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2023 ReportWWW.EQUUSMINING.COM
Annual Report
EQUUS MINING LIMITED AND ITS CONTROLLED ENTITIES | ABN 44 065 212 679
SHARE REGISTRY
Advanced Share Registry Limited
110 Stirling Highway, Nedlands,
Western Australia 6009
Telephone: (61 8) 9389 8033
Facsimile: (61 8) 9262 3723
Website: www.advancedshare.com.au
AUDITOR
KPMG
Level 16, Riparian Plaza, 71 Eagle Street,
Brisbane QLD 4000 Australia
STOCK EXCHANGE LISTING
Australian Securities Exchange
(Code – EQE)
DIRECTORS
Mark Lochtenberg
Non-executive Chairman
John Braham
Managing Director
Damien Koerber
Executive Director - Chief Operating Officer
Robert Yeates
Non-Executive Director
David Coupland
Non-Executive Director
COMPANY SECRETARY
Marcelo Mora
AUSTRALIAN BUSINESS NUMBER
44 065 212 679
PRINCIPAL PLACE OF BUSINESS
AND REGISTERED OFFICE
Equus Mining Limited
Level 2, 66 Hunter Street,
Sydney, NSW 2000 Australia
Telephone: +61 2 9300 3366
Facsimile: +61 2 9221 6333
Email: info@equusmining.com
Website: www.equusmining.com
2 | EQUUS MINING LIMITED
Contents
Chairman and Managing Director’s Letter
Review of Operations
Corporate Governance Statement
Directors’ Report
Lead Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Stock Exchange Information
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2021 ANNUAL REPORT | 1
Chairman and
Managing Director’s Letter
To date, results from this drilling has provided
confirmation of potential for discovery of
high-grade mineralisation to extend along trend
from these areas. Furthermore, the Company
believes that compelling exploration potential
remains throughout the expansive 295km2 mining
claim package at Cerro Bayo.
The Company is entering an exciting phase in the
Company’s strategy towards acquisition of Cerro
Bayo, and we firmly believe that it represents one
of the more compelling projects leveraged towards
near term gold and particularly silver production,
accompanied by resource and exploration upside,
on the ASX. The Company is well positioned for the
future as it looks to establish itself as a significant
producer in a large, world class, gold-silver
epithermal district.
We are greatly appreciative of your support
throughout the period and believe that the
Company will continue to increase value for
shareholders over the upcoming year. We especially
value our in-country staff for their efforts and
success achieved safely under challenging COVID
related conditions during the past year.
Yours Sincerely
Mark H. Lochtenberg
Chairman
John Braham
Managing Director
Dear fellow shareholders,
It gives me great pleasure to present the 2021
Annual Report for Equus Mining Limited (ASX:EQE)
(Equus or Company).
In 2019, the Company announced it had executed
an agreement with Mandalay Resources (Mandalay)
for a 3-year option to acquire the Cerro Bayo
Mine and plant infrastructure in Southern Chile.
Despite the effects of the COVID pandemic
globally, throughout 2020-2021 the Company is
proud to have accomplished an aggressive phase
of exploration, resource and mine restart studies
which delivered both strong exploration and
resource definition results across the Cerro Bayo
Mining District.
In December 2020, the Company announced a
JORC compliant maiden Inferred Mineral Resource
of 302,000 gold equivalent ounces situated under
and peripheral to the historically mined Taitao
Pit. The Mineral Resource estimate was based
on significant historical drilling and data and is
optimally located within 300m to 1500m of the
Cerro Bayo flotation plant infrastructure.
Importantly, in February 2021, Mandalay
commenced processing of low-grade stockpiles
after recommissioning the 0.5Mtpa Cerro Bayo
flotation plant which continues to deliver consistent
and strong production results at low costs.
Equus is optimally positioned for a near zero cash
outlay to seamlessly take control of 100% of the
Cerro Bayo mine infrastructure and to continue
production through exercise of the option.
Expected cashflows from the processing of the
stockpiles has the potential to assist in funding
future exploration and resource development
activities at Cerro Bayo following exercise of
the option.
Equus continues to aggressively drill test its high
priority brownfields drill targets, many of which
are located along trend of several key historic
producing mines, within 3km from the processing
plant and infrastructure.
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2021 ANNUAL REPORT | 3
2021 ANNUAL REPORT | 3
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
REVIEW OF OPERATIONS
THE CERRO BAYO PROJECT
In late June 2019, the Company announced it had executed an agreement with Mandalay Resources Corporation (TSX:MND,
OTCQB: MNDJF) for a 3-year option to acquire all the mining properties resources and mine infrastructure at Mandalay’s
Cerro Bayo project in Southern Chile.1 The 3-year option agreement is comprised of an initial 18-month period commencing
June 2020 to January 2022, with an 18-month extension from January 2022 until June 2023 on agreement with Mandalay.2
At any time during the option period, the Company can exercise its option to acquire all the mining properties, resources and
mine infrastructure at Cerro Bayo including the 1,500 tpd processing plant, which commenced processing of low-grade
stockpiles in late February 2021.
The Cerro Bayo Project lies within a premier world class epithermal silver-gold district in southern Chile (Figures 1, 2), centred
approximately ~10km west of the township of Chile Chico. Throughout the 295km² Cerro Bayo mining property there are 9
historical mines located within 15km of the Cerro Bayo and a 1,500 tpd flotation processing plant for which historical production
to date totals approximately 0.65Moz Au and 45Moz Ag between 1995-2017. 3
Figure 1 – Cerro Bayo Claim Regional Location
1 ASX Announcement - Equus Executes Agreement to Explore and Option to Acquire Mandalay Resources Corporation’s Cerro Bayo Mining Project
https://wcsecure.weblink.com.au/pdf/EQE/02117478.pdf
2 ASX Announcement – BROAD ZONES OF SHALLOW GOLD-SILVER MINERALISATION CONFIRMED BENEATH TAITAO PIT AT CERRO BAYO
https://wcsecure.weblink.com.au/pdf/EQE/02247975.pdf
3 ASX Announcement - DRILLING CONFIRMS BROAD ZONES OF SHALLOW MINERALISATION BELOW TAITAO PIT
https://wcsecure.weblink.com.au/pdf/EQE/02256113.pdf
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2021 ANNUAL REPORT | 5
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
REVIEW OF OPERATIONS
THE CERRO BAYO PROJECT
In late June 2019, the Company announced it had executed an agreement with Mandalay Resources Corporation (TSX:MND,
OTCQB: MNDJF) for a 3-year option to acquire all the mining properties resources and mine infrastructure at Mandalay’s
Cerro Bayo project in Southern Chile.1 The 3-year option agreement is comprised of an initial 18-month period commencing
June 2020 to January 2022, with an 18-month extension from January 2022 until June 2023 on agreement with Mandalay.2
At any time during the option period, the Company can exercise its option to acquire all the mining properties, resources and
mine infrastructure at Cerro Bayo including the 1,500 tpd processing plant, which commenced processing of low-grade
stockpiles in late February 2021.
The Cerro Bayo Project lies within a premier world class epithermal silver-gold district in southern Chile (Figures 1, 2), centred
approximately ~10km west of the township of Chile Chico. Throughout the 295km² Cerro Bayo mining property there are 9
historical mines located within 15km of the Cerro Bayo and a 1,500 tpd flotation processing plant for which historical production
to date totals approximately 0.65Moz Au and 45Moz Ag between 1995-2017. 3
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Figure 1 – Cerro Bayo Claim Regional Location
Figure 2 – Cerro Bayo Claim Area, with Brownfields/Greenfields targets, historical mines and interpreted geology including
faults and veins
Cerro Bayo Processing Optimisation and Growth Strategy
The Company is executing a dual-track strategy of both brownfields resource evaluation and greenfield target exploration to
provide resource growth throughout the highly prospective Cerro Bayo Mining District, which is now underpinned by the fully
operational Cerro Bayo processing plant.
Mandalay Resources (‘Mandalay’) commenced processing of low-grade stockpiles after recommissioning the 0.5Mtpa Cerro
Bayo flotation plant in late February 2021. 4 Since that time and up till 30 June 2021 Mandalay have processed 183,029t of ore
to produce 2,531 oz of gold and 130,761 oz of silver.5 Equus’ option provides a near zero cash outlay to acquire 100% of the
Cerro Bayo Project including the Project´s mining properties, resources and mine infrastructure, including the now fully
operational plant from Mandalay Resources Corporation. 6
Equus is aggressively advancing drill testing of high priority brownfields drill targets, many of which are located along trend of
several key historic producing mines within 3km from the processing plant and infrastructure.
