Annual Report for year ended
30 June 2021
Developing the world class Butcherbird Manganese Project in Western Australia to
produce high quality manganese concentrate and high purity manganese products for
traditional and new energy markets.
Element 25 Limited
T +61 8 6315 1400
E admin@e25.com.au
element25.com.au
ABN 46 119 711 929
Contents
Corporate Directory
Principal Activities and Review of Operations
Directors' Report
Audit Independence Declaration
Corporate Governance Statement
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report
ASX Additional Information
3
4
15
23
24
25
26
27
28
29
53
54
58
Corporate Directory
Directors
Seamus Cornelius (Non-Executive Chairman)
Justin Brown (Managing Director)
John Ribbons (Non-Executive Director)
Solicitors
House Legal
86 First Avenue
MT LAWLEY WA 6050
Joint Company Secretaries
Melissa Chapman
Catherine Grant-Edwards
Registered Office
Level 1, Building B
Garden Office Park
355 Scarborough Beach Road
OSBORNE PARK WA 6017
Principal Place of Business
Level 1, Building B
Garden Office Park
355 Scarborough Beach Road
OSBORNE PARK WA 6017
E-mail: admin@e25.com.au
Internet Address
www.element25.com.au
Bankers
National Australia Bank Limited
1232 Hay Street
WEST PERTH WA 6005
Share Register
Automic Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
Telephone: 1300 288 664
Web: www.automicgroup.com.au
Auditors
Rothsay Auditing
Level 1, Lincoln Building
4 Ventnor Avenue
WEST PERTH WA 6005
Stock Exchange Listing
Element 25 Limited shares (Code: E25) are listed on the Australian
Securities Exchange.
Annual Report 2021
Page | 3
Principal Activities and Review of Operations
1.
The Butcherbird Project
1.1.
Introduction
Element 25 Limited (E25 or the Company) is the operator of the Butcherbird Manganese Project (Butcherbird,
Butcherbird Project or Project) which hosts a world-class manganese resource with current JORC resources
of more than 263Mt of manganese ore1. The Company completed a Pre-Feasibility Study (PFS)2 in May
2020, which was updated in December 2020, with respect to developing the deposit to produce
manganese concentrate for export to generate early cashflow with a modest capital
requirement3. The outstanding economics and low capital hurdle for the first stage of
development has allowed the Company to deliver first production from the Project in less
than twelve months from the publication of the PFS.
The PFS also highlighted the Project’s potential for significant growth beyond
the initial Stage 1 production volumes (the studies examined the potential
for a 2X and 3X expansion to Stage 1 within 12 months of initial
commissioning), and the Company expects to expedite the expansion of the
Project.
In addition to the concentrate export business, the Company has completed
extensive research and development and laboratory test work into the
production of high purity manganese products including battery grade
manganese sulphate (HPMSM) and High Purity Electrolytic Manganese Metal
(HPEMM). The work has highlighted that the Butcherbird ores are highly amenable
to an ambient temperature, atmospheric pressure leach process, resulting in a very
efficient extraction of the manganese into solution, the key requirement for the cost
effective and sustainable production of HPMSM and HPEMM.
The Project is located 1,050 km north of Perth and 130km south of Newman in the
Pilbara region of Western Australia. The Project comprises several defined resource areas,
the largest of which is the Yanneri Ridge deposit which straddles the Great Northern Highway and the Goldfields Gas Pipeline,
providing turnkey logistics and energy solutions.
The Company plans to integrate renewable energy into the power solution over time to target a zero-carbon footprint for the Project,
which is expected to also reduce energy costs. A cleaner, lower carbon flowsheet and high penetration renewable energy will place
Butcherbird at the forefront of sustainable high purity manganese production.
1.2.
Updated Pre-Feasibility Study
On 3 December 2020, the Company completed and released an update to the PFS filed in May 2020. The updated PFS builds on the initial
base case published in May 2020 by looking at expansion opportunities beyond the low capex, rapid startup Stage 1 operation.
The updated PFS includes changes in the macro-economic inputs and other design parameters and includes the results of two options
studies which examined the expansion of production at the Project. These parameters include:
Inclusion of silica and other mineral credits.
Revised process recovery to 83%, previously 82%.
Increased plant throughput based around improved plant availability from 1.2Mtpa to 1.3Mtpa.
▪
▪
▪
▪ Updated exchange rate to 0.70 A$/USD, previously variable.
▪
Revised capital expenditure reflecting the inclusion of a mining camp in the base case, with an associated increase of A$2.5M
in required capital.
Revised accommodation costs based on terms negotiated with a supplier.
▪
1 Refer ASX Announcement 17 April 2019
2 Refer ASX Announcement 19 May 2020
3 Refer ASX Announcement 3 December 2020
Annual Report 2021
Page | 4
Principal Activities and Review of Operations
Revised site organisation chart and updated costs.
Revised mining costs based on a completed mining tender process.
▪
▪
▪ Updated sustaining capex involving the TSF and ongoing resource development.
▪
Inclusion of 2X and 3X manganese production expansion estimates.
The results confirmed that the robust economics are maintained and improved for the base case and the expansion options offer the
company opportunities to substantially improve the economics of the Project.
The expansion cases assumed that production will be increased to either 2x or 3x the plant throughput rates of the Base Case,
commencing at the start of the second year of production. This results in better utilisation of the large resource/reserve base
underpinning the Project. Economies of scale result in better equipment utilisation and operating efficiencies which improve project
economics.
Key Economic Metrics
Unit
Ore Mined
ktpa
Manganese Concentrate Produced ktpa
Manganese Concentrate Grade
Mn%
Base Case
1.3Mtpa
1,300
335
33
Manganese Price (Roskill Sept 2020) US$/dmtu 33%Mn FOB Port Hedland 4.37
Exchange Rate
Undiscounted Cashflow
Mine Life
NPV5 (Real) (Pre-Tax)
NPV5 (Real) (Post-Tax)
IRR (pre-tax)
Operating Cost
A$/USD
A$M pa
Years
A$M
A$M
%
A$/dmtu 33% FOB Port Hedland
U$/dmtu 33% FOB Port Hedland
Capital Cost (Base Case)
Project Capital A$M
Expansion Capital
Contingency A$M
Working Capital A$M
Total Capital A$M
Butcherbird Financial Summary – Life of Project
0.70
34.6
41
583
412
387
4.85
3.39
15.1
-
1.9
3.3
20.3
Base Case Yr 1 + Expansion in Year 2
2X Throughput
2.6Mtpa
3X Throughput
3.9Mtpa
2,600
3,900
637
33
4.37
0.70
76.7
21
926
651
342
3.94
2.76
15.1
+13.4
+1.7
0
35.4
931
33
4.37
0.70
117.2
15
1,138
798
359
3.80
2.76
15.1
+18.0
+2.3
0
40.6
Key Economic Metrics
Unit
Base Case Yr 1 + + Expansion in Year 2
Base Case
1.3Mtpa
2X Throughput
2.6Mtpa
3X Throughput
3.9Mtpa
Ore Mined
Manganese Concentrate Produced
Manganese Concentrate Grade
ktpa
ktpa
Mn%
Manganese Price (base)
US$/dmtu 33%Mn FOB
Port Hedland
Undiscounted Cashflow
A$M pa
1,300
2,600
335
33
4.37
39.6
637
33
4.37
72.3
3,900
931
33
4.37
101.7
Annual Report 2021
Page | 5
Principal Activities and Review of Operations
Key Economic Metrics
Unit
Base Case Yr 1 + + Expansion in Year 2
Mine Life
NPV5 Real (Pre Tax)
NPV5 Real (Post tax)
IRR (Pre-tax)
Operating Cost
Base Case
1.3Mtpa
2X Throughput
2.6Mtpa
3X Throughput
3.9Mtpa
Years
A$M
A$M
%
A$/dmtu 33% FOB Port
Hedland
U$/dmtu 33% FOB Port
Hedland
41
583
412
387
4.15
2.91
21
926
651
342
3.97
2.78
15
1,138
798
359
3.97
2.78
Butcherbird Financial Summary – Years 1 to 5
The initial 5-year of production in the base case utilises 92% Measured resources4 and 8% Indicated resources. The 40-year Life of Mine
scenario for the base case utilises 27% Measured resources, 68% Indicated resources and 5% Inferred resources.
Project Development Timeline
1.3.
Development
1.3.1
Permitting
During the year the following key permit were approved by the relevant government departments:
▪ Native Vegetation Clearing Permit - The clearing provisions of the Environmental Protection Act require the clearing of native
vegetation to be authorised by a clearing permit. The clearing permit allows for the removal of vegetation in the key work
areas such as the open pit, the process plant, and the tails storage facility footprints. The application for this permit was
approved by the Department of Mines, industry, Regulation and Safety (DMIRS).
▪ Water Abstraction Licence – This license was approved by the Department of Water and Environmental Regulation (DWER), as
Western Australia’s water resource management agency, has responsibility for assessment and decision making for licences
and permits to extract water for the processing plant operations.
▪ Works Approval – This permit was approved by DWER before initial construction and in accordance with the Environmental
Protection Act 1986.
▪
Great Northern Highway Access - The Company received approval from Main Roads Western Australia for the design of the
access road where it intersects the Great Northern Highway.
▪ Mining Proposal/Mine Closure Plan – The Company received approval of the Mining Proposal and Mine Closure Plan which
takes into consideration the environmental aspects of the mining operation and the rehabilitation activities at the conclusion
of mining.
4 Refer ASX Announcement 17 April 2019
Annual Report 2021
Page | 6
Principal Activities and Review of Operations
▪
Project Management Plan (PMP) – This plan was approved by the DMIRS under the Mines Safety and Inspection Act 1994 (WA)
(MSI Act) prior to the commencement of mining operations. The PMP details the approach to managing hazards associated
with the construction and operation of the proposed mine site.
1.3.2. Water Bore Drilling and Pump Testing
A water exploration drilling programme was completed during the year.
Pump testing of a water production bore completed within a shallow (6 - 16m depth) aquifer at the Butcherbird Project has confirmed
sufficient process water supply for planned production at the Project.
Yields from the aquifer were higher and depths were shallower than previously assumed potentially allowing sufficient water to be
recovered from fewer, shallower bores, thereby reducing capital and operating costs for the borefield.
A number of standard pump tests were conducted to test the aquifer potential and groundwater flow modelling has been completed to
analyse a number of potential borefield designs.
Water test bore drilling programme.
Samples from test bore BBPB03 were analysed for salinity. The groundwater is classified as Marginal Potable, with a salinity of 1,200
mg/L Total Dissolved Solids (TDS). This is ideally suited to the proposed processing method at the Project.
Archaeological and Ethnographic surveys have been completed over the proposed borefield area and no impediments or sites were
recorded.
1.3.3. Camp Construction
During the year, the Company entered into an agreement
with Refuel Australia (Refuel) for the provision of camp
management services at
their Kumarina Roadhouse
(Kumarina) facility, located approximately 30km south of the
Project. Subsequently, E25 installed a 40-man camp at
Kumarina.
Refuel will provide ongoing room servicing and messing
through construction and into operations.
A separate
agreement is also in place for Refuel to supply diesel for the
Project.
Camp construction complete and rooms operational.
Annual Report 2021
Page | 7
Principal Activities and Review of Operations
1.3.4. Mechanical Equipment
Early in the financial year, the Company placed orders for items of equipment with a long lead time. During December 2020, all principal
mechanical equipment including the crusher, log washer, wet and dry screens and ore sorters landed in Fremantle Western Australia
and cleared customs. The consolidation and mobilisation of this equipment commenced shortly thereafter ahead of stage 1
commissioning.
1.3.5. Stage 1 Commissioning
Delivery of the first stage of a planned multi-stage development at Project has been extremely successful with project build and
commencement of commissioning completed within 11 months from the delivery of the Pre-Feasibility Study published in May 20205.
The Project team progressed commissioning activities and reported no indications of any significant flaws in processing equipment.
