Fellow shareholders,
Elevate Uranium had another strong and very active year.
Our strategic investment in an outstanding portfolio of uranium resources, exploration ground and new discoveries, in two of the
ue and opportunity.
In summary, over the course of the year:
3O8;
Two new uranium mineralisation discoveries were made from maiden drilling programs in Namibia;
Two new large paleochannel system discoveries were made from extensive airborne geophysics flown in Namibia; and
A significant new exploration target was established at Oobagooma in Australia.
This exploration success will be actively followed-up in the coming year. Your board is excited at the prospects of what these
programs may generate and looks forward to updating you as they progress.
closed the year with $15.8M of cash at bank.
rket capitalisation provided the platform for an $11.5M equity raising in November 2021, and the Company
With new funding in hand, the exploration impetus accelerated, delivering notable results over the course of the year. These
included:
In July 2021 the key findings from an extensive airborne EM program in the Namib area were announced, identifying
expansive palaeochannel systems covering approximately 347km2, with a total channel length of 280 kilometres.
In August 2021 a new discovery from a maiden scout drilling program at Namib IV was announced, showing
mineralisation over 17 kilometres. This was the third successive tenement drilled in the Namib Area which was found to
contain extensive uranium mineralisation.
to 52 million pounds U3O8, with a grade range of 650 to 950 ppm U3O8.
In January 2022 results of a resource definition drilling program at Koppies was announced, confirming the continuity of
shallow, calcrete hosted uranium mineralisation.
In March 2022 Elevate announced a further discovery, with an airborne EM geophysical survey finding 73 kilometres of
palaeochannel at Capri, which also featured coincident radiometric anomalies, considered to be prospective for calcrete-
hosted uranium.
3O8, was announced,
incorporating an initial JORC Inferred Mineral Resource estimate of 20.3 million pounds of eU3O8 for Koppies.
Significantly, the potential to extend this mineralisation was noted, beneath and adjacent to the initial resource envelopes;
and
In June 2022, further exploration results from Hirabeb were announced, from an initial wide spaced drilling program. Two
large zones of significant uranium mineralisation were confirmed extending over 4 kilometres at Hirabeb 1 and 9
kilometres at Hirabeb 2. These zones remain open to extension, along strike to the northeast and southwest.
It is great to see these results at an exciting time in the uranium market, where your Company has received sustained backing
and recognition. The market is recognising and re-rating the sector, reflecting a number of fundamentals, including (i) primary
uranium supply is falling further behind underlying demand, (ii) governments globally are increasing their commitments to reduced
carbon emissions whilst at the same time increasing energy demand, and (iii) the war in Europe and its flow on effects are driving
an imperative for significant freely available sources of reliable base load power.
Whilst the uranium price has improved over the past year, the factors mentioned above and others such as the quoted production
costs of pre-production uranium projects and recent global supply chain inflation, suggest there may be more re-rating of the
uranium sector to come.
In closing, my thanks again to your Managing Director Murray Hill and CFO Shane McBride for their continued leadership and
passion in taking Elevate Uranium forward. My thanks also to the rest of the Elevate team for their concerted efforts to safely
drive forward our collective vision, to a compelling reality.
further successes over the coming year.
Yours faithfully
Andrew Bantock
Chairman
4
2022 Annual Report
Review of Operations
OVERVIEW
The Company
estimating an initial JORC resource at the Koppies Uranium Project. Exploration programs are on-going on the
working consistently through the year.
primary projects in Namibia are the Koppies, Hirabeb, Marenica and Namib IV uranium projects,
T
which are included in 10 active tenements, containing mineral resources of 81.6 Mlb U3O8 conforming to JORC codes.
uranium project areas, as well as the Bigrlyi, Malawiri, Walbiri and Areva joint ventures.
JORC mineral resources across these Australian assets total 48.4 Mlb U3O8, including 30.8 Mlb U3O8 at the Angela
deposit.
See Error! Reference source not found. for the JORC code designation of the individual mineral resources.
The Company developed and 100% owns the U-pgradeTM beneficiation process, which is potentially an industry
leading and economically transformational beneficiation process for upgrading surficial uranium ores. The process
is applicable to surficial palaeochannel style uranium mineralisation and recent testwork has also identified the
potential to reduce operating costs of other mineralisation styles due to its applicability to the sandstone hosted
Angela deposit.
NAMIBIAN URANIUM PROJECTS
The Erongo region of Namibia contains the fourth highest aggregate of uranium mineral resources of any region in
the world and has a long history of uranium discovery and production. The Rossing Uranium Mine commenced
operation in 1976 and has been operating continuously for 46 years in the Erongo.
Elevate Uranium has two large uranium project areas in the Erongo Region:
Namib Area, and
Central Erongo Area.
Elevate Uranium holds ten active tenements in the Erongo Region of Namibia, with a further seven tenements under
application (Figure 1).
Koppies Project (EPL 6987) Namibia
On 4 May 2022, the Company announced a maiden mineral resource estimate for the Koppies Uranium Project in
resource estimate.
Table 1 Koppies JORC (2012) Inferred Mineral Resource Estimate at 100 ppm Cut-off Grade
Total
Mt
41.4
eU3O8 (ppm)
220
Mlb
20.3
The Company estimated a JORC (2012) mineral resource in the first period of tenure of this tenement, which is
This 20.3 Mlb eU3O8 mineral resource for the p
resources to 114.7 Mlb. (See Table 5 Uranium Mineral Resources).
JORC compliant uranium mineral
5
2022 Annual Report
Review of Operations
Figure 1
6
2022 Annual Report
Review of Operations
Refinement of the Exploration Strategy
has historically targeted uranium mineralisation contained within historical river
systems, called palaeochannels, in which calcrete hosted uranium mineralisation is considered likely to occur. This
U-pgradeTM uranium beneficiation
process.
The palaeochannel deposits are referred to as surficial deposits due to their close proximity to the surface, as they
generally occur no deeper than 30 metres. This style of uranium mineralisation is also known as secondary uranium
mineralisation, as the uranium has been relocated from its primary source and reprecipitated within the
palaeochannels.
The palaeochannels have no obvious surface expression nor do they emit sufficient radiation to detect at surface.
Gro
palaeochannels are then systematically drilled to confirm the interpretation of EM data and to measure mineralisation
within them. Drill holes have generally been terminated after drilling 2 m into unmineralised basement rocks at the
base of the palaeochannels or when unmineralised basement rocks were intersected immediately below the surface.
As drilling at Koppies progressed, it became apparent that more and more holes in basement rocks contained
significant mineralisation. For this reason, some holes in the March/April 2022 drilling program were deepened and
drilling extended beyond the boundaries of the palaeochannels. This change in approach lead to the discovery of a
significant zone of uranium mineralisation centred 1.6 kilometres east of Koppies 1 (see Figure 2) which currently
extends over 1 kilometre in a SW-NE direction and is 400 metres wide. This zone is open to the SW and to the NE
and is between 2 and 16 metres deep. The most exciting aspect of this area is the fact that the uranium is hosted
outside of palaeochannels, which makes this deposit unusual in the Erongo
district.
This new basement-hosted discovery was not included in the Koppies Mineral Resource Estimate of 20.3 Mlb eU3O8,
referred to above, as further drilling is required to define its extent. Additional mineralisation may also be present
beneath the currently defined palaeochannels, requiring additional holes nominally down to 25 metres deep.
The recognition of this new type of target is significant as it cannot be detected by EM surveys and requires a different
exploration approach. The geological team is currently trialling alternative targeting techniques, reviewing exploration
results and planning future exploration programs, including deeper drilling (25 metre deep holes) to delineate
additional mineralised areas around both the current resource and the new discovery.
Figure 2 shows the drilling completed to 30 June 2022, the outline of the resource and the new discovery (in the
centre of Figure 2) which appears to be widening to the northeast. The holes drilled to the north and east of the new
discovery are mostly 2 metres deep, but as discussed above, there is potential for mineralisation below 2 metres. All
future holes will be drilled to a minimum depth of 25 metres, deeper than the expected depth of mineralisation evident
from the initial drilling in this area.
Figure 5.
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Figure 2 Koppies Resource Outline and New Basement Hosted Discovery (Centred)
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2022 Annual Report
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Typical cross sections through the Koppies 1 and 2 palaeochannel systems are shown in Figure 3 and Figure 4,
respectively.
Figure 3 Koppies 1 section 527800mE
Figure 4 Koppies 2 section 528000mE
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2022 Annual Report
Review of Operations
U-
on Basement Hosted Ore
The Company has previously completed metallurgical testwork on uranium mineralisation within basement ore from
the Marenica Uranium Project during development of the U-pgradeTM beneficiation process and confirmed the
applicability of U-pgradeTM on the basement mineralisation from that project. On this basis the Company expects
U-pgradeTM
U-pgradeTM beneficiation process
has been shown to concentrate uranium ore by a factor of 50 and has the potential to reduce operating and capital
costs by around 50% compared to conventional processing.
Figure 5 Location of the Koppies Project
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2022 Annual Report
Review of Operations
Capri Project (EPL 7508) Namibia
During June 2022, a drilling program of 280 holes for 7,000 metres was commenced at EPL7508 (named Capri) in
the Central Erongo Area, Namibia (Figure 7). This drilling is being undertaken to follow up the airborne
ilometres of prospective palaeochannels. See
electromagnetic
Palaeochannels
=
Airborne Survey at Capri
The EM and radiometric data airborne survey completed in March 2022 covered the northern portion of the tenement
and is complementary with an older frequency domain DIGHEM electromagnetic survey flown over the southern
portion of the tenement in 1997. These two surveys have been interpreted to infer the palaeochannels shown in
Figure 6.
The combined EM surveys have identified palaeochannels in a geological location
uranium mineralisation, similar to that at the Marenica Uranium Project, located only 20 kilometres to the southeast
(Figure 7), on which the Company developed its U-pgradeTM beneficiation process.
-
The palaeochannels in the northwest of the tenement extend for at least 48 kilometres. Of particular significance is
the presence of a 10 x 5 kilometre area of anomalous radiometric uranium response coincident with, or immediately
adjacent to, an inferred palaeochannel. This is significant as it could indicate shallow mineralisation.
The palaeochannel in the southeast of the tenement is much broader (up to 7 to 10 kilometres wide) and coincident
with the current ephemeral drainage. Approximately 25 kilometres of this palaeochannel occurs within Capri.
Figure 6
Inferred palaeochannels with respect to airborne radiometric (U channel) anomalies in Capri
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2022 Annual Report
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Figure 7 Location of the Capri Project
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2022 Annual Report
Review of Operations
Hirabeb Project (EPL 7278) Namibia
Exploration activities at EPL7278 (named Hirabeb) in the Namib Area of Namibia, have delineated two large zones
of significant uranium mineralisation. These discoveries have been named Hirabeb I and Hirabeb II, both of which
cover extensive areas. Drilling undertaken to date is widely spaced with most holes 200 metres apart on drill lines
500 metres apart. The results are encouraging and follow up drill programs are being planned for later in the year to
reduce the line spacing and confirm the extent of mineralised areas greater than 100 ppm eU3O8.
