are undertaking to qualify as a Competent Persons as
defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code 2012). Mr Vergara is the Chief Geologist and
Mr Paull Principal Geologist of Eagle Mountain Mining Limited and consent to the inclusion in
this document of the information in the form and context in which it appears. Mr Vergara and
Mr Paull hold shares and options in Eagle Mountain Mining Limited.
Where the Company references previous exploration results including technical information
from previous ASX announcements and including historic results outlined in the ASX
announcement dated 25 May 2020, JORC Table 1 disclosures are included within them. The
Company confirms that it is not aware of any new information or data that materially affects
the information included in those announcements, and all material assumptions and
technical parameters underpinning the results within those announcements continue to
apply and have not materially changed. In addition, the form and context in which the
Competent Persons findings are presented have not been materially modified from the
original reports.
Where the Company references the JORC Mineral Resource Estimate announced on 14
December 2020, it confirms that it is not aware of any new information or data that materially
affects the information included in that announcement, and all material assumptions and
that
technical parameters underpinning
announcement continue to apply and have not materially changed. In addition, the form and
context in which the Competent Persons findings are presented have not been materially
modified from the original reports.
the Mineral Resource Estimate within
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 31
33
EAGLE MOUNTAIN MINING | 2021 Annual Report
AANNNNUUAALL MMIINNEERRAALL RREESSOOUURRCCEE SSTTAATTEEMMEENNTT AASS AATT 3300 JJUUNNEE 22002211
GGoovveerrnnaannccee aanndd IInntteerrnnaall CCoonnttrroollss
The Company’s Mineral Resource Statement has been compiled in accordance with the
Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(“JORC Code 2012”) and Chapter 5 of the ASX Listing Rules and ASX Guidance Note 31. The
Company has no Ore Reserve estimates.
The Company governs its activities in accordance with industry best-practice. The resource
reports and supporting data were subjected to internal analysis and peer-review before
release.
MMiinneerraall RReessoouurrcceess
During the financial year, the Company undertook a review of its Canadian NI 43-101
compliant mineral resource at its Oracle Ridge Copper Project (“Oracle Ridge”) in Arizona, USA,
with the view to re-defining the mineral resource as JORC Code 2012 compliant.
In late 2020, SRK Consulting (Australasia) was engaged to complete a review of the existing
Mineral Resource Estimate (“MRE”). A substantial amount of work was completed using a
methodology best suited for the mineralisation style at Oracle Ridge, which included:
• Review, verification and interpretation of historical datasets;
•
Integration of historical datasets with information uncovered during the review which
had never been previously digitised (e.g. structures, alteration, mineralogy, missing
surveys);
• Development of a maiden structural model as previous geological models did not
include any structural data or interpretation; and
• Development of a new geological model.
RReevviieeww ooff MMaatteerriiaall CChhaannggeess
On 14 December 2020, the Company announced its maiden JORC Code 2012 compliant MRE.
The MRE for the Oracle Ridge Project comprises 1122..22MMtt aatt 11..5511%% CCuu,, 1166..33gg//tt AAgg aanndd 00..1199gg//tt
AAuu ffoorr 118844kktt CCuu,, 66..44MMoozz AAgg aanndd 7733kkoozz ooff AAuu (Indicated and Inferred at 1.0% Cu cut-off).
TTaabbllee 11 –– OOrraaccllee RRiiddggee CCooppppeerr PPrroojjeecctt JJOORRCC 22001122 MMiinneerraall RReessoouurrccee EEssttiimmaattee ((11..00%% CCuu ccuutt--
ooffff))
CCllaassss
IInnddiiccaatteedd
IInnffeerrrreedd
TToottaall
TToonnnnaaggee ((MMtt)) CCuu ((%%))
1.52
1.50
11..5511
6.6
5.6
1122..22
AAgg ((gg//tt)) AAuu ((gg//tt))
15.8
17.0
1166..33
0.19
0.18
00..1199
CCuu ((tt))
100,000
84,000
118844,,000000
AAgg ((OOzz))
AAuu ((OOzz))
3,348,000 40,000
3,033,000 33,000
66,,338822,,000000 7733,,000000
Note - Totals may not add due to rounding differences
The maiden JORC Code 2012 MRE is broadly in line with the previous NI 43-101 MRE,
providing confidence in the updated estimate. The updated JORC Code 2012 MRE has a
modest 4% increase in total tonnes when compared with the previous NI 43-101 MRE (refer
ASX announcement 29 October 2019).
The Company ensures good governance in relation to resource estimation through the use
of third-party resource consultants and internal review in accordance with industry best
practice. All reported resource estimates were generated by reputable, independent
consulting firms.
All drill hole data is stored in-house within a commercially available purpose designed
database management system and subjected to industry standard validation procedures.
Quality control on resource drill programs has been undertaken to industry standards with
implementation of appropriate drilling type, survey data collection, assay standards, sample
duplicates and repeat analyses.
The geologic model is considered robust with information from over 600 historic surface and
underground diamond drill holes. The resource reports and supporting data were subjected
to internal analysis and peer review before release. The Company is not aware of any
additional information, other than that reported, which would have a material effect on the
estimates as reported.
Due to the nature, stage and size of the Company’s existing operations, the Board believes
there would be no efficiencies gained by establishing a separate mineral reserves and
resources committee responsible for reviewing and monitoring the Company’s processes for
calculating mineral reserves and resources estimates and for ensuring that the appropriate
controls are applied to such calculations.
The Company confirms it is not aware of any new information or data since the MRE was
declared that materially affects the information included in this Mineral Resource Statement.
TTaabbllee 22 –– SSuummmmaarryy ooff eexxiissttiinngg MMiinneerraall RReessoouurrcceess
RReessoouurrccee
MMiinneerraall RReessoouurrccee
OOrrggaanniizzaattiioonn
AASSXX RReeppoorrttiinngg
PPrroojjeecctt
CCoommppeetteenntt PPeerrssoonn
DDaattee
Oracle Ridge
Rodney Brown
SRK Consulting (Australasia) Pty Ltd 14 December 2020
COMPETENT PERSONS STATEMENT
The information in this Annual Mineral Resources Statement is based on, and fairly represents
information and supporting documentation reviewed by Mr Fabio Vergara, who is a member
of The Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient
experience relevant to the activity which he is undertaking to qualify as a Competent Persons
as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code 2012). Mr Vergara is the Chief Geologist of
Eagle Mountain Mining Limited and consents to the inclusion in this document of the
information in the form and context in which it appears. Mr Vergara holds shares and options
in Eagle Mountain Mining Limited.
34
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 32
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 33
EAGLE MOUNTAIN MINING | 2021 Annual Report
GGoovveerrnnaannccee aanndd IInntteerrnnaall CCoonnttrroollss
The Company ensures good governance in relation to resource estimation through the use
of third-party resource consultants and internal review in accordance with industry best
practice. All reported resource estimates were generated by reputable, independent
consulting firms.
All drill hole data is stored in-house within a commercially available purpose designed
database management system and subjected to industry standard validation procedures.
Quality control on resource drill programs has been undertaken to industry standards with
implementation of appropriate drilling type, survey data collection, assay standards, sample
duplicates and repeat analyses.
The geologic model is considered robust with information from over 600 historic surface and
underground diamond drill holes. The resource reports and supporting data were subjected
to internal analysis and peer review before release. The Company is not aware of any
additional information, other than that reported, which would have a material effect on the
estimates as reported.
Due to the nature, stage and size of the Company’s existing operations, the Board believes
there would be no efficiencies gained by establishing a separate mineral reserves and
resources committee responsible for reviewing and monitoring the Company’s processes for
calculating mineral reserves and resources estimates and for ensuring that the appropriate
controls are applied to such calculations.
The Company confirms it is not aware of any new information or data since the MRE was
declared that materially affects the information included in this Mineral Resource Statement.
TTaabbllee 22 –– SSuummmmaarryy ooff eexxiissttiinngg MMiinneerraall RReessoouurrcceess
RReessoouurrccee
PPrroojjeecctt
MMiinneerraall RReessoouurrccee
CCoommppeetteenntt PPeerrssoonn
OOrrggaanniizzaattiioonn
AASSXX RReeppoorrttiinngg
DDaattee
Oracle Ridge
Rodney Brown
SRK Consulting (Australasia) Pty Ltd 14 December 2020
COMPETENT PERSONS STATEMENT
The information in this Annual Mineral Resources Statement is based on, and fairly represents
information and supporting documentation reviewed by Mr Fabio Vergara, who is a member
of The Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient
experience relevant to the activity which he is undertaking to qualify as a Competent Persons
as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code 2012). Mr Vergara is the Chief Geologist of
Eagle Mountain Mining Limited and consents to the inclusion in this document of the
information in the form and context in which it appears. Mr Vergara holds shares and options
in Eagle Mountain Mining Limited.
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 33
35
EAGLE MOUNTAIN MINING | 2021 Annual Report
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
Pursuant to the Listing Requirements of the Australian Securities Exchange, the shareholder
information set out below was applicable as at 13 October 2021.
CC..
SSuubbssttaannttiiaall SShhaarreehhoollddeerrss
AA..
DDiissttrriibbuuttiioonn ooff EEqquuiittyy SSeeccuurriittiieess
Analysis of numbers of shareholders by size of holding:
Ordinary Fully Paid Shares
DDiissttrriibbuuttiioonn
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
More than 100,000
TToottaallss
NNuummbbeerr ooff
sshhaarreehhoollddeerrss
139
460
261
603
163
11,,662266
SSeeccuurriittiieess hheelldd
%% ooff iissssuueedd ccaappiittaall
Entities
85,290
1,388,571
2,134,862
21,359,619
203,095,780
222288,,006644,,112222
0.04%
0.61%
0.94%
9.37%
89.06%
110000%%
DD..
UUnnqquuootteedd SSeeccuurriittiieess
Options over Unissued Shares
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of
the issued capital) is set out below:
HHoollddeerr ooff RReelleevvaanntt IInntteerreesstt
Silver Mountain Mining Nominee Pty Ltd and Associated
64,603,287
28.33%
IIssssuueedd OOrrddiinnaarryy SShhaarreess
NNuummbbeerr ooff sshhaarreess
%% ooff sshhaarreess
Regal Funds Management Pty Ltd (RFM)
11,007,207
6.10%
There are 74 shareholders holding less than a marketable parcel of ordinary shares.
BB..
TTwweennttyy LLaarrggeesstt SShhaarreehhoollddeerrss
The names of the twenty largest holders of quoted shares are listed below:
SShhaarreehhoollddeerr NNaammee
SILVER MOUNTAIN MINING NOMINEE PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CS THIRD NOMINEES PTY LIMITED
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
METECH SUPER PTY LTD
DR SALIM CASSIM
UBS NOMINEES PTY LTD
VINCERE RESOURCES HOLDINGS LLC
MR PHILIP JOHN CAWOOD
ARALAD MANAGEMENT PTY LTD
GUNSYND PLC
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
QUARTZ MOUNTAIN MINING PTY LTD
NATIONAL NOMINEES LIMITED
EQUITY TRUSTEES LIMITED
SNOWBALL 3 PTY LTD
BNP PARIBAS NOMINEES PTY LTD
BFB HOLDINGS PTY LTD
FLUE HOLDINGS PTY LTD
TToottaall
OOrrddiinnaarryy SShhaarreess -- QQuuootteedd
NNuummbbeerr ooff sshhaarreess %% ooff sshhaarreess
57,145,001
25.06
19,294,458
17,978,869
13,145,252
8,414,971
5,714,286
5,506,476
5,130,747
4,950,324
4,615,000
3,737,503
2,500,000
2,471,701
1,744,000
1,648,975
1,500,000
1,500,000
1,400,000
1,301,429
1,138,462
8.46
7.88
5.76
3.69
2.51
2.41
2.25
2.17
2.02
1.64
1.10
1.08
0.76
0.72
0.66
0.66
0.61
0.57
0.50
116600,,883377,,445544
7700..5522%%
FF..
RReessttrriicctteedd SSeeccuurriittiieess
There are no restricted securities on issue.
NNuummbbeerr ooff
EExxeerrcciissee PPrriiccee
EExxppiirryy DDaattee
NNuummbbeerr ooff HHoollddeerrss
OOppttiioonnss
6,500,000
715,000
1,600,000
1,500,000
650,000
1,923,078
1,325,000
1,170,000
2,500,000
2,800,000
6,000,000
2,000,000
2,000,000
2288,,668833,,007788
20 cents
20 cents
20 cents
21.5 cents
20 cents
30 cents
20 cents
20 cents
52 cents
52 cents
55 cents
$1.25
15 January 2023
1 February 2023
1 July 2023
15 January 2023
7 October 2023
22 February 2024
1 July 2022
1 July 2022
1 July 2022
1 July 2024
1 July 2024
7 May 2023
81.25 cents
12 October 2023
6
2
2
1
1
5
4
5
1
8
6
1
1
Performance Rights
NNuummbbeerr ooff RRiigghhttss
EExxppiirryy DDaattee
35,000
3355,,000000
1 July 2028
NNuummbbeerr ooff
HHoollddeerrss
2
EE..
VVoottiinngg RRiigghhttss
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 or performance rights over unissued shares.
36
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 34
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 35
EAGLE MOUNTAIN MINING | 2021 Annual Report
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
CC..
SSuubbssttaannttiiaall SShhaarreehhoollddeerrss
An extract of the Company’s Register of Substantial Shareholders (who hold 5% or more of
the issued capital) is set out below:
HHoollddeerr ooff RReelleevvaanntt IInntteerreesstt
Silver Mountain Mining Nominee Pty Ltd and Associated
Entities
Regal Funds Management Pty Ltd (RFM)
IIssssuueedd OOrrddiinnaarryy SShhaarreess
NNuummbbeerr ooff sshhaarreess
64,603,287
%% ooff sshhaarreess
28.33%
11,007,207
6.10%
DD..
UUnnqquuootteedd SSeeccuurriittiieess
Options over Unissued Shares
NNuummbbeerr ooff
OOppttiioonnss
6,500,000
715,000
1,600,000
1,500,000
650,000
1,923,078
1,325,000
1,170,000
2,500,000
2,800,000
6,000,000
2,000,000
2,000,000
2288,,668833,,007788
EExxeerrcciissee PPrriiccee
EExxppiirryy DDaattee
NNuummbbeerr ooff HHoollddeerrss
20 cents
20 cents
20 cents
21.5 cents
20 cents
30 cents
20 cents
20 cents
52 cents
52 cents
55 cents
$1.25
81.25 cents
15 January 2023
1 February 2023
1 July 2023
15 January 2023
7 October 2023
1 July 2022
1 July 2022
1 July 2022
22 February 2024
1 July 2024
1 July 2024
7 May 2023
12 October 2023
6
2
2
1
1
5
4
5
1
8
6
1
1
Performance Rights
NNuummbbeerr ooff RRiigghhttss
EExxppiirryy DDaattee
35,000
3355,,000000
1 July 2028
NNuummbbeerr ooff
HHoollddeerrss
2
EE..
VVoottiinngg RRiigghhttss
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 or performance rights over unissued shares.
FF..
RReessttrriicctteedd SSeeccuurriittiieess
There are no restricted securities on issue.
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 35
37
EAGLE MOUNTAIN MINING | 2021 Annual Report
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
Schedule of interests in mining tenements
EEaaggllee MMoouunnttaaiinn mmiinneerraall lliicceenncceess aass aatt 1133 OOccttoobbeerr 22002211 aarree aallll pprreesseennttllyy llooccaatteedd iinn
tthhee SSttaattee ooff AArriizzoonnaa,, UUnniitteedd SSttaatteess ooff AAmmeerriiccaa..
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
Claim Reference
(Tenement)
Percentage
held
Prospect &
Tenure type
PPaacciiffiicc HHoorriizzoonn
Patented Claims
(26 individual claims)
SSIILLVVEERR MMOOUUNNTTAAIINN PPRROOJJEECCTT
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)
008-012-0870
SSccaarrlleetttt
Unpatented Claims
(92 individual claims)
Exploration Permit
(2 individual permits)
RReedd MMuullee
Unpatented Claims
(98 individual claims)
Exploration Permit
(2 individual permits)
RRhhyyoolliittee TTaarrggeett
Unpatented Claims
(70 individual claims)
Exploration Permit
(1 individual permit)
SCA#1-15, SCA#57-133
008-120868, 008-120869
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
008-120101
100%
100%
100%
100%
100%
100%
100%
100%
100%
Patented Claims
Tunnel Site)
(60 individual claims)
Parcel 8 (Oversight MS3504)
100%
OORRAACCLLEE RRIIDDGGEE CCOOPPPPEERR PPRROOJJEECCTT
Parcel 1 (Roosevelt, Way-up, Homestake, Lone Pine,
Imperial and Hidden Treasure)
Parcel 2 (Eagle, York, Copper Peak and Golden Peak
No 2)
Parcel 3 (Grand Central Lode)
Parcel 4 (Tunnel Site, Major McKinley, Marble Peak,
Wedge, Giant, Copper Head, Centennial, General R E
Lee and Blizzard)
Parcel 5 (Oversight MS3461)
Parcel 6 ( Daily No3, Daily No5, Sphinx, Roskruge,
Calumet, Edith, Daily Extension, Cave, Wedge No3,
Wedge No2 and Katherine)
Parcel 7 (Copper Princess, Apache Central and Daily
Parcel 9 (Apex, Alabama, Bornite, Contact, Cuprite,
Epidote, Embersite, Garnet, Over the Top, Yellow
Copper, Valley, Apex No2, Keeney and Wilson)
Parcel 10 (Chalcopyrite and Peacock)
Parcel 11 (Daily Extension No2, Daily Extension No3,
Daily Extension No4)
Parcel 12 (H T Fraction)
Parcel 13 (Turkey)
Parcel 22 (Cochise)
Parcel 27 (Holly Terror)
Parcel 28 (Precious Metals)
That portion of Parcels 24 and 25 lying within:
(Apache, Maricopa, Yavapai, Buster, Major, Greenlee)
Unpatented Claims
Jody #1 – 20, Lorelei #1 – 7,
(50 individual claims)
Olesya #1 – 23
Unpatented Claims
WTO 1-24 Lode Claims
Red Hawk
(24 individual claims)
OREX
Unpatented Claims
(93 individual claims)
Golden Eagle
Unpatented Claims
(27 individual claims)
WTO 25-106, 115-124, 142-144 Lode Claims
100%
WTO 106-114, 125-141 Lode Claims
100%
100%
100%
38
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 36
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 37
EAGLE MOUNTAIN MINING | 2021 Annual Report
AADDDDIITTIIOONNAALL AASSXX IINNFFOORRMMAATTIIOONN
Prospect &
Tenure type
Claim Reference
(Tenement)
Percentage
held
Patented Claims
(60 individual claims)
OORRAACCLLEE RRIIDDGGEE CCOOPPPPEERR PPRROOJJEECCTT
Parcel 1 (Roosevelt, Way-up, Homestake, Lone Pine,
Imperial and Hidden Treasure)
Parcel 2 (Eagle, York, Copper Peak and Golden Peak
No 2)
Parcel 3 (Grand Central Lode)
Parcel 4 (Tunnel Site, Major McKinley, Marble Peak,
Wedge, Giant, Copper Head, Centennial, General R E
Lee and Blizzard)
Parcel 5 (Oversight MS3461)
Parcel 6 ( Daily No3, Daily No5, Sphinx, Roskruge,
Calumet, Edith, Daily Extension, Cave, Wedge No3,
Wedge No2 and Katherine)
Parcel 7 (Copper Princess, Apache Central and Daily
Tunnel Site)
Parcel 8 (Oversight MS3504)
Parcel 9 (Apex, Alabama, Bornite, Contact, Cuprite,
Epidote, Embersite, Garnet, Over the Top, Yellow
Copper, Valley, Apex No2, Keeney and Wilson)
Parcel 10 (Chalcopyrite and Peacock)
Parcel 11 (Daily Extension No2, Daily Extension No3,
Daily Extension No4)
Parcel 12 (H T Fraction)
Parcel 13 (Turkey)
Parcel 22 (Cochise)
Parcel 27 (Holly Terror)
Parcel 28 (Precious Metals)
That portion of Parcels 24 and 25 lying within:
(Apache, Maricopa, Yavapai, Buster, Major, Greenlee)
Unpatented Claims
(50 individual claims)
Jody #1 – 20, Lorelei #1 – 7,
Olesya #1 – 23
100%
100%
100%
Red Hawk
Unpatented Claims
(24 individual claims)
OREX
Unpatented Claims
(93 individual claims)
Golden Eagle
Unpatented Claims
(27 individual claims)
WTO 1-24 Lode Claims
WTO 25-106, 115-124, 142-144 Lode Claims
100%
WTO 106-114, 125-141 Lode Claims
100%
E A G L E M O U N T A I N M I N I N G | 2021 Annual Report 37
39
EAGLE MOUNTAIN MINING | 2021 Annual Report
Financial
Report
40
EAGLE MOUNTAIN MINING | 2021 Annual Report
40
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ 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 2021.