Initial commissioning objectives included reliable, consistent operation and optimisation of the plant to the various types of ore feed
identified in the starter pits
E25 explored several optimisation opportunities and minor engineering modifications implemented during the normal commissioning
process to enhance plant availability, processing throughput and product quality.
Power and water services operated reliably at design rates and tailing storage facility (TSF) commissioning progressed without issue.
E25 completed other infrastructure including the access road connection to the Great Northern Highway in preparation for trucking the
first cargo to Port Hedland for export via Utah Point export facility.
The Butcherbird mine site progressed to a 24-hour processing operation as part of the scheduled ramp up activities. This produced
accelerated production volumes to facilitate the first shipment of product. Importantly, the in-specification 30-35% Mn content
concentrate was successfully produced early in the commissioning process.
Completed Stage 1 operation at the Butcherbird mine site in Western Australia
5 Refer ASX Announcement 28 January 2021
Annual Report 2021
Page | 8
Principal Activities and Review of Operations
1.4.
Operations
1.4.1
Appointment of Key Contractors
During the year the Company appointed the following key contractors:
▪
▪
▪
Iron Mine Contracting - The Company advised during the year that Iron Mining Contracting Pty Ltd (IMC) had been appointed
as the preferred mining contractor for the Project. IMC are experienced operators with a track record in both mining and civil
works. IMC were mobilised to site in December 2020 to complete the required civil earthworks including access roads, the
Tailings Storage Facility (TSF) and the processing plant site. On completion of the civil work programme, IMC transitioned to
mining to provide material to feed the processing plant.
Great Energy - Great Energy is a specialist energy infrastructure developer focused on delivering energy to the resources and
utilities sectors through Australia and the Asia-pacific. Great Energy designs, constructs, manages, operates and maintains
gas, diesel and renewable fuelled power stations and those of selected resources industry clients. Great Energy are providing
site power at the Project for an initial contract period of four years with buyout and extension provisions.
Civilcon - Civilcon are a construction company located in the southwest of Western Australia with extensive experience in
remote projects. Civilcon completed a range of site civil works in preparation for the installation of the processing plant and
associated infrastructure.
1.4.2.
Logistics and Ore Transport
E25 has entered into Letter of Intent executed with AK Evans Group Australia (AK Evans) for transportation of manganese concentrate
from the Project to Utah Point in Port Hedland. The first trucks departed on 8 June 2021 containing the first manganese concentrate
produced at Butcherbird, with a total of 26,200Kt transported to Port Hedland and loaded onto the Shakespeare Bay which departed
subsequent to the year end on 14 July 2021.
1.4.3. Port Operations and Shipping
In May 2021, the Company executed a Multi-User Access Agreement (Port Agreement) with the Pilbara Port Authority. The Port
Agreement provides for the use of the Port Hedland Utah Point facility for the bulk export of manganese from the Company’s production
facility at the Project.
Utah Point is a well-regarded multi-user bulk handling and loading facility located in Port Hedland, Western Australia. The terms of the
Port Agreement are commercial in confidence, however they are in line with the Pilbara Port Authority’s normal operating terms and
satisfy the Company’s capacity requirement for the first stage of operations up to 390Ktpa.
The Shakespeare Bay docked at Utah Point to load the first shipment of Butcherbird manganese ore
Annual Report 2021
Page | 9
Principal Activities and Review of Operations
1.4.4.
First Manganese Concentrate Shipment
Subsequent to the year end on 15 July 2021, the Company confirmed the first commercial shipment of manganese concentrate departed
the Utah Point Facility at Port Hedland late on 14 July 2021.
1.5.
Sales and Marketing
1.5.1
OM Materials (S) Pte Ltd
On 12 October 2020 the Company announced that key commercial terms had been agreed under a non-binding term sheet to sell 100%
of the manganese ore produced (up to 400,000 tonnes per annum) from the first stage of the Project development to OM Materials (S)
Pte Ltd (OMS), a wholly owned subsidiary of ASX listed company OM Holdings Limited (ASX:OMH) (OMH) under a take-or-pay offtake
arrangement.
On 28 January 2021, the Company announced that binding take or pay offtake agreements were finalised with OMS. The key terms of
the definitive agreements include the following:
▪ OMS to take 100% of the manganese ore from the Project from Stage 1 up to 400,000 tonnes per annum.
▪
An ore pricing mechanism which is calculated as a discount against the Fast Markets published 44% Mn benchmark price
(adjusted for FOB delivery terms).
The parties have agreed the specification and pricing formula(e) for delivered ore between a manganese grade of 28%-35%.
The parties have agreed on minimum and maximum levels/ratios of certain impurities including iron, silica, phosphorous and
moisture. Certain pricing adjustments are provided for in the agreement including both discounts and premia, the details of
which are commercial in confidence.
The term of the offtake agreement will be 5 years, with provision for an extension subject to satisfactory performance by OMS
measured against agreed KPI’s.
Trade terms will include a provision in the first twenty-four months for payment to be made on delivery of parcel sizes as small
as 1,000 tonne to Port Hedland, significantly reducing E25’s working capital requirements.
The ore will be delivered on an FOB basis.
The offtake agreement includes conditions precedent in relation to board approvals, and the receipt of all necessary regulatory
approvals for Stage 1 production.
▪
▪
▪
▪
▪
▪
About OM Holdings Limited
OM Holdings Limited is an integrated manganese and silicon company. It is engaged in the business of mining and trading raw ores, as
well as the smelting and marketing of processed ferroalloys. With an established history of over 25 years in the industry, OMH is listed
on the ASX and captures value across the entire process chain through operations in Australia, China, Japan, Malaysia, Singapore, and
South Africa. Its latest project is a smelter complex in Sarawak, Malaysia, which successfully commenced production in 2014.
1.5.2. Semeru Energy Limited
In addition to the terms agreed with OMS, commercial terms have also been agreed under a non-binding term sheet (Semeru Term
Sheet) to sell 50% of the manganese ore produced from the second stage of the Project development to Semeru Energy Limited
(Semeru), a company headquartered in Singapore. The Semeru Term Sheet provides for a minimum allocation of 175Kt per annum and
a maximum allocation of 200Kt per annum. The Semeru Term Sheet contemplates a 5 year term with provisions for renewal subject to
the satisfactory performance by Semeru against agreed KPIs the details which will be negotiated and documented in definitive
agreements, still to be drafted (Definitive Agreements).
As part of the offtake arrangements, Semeru will provide USD$5M in project finance to fund the Company’s expansion plans as detailed
in the expansion PFS announced to the ASX on 3 December 2020.
The offtake terms include obligations on Semeru to achieve the highest price for E25 manganese concentrate and for E25 to direct that
concentrate be placed with certain clients in order to achieve the optimal pricing.
The Semeru Term Sheet provides an exclusivity period until 30 June 2021 during which the parties expect to finalise the Definitive
Agreements. The Definitive Agreements will include conditions precedent in relation to due diligence, board approvals, shareholder
approvals (including any applicable ASX Listing Rules, Chapter 10 or other requirements) and any other regulatory approvals that may
Annual Report 2021
Page | 10
Principal Activities and Review of Operations
be required (including FIRB). Semeru’s recent participation in the Company’s capital raising by way of a USD$1M investment was also a
requirement, which Semeru has satisfied. Subsequent to the end of the reporting period, the exclusivity under the Semeru Term Sheet
has been extended to 30 October 2021.
About Semeru
Semeru is a private equity investment firm operating across the Asia-Pacific region with a focus on the natural resources sector. Semeru
deploys its capital via equity and debt to both companies and directly into projects with a risk profile reflecting late stage exploration
through to development.
Within the Semeru group of companies, Semeru Trading operates as an independent commodity trader with a focus on base metals and
bulk commodities. Semeru Trading maintains a capacity to provide offtake facilities in concert with Semeru’s investment funds on a
case-by-case basis.
1.6.
Expansion
The Company is looking towards the future through pursuing the Stage 2 expansion of Butcherbird and opportunities to produce value
added products including the production of battery grade High Purity Manganese Sulphate (HPMSM) for electric vehicle (EV) batteries
to power the global transition away from fossil fuel powered mobility.
Manganese is emerging as an increasingly important ingredient for EV batteries, with potential supply constraints for nickel and cobalt
forcing battery manufacturers to look to high manganese cathodes to produce the vast amount of cathode material required by the EV
industry in coming years.
The Project is ideally placed to feed this potential demand, with advanced flowsheet development work undertaken in 2019 and 2020
confirming a simple, unique, ambient temperature and atmospheric pressure leach process for E25 ores which, when combined with
offsets, will target the world’s first Zero Carbon ManganeseTM for EV cathode manufacture 6. Flowsheet optimisation for inclusion in
upcoming feasibility studies is ongoing.
2.
2.1
Corporate
Placement
On 14 July 2020, the Company finalised a placement through the issue of 8,750,000 shares at an issue price of $0.40 per share to raise
funds of $3,500,000 (before costs).
During October and November 2020, the Company finalised an equity raising of $9,750,000 (before costs) through the issue of 12,500,000
shares at an issue price of $0.78 per share.
On 31 March 2021, the Company finalised an equity raising totalling $35,500,000 (before costs) at a price of $2.20 per share. Blackwood
Capital (Blackwood) acted as lead broker to the placement. Fees of 5% of funds raised were paid to participants in the final book build.
2.2
Controlled Placement Agreement
In May 2021, the Company announced it had raised $9,200,000 (after costs) through the set-off of 4,800,000 collateral shares (Set-off
Shares) previously issued to Acuity Capital under the Controlled Placement Agreement (CPA). The Set-off Shares reduce the total
4,800,000 collateral shares which Acuity Capital is otherwise required to return to the Company upon termination of the CPA. These
Set-off Shares have a deemed price of $1.9167. The Company has now terminated the CPA. There were no costs associated with
terminating the CPA.
2.3
Share Purchase Plan
The Share Purchase Plan (SPP) announced on 6 July 2020 closed on 21 July 2020 heavily oversubscribed with the Company having
received applications for over $3.2 million. The SPP booklet outlined that the Company was seeking a target of $1.5 million from the
SPP however, given the strong support shown by shareholders, the Board decided to use its discretion under the terms of the SPP and
accept all shareholder applications.
6 Refer ASX Announcement 12 February 2019
Annual Report 2021
Page | 11
Principal Activities and Review of Operations
2.4
Deferred Consideration
On 27 September 2019, the Company announced the sale of the Cummins Range Rare Earth Project (Cummins Range Project) to RareX
Limited (RareX) for total consideration of $3M. The first tranche of $1M was received at settlement and the Company received the second
tranche of $1M during the year which was settled via the payment of $500,000 in cash and the issue of 7,462,687 fully paid shares in the
capital of RareX at a deemed issue price of 6.7c per share. The shares are subject to a six-month voluntary escrow period.
3.
Mineral Resources and Ore Reserves
3.1.
Mineral Resource Estimate as at 30 June 2021
Butcherbird Manganese project Mineral Resource Classification as first reported on 17 April 2019. Movements in mineral resource
estimate in the year ended 30 June 2021 is as follows:
Category
Tonnes (Mt)
Mn (%)
Si (%)
Fe (%)
Al (%)
30 June 2020
Measured
Indicated
Inferred
Total
Less mining
Measured
Indicated
Inferred
Total
+ ROM Stocks1
Measured
Total
30 June 2021
Measured
Indicated
Inferred
Total
16
41
206
263
0.2
0.1
-
0.3
0.04
0.04
16
41
206
263
11.6
10.0
9.8
10.0
11.7
11.5
-
11.6
11.7
11.7
11.6
10.0
9.8
9.9
20.6
20.9
20.8
20.8
20.5
20.7
-
20.6
20.5
20.5
20.6
20.9
20.8
20.8
11.7
11.0
11.4
11.4
11.7
11.7
-
11.7
11.7
11.7
11.7
11.0
11.4
11.4
5.7
5.8
5.9
5.9
5.6
5.8
-
5.7
5.6
5.6
5.7
5.8
5.9
5.9
Notes:
1 Closing ROM stocks at 30 June 2021 included in production figure
- Reported at a 7% Mn cut-off for the Measured and Indicated categories and an 8% Mn cut-off for the Inferred categories.