Mineralisation at Hirabeb I currently extends over 4 kilometres along strike and is up to 800 metres wide, with uranium
results exceeding 100 ppm eU3O8 varying in thickness from 3 to 7 metres on section 537500mE (Figure 9 and Figure
10).
At Hirabeb II, anomalous uranium (>50 ppm eU3O8) is continuous over 9 kilometres of the palaeochannel and remains
open in several directions (Figure 8). Grades in excess of 100 ppm eU3O8 have so far been intersected in four areas
within this anomalous zone and further exploration drilling is planned to establish continuity between these areas.
Figure 8 Hirabeb I and II Prospects
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Figure 9 Grade thickness plot Hirabeb I
Figure 10 Hirabeb I Section 537500mE (for location see Figure 9)
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2022 Annual Report
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Figure 11 Location of the Hirabeb Project
Namib IV Project (EPL 7662) Namibia
An exploration drilling program was completed to physically confirm the location of palaeochannels and associated
uranium mineralisation within the tenement using widely spaced reconnaissance-style drilling. The program was
successful in that it identified an extensive palaeochannel system that is mineralised over the majority of its length.
Uranium mineralisation was intersected over a distance of 17 kilometres. Drilling results from the most recent Namib
IV exploration program were announced to the ASX on 10 August 2021.
Figure 12 Detailed Location of Drill Holes and HLEM Identified Palaeochannels shows the location of the drill
holes within the palaeochannels identified by HLEM.
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2022 Annual Report
Review of Operations
Figure 12 Detailed Location of Drill Holes and HLEM Identified Palaeochannels
Marenica Uranium Project Resource
The Marenica Uranium Project has a JORC (2004) mineral resource of 61.3 Mlb of U3O8. The Marenica Uranium
Project includes the Marenica mineral resource and the smaller MA7 mineral resource 5 kilometres to the southeast
of the main mineral resource. Both are calcrete hosted uranium mineral resources, located in the same
mineral resource, which has similar mineralogical
characteristics to the Marenica Uranium Project.
The Marenica Uranium Project has a Mineral Resource of 61.3 Mlb at 93 ppm U3O8 at a 50 ppm cut-off grade.
Elevate Uranium owns 75% of this project.
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2022 Annual Report
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AUSTRALIAN URANIUM PROJECTS
In Australia, the Company owns the 100% owned Angela, Thatcher Soak, Oobagooma and Minerva project areas
and joint venture holdings in the Bigrlyi, Malawiri, Walbiri and Areva joint ventures. These project areas comprise
48.4 Mlb U3O8 of high-grade mineral resources.
The project locations are shown in Figure 13
JORC resources listed in Table 5 Uranium Mineral Resources .
in Australia and the
Figure 13
in Australia
Angela Project (100%) Australia
The Angela Uranium Project is located approximately 25 km south of Alice Springs in the Northern Territory and the
tenement straddles the Old South Road and the Central Australian Railway. The updated Angela Mineral Resource
was announced to the ASX on 11 November 2020.
Table 2 Angela JORC (2012) Inferred Mineral Resource Estimate at 300 ppm Cut-off Grade
Total
Mt
10.7
U3O8 (ppm)
1,310
Mlb
30.8
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2022 Annual Report
Review of Operations
U-
- Reduction in Acid Consumption
Historically, high acid consumption and its contribution to the estimated high operating cost of the project, has been
a serious impediment to potential development of the Angela project. Last year the Company finalised a proof-of-
concept metallurgical testwork program on a drill core sample to analyse the potential to reduce acid consumption
U-pgradeTM
and thereby, the project operating costs, through application of U-pgradeTM
The removal of the bulk of the acid consumer, calcite, was achieved. Leach testwork results summarised in Table
3, show the removal of calcite reduced acid consumption from 104 kg/t to 24 kg/t, i.e. a difference of 80 kg/t. At the
time of the testwork, the estimated delivered cost of sulphuric acid to Angela was assumed, based on indicative
quotes obtained for these calculations, to be A$400/t or $0.40/kg.
Table 3 Pre and Post Calcite Removal Leach Result Summary
Sample
Pre calcite removal - feed
Post calcite removal
Nett Difference
Mass
(%)
100
91
Acid
Consumption
(kg/t of feed)
U3O8 Extraction
from Sample
(%)
104
24
80
93.0
95.8
2.8
This proof-of-concept testwork program concluded that:
removal of the bulk of the acid consuming calcite mineral could be achieved with minimal uranium losses,
uranium extraction in the leach could be increased by removal of calcite, and
the calcite reject could be used to render the leach tailings inert, providing significant potential environmental
benefits for the project.
These results were achieved from a limited proof of concept testwork program. The Company is encouraged by the
potential to further increase calcite removal and reduce uranium losses.
There is also a potential significant environmental benefit from removal of the calcite, as the calcite stream could be
used to neutralise acid in the leach tailings prior to disposal. This would potentially render the leach residue inert
with all acid being destroyed and soluble metals precipitated. This consequential benefit is a significant potential
environmental result that will be assessed in future testwork programs and study phases.
Other benefits which may result from using U-
reduced leach circuit volume, which could potentially contribute to reduced capital and operating costs.
include a reduction in the size of the acid storage facility and
18
2022 Annual Report
Review of Operations
Figure 14 Angela Location
Oobagooma Project (100%) Australia
An Exploration Target of 26 to 52 million pounds U3O8 with a grade range of 650 to 950 ppm U3O8, has been estimated
for the
-
of the Exploration Target is conceptual in nature, as there has been insufficient exploration to estimate a Mineral
Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Table 4 Oobagooma Exploration Target
Oobagooma Project
Exploration Target
Million Pounds
of U3O8
Grade of U3O8
(ppm)
Total
26 to 52
650 to 950
The Exploration Target was estimated after a detailed review of extensive historical exploration data from
Oobagooma. The data review identified 123 drill holes with uranium mineralisation, 47 of which include drill
intersections with sample grades in excess of 1,000 ppm or 0.1% U3O8, out of a total of 373 holes. The results
identified uranium mineralisation over a distance of 9 kilometres, with the main mineralised zone identified over 4
kilometres.
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2022 Annual Report
Review of Operations
Significant historical drill hole intersections include:
CAN-S-237 2.2 m at 3,581 ppm eU3O8 from 47.5 m and
2.7 m at 2,046 ppm eU3O8 from 67.8 m
YAM-005
2.8 m at 2,352 ppm eU3O8 from 46.6 m
YAM-140
1.65 m at 3,775 ppm eU3O8 from 53.15 m
YAM-069
1.5 m at 2,822 ppm eU3O8 from 62.25 m
YAM-110
1.75 m at 2,552 ppm eU3O8 from 48.05 m
2.45 m at 1,870 ppm eU3O8 from 70.65 m
Geological modelling has interpreted at least four prospective roll fronts extending in total for at least 9 kilometres of
strike. The project has not been drilled since 1983 and therefore, modern day exploration techniques have not yet
been used on the project.
Oobagooma is a sandstone-hosted uranium deposit discovered by Afmeco in 1981. It is located 75 kilometres
northeast of the town of Derby in the Kimberley Region of Western Australia (Figure 15).
The project consists of a single exploration licence E04/2297, on freehold land owned by the Commonwealth of
Australia and used by the Department of Defence as a military training area (Yampi Sound Defence Training Area;
Figure 15). Native title rights have been extinguished within the Training Area. Excluded from the original tenement
application area are small areas that fall within the Harbour Purposes Reserve 51146 (effectively the high tide limit),
Figure 15 Location of the Oobagooma Uranium Project
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2022 Annual Report
Review of Operations
U-PGRADETM BENEFICIATION PROCESS
U-pgradeTM is potentially an industry leading and economically transformational beneficiation process for upgrading
surficial uranium ores.
subsequently, testwork has been undertaken on ore samples from a number of other sources.
In summary, the Company has demonstrated on Marenica Uranium Project ore samples, in bench scale testwork,
that the U-pgradeTM beneficiation process;
Concentrates the uranium by a factor of 50
Increases ore grade from 93 ppm to ~5,000 ppm U3O8
Rejects ~98% of the mass prior to leaching
Produces a high-grade concentrate in a low mass of ~2% (leach feed)
Rejects acid consumers
Potentially reduces capital and operating costs by ~50% compared to conventional processing.
Beyond application at the Marenica Uranium Project, the Company has determined, through bench scale testing,
that calcrete hosted uranium deposits in Namibia and Australia are amongst those that are amenable to the
U-pgradeTM process.
Last year the Company finalised a successful proof of concept testwork program using the U-
process on
an ore sample from the Angela project, which indicated a reduction in leach acid consumption in the processing of
Angela ore from 104 kg/t without the benefit of U-pgradeTM, to 24 kg/t with U-
(i.e. a difference of 80 kg/t),
thereby indicating a substantial reduction in operating costs.
An important element of these tests, aside from their obvious success, is that the Angela deposit is sandstone hosted,
rather than the calcrete hosted mineralisation on which U-
was initially developed. These results highlight
the broader application of U-pgradeTM to ore types outside of the primary application of calcrete hosted ore sources.
The Company will continue to test the boundaries of the U-
process in the future.
21
2022 Annual Report
Review of Operations
MINERAL RESOURCES
review, as and when required. At the end of each financial year, the Company formally reviews the reported
resources.
Table 5 Uranium Mineral Resources
Koppies Uranium Project:
The Company confirms that the Mineral Resource Estimates for the Koppies 1 and Koppies 2 deposits have not changed since the ASX Release
information in that ASX Release and confirms that all material assumptions and technical parameters underpinning the estimates continue to
apply and have not materially changed.
Marenica Uranium Project:
The Company confirms that the Mineral Resource Estimates for the Marenica and MA7 deposits have not changed since the annual review
disclosed in the 2021 Annual Report. The Company is not aware of any new information, or data, that effects the information in the 2021 Annual
Report and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially
changed. The Mineral Resource Estimates for the Marenica and MA7 deposits were prepared in accordance with the requirements of the JORC
22
2022 Annual Report
Review of Operations
Code 2004. They have not been updated since to comply with the 2012 Edition of the Australian Code for the Reporting of Exploration Results,
hat the information has not materially changed since they were last
reported. A Competent Person has not undertaken sufficient work to classify the estimate of the Mineral Resource in accordance with the JORC
Code 2012; it is possible that following evaluation and/or further exploration work the currently reported estimate may materially change and hence
will need to be reported afresh under and in accordance with the JORC Code 2012.