DDIIRREECCTTOORRSS
The names and details of the Group’s Directors in office during the year until the date of this report
are as follows. Directors were in office for this entire year unless otherwise stated.
RRiicckk CCrraabbbb - B. Juris (Hons), LLB, MBA, FAICD
((NNoonn--EExxeeccuuttiivvee CChhaaiirrmmaann))
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 Non-executive
Chairman of Ora Gold Limited and a Non-executive Director of WarpForge Limited. He is a former
director of Paladin Energy Limited (February 1994 to October 2019).
CChhaarrlleess BBaassss - B.Sc. Geology, M.Sc. Mining Engineering/Mineral Processing, FAICD, FAusIMM, FAIG
((MMaannaaggiinngg DDiirreeccttoorr.. ))
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 Tucson, 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.
Page 3
41
EAGLE MOUNTAIN MINING | 2021 Annual Report
DIRECTORS’ REPORT
RRooggeerr PPoorrtt – BA, FCA, SF Fin, FAICD
((NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr))
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 MG Kailis Holdings Pty Ltd, the Harry Perkins Institute of Medical Research
and Chair of Council of Guildford Grammar School.
BBrreetttt RRoowwee - BComm, MAcc, GAICD
((AAlltteerrnnaattee DDiirreeccttoorr ffoorr CChhaarrlleess BBaassss))
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.
CCHHIIEEFF EEXXEECCUUTTIIVVEE OOFFFFIICCEERR
TTiimm MMaassoonn – B. Eng (Hons) MBA; GAICD
Mr Mason 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.
Mr Mason holds a Bachelor of Engineering Honours (Geotechnical) from the
Institute of Technology, a Masters of Business
Royal Melbourne
Administration from Murdoch University and is a Graduate Member of the
Australian Institute of Company Directors.
42
Page 4
EAGLE MOUNTAIN MINING | 2021 Annual Report
DIRECTORS’ REPORT
RRooggeerr PPoorrtt – BA, FCA, SF Fin, FAICD
((NNoonn--EExxeeccuuttiivvee DDiirreeccttoorr))
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 MG Kailis Holdings Pty Ltd, the Harry Perkins Institute of Medical Research
and Chair of Council of Guildford Grammar School.
BBrreetttt RRoowwee - BComm, MAcc, GAICD
((AAlltteerrnnaattee DDiirreeccttoorr ffoorr CChhaarrlleess BBaassss))
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.
CCHHIIEEFF EEXXEECCUUTTIIVVEE OOFFFFIICCEERR
TTiimm MMaassoonn – B. Eng (Hons) MBA; GAICD
Mr Mason 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.
Mr Mason holds a Bachelor of Engineering Honours (Geotechnical) from the
Royal Melbourne
Institute of Technology, a Masters of Business
Administration from Murdoch University and is a Graduate Member of the
Australian Institute of Company Directors.
DIRECTORS’ REPORT
CCOOMMPPAANNYY SSEECCRREETTAARRYY
MMaarrkk PPiittttss - B.Bus; FCA; GAICD
((CCoommppaannyy SSeeccrreettaarryy))
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.
DDIIRREECCTTOORRSS’’ IINNTTEERREESSTTSS
As at the date of this report, the Directors’ interests in shares and unlisted options of the Company are
as follows:
DDiirreeccttoorr
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
DDiirreeccttoorrss’’ IInntteerreessttss
iinn OOrrddiinnaarryy SShhaarreess
793,000
62,859,287
559,000
500,000
DDiirreeccttoorrss’’ IInntteerreessttss iinn
UUnnlliisstteedd OOppttiioonnss
3,125,000
4,075,000
3,125,000
2,000,000
OOppttiioonnss vveesstteedd aatt
tthhee rreeppoorrttiinngg ddaattee
3,125,000
4,075,000
3,125,000
2,000,000
The Directors’ interests include Unlisted Options which are vested or exercisable as at the date of
signing this report.
DDIIRREECCTTOORRSS’’ MMEEEETTIINNGGSS
The number of meetings of the Company’s Directors held during the year ended 30 June 2021, and
the number of meetings attended by each Director are as follows:
DDiirreeccttoorr
R Crabb
C Bass
R Port
B Rowe (alternate for C Bass)
BBooaarrdd ooff DDiirreeccttoorrss’’ MMeeeettiinnggss
EElliiggiibbllee ttoo AAtttteenndd
6
6
6
6
AAtttteennddeedd
6
6
6
6
Page 4
Page 5
43
EAGLE MOUNTAIN MINING | 2021 Annual Report
DIRECTORS’ REPORT
PPRRIINNCCIIPPAALL AACCTTIIVVIITTIIEESS
The Company’s principal activities for the year ended 30 June 2021 focussed on exploration activities
at the Oracle Ridge Copper Mine. Field work, mapping, geophysical interpretation, targeted diamond
drilling programs for both resource expansion, infill and geotechnical drilling were conducted during
the year. The Company also engaged in capital raising activities and completed the acquisition of the
non-controlling interest in Wedgetail Operations LLC, the owner of the Oracle Ridge Copper Mine.
RREEVVIIEEWW OOFF OOPPEERRAATTIIOONNSS
Exploration activities
Exploration activities for the financial year have been primarily focussed at the Group’s Oracle Ridge
Copper Mine project in Arizona, United States of America. Drilling contractor Boart Longyear
commenced an initial diamond drilling program in September 2020 and following positive drilling
results and observations of mineralisation in the core, the drilling program was extended. Drilling
continued during the reporting period with the aim of expanding the existing JORC mineral resource.
Corporate activities and acquisitions
During the financial year, the Group completed the acquisition of the remaining 20% non-controlling
interest held in Wedgetail Operations LLC, the owner of the Oracle Ridge Copper Mine, from Vincere
Resource Holdings LLC.
The Group completed three share placements to sophisticated and institutional investors during the
financial year, raising a total of $15.5 million (before costs) through the issue of 59,505,495 shares. The
Group also received approximately $4.3 million (before costs) through the exercise of options and the
issue of 16,953,090 shares.
Results of operations and financial position
The operating loss after income tax of the Group for the year ended 30 June 2021 was $21,070,239
(2020: $4,368,936). Included in the loss for the year are uncapitalised exploration costs of $9,306,222
(2020: $2,717,101) and non-cash items (in respect of depreciation, share-based payments expenses
and fair value losses) amounting to $10,265,364 (2020: $367,623).
At 30 June 2021, cash assets amounted to $9,119,371 (2020: $507,750). During the year ended 30 June
2021, the Company received $19,791,118 before related costs, on the issue of shares and options
(2020: $1,800,001).
SSIIGGNNIIFFIICCAANNTT CCHHAANNGGEESS IINN TTHHEE SSTTAATTEE OOFF AAFFFFAAIIRRSS
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.
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE
CCllaassss ooff SSeeccuurriittyy
3300 JJuunnee 22002211
30 June 2020
Ordinary fully paid shares
Unlisted options over unissued shares
Performance rights
220022,,666699,,663300
2299,,445522,,778800
3355,,000000
115,901,045
26,409,716
245,000
Subsequent to the end of the financial year, the Company issued 568,953 ordinary shares on the
exercise of options.
44
Page 6
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
PPRRIINNCCIIPPAALL AACCTTIIVVIITTIIEESS
RREEVVIIEEWW OOFF OOPPEERRAATTIIOONNSS
Exploration activities
The Company’s principal activities for the year ended 30 June 2021 focussed on exploration activities
at the Oracle Ridge Copper Mine. Field work, mapping, geophysical interpretation, targeted diamond
drilling programs for both resource expansion, infill and geotechnical drilling were conducted during
the year. The Company also engaged in capital raising activities and completed the acquisition of the
non-controlling interest in Wedgetail Operations LLC, the owner of the Oracle Ridge Copper Mine.
Exploration activities for the financial year have been primarily focussed at the Group’s Oracle Ridge
Copper Mine project in Arizona, United States of America. Drilling contractor Boart Longyear
commenced an initial diamond drilling program in September 2020 and following positive drilling
results and observations of mineralisation in the core, the drilling program was extended. Drilling
continued during the reporting period with the aim of expanding the existing JORC mineral resource.
Corporate activities and acquisitions
During the financial year, the Group completed the acquisition of the remaining 20% non-controlling
interest held in Wedgetail Operations LLC, the owner of the Oracle Ridge Copper Mine, from Vincere
Resource Holdings LLC.
The Group completed three share placements to sophisticated and institutional investors during the
financial year, raising a total of $15.5 million (before costs) through the issue of 59,505,495 shares. The
Group also received approximately $4.3 million (before costs) through the exercise of options and the
issue of 16,953,090 shares.
Results of operations and financial position
The operating loss after income tax of the Group for the year ended 30 June 2021 was $21,070,239
(2020: $4,368,936). Included in the loss for the year are uncapitalised exploration costs of $9,306,222
(2020: $2,717,101) and non-cash items (in respect of depreciation, share-based payments expenses
and fair value losses) amounting to $10,265,364 (2020: $367,623).
At 30 June 2021, cash assets amounted to $9,119,371 (2020: $507,750). During the year ended 30 June
2021, the Company received $19,791,118 before related costs, on the issue of shares and options
(2020: $1,800,001).
SSIIGGNNIIFFIICCAANNTT CCHHAANNGGEESS IINN TTHHEE SSTTAATTEE OOFF AAFFFFAAIIRRSS
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.
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE
CCllaassss ooff SSeeccuurriittyy
3300 JJuunnee 22002211
30 June 2020
Ordinary fully paid shares
Unlisted options over unissued shares
Performance rights
220022,,666699,,663300
2299,,445522,,778800
3355,,000000
115,901,045
26,409,716
245,000
Subsequent to the end of the financial year, the Company issued 568,953 ordinary shares on the
exercise of options.
DIRECTORS’ REPORT
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE ((ccoonnttiinnuueedd))
UUnnlliisstteedd OOppttiioonnss oovveerr OOrrddiinnaarryy SShhaarreess
At 30 June 2021, 29,452,780 unissued ordinary shares of the Company were under option as follows:
NNuummbbeerr ooff OOppttiioonnss GGrraanntteedd
6,750,000 1
715,000 2
219,702 3
1,700,000 4
1,500,000 5
650,000 6
1,923,078 7
2,495,000 8
2,500,000 9
2,800,00010
6,000,00011
2,000,00012
200,00013
EExxeerrcciissee PPrriiccee
20 cents
20 cents
20 cents
20 cents
21.5 cents
20 cents
30 cents
20 cents
52 cents
52 cents
55 cents
$1.25
$1.40
EExxppiirryy DDaattee
15 January 2023
1 February 2023
31 July 2021
1 July 2023
15 January 2023
7 October 2023
1 July 2022
1 July 2022
22 February 2024
1 July 2024
1 July 2024
7 May 2025
1 July 2024
1 Options issued to Directors, Alternate Director, employees and Company Secretary.
2 Options issued to employees pursuant to the Company’s employee incentive plan.
3 Options issued pursuant to a pro-rata entitlement offer which closed on 7 June 2019.
4 Options issued to employees pursuant to the Company’s employee incentive plan.
5 Options issued to the Chief Executive Officer.
6 Options issued to employees pursuant to the Company’s employee incentive plan.
7 Options issued to brokers.
8 Options issued to employees, Directors and Quartz Mountain Mining Pty Ltd.
9, 10, 13 Options issued to employees pursuant to the Company’s employee incentive plan.
11 Options issued to Directors.
12 Options issued under a corporate advisory mandate.
During the year, 19,996,154 options were issued; 16,953,090 options were exercised and no options
were cancelled.
Subsequent to 30 June 2021 and the date of this report, 600,000 options have vested; 568,953 options
(exercise price of $0.20) were exercised and 749 options were cancelled without being exercised on
their expiry date of 31 July 2021. No options have been issued since 30 June 2021. At the date of this
report there were 28,883,078 unissued ordinary shares of the Company under option.
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.
Page 6
Page 7
45
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE ((ccoonnttiinnuueedd))
PPeerrffoorrmmaannccee RRiigghhttss oovveerr OOrrddiinnaarryy SShhaarreess
During the year ended 30 June 2021, 60,000 performance rights vested and 210,000 performance
rights were exercised and converted into shares. No performance rights were issued or cancelled
during the reporting period.
Subsequent to 30 June 2021, 35,000 performance rights vested. No performance rights have been
issued, exercised or cancelled between 30 June 2021 and the date of this report.
DDIIVVIIDDEENNDDSS
No dividend has been paid during the year and no dividend is recommended for the current financial
year.
EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO TTHHEE EENNDD OOFF TTHHEE RREEPPOORRTTIINNGG YYEEAARR
In August 2021, Quartz Mountain Mining Pty Ltd as trustee for the Bass Family Trust, an entity
associated with Mr Charles Bass, agreed to accept 1,744,000 shares in the Company, subject to
shareholder approval, in lieu of repayment of the US$1,000,000 loan which was due to be repaid by
31 December 2021. The issue of shares is subject to shareholder approval and the effective issue price
of 78.4 cents represents a premium to the closing price on 25 August 2021 and a 10% premium to the
20 day VWAP of the Company’s shares.
The impact of the COVID-19 pandemic is ongoing. The situation is dependent on measures imposed
by the Australian Government, United States Government and other countries, such as maintaining
social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be
provided. It is not practicable to estimate the potential impact, positive or negative, after the reporting
date.
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.
LLIIKKEELLYY DDEEVVEELLOOPPMMEENNTTSS AANNDD EEXXPPEECCTTEEDD RREESSUULLTTSS OOFF OOPPEERRAATTIIOONNSS
The Group intends to undertake further exploration programs at the Oracle Ridge Copper Mine and
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.
EENNVVIIRROONNMMEENNTTAALL IISSSSUUEESS
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.
46
Page 8
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
EEQQUUIITTYY SSEECCUURRIITTIIEESS OONN IISSSSUUEE ((ccoonnttiinnuueedd))
PPeerrffoorrmmaannccee RRiigghhttss oovveerr OOrrddiinnaarryy SShhaarreess
During the year ended 30 June 2021, 60,000 performance rights vested and 210,000 performance
rights were exercised and converted into shares. No performance rights were issued or cancelled
during the reporting period.
Subsequent to 30 June 2021, 35,000 performance rights vested. No performance rights have been
issued, exercised or cancelled between 30 June 2021 and the date of this report.
DDIIVVIIDDEENNDDSS
year.
No dividend has been paid during the year and no dividend is recommended for the current financial
EEVVEENNTTSS SSUUBBSSEEQQUUEENNTT TTOO TTHHEE EENNDD OOFF TTHHEE RREEPPOORRTTIINNGG YYEEAARR
In August 2021, Quartz Mountain Mining Pty Ltd as trustee for the Bass Family Trust, an entity
associated with Mr Charles Bass, agreed to accept 1,744,000 shares in the Company, subject to
shareholder approval, in lieu of repayment of the US$1,000,000 loan which was due to be repaid by
31 December 2021. The issue of shares is subject to shareholder approval and the effective issue price
of 78.4 cents represents a premium to the closing price on 25 August 2021 and a 10% premium to the
20 day VWAP of the Company’s shares.
The impact of the COVID-19 pandemic is ongoing. The situation is dependent on measures imposed
by the Australian Government, United States Government and other countries, such as maintaining
social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be
provided. It is not practicable to estimate the potential impact, positive or negative, after the reporting
date.
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.
LLIIKKEELLYY DDEEVVEELLOOPPMMEENNTTSS AANNDD EEXXPPEECCTTEEDD RREESSUULLTTSS OOFF OOPPEERRAATTIIOONNSS
The Group intends to undertake further exploration programs at the Oracle Ridge Copper Mine and
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.
EENNVVIIRROONNMMEENNTTAALL IISSSSUUEESS
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.
DIRECTORS’ REPORT
EENNVVIIRROONNMMEENNTTAALL IISSSSUUEESS ((ccoonnttiinnuueedd))
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.