Within the expansive 295km2 mining claim package at Cerro Bayo, Equus is evaluating potential for additional feedstock for
the plant based on the delineation of a JORC 2012 compliant inferred resource at Taitao of 302koz gold equivalent oz at 2.5
g/t Au equivalent,7 the remnant NI 43.101 resource at the Marcela Mine (21.8KOz gold, 2.74 Moz oz silver with an average
grade of 2.53 g/t gold, 318 g/t silver)8 and potential extensions to mineralisation adjacent to other historic mines throughout
the Cerro Bayo Project. Furthermore, the company is aggressively assessing what it believes to be compelling exploration
potential at our Pegaso and Droughtmaster targets, as well as >100 historically identified veins throughout the Cerro Bayo
district that the company considers to remain underexplored.
Under Equus’ potential re-start scenario, both open pit and underground resources beneath the historic Taitao Open Pit and
underground Marcela Mine potentially could provide initial supply ‘feeder’ ore to the Cerro Bayo processing plant, which has
capacity to process 1,500 tonnes per day.
1 ASX Announcement - Equus Executes Agreement to Explore and Option to Acquire Mandalay Resources Corporation’s Cerro Bayo Mining Project
https://wcsecure.weblink.com.au/pdf/EQE/02117478.pdf
2 ASX Announcement – BROAD ZONES OF SHALLOW GOLD-SILVER MINERALISATION CONFIRMED BENEATH TAITAO PIT AT CERRO BAYO
3 ASX Announcement - DRILLING CONFIRMS BROAD ZONES OF SHALLOW MINERALISATION BELOW TAITAO PIT
https://wcsecure.weblink.com.au/pdf/EQE/02247975.pdf
https://wcsecure.weblink.com.au/pdf/EQE/02256113.pdf
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4 TSX Announcement - Mandalay Resources Corporation Announces Financial Results for the First Quarter of 2021
5 TSX Announcement - Mandalay Resources Corporation Announces Financial Results for the three and six months ended June 30, 2021
6 ASX Announcement - 8 October 2019 Equus Executes Option to Acquire Mandalay Resources Corporation’s Cerro Bayo Mining Project
7 ASX Announcement – Maiden Inferred Mineral Resource Estimate, Cerro Bayo Project &
Gold equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + 0.0128 x Ag g/t
8 ASX Announcement – 26th Oct 2020 Further Shallow High-Grade Gold-Silver Results From Droughtmaster and Project Update
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2021 ANNUAL REPORT | 5
Review of Operations
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2021 ANNUAL REPORT | 7
Equus Mining Limited Review of Operations For the Year Ended 30 June 2021 4 | PageBROWNFIELDS EXPLORATION & DEVELOPMENT TAITAO PIT Taitao was previously only mined to only shallow depths of ~35-45m throughout an approximate 50m wide by 1,000m long zone and Equus believes that there remains significant potential for additional resources beneath and along strike of the existing mined areas. Exploration During the period, confirmatory drilling was completed in order to delineate a JORC 2012 compliant Mineral Resource centred on the historically mined Taitao Pit. From April to June 2020 the Company completed 11 holes (totalling 1,385m) of resource confirmatory drilling beneath and peripheral to the Taitao Pit to confirm results and interpretations based on the large volume of historical drill data from the Pit area generated from previous operators of the Cerro Bayo Project dating back to 1996. In mid-July, the Company released results from the drilling (Figures 3, 4), with significant intercepts at both NE Taitao (CBD034 & CBD030) and Central Taitao (CBD033) including: 9 ►Hole CBD034: 28.6m at 1.14 g/t gold and 8.6 g/t silver from 48m including; 7.65m at 2.27 g/t gold and 10.67 g/tsilver from 56.9m;►Hole CBD030: 0.7m at 23.2 g/t gold and 111.0 g/t silver from 15.9m►Hole CBD033: 5.9m at 1.28 g/t gold and 24.4 g/t silver from 50.34mCBD030 and CBD034 confirmed substantial wide and well-mineralised zones identified in historical drilling data below the old pit from NE Taitao, with better historical results including:6 NE Taitao ►22.77m at 2.11 g/t gold, 12.99 g/t silver from 25m, incl. 9m at 3.26 g/t gold, 16.41 g/t silver from 25m;►37.35m at 2.09 g/t gold, 9.58 g/t silver from 38.71m, incl. 13.6m at 3.96 g/t gold, 14.18 g/t silver from 55.4m;►16.96m at 2.2 g/t gold, 18.48 g/t silver from 22m, incl. 5m at 4.49 g/t gold, 35.12 g/t silver from 22m;Central Taitao ►16m at 2.5 g/t gold and 104.3 g/t silver►3.0m at 3.3 g/t gold and 288.0 g/t silver►6.4m at 1.2 g/t gold and 382.9 g/t silverFigure 3 - Cerro Bayo Project - Diamond Drilling within the historic Taitao Pit9ASX Announcement - Drilling Confirms Broad Zones of Shallow Mineralisation Below Taitao Pit – details regarding the reporting of the historical results noted on page 9 https://wcsecure.weblink.com.au/pdf/EQE/02256113.pdf Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Figure 4 - Taitao Pit, with Equus and historical drillhole summary results and location of nearby processing plant
Taito Pit Mineral Resource Estimate
In December 2020, the Company announced a maiden Inferred Mineral Resource of 302,000 gold equivalent ounces at 2.5
g/t Au equivalent10 situated under and peripheral to the historically mined Taitao Pit located within the Company’s Cerro Bayo
Project, Chile11(Figures 5, 6, 7, 8).
The Maiden Taitao MRE is reported in Table 1. The Mineral Resource estimate is classified and reported in accordance with
the 2012 JORC guidelines with relevant details provided in the JORC (2012) Table 1.
Table 1 – Taitao Inferred Mineral Resource Estimate December 2020
Cut-off
grade
(AuEq g/t)
0.8 g/t
2.0 g/t
Tonnes
(kt)
2,915
901
3,816
Au (g/t)
Ag (g/t)
1.6
2.7
1.9
38
77
48
AuEq
(g/t)
2.1
3.7
2.5
Au (koz)
Ag (koz)
148
79
227
3,602
2,242
5,844
AuEq
(koz)
194
108
302
Open pit
Underground
Total - Inferred
10 Gold equivalent (AuEq) is based on the formula AuEq g/t = Au g/t + 0.0128 x Ag g/t
11 ASX Announcement – Maiden Inferred Resource Estimate at Cerro Bayo
https://wcsecure.weblink.com.au/pdf/EQE/02325391.pdf
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2021 ANNUAL REPORT | 7
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Equus Mining Limited Review of Operations For the Year Ended 30 June 2021 4 | PageBROWNFIELDS EXPLORATION & DEVELOPMENT TAITAO PIT Taitao was previously only mined to only shallow depths of ~35-45m throughout an approximate 50m wide by 1,000m long zone and Equus believes that there remains significant potential for additional resources beneath and along strike of the existing mined areas. Exploration During the period, confirmatory drilling was completed in order to delineate a JORC 2012 compliant Mineral Resource centred on the historically mined Taitao Pit. From April to June 2020 the Company completed 11 holes (totalling 1,385m) of resource confirmatory drilling beneath and peripheral to the Taitao Pit to confirm results and interpretations based on the large volume of historical drill data from the Pit area generated from previous operators of the Cerro Bayo Project dating back to 1996. In mid-July, the Company released results from the drilling (Figures 3, 4), with significant intercepts at both NE Taitao (CBD034 & CBD030) and Central Taitao (CBD033) including: 9 ►Hole CBD034: 28.6m at 1.14 g/t gold and 8.6 g/t silver from 48m including; 7.65m at 2.27 g/t gold and 10.67 g/tsilver from 56.9m;►Hole CBD030: 0.7m at 23.2 g/t gold and 111.0 g/t silver from 15.9m►Hole CBD033: 5.9m at 1.28 g/t gold and 24.4 g/t silver from 50.34mCBD030 and CBD034 confirmed substantial wide and well-mineralised zones identified in historical drilling data below the old pit from NE Taitao, with better historical results including:6 NE Taitao ►22.77m at 2.11 g/t gold, 12.99 g/t silver from 25m, incl. 9m at 3.26 g/t gold, 16.41 g/t silver from 25m;►37.35m at 2.09 g/t gold, 9.58 g/t silver from 38.71m, incl. 13.6m at 3.96 g/t gold, 14.18 g/t silver from 55.4m;►16.96m at 2.2 g/t gold, 18.48 g/t silver from 22m, incl. 5m at 4.49 g/t gold, 35.12 g/t silver from 22m;Central Taitao ►16m at 2.5 g/t gold and 104.3 g/t silver►3.0m at 3.3 g/t gold and 288.0 g/t silver►6.4m at 1.2 g/t gold and 382.9 g/t silverFigure 3 - Cerro Bayo Project - Diamond Drilling within the historic Taitao Pit9ASX Announcement - Drilling Confirms Broad Zones of Shallow Mineralisation Below Taitao Pit – details regarding the reporting of the historical results noted on page 9 https://wcsecure.weblink.com.au/pdf/EQE/02256113.pdf
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Notes:
1. Mineral Resources are classified and reported in accordance with the 2012 JORC Code.
2. Mineral Resources are defined using a long-term gold price of US$1,850 per ounce and a silver price of US$24 per ounce.