- All figures rounded to reflect the appropriate level of confidence (apparent differences may occur due to rounding)
3.2.
Mining Reserve as at 30 June 2021
Based on the results of the Pre-Feasibility Study completed in May 2020, E25 published a Maiden Ore Reserve for the Project of 50.55Mt
in the Proved and Probable categories7.
7 Refer ASX Announcement 19 May 2020
Annual Report 2021
Page | 12
Principal Activities and Review of Operations
Butcherbird Manganese project Mineral Reserve Classification as first reported on 19 May 2020. Movements in mineral reserves in the
year ended 30 June 2021 is as follows:
Classification
30 June 2020
Proved
Probable
Total
less mining
Measured
Indicated
Inferred
Total
plus ROM Stocks1
Measures
Total
30 June 2021
Proved
Probable
Total
Tonnes (Mt)
Grade (Mn%)
Contained Mn (Mt)
Recovered Mn (Mt)
14.4
36.2
50.6
0.2
0.1
-
0.3
0.1
0.1
14.2
36.1
50.3
11.5
9.8
10.3
11.7
11.5
-
11.6
11.7
11.7
11.2
9.8
10.2
1.65
3.56
5.21
1.35
2.92
4.27
1.60
3.54
5.13
1.31
2.90
4.21
Notes:
1 Closing ROM stocks at 30 June 2021 included in production figure
3.3.
Review of Material Changes
The Company updated its Mineral Resource estimates for the Butcherbird Project on 17 April 2019. Total reported Measured, Indicated
and Inferred Mineral Resource estimates are 263 million tonnes at 10.0% per cent manganese for 26 million tonnes of contained
manganese.
E25 announced a Maiden Reserve for the Project on 19 May 2020. Total Proved and Probable Reserves are 50.6 million tonnes at 10.3%
Mn for 5.21 million tonnes of contained manganese.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the original
announcements dated 17 April 2019 and 19 May 2020 and that all material assumptions and technical parameters underpinning the
estimates continue to apply and have not materially changed.
3.4.
Governance controls
E25 reports its Mineral Resources and Ore Reserves on an annual basis, with Mineral Resources inclusive of Ore Reserves. Reporting is
in accordance with the 2012 Edition of the Australasian Code for Report of Exploration Results, Mineral Resources and Ore Reserves and
the ASX Listing Rules. All Competent Persons named by E25 are suitably qualified and experienced as defined in the JORC Code 2012
Edition.
Annual Report 2021
Page | 13
Principal Activities and Review of Operations
3.5.
Competent Persons Statement
The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves listed in the table below is based
on, and fairly represents, information and supporting documentation prepared by the Competent Person whose name appears in the
same row. Each person named in the table below has sufficient experience which is relevant to the style of mineralisation and types of
deposits under consideration and to the activity which he/she has undertaken to qualify as a Competent Person as defined in the JORC
Code 2012. Each person identified in the list below consents to the inclusion in this announcement of the material compiled by them in
the form and context in which it appears.
Activity
Exploration Results
Yanneri Ridge, Coodamudgi, Mundawindi and Ritchies Mineral
Resource Estimates
Bindi, Ilgarrari, and Cadgies Mineral Resource Estimates
Mining, Metallurgy and Financial Modelling in relation to
Mineral Reserves
Competent Person Membership Institution
Justin Brown
Australasian Institute of Mining and Metallurgy
Greg Jones
Australasian Institute of Mining and Metallurgy
Mark Glassock
Australasian Institute of Mining and Metallurgy
Ian Huitson
Australasian Institute of Mining and Metallurgy
At the time that the Exploration Results and Exploration Targets were compiled, Mr Brown was an employee of Element 25 Limited. Mr.
Greg Jones, who acts as Consultant Geologist for E25 is a full time employee of IHC Robbins. At the time that the Mineral Resources were
compiled, Mr Glassock was a consultant to Element 25 Limited. Ian Huitson is employed by Mining Solutions Pty Ltd. Mr Huitson is a
shareholder of Element 25 Limited. Mr Huitson has visited site on a number of occasions as part of the ongoing studies of the Project.
Please note with regard to exploration targets, the potential quantity and grade is conceptual in nature, that there has been insufficient
exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral
Resource.
Annual Report 2021
Page | 14
Directors’ Report
Your directors submit their report on the consolidated entity (the Group, the Company or E25) consisting of Element 25 Limited and the
entities it controlled at the end of, or during, the year ended 30 June 2021.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows. Where
applicable, all current and former directorships held in listed public companies over the last three years have been detailed below. Directors
were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
Seamus Cornelius
(Non-Executive Chairman, Chairman of remuneration committee, audit committee member)
Mr Cornelius is an experienced international corporate lawyer and company director. He was a partner with a major international law firm
from 2000 to 2010 and resided in China from 1993 until 2017. In 2010, Mr Cornelius commenced his public company career as company
director and is currently a director and non-executive chairman of Buxton Resources Limited and Duketon Mining Limited and is executive
chairman of Danakali Limited. Mr Cornelius has not held any former directorships in the last three years.
Justin Brown
B.Sc. (Hon), (Managing Director, audit committee member)
Mr Brown is a geologist with over 20 years of experience in global mineral exploration and mining. He has been involved in the full spectrum
of mineral exploration through to mining in a range of commodities.
Mr Brown has also held a number of board positions, including an executive role with Element 25 Limited since 2006. He has a strong track
record of closing successful commercial transactions and brings a well-rounded set of skills to the management of the Company's activities.
Mr Brown was the founding Managing Director of the Company.
Mr Brown was most recently a non-executive director of Exterra Resources Ltd (ceased 20 September 2017), which merged with Anova
Metals Ltd via a Scheme of Arrangement.
John Ribbons
B.Bus., CPA, ACIS (Non-Executive Director, Chairman of audit committee, remuneration committee member)
Mr Ribbons is an accountant who has worked within the resources industry for over twenty years in the capacity of group financial
controller, chief financial officer or company secretary.
Mr Ribbons has extensive knowledge and experience with ASX listed production and exploration companies. He has considerable site-
based experience with operating mines and has also been involved with the listing of several exploration companies on the ASX. Mr Ribbons
has experience in capital raising, ASX and TSX compliance and regulatory requirements. Mr Ribbons has not held any former directorships
in the last three years.
Mr Ribbons performed the role of Company Secretary during the period until 31 December 2020.
JOINT COMPANY SECRETARIES
Effective from 1 January 2021, Ms Grant-Edwards and Ms Chapman were appointed Joint Company Secretaries.
Ms Grant-Edwards is the co-founder and an Executive Director of Bellatrix Corporate Pty Ltd (Bellatrix), a company providing outsourced
accounting and company secretarial services. Ms Grant-Edwards has over 15 years’ experience in the profession and with ASX/LSE-listed
companies, private entities, and has a background in big-four public practice (Ernst & Young). Ms Grant-Edwards holds a Bachelor of
Commerce degree (UWA) majoring in Accounting and Finance and is a qualified Chartered Accountant (CAANZ).
Ms Chapman is the co-founder and an Executive Director of Bellatrix. Ms Chapman has over 20 years’ experience in the accounting and
company secretarial profession, and has worked in Perth and London across a diverse range ASX/LSE listed companies, private entities and
working with high net worth individuals. Ms Chapman holds a Bachelor of Commerce from Murdoch University, majoring in Accounting,
and is a qualified Certified Practicing Accountant with CPA Australia. She has also completed a Graduate Diploma of Corporate Governance
with the Governance Institute of Australia and a Company Directors Course.
Annual Report 2021
Page | 15
Directors’ Report
Interests in the shares and options of the Company and related bodies corporate
As at the date of this report, the interests of the directors in the shares and options of Element 25 Limited were:
Seamus Cornelius
Justin Brown
John Ribbons
PRINCIPAL ACTIVITIES
Ordinary Shares
Options over
Ordinary Shares
5,755,177
6,405,360
1,000,000
2,050,000
4,100,000
2,050,000
During the year the Group completed the development phase at the Group’s 100% owned Butcherbird Manganese Project located in
Australia to advance towards first stage production.
DIVIDENDS
No dividends were paid or declared during the financial year. No recommendation for payment of dividends has been made.
RESULTS
The Group began the financial year with a cash reserve of $2,697,175 and had surplus funds of $34,822,585 at 30 June 2021. During the
year the Company raised $62,759,000 via placements, share purchase plan, a controlled placement facility and the exercise of unlisted
options. Funds were used to complete the development phase at the Group’s 100% owned Butcherbird Manganese Project located in
Australia to advance towards first stage production. In addition, proceeds will be used to fund the planned stage 2 expansion.
During the year the Group recognised other income of $1,246,530 (2020: $3,833,353) which included income of $560,000 (2020:
$2,635,000) on the sale of mineral properties, research and development tax incentive of $636,515 (2020: $615,465) and other government
grants totalling $50,000 (2020: $539,922).
During the year the Group incurred cost of sales of $1,516,261 (2020: $0) with direct material and production costs attributable to the
extraction, processing and transportation of manganese being allocated to inventories in line with the first shipment of ore which occurred
subsequent to 30 June 2021.
During the year tenement acquisition and exploration expenditure incurred by the Group amounted to $1,654,747 (2020: $3,491,939). The
Group recognised a net fair value loss on financial assets of $16,711 (2020: $919,553 fair value loss) and administration expenditure
incurred amounted to $2,154,769 (2020: $956,422). Share based payment expense was $2,105,900 (2020: $291,831). This has resulted in
an operating loss after income tax for the year ended 30 June 2021 of $6,494,415 (2020: $1,821,271).
Summarised operating results are as follows:
Consolidated entity revenues and profit from ordinary activities before income tax expense
1,246,530
(6,494,415)
2021 Revenue
2021 Results
$
$
Shareholder Return
Basic and diluted loss per share (cents)
2021
$
(4.96)
2020
$
(1.90)
Annual Report 2021
Page | 16
Directors’ Report
Risk Management
The Board is responsible for ensuring that risks and opportunities are identified on a timely basis and that activities are aligned with the
risks and opportunities identified by the Board.
The Group believes that it is crucial for all board members to be a part of this process, and as such the Board has not established a separate
risk management committee.
The Board has a number of mechanisms in place to ensure that management's objectives and activities are aligned with the risks identified
by the Board. These include the following:
▪
▪
Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders needs and manage
business risk.
Implementation of Board approved operating plans and budgets and Board monitoring of progress against these budgets.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than as disclosed in this Annual Report, no significant changes in the state of affairs of the Group occurred during the financial year.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
No matters or circumstances, besides those disclosed at note 28, have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial
years
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group expects to continue the mining operations at the Butcherbird Manganese Project located in Australia as well as advancing the
planned stage 2 expansion.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to significant environmental regulation in respect to its exploration activities.
The Group aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and is in
compliance with all environmental legislation. The directors of the Group are not aware of any breach of environmental legislation for the
year under review.
COVID-19 IMPACT
The impact of the COVID-19 pandemic is ongoing. COVID-19 has had an impact on the Group to 30 June 2021 in terms of increased shipping
and freight costs. It is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is
rapidly developing and is dependent on measures imposed by the Australian government and other countries, such as maintaining social
distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
Annual Report 2021
Page | 17
Directors’ Report
REMUNERATION REPORT (AUDITED)
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
Principles used to determine the nature and amount of remuneration
Remuneration Policy
The remuneration policy of E25 has been designed to align key management personnel objectives with shareholder and business objectives
by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the
Group’s financial results. The Board of E25 believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best key management personnel to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for key management personnel of the Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives (if any), was developed
by the Board. All executives receive a base salary (which is based on factors such as length of service and experience) and superannuation.