IINNDDEEMMNNIIFFIICCAATTIIOONN AANNDD IINNSSUURRAANNCCEE OOFF DDIIRREECCTTOORRSS AANNDD OOFFFFIICCEERRSS AANNDD AAUUDDIITTOORRSS
During the year ended 30 June 2021, 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.
PPRROOCCEEEEDDIINNGGSS OONN BBEEHHAALLFF OOFF TTHHEE GGRROOUUPP
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.
NNOONN--AAUUDDIITT SSEERRVVIICCEESS
The following non-audit services were provided by William Buck Advisors (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 Advisors (WA) Pty Ltd received or is due to receive the following amounts for the provision
of non-audit services:
Taxation services for Silver Mountain Mining
Pty Ltd
Taxation services for Eagle Mountain Mining
Limited
3300 JJuunnee 22002211
30 June 2020
-
$2,460
$1,660
$3,960
Page 8
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47
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD))
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 are disclosed annually in the Remuneration Report.
RReemmuunneerraattiioonn CCoommmmiitttteeee
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.
2.
Setting remuneration packages for Executive Directors, Non-Executive Directors and other Key
Management Personnel; and
Implementing employee incentive and equity based plans and making awards pursuant to those
plans.
NNoonn--EExxeeccuuttiivvee RReemmuunneerraattiioonn
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
4.
entitlements; and
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 is currently set at $300,000 per annum.
48
Page 10
EAGLE MOUNTAIN MINING | 2021 Annual Report 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 are disclosed annually in the Remuneration Report.
RReemmuunneerraattiioonn CCoommmmiitttteeee
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.
Implementing employee incentive and equity based plans and making awards pursuant to those
Management Personnel; and
plans.
NNoonn--EExxeeccuuttiivvee RReemmuunneerraattiioonn
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.
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 is currently set at $300,000 per annum.
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD))
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
Remuneration paid to Directors and Officers of the Company is set by reference to such payments
EExxeeccuuttiivvee DDiirreeccttoorr aanndd OOtthheerr KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell RReemmuunneerraattiioonn
Executive remuneration consists of base salary, plus other performance incentives to ensure that:
1.
2.
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
A proportion of remuneration is structured in a manner to link reward to corporate and individual
performance.
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.
IInncceennttiivvee PPllaannss
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.
2.
3.
Ensures that incentive plans are designed around appropriate and realistic performance targets
and provide rewards when those targets are achieved;
Reviews and approves existing incentive plans established for employees; and
Approves the administration of the incentive plans, including receiving recommendations for and
the consideration and approval of grants pursuant to such incentive plans.
Non-Executive Remuneration is not linked to the performance of the Company, however, to align
EEnnggaaggeemmeenntt ooff NNoonn--EExxeeccuuttiivvee DDiirreeccttoorrss
Non-Executive Directors conduct their duties under the following terms:
1.
2.
A Non-Executive Director may resign from his/her position and thus terminate their contract on
written notice to the Company; and
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.
For the period from 1 April 2020 to 31 July 2020, Non-Executive Director fees owing to Messrs Crabb
and Port were waived as part of a cost reduction exercise following the outbreak of the COVID-19
pandemic.
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 2021.
Page 10
Page 11
49
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
EEnnggaaggeemmeenntt ooff EExxeeccuuttiivvee DDiirreeccttoorr
The Company has entered into an executive service agreement with Mr Charles Bass in his role as
Managing Director on the following material terms and conditions.
Mr Bass received 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.
For the period from 1 April 2020 to 31 July 2020, Mr Bass waived his salary as part of a cost reduction
exercise following the outbreak of the COVID-19 pandemic.
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 will become a Non-Executive Director
of Eagle Mountain.
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.
EEnnggaaggeemmeenntt ooff CChhiieeff EExxeeccuuttiivvee OOffffiicceerr
The Company has entered into an executive service agreement with Mr Timothy Mason, effective 15
January 2020, in his role as Chief Executive Officer (“CEO”) on the following material terms and
conditions.
Mr Mason receives a base salary inclusive of statutory superannuation of $300,000 per annum.
For the period from 1 April 2020 to 31 July 2020, Mr Mason’s salary was reduced to $210,000 per
annum as part of a cost reduction exercise following the outbreak of the COVID-19 pandemic. His
salary reverted to $300,000 per annum from 1 August 2020 and was increased to $330,000 per annum
from 1 February 2021.
The CEO may terminate the agreement by providing 3 months’ written notice. Eagle Mountain may
terminate the agreement with 3 months’ written notice or the provision of 3 months’ salary in lieu of
notice; or may otherwise terminate the CEO’s employment in accordance with the Constitution or the
Corporations Act.
Upon commencement of his employment, Mr Mason received 1,500,000 unlisted options and 150,000
unlisted performance rights over unissued shares of the Company. An expense of $54,556 (2020:
$59,240) was recognised through the consolidated statement of profit or loss and other
comprehensive income in the current reporting period in respect of the issue of these securities.
50
Page 12
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
SShhoorrtt TTeerrmm IInncceennttiivvee PPaayymmeennttss
The Non-Executive Directors set annual Key Performance Indicators (“KPIs”) for the Executive Director
and the CEO. 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.
SShhaarreehhoollddiinngg QQuuaalliiffiiccaattiioonnss
The Directors are not required to hold any shares in Eagle Mountain under the terms of the Company’s
Constitution.
GGrroouupp PPeerrffoorrmmaannccee
In considering the Company’s performance, the Board provides the following indices in respect of the
current financial year:
22002211
2020
2019
2018
Loss for the year/period
attributable to shareholders
$$((2211,,007700,,223399)) $(3,985,856)
$(6,890,466)
$(1,681,900)
Closing share price at 30 June
$$11..0000
$0.16
$0.125
$0.42
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.
RReemmuunneerraattiioonn DDiisscclloossuurreess
The Key Management Personnel of the Company have been identified as:
Mr Rick Crabb
Mr Charles Bass
Mr Roger Port
Mr Brett Rowe
Mr Tim Mason
Non-Executive Chairman
Managing Director
Non-Executive Director
Alternate Director for Charles Bass
Chief Executive Officer
Page 13
51
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
The details of the remuneration of each Director and member of Key Management Personnel of the
Company is as follows:
YYeeaarr EEnnddeedd 3300
JJuunnee 22002211
BBaassee SSaallaarryy
$$
RRiicckk CCrraabbbb
4411,,885577
CChhaarrlleess BBaassss
4411,,885577
RRooggeerr PPoorrtt
4411,,885577
BBrreetttt RRoowwee
--
TTiimm MMaassoonn 11
228833,,559955
TToottaall
440099,,116666
Year Ended 30
June 2020
Base Salary
$
Rick Crabb
34,247
Charles Bass
34,247
Roger Port
34,247
Brett Rowe
-
Tim Mason 1
108,418
Total
211,159
SShhoorrtt TTeerrmm
PPoosstt EEmmppllooyymmeenntt
SShhoorrtt TTeerrmm
IInncceennttiivvee
SSuuppeerraannnnuuaattiioonn
CCoonnttrriibbuuttiioonnss
OOtthheerr LLoonngg
TTeerrmm
VVaalluuee ooff EEqquuiittyy
BBaasseedd
RReemmuunneerraattiioonn22
$$
$$
TToottaall
$$
VVaalluuee ooff EEqquuiittyy
aass PPrrooppoorrttiioonn
ooff
RReemmuunneerraattiioonn
%%
9977..00%%
9977..00%%
9977..00%%
33,,997766
11,,448844,,001133 11,,552299,,884466
33,,997766
11,,448844,,001133 11,,552299,,884466
33,,997766
11,,448844,,001133 11,,552299,,884466
--
11,,446644,,115500 11,,446644,,115500
110000..00%%
2211,,440055
8855,,333344
339900,,333344
2211..99%%
3333,,333333
66,,000011,,552233 66,,444444,,002222
--
Other Long
Term
Value of Equity
Based
Remuneration2
$
-
-
-
-
Value of Equity
as Proportion
of
Remuneration
%
-
-
-
-
Total
$
37,500
37,500
37,500
-
$
3,253
3,253
3,253
-
9,383
59,240
177,041
33.5%
19,142
59,240
289,541
-
$$
--
--
--
--
--
--
$
-
-
-
-
-
-
Short Term
Post Employment
Short Term
Incentive
Superannuation
Contributions
1 Appointed 15 January 2020.
2 The fair value of options and performance rights is calculated at the date of grant using a Black Scholes
option pricing model and allocated to each reporting period evenly over the period from grant date to
vesting date. The value disclosed in the above table is the portion of the fair value of the securities
recognised in the reporting period. The basis of the fair value is disclosed later in this Remuneration
Report.
52
Page 14
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
DIRECTORS’ REPORT
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
The details of the remuneration of each Director and member of Key Management Personnel of the
Company is as follows:
Details of Performance Related Remuneration
SShhoorrtt TTeerrmm
PPoosstt EEmmppllooyymmeenntt
TTeerrmm
OOtthheerr LLoonngg
YYeeaarr EEnnddeedd 3300
JJuunnee 22002211
SShhoorrtt TTeerrmm
SSuuppeerraannnnuuaattiioonn
BBaasseedd
VVaalluuee ooff EEqquuiittyy
BBaassee SSaallaarryy
IInncceennttiivvee
CCoonnttrriibbuuttiioonnss
RReemmuunneerraattiioonn22
TToottaall
RReemmuunneerraattiioonn
RRiicckk CCrraabbbb
4411,,885577
33,,997766
11,,448844,,001133 11,,552299,,884466
CChhaarrlleess BBaassss
4411,,885577
33,,997766
11,,448844,,001133 11,,552299,,884466
RRooggeerr PPoorrtt
4411,,885577
33,,997766
11,,448844,,001133 11,,552299,,884466
$$
$$
$$
VVaalluuee ooff EEqquuiittyy
aass PPrrooppoorrttiioonn
ooff
%%
9977..00%%
9977..00%%
9977..00%%
BBrreetttt RRoowwee
--
11,,446644,,115500 11,,446644,,115500
110000..00%%
TTiimm MMaassoonn 11
228833,,559955
2211,,440055
8855,,333344
339900,,333344
2211..99%%
TToottaall
440099,,116666
3333,,333333
66,,000011,,552233 66,,444444,,002222
--
Short Term
Post Employment
Term
Other Long
Year Ended 30
June 2020
Short Term
Superannuation
Based
Value of Equity
Value of Equity
as Proportion
Base Salary
Incentive
Contributions
Remuneration2
Total
Remuneration
Rick Crabb
34,247
Charles Bass
34,247
Roger Port
34,247
Brett Rowe
$
3,253
3,253
3,253
-
$
-
-
-
-
37,500
37,500
37,500
$
-
$$
--
$
-
$$
--
--
--
--
--
--
$
-
-
-
-
-
-
of
%
-
-
-
-
-
1 Appointed 15 January 2020.
2 The fair value of options and performance rights is calculated at the date of grant using a Black Scholes
option pricing model and allocated to each reporting period evenly over the period from grant date to
vesting date. The value disclosed in the above table is the portion of the fair value of the securities
recognised in the reporting period. The basis of the fair value is disclosed later in this Remuneration
Report.
During the year ended 30 June 2021, no Short Term Incentive payments were paid to the Directors or
Key Management Personnel.
Equity Based Remuneration
During the year ended 30 June 2021, the Directors and Key Management Personnel were granted the
following options as remuneration.
NNaammee
Rick Crabb
Charles Bass
Roger Port
NNuummbbeerr ooff
ooppttiioonnss
ggrraanntteedd GGrraanntt DDaattee
25.09.2020
125,000
30.04.2021
1,500,000
25.09.2020
125,000
30.04.2021
1,500,000
25.09.2020
125,000
30.04.2021
1,500,000
VVeessttiinngg
DDaattee
25.09.2020
30.04.2021
25.09.2020
30.04.2021
25.09.2020
30.04.2021
EExxppiirryy
DDaattee
01.07.2022
01.07.2024
01.07.2022
01.07.2024
01.07.2022
01.07.2024
Brett Rowe
1,500,000 30.04.2021 30.04.2021 01.07.2024
Tim Mason
530,000
500,000
500,000
23.07.2020
22.02.2021
22.02.2021
07.08.2020
01.07.2022
01.07.2023
01.07.2022
01.07.2024
01.07.2024
EExxeerrcciissee
PPrriiccee
$0.20
$0.55
$0.20
$0.55
$0.20
$0.55
$0.55
$0.20
$0.52
$0.52
FFaaiirr vvaalluuee
ppeerr ooppttiioonn
aatt ggrraanntt
$0.16
$0.98
$0.16
$0.98
$0.16
$0.98
$0.98
$0.06
$0.27
$0.27
The fair value of options is determined using the Black Scholes option pricing model. Fair value of
options issued as remuneration is allocated to the relevant vesting period of the securities. Options
and performance rights are provided at no initial cost to the recipients.
During the financial year, 8,269,000 options were exercised by Key Management Personnel.
Exercise of Options Granted as Remuneration
During the year ended 30 June 2021, no ordinary shares were issued in respect of the exercise of
options previously granted as remuneration to Directors or Key Management Personnel of the
Tim Mason 1
108,418
9,383
59,240
177,041
33.5%
Company.
Total
211,159
19,142
59,240
289,541
Page 14
Page 15
53
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
EEqquuiittyy IInnssttrruummeenntt DDiisscclloossuurreess RReellaattiinngg ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
Option Holdings
Key Management Personnel have the following interests in unlisted options over unissued shares of
the Company.
YYeeaarr eennddeedd 3300
JJuunnee 22002211
NNaammee
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
tthhee yyeeaarr
RReecceeiivveedd
dduurriinngg tthhee
yyeeaarr aass
rreemmuunneerraattiioonn
OOtthheerr
cchhaannggeess
dduurriinngg tthhee
yyeeaarr
BBaallaannccee aatt
tthhee eenndd ooff
tthhee yyeeaarr
VVeesstteedd aanndd
eexxeerrcciissaabbllee
aatt tthhee eenndd ooff
tthhee yyeeaarr
Rick Crabb
1,561,000
1,625,000
(61,000)
3,125,000
3,125,000
Charles Bass
9,665,000
1,625,000
(7,215,000)
4,075,000
4,075,000
Roger Port
1,543,000
1,625,000
(43,000)
3,125,000
3,125,000
Brett Rowe
1,000,000
1,500,000
(500,000)
2,000,000
2,000,000
Tim Mason
1,500,000
1,530,000
-
3,030,000
1,030,000
Performance Rights Holdings
Key Management Personnel have the following interests in unlisted performance rights over unissued
shares of the Company.
YYeeaarr eennddeedd 3300
JJuunnee 22002211
NNaammee
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
tthhee yyeeaarr
RReecceeiivveedd
dduurriinngg tthhee
yyeeaarr aass
rreemmuunneerraattiioonn
OOtthheerr
cchhaannggeess
dduurriinngg tthhee
yyeeaarr
BBaallaannccee aatt
tthhee eenndd ooff
tthhee yyeeaarr
VVeesstteedd aanndd
eexxeerrcciissaabbllee
aatt tthhee eenndd ooff
tthhee yyeeaarr
-
-
-
-
-
-
-
-
-
-
-
-
-
(150,000)
-
-
-
-
-
-
-
-
-
-
Tim Mason
150,000
Exercise of Performance rights Granted as Remuneration
During the year ended 30 June 2021, 150,000 ordinary shares were issued in respect of the exercise
of performance rights previously granted as remuneration to Directors or Key Management Personnel
of the Company.
54
Page 16
EAGLE MOUNTAIN MINING | 2021 Annual Report Key Management Personnel have the following interests in unlisted options over unissued shares of
Option Holdings
the Company.
YYeeaarr eennddeedd 3300
JJuunnee 22002211
NNaammee
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
RReecceeiivveedd
dduurriinngg tthhee
OOtthheerr
VVeesstteedd aanndd
cchhaannggeess
BBaallaannccee aatt
eexxeerrcciissaabbllee
yyeeaarr aass
dduurriinngg tthhee
tthhee eenndd ooff
aatt tthhee eenndd ooff
tthhee yyeeaarr
rreemmuunneerraattiioonn
yyeeaarr
tthhee yyeeaarr
tthhee yyeeaarr
Rick Crabb
1,561,000
1,625,000
(61,000)
3,125,000
3,125,000
Charles Bass
9,665,000
1,625,000
(7,215,000)
4,075,000
4,075,000
Roger Port
1,543,000
1,625,000
(43,000)
3,125,000
3,125,000
Brett Rowe
1,000,000
1,500,000
(500,000)
2,000,000
2,000,000
Tim Mason
1,500,000
1,530,000
-
3,030,000
1,030,000
Performance Rights Holdings
shares of the Company.
Key Management Personnel have the following interests in unlisted performance rights over unissued
YYeeaarr eennddeedd 3300
JJuunnee 22002211
NNaammee
Rick Crabb
Charles Bass
Roger Port
Brett Rowe
BBaallaannccee aatt
bbeeggiinnnniinngg ooff
RReecceeiivveedd
dduurriinngg tthhee
OOtthheerr
VVeesstteedd aanndd
cchhaannggeess
BBaallaannccee aatt
eexxeerrcciissaabbllee
yyeeaarr aass
dduurriinngg tthhee
tthhee eenndd ooff
aatt tthhee eenndd ooff
tthhee yyeeaarr
rreemmuunneerraattiioonn
yyeeaarr
tthhee yyeeaarr
tthhee yyeeaarr
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Tim Mason
150,000
(150,000)
Exercise of Performance rights Granted as Remuneration
During the year ended 30 June 2021, 150,000 ordinary shares were issued in respect of the exercise
of performance rights previously granted as remuneration to Directors or Key Management Personnel
of the Company.
DIRECTORS’ REPORT
DIRECTORS’ REPORT
EEqquuiittyy IInnssttrruummeenntt DDiisscclloossuurreess RReellaattiinngg ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
RREEMMUUNNEERRAATTIIOONN RREEPPOORRTT ((AAUUDDIITTEEDD)) ((ccoonnttiinnuueedd))
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.
YYeeaarr eennddeedd 3300
JJuunnee 22002211
NNaammee
Rick Crabb
BBaallaannccee aatt
bbeeggiinnnniinngg ooff tthhee
yyeeaarr
RReecceeiivveedd dduurriinngg
tthhee yyeeaarr aass
rreemmuunneerraattiioonn
732,000
Charles Bass
48,980,001
Roger Port
Brett Rowe
Tim Mason
516,000
500,000
-
OOtthheerr cchhaannggeess
dduurriinngg tthhee yyeeaarr
BBaallaannccee aatt tthhee
eenndd ooff tthhee yyeeaarr
61,000
793,000
13,879,286
62,859,287
43,000
-
150,000
559,000
500,000
150,000
-
-
-
-
-
LLooaannss mmaaddee ttoo KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
No loans were made to Key Management Personnel including personally related entities during the
financial year.