Australian Uranium Projects:
The Company confirms that the Mineral Resource Estimates for Angela, Thatcher Soak, Bigrlyi, Sundberg, Hill One, Karins, Walbiri and Malawiri
have not changed since the annual review disclosed in the 2021 Annual Report. The Company is not aware of any new information, or data, that
effects the information in the 2021 Annual Report and confirms that all material assumptions and technical parameters underpinning the estimates
continue to apply and have not materially changed. The Mineral Resource Estimate for the Bigrlyi deposit was prepared in accordance with the
requirements of the JORC Code 2004. The Mineral Resource Estimate was prepared and first disclosed under the 2004 Edition of the Australian
). It has not been updated since to
comply with the 2012 Edition of the Australian Code for the Reporting of Exploration Results, Minerals Resources and Ore Rese
was last reported. A Competent Person has not undertaken
sufficient work to classify the estimate of the Mineral Resource in accordance with the JORC Code 2012; it is possible that following evaluation
and/or further exploration work the currently reported estimate may materially change and hence will need to be reported afresh under and in
accordance with the JORC Code 2012.
The Competent Person that completed the most recent JORC Mineral Resource estimate for each project is
listed as follows.
Resource
Competent Person
Employer
Koppies
Angela
Mr David Princep
Mr David Princep
Consultant to Elevate Uranium
Consultant to Elevate Uranium
Thatcher Soak
Mr Peter Gleeson
SRK Consulting
Bigrlyi
Mr Arnold van der Heyden
Helman & Schofield Pty Ltd
Sundberg / Hill One
Mr Dimitry Pertel and Dr Maxim Seredkin
CSA Global Ltd
Karins
Walbiri
Malawiri
Marenica
MA7
Mr Dimitry Pertel and Dr Maxim Seredkin
CSA Global Ltd
Mr Dimitry Pertel and Dr Maxim Seredkin
CSA Global Ltd
Dr Maxim Seredkin
Mr Ian Glacken
Mr Ian Glacken
CSA Global Ltd
Optiro Pty Ltd
Optiro Pty Ltd
The information in this Annual Mineral Resource Statement is based on and fairly represents information prepared
by the competent persons listed above and the supporting documentation has been reviewed by Mr David Princep
B.Sc P.Geo FAusIMM (CP) who is an independent consultant to the Company and who is a Fellow of the AusIMM.
Mr Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking to qualify as Competent Person as defined in the 2012 Edition
approves this ore resource statement as a whole and consents to the inclusion of this information in the form and
context in which it appears.
Governance and Internal Controls
The Company maintains thorough QA/QC protocols for conducting exploration, site practice, sampling, safety,
monitoring and rehabilitation.
Drilling methods vary according to the nature of the prospect under evaluation. These can include rotary air blast or
reverse circulation drilling for unconsolidated formations. Typically, resource estimations are based on a mix of
downhole radiometric sampling and chemical assays. Assay samples are collected over one metre intervals.
Radiometric data is acquired at 10 cm intervals and composited to one metre intervals. Where statistical validation
confirms radiometric and chemical assay equivalence, the resource estimate is primarily based on the radiometric
23
2022 Annual Report
Review of Operations
data.
Drill hole collars are DGPS-surveyed by in-house operators, after an initial pick-up by hand-held GPS. Downhole
radiometric surveys are outsourced to independent contractors.
Drill hole sample logging captures a suite of lithologic, alteration, mineralogic and hand-held radiometric data, at one
metre intervals. This data is captured as permanent hard copy prior to digital input onto an in-house database.
Drill plans and sections generated from drilling and surface mapping are used to constrain wireframe mineralisation
models; upon which resource estimations are made.
24
2022 Annual Report
FINANCIAL POSITION AND SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The Group has significantly improved its balance sheet position during the year, reporting net assets of $18,492,893
(2021: $9,526,815). Cash on hand at 30 June 2022 was $15,811,013 (2021: $6,660,602).
On 25 November 2021, the Company announced that it had received binding commitments for a placement to raise
$11.5 million (before costs) by issuing 25,555,556 shares at $0.45 per share, utilising its placement capacity under
The Placement was completed on 1 December 2021.
Other than the changes mentioned above, there were no significant changes in the state of affairs of the consolidated
entity during the financial year.
LIKELY DEVELOPMENTS AND BUSINESS STRATEGY
The Group intends to continue to explore and evaluate its mineral tenements and potentially apply its patented
U-
uranium beneficiation process to the development of those mineral tenements.
ENVIRONMENTAL REGULATIONS
The Group
of Namibia. The Group has complied with its environmental performance obligations. No environmental breaches
have been notified by any
SHARE OPTIONS
At the date of this report, the unissued ordinary shares of the Company under option are as follows:
Expiry Date
Exercise Price
Number under Option
30 June 2023
1 December 2023
16 December 2025
16 December 2025
28 August 2026
$0.10
$0.17
$0.61
$0.61
$0.70
2,368,422
7,600,000
3,000,000
1,200,000
400,000
The Options do not entitle the holder to participate in any share issue of the Company or any other body corporate.
During the financial year the Company issued 48,831,111 shares and since that date has issued no further shares.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has agreed to indemnify former and current directors and officers of the Company against all liabilities
to another person and the Company that may arise from their position as directors or officers of the Company and its
controlled entities, except where the liability arises out of conduct involving a wilful breach of duty. The agreement
stipulates that the Company will meet the full amount of such liabilities including costs and expenses.
During the year, the Company has paid insurance premium for a Directors and Officers insurance policy negotiated
at commercial terms. The terms of the insurance policies prevent the Company from disclosing the premium amount.
During or since the financial year-end, in respect of any person who is, or has been an officer or auditor of the
Company or of a related body corporate, the Company has not:
Indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer or
auditor, including costs and expenses in successfully defending legal proceedings; or
Paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer or
auditor for the costs or expenses to defend legal proceedings.
27
2022 Annual Report
DIRECTORS' MEETINGS
The number of meetings attended by each Director during the year is as follows:
Directors
Number of
meetings held
while in office
10
10
7
8
Number of
meetings
attended
10
10
7
8
Director
M Hill
A Bantock
N Chen
S Mann
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
2 is disclosed on the following page.
NON-AUDIT SERVICES
No non-
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
There have been no matters or circumstances that have arisen since the end of the financial year which significantly
affected or may significantly affect:
(i)
(ii)
the Group's operations in future years; or
the results of those operations in future years; or
(iii)
the Group's state of affairs in future years.
This remuneration report for the year ended 30 June 2022 outlines remuneration arrangements of the Company and
the Group in accordance with the requirements of the Corporations Act 2001 and its regulations (the Act). This
information has been audited as required by section 308(3C) of the Act.
28
2022 Annual Report
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Elevate Uranium Limited for the year ended 30 June 2022, 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 relation to Elevate Uranium Limited and the entities it controlled
during the year.
Rothsay Audit & Assurance Pty Ltd
Donovan Odendaal
Director
27 September 2022
Remuneration Report - Audited
The remuneration report details the remuneration arrangements for key management personnel ( KMP ) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Company and the Group, directly or indirectly, including any Director (whether executive or otherwise) of the
parent company, and including the executives in the Parent and the Group receiving the highest remuneration.
CEO ), executive Directors,
senior management and company secretaries of the Parent.
A.
Individual key management personnel disclosures
Details of KMP including the top five remunerated executives of the Parent and Group are set out below:
Key management personnel
(i) Directors
A Bantock
M Hill
N Chen
S Mann
(ii) Executives
S McBride
Non-executive chairman
Managing director and Chief Executive Officer
Non-executive director (Retired 16 December 2021)
Non-executive director (Appointed 15 July 2021)
Chief Financial Officer and Company Secretary
B.
Principles used to determine the nature and amount of remuneration
The objective of the Company's reward framework is to set aggregate remuneration at a level which provides the
Company with the ability to attract and retain directors and executives of the highest calibre whilst maintaining a cost
which is acceptable to shareholders.
Non-executive Directors
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of,
the Directors. Non-executive Directors' fees and payments are reviewed by the Board. The Chairman's fees are
determined independently to the fees of non-executive Directors based on comparative roles in the external market.
The Chairman is not present at any discussions relating to determination of his remuneration.
Directors' fees are determined within an aggregate Directors' fee pool limit, which is periodically recommended for
approval by shareholders. The maximum currently stands at $300,000 in aggregate. This amount is separate from
any specific tasks the Directors may take on for the Company in the normal course of business, which are charged
at normal commercial rates.
have previously been approved by shareholders.
performance and therefore, to the interests of shareholders.
Executive remuneration
The Company aims to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Company and so as to:
securities which
Reward executives for Company performance; and
Align the interests of Executives with those of shareholders; and
Ensure total remuneration is competitive by market standards.
Fixed remuneration is reviewed annually by the Board and the process consists of a review of Company and
individual performance, relevant comparative remuneration in the market and internal policies and practices.
Executives are given the opportunity to receive their fixed remuneration in a variety of forms, including cash and
fringe benefits. It is intended that the manner of payment chosen will be optimal for the recipient without creating
undue cost for the Company.
30
2022 Annual Report
Remuneration Report - Audited
The objective of variable remuneration provided is to reward executives in a manner which aligns this element of
remuneration with the creation of shareholder wealth. Variable remuneration may be delivered in the form of
securities granted with or without vesting conditions and/or securities granted subject to successful completion, within
an agreed timeframe, of various key tasks.
C.
Executive contractual arrangements
M Hill Managing Director and Chief Executive Officer
employment agreement are:
Base salary effective 1 July 2022 is $325,500 per annum (plus superannuation), reviewable on an annual
basis.
Payment of a termination benefit on early termination by the Company equal to six (6
for grave misconduct or long-term incapacity.
, other than
S McBride Chief Financial Officer and Company Secretary
remuneration is $298,375 per annum (plus superannuation), with a 2-month
Effective 1 July 2022, Mr
notice period by either party.
D. Remuneration of Key
30 June 2022
M Hill
A Bantock
N Chen
S Mann
Fees &
Consulting
Paid
301,259
Super-
annuation
Paid
30,125
Share-
based
Payments
413,810
55,000
22,500
43,125
6,000
2,250
4,313
73,961
-
73,961
Total
745,194
134,961
24,750
121,399
Total Directors
421,884
42,688
561,732
1,026,304
Other KMP
S McBride
Total Other KMP
Totals
30 June 2021
M Hill
A Bantock
N Chen
S Mann
275,000
275,000
696,884
27,500
27,500
70,188
262,887
262,887
565,387
565,387
824,619
1,591,691
Fees &
Consulting
Paid
260,000
Super-
annuation
Paid
24,700
Share-
based
Payments
62,075
54,795
41,096
-
5,205
3,904
-
16,446
16,446
-
Total
346,775
76,446
61,446
-
% of
Equity
Based
Payments
55.53%
55.01%
0%
60.92%
54.80%
46.50%
46.50%
51.82%
% of
Equity
Based
Payments
17.90%
21.51%
26.76%
-
Total Directors
355,891
33,809
94,967
484,667
19.59%
Other KMP
S McBride
Total Other KMP
Totals
182,648
182,648
538,539
17,352
17,352
51,161
32,894
32,894
127,861
232,894
232,894
717,561
14.12%
14.12%
17.82%
E.