The Board reviews executive packages annually by reference to the Group’s performance, executive performance and comparable
information from industry sectors and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to attract and retain the
highest calibre of executives and reward them for performance that results in long-term growth in shareholder wealth.
Executives are also entitled to participate in the employee share and option arrangements.
The executive directors and executives (if any) receive a superannuation guarantee contribution required by the government, which was
9.5% for the 2021 financial year, and do not receive any other retirement benefits. Some individuals may choose to sacrifice part of their
salary to increase payments towards superannuation.
All remuneration paid to directors and executives is valued at the cost to the Group and expensed. Options are valued using the
Black-Scholes methodology.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that
can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting (currently $350,000). Fees for
non-executive directors are not linked to the performance of the Group. However, to align directors’ interests with shareholder interests,
the directors are encouraged to hold shares in the Company.
Performance based remuneration
The Group currently has no performance-based remuneration component built into key management personnel remuneration packages.
Group performance, shareholder wealth and key management personnel remuneration
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment objectives and
key management personnel performance. Currently, this is facilitated through the issue of options to the majority of key management
personnel to encourage the alignment of personal and shareholder interests. The Group believes this policy will be effective in increasing
shareholder wealth. At commencement of production, performance-based bonuses based on key performance indicators are expected to
be introduced.
Use of remuneration consultants
The Group did not employ the services of any remuneration consultants during the financial year ended 30 June 2021.
Voting and comments made at the Company’s 2020 Annual General Meeting
The Company received approximately 97% of “yes votes on its remuneration report for the 2020 financial year. The Company did not
receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
Annual Report 2021
Page | 18
Directors’ Report
Details of remuneration
The key management personnel of the Group include only the directors as per page 15. Details of the remuneration of the key management
personnel of the Group are set out in the following table:
Short-Term
Post-
Employment
Non-Monetary Superannuation
$
$
Long-Term
Long Service
Leave
$
-
-
4,378
4,015
-
-
Share-based
Payments
Options
$
140,225
30,100
280,450
60,200
140,225
30,100
Total
$
201,994
88,575
532,831
310,829
182,225
72,100
5,359
1,902
21,516
20,900
-
-
26,875
22,802
4,378
4,015
560,900
120,400
917,050
471,504
-
-
6,487
5,714
-
-
6,487
5,714
Seamus Cornelius
2021
2020
Justin Brown
2021
2020
John Ribbons
2021
2020
Salary
& Fees
$
56,410
56,573
220,000
220,000
42,000
42,000
Total key management personnel compensation
2021
2020
318,410
318,573
Service agreements
The details of service agreements of the key management personnel of the Group are as follows:
Justin Brown, Managing Director:
▪
▪
▪
Term of agreement – until terminated in accordance with the agreement. The Company may terminate without cause at any time
by giving six months’ written notice, whilst the executive must provide three months’ written notice of termination (unless breach
or agreement by the Company). The agreement contains standard clauses on immediate termination for breach of contract or
misconduct.
Annual salary of $220,000 (plus statutory superannuation), plus the provision of income protection insurance. Mr Brown’s salary
is reviewed on an annual basis.
In the event the Managing Director is terminated as a result of one of the following circumstances the Company will make a six
calendar months termination payment at the base salary and any unvested incentive options will vest immediately:
o
o
o
o
The executive is demoted from his position as executive director of the Company;
The executive is terminated by reason of the liquidation of the Company for the purpose of reconstruction or
amalgamation;
The executive is requested to assume responsibilities or perform tasks not reasonably consistent with his position as
executive director of the Company; or
The Company is subject to a change of control event as described by the Corporations Act including but not limited to
a takeover, merger or a resolution is passed at a general meeting of the Company which results in a change to the
majority of the board of directors.
Annual Report 2021
Page | 19
Directors’ Report
Share-based compensation
Options
Options are issued to key management personnel as part of their remuneration. The options are not issued based on performance criteria
but are issued to the majority of key management personnel of E25 to increase goal congruence between key management personnel and
shareholders. The following options were granted to or vesting with key management personnel during the year:
Grant Date
Granted
Number
Vesting Date Expiry Date
Exercise
Price
Value per
option at
grant date (1)
Exercised
Number
% of
Remuneration
Seamus Cornelius
04/11/2020
250,000
04/11/2020
4/11/2025
$1.209
Justin Brown
John Ribbons
04/11/2020
500,000
04/11/2020
4/11/2025
$1.209
04/11/2020
250,000
04/11/2020
4/11/2025
$1.209
$0.56
$0.56
$0.56
Nil
Nil
Nil
69%
53%
77%
(1)
The value at grant date in accordance with AASB 2: Share-Based Payments of options granted during the year as part of
remuneration. For options granted during the current year, the valuation inputs for the Black-Scholes option pricing model were
as follows:
Underlying Share
Price
Exercise
Price
Volatility
Risk Free
Interest Rate
Valuation
Date
Expiry Date
Directors
$0.885
$1.209
50.0%
0.26%
5/11/2020
4/11/2025
Details of ordinary shares in the Company provided as a result of the exercise of remuneration options to key management personnel of
the Group are set out below:
Number of ordinary shares issued on
exercise of options during the year
Amount paid per ordinary
share
Value exercised ($) (1)
Seamus Cornelius
Justin Brown
John Ribbons
500,000
1,000,000
500,000
$0.35
$0.35
$0.35
$275,000
$550,000
$275,000
(1) The value at exercise date of the options that were granted as part of remuneration and were exercised during the year has been
determined based on the share price on the date of exercise, less exercise price.
No amounts are unpaid on any shares issued on the exercise of options.
Equity instruments held by key management personnel
Share holdings
The number of shares in the Company held during the financial year by each director of E25 and other key management personnel of the
Group, including their personally related parties, and any nominally held, are set out below. There were no shares granted during the
reporting period as compensation.
Seamus Cornelius
Justin Brown
John Ribbons
Balance at start of
the year 1 July
2020
Acquired during
the year on the
exercise of options
5,180,177
5,255,360
585,715
500,000
1,000,000
500,000
Additions
Disposals
75,000
150,000
-
-
75,000
(160,715)
Balance at
end of the year 30
June 2021
5,755,177
6,405,360
1,000,000
Annual Report 2021
Page | 20
Directors’ Report
Option holdings
The options over ordinary shares in the Company held during the financial year by each director of E25 and other key management
personnel of the Company, including their personally related parties, are set out below:
2021
Seamus Cornelius
Justin Brown
John Ribbons
Balance at start
of the year 1
July 2020
Granted as
compensation
2,300,000
4,600,000
2,300,000
250,000
500,000
250,000
Balance at end
of the year 30
June 2021
2,050,000
4,100,000
2,050,000
Vested and
exercisable
2,050,000
4,100,000
2,050,000
Exercised
(500,000)
(1,000,000)
(500,000)
Unvested
-
-
-
All vested options are exercisable at the end of the year.
Loans to key management personnel
There were no loans to key management personnel during the year.
-- End of audited Remuneration Report --
DIRECTORS’ MEETINGS
During the year the Company held twenty meetings of directors. The attendance of directors at meetings of the Board were:
Directors Meetings
Audit Committee Meetings
Remuneration Committee
Meetings
Meetings
Attended
Meetings Eligible
to Attend
Meetings
Attended
Meetings Eligible
to Attend
Meetings
Attended
Meetings Eligible
to Attend
Seamus Cornelius
Justin Brown
John Ribbons
20
20
20
20
20
20
2
2
2
2
2
2
0
N/A
0
0
N/A
0
SHARES UNDER OPTION
Unissued ordinary shares of E25 under option at the date of this report are as follows:
Date options granted
26 June 2020
7 April 2020
Expiry date
25 June 2025
1 April 2025
22 November 2019
20 November 2024
22 February 2019 and 26 June 2020
22 February 2024
29 November 2018
1 December 2017
3 November 2017
2 December 2016
4 November 2020
22 December 2020
28 November 2023
28 November 2022
3 November 2022
24 November 2021
4 November 2025
13 July 2025
Total number of options outstanding at the date of this report
Exercise price (cents)
Number of options
50.0
20.0
27.3
26.0
26.1
35.5
32.5
20.0
120.9
0.44
500,000
500,000
2,000,000
1,600,000
2,000,000
1,200,000
600,000
2,000,000
2,000,000
1,000,000
13,400,000
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
Annual Report 2021
Page | 21
Directors’ Report
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, E25 paid a premium of $66,600 to insure the directors of the Company.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers
in their capacity as officers of entities in the Group, and any other payments arising from liabilities incurred by the officers in connection
with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the
improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to
the company. It is not possible to apportion the premium between amounts relating to the insurance against legal costs and those relating
to other liabilities.
NON-AUDIT SERVICES
There were no non-audit services provided by the entity's auditor, Rothsay Auditing, or associated entities, during the year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company,
or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations
Act 2001.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 23.
Signed in accordance with a resolution of the directors
--------------------------------------------
Justin Brown
Managing Director
Perth, 30 September 2021
Annual Report 2021
Page | 22
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Element 25 Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations
Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Element 25 Limited and the entities it controlled
during the year.
Rothsay Auditing
Daniel Dalla
Partner
30 September 2021
Liability limited by a scheme approved under Professional Standards Legislation
Corporate Governance Statement
The Company’s Corporate Governance Statement for the year ended 30 June 2021 which reports against ASX Corporate Governance
Council’s Principles and Recommendations may be accessed from the Company’s website at www.element25.com.au.