3. Open pit Mineral Resources are reported at a cut-off grade of 0.8 g/t AuEq. Pit optimisation shells were used to constrain the resources.
4.
5. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0128 x Ag based on a gold and silver price of US$1,850/oz and US$24/oz and
Underground Mineral Resources are reported at a cut-off of 2.0 g/t AuEq beneath the open pit shells.
recoveries of gold and silver of 86% and 85% respectively.
Epithermal vein domains are modelled between hangingwall and footwall contacts. No internal selectivity, minimum mining width or dilution
has been applied.
Stockwork domains are modelled using a Selective Mining Unit (SMU) of X=2.5m, Y=5m, Z=2.5m. Dilution has been incorporated into the
SMU.
A bulk density of 2.64 g/cm3 has been applied to the epithermal veins. A bulk density of 2.57 g/cm3 has been applied to the stockwork and
waste domains.
Numbers may not add due to rounding
6.
7.
8.
9.
The MRE was based on significant historical drilling and data undertaken and collected by previous owners including local
Chilean subsidiaries of Freeport Mining, Coeur Mining and Mandalay Resources, as well as the confirmatory drilling
undertaken by Equus between April and June 2020. Historical drilling was comprised of Diamond Drilling, Reverse Circulation,
and Surface and Underground Exploratory tunnel continuous rock channels. Detailed historical data included:
► Diamond Drilling – totaling 693 holes for an approximate total of 65,580m.
► Reverse Circulation- totaling 487 holes for an approximate total of 46,559m.
► Surface and Underground continuous Rock channel – total of 566 channels for an approximate total of 4,293m.
Furthermore, the confirmatory drilling undertaken by Equus was comprised of diamond drilling totalling 1,385m in 11 holes.
The database of historical data has been validated and compiled by Equus Mining geologists and reviewed by a Chile based
Competent Person who have reconciled a representative amount of available hardcopy drill logs and assay results against the
digital drill hole database.
Resource comparison 2020 to 2021
The companys´ maiden resource estimate was first reported on 22 December 2020 after which, to date, no further drilling or
update to the resource estimate has been made, and hence no material changes have occurred since its´ original publication.
Governance Arrangements
Equus management and Board of Directors include individuals with many years’ work experience in the mineral exploration
and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company
by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In
the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The
Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that
are automatically backed up for storage and retrieval purposes.
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2021 ANNUAL REPORT | 9
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Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Notes:
6.
7.
8.
9.
1. Mineral Resources are classified and reported in accordance with the 2012 JORC Code.
2. Mineral Resources are defined using a long-term gold price of US$1,850 per ounce and a silver price of US$24 per ounce.
3. Open pit Mineral Resources are reported at a cut-off grade of 0.8 g/t AuEq. Pit optimisation shells were used to constrain the resources.
4.
Underground Mineral Resources are reported at a cut-off of 2.0 g/t AuEq beneath the open pit shells.
5. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0128 x Ag based on a gold and silver price of US$1,850/oz and US$24/oz and
recoveries of gold and silver of 86% and 85% respectively.
Epithermal vein domains are modelled between hangingwall and footwall contacts. No internal selectivity, minimum mining width or dilution
Stockwork domains are modelled using a Selective Mining Unit (SMU) of X=2.5m, Y=5m, Z=2.5m. Dilution has been incorporated into the
A bulk density of 2.64 g/cm3 has been applied to the epithermal veins. A bulk density of 2.57 g/cm3 has been applied to the stockwork and
has been applied.
SMU.
waste domains.
Numbers may not add due to rounding
The MRE was based on significant historical drilling and data undertaken and collected by previous owners including local
Chilean subsidiaries of Freeport Mining, Coeur Mining and Mandalay Resources, as well as the confirmatory drilling
undertaken by Equus between April and June 2020. Historical drilling was comprised of Diamond Drilling, Reverse Circulation,
and Surface and Underground Exploratory tunnel continuous rock channels. Detailed historical data included:
► Diamond Drilling – totaling 693 holes for an approximate total of 65,580m.
► Reverse Circulation- totaling 487 holes for an approximate total of 46,559m.
► Surface and Underground continuous Rock channel – total of 566 channels for an approximate total of 4,293m.
Furthermore, the confirmatory drilling undertaken by Equus was comprised of diamond drilling totalling 1,385m in 11 holes.
The database of historical data has been validated and compiled by Equus Mining geologists and reviewed by a Chile based
Competent Person who have reconciled a representative amount of available hardcopy drill logs and assay results against the
digital drill hole database.
Resource comparison 2020 to 2021
The companys´ maiden resource estimate was first reported on 22 December 2020 after which, to date, no further drilling or
update to the resource estimate has been made, and hence no material changes have occurred since its´ original publication.
Governance Arrangements
Equus management and Board of Directors include individuals with many years’ work experience in the mineral exploration
and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company
by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In
the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The
Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that
are automatically backed up for storage and retrieval purposes.
Figure 5 – Plan View of US$1850 oz Au and US$24 oz Ag Taitao pit optimisation resource reporting shell
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2021 ANNUAL REPORT | 9
Figure 6 – Section 4,841,250N with US$1850 oz Au and US$24 oz Ag Taitao pit optimisation resource reporting shell
Review of Operations
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Figure 7 – Section 4,841,950N with US$1850 oz Au and US$24 oz Ag Taitao pit optimisation resource reporting shell
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2021 ANNUAL REPORT | 11
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Review of Operations
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Figure 7 – Section 4,841,950N with US$1850 oz Au and US$24 oz Ag Taitao pit optimisation resource reporting shell
Figure 8 – Isometric view of blocks below US$1850 oz Au and US$24 oz Ag Taitao pit optimisation resource reporting shell
PEGASO TARGETS
The Pegaso I-V Targets represent five high-priority brownfields targets with a cumulative strike length of more than 3.5km.
The targets are located within 2km from the Cerro Bayo 1,500tpd flotation plant and geologically comprise the interpreted
underexplored north-western extensions of major host faults to mineralisation mined historically. Drill testing of the targets is
focused on the intersection of the host faults and favourable stratigraphy for vein development beneath and along strike of
relatively shallow high-grade results reported from low density and wide spaced historic drilling.
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Figure 9 - Pegaso I-V targets located within 2km of the Cerro Bayo Gold-Silver Plant
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Exploration
During the period, the Company initially completed a detailed mapping and sampling program across the Pegaso II, Pegaso
III and Pegaso IV Targets as the basis for design of a subsequent Stage 1 25-hole (5,500m) diamond drill program which is
ongoing.
Rock-chip Sampling Results
A total of 112 samples were collected, with results confirming high-grade silver mineralisation across all three targets, including
a peak value of 4.6 g/t gold and 2,810 g/t silver (47.83 g/t Au equivalent12) (Figure 10)13-14. Sample results relate to
continuous rock chip channel samples of outcropping quartz veins and breccias with widths of between 0.1 to 3m.
At Pegaso II, 19 samples were collected averaging a grade of 0.8 g/t gold and 408 g/t silver (7.07 g/t Au equivalent12).
including the peak value of 4.6 g/t gold and 2,810 g/t silver (47.83 g/t Au equivalent12). A further 18 samples collected
averaged a grade of 0.2 g/t gold and 49.5 g/t silver (0.96 g/t Au equivalent12) including a peak value of 0.9 g/t gold and 239.0
g/t silver (4.58 g/t Au equivalent12).
Pegaso III initially saw 6 samples collected averaging a grade of 0.5 g/t gold and 71 g/t silver including a peak value of 0.4 g/t
gold and 149 g/t silver. A further 32 samples collected averaged a grade of 2.9 g/t gold and 506.5 g/t silver (10.69 g/t Au
equivalent12) including a peak value of 17.8 g/t gold and 4,350.0 g/t silver (84.7 g/t Au equivalent12). Importantly, the
higher-grade samples (generally > 3 g/t Au equivalent) report to outcropping veining along an approximate 300m long strike
length below which to date only limited drill testing has been conducted.
Pegaso IV saw 27 samples collected averaging a grade of 0.7 g/t gold and 93.0 g/t silver including a peak value of 4.92 g/t
gold and 45 g/t silver (5.61 g/t Au equivalent12). A further 7 samples collected averaged a grade of 0.3 g/t gold and 45.5 g/t
silver including a peak value of 1.0 g/t gold and 96.7 g/t silver.
Figure 10 – Pegaso Targets, with location of rock-chip samples within the mapped vein hosting trends
12 Gold equivalent (AuEq) is based on the formula AuEq = Au + (Ag/65)
13ASX Announcement - Sampling Delivers High Grade Silver Results from Pegaso Brownfield Targets & Upcoming Investor Webinar
https://wcsecure.weblink.com.au/pdf/EQE/02271139.pdf
14ASX Announcement - Sampling Delivers Further High-Grade Silver Results from Pegaso Targets
https://wcsecure.weblink.com.au/pdf/EQE/02279829.pdf
10 | P a g e
12 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 13
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Exploration
ongoing.