Value of options issued, exercised and expired during the year
Details of vesting profile of options vested or expired during the year and those options unexercised at reporting date
granted as remuneration to current key management personnel of the Company are detailed below:
31
2022 Annual Report
Remuneration Report - Audited
Year ended 30 June 2022
During the 2022 financial year, the following options were exercised:
Expiry Date
Exercise Price
Number under Option
30 November 2021
$0.21
207,948
The following options were issued during the year:
Expiry Date
Exercise Price
Number under Option
16 December 2025
16 December 2025
$0.61
$0.61
3,000,000
1,200,000
These options were fair valued at $0.239 using the Black Scholes option pricing model.
Year ended 30 June 2021
During the 2021 financial year, the following options lapsed:
Expiry Date
Exercise Price
Number under Option
13 December 2020
$0.17
7,600,000
The following options were exercised during the year:
Expiry Date
Exercise Price
Number under Option
30 November 2021
$0.21
214,285
The following options were issued during the year:
Expiry Date
Exercise Price
Number under Option
-
-
-
F.
Shareholdings for Key Management Personnel
30 June 2022
Balance at
1 July 2021
Acquired
on
Exercise
of Option
Purchased
/
(Sold)
during
the year
Granted as
remuneration
Other
Changes
Balance at
30 June
2022
Directors
M Hill
N Chen1
A Bantock
S Mann
Other KMP:
S McBride
5,327,547
4,892,625
1,766,985
-
-
-
-
-
-
-
-
-
821,000
12,808,157
602,685
602,685
(218,685)
(218,685)
-
-
-
-
-
-
-
5,327,547
(4,892,625)
-
-
-
(4,892,625)
-
1,766,985
-
1,205,000
8,299,532
1.
Director N Chen retired as a Non-Executive Director on 16 December 2021.
32
2022 Annual Report
Remuneration Report - Audited
30 June 2021
Balance at
1 July 2020
Acquired
on
Exercise
of
Option
Purchased
/
(Sold)
during
the year
Granted as
remuneration
Other
Changes
Balance at
30 June
2021
Directors
M Hill
N Chen
A Bantock
S Mann
Other KMP:
S McBride
3,963,911
2,647,496
857,895
-
852,895
-
142,857
-
-
-
1,363,636
2,102,272
909,090
-
(31,895)
8,322,197
142,857
4,343,103
-
-
-
-
-
-
-
-
-
-
-
-
5,327,547
4,892,625
1,766,985
-
821,000
12,808,157
G. Option holdings for Key Management Personnel
30 June 2022
Balance at
1 July 2021
Exercised
Granted
Other
Changes
Balance at
30 June
2022
Total
Exercisable
Not
exercisable
Vested at 30 June 2022
Directors
M Hill
N Chen1
A Bantock
S Mann
Other KMP
S McBride
4,521,053
2,315,789
1,657,895
-
-
-
-
-
-
-
600,000
600,000
-
2,865,843
(602,685)
1,100,000
1,900,000
-
6,421,053
6,421,053
6,421,053
-
(2,315,789)
-
-
-
-
-
-
-
-
-
2,257,895
2,257,895
1,657,895
600,000
600,000
600,000
-
-
-
-
3,363,158
3,363,158
3,363,158
600,000
-
-
11,360,580
(602,685)
4,200,000
(2,315,789) 12,642,106
12,642,106
11,442,106
1,200,000
1.
2.
Director N Chen retired as a Non-Executive Director on 16 December 2021.
be required to pay $3,868,211, should they elect to exercise the
12,642,106 options detailed in this table.
30 June 2021
Balance at
1 July 2020
Exercised
Lapsed
Purchased
Balance at
30 June
2021
Vested at 30 June 2021
Total
Exercisable
Not
exercisable
Directors
M Hill
N Chen
A Bantock
S Mann
Other KMP
S McBride
7,200,000
-
(3,600,000)
921,053
4,521,053
4,521,053
4,521,053
2,142,857
(142,857)
(1,000,000)
1,315,789
2,315,789
2,315,789
2,315,789
2,000,000
-
4,207,948
-
-
-
(1,000,000)
657,895
1,657,895
1,657,895
1,657,895
-
-
-
-
-
(2,000,000)
657,895
2,865,843
2,865,843
2,865,843
15,550,805
(142,857)
(7,600,000)
3,552,632
11,360,580
11,360,580
11,360,580
-
-
-
-
-
-
The Company funded the exercise price for
.
142,857 Directors options, in accordance with the terms and conditions of those options.
33
2022 Annual Report
Remuneration Report - Audited
H. Performance Rights for Key Management Personnel
30 June 2022
Directors
M Hill
A Bantock
N Chen
S Mann
Other KMP
S McBride
30 June 2021
Directors
M Hill
A Bantock
N Chen
S Mann
Other KMP
S McBride
Balance at
1 July 2021
Lapsed
Vested
Balance at
30 June 2022
Total
Unvested
202,500
(202,500)
-
-
-
-
-
-
-
-
202,500
(202,500)
Balance at
1 July 2020
202,500
-
-
-
-
202,500
Issued
Vested
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at
30 June 2021
Total
Unvested
202,500
202,500
202,500
-
-
-
-
-
-
-
-
-
-
-
-
202,500
202,500
202,500
On 1 July 2016, the Company issued Mr Hill 675,000 performance rights with the following hurdles:
270,000 successful raising of capital for pilot plant construction and operation
202,500 successful completion of the initial pilot plant programme proving U-pgradeTM works on samples
tested
202,500
first commercialisation deal on U-pgradeTM
Any unvested performance rights will automatically vest on the occurrence of any of the following events:
the sale by Uranium Beneficiation Pty Ltd of the Intellectual Property comprising the U-pgradeTM process.
the sale by Elevate Uranium Limited of all of its shares in Uranium Beneficiation Pty Ltd.
A change of control in Elevate Uranium Limited by virtue of any person or entity obtaining a relevant interest
within the meaning of the Corporations Act in more than 50% of the voting shares in Elevate.
In the event of Mr Hill ceasing to be an employee of Elevate Uranium Ltd a or a subsidiary of Elevate, any unvested
performance rights will lapse unless the Board of Elevate otherwise determines, at its discretion, that all or any of the
unvested performance rights shall vest.
In any case, the performance rights lapse on 15 July 2021, if not vested.
On 15 July 2021, the 202,500 unvested performance rights lapsed.
34
2022 Annual Report
Remuneration Report - Audited
I.
Actual Cash Remuneration Paid to
The actual cash remuneration paid to key management personnel during the financial
is set out below. This
information is considered relevant as it provides shareholders with a view of the remuneration actually paid to a KMP
for performance in the year, excluding options where they were also granted.
For the KMP to receive actual value from options, the share price of the Company s shares traded on the Australian
Stock Exchange must be higher than the exercise price of a particular class of options on or after the day of exercise,
otherwise the KMP will receive no benefit from the option. Also, options have a limited life term, if an option is not
exercised and expires on its expiry date, the KMP will receive no benefit. By using this structure, the KMP is clearly
aligned with the interests of shareholders and for a rising share price.
The table below differs from the remuneration details prepared in accordance with statutory obligations and
accounting standards in Section D on Page 31 of this report, as those details include an accounting valuation of the
options using the Black and Scholes valuation method.
30 June 2022
M Hill
A Bantock
N Chen
S Mann
Total Directors
Other KMP
S McBride
Total executive KMP
Totals
Fees &
Consulting
Paid
Super-
annuation
Paid
Total
301,259
30,125
331,384
55,000
22,500
43,125
6,000
2,250
4,313
61,000
24,750
47,438
421,884
42,688
464,572
275,000
275,000
696,884
27,500
27,500
70,188
0
302,500
302,500
767,072
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
Andrew Bantock
Chairman
27 September 2022
35
2022 Annual Report
Notes to the Financial Statements
For the year ended 30 June 2022
1.
CORPORATE INFORMATION
The financial statements of Elevate Uranium Ltd
authorised for issue in accordance with a resolution of the Directors on 27 September 2022.
for the year ended 30 June 2022 were
Elevate Uranium Ltd is a company limited by shares incorporated in Australia whose shares are publicly traded
on the Australian Securities Exchange, OTC Best Markets and the Namibia Stock Exchange.
The nature of operations and principal activities of the Group, comprising Elevate Uranium Ltd and its
2.
STATEMENT 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.
(a)
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ( AASB ) and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply
with International Financial Reporting Standards as issued by the International Accounting Standards Board
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative
instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment
property.
Critical Accounting Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 3.
Functional and Presentation Currency
These consolidated financial statements are presente
40
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Elevate
Uranium Ltd
2 and the results of all subsidiaries for the year
then ended. Elevate Uranium Ltd and its subsidiaries together are referred to in these financial statements as
the Group.
Subsidiaries are all 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 financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using
consistent accounting policies. The effects of all intercompany transactions, balances and unrealised gains
on transactions between entities in the Group are eliminated in full.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without loss of control, is accounted for as an equity transaction, where the difference
between the consideration transferred and the book value of the share of the non-controlling interest acquired
is recognised directly in equity attributable to the parent entity.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit
or loss and other comprehensive income, statement of financial position and statement of changes in equity
of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that
results in a deficit balance.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill (if any), liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences recognised
in equity. The Group recognises the fair value of the consideration received and the fair value of any
investment retained together with any gain or loss in profit or loss.
(c)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed
in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are
classified as non-current.
A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there
is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(d)
Exploration expenses
Exploration and evaluation costs represent intangible assets. Exploration, evaluation and development costs
are expensed as incurred. Acquisition costs related to an area of interest are capitalised and carried forward
to the extent that they are expected to be recouped through the successful development of the area or where
activities in the area have not yet reached a stage which permits reasonable assessment of the existence of
economically recoverable reserves and active and significant operations in, or in relation to, the areas of
interest are continuing.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of
the mining permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on an undiscounted basis.
41
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs have been determined on the basis that the
restoration will be completed.
(e)
Cash and cash equivalents
Cash and cash equivalents include 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 an insignificant risk of changes in value.
(f)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any provision for impairment. Trade receivables are generally due for settlement
within 30 days.
Other receivables are recognised at amortised cost, less any provision for impairment
(g)
Plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight line basis so as to write off the net cost of each asset during their
expected useful life of 3 to 5 years.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to
the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or
loss.
(h)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs
incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred
for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
(i)
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the Group has transferred substantially all the risks and rewards of ownership. When there is no
reasonable expectation of recovering part or all of a financial asset its carrying value is written off.