Annual Report 2021
Page | 24
Consolidated Statement of Comprehensive Income
For the Year Ended 30 June 2021
REVENUE
Other income
COST OF SALES
Cost of sales
EXPENDITURE
Exploration and pre-feasibility expenditure
Administration expenses
Depreciation expense
Foreign exchange expense
(Gain) / loss of modification of lease
(Gain) / loss of sale of asset
Fair value gain/(losses) on financial assets
Finance expense
Share-based payment expense
LOSS BEFORE INCOME TAX
INCOME TAX EXPENSE
Note
4
5
6
15
7
14
16
14
2021
$
34,944
1,246,530
2020
$
10,677
3,833,353
(1,516,261)
-
(1,654,747)
(2,154,769)
(165,437)
(37,612)
(91,824)
559
16,711
(66,609)
(3,491,939)
(956,422)
(5,556)
-
-
-
(919,553)
-
31(b)
(2,105,900)
(291,831)
(6,494,415)
(1,821,271)
8
-
-
LOSS FOR THE YEAR ATTRIBUTABLE TO MEMBERS OF E25
(6,494,415)
(1,821,271)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Other comprehensive income for the year, net of tax
2,135
2,135
(5,803)
(5,803)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO MEMBERS OF E25
(6,492,280)
(1,827,074)
LOSS PER SHARE FOR LOSS ATTRIBUTABLE TO THE ORDINARY EQUITY HOLDERS OF
THE COMPANY
Basic and diluted loss per share (cents per share)
30
(4.96)
(1.90)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Annual Report 2021
Page | 25
Consolidated Statement of Financial Position
As at 30 June 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventory
Financial assets at fair value through profit or loss
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Restricted cash
Plant and equipment
Assets under construction
Deferred exploration and evaluation expenditure
Right of use asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Right of use liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Right of use liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
9
10
11
12
13
14
15
16
17
18
19
18
19
20
21
2021
$
34,822,585
787,533
5,438,698
3,329,903
44,378,719
783,215
22,416,095
176,774
94,021
1,122,205
24,592,310
2020
$
2,697,175
1,184,417
-
4,302,502
8,184,094
-
6,868
-
-
-
6,868
68,971,029
8,190,962
4,899,441
438,818
376,376
1,106,194
235,443
5,714,635
1,341,637
-
781,437
781,437
808
-
808
6,496,072
1,342,445
62,474,957
6,848,517
76,788,557
5,834,302
16,403,737
4,098,267
(20,147,902)
(13,653,487)
62,474,957
6,848,517
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Annual Report 2021
Page | 26
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2021
Contributed
Equity
Note
Share-Based
Payments
Reserve
Foreign
Currency
Translation
Reserve
Accumulated
Losses
$
$
$
$
Total
$
15,841,862
3,848,693
(36,454)
(11,832,216)
7,821,885
BALANCE AT 1 JULY 2019
Loss for the year
OTHER COMPREHENSIVE INCOME
Exchange differences on translation of
foreign operations
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share issue transaction costs
Employee and consultant share-based
payments
20
20
31(b)
-
-
-
581,875
(20,000)
-
-
-
-
-
-
291,831
-
(1,821,271)
(1,821,271)
(5,803)
(5,803)
-
(5,803)
(1,821,271)
(1,827,074)
-
-
-
-
-
-
581,875
(20,000)
291,831
BALANCE AT 30 JUNE 2020
16,403,737
4,140,524
(42,257)
(13,653,487)
6,848,517
Loss for the year
OTHER COMPREHENSIVE INCOME
Exchange differences on translation of
foreign operations
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share issue transaction costs
Employee and consultant share-based
payments
20
20
31(b)
-
-
-
62,759,000
(2,374,180)
-
-
-
-
-
-
1,733,900
-
(6,494,415)
(6,494,415)
2,135
2,135
-
2,135
(6,494,415)
(6,492,280)
-
-
-
-
-
-
62,759,000
(2,374,180)
1,733,900
BALANCE AT 30 JUNE 2021
76,788,557
5,874,424
(40,122)
(20,147,902)
62,474,957
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Annual Report 2021
Page | 27
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
Note
2021
$
2020
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Proceeds on sale of mining interests
Expenditure on mining interests
Proceeds from disposal of financial assets at fair value through profit or loss
Payments for financial assets at fair value through profit or loss
Research and development tax incentive received
Other government grants received
Movement of cash from non-restricted to restricted
Royalties received
(6,179,148)
35,248
1,060,000
(24,023,275)
1,602,973
-
-
686,515
(783,215)
-
NET CASH OUTFLOW FROM OPERATING ACTIVITIES
29
(27,600,902)
(829,374)
11,445
635,000
(3,266,215)
1,893,754
(60,000)
615,465
539,922
-
42,966
(417,037)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
NET CASH OUTFLOW FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of ordinary shares
Payment of share issue transaction costs
Principal elements of lease payments
NET CASH INFLOW FROM FINANCING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
20
20
(282,118)
(282,118)
(267)
(267)
62,744,000
(2,374,180)
(325,911)
60,043,909
32,160,889
2,697,175
(35,479)
581,875
(20,000)
-
561,875
144,571
2,552,400
204
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
9
34,822,585
2,697,175
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Annual Report 2021
Page | 28
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting
of E25 and its subsidiaries. The financial statements are presented in the Australian currency. E25 is a company limited by shares, domiciled
and incorporated in Australia. The financial statements were authorised for issue by the directors on 30 September 2021. The directors
have the power to amend and reissue the financial statements.
a. Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board and the Corporations Act 2001. E25 is a for-profit entity for the purpose of preparing
the financial statements.
(i) Compliance with IFRS
The consolidated financial statements of the E25 Group also comply with International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB).
(ii) New and amended standards adopted by the Group
The Group has reviewed all new, revised or amending Accounting Standards and Interpretations issued by the AASB that are relevant to its
operations and effective for the current annual reporting period. The Group has determined that there are no new, revised or amending
Accounting Standards and Interpretations issued by the AASB that has an impact on the Group in the current reporting period.
(iii) New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2021 reporting periods and
have not been early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is that they
are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
(iv) Historical cost convention
These financial statements have been prepared under the historical cost convention, except for certain financial assets and liabilities
measured at fair value.
b. Principles of consolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides evidence of the impairment of the transferred asset. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the Group.
(ii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the
Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling
interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of E25.
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value with the change in carrying amount
recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest
as an associate, jointly controlled entity or financial asset. In addition, any amounts previously recognised in other comprehensive income
Annual Report 2021
Page | 29
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or associate is reduced but joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where
appropriate.
c.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the full Board of Directors.
d.
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian
dollars, which is E25 functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. They are deferred in
equity if they are attributable to part of the net investment in a foreign operation.
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are translated into the presentation currency as follows:
▪
▪
▪
assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that
statement of financial position;
income and expenses for each statement of profit or loss and other comprehensive income are translated at average exchange
rates (unless that is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other
financial instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign operation
is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or
loss, as part of the gain or loss on sale.
e. Revenue recognition
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.
f. Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received, and
the Group will comply with all attached conditions.
Annual Report 2021
Page | 30
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
g.
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the applicable income
tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused
tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period
in the countries where the Company’s subsidiaries and associated operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from
initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised, or the deferred income
tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the
deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
h.
Leases
The Group enters into contractual arrangements for the leases of mining plant, vehicles, buildings and other assets.
The nature of these arrangements can be lease contracts or service contracts with embedded assets. Typically, the duration of these
contracts is for periods of between two and four years, some of which include extension options.
Leases are recognised on the balance sheet as a right of use asset, representing the lessee’s entitlement to the benefits of the identified
asset over the lease term, and a lease liability representing the lessee’s obligation to make the lease payments. Each lease payment is
allocated between its liability and finance cost component. The finance cost is charged to the income statement over the lease period so
as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right of use asset is amortised
on a straight-line basis over the shorter of the useful life of the asset and lease term. When the right of use asset is used in the extraction,
processing and transportation of ore, depreciation is included in inventory.
Liabilities arising from contractual arrangements which contain leases are initially measured at the present value of the future lease
payments. These payments include the present value of fixed payments prescribed in the contract; variable lease payments based on an
index or prescribed rate; amounts expected to be payable by the lessor under residual value guarantees; and exercise price of a purchase
option if it is reasonably certain that the option will be exercised.
Right of use assets are initially measured at the amount of the initial lease liability plus any lease payments at or before commencement
date less incentives received, plus any initial direct costs, and any costs required for dismantling and rehabilitation. Right of use assets are
subsequently measured at cost less any accumulated depreciation and accumulated impairment losses; and any adjustment for
remeasurement of the lease liability. Lease liabilities are subsequently measured at present value, adjusted for any variations to the
underlying contract terms.
Lease payments are discounted using the interest rate implicit in the lease. If this rate cannot be determined, the Group’s incremental
borrowing rate is used, which is the rate which the Group would have to pay to borrow the funds necessary to obtain an asset of a similar
value in a similar economic environment over a similar term and security.
Payments for short term leases and low value assets are recognised on a straight-line basis as an expense in the income statement. Short
term leases are for a period of 12 months or less and contracts involving low value assets typically comprise small items of IT hardware and
Annual Report 2021
Page | 31
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
minor sundry assets.
i.
Impairment of assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
j.
Cash and cash equivalents
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to insignificant risk of changes in value, and bank overdrafts.
k.
Investments and other financial assets
(i) Classification
The Group classifies its financial assets in the following measurement categories:
▪
▪
Those to be measured subsequently at fair value (either through OCI or through profit or loss); and
Those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments
that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other comprehensive income (FVOCI).
(ii) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits to purchase or
sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Company has transferred substantially all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through
profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial
assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment
of principal and interest.
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow
characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:
▪
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income
using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and
presented in other income or expenses. Impairment losses are presented as a separate line item in the statement of profit or
loss.
▪
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash
Annual Report 2021
Page | 32
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken
through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses
which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and recognised in other income or expenses. Interest income from these financial
assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in
other income or expenses and impairment losses are presented as a separate line item in the statement of profit or loss.
▪
FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment
that is subsequently measured at FVPL is recognised in profit or loss and presented net within other income or expenses in the
period in which it arises.
Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair
value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss
following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income
when the Company’s right to receive payment is established.
Changes in the fair value of financial assets at FVPL are recognised in other income or expenses in the statement of profit or loss as
applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately
from other changes in fair value.
(iv) Impairment
The Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost
and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk.
l.
Inventories
Diesel fuel stock, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost for raw materials and
stores is determined as the purchase price. For partly processed and saleable manganese, cost is based on the weighted average cost
method and includes:
▪ Material and production costs directly attributable to the extraction, processing and transportation of manganese to the existing
location;
Production and transportation overheads; and
Depreciation of property, plant and equipment used in the extraction, processing and transportation of manganese.
▪
▪
Manganese ore stockpiles represent manganese ore that has been extracted and is available for further processing or sale. Quantities are
assessed primarily through internal and third party surveys. Where there is an indication that inventories are obsolete or damaged, these
inventories are written down to net realisable value. Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs of completion and the estimated costs necessary to make the sale.
m. Plant and equipment
All plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to
the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance
are charged to the statement of comprehensive income during the reporting period in which they are incurred.
Depreciation of plant and equipment is calculated using the straight line method over their estimated useful lives or, in the case of leasehold
improvements and certain leased plant and equipment, the shorter lease term. The estimated useful lives for the principal categories of
property, plant and equipment depreciated on a straight line basis are as follows:
Annual Report 2021
Page | 33
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
▪
▪
Buildings – 10 years
IT equipment – 3 years
▪ Mine, property and development – 10 to 40 years
▪
Plant and equipment – 5 to 15 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of
comprehensive income. When revalued assets are sold, it is Company policy to transfer the amounts included in other reserves in respect
of those assets to retained earnings.
n. Assets under construction
The cost of assets includes the cost of materials and direct labour and any other costs directly attributable to bringing an asset to a working
condition ready for its intended use. Assets under construction are recognised separately in assets under development. Upon
commissioning, which is the date when the asset is in the location and condition necessary for it to be capable of operating in the manner
intended by management, the assets are transferred into property, plant and equipment.
o. Exploration and evaluation costs
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset
in the year in which they are incurred where the following conditions are satisfied:
▪
▪
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
o
o
the exploration and evaluation expenditures are expected to be recouped through successful development and
exploration of the area of interest, or alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling,
trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and
evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where
they are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an
exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for
the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the
extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset 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 in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and
evaluation asset is tested for impairment and the balance is then reclassified to development.
p. Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid.
The amounts are unsecured, non-interest bearing and are paid on normal commercial terms.
Annual Report 2021
Page | 34
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
q. Employee benefits
(i) Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12 months of the
reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
The Group also has liabilities for long service leave that are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. These obligations are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period 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 end of the reporting period of high-quality corporate bonds with terms
that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of experience adjustments and changes
in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the Group does not have an unconditional right to defer settlement
for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Share-based payments
The Company provides benefits to employees (including directors) of the Company in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’), refer to note 24.
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are
granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the
performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting
date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which
the vesting period has expired and (ii) the number of options that, in the opinion of the directors of the Company, will ultimately vest. This
opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised
for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement
award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award.
r.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in
the cost of the acquisition as part of the purchase consideration.
s.
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity
other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the year.
Annual Report 2021
Page | 35
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income
tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of
shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
t. Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the
taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or
payable to, the taxation authority is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to the taxation authority, are presented as operating cash flows.
u. Critical accounting judgements, estimates and assumptions
The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements are:
(i) Share-based payment transactions
The Company 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. The fair value is determined by an internal valuation using a Black-Scholes option pricing model, using
the assumptions detailed in note 31.
(ii) Environmental Issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation,
and the directors understanding thereof. At the current stage of the Group’s development and its current environmental impact the
directors believe such treatment is reasonable and appropriate.
(iii) Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the best estimates of the directors.
These estimates consider both the financial performance and position of the Group as they pertain to current income taxation legislation,
and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax
position represents the directors’ best estimate, pending an assessment by the Australian Taxation Office.
Annual Report 2021
Page | 36
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
2.
FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit
risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance of the Group.
Risk management is carried out by the full board of directors as the Group believes that it is crucial for all board members to be involved
in this process. The managing director, with the assistance of senior management as required, has responsibility for identifying, assessing,
treating and monitoring risks and reporting to the board on risk management.
a. Market risk
(i) Foreign exchange risk
The Group operates internationally and are exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the Euro.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is
not the entity’s functional currency. The Group has not formalised a foreign currency risk management policy however, it monitors its
foreign currency expenditure considering exchange rate movements.