LLooaannss rreecceeiivveedd ffrroomm KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
During the prior year, the Company entered into an unsecured loan agreement with a director related
entity, Quartz Mountain Mining Pty Ltd (“Quartz Mountain”) as trustee for the Bass Family Trust. The
principal of US$1,000,000 attracts interest at 2% per annum with the first three months being interest
free. The loan’s initial maturity date was subsequently deferred to 31 December 2021. During the
reporting period, shareholders approved the issue to Quartz Mountain of 950,000 options, exercisable
at 20 cents each on or before 1 July 2022, as satisfaction of interest owing to 31 December 2021.
Interest expense of US$20,372 (A$28,640) was recognised during the reporting period.
OOtthheerr ttrraannssaaccttiioonnss wwiitthh KKeeyy MMaannaaggeemmeenntt PPeerrssoonnnneell
Transactions between related parties are on commercial terms and conditions, no more favourable
than those available to other parties unless otherwise stated.
The Company has entered into a lease agreement with Elk Mountain Mining Limited, an entity
associated with Mr Charles Bass, for the lease of the Company’s administration offices in Perth,
Western Australia. Total lease repayments of $87,387 (2020: $85,847) were paid during the year,
including interest of $19,064 (2020: $35,402) and lease principal repayments of $68,323 (2020:
$50,445).
Other than the above, there were no transactions with Key Management Personnel.
EEnndd ooff RReemmuunneerraattiioonn RReeppoorrtt
Page 16
Page 17
55
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
AAUUDDIITTOORR’’SS IINNDDEEPPEENNDDEENNCCEE DDEECCLLAARRAATTIIOONN
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 2021.
This report has been made in accordance with a resolution of the Board of Directors.
RRiicckk CCrraabbbb
CChhaaiirrmmaann
Dated at Perth this 20th day of September 2021
56
Page 18
EAGLE MOUNTAIN MINING | 2021 Annual Report DIRECTORS’ REPORT
AAUUDDIITTOORR’’SS IINNDDEEPPEENNDDEENNCCEE DDEECCLLAARRAATTIIOONN
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 2021.
This report has been made in accordance with a resolution of the Board of Directors.
RRiicckk CCrraabbbb
CChhaaiirrmmaann
Dated at Perth this 20th day of September 2021
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 2021
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
audit.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Conley Manifis
Director
Dated this 20th day of September 2021
Page 18
57
EAGLE MOUNTAIN MINING | 2021 Annual Report CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the Year Ended 30 June 2021
YYeeaarr eennddeedd 3300
JJuunnee 22002211
AA$$
YYeeaarr eennddeedd 3300
JJuunnee 22002200
AA$$
Notes
Other income
Interest income
Forgiveness of loan – Paycheck Protection Program
13
Administration and other costs
Employee expenses – non-exploration
Equity based payments
Finance costs
Depreciation expense
Exploration and evaluation costs
Net change in fair value of convertible notes
Gain on foreign currency exchange
LLoossss bbeeffoorree iinnccoommee ttaaxx
Income tax expense
4
9, 10
4
5
4455,,223311
774466
114477,,992211
((888822,,669955))
((666611,,114455))
((77,,554444,,006699))
((339944,,773366))
((444444,,222200))
((99,,330066,,222222))
((22,,227777,,007755))
224466,,002255
50,000
867
-
(779,231)
(310,957)
(248,723)
(247,281)
(387,772)
(2,717,101)
268,872
2,390
((2211,,007700,,223399))
(4,368,936)
--
-
LLoossss aafftteerr iinnccoommee ttaaxx ffrroomm ccoonnttiinnuuiinngg ooppeerraattiioonnss
((2211,,007700,,223399))
(4,368,936)
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee nneett ooff iinnccoommee ttaaxx
Other comprehensive income that may be re-
classified to profit or loss in subsequent years net of
income tax
Unrealised (loss)/gain on foreign currency exchange
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr
16a
--
((110000,,441188))
-
103,077
((2211,,117700,,665577))
(4,265,859)
LLoossss aattttrriibbuuttaabbllee ttoo::
Owners of the parent
Non-controlling interests
TToottaall ccoommpprreehheennssiivvee lloossss aattttrriibbuuttaabbllee ttoo::
Owners of the parent
Non-controlling interests
((1199,,119999,,227777))
((11,,887700,,996622))
((2211,,007700,,223399))
(3,985,856)
(383,080)
(4,368,936)
((1199,,331177,,996688))
((11,,885522,,668899))
((2211,,117700,,665577))
(3,892,026)
(373,833)
(4,265,859)
BBaassiicc aanndd ddiilluutteedd lloossss ppeerr sshhaarree
28
cents
((1122..11))
cents
(3.7)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
58
Page 20
EAGLE MOUNTAIN MINING | 2021 Annual Report CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
3300 JJuunnee 22002211
3300 JJuunnee 22002200
NNoottee
AA$$
AA$$
CCuurrrreenntt AAsssseettss
Cash and cash equivalents
Trade and other receivables
Total Current Assets
NNoonn--CCuurrrreenntt AAsssseettss
Exploration and evaluation expenditure
Property, plant and equipment
Right-of-use assets
Bonds and security deposits
Total Non-Current Assets
TTOOTTAALL AASSSSEETTSS
CCuurrrreenntt LLiiaabbiilliittiieess
Trade and other payables
Employee leave liabilities
Lease liabilities
Borrowings
Total Current Liabilities
NNoonn--CCuurrrreenntt LLiiaabbiilliittiieess
Lease liabilities
Employee leave liabilities
Borrowings
Total Non-Current Liabilities
TTOOTTAALL LLIIAABBIILLIITTIIEESS
NNEETT AASSSSEETTSS
EEqquuiittyy
Issued capital
Option capital
Reserves
Accumulated losses
Equity attributable to owners of the parent
Non-controlling interest
TTOOTTAALL EEQQUUIITTYY
6
7
8
9
10
11
12
13
12
13
15
16
99,,111199,,337711
330066,,113311
99,,442255,,550022
99,,447744,,227788
997777,,995511
553311,,220022
226600,,445599
1111,,224433,,889900
507,750
138,309
646,059
10,378,496
1,265,634
208,493
132,945
11,985,568
2200,,666699,,339922
12,631,627
11,,007733,,665544
110055,,226688
221111,,112277
11,,334400,,229977
22,,773300,,334466
334400,,778811
99,,770088
1111,,000066,,771133
1111,,335577,,220022
179,444
58,923
111,315
1,636,325
1,986,007
117,895
-
9,290,293
9,408,188
1144,,008877,,554488
11,394,195
66,,558811,,884444
1,237,432
4455,,660011,,559933
44,,550000
55,,552266,,554400
((4444,,555500,,778899))
66,,558811,,884444
--
66,,558811,,884444
15,322,265
4,500
(1,518,029)
(12,381,375)
1,427,361
(189,929)
1,237,432
The above statement of financial position should be read in conjunction with the accompanying notes.
Page 21
59
EAGLE MOUNTAIN MINING | 2021 Annual Report ,
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60
EAGLE MOUNTAIN MINING | 2021 Annual Report
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2021
CCaasshh FFlloowwss ffrroomm OOppeerraattiinngg AAccttiivviittiieess
Payments to suppliers and employees
Payments for exploration and evaluation
Payments for interest and other financing costs
Interest received
Government assistance received
YYeeaarr eennddeedd 3300
JJuunnee 22002211
AA$$
YYeeaarr eennddeedd 3300
JJuunnee 22002200
AA$$
Note
((11,,559933,,660066))
((88,,333300,,881155))
((3344,,008899))
773322
5500,,000000
(1,208,540)
(2,674,607)
(51,911)
867
50,000
Net cash used in operating activities
17
((99,,990077,,777788))
(3,884,191)
CCaasshh FFlloowwss ffrroomm IInnvveessttiinngg AAccttiivviittiieess
Payment for acquisition of exploration assets
Payments for purchase of fixed assets
Payments for bonds and deposits
Net cash used in investing activities
CCaasshh FFlloowwss ffrroomm FFiinnaanncciinngg AAccttiivviittiieess
Proceeds from the issue of shares and options
Payments for the issue of shares and options
Proceeds from borrowings
Repayments of borrowings
Repayment of lease liabilities
Net cash generated by financing activities
--
((112222,,660055))
((114444,,770011))
((226677,,330066))
1199,,779911,,111188
((994433,,005544))
114444,,770011
((115544,,992266))
((112299,,001199))
1188,,770088,,882200
(729,667)
(8,644)
-
(738,311)
1,800,001
(72,867)
1,626,798
(11,373)
(100,590)
3,241,969
Net increase/(decrease) in cash held
88,,553333,,773366
(1,380,533)
Cash and cash equivalents at the beginning of the
year
Effect of foreign exchange on cash and cash
equivalents
550077,,775500
1,879,883
7777,,888855
8,400
CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aatt tthhee eenndd ooff tthhee yyeeaarr
6
99,,111199,,337711
507,750
The above statement of cash flows should be read in conjunction with the accompanying notes.
Page 23
61
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
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 2021 were approved and authorised for issue by the Board of
Directors on 20 September 2021.
11..
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS
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.
((aa)) BBaassiiss ooff PPrreeppaarraattiioonn
These general purpose financial statements for the reporting year ended 30 June 2021 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.
((ii)) GGooiinngg CCoonncceerrnn
The Group has incurred a loss of $21,070,239 and a net operating cash outflow of $9,907,778 during the
year ended 30 June 2021. Cash assets at 30 June 2021 were $9,119,371 and current liabilities at that date
were $2,730,346.
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.
During the financial year, the Group successfully raised $15.5 million (before costs) pursuant to three
placements to institutional and sophisticated investors. 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 of the opinion that the use of the going concern basis is appropriate in the
circumstances.
((iiii)) BBaassiiss ooff CCoonnssoolliiddaattiioonn
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.
62
Page 24
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
11..
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((aa)) BBaassiiss ooff PPrreeppaarraattiioonn ((ccoonnttiinnuueedd))
((iiii)) BBaassiiss ooff CCoonnssoolliiddaattiioonn ((ccoonnttiinnuueedd))
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.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to Eagle Mountain.
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.
((iiiiii))
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss AAddoopptteedd iinn tthhee CCuurrrreenntt YYeeaarr
AApppplliiccaattiioonn ooff NNeeww aanndd RReevviisseedd AAccccoouunnttiinngg SSttaannddaarrddss
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.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have
not been early adopted by the Group for the reporting year ended 30 June 2021.
Page 25
63
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((iiiiii))
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss AAddoopptteedd iinn tthhee CCuurrrreenntt YYeeaarr ((ccoonnttiinnuueedd))
The following Accounting Standards and Interpretations are most relevant to the Group:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The Group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement
that affects several Accounting Standards, but it has not had a material impact on the Group's financial
statements.
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss aanndd IInntteerrpprreettaattiioonnss NNoott YYeett MMaannddaattoorryy oorr EEaarrllyy AAddoopptteedd
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
application date for future reporting periods. There are no material new or amended Accounting
Standards which will materially affect the Group.
((bb)) EExxpplloorraattiioonn,, EEvvaalluuaattiioonn aanndd DDeevveellooppmmeenntt EExxppeennddiittuurree
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.
((cc)) TTrraaddee aanndd OOtthheerr RReecceeiivvaabblleess
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.
((dd)) IInntteerreesstt IInnccoommee
Interest income is recognised as it accrues.
64
Page 26
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((iiiiii))
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss AAddoopptteedd iinn tthhee CCuurrrreenntt YYeeaarr ((ccoonnttiinnuueedd))
The following Accounting Standards and Interpretations are most relevant to the Group:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The Group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement
that affects several Accounting Standards, but it has not had a material impact on the Group's financial
statements.
NNeeww AAccccoouunnttiinngg SSttaannddaarrddss aanndd IInntteerrpprreettaattiioonnss NNoott YYeett MMaannddaattoorryy oorr EEaarrllyy AAddoopptteedd
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
application date for future reporting periods. There are no material new or amended Accounting
Standards which will materially affect the Group.
((bb)) EExxpplloorraattiioonn,, EEvvaalluuaattiioonn aanndd DDeevveellooppmmeenntt EExxppeennddiittuurree
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.
((cc)) TTrraaddee aanndd OOtthheerr RReecceeiivvaabblleess
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.
((dd)) IInntteerreesstt IInnccoommee
Interest income is recognised as it accrues.
((ee)) FFoorreeiiggnn CCuurrrreennccyy TTrraannssaaccttiioonnss
The financial statements are presented in Australian dollars, which is the functional currency of the Group.
Foreign currency transactions
Foreign currency transactions are translated into the functional currency 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.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange
rate at the reporting date. The revenues and expenses of foreign operations are translated into Australian
dollars using the average exchange rates for the period, which approximate the rates at the dates of the
transactions. All resulting foreign exchange differences are recognised in other comprehensive income
through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment
is disposed of.
((ff)) OOppeerraattiinngg SSeeggmmeennttss
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.
((gg)) BBoorrrroowwiinnggss
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.
((hh)) CCoonnvveerrttiibbllee NNoottee –– DDeerriivvaattiivvee LLiiaabbiilliittyy
Derivative financial instruments are stated at fair value. The fair value of the derivative has been valued
using a valuation technique, including inputs that include reference to similar instruments and option
pricing models, which is updated each period. Gains and losses arising from changes in fair value of these
instruments together with settlements in the period are accounted for through the consolidated statement
of profit or loss and other comprehensive income through net finance costs. The convertible note liability
and derivative are removed from the statement of financial position when the obligations specified in the
contract are discharged, cancelled or expired.
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65
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ii)) CCoonnvveerrttiibbllee NNoottee –– DDeebbtt LLiiaabbiilliittyy
The embedded derivative component of a convertible note is recognised initially at fair value and the debt
liability component is calculated as the difference between the financial instrument as a whole and the
value of the derivative liability at inception. Any directly attributable transaction costs are allocated to the
convertible note debt liability and convertible note derivative liability in proportion to their initial carrying
amounts. Subsequent to initial recognition, the debt liability component of the convertible note is
measured at amortised cost using the effective interest method.
((jj)) LLeeaassee LLiiaabbiilliittiieess
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental
borrowing rate. Lease payments comprise fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
((kk)) CCaasshh aanndd CCaasshh EEqquuiivvaalleennttss
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.
((ll)) IImmppaaiirrmmeenntt ooff AAsssseettss
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.
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.
66
Page 28
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ii)) CCoonnvveerrttiibbllee NNoottee –– DDeebbtt LLiiaabbiilliittyy
((mm)) PPrrooppeerrttyy,, PPllaanntt aanndd EEqquuiippmmeenntt
The embedded derivative component of a convertible note is recognised initially at fair value and the debt
liability component is calculated as the difference between the financial instrument as a whole and the
value of the derivative liability at inception. Any directly attributable transaction costs are allocated to the
convertible note debt liability and convertible note derivative liability in proportion to their initial carrying
amounts. Subsequent to initial recognition, the debt liability component of the convertible note is
measured at amortised cost using the effective interest method.
((jj)) LLeeaassee LLiiaabbiilliittiieess
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental
borrowing rate. Lease payments comprise fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
((kk)) CCaasshh aanndd CCaasshh EEqquuiivvaalleennttss
((ll)) IImmppaaiirrmmeenntt ooff AAsssseettss
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.
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.
((nn)) RRiigghhtt--ooff--UUssee AAsssseettss
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership
of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of-
use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
((oo)) GGooooddss aanndd SSeerrvviicceess TTaaxx ((GGSSTT))
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.
Page 28
Page 29
67
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((pp)) TTaaxxaattiioonn
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.
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.
((qq)) TTrraaddee aanndd OOtthheerr PPaayyaabblleess
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.
((rr)) PPrroovviissiioonnss aanndd CCoonnttiinnggeenncciieess
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.
((ss)) EEmmppllooyyeeee bbeenneeffiittss
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.
68
Page 30
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((pp)) TTaaxxaattiioonn
((tt)) SShhaarree BBaasseedd PPaayymmeenntt TTrraannssaaccttiioonnss
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.
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.
The Group recognises the fair value of options and performance rights 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.
((uu)) IIssssuueedd CCaappiittaall
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.
Where temporary differences exist in relation to investments in subsidiaries and associates, deferred tax
((vv)) CCrriittiiccaall AAccccoouunnttiinngg EEssttiimmaatteess aanndd JJuuddggmmeennttss
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.
((qq)) TTrraaddee aanndd OOtthheerr PPaayyaabblleess
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.
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
((ii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg JJuuddggeemmeennttss
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
((rr)) PPrroovviissiioonnss aanndd CCoonnttiinnggeenncciieess
measured.
((ss)) EEmmppllooyyeeee bbeenneeffiittss
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.
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:
AAccqquuiissiittiioonn ooff OOrraaccllee RRiiddggee CCooppppeerr MMiinnee
AASB 3 Business Combinations defines a business as being “an integrated set of activities and assets that
is capable of being conducted and managed for the purposes of providing a return in the form of dividends,
lower costs or other economic benefits directly to investors or other owners, members or participants.” A
business usually consists of inputs, processes and outputs. Inputs and processes are the essential
elements that have to be present in order to be classified as a business. Although a business usually has
outputs, outputs are not required for an integrated set of assets to qualify as a business.
In November 2019, the Group acquired an 80% share in the Oracle Ridge Copper Mine in Arizona in the
United States of America. Management have accounted for this transaction as an acquisition of assets and
not as a business combination since, at the date of acquisition, the Oracle Ridge Copper Mine did not have
the processes and outputs expected of an operating business. In May 2021, the Company issued
10,000,000 shares to acquire the remaining 20% of the issued capital of Wedgetail Operations LLC, the
owner of the Oracle Ridge Copper Mine, which resulted in the full consolidation of that entity in the Group’s
financial statements.
Page 30
Page 31
69
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg JJuuddggeemmeennttss ((ccoonnttiinnuueedd))
CCaappiittaalliissaattiioonn ooff OOppeerraattiinngg LLeeaasseess
Determination of lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to
be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes
obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this assessment, and that is within the
control of the lessee.
Determination of incremental borrowing rate
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is
used.