Rock-chip Sampling Results
During the period, the Company initially completed a detailed mapping and sampling program across the Pegaso II, Pegaso
III and Pegaso IV Targets as the basis for design of a subsequent Stage 1 25-hole (5,500m) diamond drill program which is
A total of 112 samples were collected, with results confirming high-grade silver mineralisation across all three targets, including
a peak value of 4.6 g/t gold and 2,810 g/t silver (47.83 g/t Au equivalent12) (Figure 10)13-14. Sample results relate to
continuous rock chip channel samples of outcropping quartz veins and breccias with widths of between 0.1 to 3m.
At Pegaso II, 19 samples were collected averaging a grade of 0.8 g/t gold and 408 g/t silver (7.07 g/t Au equivalent12).
including the peak value of 4.6 g/t gold and 2,810 g/t silver (47.83 g/t Au equivalent12). A further 18 samples collected
averaged a grade of 0.2 g/t gold and 49.5 g/t silver (0.96 g/t Au equivalent12) including a peak value of 0.9 g/t gold and 239.0
g/t silver (4.58 g/t Au equivalent12).
Pegaso III initially saw 6 samples collected averaging a grade of 0.5 g/t gold and 71 g/t silver including a peak value of 0.4 g/t
gold and 149 g/t silver. A further 32 samples collected averaged a grade of 2.9 g/t gold and 506.5 g/t silver (10.69 g/t Au
equivalent12) including a peak value of 17.8 g/t gold and 4,350.0 g/t silver (84.7 g/t Au equivalent12). Importantly, the
higher-grade samples (generally > 3 g/t Au equivalent) report to outcropping veining along an approximate 300m long strike
length below which to date only limited drill testing has been conducted.
Pegaso IV saw 27 samples collected averaging a grade of 0.7 g/t gold and 93.0 g/t silver including a peak value of 4.92 g/t
gold and 45 g/t silver (5.61 g/t Au equivalent12). A further 7 samples collected averaged a grade of 0.3 g/t gold and 45.5 g/t
silver including a peak value of 1.0 g/t gold and 96.7 g/t silver.
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Exploration Drilling
The Company commenced first stage drilling on the Pegaso II and III targets15 with the initial focus on defining potential
extensions to high-grade historical intercepts16 and beneath high Au-Ag grade rock chip geochemical results that were
completed at the start of the period17 & 18.
Key historical drill and surface geochemical results highlighting the good potential of the targets included:
► PEGASO II Target:
► Historical drill hole: DCO001: 7.04m @ 3.37g/t gold and 153.6 g/t silver from 69.51m including 1.23m @
7.57 g/t gold and 304.9 g/t silver (12.3 g/t Au equivalent 12) from 69.51m19
► Rockchip geochemical results: peak value of 4.6 g/t gold and 2,810 g/t silver (47.83 g/t Au equivalent
12)
► PEGASO III Target:
► Historical drill hole: CGH165: 5.05m at 19.45 g/t gold and 302.69 g/t silver (24.1 g/t Au equivalent12)
from 87.95m.
► Rockchip geochemical results: peak value of 17.8 g/t gold and 4,350.0g/t silver (84.7 g/t Au equivalent12)
Hole CBD045 (total depth 356.8m), was drilled at a shallow inclination (-27°) immediately to the southeast of the Mineral
Resources optimised pit shell based on the maiden Inferred Mineral Resource Estimate (MRE) at the Taitao area of 302,000
gold equivalent ounces at 2.5 g/t Au equivalent 20 and reported multiple significant results including 21:
► 2.05m @ 6.61 g/t gold and 44.2 g/t silver (7.29 g/t gold equivalent12) from 9.1m including 0.25m @ 46.80 g/t gold,
287.0 g/t silver gold from 10.9m
► 0.35m @ 3.44 g/t gold and 75.6 g/t silver (4.6 g/t gold equivalent12) from 81.5m
► 0.59m @ 4.04 g/t gold and 252.0 g/t silver (7.92 g/t gold equivalent12) from 88.65m
► 0.34m @ 7.45 g/t gold and 11.3 g/t silver (7.62g/t gold equivalent12) from 148.22m
► 0.78m @ 8.34 g/t gold and 16.84 g/t silver (8.6 g/t gold equivalent12) from 289.88m including 0.3m @ 16.00 g/t
gold, 26.1 g/t silver from 289.88m
Hole CBD045 provided confirmation that the high-grade mineralisation intersected through historical drilling extends and
continues along strike in between the historical drilling and production area and importantly marginal to the current Taitao
provisional pit boundary.22
Final assay results were received prior to and after the year end for seven holes (CBD051 – CBD057) totalling 1858.65m
completed over an approximate 500m long central portion of the 1km long Pegaso II target (Figure 11 &12).
Figure 10 – Pegaso Targets, with location of rock-chip samples within the mapped vein hosting trends
12 Gold equivalent (AuEq) is based on the formula AuEq = Au + (Ag/65)
13ASX Announcement - Sampling Delivers High Grade Silver Results from Pegaso Brownfield Targets & Upcoming Investor Webinar
https://wcsecure.weblink.com.au/pdf/EQE/02271139.pdf
14ASX Announcement - Sampling Delivers Further High-Grade Silver Results from Pegaso Targets
https://wcsecure.weblink.com.au/pdf/EQE/02279829.pdf
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12 | EQUUS MINING LIMITED
15 ASX Announcement - Further Shallow High-Grade Gold-Silver Results Extends Footprint Of Mineralised System At Droughtmaster
https://wcsecure.weblink.com.au/pdf/EQE/02316526.pdf
16 ASX Announcement – Review of Historical Drilling Generates New Gold-Silver Brownfields Targets at Cerro Bayo
https://wcsecure.weblink.com.au/pdf/EQE/02266302.pdf
17 ASX announcement 25th Aug 2020 Sampling Delivers High Grade Silver Results
https://wcsecure.weblink.com.au/pdf/EQE/02271139.pdf
18 ASX announcement 11 September 2020 High grade silver rock chip results at Cerro Bayo
https://wcsecure.weblink.com.au/pdf/EQE/02279829.pdf
19 ASX Announcement – Review of Historical Drilling Generates New Gold-Silver Brownfields Targets at Cerro Bayo
https://wcsecure.weblink.com.au/pdf/EQE/02266302.pdf
20 ASX Announcement - Maiden Inferred Resource Estimate at Cerro Bayo
https://wcsecure.weblink.com.au/pdf/EQE/02325391.pdf
21 ASX Announcement - High-Grade Gold-Silver Results at Pegaso And Commencement of Stockpile Processing
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
22 ASX Announcement - High-Grade Gold-Silver Results at Pegaso And Commencement of Stockpile Processing
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
11 | P a g e
2021 ANNUAL REPORT | 13
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
Significant results reported to date include:23 24
► CBD051
0.35m @ 3.37 g/t Au and 154 g/t Ag (5.74 g/t Au equivalent120) from 151.45m
0.2m @ 4.49 g/t Au and 182 g/t Ag (7.29 g/t Au equivalent120) from 258.95m
► CBD052
1.53m @ 1.35 g/t Au and 189.14 g/t Ag (4.26 g/t Au equivalent12) from 96m incl. 0.25m @ 1.6
g/t Au, 269.0 g/t Ag (5.73 g/t Au equivalent12) from 96.47m
1.66m @ 2.88 g/t Au and 152.25 g/t Ag (5.22 g/t Au equivalent12) from 189.02m incl. 0.78m @
5.11 g/t Au, 254.6 g/t Ag (9.03 g/t Au equivalent12) from 189.9m
► CBD053
0.24m @ 7.07 g/t Au and 63.8 g/t Ag (8.05 g/t Au equivalent12) from 187.56m
► CBD054
0.38m @ 5.84 g/t Au and 656 g/t Ag (15.93 g/t Au equivalent12) from 169.27m
► CBD056
14.05m @ 0.48 g/t Au and 139.21 g/t Ag (2.62 g/t Au equivalent12) from 53.15 Incl. 2.77m @
1.09 g/t Au, 263.34 g/t Ag (5.14 g/t Au equivalent12) from 55.95m
0.7m @ 1.35 g/t Au and 324.79 g/t Ag (6.35 g/t Au equivalent12) from 74.85m
0.68m @ 2.25 g/t Au and 201.0 g/t Ag (5.34 g/t Au equivalent12) from 87.47m
0.53m @ 3.17 g/t Au and 297.0 g/t Ag (7.74 g/t Au equivalent12) from 133.27m
► CBD057
0.41m @ 5.62 g/t Au and 159 g/t Ag (8.07 g/t Au equivalent120) from 18.29m
0.65m @ 2.8 g/t Au and 159 g/t Ag (5.25 g/t Au equivalent12) from 229.56m
Post year end, a further 684.60m has been drilled at Pegaso II in three holes (CBD061-63) for which results remain
outstanding.