Financial assets at fair value through profit and loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
42
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
(j)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental
borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur,
and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When
a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or
loss if the carrying amount of the right-of-use asset is fully written down.
(k)
Provisions and employee benefits
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past
event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the reporting date, taking into account the risks and uncertainties
surrounding the obligation. If the time value of money is material, provisions are discounted using a current
pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is
recognised as a finance cost.
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected
to be paid when the liabilities are settled.
43
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using
market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as
closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(l)
Share based payments
The Company provides benefits to Directors, employees, consultants and other advisors of the Company in
the form of share-based payments, whereby the directors, employees, consultants and other advisors render
services in exchange for shares or rights over shares (equity-settled transactions).
The cost of these equity-settled transactions is measured by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is independently determined using the Black-
Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the Group receives the services that entitle the employees to receive payment.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the market price of the shares of the Company, if applicable.
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity,
over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
the relevant recipient becomes fully entitled to the award (the vesting period).
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)
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. The income statement charge or credit
for a period represents the movement in cumulative expense recognised as at the beginning and end of that
period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum, an expense is recognised as if the terms
had not been modified. In addition, an expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the recipient, as measured at the
date of modification.
If 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, as described in the previous
paragraph.
(m) Earnings per share
Basic earnings per share is determined by dividing the profit (loss) after income tax attributable to equity
holders of the Company by the weighted average number of ordinary shares outstanding during the year.
44
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(n)
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interests. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the use
of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured
at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the
fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be
used when internal expertise is either not available or when the valuation is deemed to be significant. External
valuers are selected based on market knowledge and reputation. Where there is a significant change in fair
value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification
of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources
of data.
(o)
Impairment of non-financial assets
Non-financial 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.
(p)
Trade and Other Payables
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future
payments resulting from the purchase of goods and services.
(q)
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
(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.
45
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(s)
Revenue recognition
The Group recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the
Group: identifies the contract with a customer; identifies the performance obligations in the contract;
determines the transaction price which takes into account estimates of variable consideration and the time
value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when
or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the
goods or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such
as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue
will only be recognised to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty
associated with the variable consideration is subsequently resolved. Amounts received that are subject to the
constraining principle are recognised as a refund liability.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on
either a fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Grants
Grant revenue is recognised in profit or loss when the Group satisfies the performance obligations stated within
the funding agreements. If conditions are attached to the grant which must be satisfied before the company
is eligible to retain the contribution, the grant will be recognised in the statement of financial position as a
liability until those conditions are satisfied.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(t)
Foreign currency translation
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars 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 financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates
at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars
using the average exchange rates, which approximate the rates at the dates of the transactions, for the period.
(u)
Segment reporting
, under which segment information is presented on the same basis
as that used for internal reporting purposes. 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 Board of Directors.
46
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Income tax
on the notional income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences between tax bases of assets and liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
A deferred tax asset for unused tax losses is recognised only if it is probable that future taxable amounts will
be available to utilise 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 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 assets and settle the liability simultaneously.
(w) Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred
is not recoverable from the tax authority. In this case it is recognised as part of the cost of the 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 tax authority is included in other receivables or other 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 tax authority, are presented as operating
cash flows.
(x)
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs
incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred
for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
(y)
Lease liabilities
Lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental
borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur,
and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an index
or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When
a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or
loss if the carrying amount of the right-of-use asset is fully written down.
47
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(z)
New accounting standards and interpretations
(i) New and amended standards adopted by the Company
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ( AASB ) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
3.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates
its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements and estimates on historical experience and on other various factors it
believes to be reasonable under the circumstances, the results of which form the basis of the carrying values
of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions and conditions.
Management has identified the following critical accounting policies for which significant judgements, estimates
and assumptions are made. Actual results may differ from these estimates under different assumptions and
conditions and may materially affect financial results or the financial position reported in future periods.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to the
financial statements.
Share based payment transactions
The Group measures the cost of equity-settled share based payment transactions with employees by reference
to the fair value of the equity instruments at the grant date. The fair value is determined by using a recognised
option valuation model, with the assumptions detailed in Note 14. The accounting estimates and assumptions
relating to equity-settled share based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact expenses and equity.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to the
availability of contractor, supply chain effects, staffing in the geographic regions in which the Group operates.
There does not currently appear to be either any significant impact upon the financial statements or any
significant uncertainties with respect to events or conditions which may impact the consolidated entity
unfavourably as at the reporting date or subsequently as a result of COVID-19.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations
undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The
consolidated entity recognises liabilities for anticipated tax audit issues based on the consolidated entity's
current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
48
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
3.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(continued)
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease
or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised,
when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and
circumstances that create an economical incentive to exercise an extension option, or not to exercise a
termination option, are considered at the lease commencement date. Factors considered may include the
importance of the asset to the consolidated entity's operations; comparison of terms and conditions to
prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements;
and the costs and disruption to replace the asset. The consolidated entity reassesses whether it is reasonably
certain to exercise an extension option, or not exercise a termination option, if there is a significant event or
significant change in circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what the consolidated entity estimates it would have to pay a
third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with
similar terms, security and economic environment.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from
the reporting date are recognised and measured at the present value of the estimated future cash flows to be
made in respect of all employees at the reporting date.
In determining the present value of the liability,
estimates of attrition rates and pay increases through promotion and inflation have been taken into account.
Tenement Acquisition Costs
Tenement acquisition costs for the Australian tenements acquired in December 2019 have been capitalised
on the basis that the consolidated entity will commence commercial production in the future, from which time
the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements are applied
in considering costs to be capitalised which includes determining expenditures directly related to these
activities and allocating overheads between those that are expensed and capitalised. In addition, costs are
only capitalised that are expected to be recovered either through successful development or sale of the
relevant mining interest. Factors that could impact the future commercial production at the mine include the
level of reserves and resources, future technology changes, which could impact the cost of mining, future legal
changes and changes in commodity prices. To the extent that capitalised costs are determined not to be
recoverable in the future, they will be written off in the period in which this determination is made.
49
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
4.
REVENUE FROM CONTINUING OPERATIONS
Gain on termination lease
Research and development tax refund
Interest received
5.
EXPENSES
Loss before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Right-of-use asset
Finance costs
Lease liability
Net foreign exchange loss
Rental expense relating to operating lease
Minimum lease payments
Superannuation expense
2022
$
758
112,270
6,646
119,674
2021
$
-
115,459
1,401
116,860
15,578
69,942
85,520
8,819
65,981
4,591
49,703
54,294
5,690
25,877
-
4,565
Defined contribution superannuation expense
67,220
46,707
Share-based payments expense
Equity-settled share-based payments
952,234
127,861
50
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
6.
INCOME TAX
Loss for year
Tax expense/(benefit) at tax rate of 25% (2021: 26%)
Tax effect of amounts that are not deductible/taxable in calculating taxable
income
Impact of reduction in future corporate tax rate
Deferred tax assets not brought to account
Revenue losses not brought to account
Income tax expense/(benefit)
DEFERRED TAX
Deferred Tax Assets
at 25% (2021: 26%) unless stated otherwise
Provisions and accruals
Capital raising costs
Overseas tax losses (at 32% corporate tax rate)
Australian capital losses carried forward
Australian carried forward revenue losses
Other
2022
$
2021
$
(5,729,835)
(2,603,756)
(1,432,459)
(676,977)
246,403
16,206
-
(37,501)
1,223,557
-
-
(29,839)
690,610
-
50,228
120,123
1,910,711
910,848
7,673,816
1,609
10,667,335
58,256
92,237
1,124,743
910,848
7,110,854
690
9,297,628
The tax benefit of the above Deferred Tax Assets will only be obtained if:
a) The company derives future assessable income or a nature and of an amount sufficient to enable the
benefits to be utilised; and
b) The company continues to comply with the conditions for deductibility imposed by law; and
c) No changes in income tax legislation adversely affect the company in utilising the benefits
Deferred Tax Liabilities
at 25% (2021: 25%)
Prepayments
-
-
1,965
1,965
The above Deferred Tax Liabilities have not been recognised as they have given rise to the carry forward
revenue losses for which the Deferred Tax Asset has not been recognised.
7.
TRADE AND OTHER RECEIVABLES
Current Assets
GST and VAT refundable
Other receivables
Rental & Security Bonds
43,395
16,186
24,627
84,208
22,144
9,066
-
31,210
51
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
7.
TRADE AND OTHER RECEIVABLES (continued)
Non-Current Assets
Amount receivable from sale of Marenica Minerals (Proprietary) Limited
(incorporated in Namibia)
Provision for impairment
2022
$
2021
$
3,425,275
3,425,275
(3,425,275)
(3,425,275)
-
-
(Proprietary) Limited (incorporated in Namibia) is subject to the successful exploitation and development of
As the project has not yet reached a stage at which this can be
assured, the amount receivable from the purchaser is considered to be impaired.
8.
PLANT AND EQUIPMENT
Cost
Less: Accumulated Depreciation
Net book value
Reconciliations:
236,146
(116,603)
119,543
122,450
(100,326)
22,124
Reconciliations of written down values at the beginning and end of the current and previous financial year are
set out below:
Opening net book amount
Additions
Disposals
Profit on sale
Depreciation charge
Closing net book amount
9.
RIGHT-OF-USE ASSET
Land and buildings
right-of-use
Less: Accumulated depreciation
22,124
112,996
-
-
(15,577)
119,543
20,248
6,407
-
-
(4,531)
22,124
241,605
(70,767)
170,838
137,313
(40,781)
96,532
The Company leases land and buildings for its office in Australia under a three-year agreement and for its
warehouse in Namibia under a five-year agreement. On renewal, the terms of the leases are renegotiated.
The Company also leases land and buildings under a separate agreement of less than two years and is either
short-term or low-value, so has been expensed as incurred and not capitalised as a right-of-use assets.
52
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
10. CAPITALISED TENEMENT ACQUISITION COSTS
Balance at beginning of year
2022
$
3,145,885
3,145,885
2021
$
3,145,885
3,145,885
On 11 December 2019, the Company acquired 100% of the shares of Thatcher Soak Pty Ltd, Jackson Cage
Pty Ltd and Northern Territory Uranium Pty Ltd, which collectively hold tenements and minerals resources in
. Refer
Western Australia and the Northern Territory that are prospective for uranium
to Note 17 for the names and countries of incorporation of these entities.
Capitalised tenement acquisition costs represent the accumulated cost of acquiring the Acquisition Assets.
Ultimate recoupment of these costs is dependent on the successful development and commercial exploitation
or alternatively, sale of the respective areas of interest.