The risk is not material and sensitivity analysis does not result in a material effect on Group results or financial position.
(ii) Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the statement of
financial position as financial assets at fair value through profit or loss. Given the current level of operations, the Group is not currently
exposed to commodity price risk.
To minimise the risk, the Group’s investments are of high quality and are publicly traded on the ASX. The investments are managed on a
day to day basis to pick up any significant adjustments to market prices.
Sensitivity analysis
At 30 June 2021, if the value of the equity instruments held had increased/decreased by 15% with all other variables held constant, post-
tax loss for the Group would have been $499,485 lower/higher, with no changes to other equity balances, as a result of gains/losses on
equity securities classified as financial assets at fair value through profit or loss (2020: $645,375 lower/higher post-tax loss).
(iii) Interest rate risk
The Group is exposed to movements in market interest rates on cash and cash equivalents. The Group policy is to monitor the interest
rate yield curve out to six months to ensure a balance is maintained between the liquidity of cash assets and the interest rate return. The
entire balance of cash and cash equivalents for the Group $34,822,585 (2020: $2,697,175) is subject to interest rate risk. The proportional
mix of floating interest rates and fixed rates to a maximum of six months fluctuate during the year depending on current working capital
requirements. The weighted average interest rate received on cash and cash equivalents by the Group was 0.16% (2020: 0.5%).
Sensitivity analysis
At 30 June 2021, if interest rates had changed by +/- 50 basis points from the weighted average rate for the year with all other variables
held constant, post-tax profit for the Group would have been $113,000 higher/lower (2020: $10,300 lower/higher post-tax loss on +/- 50
basis points) as a result of higher/lower interest income from cash and cash equivalents.
b. Credit risk
The maximum exposure to credit risk at reporting date is the carrying amount (net of provision for impairment) of those assets as disclosed
in the statement of financial position and notes to the financial statements. The only significant concentration of credit risk for the Group
is the cash and cash equivalents held with financial institutions. All material deposits are held with the major Australian banks for which
the Board evaluate credit risk to be minimal.
As the Group does not presently have any debtors, lending, significant stock levels or any other credit risk, a formal credit risk management
Annual Report 2021
Page | 37
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
policy is not maintained.
c.
Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash and marketable
securities are available to meet the current and future commitments of the Group. Due to the nature of the Group’s activities, being
mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. The
Board of Directors constantly monitor the state of equity markets in conjunction with the Group’s current and future funding requirements,
with a view to initiating appropriate capital raisings as required.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the statement of financial position. All trade
and other payables are non-interest bearing and due within 12 months of the reporting date.
d.
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
The equity investments held by the Group are classified at fair value through profit or loss. The market value of all equity investments
represents the fair value based on quoted prices on active markets (ASX) as at the reporting date without any deduction for transaction
costs. These investments are classified as level 1 financial instruments.
The carrying amounts and estimated fair values of financial assets and financial liabilities are as follows:
Financial Assets
Cash and cash equivalents
Restricted cash
Trade and other receivables
Financial assets at fair value through profit or loss
Total Financial Assets
Financial Liabilities
Trade and other payables
TOTAL Financial Liabilities
2021
$
2020
$
34,822,585
2,697,175
783,215
787,533
3,329,903
39,723,236
-
1,184,417
4,302,502
8,184,094
4,899,441
4,899,441
1,106,194
1,106,194
The methods and assumptions used to estimate the fair value of financial instruments are outlined below:
Cash
The carrying amount is fair value due to the liquid nature of these assets.
Receivables/Payables
Due to the short-term nature of these financial rights and obligations, their carrying amounts are estimated to represent their fair values.
Fair value measurements of financial assets
The carrying values of financial assets and liabilities of the Group approximate their fair values. Fair values of financial assets and liabilities
have been determined for measurement and / or disclosure purposes.
Annual Report 2021
Page | 38
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Fair value hierarchy
The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the significance of the inputs used in
determining that value. The following table analyses financial instruments carried at fair value by the valuation method. The different
levels in the hierarchy have been defined as follows:
▪
▪
▪
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
30 June 2021
Financial assets at fair value through profit or loss
Total
30 June 2020
Financial assets at fair value through profit or loss
Total
3.
SEGMENT INFORMATION
Level 1
$
Level 2
$
Level 3
$
Total
$
3,329,903
3,329,903
4,302,502
4,302,502
-
-
-
-
-
-
-
-
3,329,903
3,329,903
4,302,502
4,302,502
The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief
operating decision makers) in assessing performance and determining the allocation of resources. The Group is managed primarily on the
basis of geographic location of assets given that the type of work done in each location is of a similar nature. Operating segments are
therefore determined on this basis, with two segments being identified: Australia and France.
The activities undertaken in each segment are those associated with the determination and assessment of the existence of commercial
economic reserves, from the Group’s mineral assets in the respective geographic location.
Segment performance is evaluated based on the operating profit and loss and cash flows and is measured in accordance with the Group’s
accounting policies.
Segment Revenue
Revenue
Total revenue
Segment Results
Revenue
Other income
Other cost of sales and expenses
Net (loss) before tax
Operating Assets
Segment operating assets
Total assets
Australia
France
Total
2021
$
2020
$
34,944
34,944
10,677
10,677
2021
2020
$
-
-
$
-
-
2021
$
2020
$
34,944
34,944
10,677
10,677
34,944
1,246,530
(7,713,266)
(6,431,792)
10,677
3,833,353
(5,595,891)
(1,751,861)
-
-
(62,623)
(62,623)
-
-
(69,410)
(69,410)
34,944
1,246,530
(7,775,889)
(6,494,415)
10,677
3,833,353
(5,665,301)
(1,821,271)
68,957,229
68,957,229
8,176,022
8,176,022
13,800
13,800
14,940
14,940
68,971,029
68,971,029
8,190,962
8,190,962
Annual Report 2021
Page | 39
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
4.
REVENUE
Interest revenue
Total
5.
OTHER INCOME
Net gain on sale of mining interests
Research and development tax incentive
Government grant funding
Royalties
Other income
Total
6.
COST OF SALES
Mining costs
Processing costs
Site administration costs
Haulage costs
Sales and marketing costs
Royalty costs
Depreciation of right of use assets
Inventory movement
Total
Cost of sales for the year ended 30 June 2021 reflect site overhead costs in relation to the mining operation.
7.
ADMINISTRATION EXPENSES
Director fees, salaries and wages and other staff costs
Consultants
ASX and other compliance costs
Insurance
Occupancy
Investor relation expenses
Other administration expenses
Total
2021
$
(741,030)
(489,391)
(266,696)
(96,971)
(90,250)
(138,026)
(332,405)
(2,154,769)
Annual Report 2021
Page | 40
2021
$
34,944
34,944
2021
$
560,000
636,515
50,000
-
15
2020
$
10,677
10,677
2020
$
2,635,000
615,465
539,922
42,966
-
1,246,530
3,833,353
2021
$
(2,856,303)
(1,416,922)
(1,199,260)
(847,308)
(73,096)
(141,555)
(340,116)
5,358,299
(1,516,261)
2020
$
-
-
-
-
-
-
-
-
2020
$
(227,124)
(249,358)
(94,586)
(30,707)
(103,261)
(87,688)
(163,698)
(956,422)
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
8.
INCOME TAX
a)
Income tax benefit
Current tax
Deferred tax
Total
b) Reconciliation of income tax expense/(benefit) to prima facie tax payable
(Loss) from continuing operations before income tax expense
Prima facie tax (benefit)/expense at the Australian tax rate of 26.0% (2020: 27.5%)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Share-based payments
Other
Total
Movements in unrecognised temporary differences
Tax effect of current year tax losses for which no deferred tax asset has been recognised
Income tax expense/(benefit)
c) Unrecognised temporary differences
Deferred Tax Assets at 26.0% (2020: 27.5%)
On Income Tax Account
Capital raising expenses
Capitalised mine development costs
Accruals and provisions
Lease liabilities
Foreign carry forward tax losses
Australian carry forward tax losses
Total
Deferred Tax Liabilities at 26.0% (2020: 27.5%)
Financial assets at fair value through profit or loss
Accrued income
Total
2021
2020
$
-
-
-
$
-
-
-
(6,494,415)
(1,688,548)
(1,821,271)
(500,850)
547,534
(153,578)
80,254
468
(1,294,592)
(420,128)
501,927
792,665
-
381,720
38,408
-
496,950
403,363
236,040
50,768
233,034
2,320,597
3,740,752
179,993
48,422
228,415
16,236
-
88,265
-
246,478
2,003,745
2,354,724
295,256
117
295,373
Net deferred tax assets were not brought to account as it was not considered probable within the immediate future that tax profits would
be available against which deductible temporary differences and tax losses could be utilised.
The Group’s ability to use losses in the future is subject to each Group company satisfying the relevant tax authority’s criteria for using
these losses.
In April 2017, the Australian Government enacted legislation which reduces the corporate rate for small and medium business (base rate)
entities from 30% to 25% over the next decade. For the 2017 financial year the corporate tax rate reduced to 27.5% for small business
entities with turnover less than $10 million. This turnover threshold will progressively increase until it reaches $50 million in the 2020
financial year. For the 2021 financial year, the tax rate will decrease to 26% and then 25% for the 2022 and later financial years. Element
25 Limited satisfies the criteria to be a base rate entity.
Annual Report 2021
Page | 41
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
9.
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
Cash and cash equivalents as shown in the statement of financial position and the
statement of cash flows
2021
$
34,822,585
-
2020
$
2,557,520
139,655
34,822,585
2,697,175
Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months depending on the immediate cash requirements
of the Group and earn interest at the respective short-term deposit rates.
10.
TRADE AND OTHER RECEIVABLES
Sundry receivables
Prepayments
Deferred consideration due on tenement sale
(a)
Total
2021
$
563,683
223,850
-
787,533
2020
$
173,770
10,647
1,000,000
1,184,417
(a) Under the terms of the sale agreement with RareX Pty Ltd and its parent company Sagon Resources Ltd, since renamed RareX Ltd
(RareX, ASX code REE), to sell tenement E80/5092, RareX must pay $500,000 cash and issue $500,000 in shares or pay $1,000,000 in
cash (Deferred Consideration) within 12 months of settlement of the acquisition. The Deferred Consideration was received by the
Group during the year ended 30 June 2021.
11.
INVENTORY
Manganese ore stockpiles
Warehouse stores and materials
Total
12.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Australian listed equity securities
Total
2021
$
5,358,299
80,399
5,438,698
2021
$
3,329,903
3,329,903
2020
$
-
-
-
2020
$
4,302,502
4,302,502
Changes in fair values of financial assets at fair value through profit or loss are recorded in other income for gains or directly on the face
of the statement of comprehensive income for losses.
Annual Report 2021
Page | 42
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
13.
RESTRICTED CASH
Bank guarantees and term deposits
Total
14.
PROPERTY, PLANT AND EQUIPMENT
2021
$
783,215
783,215
2020
$
-
-
Carrying amount – at cost
At 30 June 2019
Additions
At 30 June 2020
Additions
Disposals
Other
At 30 June 2021
Accumulated depreciation
At 30 June 2019
Depreciation expense
At 30 June 2020
Depreciation expense
Disposals
Other
At 30 June 2021
Net book value
At 30 June 2019
Additions
Depreciation expense
At 30 June 2020
Additions
Depreciation expense
Disposals
Other
At 30 June 2021
Buildings
IT Equipment
Mine
Properties and
Development
Plant and
Equipment
Total
$
$
$
$
$
-
-
-
4,773,729
-
-
4,773,729
-
-
-
(40,978)
-
-
(40,978)
-
-
-
-
4,773,729
(40,978)
-
-
4,732,751
24,960
267
25,227
282,860
(11,850)
(9,378)
286,859
(12,803)
(5,556)
(18,359,)
(15,914)
12,409
8,636
(13,228)
12,157
267
(5,556)
6,868,
282,860
(15,914)
559
(742)
273,631
-
-
-
6,303,844
-
-
6,303,844
-
-
-
(15,925)
-
-
(15,925)
-
-
-
-
6,303,844
(15,925)
-
-
6,287,919
67,143
-
67,143
11,214,414
-
-
11,281,557
(67,143)
-
(67,143)
(92,620)
-
-
(159,763)
-
-
-
-
11,214,414
(92,620)
-
-
11,121,794
92,103
267
92,370
22,574,847
(11,850)
(9,378)
22,645,989
(79,946)
(5,556)
(85,502)
(165,437)
12,409
8,636
(229,894)
12,157
267
(5,556)
6,868
22,574,847
(165,437)
559
(742)
22,416,095
Annual Report 2021
Page | 43
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
15.
DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Balance at the beginning of the period
Expenditure incurred
Impairment expense
Balance at the end of the period
2021
$
-
1,748,768
(1,654,747)
94,021
2020
$
-
3,491,939
(3,491,939)
-
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent upon the
successful development and commercial exploitation or sale of the respective areas.
16.
RIGHT OF USE ASSET
Cost
Accumulated depreciation
Balance as at beginning of year
Acquisition of plant and equipment by means of finance leases
Depreciation of right of use assets
Lease liability on modification of lease
(Gain) / loss of modification of lease
Balance at end of year
(a)
(a)
2021
$
2,462,257
(1,340,052)
1,122,205
-
2,462,257
(340,116)
(908,112)
(91,824)
1,122,205
2020
$
-
-
-
-
-
-
-
-
-
Leased assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs
incurred when entering into the lease less any lease incentives received. On initial adoption of AASB 16 the Group has adjusted the right-
of-use assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date
of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators
of impairment and an impairment loss is recognised against any right of use lease assets that is impaired.
(a) On 5 October 2020, the Company entered into a lease agreement for the lease of portable accommodation units for use at the
Butcherbird site. The agreement was for a period of 2 years. On 7 April 2021, the Company elected to exercise its option to purchase the
accommodation units hence terminated the lease early.
17.
TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
2021
$
755,569
4,143,872
4,899,441
2020
$
566,652
539,542
1,106,194
Annual Report 2021
Page | 44
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
18.
PROVISIONS
Current
Employee entitlements
Provision for payroll tax
Non-Current
Employee entitlements
19.
INTEREST BEARING LEASE LIABILITIES
Current
Lease liabilities
Non-Current
Lease liabilities
20.
ISSUED CAPITAL
Ordinary shares fully paid
Total issued capital
a) Movement in ordinary share capital
Balance at the beginning of the financial year
−
−
−
−
−
−
−
Transaction costs
Total issued capital
Controlled placement agreement collateral shares
Controlled placement agreement collateral shares
Exercise of options
Placement
Exercise of options
Share purchase plan
Shares issued in settlement of liabilities
2021
$
338,045
100,773
438,818
-
-
2021
$
376,376
376,376
781,437
781,437
2020
$
235,443
-
235,443
808
808
2020
$
-
-
-
-
20(a)
(a)
(b)
(c)
(d)
2021
Number of
Shares
148,790,369
148,790,369
2021
Number of
Shares
98,362,274
-
-
-
37,386,364
4,950,000
8,072,500
19,231
-
148,790,369
2021
$
76,788,557
76,788,557
2021
$
16,403,737
-
9,200,000
-
48,750,000
1,565,000
3,229,000
15,000
(2,374,180)
76,788,557
2020
Number of
Shares
98,362,274
98,362,274
2020
Number of
Shares
91,907,274
1,530,000
4,800,000
125,000
-
-
-
-
-
98,362,274
2020
$
16,403,737
16,403,737
2020
$
15,841,862
555,000
-
26,875
-
-
-
-
(20,000)
16,403,737
Annual Report 2021
Page | 45
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
(a) The 4,800,000 collateral shares were issued pursuant to a controlled placement agreement (CPA) with Acuity Capital that provided
up to $2 million of standby equity capital to 31 January 2022. Under the terms of the CPA, the Company retained full control of all
aspects of the placement process: having sole discretion as to whether or not to utilise the CPA, the quantum of issued shares, the
minimum issue price of shares and the timing of each placement tranche (if any). As collateral for the CPA, the Company agreed to
place 4,800,000 fully paid ordinary shares at nil consideration to Acuity Capital. During the year, the Company agreed to set-off the
collateral shares at a deemed price of $1.9167 per share to raise funds of $9,200,000.
(b) During the year ended 30 June 2021, the Company issued the following shares:
-
-
-
-
In July 2020, the Company issued 8,750,000 fully paid shares at an issue price of $0.40 to raise funds of $3,500,000
In October 2020, the Company issued 8,800,000 fully paid shares at an issue price of $0.78 to raise funds of $6,864,000
In November 2020, the Company issued 3,700,000 fully paid shares at an issue price of $0.78 to raise funds of $2,886,000
In March 2021, the Company issued 16,136,364 fully paid shares at an issue price of $2.20 to raise funds of $35,500,000
(c) During the year ended 30 June 2021, the Company issued the following shares upon the exercise of options:
-
-
-
-
-
-
On 14 July 2020, the Company issued 500,000 shares upon the exercise of options of $0.30 per share which expire on 22
August 2020
On 27 July 2020, the Company issued 500,000 shares upon the exercise of options of $0.30 per share which expire on 22
August 2020
On 19 August 2020, the Company issued 500,000 shares upon the exercise of options of $0.26 per share which expire on 22
February 2024
On 19 August 2020, the Company issued 1,000,000 shares upon the exercise of options of $0.30 per share which expire on
22 August 2020
On 26 October 2020, the Company issued 2,200,000 shares upon the exercise of options of $0.35 per share which expire on
20 November 2020
On 21 December 2020, the Company issued 250,000 shares upon the exercise of options of $0.26 per share which expire
on 22 February 2024
(d) On 23 July 2020, the Company issued 8,072,500 shares pursuant to a share purchase plan to raise funds of $3,229,000
b) Movement in options on issue
Beginning of the financial year
Issued during the year
−
−
−
−
−
−
Exercisable at 20 cents, on or before 1 April 2025
Exercisable at 26 cents, on or before 22 February 2024
Exercisable at 27.3 cents, on or before 20 November 2024
Exercisable at 50 cents, on or before 25 June 2025
Exercisable at 120.90 cents, on or before 4 November 2025
Exercisable at 44 cents, on or before 13 July 2025
Exercised during the year
−
−
−
−
At 21.5 cents, on or before 18 November 2019
At 30.0 cents, on or before 22 August 2020
At 26.0 cents, on or before 22 February 2024
At 35.0 cents, on or before 20 November 2020
Expired during the year
− On 18 November 2019, exercisable at 21.5 cents
− On 2 December 2019, exercisable at 22 cents
− On 2 December 2019, exercisable at 30 cents
2021
$
2020
$
15,350,000
14,750,000
-
-
-
-
2,000,000
1,000,000
(2,000,000)
(750,000)
(2,200,000)
500,000
750,000
2,000,000
500,000
-
-
(125,000)
-
-
-
-
-
-
(2,625,000)
(200,000)
(200,000)
13,400,000
15,350,000
Annual Report 2021
Page | 46
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
c) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number
of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll
each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
d) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they may continue to
provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the
primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current working capital
position against the requirements of the Group to meet operating expenditure and corporate overheads. The Group’s strategy is to ensure
appropriate liquidity is maintained to meet anticipated operating requirements. The working capital position of the Group at 30 June 2021
and 30 June 2020 are as follows:
Cash and cash equivalents
Restricted cash
Trade and other receivables
Financial assets at fair value through profit or loss
Trade and other payables
Employee benefit obligations (current)
Working capital position
21.
RESERVES
Foreign currency translation reserve
Share-based payments reserve
(a)
(b)
2021
$
2020
$
34,822,585
2,697,175
783,215
787,533
3,329,903
(4,899,441)
(438,818)
34,384,977
2021
$
(40,122)
5,874,424
5,834,302
-
1,184,417
4,302,502
(1,106,194)
(235,443)
6,842,457
2020
$
(42,257)
4,140,524
4,098,267
a.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in
note 1(d) and accumulated within a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
b.
Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and performance rights granted. The movement in share-
based payment reserve during the year ended 30 June 2021 of $1,733,900 excludes an amount of $372,000 which is included in trade and
other payables in the statement of financial position.
Annual Report 2021
Page | 47
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
22.
DIVIDENDS
No dividends were paid during the financial year. No recommendation for payment of dividends has been made.
23.
REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and
non-related audit firms:
Rothsay Auditing - audit and review of financial reports
Total remuneration for audit services
24.
CONTINGENCIES
2021
$
54,000
54,000
2020
$
39,500
39,500
There are no material contingent liabilities of the Company at balance date. The Company has contingent assets at balance date resulting
from tenement sales as follows:
Mt Venn Cobalt-Nickel-Copper Project
Under the terms of the sale agreement with Magmatic Resources Ltd (Magmatic, ASX code MAG), to sell tenement E38/2961 the following
contingent consideration is outstanding:
▪
▪
Should Magmatic define a JORC 2012 Mineral Resource of 20Mt @ >= 1% CuEq on the sale tenement, Magmatic will pay the
Company $350,000 in cash and $350,000 in MAG shares; and
Should Magmatic make a decision to mine at the sale tenement, Magmatic will pay the Company $350,000 in cash and $350,000
in MAG shares.
25.
COMMITMENTS
a) Exploration commitments
The Company has certain commitments to meet minimum expenditure requirements on the mineral exploration assets it has an interest
in. Outstanding exploration commitments are as follows:
Within one year
Later than one year but not later than five years
Later than five years
2021
$
476,600
816,800
2,185,500
3,479,000
2020
$
508,300
1,162,700
2,478,600
4,149,600
Annual Report 2021
Page | 48
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
26.
RELATED PARTY TRANSACTIONS
a) Parent entity
The ultimate parent entity within the Group is Element 25 Limited.
b) Subsidiaries
Interests in subsidiaries are set out in note 27.
c) Key management personnel compensation
Short-term benefits
Post-employment benefits
Other long-term benefits
Share-based payments
d)
Loans to related parties
2021
$
324,897
26,875
4,378
560,900
917,050
2020
$
324,287
22,802
4,015
120,400
471,504
There were no loans to related parties, including key management personnel, during the year.
27.
SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the
accounting policy described in note 1(b):
Name
Cordier Mines SAS
Element 25 Butcherbird Project Pty Ltd
28.
SUBSEQUENT EVENTS
2021
2020
Country of
Incorporation
Class of Shares
Equity
Holding %
Equity
Holding %
France
Australia
Ordinary
Ordinary
100
100
100
100
On 15 July 2021, the Company announced the first commercial shipment of manganese concentrate was loaded with the ship departing
the Port Hedland port on 14 July 2021.
On 1 September 2021, the Company announced the second commercial shipment of manganese concentrate was loaded with the ship
departing the Port Hedland port on 30 August 2021.
On 20 September 2021, the Company confirmed that it had been granted an innovation patent for a flowsheet it designed for the extraction
of manganese from run of mine concentrate from the Company’s Butcherbird Project.
No other matter or circumstance has arisen since 30 June 2021, which has significantly affected, or may significantly affect the operations
of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.
Annual Report 2021
Page | 49
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
29.
CASHFLOW INFORMATION
Reconciliation of (loss)/profit after income tax to net cash outflow from operating
activities
(Loss) for the year
Non-cash items
− Depreciation of non-current assets
−
−
−
−
Employee and consultants share-based payments
Fair value of financial assets received on sale of mining interests
Fair value of financial assets disposed as consideration for expenses
Lease payments
− Net exchange differences and other
Change in operating assets and liabilities:
−
(Increase)/decrease in trade and other receivables
− Decrease in financial assets at fair value through profit or loss
−
Increase in trade and other payables
−
−
(Increase)/decrease in development costs
Increase in employee benefit obligations
Net cash outflow from operating activities
30.