To determine the incremental borrowing rate, where possible recent third party financing received by the
individual lessee is used as a starting point and adjusted to reflect changes in financing conditions since
third party financing was received. If there was no recent third party financing agreement, a build-up
approach is used that starts with a risk-free interest rate adjusted for credit risk for the lessee and any
further relevant adjustments specific to the lease (such as term, country, currency and security).
((iiii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg EEssttiimmaatteess aanndd AAssssuummppttiioonnss
The carrying amounts 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.
Key Assumptions – Oracle Ridge Mine Acquisition: Valuation of derivative liability
As part of the acquisition of the Oracle Ridge Copper Mine, a US$6,423,000 secured note was issued to
Vincere Resource Holdings LLC. Up to US$3,000,000 of the secured note can be converted into shares of
the Company upon the occurrence of various conversion trigger events at variable conversion prices. To
derive the fair value of the embedded derivative liability component of the secured note, a number of
assumptions have been made. These assumptions are outlined in note 13.
70
Page 32
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
SSTTAATTEEMMEENNTT OOFF SSIIGGNNIIFFIICCAANNTT AACCCCOOUUNNTTIINNGG PPOOLLIICCIIEESS ((ccoonnttiinnuueedd))
((ii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg JJuuddggeemmeennttss ((ccoonnttiinnuueedd))
((iiii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg EEssttiimmaatteess aanndd AAssssuummppttiioonnss ((ccoonnttiinnuueedd))
CCaappiittaalliissaattiioonn ooff OOppeerraattiinngg LLeeaasseess
Determination of lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to
be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes
obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this assessment, and that is within the
control of the lessee.
Determination of incremental borrowing rate
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is
used.
To determine the incremental borrowing rate, where possible recent third party financing received by the
individual lessee is used as a starting point and adjusted to reflect changes in financing conditions since
third party financing was received. If there was no recent third party financing agreement, a build-up
approach is used that starts with a risk-free interest rate adjusted for credit risk for the lessee and any
further relevant adjustments specific to the lease (such as term, country, currency and security).
((iiii))
SSiiggnniiffiiccaanntt AAccccoouunnttiinngg EEssttiimmaatteess aanndd AAssssuummppttiioonnss
The carrying amounts 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
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.
Key Assumptions – Oracle Ridge Mine Acquisition: Valuation of derivative liability
As part of the acquisition of the Oracle Ridge Copper Mine, a US$6,423,000 secured note was issued to
Vincere Resource Holdings LLC. Up to US$3,000,000 of the secured note can be converted into shares of
the Company upon the occurrence of various conversion trigger events at variable conversion prices. To
derive the fair value of the embedded derivative liability component of the secured note, a number of
assumptions have been made. These assumptions are outlined in note 13.
Key Judgement – 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.
Key Judgement – COVID-19 pandemic
Judgement has been exercised in considering the impact of the COVID-19 pandemic on the Group based
on known information. Other than as addressed in specific notes, there does not currently appear to be
either any significant impact upon the financial statements or any significant uncertainties with respect to
events or conditions which may impact the Group unfavourably as at the reporting date or subsequently
as a result of the COVID-19 pandemic.
((ww)) FFaaiirr VVaalluuee ooff AAsssseettss aanndd LLiiaabbiilliittiieess
The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy
based on the lowest level of input that is significant to the entire fair value measurement, being Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is significant to fair value and therefore which
category the asset or liability is placed in can be subjective.
The 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 and is based on the fair value hierarchy.
reporting period are:
((xx)) GGoovveerrnnmmeenntt aassssiissttaannccee aanndd ggrraannttss
Assistance received from the government by way of grant or other forms of assistance designed to provide
an economic benefit to the Group, is presented in the statement of financial position as deferred income,
in instances where the grant is related to assets. In all other cases, grant money is presented in the profit
and loss as other income. Grants are recognised when there is reasonable assurance that conditions will
be complied with and the grant will be received.
((yy)) EEaarrnniinnggss ppeerr sshhaarree
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of the parent entity,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares
issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Page 32
Page 33
71
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
22..
RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
o
o
During the prior year, the Company entered into an unsecured loan agreement with a director related
entity, Quartz Mountain Mining Pty Ltd (“Quartz Mountain”) as trustee for the Bass Family Trust. The
principal of US$1,000,000 attracts interest at 2% per annum with the first three months being interest free.
The loan’s initial maturity date of 27 October 2020 was subsequently deferred to 31 December 2021.
During the reporting period, shareholders approved the issue to Quartz Mountain of 950,000 options,
exercisable at 20 cents each on or before 1 July 2022, as satisfaction of interest owing to 31 December
2021. Interest expense of US$20,372 (A$28,640) was recognised during the reporting period.
The Company has entered into a lease agreement with Elk Mountain Mining Limited, an entity associated
with Mr Charles Bass, for the lease of the Company’s administration offices in Perth, Western Australia.
Total lease repayments of $87,387 (2020: $85,847) were paid during the year, including interest of $19,064
(2020: $35,402) and lease principal repayments of $68,323 (2020: $50,445).
33..
RREEMMUUNNEERRAATTIIOONN OOFF AAUUDDIITTOORRSS
Audit and review of the financial statements
Taxation services
Total
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
2266,,330000
22,,446600
2288,,776600
YYeeaarr eennddeedd
3300 JJuunnee 22002200
AA$$
29,000
5,620
34,620
The auditor of Eagle Mountain Mining Limited is William Buck Audit (WA) Pty Ltd. During the reporting period a
related entity of William Buck Audit (WA) Pty Ltd provided non-audit services amounting to $2,460 (2020: $5,620)
to companies in the Group.
44..
LLOOSSSS FFRROOMM OORRDDIINNAARRYY AACCTTIIVVIITTIIEESS
Included in the loss before income tax are the
following specific items of income/(expenses):
Interest paid/payable on borrowings
Interest paid/payable on leases
Share based payments expense - employees
Share based payments expense - suppliers
Movements in employee leave liabilities
Project assessment/due diligence costs
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
YYeeaarr eennddeedd
3300 JJuunnee 22002200
AA$$
((336633,,882222))
((3300,,991144))
((66,,445500,,006699))
((11,,009944,,000000))
((2277,,555588))
(196,556)
(50,725)
(248,723)
-
2,257
--
(196,260)
72
Page 34
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
22..
RREELLAATTEEDD PPAARRTTYY TTRRAANNSSAACCTTIIOONNSS
55..
IINNCCOOMMEE TTAAXX EEXXPPEENNSSEE
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
o
o
During the prior year, the Company entered into an unsecured loan agreement with a director related
entity, Quartz Mountain Mining Pty Ltd (“Quartz Mountain”) as trustee for the Bass Family Trust. The
principal of US$1,000,000 attracts interest at 2% per annum with the first three months being interest free.
The loan’s initial maturity date of 27 October 2020 was subsequently deferred to 31 December 2021.
During the reporting period, shareholders approved the issue to Quartz Mountain of 950,000 options,
exercisable at 20 cents each on or before 1 July 2022, as satisfaction of interest owing to 31 December
2021. Interest expense of US$20,372 (A$28,640) was recognised during the reporting period.
The Company has entered into a lease agreement with Elk Mountain Mining Limited, an entity associated
with Mr Charles Bass, for the lease of the Company’s administration offices in Perth, Western Australia.
Total lease repayments of $87,387 (2020: $85,847) were paid during the year, including interest of $19,064
(2020: $35,402) and lease principal repayments of $68,323 (2020: $50,445).
33..
RREEMMUUNNEERRAATTIIOONN OOFF AAUUDDIITTOORRSS
Audit and review of the financial statements
Taxation services
Total
YYeeaarr eennddeedd
3300 JJuunnee 22002211
YYeeaarr eennddeedd
3300 JJuunnee 22002200
AA$$
2266,,330000
22,,446600
2288,,776600
AA$$
29,000
5,620
34,620
The auditor of Eagle Mountain Mining Limited is William Buck Audit (WA) Pty Ltd. During the reporting period a
related entity of William Buck Audit (WA) Pty Ltd provided non-audit services amounting to $2,460 (2020: $5,620)
to companies in the Group.
44..
LLOOSSSS FFRROOMM OORRDDIINNAARRYY AACCTTIIVVIITTIIEESS
Included in the loss before income tax are the
following specific items of income/(expenses):
Interest paid/payable on borrowings
Interest paid/payable on leases
Share based payments expense - employees
Share based payments expense - suppliers
Movements in employee leave liabilities
Project assessment/due diligence costs
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
YYeeaarr eennddeedd
3300 JJuunnee 22002200
AA$$
((336633,,882222))
((3300,,991144))
((66,,445500,,006699))
((11,,009944,,000000))
((2277,,555588))
(196,556)
(50,725)
(248,723)
-
2,257
--
(196,260)
YYeeaarr eennddeedd 3300 JJuunnee
22002211
AA$$
YYeeaarr eennddeedd 3300 JJuunnee
22002200
AA$$
--
--
-
-
((442244,,553399))
(466,738)
442244,,553399
466,738
--
-
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
((2211,,007700,,223399))
(4,368,936)
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 30% (2020: 27.5%)
Add/(Less) tax effect of:
Non-assessable income
Exploration costs not deducted for tax
Non-deductible share based payments
Share issue costs deducted
Unrealised movement in fair value of financial
liabilities
Deferred tax asset not brought to account
Income tax attributable to entity
(b) Deferred tax – statement of financial position
Liabilities
Prepaid expenses
Foreign exchange
Assets
Employee leave and other employee liabilities
Right-of-use asset
Revenue losses available to offset against future
taxable income
Deductible equity raising costs
((66,,332211,,007722))
(1,201,457)
((1155,,000000))
22,,116699,,111188
22,,226633,,222211
((9944,,448866))
668833,,112233
11,,331155,,009966
--
4422,,999999
4411,,222288
8844,,222277
4411,,883300
66,,221122
-
747,198
68,399
(79,584)
(73,940)
539,384
-
25,165
-
25,165
16,204
11,,550022,,004466
1,140,039
330022,,551199
11,,885522,,660077
212,863
1,369,106
Net deferred tax asset not recognised
11,,776688,,338800
1,343,941
Page 34
Page 35
73
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
55..
IINNCCOOMMEE TTAAXX EEXXPPEENNSSEE ((ccoonnttiinnuueedd))
(c) Deferred tax – income statement
Liabilities
Prepaid expenses
Foreign exchange
Assets
Accrued expenses
Employee leave and other employee liabilities
Right-of-use asset
Deductible equity raising costs
Increase in tax losses carried forward
Deferred tax benefit movement not recognised
YYeeaarr eennddeedd 3300
JJuunnee 22002211
AA$$
YYeeaarr eennddeedd 3300 JJuunnee
22002200
AA$$
((1177,,883344))
((4411,,222288))
--
2255,,662266
66,,221122
8899,,775566
336622,,000077
442244,,553399
(15,362)
-
(11,941)
(129)
34,068
460,102
466,738
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)
66..
CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS
Cash at bank
Deposits at call
Total
3300 JJuunnee 22002211
AA$$
99,,111199,,337711
--
99,,111199,,337711
3300 JJuunnee 22002200
AA$$
507,750
-
507,750
Included in cash at bank of $9,119,371 (2020: $507,750) are amounts held in US dollar denominated bank
accounts equivalent to $5,306,502 (2020: $302,637).
77..
TTRRAADDEE AANNDD OOTTHHEERR RREECCEEIIVVAABBLLEESS
GST receivable
Accrued income and other receivables
Prepaid expenses and deposits
Total
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
44,,551111
115588,,229911
114433,,332299
330066,,113311
22,,996611
4433,,883399
9911,,550099
113388,,330099
The carrying amounts of trade and other receivables are assumed to approximate their fair values due to their
short-term nature.
74
Page 36
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
55..
IINNCCOOMMEE TTAAXX EEXXPPEENNSSEE ((ccoonnttiinnuueedd))
88..
EEXXPPLLOORRAATTIIOONN AANNDD EEVVAALLUUAATTIIOONN EEXXPPEENNDDIITTUURREE
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Carrying value – beginning of year
Recognised on acquisition of Oracle Ridge Copper Mine (note 25)1
Effect of movement in foreign exchange rates
CCaarrrryyiinngg vvaalluuee –– eenndd ooff tthhee yyeeaarr
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
1100,,337788,,449966
--
((990044,,221188))
99,,447744,,227788
1,164,027
9,281,112
(66,643)
10,378,496
1Capitalised exploration asset acquisition costs recognised on acquisition of the Oracle Ridge Copper Mine.
Exploration and evaluation expenditure is held by Wedgetail Operations LLC, which is a 100% (2020: 80%) owned
US based subsidiary of Wedgetail Holdings LLC, a wholly owned subsidiary in the Group.
Carried forward exploration and evaluation expenditure at 30 June 2021 represents the exploration asset
acquisition costs recognised on the acquisition of Silver Mountain Mining Pty Ltd and the Oracle Ridge Copper
Mine.
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.
99..
PPRROOPPEERRTTYY,, PPLLAANNTT AANNDD EEQQUUIIPPMMEENNTT
Leasehold
improve-
ments
A$
357,712
Office
equipment
and
furniture
A$
91,496
Field
equipment
and vehicles
Mine plant
and
equipment
Total
A$
300,380
A$
A$
1,001,221 1,750,809
(5,303)
(4,075)
(24,753)
(87,231)
(121,362)
-
13,544
18,964
89,319
121,827
Cost at the beginning of the year
Effect
of
movements
Additions
foreign
exchange
Included in cash at bank of $9,119,371 (2020: $507,750) are amounts held in US dollar denominated bank
accounts equivalent to $5,306,502 (2020: $302,637).
CCoosstt aatt tthhee eenndd ooff tthhee yyeeaarr
335522,,440099
110000,,996655
229944,,559911
11,,000033,,330099 11,,775511,,227744
Accumulated depreciation at the
beginning of the year
Effect
foreign
of
movements
Depreciation charged in the year
AAccccuummuullaatteedd ddeepprreecciiaattiioonn aatt tthhee
eenndd ooff tthhee yyeeaarr
exchange
Net book value at the beginning of
the year
NNeett bbooookk vvaalluuee aatt tthhee eenndd ooff tthhee
yyeeaarr
(189,927)
(67,838)
(117,976)
(109,434)
(485,175)
3,775
3,061
9,146
10,767
26,749
(76,711)
(12,034)
(42,440)
(183,712)
(314,897)
((226622,,886633))
((7766,,881111))
((115511,,227700))
((228822,,337799))
((777733,,332233))
167,785
23,658
182,404
891,787 1,265,634
8899,,554466
2244,,115544
114433,,332211
772200,,993300
997777,,995511
Assets with a net book value of A$28,440 (2020: A$41,539) held by Silver Mountain Mining Operations Inc. are
pledged as security in respect of vehicle loan liabilities (refer note 13).
Page 36
Page 37
75
(c) Deferred tax – income statement
Liabilities
Prepaid expenses
Foreign exchange
Assets
Accrued expenses
Employee leave and other employee liabilities
Right-of-use asset
Deductible equity raising costs
Increase in tax losses carried forward
Deferred tax benefit movement not recognised
YYeeaarr eennddeedd 3300
YYeeaarr eennddeedd 3300 JJuunnee
JJuunnee 22002211
AA$$
22002200
AA$$
((1177,,883344))
((4411,,222288))
--
2255,,662266
66,,221122
8899,,775566
336622,,000077
442244,,553399
(15,362)
-
(11,941)
(129)
34,068
460,102
466,738
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;
(ii)
(iii)
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.
66..
CCAASSHH AANNDD CCAASSHH EEQQUUIIVVAALLEENNTTSS
Cash at bank
Deposits at call
Total
3300 JJuunnee 22002211
3300 JJuunnee 22002200
99,,111199,,337711
AA$$
--
99,,111199,,337711
507,750
AA$$
-
507,750
77..
TTRRAADDEE AANNDD OOTTHHEERR RREECCEEIIVVAABBLLEESS
GST receivable
Accrued income and other receivables
Prepaid expenses and deposits
Total
3300 JJuunnee 22002211
3300 JJuunnee 22002200
AA$$
44,,551111
115588,,229911
114433,,332299
330066,,113311
AA$$
22,,996611
4433,,883399
9911,,550099
113388,,330099
The carrying amounts of trade and other receivables are assumed to approximate their fair values due to their
short-term nature.
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1100.. RRIIGGHHTT--OOFF--UUSSEE AASSSSEETT
Opening balance
Right-of-use asset additions
Depreciation expense
Foreign currency differences
Total
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
220088,,449933
443399,,995577
((112299,,332244))
1122,,007766
553311,,220022
322,131
-
(121,386)
7,748
208,493
The Group leases land and buildings for its offices in Perth, Australia and Arizona, United States of America under
agreements with terms of up to five years.
1111.. TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
CCuurrrreenntt
Trade creditors and accrued expenses
Other payables
Payroll liabilities
Total
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
885533,,225544
11,,779977
221188,,660033
11,,007733,,665544
30,508
70,478
78,458
179,444
The carrying amounts of trade and other payables are assumed to approximate their fair values due to their short-
term nature.
1122.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
Current liability
Non-current liability
Total
MMoovveemmeenntt iinn lleeaassee lliiaabbiilliittiieess
Opening balance
Increase in liability due to additional leases
Principal repayments
Foreign currency differences
Lease liabilities at the end of the year
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
221111,,112277
334400,,778811
555511,,990088
222299,,221100
443399,,995577
((112299,,001177))
1111,,775588
555511,,990088
111,315
117,895
229,210
322,131
-
(100,590)
7,669
229,210
At the beginning of and during the financial year, the Group did not have any short-term leases or leases of low
value assets.
76
Page 38
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
The Group leases land and buildings for its offices in Perth, Australia and Arizona, United States of America under
agreements with terms of up to five years.
1100.. RRIIGGHHTT--OOFF--UUSSEE AASSSSEETT
Opening balance
Right-of-use asset additions
Depreciation expense
Foreign currency differences
Total
1111.. TTRRAADDEE AANNDD OOTTHHEERR PPAAYYAABBLLEESS
Trade creditors and accrued expenses
CCuurrrreenntt
Other payables
Payroll liabilities
Total
term nature.