11. PAYABLES
Trade payables
Accrued charges
12. PROVISIONS
Current Liabilities
Provision for annual leave
Non-Current Liabilities
Provision for long service leave
2022
$
38,975
421,435
460,410
2021
$
98,066
79,231
177,297
2022
$
2021
$
145,016
109,544
145,016
109,544
55,896
55,896
43,408
43,408
53
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
13. CONTRIBUTED EQUITY
(a) Ordinary Shares
Paid up capital ordinary shares
Capital raising costs capitalised
Movement during the year
Balance at 1 July 2020
Share issue 23 November 2020
Share issue 27 November 2020
Share issue 25 January 2021
Exercise of options 6 April 2021
Exercise of options 22 June 2021
Exercise of options 22 June 2021
Exercise of options by Directors 22 June 2021
Exercise of options by Brokers 22 June 2021
Exercise of options 22 June 2021
Exercise of options 30 June 2021
Less: Share issue costs
Balance at 30 June 2021
Exercise of options 15 July 2021
Transfer from Share Based Reserve on exercise of options
15 July 2021
Exercise of options 5 October 2021
Exercise of options 5 October 2021
Exercise of options 23 November 2021
Transfer from Share Based Reserve on exercise of options
23 November 2021
Share placements 30 November 2021
Exercise of options 10 December 2021
Exercise of options 17 March 2022
Transfer from Share Based Reserve on exercise of options
17 March 2022
Exercise of options 19 April 2022
Transfer from Share Based Reserve on exercise of options
19 April 2022
Less Share issue costs
Balance at 30 June 2022
2022
$
80,765,712
(2,801,750)
77,963,962
Number of
Shares
143,365,397
31,660,619
25,568,175
3,977,270
3,300,000
12,628,860
214,285
-
-
5,850,000
100,000
-
226,664,606
1,559,040
-
3,950,000
1,600,000
207,948
-
25,555,556
977,000
14,231,567
-
750,000
-
2021
$
66,057,329
(2,015,975)
64,041,354
$
55,929,259
2,786,140
2,249,999
350,000
330,000
2,146,906
45,000
18,549
30,915
585,000
17,000
(447,414)
64,041,354
265,037
17,535
671,500
160,000
43,669
18,000
11,500,000
166,090
1,423,157
15,820
300,000
127,575
-
275,495,717
(785,775)
77,963,962
Ordinary shares participate in dividends and the proceeds on winding up of Elevate Uranium Ltd in proportion
to the number of shares held. The fully paid ordinary shares have no par value. At shareholder meetings,
when a poll is called, each ordinary share is entitled to one vote otherwise each shareholder has one vote on
a show of hands.
54
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
13. CONTRIBUTED EQUITY (continued)
(b) Share Options
Movements in share
options:
Balance at 30 June
2020
Issued during the year
Exercised during the
year
Lapsed during the
year
Balance at 30 June
2021
Issued during the year
Exercised during the
year
Lapsed during the
year
Balance at 30 June
2022
Unlisted,
$0.17
Options
1/12/23
Unlisted,
$0.17
Options
10/12/21
Unlisted,
$0.21
Options
30/11/21
Unlisted,
$0.17
Options
13/12/20
Unlisted,
$0.17
Options
13/12/20
Unlisted,
$0.10
Options
30/6/23
Unlisted,
$0.17
Options
29/08/25
Unlisted,
$0.61
Options
16/12/25
Unlisted,
$0.61
Options
16/12/25
7,600,000
19,214,900
422,233
7,890,000
7,600,000
-
-
-
-
-
-
(12,728,860)
(214,285)
-
-
-
-
27,349,989
(9,150,000)
-
-
(7,890,000)
(7,600,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,600,000
6,486,040
207,948
-
-
-
7,600,000
-
-
(6,486,040)
(207,948)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18,199,989
-
750,000
3,000,000
1,200,000
(15,831,567)
(750,000)
-
2,368,422
-
-
-
-
-
-
3,000,000
1,200,000
55
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
14. RESERVES
Share-Based Payments Reserve
Share-Based Payments Reserve
Balance at beginning of year:
Options issued during the year
-
-
-
In lieu of placement fees
Employee options
KMP options
Options lapsed/exercised during the year
Performance rights lapsed/vesting
Balance at end of year:
(i)
Share Options
Movements in share options
Balance as at 30 June 2020
Options exercised
Options lapsed
Options issued ref. (a) next page
2022
$
2021
$
1,145,111
371,806
1,145,111
371,806
371,806
485,191
127,575
864,928
(178,930)
(40,268)
15,820
-
122,077
(257,065)
5,783
1,145,111
371,806
Number of
options
$
42,727,133
(22,093,145)
(15,490,000)
27,349,989
450,713
(49,463)
(207,602)
137,897
Weighted
average
exercise
price
$
0.1704
0.125
0.17
0.10
Balance as at 30 June 2021
32,493,977
331,544
0.1310
Options exercised
Options lapsed
Options issued
Balance as at 30 June 2022
(23,275,555)
-
4,950,000
14,168,422
(178,930)
-
992,503
1,145,118
0.1302
-
0.54
0.2887
(ii) Movements in Share Based Payments Reserve
Balance as at 1 July 2020
Transfer on exercise or expiry of equity
Issue of options
Lapse of options
Performance rights vesting
Balance as at 30 June 2021
Transfer on exercise or expiry of equity
Issue of options
Lapse of performance rights
Performance rights vesting
Total Share Based Payments Reserve
485,191
(49,463)
137,897
(207,602)
5,783
371,806
(178,930)
992,503
(40,500)
232
1,145,111
56
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
14. RESERVES (continued)
(a)
On 24 August 2021, 750,000 options were granted exercisable at $0.40 each on or before
29 August 2025, to an employee of the Company. The fair value of these options is $0.1701 per option
for a total value of $127,575. These options vested immediately. In valuing these options the Company
used the following inputs in the Black Scholes option valuation model.
Inputs into the Model
Grant date share price
Exercise price
Expected volatility
Option life
Risk-free interest rate
$0.295
$0.400
90.00%
4 years
0.1351%
(b)
On 16 December 2021, 3,000,000 options were granted exercisable at $0.61 each on or before
The fair value of these
16 December 2025,
options is $0.2390 per option for a total value of $717,000. In valuing these options, the Company used
the following inputs in the Black Scholes option valuation model.
Inputs into the Model
Grant date share price
Exercise price
Expected volatility
Option life
Risk-free interest rate
$0.420
$0.610
90.00%
4 years
1.005%
(c)
On 16 December 2021, 1,200,000 options were granted exercisable at $0.61 each on or before 16
non-executive directors as part of their remuneration. The vesting
condition attached to these options is continuous service of directors of the Company to 31 December
2022. At the reporting period date, the amount vested was $147,928. The fair value of these options is
$0.2390 per option for a total value of $286,786.
In valuing these options, the Company used the
following inputs in the Black Scholes option valuation model.
Inputs into the Model
Grant date share price
Exercise price
Expected volatility
Option life
Risk-free interest rate
$0.420
$0.610
90.00%
4 years
1.005%
(d)
202,500 unvested performance rights expired on 15 July 2021. As these did not vest, the balance of
$40,500 has been reversed.
Nature and purpose of reserves
(i) Share-based payments reserve
The share-based payments reserve represents the fair value of the actual or estimated number of unexercised
equity instruments granted to management and consultants of the Company recognised in accordance with
the accounting policy adopted for share-based payments and the cash price of rights/options issued to
investors.
57
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
15. ACCUMULATED LOSSES
Accumulated losses at beginning of year
Net losses attributable to members of the parent entity
Options lapsed during the year
Accumulated losses at the end of the year
16. SEGMENT INFORMATION
2022
$
(54,886,345)
(5,729,835)
-
2021
$
(52,490,191)
(2,603,756)
207,602
(60,616,180)
(54,886,345)
The Group operates in the mineral exploration and evaluation industry in Namibia and Australia. For
management purposes, the Group is organised into three main operating segments which involves the
exploration and evaluation of uranium deposits in Namibia and Australia plus corporate activities. T
activities are inter-related and discrete financial information is reported to the Board (Chief Operating Decision
Maker) using these segments. Accordingly, all significant operating decisions are based upon analysis using
these segments. The combined financial results from these segments are equivalent to the financial results
of the Group as a whole.
2022
$
Corporate
Uranium
Australia
Uranium
Namibia
Total
6,646
112,270
758
119,674
-
-
-
-
-
-
-
-
6,646
112,270
758
119,674
Revenue
Interest received
Research and development tax
refund
Other income
Expenses
Exploration
expenses
Share based employee benefits
Employee benefit expense
Foreign exchange loss
Administration expenses
Depreciation expense
Finance expense
Total expenses
Loss before
expense
and
evaluation
30,547
674,383
2,391,800
3,096,730
952,234
900,767
65,981
697,718
73,834
5,661
-
-
-
552
-
-
-
-
-
41,188
11,686
3,158
952,234
900,767
65,981
739,458
85,520
8,819
2,726,742
674,935
2,447,832
5,849,509
income
tax
(2,607,068)
(674,935)
(2,447,832)
(5,729,835)
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
15,786,114
227,297
(659,931)
(140,231)
-
109,107
15,895,221
3,145,885
63,084
3,436,266
-
-
(15,539)
(22,893)
(675,470)
(163,124)
Net assets
15,213,249
3,145,885
133,759
18,492,893
58
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
16. SEGMENT INFORMATION (continued)
Corporate
Uranium
Australia
Uranium
Namibia
Total
2021 $
1,401
115,459
-
116,860
-
-
-
-
-
-
-
-
1,401
115,459
-
116,860
Revenue
Interest received
Research and development tax
refund
Other income
Expenses
Exploration
expenses
Share based employee benefits
Employee benefit expense
Foreign exchange loss
Administration expenses
Depreciation expense
Finance expense
Total expenses
Loss before
expense
and
evaluation
65
171,958
1,093,642
1,265,665
127,861
644,295
25,877
564,857
43,070
1,877
-
-
-
1,151
-
-
-
-
-
30,926
11,224
3,813
127,861
644,295
25,877
596,934
54,294
5,690
1,407,902
173,109
1,139,605
2,720,616
income
tax
(1,291,042)
(173,109)
(1,139,605)
(2,603,756)
Total current assets
6,653,322
-
Total non-current assets
Total current liabilities
Total non-current liabilities
72,936
3,145,885
(323,706)
(56,738)
-
-
38,490
45,720
(13,335)
(35,759)
6,691,812
3,264,541
(337,041)
(92,497)
Net assets
6,345,814
3,145,885
35,116
9,526,815
17. RELATED PARTIES
(a) Subsidiaries
The consolidated financial statements include the financial statements of Elevate Uranium Ltd and the
subsidiaries listed in the following table:
Name
Marenica Energy Namibia (Pty) Ltd
Uranium Beneficiation Pty Ltd
Marenica Minerals (Pty) Ltd
Marenica Ventures (Pty) Ltd
Aloe Investments 247 (Pty) Ltd
Metals Namibia Pty Ltd
Thatcher Soak Pty Ltd (note 10)
Jackson Cage Pty Ltd (note 10)
Northern Territory Uranium Pty Ltd (note 10)
Country of
Incorporation
% Equity
Interest
2022
% Equity
Interest
2021
Namibia
Australia
Namibia
Namibia
Namibia
Namibia
Australia
Australia
Australia
100%
100%
75%
100%
90%
100%
100%
100%
100%
100%
100%
75%
100%
90%
100%
100%
100%
100%
59
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
17. RELATED PARTIES (continued)
(b) Ultimate parent
Elevate Uranium Ltd is the ultimate Australian parent entity and ultimate parent of the Group.