Drilling to date has confirmed the extension of high-grade mineralisation in multiple structures along a significant portion of the
1km long Pegaso II trend to the northwest and along trend within 250m of the Delia NW mine (Figures 11&12).24
23 ASX Announcement 18 May 2021 - High Grade Pegaso Drill Results Confirm Potential of Mineralisation Along Trend From Historic Mines &
24 ASX Announcement 5 August 2021 - Exploration Activity Accelerated As High-Grade Pegaso Results Confirm Extensions To Mineralisation From Historic Mines
12 | P a g e
14 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 15
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Significant results reported to date include: 23 24
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
► CBD051
► CBD052
► CBD053
► CBD054
► CBD056
► CBD057
0.35m @ 3.37 g/t Au and 154 g/t Ag (5.74 g/t Au equivalent120) from 151.45m
0.2m @ 4.49 g/t Au and 182 g/t Ag (7.29 g/t Au equivalent120) from 258.95m
1.53m @ 1.35 g/t Au and 189.14 g/t Ag (4.26 g/t Au equivalent12) from 96m incl. 0.25m @ 1.6
g/t Au, 269.0 g/t Ag (5.73 g/t Au equivalent12) from 96.47m
1.66m @ 2.88 g/t Au and 152.25 g/t Ag (5.22 g/t Au equivalent12) from 189.02m incl. 0.78m @
5.11 g/t Au, 254.6 g/t Ag (9.03 g/t Au equivalent12) from 189.9m
0.24m @ 7.07 g/t Au and 63.8 g/t Ag (8.05 g/t Au equivalent12) from 187.56m
0.38m @ 5.84 g/t Au and 656 g/t Ag (15.93 g/t Au equivalent12) from 169.27m
14.05m @ 0.48 g/t Au and 139.21 g/t Ag (2.62 g/t Au equivalent12) from 53.15 Incl. 2.77m @
1.09 g/t Au, 263.34 g/t Ag (5.14 g/t Au equivalent12) from 55.95m
0.7m @ 1.35 g/t Au and 324.79 g/t Ag (6.35 g/t Au equivalent12) from 74.85m
0.68m @ 2.25 g/t Au and 201.0 g/t Ag (5.34 g/t Au equivalent12) from 87.47m
0.53m @ 3.17 g/t Au and 297.0 g/t Ag (7.74 g/t Au equivalent12) from 133.27m
0.41m @ 5.62 g/t Au and 159 g/t Ag (8.07 g/t Au equivalent120) from 18.29m
0.65m @ 2.8 g/t Au and 159 g/t Ag (5.25 g/t Au equivalent12) from 229.56m
Post year end, a further 684.60m has been drilled at Pegaso II in three holes (CBD061-63) for which results remain
outstanding.
Drilling to date has confirmed the extension of high-grade mineralisation in multiple structures along a significant portion of the
1km long Pegaso II trend to the northwest and along trend within 250m of the Delia NW mine (Figures 11&12).24
Figure 11 – Plan view showing summary drill results and interpreted veining intersections.
23 ASX Announcement 18 May 2021 - High Grade Pegaso Drill Results Confirm Potential of Mineralisation Along Trend From Historic Mines &
24 ASX Announcement 5 August 2021 - Exploration Activity Accelerated As High-Grade Pegaso Results Confirm Extensions To Mineralisation From Historic Mines
Figure 12 - Pegaso II Long Section: showing drill hole vein pierce points based on Equus and historical drill results.
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Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
14 | EQUUS MINING LIMITED
During the period, the Company completed wide spaced drilling focused on interpreted shallow portions of the Pegaso III
Target structure comprising a total of 3 holes (CBD047-CBD049) for 689.20m, which intersected encouraging high-level
mineralisation for which results include:
2021 ANNUAL REPORT | 15
► CBD047:
► CBD048:
► CBD049:
0.28m @ 1.12 g/t Au, 91.9 g/t Ag (2.53 g/t Au equivalent12) from 120.78m
0.68m @ 1.12 g/t Au, 126 g/t Ag (3.06 g/t Au equivalent12) from 122.55m
1.8m @ 1.1 g/t Au, 54.4 g/t Ag (1.92 g/t Au equivalent12) from 72.88m
Further drill testing of the Pegaso III target both along strike and at deeper levels is underway.
3.3m @ 0.36 g/t Au, 28.91 g/t Ag (0.81 g/t Au equivalent12) from 39.2m
DROUGHTMASTER
The Droughtmaster Prospect was identified by Equus from mapping, sampling and review of historical data as a
underexplored, high priority Greenfields drill target hosting widespread epithermal veining located 12km from the Cerro Bayo
processing facility. The precious metal bearing zones of veining and brecciation intersected in drilling to date correspond
predominantly to a series of hanging wall splays to the large scale, north-west trending Percheron Fault, which has been
mapped over a strike length of approximately 3km.
Exploration
40.35m
During the period, the Company completed 10 diamond holes of its stage 2 program at Droughtmaster totalling 2,029m, which
targeted multiple gold-silver mineralised vein structures. Significant results include25:
► CBD042: 0.2m @ 1.64 g/t gold and 16.6 g/t silver from 32.26m and 0.63m @ 0.67 g/t gold and 112 g/t silver from
► CBD043: 0.6m @ 1.06 g/t gold and 99.2 g/t silver from 32.05m
► CBD044: peak individual value of 0.34m @ 2.16 g/t gold and 31.2 g/t silver from 68.24m
Hole CBD044 is interpreted to represent the shallow levels of the southeastern extension of high-grade mineralisation
intercepted in results previously reported in the 2020 period from holes CBD016, CBD020, CBD037 and CBD039A over an
approximate strike length of 100m, which included (Figure 14).
► Hole CB01626:
► Hole CB02027:
► Hole CBD03728:
0.64m @ 1.44 g/t gold, 240.0 g/t silver (5.13 g/t gold equivalent12) from 68.10m
0.62m @ 17.28 g/t gold, 271.0 g/t silver (21.45 g/t gold equivalent12) from 73.5m
1.01m @ 5.32 g/t gold, 43.1 g/t silver (5.98 g/t gold equivalent12) from 96.57m
3.81m @ 20.4 g/t gold, 55.5 g/t Ag silver (21.25 g/t gold equivalent12) from 109m, including 1.06m @
62.58 g/t gold, 129.3 g/t Ag silver from 112m.
2.05m @ 2.36 g/t gold, 151.4 g/t silver from 56.40m, including 0.42m @ 9.86 g/t gold, 469.0 g/t silver
(17.07 g/t gold equivalent12) from 58.03m
0.24m @ 7.84 g/t gold, 73.0 g/t silver (8.96 g/t gold equivalent12) from 66.70m
0.21m @ 13.10 g/t gold, 566.0 g/t silver (21.8 g/t gold equivalent12) from 81.6m
25 ASX Announcement – 11 February 2021 High-Grade Gold-Silver Results at Pegaso And Commencement of Stockpile Processing
26 ASX Announcement – 16 April 2020 Shallow High-Grade Gold-Silver Drill Results from Droughtmaster Prospect and Commencement of Drilling at Taitao Pit
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
https://wcsecure.weblink.com.au/pdf/EQE/02225391.pdf
27 ASX Announcement - 25 May 2020 Standout Intersection Bolsters Droughtmaster Potential -https://wcsecure.weblink.com.au/pdf/EQE/02238028.pdf
28 ASX Announcement - 26th October 2020 Further Shallow High-Grade Gold-Silver Results from Droughtmaster And Project Update
https://wcsecure.weblink.com.au/pdf/EQE/02298655.pdf
14 | P a g e
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Review of Operations
Figure 12 - Pegaso II Long Section: showing drill hole vein pierce points based on Equus and historical drill results.
During the period, the Company completed wide spaced drilling focused on interpreted shallow portions of the Pegaso III
Target structure comprising a total of 3 holes (CBD047-CBD049) for 689.20m, which intersected encouraging high-level
mineralisation for which results include:
► CBD047:
0.28m @ 1.12 g/t Au, 91.9 g/t Ag (2.53 g/t Au equivalent12) from 120.78m
0.68m @ 1.12 g/t Au, 126 g/t Ag (3.06 g/t Au equivalent12) from 122.55m
► CBD048:
1.8m @ 1.1 g/t Au, 54.4 g/t Ag (1.92 g/t Au equivalent12) from 72.88m
► CBD049:
3.3m @ 0.36 g/t Au, 28.91 g/t Ag (0.81 g/t Au equivalent12) from 39.2m
Further drill testing of the Pegaso III target both along strike and at deeper levels is underway.
DROUGHTMASTER
The Droughtmaster Prospect was identified by Equus from mapping, sampling and review of historical data as a
underexplored, high priority Greenfields drill target hosting widespread epithermal veining located 12km from the Cerro Bayo
processing facility. The precious metal bearing zones of veining and brecciation intersected in drilling to date correspond
predominantly to a series of hanging wall splays to the large scale, north-west trending Percheron Fault, which has been
mapped over a strike length of approximately 3km.