1122.. LLEEAASSEE LLIIAABBIILLIITTIIEESS
Current liability
Non-current liability
Total
MMoovveemmeenntt iinn lleeaassee lliiaabbiilliittiieess
Opening balance
Increase in liability due to additional leases
Principal repayments
Foreign currency differences
Lease liabilities at the end of the year
3300 JJuunnee 22002211
3300 JJuunnee 22002200
AA$$
AA$$
220088,,449933
443399,,995577
((112299,,332244))
1122,,007766
553311,,220022
322,131
-
(121,386)
7,748
208,493
3300 JJuunnee 22002211
3300 JJuunnee 22002200
AA$$
AA$$
885533,,225544
11,,779977
221188,,660033
11,,007733,,665544
30,508
70,478
78,458
179,444
3300 JJuunnee 22002211
3300 JJuunnee 22002200
AA$$
AA$$
221111,,112277
334400,,778811
555511,,990088
222299,,221100
443399,,995577
((112299,,001177))
1111,,775588
555511,,990088
111,315
117,895
229,210
322,131
-
(100,590)
7,669
229,210
The carrying amounts of trade and other payables are assumed to approximate their fair values due to their short-
At the beginning of and during the financial year, the Group did not have any short-term leases or leases of low
value assets.
1133.. BBOORRRROOWWIINNGGSS
CCuurrrreenntt
Vehicle loan amounts due within one year 1
Loan – Paycheck Protection Program 2
Loans from related parties 3
NNoonn--CCuurrrreenntt
Loan – derivative liability
Loan – debt liability
Subtotal loan 4
Vehicle loan amounts due after one year
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
1100,,115566
--
11,,333300,,114411
11,,334400,,229977
33,,229977,,559911
77,,770055,,664433
1111,,000033,,223344
33,,447799
11,126
155,763
1,469,436
1,636,325
1,134,644
8,140,713
9,275,357
14,936
1111,,000066,,771133
9,290,293
1 Vehicle loan amounts are secured over assets with a net book value of A$28,440 (2020: A$41,539) held by Silver
Mountain Mining Operations Inc. (refer note 9).
2 A wholly owned US subsidiary of the Company qualified for a US$106,900 loan under the US Government’s
Paycheck Protection Program, an initiative intended to incentivise employers to retain workers during the COVID
crisis. The loan attracted interest at a rate of 1% per annum. In December 2020, the Small Business Administration
reviewed the Company’s eligibility for loan forgiveness and approved the forgiveness of entire loan balance.
3 The Company entered into an unsecured loan agreement with a Director-related entity, Quartz Mountain Mining
Pty Ltd (“Quartz Mountain”) as trustee for the Bass Family Trust. The principal of US$1,000,000 attracts interest at
2% per annum with the first three months being interest free. The loan’s maturity date was deferred from 27
October 2020 to 31 December 2021. In September 2020, shareholders approved the issue of 950,000 options to
Quartz Mountain as satisfaction of interest owing to 31 December 2021. The balance outstanding in borrowings at
balance date represents the principal of US$1,000,000 translated at the exchange rate at the end of the reporting
period. Subsequent to the end of the reporting period, Quartz Mountain agreed to the issue of 1,744,000 shares in
lieu of repayment of the US$1,000,000 principal (refer note 19).
4 In November 2019, the Group acquired an 80% interest in the Oracle Ridge Copper Mine in Arizona in the United
States of America, and during the current reporting period acquired the additional 20% interest. Under the terms
of the purchase agreement, Wedgetail Operations LLC, a subsidiary in which the Company now holds a 100%
interest, entered into a US$6,423,000 secured loan with Vincere Resource Holdings LLC. The loan is secured over
all of the assets of Wedgetail Operations LLC, has a ten year term and accrues interest at 3.15% per annum for the
first five years with no interest accruing thereafter.
Under the terms of the agreement, the lender has the right to convert up to US$1,000,000 of the secured loan into
ordinary shares of the Company upon each of the following three conversion trigger events:
i.
ii.
iii.
The completion of a preliminary feasibility study;
A commitment is made to proceed with a bankable feasibility study; and
A commitment is made to commission the financing of the project as evidenced by a feasibility study
sufficient to obtain third party financing.
The terms of the agreement prevent the issue of ordinary shares to the lender where the cumulative amount of
shares held as a result of exercising the conversion rights would exceed 10% of the Company’s ordinary shares on
issue.
Page 38
Page 39
77
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
The conversion price of each conversion right held by the lender is an amount equal to a 20% discount to the 30
day volume weighted average price of the Company’s shares for the 30 days immediately after the date of public
announcement of the applicable conversion trigger event.
The face value of US$6,423,000 is deemed to comprise of the value of the derivative liability (or conversion right),
with the residual being the debt liability component. The debt liability component of the secured loan is amortised
at each reporting period using the effective interest method. The derivative liability component is revalued at each
reporting date over the life of the secured loan.
Fair Value Measurement
The derivative liability component of the US$6,423,000 loan is measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement. Refer to
accounting policy note 1(x) for a description of the three levels. The derivative liability has been categorised as Level
3 in the fair value hierarchy and the fair value at the end of the reporting period was A$3,297,591.
There were no transfers between levels during the financial year.
An independent valuation of the derivative liability has been undertaken at 30 June 2021 using a Monte Carlo
simulation model with the following assumptions:
Assumptions
Valuation date
Spot price (A$) 1
Exercise price 2
Risk free rate
Expected future volatility
Expiry date 3
Conversion Event 1
30 June 2021
$1.000
$0.814
0.20%
100%
25 November 2023
Conversion Event 2
30 June 2021
$1.000
$0.820
0.77%
100%
25 November 2024
Conversion Event 3
30 June 2021
$1.000
$0.823
0.77%
100%
25 November 2025
1 The share price of an EM2 share traded on the ASX to market close on 30 June 2021.
2 Exercise price is equal to a 20% discount to the estimated volume weighted average price of the Company’s shares
for the 30 days immediately after the public announcement of the applicable conversion trigger event.
3 The expiry date is the estimated date on which the conversion right will be exercised, for each tranche of
conversion rights and is estimated from the date of the agreement.
Based on the above assumptions, the revaluation of the derivative liability resulted in a fair value loss of
US$1,700,423 (A$2,277,075) which has been recognised through the profit and loss.
In relation to the restriction of conversion rights up to 10% of the ordinary shares on issue, the valuation is based
on the number of shares on issue at valuation date.
Reconciliation of movement in Level 3 derivative liability
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Balance at the start of the financial year
Fair value on acquisition
Loss/(gain) recognised in profit or loss
Effect of movement in foreign exchange rates
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
11,,113344,,664444
--
22,,227777,,007755
((111144,,112288))
33,,229977,,559911
-
1,365,785
(268,872)
37,731
1,134,644
78
Page 40
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
1133.. BBOORRRROOWWIINNGGSS ((ccoonnttiinnuueedd))
The conversion price of each conversion right held by the lender is an amount equal to a 20% discount to the 30
Unobservable inputs for fair value measurement
day volume weighted average price of the Company’s shares for the 30 days immediately after the date of public
announcement of the applicable conversion trigger event.
The face value of US$6,423,000 is deemed to comprise of the value of the derivative liability (or conversion right),
with the residual being the debt liability component. The debt liability component of the secured loan is amortised
at each reporting period using the effective interest method. The derivative liability component is revalued at each
reporting date over the life of the secured loan.
Fair Value Measurement
The derivative liability component of the US$6,423,000 loan is measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement. Refer to
accounting policy note 1(x) for a description of the three levels. The derivative liability has been categorised as Level
3 in the fair value hierarchy and the fair value at the end of the reporting period was A$3,297,591.
There were no transfers between levels during the financial year.
An independent valuation of the derivative liability has been undertaken at 30 June 2021 using a Monte Carlo
simulation model with the following assumptions:
Assumptions
Conversion Event 1
Conversion Event 2
Conversion Event 3
30 June 2021
30 June 2021
30 June 2021
Valuation date
Spot price (A$) 1
Exercise price 2
Risk free rate
Expected future volatility
Expiry date 3
$1.000
$0.814
0.20%
100%
$1.000
$0.820
0.77%
100%
$1.000
$0.823
0.77%
100%
25 November 2023
25 November 2024
25 November 2025
1 The share price of an EM2 share traded on the ASX to market close on 30 June 2021.
2 Exercise price is equal to a 20% discount to the estimated volume weighted average price of the Company’s shares
for the 30 days immediately after the public announcement of the applicable conversion trigger event.
3 The expiry date is the estimated date on which the conversion right will be exercised, for each tranche of
conversion rights and is estimated from the date of the agreement.
Based on the above assumptions, the revaluation of the derivative liability resulted in a fair value loss of
US$1,700,423 (A$2,277,075) which has been recognised through the profit and loss.
In relation to the restriction of conversion rights up to 10% of the ordinary shares on issue, the valuation is based
on the number of shares on issue at valuation date.
Reconciliation of movement in Level 3 derivative liability
3300 JJuunnee 22002211
3300 JJuunnee 22002200
MMoovveemmeenntt dduurriinngg tthhee yyeeaarr
Balance at the start of the financial year
Fair value on acquisition
Loss/(gain) recognised in profit or loss
Effect of movement in foreign exchange rates
BBaallaannccee aatt tthhee eenndd ooff tthhee ffiinnaanncciiaall yyeeaarr
AA$$
--
11,,113344,,664444
22,,227777,,007755
((111144,,112288))
33,,229977,,559911
AA$$
-
1,365,785
(268,872)
37,731
1,134,644
In determining the fair value measurement of the derivative liability, certain observable inputs such as the share
price and exercise price of the conversion rights are used, together with unobservable inputs.
The unobservable inputs used in the valuation of the derivative liability are deemed to be:
1.
2.
Issued capital – as the conversion rights are restricted to not more than 10% of the ordinary shares on issue,
any increase in issued shares may impact the number of conversion rights that can be exercised; and
Timing of the three milestones to be achieved (conversion trigger events).
The Level 3 unobservable inputs and sensitivity are as follows:
Unobservable Input
Change in input
Shares on Issue
+15%
Date of conversion trigger
event
-6 months
Date of conversion trigger
event
+6 months
Sensitivity
A 15% increase in share capital will result in
no increase in fair value
A decrease of 6 months in achieving the first
and subsequent milestones will result in a
decrease in fair value of approximately
$176,000
An increase of 6 months in achieving the
first and subsequent milestones will result in
an increase in fair value of approximately
$155,000
1144.. OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS
OOppttiioonnss –– RReeccoonncciilliiaattiioonn ooff MMoovveemmeennttss
Options on issue at the beginning of the year
Broker options issued1
Options issued to employees2
Options issued to Directors
Options issued to Quartz Mountain Mining Pty Ltd3
Options issued pursuant to corporate advisory mandate
Options cancelled on expiry of offer options – entitlement offer4
Options cancelled on expiry – employee options
Options exercised
Options on issue at the end of the year
3300 JJuunnee
22002211
NNoo..
2266,,440099,,771166
33,,884466,,115544
66,,882255,,000000
66,,337755,,000000
995500,,000000
22,,000000,,000000
--
--
((1166,,995533,,009900))
2299,,445522,,778800
3300 JJuunnee
22002200
NNoo..
23,801,315
-
3,950,000
-
-
-
(26,599)
(1,315,000)
-
26,409,716
1 Unlisted broker option issued pursuant to a capital raising mandate.
2 Unlisted options issued to employees of the Company pursuant to the Company’s employee incentive plan.
3 Unlisted options issued in lieu of interest payable on a loan from Quartz Mountain Mining Pty Ltd.
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.
Page 40
Page 41
79
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1144.. OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS ((ccoonnttiinnuueedd))
OOppttiioonn CCaappiittaall –– RReeccoonncciilliiaattiioonn ooff MMoovveemmeennttss
Balance at the beginning of the year
Movements during the year
3300 JJuunnee
22002211
AA$$
44,,550000
--
44,,550000
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
22002211
WWeeiigghhtteedd
AAvveerraaggee
EExxeerrcciissee PPrriiccee
((cceennttss))
2233..55
5511..66
2255..33
--
4411..66
NNoo..
2266,,440099,,771166
1199,,999966,,115544
((1166,,995533,,009900))
--
2299,,445522,,778800
No.
23,801,315
3,950,000
-
(1,341,599)
26,409,716
30 June
2020
A$
44,,550000
--
44,,550000
2020
Weighted
Average
Exercise Price
(cents)
23.8
20.6
-
21.2
23.5
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:
DDaattee ggrraanntteedd
23 July 2020
28 July 2020
28 July 2020
25 September 2020
18 February 2021
22 February 2021
30 April 2021
5 May 2021
14 May 2021
NNuummbbeerr ooff
ooppttiioonnss
ggrraanntteedd
1,325,000
1,923,077
1,923,077
1,325,000
2,500,000
2,800,000
6,000,000
2,000,000
200,000
EExxeerrcciissee
pprriiccee
((cceennttss))
20
20
30
20
52
52
55
125
140
EExxppiirryy ddaattee
1 July 2022
30 June 2021
1 July 2022
1 July 2022
22 February 2024
1 July 2024
1 July 2024
7 May 2023
1 July 2024
RRiisskk ffrreeee
iinntteerreesstt
rraattee uusseedd
0.26%
0.26%
0.26%
0.21%
0.11%
0.11%
0.11%
0.07%
0.10%
VVoollaattiilliittyy
aapppplliieedd
102%
102%
102%
97%
103%
103%
103%
103%
103%
VVaalluuee ooff
OOppttiioonnss
$82,415
$124,615
$143,462
$210,544
$354,350
$746,480
$5,856,600
$1,094,000
$105,900
Historical volatility over the previous 12 months has been used as the expected share price volatility. An expense
of $7,498,742 has been recognised through the consolidated statement of profit or loss and other comprehensive
income for the year ended 30 June 2021 (2020: $89,106) in respect of the vesting of options during the year.
Weighted Average Contractual Life
The weighted average contractual life for unexercised options is 38.2 months (2020: 19.2 months).
80
Page 42
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1144.. OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS ((ccoonnttiinnuueedd))
1144..
OOPPTTIIOONNSS AANNDD EEQQUUIITTYY BBAASSEEDD PPAAYYMMEENNTTSS ((ccoonnttiinnuueedd))
OOppttiioonn CCaappiittaall –– RReeccoonncciilliiaattiioonn ooff MMoovveemmeennttss
3300 JJuunnee
30 June
Balance at the beginning of the year
Movements during the year
22002211
WWeeiigghhtteedd
AAvveerraaggee
EExxeerrcciissee PPrriiccee
Exercise Price
NNoo..
((cceennttss))
No.
(cents)
22002211
AA$$
44,,550000
--
44,,550000
2020
A$
44,,550000
--
44,,550000
2020
Weighted
Average
23.8
20.6
-
21.2
23.5
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
2266,,440099,,771166
1199,,999966,,115544
((1166,,995533,,009900))
--
2299,,445522,,778800
2233..55
5511..66
2255..33
--
4411..66
23,801,315
3,950,000
-
(1,341,599)
26,409,716
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:
NNuummbbeerr ooff
EExxeerrcciissee
DDaattee ggrraanntteedd
23 July 2020
28 July 2020
28 July 2020
ooppttiioonnss
ggrraanntteedd
1,325,000
1,923,077
1,923,077
25 September 2020
1,325,000
18 February 2021
2,500,000
22 February 2021
2,800,000
30 April 2021
5 May 2021
14 May 2021
6,000,000
2,000,000
200,000
pprriiccee
((cceennttss))
20
20
30
20
52
52
55
125
140
RRiisskk ffrreeee
iinntteerreesstt
rraattee uusseedd
VVoollaattiilliittyy
aapppplliieedd
EExxppiirryy ddaattee
1 July 2022
30 June 2021
1 July 2022
1 July 2022
1 July 2024
1 July 2024
7 May 2023
1 July 2024
22 February 2024
0.26%
0.26%
0.26%
0.21%
0.11%
0.11%
0.11%
0.07%
0.10%
VVaalluuee ooff
OOppttiioonnss
$82,415
$124,615
$143,462
$210,544
$354,350
$746,480
$5,856,600
$1,094,000
$105,900
102%
102%
102%
97%
103%
103%
103%
103%
103%
Historical volatility over the previous 12 months has been used as the expected share price volatility. An expense
of $7,498,742 has been recognised through the consolidated statement of profit or loss and other comprehensive
income for the year ended 30 June 2021 (2020: $89,106) in respect of the vesting of options during the year.
Weighted Average Contractual Life
The weighted average contractual life for unexercised options is 38.2 months (2020: 19.2 months).
PPeerrffoorrmmaannccee RRiigghhttss
During the year ended 30 June 2021, 60,000 performance rights vested and 210,000 performance rights were
exercised. No performance rights were issued or cancelled during the financial year. An expense of $4,327 has been
recognised for the year ended 30 June 2021 (2020: $19,252) in respect of the vesting of performance rights during
the year.
1155..
IISSSSUUEEDD CCAAPPIITTAALL
SShhaarreess
Balance at the beginning of the year
Shares issued on exercise of
options
Shares issued on exercise of
performance rights
Entitlement issue shares issued
Placement shares issued
Placement shares issued
Placement shares issued
Shares issued for acquisition
Employee incentive shares issued
Less: share issue costs – cash *
Balance at 30 June
YYeeaarr eennddeedd
3300 JJuunnee 22002211
Year ended
30 June 2020
IIssssuuee
pprriiccee
$0.20
$0.30
SShhaarreess
AA$$
Shares
A$
111155,,990011,,004455 1155,,332222,,226655
103,816,039
13,579,949
1166,,995533,,009900
55,,001111,,000099
-
-
-
221100,,000000
3388,,445500
85,000
15,182
$0.15
$0.13
$0.30
$0.35
$1.09
$0.41
-
--
--
12,000,006
1,800,001
2233,,007766,,992233
33,,000000,,000000
55,,000000,,000000
11,,550000,,000000
3311,,442288,,557722 1111,,000000,,000000
1100,,000000,,000000 1100,,990000,,000000
110000,,000000
4411,,000000
--
((11,,221111,,113311))
-
-
-
-
-
-
-
-
-
-
-
(72,867)
220022,,666699,,663300 4455,,660011 559933
115,901,045
15,322,265
* No deferred tax asset has been recognised in respect of the share issue costs as at the date of the financial
report as it is not probable that it will be realised (refer note 5).
The Company is a public company limited by shares. The Company was incorporated in Perth, Western Australia.