(c) Key management personnel
Details relating to key management personnel, including remuneration paid, are included in Note 23 and the
audited remuneration report section of the Direc
18. COMMITMENTS FOR EXPENDITURE
Mineral Tenement Lease
Exploration expenditure
The Company has been granted tenements in Namibia which have the
following exploration commitments
Within one year
Between 1 and 5 years
Lease commitments - operating
Within one year
Between 1 and 5 years
2022
$
2021
$
1,753,224
2,239,648
3,992,872
1,961,582
559,621
2,521,203
71,579
158,625
230,204
67,125
173,881
241,006
19. CASH AND CASH EQUIVALENTS
Cash as at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related
items in the Statement of Financial Position as follows:
Cash at bank and on deposit
Balance per statement of cash flows
2022
$
15,811,013
15,811,013
2021
$
6,660,602
6,660,602
20. RECONCILIATION OF LOSS AFTER INCOME TAX TO CASH FLOWS USED IN
OPERATING ACTIVITIES
Operating Profit (Loss)
Add non-cash items
Depreciation
Finance expense
Share-based payments
Loss on disposal of right-of-use asset
Unrealised foreign exchange loss
Decrease/increase in operating assets and liabilities:
Receivables
Trade and other payables
Provisions
Net cash (outflow) from operating activities
(5,729,835)
(2,603,756)
85,520
8,819
952,234
(757)
-
54,294
-
127,861
-
3,196
(24,587)
283,113
47,960
(4,377,533)
8,515
64,261
10,960
(2,334,669)
60
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
21. EARNINGS PER SHARE
(a) Basic earnings per share cents per share
Loss attributable to the ordinary equity holders of the Company
(2.27)
(1.44)
(b) Diluted earnings per share
Diluted earnings per share are not disclosed as they are not materially different to basic earnings per share.
(c) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares outstanding during the year
used in calculation of basic earnings per share
252,135,516
180,528,771
22.
During the year the following fees were paid or payable for services provided by the auditors:
(a) Audit services
Audit and review of financial reports under the Corporations Act 2001
40,000
Audit and review of financial reports of Namibian subsidiaries
(b) Other services
Other Services
Total remuneration of auditors
23. KEY MANAGEMENT PERSONNEL
Compensation for Key Management Personnel
35,000
4,608
-
-
-
40,000
39,608
The aggregate compensation made to directors and other members of key management personnel of the
Group is set out below:
Short term employee benefits
Post-employment benefits
Share-based payments
Total compensation
24. SHARE BASED PAYMENTS
Set out below are summaries of options granted during the year:
2022
$
696,884
70,188
824,619
1,591,691
2021
$
538,539
51,161
127,861
717,561
2022
Grant date
Expiry date
Exercise
price
Balance at the
start of the
year
Granted
Exercised/
other
Balance at
the end of the
year
24/08/2021
17/12/2021
17/12/2021
29/08/2025
16/12/2025
16/12/2025
$0.40
$0.61
$0.61
-
-
-
750,000
1,200,000
3,000,000
(750,000)
-
-
-
1,200,000
3,000,000
2021
Grant date
Expiry date
Exercise
price
Balance at the
start of the
year
Granted
Exercised/
other
3/07/2020
30/06/2023
$0.10
-
27,349,989
(9,150,000)
Balance at
the end of the
year
18,199,989
61
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
24. SHARE BASED PAYMENTS (continued)
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
22/11/2017
3/12/2019
10/12/2020
3/07/2020
17/12/2021
17/12/2021
30/11/2021
01/12/2023
10/12/2021
30/06/2023
16/12/2025
16/12/2025
2022
Number
-
7,600,000
-
2,368,422
3,000,000
1,200,000
14,168,422
2021
Number
207,948
7,600,000
6,486,040
18,199,989
-
-
32,493,977
The weighted average exercise price of options outstanding as at the end of the financial year was $0.2887
(2021: $0.1310).
The weighted average remaining contractual life of options outstanding at the end of the financial year was
1.95 years (2021: 1.78 years).
25. PARENT ENTITY FINANCIAL INFORMATION
(a)
Information relating to Elevate Uranium Ltd
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Loss for the year
Total comprehensive income
(b) Guarantees
2022
$
15,786,114
4,333,248
2021
$
6,653,322
3,503,952
20,119,362
10,157,274
(659,931)
(140,231)
(800,162)
(323,706)
(56,738)
(380,444)
19,319,200
9,776,830
77,963,953
64,041,345
1,145,111
371,806
(59,789,864)
(54,636,321)
19,319,200
9,776,830
(5,153,543)
(2,439,182)
(5,153,543)
(2,439,182)
No guarantees have been entered into by the Company in relation to the debts of its subsidiaries.
(c) Commitments
Commitments of the Company as at reporting date are disclosed in Note 18 to the financial statements.
62
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
26. CONTINGENT LIABILITIES
Mallee Minerals Pty Limited
On 7 April 2006, the Company entered into an introduction agreement with Mallee Minerals Pty Limited in
respect of a mineral licence in Namibia (Project). Upon the Company receiving a bankable feasibility study in
respect of the Project or the Company delineating, classifying or reclassifying uranium resources in respect of
the project, the Company will pay to Mallee Minerals Pty Limited:
(i)
$0.01 per tonne of uranium ore classified as inferred resources in respect of the Project; and a further
(ii) $0.02 per tonne of uranium ore classified as indicated resources in respect of the Project; and a further
(iii) $0.03 per tonne of uranium ore classified as measured resources in respect of the Project.
Pursuant to this agreement, no payments were made during the year ended June 2022 (2021: nil).
$2,026,000 has been paid under this agreement.
In total
Jackson Cage Royalties
On 13 December 2019, the Company
liable for a 1% gross royalty payable to Paladin Energy Limited and a 1% gross royalty payable to Areva
Resources Australia Pty Ltd on any production from the Oobagooma Project in Western Australia (being
tenement E04/2297) and a 1.5% gross royalty payable to Paladin NT Pty Ltd on any production from the
Pamela/Angela Project in the Northern Territory (being tenement application EL25759 and tenement
EL25758).
27. FINANCIAL INSTRUMENTS
Overview Risk Management
policies and processes for measuring and managing risk and the management of capital.
The Group does not use any form of derivatives as it is not at a level of exposure that requires the use of
derivatives to hedge its exposure. Exposure limits are reviewed by management on a continuous basis. The
Group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
The Board of Directors of the Company has overall responsibility for the establishment and oversight of the
risk management framework. Management monitors and manages the financial risks relating to the operations
of the Company and the Group through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractua
investment securities. At 30 June 2022, there were no significant concentrations of credit risk.
Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties
that have an acceptable credit rating.
63
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
27. FINANCIAL INSTRUMENTS (continued)
Trade and other receivables
As the Group operates primarily in exploration activities, it does not have any significant trade receivables and
therefore is not exposed to credit risk in relation to trade receivables.
The Group where necessary establishes an allowance for impairment that represents its estimate of incurred
losses in respect of other receivables and investments. Management does not expect any counterparty to fail
to meet its obligations.
Exposure to credit risk
maximum exposure to credit risk at the reporting date was:
Trade and other receivables
Cash and cash equivalents
Impairment Losses
s receivables are past due (2021: $ nil).
Liquidity Risk
Note
7
19
2022
$
2021
$
84,208
15,811,013
31,210
6,660,602
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and
by continuously monitoring forecast and actual flows. Apart from the convertible note, the Group does not
have any significant external borrowings.
The Group will need to raise additional capital in the next 12 months to meet forecast operational and
development activities. The decision on when and how the Group will raise future capital will depend on market
conditions existing at that time.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
30 June 2022
Note
Trade and other payables
11
30 June 2021
Note
Trade and other payables
11
Carrying
amount
460,410
Carrying
amount
177,297
Contractual
cash flow
460,410
Contractual
cash flow
177,297
6 months
or less
460,410
6 months
or less
177,297
>12
months
-
>12
months
-
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
The objective of
market risk management is to manage and control market risk exposure within acceptable parameters, while
optimising the return.
Currency Risk
to currency risk at 30 June 2022 on financial assets denominated in Namibian dollars
was nil (2021: nil) which amounts are not hedged. The effect of future movements in the exchange rate for
al position and results of fully expensed exploration and evaluation
activities is likely to be negligible.
64
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
27. FINANCIAL INSTRUMENTS (continued)
Interest Rate Risk
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that a
value will fluctuate as a result of changes in the market interest rates on interest-bearing
financial
financial instruments. The Group does not use derivatives to mitigate these exposures.
The Company adopts a policy of ensuring that as far as possible it maintains excess cash and cash equivalents
on short term deposit at interest rates maturing over 30 to 90 day rolling periods.
Profile
At the reporting date the interest rate profile of the
-bearing financial instruments was:
Variable rate instruments
Financial assets cash and cash equivalents
Fair value sensitivity analysis for fixed rate instruments
Carrying Amount
2021
$
2022
$
15,811,013
6,660,602
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or
loss or through equity, therefore a change in interest rates at the reporting date would not affect profit or loss
or equity.
Cash flow sensitivity analysis for variable rate instruments
A change of 50 basis points (2021: 50 basis points) in interest rates at the reporting date would have increased
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables remain constant. The analysis is performed on the same basis for 30 June 2022.
30 June 2022
Variable rate instruments
30 June 2021
Variable rate instruments
Profit or loss
Equity
50bp
increase
79,055
50bp
increase
33,303
50bp
decrease
(79,055)
50bp
decrease
(33,303)
50bp
increase
79,055
50bp
increase
33,303
50bp
decrease
(79,055)
50bp
decrease
(33,303)
Fair Value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Commodity Price Risk
assets and liabilities are subject to minimal commodity price risk.
Capital Management
concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of
its projects.
to raise sufficient funds through equity or debt to fund its exploration
and evaluation activities.
Risk management
policies and procedures are established with regular monitoring and reporting.
The Group is not subject to externally imposed capital requirements.