Exploration
During the period, the Company completed 10 diamond holes of its stage 2 program at Droughtmaster totalling 2,029m, which
targeted multiple gold-silver mineralised vein structures. Significant results include25:
► CBD042: 0.2m @ 1.64 g/t gold and 16.6 g/t silver from 32.26m and 0.63m @ 0.67 g/t gold and 112 g/t silver from
40.35m
► CBD043: 0.6m @ 1.06 g/t gold and 99.2 g/t silver from 32.05m
► CBD044: peak individual value of 0.34m @ 2.16 g/t gold and 31.2 g/t silver from 68.24m
Hole CBD044 is interpreted to represent the shallow levels of the southeastern extension of high-grade mineralisation
intercepted in results previously reported in the 2020 period from holes CBD016, CBD020, CBD037 and CBD039A over an
approximate strike length of 100m, which included (Figure 14).
► Hole CB01626:
0.64m @ 1.44 g/t gold, 240.0 g/t silver (5.13 g/t gold equivalent12) from 68.10m
0.62m @ 17.28 g/t gold, 271.0 g/t silver (21.45 g/t gold equivalent12) from 73.5m
1.01m @ 5.32 g/t gold, 43.1 g/t silver (5.98 g/t gold equivalent12) from 96.57m
► Hole CB02027:
3.81m @ 20.4 g/t gold, 55.5 g/t Ag silver (21.25 g/t gold equivalent12) from 109m, including 1.06m @
62.58 g/t gold, 129.3 g/t Ag silver from 112m.
► Hole CBD03728:
2.05m @ 2.36 g/t gold, 151.4 g/t silver from 56.40m, including 0.42m @ 9.86 g/t gold, 469.0 g/t silver
(17.07 g/t gold equivalent12) from 58.03m
0.24m @ 7.84 g/t gold, 73.0 g/t silver (8.96 g/t gold equivalent12) from 66.70m
0.21m @ 13.10 g/t gold, 566.0 g/t silver (21.8 g/t gold equivalent12) from 81.6m
25 ASX Announcement – 11 February 2021 High-Grade Gold-Silver Results at Pegaso And Commencement of Stockpile Processing
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
26 ASX Announcement – 16 April 2020 Shallow High-Grade Gold-Silver Drill Results from Droughtmaster Prospect and Commencement of Drilling at Taitao Pit
https://wcsecure.weblink.com.au/pdf/EQE/02225391.pdf
27 ASX Announcement - 25 May 2020 Standout Intersection Bolsters Droughtmaster Potential -https://wcsecure.weblink.com.au/pdf/EQE/02238028.pdf
28 ASX Announcement - 26th October 2020 Further Shallow High-Grade Gold-Silver Results from Droughtmaster And Project Update
https://wcsecure.weblink.com.au/pdf/EQE/02298655.pdf
14 | P a g e
16 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 17
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
Figure 12 - Pegaso II Long Section: showing drill hole vein pierce points based on Equus and historical drill results.
During the period, the Company completed wide spaced drilling focused on interpreted shallow portions of the Pegaso III
Target structure comprising a total of 3 holes (CBD047-CBD049) for 689.20m, which intersected encouraging high-level
mineralisation for which results include:
► CBD047:
► CBD048:
► CBD049:
0.28m @ 1.12 g/t Au, 91.9 g/t Ag (2.53 g/t Au equivalent12) from 120.78m
0.68m @ 1.12 g/t Au, 126 g/t Ag (3.06 g/t Au equivalent12) from 122.55m
1.8m @ 1.1 g/t Au, 54.4 g/t Ag (1.92 g/t Au equivalent12) from 72.88m
Further drill testing of the Pegaso III target both along strike and at deeper levels is underway.
3.3m @ 0.36 g/t Au, 28.91 g/t Ag (0.81 g/t Au equivalent12) from 39.2m
DROUGHTMASTER
The Droughtmaster Prospect was identified by Equus from mapping, sampling and review of historical data as a
underexplored, high priority Greenfields drill target hosting widespread epithermal veining located 12km from the Cerro Bayo
processing facility. The precious metal bearing zones of veining and brecciation intersected in drilling to date correspond
predominantly to a series of hanging wall splays to the large scale, north-west trending Percheron Fault, which has been
mapped over a strike length of approximately 3km.
Exploration
40.35m
During the period, the Company completed 10 diamond holes of its stage 2 program at Droughtmaster totalling 2,029m, which
targeted multiple gold-silver mineralised vein structures. Significant results include25:
► CBD042: 0.2m @ 1.64 g/t gold and 16.6 g/t silver from 32.26m and 0.63m @ 0.67 g/t gold and 112 g/t silver from
► CBD043: 0.6m @ 1.06 g/t gold and 99.2 g/t silver from 32.05m
► CBD044: peak individual value of 0.34m @ 2.16 g/t gold and 31.2 g/t silver from 68.24m
Hole CBD044 is interpreted to represent the shallow levels of the southeastern extension of high-grade mineralisation
intercepted in results previously reported in the 2020 period from holes CBD016, CBD020, CBD037 and CBD039A over an
approximate strike length of 100m, which included (Figure 14).
► Hole CB01626:
► Hole CB02027:
► Hole CBD03728:
0.64m @ 1.44 g/t gold, 240.0 g/t silver (5.13 g/t gold equivalent12) from 68.10m
0.62m @ 17.28 g/t gold, 271.0 g/t silver (21.45 g/t gold equivalent12) from 73.5m
1.01m @ 5.32 g/t gold, 43.1 g/t silver (5.98 g/t gold equivalent12) from 96.57m
3.81m @ 20.4 g/t gold, 55.5 g/t Ag silver (21.25 g/t gold equivalent12) from 109m, including 1.06m @
62.58 g/t gold, 129.3 g/t Ag silver from 112m.
2.05m @ 2.36 g/t gold, 151.4 g/t silver from 56.40m, including 0.42m @ 9.86 g/t gold, 469.0 g/t silver
(17.07 g/t gold equivalent12) from 58.03m
0.24m @ 7.84 g/t gold, 73.0 g/t silver (8.96 g/t gold equivalent12) from 66.70m
0.21m @ 13.10 g/t gold, 566.0 g/t silver (21.8 g/t gold equivalent12) from 81.6m
25 ASX Announcement – 11 February 2021 High-Grade Gold-Silver Results at Pegaso And Commencement of Stockpile Processing
26 ASX Announcement – 16 April 2020 Shallow High-Grade Gold-Silver Drill Results from Droughtmaster Prospect and Commencement of Drilling at Taitao Pit
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
https://wcsecure.weblink.com.au/pdf/EQE/02225391.pdf
27 ASX Announcement - 25 May 2020 Standout Intersection Bolsters Droughtmaster Potential -https://wcsecure.weblink.com.au/pdf/EQE/02238028.pdf
28 ASX Announcement - 26th October 2020 Further Shallow High-Grade Gold-Silver Results from Droughtmaster And Project Update
https://wcsecure.weblink.com.au/pdf/EQE/02298655.pdf
14 | P a g e
Equus Mining Limited
Review of Operations
Review of Operations
For the Year Ended 30 June 2021
► Hole CBD039A 29:
3m @ 9.17 g/t gold, 172.9 g/t silver from 68.75m, including 2.09m @ 12.53 g/t gold, 210.09 g/t
silver (15.76 g/t gold equivalent12) from 69.18m
Significant shallow intercepts from historical holes adjacent to and within approximately 150m along trend to the southeast of
hole CBD044 include30 (Figure 13):
► MH-24: 4.65m @ 2.59 g/t gold, 185.65 g/t silver (5.45 g/t gold equivalent12) (from 58.60 including 0.76m @ 6.05
g/t gold, 762.6 g/t silver (17.78 g/t gold equivalent12) from 62.49m
► MH-29: 3.04m @ 0.65 g/t gold, 113.2 g/t silver (2.39 g/t gold equivalent12) from 25.13m
► MH-30: 3.45m @1.11 g/t gold, 18.8 g/t silver (1.40 g/t gold equivalent12) from 56.03m
A follow-up drill program is being designed provisionally comprising 15-holes for a total of approx. 3,000m that will target
potential high grade extensions along the Percheron Fault corridor.
Figure 10 – Droughtmaster Prospect – Plan showing vein outcrop and summary drillhole geochemical results
16 | EQUUS MINING LIMITED
29 ASX Announcement – 1 December 2020 Further High Grade Gold Silver Results at Droughtmaster - https://wcsecure.weblink.com.au/pdf/EQE/02316526.pdf
30 ASX Announcement -11 February 2021 High-Grade Gold-Silver Results at Pegaso and Commencement of Stockpile Processing
https://wcsecure.weblink.com.au/pdf/EQE/02340221.pdf
15 | P a g e
2021 ANNUAL REPORT | 17
Review of Operations
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
LOS DOMOS PROJECT
The Los Domos gold-silver project is located 15km south of the township of Chile Chico and 20km southeast of the Cerro
Bayo gold-silver mine and treatment plant, which is held under an option for acquisition by Equus from Mandalay Resources,
Region XI, Chile. The project area´s altitude range of 800-1200m and a dry, moderate climate permits year-round exploration.