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid on
the shares respectively held by them.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary
shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled
to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
1166.. RREESSEERRVVEESS
Foreign currency translation reserve
Share based payments reserve
Common control reserve
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
227722,,220088
390,899
88,,226688,,660088
1,105,348
((33,,001144,,227766))
(3,014,276)
55,,552266,,554400
(1,518,029)
Page 42
Page 43
81
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1166.. RREESSEERRVVEESS ((ccoonnttiinnuueedd))
Movements in reserves:
aa))
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
Balance at the beginning of the year
Exchange (loss)/gain for the year
Non-controlling interest in translation differences
Balance at the end of the year
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
Year ended
30 June 2020
A$
339900,,889999
((110000,,441188))
((1188,,227733))
227722,,220088
297,069
103,077
(9,247)
390,899
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
The foreign currency translation reserve records unrealised exchange gains and losses on translation of
controlled entities accounts during the year.
bb))
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
Balance at the beginning of the year
Fair value vesting expense of options and performance rights
Fair value of options/performance rights exercised during the year
Fair value of options cancelled during the year
Balance at the end of the year
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
Year ended
30 June 2020
A$
11,,110055,,334488
77,,992222,,110011
((775588,,884411))
--
888,625
248,723
(15,182)
(16,818)
88,,226688,,660088
1,105,348
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
The share based payments reserve has been used to recognise the fair value of options and performance
rights issued and vested but not exercised as at the end of the reporting year.
cc))
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
Balance at the beginning of the year
Common control transactions during the year
Balance at the end of the year
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
Year ended
30 June 2020
A$
((33,,001144,,227766))
(3,014,276)
--
-
((33,,001144,,227766))
(3,014,276)
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
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.
82
Page 44
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1166.. RREESSEERRVVEESS ((ccoonnttiinnuueedd))
Movements in reserves:
aa))
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
Balance at the beginning of the year
Exchange (loss)/gain for the year
Non-controlling interest in translation differences
Balance at the end of the year
YYeeaarr eennddeedd
Year ended
3300 JJuunnee 22002211
30 June 2020
AA$$
A$
339900,,889999
((110000,,441188))
((1188,,227733))
227722,,220088
297,069
103,077
(9,247)
390,899
YYeeaarr eennddeedd
Year ended
3300 JJuunnee 22002211
30 June 2020
AA$$
A$
11,,110055,,334488
77,,992222,,110011
((775588,,884411))
--
888,625
248,723
(15,182)
(16,818)
88,,226688,,660088
1,105,348
YYeeaarr eennddeedd
Year ended
3300 JJuunnee 22002211
30 June 2020
AA$$
--
((33,,001144,,227766))
(3,014,276)
((33,,001144,,227766))
(3,014,276)
A$
-
FFoorreeiiggnn ccuurrrreennccyy ttrraannssllaattiioonn rreesseerrvvee
controlled entities accounts during the year.
The foreign currency translation reserve records unrealised exchange gains and losses on translation of
bb))
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
Balance at the beginning of the year
Fair value vesting expense of options and performance rights
Fair value of options/performance rights exercised during the year
Fair value of options cancelled during the year
Balance at the end of the year
SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee
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.
cc))
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
Balance at the beginning of the year
Common control transactions during the year
Balance at the end of the year
CCoommmmoonn ccoonnttrrooll rreesseerrvvee
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1177.. CCAASSHH FFLLOOWW IINNFFOORRMMAATTIIOONN
RReeccoonncciilliiaattiioonn ooff ccaasshh fflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess wwiitthh lloossss aafftteerr iinnccoommee
ttaaxx
Loss after income tax
NNoonn--ccaasshh iitteemmss iinncclluuddeedd iinn pprrooffiitt oorr lloossss
Depreciation expense
Gains on foreign exchange
Fair value loss/(gain) on derivative liability
Share based payment expense
Forgiveness of Paycheck Protection Program loan
Accrued interest expense
CChhaannggeess iinn aasssseettss aanndd lliiaabbiilliittiieess::
(Increase)/decrease in receivables
(Increase)/decrease in prepayments
(Decrease)/increase in employee leave liabilities
(Decrease)/increase in accounts payable and accruals
YYeeaarr eennddeedd
3300 JJuunnee 22002211
AA$$
Year ended
30 June 2020
A$
((2211,,007700,,223399))
(4,368,936)
444444,,222200
((224466,,002255))
22,,227777,,007755
77,,554444,,006699
((114477,,992211))
336611,,444499
((111166,,000022))
((5511,,882200))
5566,,005533
11,,004411,,336633
387,772
(2,390)
(268,872)
248,743
-
195,370
(27,822)
(55,861)
(468)
8,273
NNeett ccaasshh oouuttfflloowwss ffrroomm ooppeerraattiinngg aaccttiivviittiieess
((99,,990077,,777788))
(3,884,191)
1188.. SSEEGGMMEENNTT IINNFFOORRMMAATTIIOONN
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, and the Oracle Ridge Copper
Mine in November 2019, 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 2021
or year ended 30 June 2020.
Reconciliation of Non-Current Assets by Geographical Location
Australia
United States of America
3300 JJuunnee 22002211
AA$$
3300 JJuunnee 22002200
AA$$
220022,,991111
329,533
1111,,004400,,997799
11,656,035
1111,,224433,,889900
11,985,568
Page 44
Page 45
83
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1199.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
In August 2021, Quartz Mountain Mining Pty Ltd as trustee for the Bass Family Trust, an entity associated with Mr
Charles Bass, has agreed to accept 1,744,000 shares in the Company in lieu of repayment of a US$1,000,000 loan
which was due to be repaid by 31 December 2021. The issue of shares is subject to shareholder approval and the
effective issue price of 78.4 cents represents a premium to the closing price on 25 August 2021 and a 10% premium
to the 20 day VWAP of the Company’s shares.
The impact of the COVID-19 pandemic is ongoing. The situation is dependent on measures imposed by the
Australian Government, United States Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided. It is not practicable
to estimate the potential impact, positive or negative, after the reporting date.
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 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.
2200.. KKEEYY MMAANNAAGGEEMMEENNTT PPEERRSSOONNNNEELL
(a) Directors and Key Management Personnel
The following persons were Directors or Key Management Personnel of Eagle Mountain Mining Limited during the
financial year:
(i)
(ii)
(iii)
(iv)
Chairman – Non-Executive
Rick Crabb
Executive Director
Charles Bass, Managing Director
Non-Executive Director
Roger Port
Brett Rowe (as Alternate Director to Charles Bass)
Chief Executive Officer
Timothy Mason
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
3300 JJuunnee 22002211
AA$$
440099,,116666
66,,000011,,552233
3333,,333333
30 June 2020
A$
211,159
59,240
19,142
66,,444444,,002222
289,541
84
Page 46
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
1199.. SSUUBBSSEEQQUUEENNTT EEVVEENNTTSS
2211.. CCOONNTTIINNGGEENNTT AASSSSEETTSS AANNDD LLIIAABBIILLIITTIIEESS
In August 2021, Quartz Mountain Mining Pty Ltd as trustee for the Bass Family Trust, an entity associated with Mr
Charles Bass, has agreed to accept 1,744,000 shares in the Company in lieu of repayment of a US$1,000,000 loan
which was due to be repaid by 31 December 2021. The issue of shares is subject to shareholder approval and the
effective issue price of 78.4 cents represents a premium to the closing price on 25 August 2021 and a 10% premium
to the 20 day VWAP of the Company’s shares.
The impact of the COVID-19 pandemic is ongoing. The situation is dependent on measures imposed by the
Australian Government, United States Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided. It is not practicable
to estimate the potential impact, positive or negative, after the reporting date.
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 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.
The following persons were Directors or Key Management Personnel of Eagle Mountain Mining Limited during the
2200.. KKEEYY MMAANNAAGGEEMMEENNTT PPEERRSSOONNNNEELL
(a) Directors and Key Management Personnel
financial year:
(i)
Chairman – Non-Executive
Rick Crabb
(ii)
Executive Director
Charles Bass, Managing Director
(iii)
Non-Executive Director
Roger Port
(iv)
Chief Executive Officer
Timothy Mason
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:
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:
CCrriitteerriiaa ((SSppeecciiffiiccaallllyy rreellaatteedd ttoo tthhee SSiillvveerr MMoouunnttaaiinn PPrroojjeecctt))
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
CCaasshh BBoonnuuss
SShhaarreess ooff
VVaalluuee
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. On
this basis, the first criterion listed above has not been 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.
2222.. CCOOMMMMIITTMMEENNTTSS
((aa))
EExxpplloorraattiioonn EExxppeennddiittuurree
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
3300 JJuunnee 22002211
AA$$
449955,,445588
11,,888866,,006600
22,,338811,,551188
3300 JJuunnee 22002200
AA$$
464,192
1,943,611
2,407,803
Total short term employment benefits
Total equity-based payments
Total post-employment benefits
3300 JJuunnee 22002211
30 June 2020
AA$$
440099,,116666
66,,000011,,552233
3333,,333333
66,,444444,,002222
A$
211,159
59,240
19,142
289,541
((bb))
((cc))
AAsssseett AAccqquuiissiittiioonn
The Group has no commitments for asset acquisitions at 30 June 2021 or 30 June 2020.
OOtthheerr CCoommmmiittmmeennttss
A 30-day notice period is required under the drilling contract with Boart Longyear during which time Boart
Longyear is entitled to claim standby rates. The estimated commitment, should the contract be terminated, is
approximately US$500,000.
Page 46
Page 47
85
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2222.. CCOOMMMMIITTMMEENNTTSS ((ccoonnttiinnuueedd))
((cc))
OOtthheerr CCoommmmiittmmeennttss ((ccoonnttiinnuueedd))
In April 2021 the Company acquired the remaining 20% of the issued capital of Wedgetail Operations LLC (“WTO”) (refer
Note 25). Having completed that acquisition and with the Group considering requirements for development it notes the
existence of a Reversionary Interest in the Mineral Rights held by Marble Mountain Ventures LLC (MMV) over certain of
the Patented Claims covering the mine and also related to surface access rights as noted in an Industrial Property Lease
agreement (Lease Agreement). In order to maintain access to the surface infrastructure and undertake the current drill
program the Company makes lease payments of approximately US$160,000 per annum to MMV pursuant to the Lease
Agreement (refer Note 22(a)) together with additional access payments for drilling.
The Company was of the view that the Reversionary Interest (being the reversion back to MMV of all rights to minerals in
the mine area) may have been extinguished through the Receivership process which took place. However recent legal
advice has confirmed that the Reversionary Interest is likely to have survived. The Reversionary Interest is provided for in
a deed dated 18 February 2010, with reversion set to occur on 18 February 2025, unless an Extension Option is exercised
by WTO. In order to exercise the Extension Option WTO needs to provide 30 days written Notice; make an Extension
Payment in the order of US$3 million adjusted for CPI; and remain in compliance with various related agreements. Should
WTO agree to exercise the Extension Option, WTO’s interest in the mineral rights related to certain of the Patented Claims
will be extended to 18 February 2040.
2233..
FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
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.
((aa))
CCrreeddiitt RRiisskk
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.
((bb))
LLiiqquuiiddiittyy RRiisskk
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.
86
Page 48
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2222.. CCOOMMMMIITTMMEENNTTSS ((ccoonnttiinnuueedd))
((cc))
OOtthheerr CCoommmmiittmmeennttss ((ccoonnttiinnuueedd))
In April 2021 the Company acquired the remaining 20% of the issued capital of Wedgetail Operations LLC (“WTO”) (refer
Note 25). Having completed that acquisition and with the Group considering requirements for development it notes the
existence of a Reversionary Interest in the Mineral Rights held by Marble Mountain Ventures LLC (MMV) over certain of
the Patented Claims covering the mine and also related to surface access rights as noted in an Industrial Property Lease
agreement (Lease Agreement). In order to maintain access to the surface infrastructure and undertake the current drill
program the Company makes lease payments of approximately US$160,000 per annum to MMV pursuant to the Lease
Agreement (refer Note 22(a)) together with additional access payments for drilling.
The Company was of the view that the Reversionary Interest (being the reversion back to MMV of all rights to minerals in
the mine area) may have been extinguished through the Receivership process which took place. However recent legal
advice has confirmed that the Reversionary Interest is likely to have survived. The Reversionary Interest is provided for in
a deed dated 18 February 2010, with reversion set to occur on 18 February 2025, unless an Extension Option is exercised
by WTO. In order to exercise the Extension Option WTO needs to provide 30 days written Notice; make an Extension
Payment in the order of US$3 million adjusted for CPI; and remain in compliance with various related agreements. Should
WTO agree to exercise the Extension Option, WTO’s interest in the mineral rights related to certain of the Patented Claims
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
will be extended to 18 February 2040.
2233..
FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT
and has adopted a Risk Management Policy.
((aa))
CCrreeddiitt RRiisskk
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.
((bb))
LLiiqquuiiddiittyy RRiisskk
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.
2233.. FFIINNAANNCCIIAALL RRIISSKK MMAANNAAGGEEMMEENNTT ((ccoonnttiinnuueedd))
((cc)) MMaarrkkeett RRiisskk
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.
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
2244.. FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS
CCrreeddiitt RRiisskk
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 23(a)).
IImmppaaiirrmmeenntt LLoosssseess
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.
IInntteerreesstt RRaattee RRiisskk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments was:
FFiixxeedd rraattee iinnssttrruummeennttss
Financial liabilities
VVaarriiaabbllee rraattee iinnssttrruummeennttss
Financial assets
CCaarrrryyiinngg
aammoouunntt (($$))
22002211
Carrying
amount ($)
2020
((88,,999922,,004488))
(10,926,618)
99,,111199,,337711
507,750
Page 48
Page 49
87
EAGLE MOUNTAIN MINING | 2021 Annual Report
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2244..
FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
Cash Flow Sensitivity Analysis for Variable Rate Instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and
profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
22002211
VVaarriiaabbllee rraattee iinnssttrruummeennttss
2020
Variable rate instruments
PPrrooffiitt oorr lloossss
11%%
iinnccrreeaassee
11%%
ddeeccrreeaassee
EEqquuiittyy
11%%
iinnccrreeaassee
11%%
ddeeccrreeaassee
9911,,119933
((9911,,119933))
9911,,119933
((9911,,119933))
5,077
(5,077)
5,077
(5,077)
FFoorreeiiggnn EExxcchhaannggee RRiisskk
At the reporting date the Australian dollar equivalent of amounts recognised by the Group in US dollars were as
follows:
FFiinnaanncciiaall aasssseettss
Cash at bank
Deposits at call
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Borrowings
CCaarrrryyiinngg
aammoouunntt (($$))
22002211
Carrying
amount ($)
2020
55,,330066,,550022
--
55,,330066,,550022
302,637
-
302,637
((996622,,770033))
((1122,,334477,,001100))
(93,695)
(10,926,618)
((1133,,330099,,771133))
(11,020,313)
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.
PPrrooffiitt oorr lloossss
EEqquuiittyy
55%%
iinnccrreeaassee
55%%
ddeeccrreeaassee
55%%
iinnccrreeaassee
55%%
ddeeccrreeaassee
22002211
FFiinnaanncciiaall aasssseettss
221177,,113344
((221177,,113344))
4488,,119911
((4488,,119911))
FFiinnaanncciiaall lliiaabbiilliittiieess
666655,,448866
((666655,,448866))
666655,,448866
((666655,,448866))
2020
Financial assets
-
-
15,132
(15,132)
Financial liabilities
551,016
(551,016)
551,016
(551,016)
88
Page 50
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2244..
FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
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.
PPrrooffiitt oorr lloossss
11%%
11%%
EEqquuiittyy
11%%
11%%
iinnccrreeaassee
ddeeccrreeaassee
iinnccrreeaassee
ddeeccrreeaassee
VVaarriiaabbllee rraattee iinnssttrruummeennttss
9911,,119933
((9911,,119933))
9911,,119933
((9911,,119933))
Variable rate instruments
5,077
(5,077)
5,077
(5,077)
At the reporting date the Australian dollar equivalent of amounts recognised by the Group in US dollars were as
22002211
2020
FFoorreeiiggnn EExxcchhaannggee RRiisskk
follows:
FFiinnaanncciiaall aasssseettss
Cash at bank
Deposits at call
FFiinnaanncciiaall lliiaabbiilliittiieess
Trade and other payables
Borrowings
CCaarrrryyiinngg
Carrying
aammoouunntt (($$))
amount ($)
22002211
2020
55,,330066,,550022
302,637
--
-
55,,330066,,550022
302,637
((996622,,770033))
(93,695)
((1122,,334477,,001100))
(10,926,618)
((1133,,330099,,771133))
(11,020,313)
Cash Flow Sensitivity Analysis for Foreign Exchange
A change in foreign exchange rates of 5% at the reporting date would have increased/(decreased) equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
PPrrooffiitt oorr lloossss
EEqquuiittyy
55%%
55%%
55%%
55%%
iinnccrreeaassee
ddeeccrreeaassee
iinnccrreeaassee
ddeeccrreeaassee
221177,,113344
((221177,,113344))
4488,,119911
((4488,,119911))
22002211
FFiinnaanncciiaall aasssseettss
2020
Financial assets
FFiinnaanncciiaall lliiaabbiilliittiieess
666655,,448866
((666655,,448866))
666655,,448866
((666655,,448866))
Financial liabilities
551,016
(551,016)
551,016
(551,016)
-
-
15,132
(15,132)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2244..
FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
LLiiqquuiiddiittyy RRiisskk
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements (refer note 23(b)):
CCoonnssoolliiddaatteedd
22002211
Non-Derivatives
Trade and other
payables
Borrowings
Lease liabilities
Derivatives
Derivative
liability
22002200
Non-Derivatives
Trade and other
payables
Borrowings
Lease liabilities
Derivatives
Derivative
liability
CCaarrrryyiinngg
aammoouunntt
$$
CCoonnttrraaccttuuaall
ccaasshh fflloowwss
$$
<< 66
mmoonntthhss
$$
66--1122
mmoonntthhss
$$
11--22 yyeeaarrss
22--55 yyeeaarrss
>> 55 yyeeaarrss
$$
$$
$$
11,,007733,,665544
99,,004499,,441199
555511,,990088
11,,007733,,665544
99,,005500,,448833
555511,,990088
11,,007733,,665544
11,,333355,,661188
110011,,117744
--
55,,447777
110099,,995533
--
33,,774455
119955,,337700
--
--
114455,,441111
--
77,,770055,,664433
--
1100,,667744,,998811
1100,,667766,,004455
22,,551100,,444466
111155,,443300
119999,,111155
114455,,441111
77,,770055,,664433
33,,229977,,559911
33,,229977,,559911
33,,229977,,559911
33,,229977,,559911
--
--
--
--
--
--
--
--
33,,229977,,559911
33,,229977,,559911
179,444
9,791,974
229,210
179,444
9,794,013
229,210
179,444
1,475,436
60,396
-
6,000
50,918
-
167,762
77,067
-
4,102
40,829
-
8,140,713
-
10,200,628
10,202,667
1,715,276
56,918
244,829
44,931
8,140,713
1,134,644
1,134,644
1,134,644
1,134,644
-
-
-
-
-
-
-
-
1,134,644
1,134,644
Page 50
Page 51
89
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2244..
FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
FFaaiirr VVaalluueess
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:
CCoonnssoolliiddaatteedd
22002211
CCaarrrryyiinngg
aammoouunntt
$$
FFaaiirr vvaalluuee
$$
Consolidated
2020
Carrying
amount
$
Fair value
$
Cash and cash equivalents
Trade and other payables
Borrowings
Lease liabilities
99,,111199,,337711
((11,,007733,,665544))
((1122,,334477,,001100))
((555511,,990088))
99,,111199,,337711
((11,,007733,,665544))
((1122,,334477,,001100))
((555511,,990088))
507,750
(179,444)
(10,926,618)
(229,210)
507,750
(179,444)
(10,926,618)
(229,210)
((44,,885533,,220011))
((44,,885533,,220011))
(10,827,522)
(10,827,522)
The Group’s policy for recognition of fair values is disclosed at note 1(w).
2255.. AACCQQUUIISSIITTIIOONNSS
In the prior financial year, the purchase of the Oracle Ridge Copper Mine in Arizona in the United States of America
was completed. The mine is held 100% within Wedgetail Operations LLC, which, at the beginning of the current
reporting period, was held 80% by Wedgetail Holdings LLC, a wholly owned subsidiary of the Company. The non-
controlling interest of 20% was held by Vincere Resource Holdings LLC (“Vincere”). Management accounted for
this transaction as an acquisition of assets and not as a business combination since, at the date of acquisition, the
Oracle Ridge Copper Mine did not have the processes and outputs expected of an operating business.
On 4 May 2021, Wedgetail Holdings LLC acquired the remaining 20% of the share capital of Wedgetail Operations
LLC from Vincere. The Company issued 10,000,000 fully paid ordinary shares to Vincere as consideration for the
additional 20% interest. At acquisition date, the fair value of the shares issued was $10,900,000. AASB 10
Consolidated Financial Statements states that changes in a parent’s ownership interest in a subsidiary that do not
result in the parent losing control of the subsidiary are equity transactions (ie transactions with owners in their
capacity as owners). As such, the consideration and the change in non-controlling interest were transferred to
accumulated losses.
90
Page 52
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2244..
FFIINNAANNCCIIAALL IINNSSTTRRUUMMEENNTTSS ((ccoonnttiinnuueedd))
2266.. CCOONNTTRROOLLLLEEDD EENNTTIITTIIEESS
FFaaiirr VVaalluueess
Fair Values Versus Carrying Amounts
financial position, are as follows:
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
CCoonnssoolliiddaatteedd
22002211
CCaarrrryyiinngg
aammoouunntt
$$
FFaaiirr vvaalluuee
$$
Consolidated
2020
Carrying
amount
$
507,750
(179,444)
Fair value
$
507,750
(179,444)
Cash and cash equivalents
Trade and other payables
99,,111199,,337711
((11,,007733,,665544))
99,,111199,,337711
((11,,007733,,665544))
Borrowings
Lease liabilities
((1122,,334477,,001100))
((1122,,334477,,001100))
(10,926,618)
(10,926,618)
((555511,,990088))
((555511,,990088))
(229,210)
(229,210)
((44,,885533,,220011))
((44,,885533,,220011))
(10,827,522)
(10,827,522)
The Group’s policy for recognition of fair values is disclosed at note 1(w).
2255.. AACCQQUUIISSIITTIIOONNSS
In the prior financial year, the purchase of the Oracle Ridge Copper Mine in Arizona in the United States of America
was completed. The mine is held 100% within Wedgetail Operations LLC, which, at the beginning of the current
reporting period, was held 80% by Wedgetail Holdings LLC, a wholly owned subsidiary of the Company. The non-
controlling interest of 20% was held by Vincere Resource Holdings LLC (“Vincere”). Management accounted for
this transaction as an acquisition of assets and not as a business combination since, at the date of acquisition, the
Oracle Ridge Copper Mine did not have the processes and outputs expected of an operating business.
On 4 May 2021, Wedgetail Holdings LLC acquired the remaining 20% of the share capital of Wedgetail Operations
LLC from Vincere. The Company issued 10,000,000 fully paid ordinary shares to Vincere as consideration for the
additional 20% interest. At acquisition date, the fair value of the shares issued was $10,900,000. AASB 10
Consolidated Financial Statements states that changes in a parent’s ownership interest in a subsidiary that do not
result in the parent losing control of the subsidiary are equity transactions (ie transactions with owners in their
capacity as owners). As such, the consideration and the change in non-controlling interest were transferred to
accumulated losses.
Eagle Mountain Mining Limited is the ultimate parent entity of the Group.
The following were controlled entities at the end of the financial year and have been included in the consolidated
financial statements:
Name
Country of
Incorporation
Date
acquired/incorporated
PPeerrcceennttaaggee
IInntteerreesstt HHeelldd
22002211
Percentage
Interest Held
2020
Silver Mountain
Mining Pty Ltd
Silver Mountain
Mining LLC
Silver Mountain
Mining Operations Inc
Wedgetail Arizona Pty
Ltd
Wedgetail Holdings
LLC
Wedgetail Operations
LLC
Australia
7 December 2017
United States of
America
United States of
America
7 December 2017
18 January 2018
Australia
18 July 2019
United States of
America
United States of
America
25 June 2019
18 July 2019
110000%%
110000%%
110000%%
110000%%
110000%%
11000%%
100%
100%
100%
100%
100%
80%
Silver Mountain Mining LLC and Silver Mountain Mining Operations Inc are both 100% owned subsidiaries of Silver
Mountain Mining Pty Ltd.
Wedgetail Operations LLC and Wedgetail Holdings LLC are both 100% owned subsidiaries of Wedgetail Arizona
Pty Ltd.
The following amounts are payable by subsidiary companies to the parent company at the reporting date:
NNaammee
Silver Mountain Mining Pty Ltd
Silver Mountain Mining LLC
Silver Mountain Mining Operations Inc
Wedgetail Holdings LLC
AAmmoouunntt dduuee ttoo
EEaaggllee MMoouunnttaaiinn MMiinniinngg LLiimmiitteedd
2020
A$
69,727
528,472
8,670,459
1,909,877
22002211
AA$$
7700,,118833
552288,,447722
99,,007733,,442222
2222,,115544,,552200
The loans to subsidiary companies are non-interest bearing and the Directors of Eagle Mountain Mining Limited
do not intend to call for repayment within 12 months.
Page 52
Page 53
91
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2277.. NNOONN--CCOONNTTRROOLLLLIINNGG IINNTTEERREESSTT
During the financial year, Wedgetail Holdings LLC, a wholly owned subsidiary of the Company, increased its interest
in Wedgetail Operations LLC from 80% to 100%. The non-controlling interest (“NCI”) of 20% was previously held
by Vincere Resource Holdings LLC.
The following table summarises the NCI information relating to Wedgetail Operations LLC before any intra-group
eliminations.
SSuummmmaarriisseedd SSttaatteemmeenntt ooff FFiinnaanncciiaall PPoossiittiioonn
NNCCII PPeerrcceennttaaggee
AAsssseettss
Current assets
Non-current assets
TToottaall AAsssseettss
LLiiaabbiilliittiieess
Current liabilities
Non-current liabilities
TToottaall LLiiaabbiilliittiieess
NNeett AAsssseettss
3300 JJuunnee 22002211
AA$$
00%%
3300 JJuunnee 22002200
AA$$
2200%%
--
--
--
--
--
--
--
1122,,111133
1100,,114477,,773388
1100,,115599,,885511
669922,,330099
99,,227755,,335577
99,,996677,,666666
119922,,118855
SSuummmmaarriisseedd SSttaatteemmeenntt ooff PPrrooffiitt aanndd LLoossss aanndd OOtthheerr
CCoommpprreehheennssiivvee IInnccoommee
Revenue
Loss before income tax
Other comprehensive income
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr
AA$$
AA$$
--
((1111,,993388,,770033))
3333,,778800
--
((11,,991155,,440033))
4466,,223366
((1111,,990044,,992233))
((11,,886699,,116677))
Loss allocated to NCI
Other comprehensive income allocated to NCI
((11,,887700,,996622))
((338833,,008800))
1188,,227733
99,,224477
SSuummmmaarriisseedd SSttaatteemmeenntt ooff CCaasshh FFlloowwss
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
NNeett ddeeccrreeaassee iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss
AA$$
((88,,773366,,229911))
((224499,,005500))
55,,665566,,445544
((33,,332288,,888877))
AA$$
((11,,115588,,669966))
((775544,,556699))
11,,117711,,009900
((774422,,117755))
92
Page 54
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2277.. NNOONN--CCOONNTTRROOLLLLIINNGG IINNTTEERREESSTT
During the financial year, Wedgetail Holdings LLC, a wholly owned subsidiary of the Company, increased its interest
in Wedgetail Operations LLC from 80% to 100%. The non-controlling interest (“NCI”) of 20% was previously held
by Vincere Resource Holdings LLC.
The following table summarises the NCI information relating to Wedgetail Operations LLC before any intra-group
SSuummmmaarriisseedd SSttaatteemmeenntt ooff FFiinnaanncciiaall PPoossiittiioonn
eliminations.
NNCCII PPeerrcceennttaaggee
AAsssseettss
Current assets
Non-current assets
TToottaall AAsssseettss
LLiiaabbiilliittiieess
Current liabilities
Non-current liabilities
TToottaall LLiiaabbiilliittiieess
NNeett AAsssseettss
3300 JJuunnee 22002211
3300 JJuunnee 22002200
AA$$
00%%
AA$$
2200%%
--
--
--
--
--
--
--
AA$$
--
1122,,111133
1100,,114477,,773388
1100,,115599,,885511
669922,,330099
99,,227755,,335577
99,,996677,,666666
119922,,118855
AA$$
--
((1111,,993388,,770033))
((11,,991155,,440033))
3333,,778800
4466,,223366
((1111,,990044,,992233))
((11,,886699,,116677))
SSuummmmaarriisseedd SSttaatteemmeenntt ooff PPrrooffiitt aanndd LLoossss aanndd OOtthheerr
CCoommpprreehheennssiivvee IInnccoommee
Revenue
Loss before income tax
Other comprehensive income
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee yyeeaarr
Loss allocated to NCI
Other comprehensive income allocated to NCI
((11,,887700,,996622))
((338833,,008800))
1188,,227733
99,,224477
SSuummmmaarriisseedd SSttaatteemmeenntt ooff CCaasshh FFlloowwss
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
NNeett ddeeccrreeaassee iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss
AA$$
AA$$
((88,,773366,,229911))
((11,,115588,,669966))
((224499,,005500))
55,,665566,,445544
((33,,332288,,888877))
((775544,,556699))
11,,117711,,009900
((774422,,117755))
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2288..
LLOOSSSS PPEERR SSHHAARREE
Loss used in calculation of loss per share
Weighted average number of shares used in the
calculation of loss per share
3300 JJuunnee 22002211
$$((1199,,119999,,227777))
30 June 2020
$(3,985,856)
115588,,995533,,994444
108,321,041
Basic and diluted loss per share
((1122..11 cceennttss))
(3.7 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 29,452,780 options and 35,000 performance rights on issue at 30 June 2021 (2020: 26,409,716 options
and 245,000 performance rights) that have not been considered in calculating diluted loss per share as they are
not considered to be dilutive to the reported earnings per share.
2299..
PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN
AAsssseettss
Current assets
Non-current assets1
TToottaall AAsssseettss
LLiiaabbiilliittiieess
Current liabilities
Non-current liabilities
TToottaall LLiiaabbiilliittiieess
NNeett AAsssseettss
EEqquuiittyy
Issued capital
Option capital
Reserves
Accumulated losses
TToottaall EEqquuiittyy
Loss for the period1
Other comprehensive income
TToottaall ccoommpprreehheennssiivvee lloossss ffoorr tthhee ppeerriioodd
PPaarreenntt
3300 JJuunnee
22002211
AA$$
Parent
30 June
2020
A$
88,,224466,,999999
--
226,699
2,981,224
88,,224466,,999999
3,207,923
11,,553399,,772200
112255,,443366
1,662,667
117,895
11,,666655,,115566
1,780,562
66,,558811,,884433
1,427,361
4455,,660011,,559933
44,,550000
88,,226688,,660088
((4477,,229922,,885588))
15,322,265
4,500
1,105,348
(15,004,752)
66,,558811,,884433
1,427,361
((2211,,007700,,223399))
--
(3,875,208)
-
((2211,,007700,,223399))
(3,875,208)
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.
Page 54
Page 55
93
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2299..
PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN ((ccoonnttiinnuueedd))
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity is the guarantor in relation to the US$6,423,000 loan from Vincere Resource Holdings LLC
(“Vincere”). In addition, the parent entity has entered into a Guarantee of Performance with Vincere under which
the parent entity guarantees the full and timely performance of the conversion obligations under the note with
Vincere. Refer to note 13.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
Commitments
The parent had no exploration or capital commitments as at 30 June 2021 and 30 June 2020.
Accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in
note 1.
94
Page 56
EAGLE MOUNTAIN MINING | 2021 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the Year Ended 30 June 2021
2299..
PPAARREENNTT EENNTTIITTYY IINNFFOORRMMAATTIIOONN ((ccoonnttiinnuueedd))
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity is the guarantor in relation to the US$6,423,000 loan from Vincere Resource Holdings LLC
(“Vincere”). In addition, the parent entity has entered into a Guarantee of Performance with Vincere under which
the parent entity guarantees the full and timely performance of the conversion obligations under the note with
Vincere. Refer to note 13.
Contingent liabilities
Commitments
Accounting policies
note 1.
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
The parent had no exploration or capital commitments as at 30 June 2021 and 30 June 2020.
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in
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 58 to 94 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 2021 and of the performance
for the year 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 2021.
This declaration is made in accordance with a resolution of the Directors.
Signed at Perth this 20th day of September 2021.
RRiicckk CCrraabbbb
CChhaaiirrmmaann
Page 56
Page 57
95
EAGLE MOUNTAIN MINING | 2021 Annual Report Eagle Mountain Mining Limited
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 2021, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and 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 2021 and of
its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We 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
(including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
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.
96
EAGLE MOUNTAIN MINING | 2021 Annual Report
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 period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Acquisition of the remaining 20% interest in Wedgetail Operations LLC
Area of focus
Refer also to note 25
How our audit addressed it
During the current financial year,
Wedgetail Holdings LLC acquired the
remaining 20% of the share capital of
Wedgetail Operations LLC. The Directors
determined in accordance with AASB 10
Consolidated Financial Statements, as
there was no change in control of the
entity acquired, the transaction should be
treated as an equity transaction.
The Directors performed their assessment
in line with AASB 10 paragraph 23 which
states that changes in a parent’s
ownership interest in a subsidiary that do
not result in the parent losing control of
the subsidiary are equity transactions (i.e.
transactions with owners in their capacity
as owners).
Our audit procedures included:
— A review of the purchase and transfer
of membership agreement for the
acquisition of the remaining 20%
interest in Wedgetail Operations LLC
to evaluate the nature of the
acquisition.
— An evaluation of the Directors
assessment that the acquisition falls
under paragraph 23 of AASB 10.
— An assessment of the adequacy of the
Group’s disclosures in respect of the
acquisition.
We concluded that the treatment of the
acquisition of the remaining 20% of
Wedgetail Operations LLC as an equity
transaction was appropriate and in
accordance with the relevant Australian
Accounting Standards.
97
EAGLE MOUNTAIN MINING | 2021 Annual Report
Independent auditor’s report to members (continued)
Exploration costs capitalised
Area of focus
Refer also to notes 1(b), 1v(ii) and 8
The Group have recognised exploration
costs in relation the Group's exploration
programs at the Silver Mountain Project
and Oracle Ridge Copper Mine Project
located in Arizona, USA. There is a risk
that 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
Share based payments
Area of focus
Refer also to notes 1(t), 1v(ii) and 14
The Group has entered into share-based
payment arrangements during the year.
The options were issued to provide long
term incentives for executives and
consultants to deliver long term
shareholder returns. Participation in the
plan was at the board’s discretion and no
individual has a contractual right to
participate in the plan or to receive any
guaranteed benefits.
This was a key audit matter because the
arrangements required significant
judgements and estimations by
management, including the following:
How our audit addressed it
Our audit procedures included:
— A review of the directors’ assessment
of the criteria for the capitalisation of
exploration expenditure and evaluation
as to whether there are any indicators
of impairment of capitalised costs.
— An assessment of viability of the
tenements and whether there were
any indicators of impairment of those
costs capitalised in the current period.
— An assessment of the adequacy of the
Group’s disclosures in respect of the
transactions.
We concluded that the recognition
treatment and impairment assessment
were in accordance with the relevant
Australian Accounting Standards.
How our audit addressed it
Our audit procedures included:
— Evaluating the grant dates based on
the terms and conditions of the share-
based payment arrangements;
— Evaluating the fair values of share-
based payment arrangements by
understanding and documenting the
assumptions used; and
— For the specific application of the
Black Scholes model, we assessed
the experience of Management in
preparing these calculations. We
retested some of the assumptions
98
EAGLE MOUNTAIN MINING | 2021 Annual Report
— The evaluation of the grant date of
each arrangement, and the evaluation
of the fair value of the underlying
share price of the Company as at the
grant date;
— The evaluation of key inputs into the
Black Scholes option pricing model,
including the significant judgment of
the forecast volatility of the share
option over its exercise period.
The results of these share-based payment
arrangements materially affect the
disclosures.
used in the model and recalculated
those fair values using volatility
applied in the model to be
appropriately reasonable and within
industry norms.
We also reconciled the vesting of the
share-based payment arrangements to
disclosures made in both the key
management personnel compensation
note and the disclosures in the
Remuneration Report.
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 2021 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.
99
EAGLE MOUNTAIN MINING | 2021 Annual Report
Independent auditor’s report to members (continued)
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.
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 48 to 55 of the directors’
report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Eagle Mountain Mining Limited, for the year
ended 30 June 2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Conley Manifis
Director
Date this day 20th of September 2021
100
EAGLE MOUNTAIN MINING | 2021 Annual Report
ASX:EM2 | eaglemountain.com.au
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