65
2022 Annual Report
Notes to the Financial Statements (continued)
For the year ended 30 June 2022
28. FAIR VALUE MEASUREMENT
Fair value hierarchy
The carrying amounts of trade and other receivables and trade and other payables are assumed to
approximate their fair values due to their short-term nature.
29. EVENTS AFTER THE REPORTING PERIOD
There have been no matters or circumstances that have arisen since the end of the financial year which
significantly affected or may significantly affect:
(i)
(ii)
the Group's operations in future years; or
the results of those operations in future years; or
(iii)
the Group's state of affairs in future years.
66
2022 Annual Report
The Directors of the Company declare that:
1.
audited, of the Company and of the Group are in accordance with the Corporations Act 2001, including:
a.
complying with Accounting Standards and the Corporations Regulations 2001; and
b.
their performance for the year ended on that date.
ne 2022 and of
2.
in the Directors' opinion there are reasonable grounds to believe that the Company and Group will be able to
pay their debts as and when they become due and payable.
3.
the financial report also complies with International Financial Reporting Standards.
4.
this declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2022.
This declaration is made in accordance with a resolution of the board of Directors.
On behalf of the board.
Andrew Bantock
Chairman
Perth
27 September 2022
67
2022 Annual Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEVATE URANIUM LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Elevate Uranium Limited (“the Company”) and its controlled entities
(“the Group”) which comprises the statement of financial position as at 30 June 2022, the statement of
profit or loss and other comprehensive income, the statement of changes in equity and the 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 2022 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
ELEVATE URANIUM LIMITED (continued)
Key Audit Matter – Cash and Cash Equivalents
How our Audit Addressed the Key Audit Matter
The Group’s cash and cash equivalents make up 82%
of total assets by value and are considered to be the
key driver of the Group’s operations.
Our procedures over the existence of the Group’s
cash and cash equivalents included but were not
limited to:
We do not consider cash and cash equivalents to be
at a high risk of significant misstatement or to be
subject to a significant level of judgement.
However due to their materiality in the context of
the financial statements as a whole, they are
considered to be the area which had an effect on
our overall strategy and allocation of resources in
planning and completing our audit.
Key Audit Matter – Exploration and evaluation
expenditure
The Group has capitalised exploration assets that
represent 16% of total assets by value.
We do not consider the underlying tenements to be
at a high risk of significant misstatement.
However due to the materiality in the context of
the financial statements as a whole, this is
considered to be an area which had an effect on our
overall strategy and allocation of resources in
planning and completing our audit.
Documenting and assessing the processes and
controls in place to record cash transactions;
Testing a sample of cash payments to
determine they were bona fide payments,
were properly authorised and recorded in the
general ledger; and
Agreeing balances to independent
confirmations.
We have also assessed the appropriateness of the
disclosures included in the financial report.
How our Audit Addressed the Key Audit Matter
Our procedures in assessing exploration and
evaluation expenditure included but were not
limited to the following:
We assessed exploration and evaluation
expenditure with reference to AASB 6
Exploration for and Evaluation of Mineral
Resources;
We tested a sample of exploration and
evaluation expenditure to supporting
documentation to ensure they were bona
fide payments;
We reviewed the management’s assessment
for the indicators for impairment for the
exploration assets; and
We documented and assessed the processes
and controls in place to record exploration
and evaluation transactions.
We have also assessed the appropriateness of the
disclosures included in the financial report.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ELEVATE URANIUM 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 2022, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
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
ELEVATE URANIUM 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 2022.
In our opinion the remuneration report of Elevate Uranium Limited for the year ended 30 June 2022 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Audit & Assurance Pty Ltd
Donovan Odendaal
Director
Dated 27 September 2022
Additional Australian Securities Exchange Information
The following additional information is required by the Australian Securities Exchange and is current
as at 30 August 2022.
(a) Distribution schedule and number of holders of equity securities
1 1,000
1,001
5,000
5,001
10,000
10,001
100,000
100,001
and over
Total
3,804
1,777
672
1,323
264
7,840
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
1
-
-
5
-
1
4
4
5
1
2
4
4
Fully Paid Ordinary
Shares (EL8)
Unlisted Options
$0.61 16/12/2025
Unlisted Options
$0.70 28/08/2026
Unlisted Options
$0.70 28/08/2026
Unlisted Options
$0.17
01/12/2023
Unlisted Options -
$0.10
30/06/2023
The number of holders holding less than a marketable parcel of fully paid ordinary shares 3,647.
72
2022 Annual Report
Additional Australian Securities Exchange Information
(b) 20 Largest holders of quoted equity securities
The names of the twenty largest holders of fully paid ordinary shares (ASX code: EL8) are:
Rank Name
Shares
% of Total
Shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HSBC Custody Nominees (Australia) Limited
BNP Paribas Nominees Pty Ltd
Citicorp Nominees Pty Limited
BNP Paribas Nominees Pty Ltd ACF Clearstream
BNP Paribas Noms Pty Ltd
Hanlong Resources Limited
Retzos Executive Pty Ltd
HSBC Custody Nominees (Australia) Limited A/C 2
Mr Nelson Feng Chen
Retzos Family Pty Ltd
Merrill Lunch (Australia) Nominees Pty Ltd
Mrs Carol Ann Hill
Mr Richard Thomas Hayward Daly + Mrs Sarah Kay Daly
Atlantis MG Pty Ltd
Shayden Nominees Pty Ltd
BNP Paribas Nominees Pty Ltd
Remake Pty Ltd < Elliott Family A/C>
Enerview Pty Ltd
Pasias Holdings Pty Ltd
Define Consulting Pty Ltd
23,160,002
22,821,431
21,731,138
13,084,750
11,645,979
11,635,072
7,616,435
4,812,257
4,000,000
3,500,000
3,308,399
3,104,820
2,517,979
2,500,000
2,500,000
2,373,575
2,272,727
1,800,000
1,774,330
1,766,985
8.41
8.28
7.89
4.75
4.23
4.22
2.76
1.75
1.45
1.27
1.20
1.13
0.91
0.91
0.91
0.86
0.82
0.65
0.64
0.62
TOTAL
147,925,879
53.68
Stock Exchange Listing
Australian Securities Exchange.
there are 275,495,717 ordinary fully paid shares of the Company on issue on the
Unquoted securities on issue are detailed below in Section (d).
(c) Substantial shareholders
There are no shareholders for which Elevate Uranium Ltd has received a notice disclosing a relevant interest
the Company.
73
2022 Annual Report
Additional Australian Securities Exchange Information
(d) Unquoted Securities
The number of unquoted securities on issue:
Security
Unlisted options, exercisable at $0.70 each on or before 28 August 2026.
Unlisted options, exercisable at $0.61 each on or before 16 December 2025.
Unlisted options, exercisable at $0.17 each on or before 01 December 2023.
Unlisted options, exercisable at $0.10 each on or before 30 June 2023.
Number on issue
400,000
4,200,000
7,600,000
2,368,422
(e) Holder Details of Unquoted Securities
Names of people that hold more than 20% of a given class of unquoted securities (other than
unquoted securities issued under an employee incentive scheme) are below:
Security
Name
Number of
Securities
3,600,000
2,000,000
1,000,000
1,000,000
921,053
526,316
657,895
Unlisted options, exercisable at
$0.17 each on or before 01
December 2023.
Unlisted options, exercisable at
$0.17 each on or before 01
December 2023.
Unlisted options, exercisable at
$0.17 each on or before 01
December 2023.
Unlisted options, exercisable at
$0.17 each on or before 01
December 2023.
Unlisted options, exercisable at
$0.10 each on or before 30 June
2023.
Unlisted options, exercisable at
$0.10 each on or before 30 June
2023.
Unlisted options, exercisable at
$0.10 each on or before 30 June
2023.
Unlisted options, exercisable at
$0.61 each on or before 16
December 2025.
Carol Ann Hill
SJJZT Pty Ltd
Mr Nelson Feng Chen
Mr Andrew Roderic Bantock
Mrs Carol Ann Hill
Valor (1982) Pty Ltd
Define Consulting Pty Ltd
Mr Murray Philip Hill & Mrs Carol Ann Hill
1,900,000
(f) Restricted Securities
There are no restricted securities on issue.
(g) Voting Rights
All fully paid ordinary shares carry one vote per ordinary share without restriction.
Options have no voting rights.
74
2022 Annual Report
Additional Australian Securities Exchange Information
(h) Company Secretary
The Company Secretary is Mr Shane McBride.
(i) Registered Office
(j) Share Registry
Suite 2, 5 Ord Street, West Perth, WA 6005.
Telephone: +61 8 9389 8033. Facsimile: +61 8 9262 3723.
(k) On-Market Buy-back
The Company is not currently conducting an on-market buy-back.
(l) Corporate Governance
The Board of Elevate Uranium Ltd is committed to achieving and demonstrating the highest standards of Corporate
Governance. The Board is responsible to its Shareholders for the performance of the Company and seeks to
communicate extensively with Shareholders. The Board believes that sound Corporate Governance practices will
assist in the creation of Shareholder wealth and provide accountability. In accordance with ASX Listing Rule 4.10.3,
the Company has elected to disclose its Corporate Governance policies and its compliance with them on its website,
rather than in the Annual Report. Accordingly, information about the Company's Corporate Governance practices is
set out on the Company's website at www.elevateuranium.com.au.
75
2022 Annual Report
Additional Australian Securities Exchange Information
The Group holds the following mineral tenements.
Number
Name
Percentage
Holding
Number
Name
Percentage
Holding
Active Licences
Licence Applications
NAMIBIA
MDRL 3287
EPL 6663
EPL 6987
EPL 7278
EPL 7279
EPL 7368
EPL 7435
EPL 7436
EPL 7508
EPL 7662
Marenica
Arechadamab
Koppies
Hirabeb
Ganab West
Trekkopje East
Skilderkop
Amichab
Capri
Namib IV
75%
90%
100%
100%
100%
100%
100%
100%
100%
100%
EPL 8098
EPL 8728
EPL 8791
EPL 8792
EPL 8975
EPL 8822
EPL 8823
Autseib
Hoasib
Marenica North
Marenica West
Marenica East
Ganab South
Marenica Central
100%
100%
100%
100%
100%
100%
100%
Active Licences 100% Interest
Licence Applications 100% Interest
AUSTRALIA
EL 25758
EL 32400
R 38/1
E 04/2297
Angela
Minerva
Thatcher Soak
Oobagooma
100%
100%
100%
100%
EL 25759
Pamela
100%
Active Licences Joint Venture Interests
Licence Applications Joint Venture
Interests
ELR 41
ELR 45
ELR 32552
EL 30144
ELR 31319
Malawiri
Walbiri
Bigrlyi
Dingos Rest South
Sundberg
23.97%
22.88%
20.82%
20.82%
20.82%
MLN 1952
EL 1466
EL 3114
Karins
Mount Gilruth
Beatrice South
20.82%
33.33%
33.33%
76
2022 Annual Report