During the year ended 30 June 2020, Equus incorporated a joint venture company “Equus Patagonia SpA” with Patagonia
Gold SCM, the Chilean subsidiary of Patagonia Gold Corp (TSXV: PGDC). This entity incorporates the Company´s 75%
interest in the mining concessions owned by Patagonia Gold SCM, which form part of the Los Domos Project. Southern Gold
SpA can acquire a further 20% interest in the Mining Concessions via sole funding exploration through the Equus Patagonia
SpA joint venture company at which point Patagonia Gold SCM has the right to retain a 5% free carried interest or convert its
equity into a 1.5% NSR.
Only limited surface exploration activities and environmental studies were completed during the reporting period.
CERRO DIABLO PROJECT
The Cerro Diablo Project is located approximately 24km to the north-northwest of the Cerro Bayo gold-silver mine and
treatment plant. The project is situated in the interpreted northwest limit of the world-class Deseado Massif mineral province,
where it extends into southern Chile, in a corridor also broadly coincident with the slightly younger Andean-type arc and back-
arc tectonic belt which host epithermal, skarn, porphyry and volcanic-hosted massive sulfide (VHMS) style mineral
occurrences.
With the focus of exploration efforts during the reporting period targeted towards evaluation and discovery of resources close
to infrastructure throughout the Cerro Bayo Project, work and expenditure on both the Los Domos and Cerro Diablo Projects
were limited principally to maintenance of claim tenure.
Both projects are viewed to host good, underexplored potential for precious and base metals and the Company during the
course of the 2022 financial year plans to undertake limited work including mapping and sampling.
CORPORATE
On 20 July 2020, the Company announced a placement to institutional and sophisticated investors to raise $3.5M. The
placement comprised of 388.89 million shares at $0.009 per share. The placement was issued in two tranches:
•
•
Tranche 1 – 348,886,300 Placement Shares raising $3.14 Million before costs.
Tranche 2 – 40,002,589 Placement Shares to raise $0.36 million before costs.
On 21 May 2021, the Company announced a placement to institutional and sophisticated investors to raise $7M and a Share
Purchase Plan (SPP) to existing eligible shareholders to raise $0.5M. The placement and the SPP were offered at $0.011 per
share.
Institutional Placement of $7M
The placement comprised of 431.4 million shares at $0.011 per share. The placement was issued in two tranches:
•
•
Tranche 1 - 431,390,000 Placement Shares raising $4.745 Million before costs.
Tranche 2 - 204,973,636 Placement Shares to raise $2.255 Million before costs. Tranche 2 was completed
subsequent to 30 June 2021.
Share Purchase Plan of $0.5M
The SPP closed on 11 June 2021 significantly oversubscribed and it was scale-back in accordance with the terms and
conditions of the SPP.
.
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Review of Operations
Equus Mining Limited
Review of Operations
For the Year Ended 30 June 2021
LOS DOMOS PROJECT
The Los Domos gold-silver project is located 15km south of the township of Chile Chico and 20km southeast of the Cerro
Bayo gold-silver mine and treatment plant, which is held under an option for acquisition by Equus from Mandalay Resources,
Region XI, Chile. The project area´s altitude range of 800-1200m and a dry, moderate climate permits year-round exploration.
During the year ended 30 June 2020, Equus incorporated a joint venture company “Equus Patagonia SpA” with Patagonia
Gold SCM, the Chilean subsidiary of Patagonia Gold Corp (TSXV: PGDC). This entity incorporates the Company´s 75%
interest in the mining concessions owned by Patagonia Gold SCM, which form part of the Los Domos Project. Southern Gold
SpA can acquire a further 20% interest in the Mining Concessions via sole funding exploration through the Equus Patagonia
SpA joint venture company at which point Patagonia Gold SCM has the right to retain a 5% free carried interest or convert its
Only limited surface exploration activities and environmental studies were completed during the reporting period.
equity into a 1.5% NSR.
CERRO DIABLO PROJECT
The Cerro Diablo Project is located approximately 24km to the north-northwest of the Cerro Bayo gold-silver mine and
treatment plant. The project is situated in the interpreted northwest limit of the world-class Deseado Massif mineral province,
where it extends into southern Chile, in a corridor also broadly coincident with the slightly younger Andean-type arc and back-
arc tectonic belt which host epithermal, skarn, porphyry and volcanic-hosted massive sulfide (VHMS) style mineral
occurrences.
With the focus of exploration efforts during the reporting period targeted towards evaluation and discovery of resources close
to infrastructure throughout the Cerro Bayo Project, work and expenditure on both the Los Domos and Cerro Diablo Projects
were limited principally to maintenance of claim tenure.
Both projects are viewed to host good, underexplored potential for precious and base metals and the Company during the
course of the 2022 financial year plans to undertake limited work including mapping and sampling.
On 20 July 2020, the Company announced a placement to institutional and sophisticated investors to raise $3.5M. The
placement comprised of 388.89 million shares at $0.009 per share. The placement was issued in two tranches:
Tranche 1 – 348,886,300 Placement Shares raising $3.14 Million before costs.
Tranche 2 – 40,002,589 Placement Shares to raise $0.36 million before costs.
On 21 May 2021, the Company announced a placement to institutional and sophisticated investors to raise $7M and a Share
Purchase Plan (SPP) to existing eligible shareholders to raise $0.5M. The placement and the SPP were offered at $0.011 per
The placement comprised of 431.4 million shares at $0.011 per share. The placement was issued in two tranches:
Tranche 1 - 431,390,000 Placement Shares raising $4.745 Million before costs.
Tranche 2 - 204,973,636 Placement Shares to raise $2.255 Million before costs. Tranche 2 was completed
The SPP closed on 11 June 2021 significantly oversubscribed and it was scale-back in accordance with the terms and
CORPORATE
•
•
•
•
share.
Institutional Placement of $7M
subsequent to 30 June 2021.
Share Purchase Plan of $0.5M
conditions of the SPP.
.
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Equus Mining Limited Review of Operations For the Year Ended 30 June 2021 17 | Page Compliance statement The information in this report that relates to Exploration Results for the Cerro Bayo Project is based on information compiled by Damien Koerber. Mr Koerber is a fulltime employee to the Company. Mr Koerber is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Koerber has a beneficial interest as shareholder of Equus Mining Limited and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. No Material Changes Equus Mining Limited confirms that it is not aware of any new information or data that materially affects the information included in this Annual Report and that all information continues to apply. Yours sincerely John Braham Executive Director Dated this 30th day of September 2021
Equus Mining Limited
Corporate Governance Statement
Corporate Governance Statement
For the Year Ended 30 June 2021
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having
a set of core values and behaviours that underpin the Company's activities and ensure transparency, fair dealing and protection
of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The 2021 corporate governance statement is dated 30 September 2021 and reflects the corporate governance practices
throughout the 2021 financial year. The board approved the 2021 corporate governance on 30 September 2021. A description
of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement, which
can be viewed at http://www.equusmining.com/corporate-governance/.
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Equus Mining Limited
Corporate Governance Statement
For the Year Ended 30 June 2021
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having
a set of core values and behaviours that underpin the Company's activities and ensure transparency, fair dealing and protection
of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate
Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
The 2021 corporate governance statement is dated 30 September 2021 and reflects the corporate governance practices
throughout the 2021 financial year. The board approved the 2021 corporate governance on 30 September 2021. A description
of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement, which
can be viewed at http://www.equusmining.com/corporate-governance/.
Directors’ Report
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
The Directors present their report, together with the consolidated financial statements of the Group, comprising of Equus
Mining Limited ('Equus' or 'the Company') and its controlled entities for the financial year ended 30 June 2021 and the auditor’s
report thereon.
DIRECTORS
The names and details of the Directors in office during or since the end of the previous financial year are as follows. Directors
were in office for the entire year unless otherwise stated.
Mark Hamish Lochtenberg, Non-Executive Chairman
Director since 10 October 2014
Mr Lochtenberg graduated with a Bachelor of Law (Hons) degree from Liverpool University, U.K. and has been actively
involved in the coal industry for more than 30 years.
Mark Lochtenberg is Non Executive Director of public listed Nickel Mines Limited and is the former Executive Chairman and
founding Managing Director of ASX-listed Baralaba Coal Company Limited (formerly Cockatoo Coal Limited). He was a
principal architect of Cockatoo’s inception and growth from an early-stage grassroots explorer through to an emerging
mainstream coal producer. He was also formerly the co-head of Glencore International AG’s worldwide coal division, where
he spent 13 years overseeing a range of trading activities including the identification, due diligence, negotiation, acquisition
and aggregation of the coal project portfolio that would become Xstrata Coal.