LOSS PER SHARE
a) Reconciliation of earnings used in calculating loss per share
2021
$
2020
$
(6,494,415)
(1,821,271)
165,436
2,105,900
500,000
613,663
325,910
(64,517)
396,884
972,599
(3,793,246)
(22,126,550)
(202,566)
(27,600,902)
5,556
291,831
(1,000,000)
30,000
-
(5,989)
(108,834)
1,868,063
297,527
-
26,080
(417,037)
2021
$
2020
$
Loss attributable to the owners of the Company used in calculating basic and diluted
loss per share
(6,494,415)
(1,821,271)
b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic and diluted loss per share
c)
Information on the classification of options
2021
$
2020
$
130,874,588
93,481,823
As the Group made a loss for the year ended 30 June 2021, the options on issue were considered anti-dilutive and were not included in
the calculation of diluted earnings per share. The options currently on issue could potentially dilute basic earnings per share in the future
Annual Report 2021
Page | 50
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
31.
SHARE-BASED PAYMENTS
a) Reconciliation of earnings used in calculating loss per share
The Company provides benefits to employees (including directors) and contractors of the Company in the form of share-based payment
transactions, whereby employees render services in exchange for options to acquire ordinary shares. The exercise price of the options
granted and on issue at 30 June 2021 range from 20 cents to 120.90 cents per option, with expiry dates ranging from 24 November 2021
to 4 November 2025.
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share of the Company
with full dividend and voting rights.
Fair value of options granted
The weighted average fair value of the options granted during the year was 57.8 cents (2020: 9.7 cents). The price was calculated by using
the Black-Scholes European Option Pricing Model applying the following inputs:
Weighted average exercise price (cents)
Weighted average life of the option (years)
Weighted average underlying share price (cents)
Expected share price volatility
Risk free interest rate
2021
$
120.90
3.6
88.50
89.5%
0.26%
2020
$
29.1
4.7
24.8
50.0%
0.6%
Historical volatility has been used as the basis for determining expected share price volatility as it assumed that this is indicative of future
trends, which may not eventuate.
Set out below is a summary of the share-based payment options granted:
Outstanding at the beginning of the year
Granted
Forfeited
Exercised
Expired
Outstanding at year-end
Exercisable at year-end
2021
2021
2020
2020
Number of
options
15,350,000
3,000,000
-
(4,950,000)
-
13,400,000
13,400,000
Weighted
average
exercise price
cents
28.8
95.3
-
31.6
-
42.6
42.6
Number of
options
14,750,000
3,750,000
-
(125,000)
(3,025,000)
15,350,000
15,350,000
Weighted
average
exercise price
cents
27.3
29.1
-
21.5
22.1
28.8
28.8
The weighted average remaining contractual life of share options outstanding at the end of the financial year was 2.7 years (2020: 2.4
years), and the exercise prices range from 20 cents to 120.90 cents.
b) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period were as follows:
2021
$
2020
$
Options granted to employees and contractors expensed to profit or loss
2,105,900
291,831
Annual Report 2021
Page | 51
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
32.
PARENT ENTITY INFORMATION
The following information relates to the parent entity, Element 25 Limited, at 30 June 2021. The information presented here has been
prepared using accounting policies consistent with those presented in note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss for the year
2021
$
44,364,919
24,592,310
68,957,229
5,707,317
781,437
6,488,754
2020
$
8,169,154
6,868
8,176,022
1,330,880
808
1,331,688
76,416,557
5,874,424
16,403,737
4,140,524
(19,822,506)
(13,699,927)
62,468,475
6,844,334
(6,122,579)
(6,122,579)
(1,801,027)
(1,801,027)
Annual Report 2021
Page | 52
Directors Declaration
In the directors’ opinion:
(a)
the financial statements and notes set out on pages 25 to 52 are in accordance with the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the
financial year ended on that date;
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;
and
a statement that the attached financial statements are in compliance with International Financial Reporting Standards has been
included in the notes to the financial statements.
(b)
(c)
The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
-----------------------------------------
Justin Brown
Managing Director
Perth, 30 September 2021
Annual Report 2021
Page | 53
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEMENT 25 LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Element 25 Limited (“the Company”) and its controlled entities
(“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 on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the 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 these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this 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.
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.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEMENT 25 LIMITED (continued)
Key Audit Matter – Property, Plant and
Equipment (“PPE”)
The carrying value of the Group’s PPE amounted
to $22.4 million as at 30 June 2021, almost
entirely added during the second half of the year.
The existence and valuation of PPE was identified
as a key audit matter due to the significance of
this balance to the financial statements.
Key Audit Matter – Recoverable Value of
Inventory
The Company’s inventory amounted to $5.4
million as at 30 June 2021. The Group is required
to carry its inventory of the lower of cost or net
realisable value in accordance with AASB 102
Inventories. The Group’s accounting policy is
disclosed in Note 1(l).
This is a key audit matter due to the materiality
of inventory in the Statement of Financial
Position, and the significant level of estimation
involved in applying the lower of cost and net
realisable value measurement methodology.
How our Audit Addressed the Key Audit Matter
Our procedures included but were not limited to:
We ascertained the existence of a sample of PPE
items by sighting during the visit to the
production site of the Group;
We selected a sample of costs capitalised as PPE
and agreed the balance to supporting
documentation;
We confirmed that classification of the PPE
items is in line with AASB 116 Property, Plant
and Equipment; and
We assessed the adequacy of the related disclosure in
the financial statements.
How our Audit Addressed the Key Audit Matter
Our procedures included but were not limited to:
We ascertained the existence of inventory
during the visit to the production site of the
Group;
We assessed the Group’s inventory valuation
methodology for compliance with the
requirements of the Australian Accounting
Standards;
We selected a sample of costs capitalised as
inventory and agreed the balances to supporting
documentation;
We reviewed the accuracy of the inventory
valuation model and inputs against the third
party documentation;
We assessed whether the recorded cost was at
the lower of cost and net realisable value; and
We assessed the adequacy of the related disclosure in
the financial statements.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEMENT 25 LIMITED (continued)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEMENT 25 LIMITED (continued)
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe those matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2021.
In our opinion the remuneration report of Element 25 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.
Rothsay Auditing
Dated 30 September 2021
Daniel Dalla
Partner
ASX Additional Information
Additional information required by Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows. The information
is current as at 17 September 2021.
a) Distribution of equity securities
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
The number of equity security holders holding less than
a marketable parcel of securities are:
b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
RANGUTA LIMITED
ARADIA VENTURES PTY LTD
ALPHA BOXER LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
DUKETON MINING LIMITED
BNP PARIBAS NOMINEES PTY LTD
SINO WEST ASSETS PTY LTD
MR PAUL HARTLEY WATTS
MR JACOBUS GERARDUS DE JONG
CS FOURTH NOMINEES PTY LIMITED
CITICORP NOMINEES PTY LIMITED
DUKETON CONSOLIDATED PTY LTD
DANE PASTORAL COMPANY PTY LIMITED
AUSTRADE HOLDINGS PTY LTD
METZ CORPORATION
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
KAPT ENTERPRISES PTY LTD
MR PHILLIP RICHARD PERRY
MR SEAMUS IAN CORNELIUS
Ordinary shares
Number of holders
873
1,162
436
794
177
3,442
Number of shares
471,208
3,217,722
3,503,599
24,355,755
117,242,085
148,790,369
131
14,054
Listed ordinary shares
Number of shares
13,219,874
7,165,440
5,598,215
5,354,006
4,356,540
4,177,974
3,080,339
2,709,629
2,600,000
2,411,808
2,109,762
2,037,285
2,032,024
1,925,475
1,800,000
1,736,596
1,528,702
1,419,063
1,400,000
1,382,733
68,045,465
Percentage of
ordinary shares
8.88
4.82
3.76
3.60
2.93
2.81
2.07
1.82
1.75
1.62
1.42
1.37
1.37
1.29
1.21
1.17
1.03
0.95
0.94
0.93
45.75
Annual Report 2021
Page | 58
ASX Additional Information
c)
Substantial shareholders
There were no substantial shareholders at 30 June 2021 who have notified the Company in accordance with section 671B of the
Corporations Act 2001.
d) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
e) Schedule of interests in mining tenements as at 17 September 2021
Tenement Reference
E09/2415
E20/659
E28/2577
E28/2761
E46/1366
E52/1529
E52/2350
E52/3606
E52/3706
E52/3735
E52/3738
E52/3769
E52/3779
E52/3789
E52/3840
E52/3858
E52/3947
E52/3973
L52/211
L52/215
L52/216
L52/217
L52/218
L52/220
L52/221
L52/225
M52/1074
E57/1060
E63/2027
E80/5056
Location
Percentage held / earning
Isle Bore WA
Eelya Hill WA
Pinnacles WA
Flanker South WA
Black Hill WA
Mt Padbury WA
Butcher Bird WA
Yanneri Bore WA
Yanneri Pool WA
Limestone Bore WA
Mt Padbury WA
Kumarina WA
Beyondie Bluff WA
Coner Bore WA
Woolgatharra Pool WA
Yanneri Well WA
Weelarrana WA
Neds Gap
Limestone Bore WA
Butcherbird East 1 WA
Butcherbird East 2 WA
Butcherbird East 3 WA
Butcherbird East 4 WA
Butcherbird East 5 WA
Butcherbird East 6 WA
Butcherbird East 7 WA
Yaneri Ridge WA
Victory Well WA
Lake Johnston WA
Eileen Bore WA
100%
10%
100%
100%
100%
100% (Note 1)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
20%
100%
100%
(1) 100% interest held in all minerals other than iron ore and manganese.
Annual Report 2021
Page | 59
ASX Additional Information
f) Unquoted Securities
At 17 September 2021, the Company had the following unlisted securities on issue:
Name
Arcadia Ventures Pty Ltd
Mr John George Ribbons
Mrs Antoinette Janet Ribbons
Mr Seamus Cornelius
Mr Liam Cornelius
Pato Negro Pty Ltd
Duketon Consolidated Pty Ltd
Kumarina Holdings Pty Ltd
Holders < 20%
Name
Arcadia Ventures Pty Ltd
Mr John George Ribbons
Mr Seamus Cornelius
Mrs Andrea Gertrud Graham
Zoetmelksvlei (Pty) Ltd
Karlka Nyiyaparlia Aboriginal
Corporation RNTBC
Holders < 20%
Unlisted options
exercisable at
$0.261 expiring
28/11/23
Unlisted options
exercisable at
$0.20 expiring
24/11/21
Unlisted options
exercisable at
$0.325 expiring
3/11/22
Unlisted options
exercisable at
$0.355 expiring
28/11/22
Unlisted options
exercisable at
$0.26 expiring
22/02/24
1,000,000
500,000
-
500,000
-
-
-
-
-
2,000,000
1,000,000
-
500,000
500,000
-
-
-
-
-
2,000,000
-
-
-
-
300,000
200,000
-
-
100,000
600,000
600,000
-
300,000
300,000
-
-
-
-
-
1,200,000
-
-
-
-
-
-
1,000,000
500,000
100,000
1,600,000
Unlisted options
exercisable at
$0.273 expiring
20/11/24
Unlisted options
exercisable at
$0.20 expiring
1/4/25
Unlisted options
exercisable at
$0.50 expiring
25/6/25
Unlisted options
exercisable at
$1.209 expiring
4/11/25
Unlisted options
exercisable at
$0.44 expiring
13/7/25
1,000,000
500,000
500,000
-
-
-
-
2,000,000
-
-
-
500,000
-
-
-
500,000
-
-
-
-
500,000
-
-
500,000
500,000
-
-
-
-
-
1,500,000
2,000,000
-
-
-
-
-
1,000,000
-
1,000,000
Annual Report 2021
Page | 60