Prior to this Mark established a coal “swaps” market for Bain Refco, (Deutsche bank) after having served as a senior coal
trader for Hansen Neuerburg AG and as coal marketing manager for Peko Wallsend Limited.
Mr Lochtenberg is currently Non-Executive Director of public listed company Nickel Mines Limited, Director of Australian
Transport, Energy Corridor Pty Limited and Montem Resources Limited.
He has not served as a director of any other listed company during the past three years.
John Richard Braham, Managing Director
Director since 13 November 2018
Mr Braham is an experienced Mining Finance and Investment professional with a 24-year career at Macquarie Bank, the last
11 of which were as an Executive Director within the Mining Finance Division.
John built and ran a successful mining finance business in New York for Macquarie Bank from 2001 to 2008, providing capital
to the junior mining industry. This involved providing debt and equity to exploration companies and mine developers in both
North and South America including companies operating in Argentina, Peru and Chile.
On returning to Australia, John built a successful bulk commodity finance business for Macquarie Bank which he ran from
2008 to 2017 based in Sydney. John is a Director of public listed company Castile Resources Limited.
He has not served as a director of any other listed company during the past three years.
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Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
Damien John Koerber, Executive Director, Chief Operating Officer
Director since 27 November 2019
Mr Koerber commenced with Equus in 2012 as exploration manager at the Naltagua copper project in Chile which brought
considerable senior management and technical experience in the resources industry, from both in Australia and throughout
South America.
Mr Koerber is a geologist with 30 years of exploration experience, mainly throughout and based in Latin America. He has held
senior management and consulting exploration and business development positions in companies including Billiton Gold
(Northern Territory and Western Australia), North (Chile), Rio Algom (Chile), Newcrest (Chile, Argentina and Peru), MIM
(Argentina and Brazil), Patagonia Gold SA (Chile and Argentina) and Mirasol Resources (Chile and Argentina).
During his career, he has been directly involved in several discoveries including Cleo-Sunrise Dam (Western Australia),
Tanami (Northern Territory), Union Reefs (Northern Territory) and Cap Oeste-COSE (Argentina).
Mr Koerber graduated from the UNSW (BSc. Geology Hons Class 1) in 1989 and is a bilingual, Australian geologist.
He has not served as a director of any other listed company during the past three years.
Robert Ainslie Yeates, Non-Executive Director
Director since 20 July 2015
Dr Yeates is a graduate of the University of NSW, completing a Bachelor of Engineering (Honours 1) in 1971 and a PhD in
1977 and then an MBA in 1986 from Newcastle University. He began his career with Peko Wallsend working in a variety of
roles including mining engineering, project management, mine management and marketing.
He became General Manager Marketing for Oakbridge Pty Limited in 1989 following a merger with the Peko Wallsend coal
businesses and went on to become Managing Director of Oakbridge, which was the largest coal mining company in NSW at
that time, operating one open cut and five underground coal mines.
Dr Yeates also has gained operating, business development and infrastructure experience as a director of Port Waratah Coal
Services (Newcastle Port), Port Kembla Coal Terminal, Great Northern Mining Corporation NL and Cyprus Australia Coal and
for the past 20 years has been principal of his own mine management consultancy, providing a wide range of technical,
management and strategic planning services to the mining industry. Until 2014 he was also Project Director then CEO of
Newcastle Coal Infrastructure Group, which has developed and is operating coal export facilities in Newcastle.
Dr Yeates was until 2015 and for the prior ten years a director in ASX-listed Baralaba Coal Company Limited (formerly
Cockatoo Coal Limited), and from 2016 to 2019 he was a director of Watagan Mining Ltd and from 2018 to early 2020 was a
director of Montem Resources Limited.
He has not served as a director of any other listed company during the past three years.
David (Ted) Harcourt Coupland, Non-Executive Director
Director since 21 June 2021
Ted Coupland has over 30 years of experience in the mining, exploration and resource finance industry and holds qualifications
in geology, geostatistics, mineral economics and finance. Ted has had a comprehensive technical career in the resources
sector covering exploration, mine geology, resource estimation, risk analysis, resource consulting and business
management. Ted spent 6 years between 2013 and 2018 working in Macquarie Bank's Mining Finance team where he
specialised in technical due diligence, deal origination, client relationship management, principal equity investing, mezzanine
finance, structured project finance and commodity derivative structures. As a professional Geologist and Geostatistician, Ted
has been involved with many technically challenging resource projects around the globe covering a range of commodities
including gold, silver, copper, base metals, PGM’s, bauxite and coal.
Ted holds a Bachelor of Science (Geology) from the University of New England, Post-Graduate Degree in Geostatistics from
the Paris School of Mines, Post-Graduate Diploma in Mineral Economics from Macquarie University and a Post-Graduate
Diploma in Applied Finance and Investment from the Securities Institute of Australia. Ted is a Corporate Member of the
Australasian Institute of Mining and Metallurgy (AusIMM). Mr Coupland is currently a Director of public listed company Odin
Metals Limited.
He has not served as a director of any other listed company during the past three years.
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2021 ANNUAL REPORT | 23
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
Damien John Koerber, Executive Director, Chief Operating Officer
Director since 27 November 2019
Mr Koerber commenced with Equus in 2012 as exploration manager at the Naltagua copper project in Chile which brought
considerable senior management and technical experience in the resources industry, from both in Australia and throughout
South America.
Mr Koerber is a geologist with 30 years of exploration experience, mainly throughout and based in Latin America. He has held
senior management and consulting exploration and business development positions in companies including Billiton Gold
(Northern Territory and Western Australia), North (Chile), Rio Algom (Chile), Newcrest (Chile, Argentina and Peru), MIM
(Argentina and Brazil), Patagonia Gold SA (Chile and Argentina) and Mirasol Resources (Chile and Argentina).
Mr Koerber graduated from the UNSW (BSc. Geology Hons Class 1) in 1989 and is a bilingual, Australian geologist.
He has not served as a director of any other listed company during the past three years.
Robert Ainslie Yeates, Non-Executive Director
Director since 20 July 2015
Dr Yeates is a graduate of the University of NSW, completing a Bachelor of Engineering (Honours 1) in 1971 and a PhD in
1977 and then an MBA in 1986 from Newcastle University. He began his career with Peko Wallsend working in a variety of
roles including mining engineering, project management, mine management and marketing.
He became General Manager Marketing for Oakbridge Pty Limited in 1989 following a merger with the Peko Wallsend coal
businesses and went on to become Managing Director of Oakbridge, which was the largest coal mining company in NSW at
that time, operating one open cut and five underground coal mines.
Dr Yeates also has gained operating, business development and infrastructure experience as a director of Port Waratah Coal
Services (Newcastle Port), Port Kembla Coal Terminal, Great Northern Mining Corporation NL and Cyprus Australia Coal and
for the past 20 years has been principal of his own mine management consultancy, providing a wide range of technical,
management and strategic planning services to the mining industry. Until 2014 he was also Project Director then CEO of
Newcastle Coal Infrastructure Group, which has developed and is operating coal export facilities in Newcastle.
Dr Yeates was until 2015 and for the prior ten years a director in ASX-listed Baralaba Coal Company Limited (formerly
Cockatoo Coal Limited), and from 2016 to 2019 he was a director of Watagan Mining Ltd and from 2018 to early 2020 was a
director of Montem Resources Limited.
He has not served as a director of any other listed company during the past three years.
David (Ted) Harcourt Coupland, Non-Executive Director
Director since 21 June 2021
Ted Coupland has over 30 years of experience in the mining, exploration and resource finance industry and holds qualifications
in geology, geostatistics, mineral economics and finance. Ted has had a comprehensive technical career in the resources
sector covering exploration, mine geology, resource estimation, risk analysis, resource consulting and business
management. Ted spent 6 years between 2013 and 2018 working in Macquarie Bank's Mining Finance team where he
specialised in technical due diligence, deal origination, client relationship management, principal equity investing, mezzanine
finance, structured project finance and commodity derivative structures. As a professional Geologist and Geostatistician, Ted
has been involved with many technically challenging resource projects around the globe covering a range of commodities
including gold, silver, copper, base metals, PGM’s, bauxite and coal.
Ted holds a Bachelor of Science (Geology) from the University of New England, Post-Graduate Degree in Geostatistics from
the Paris School of Mines, Post-Graduate Diploma in Mineral Economics from Macquarie University and a Post-Graduate
Diploma in Applied Finance and Investment from the Securities Institute of Australia. Ted is a Corporate Member of the
Australasian Institute of Mining and Metallurgy (AusIMM). Mr Coupland is currently a Director of public listed company Odin
Metals Limited.
He has not served as a director of any other listed company during the past three years.
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Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
COMPANY SECRETARY
Marcelo Mora
Company Secretary since 16 October 2012
Marcelo Mora holds a Bachelor of Business degree and Graduate Diploma of Applied Corporate Governance. Mr Mora has
been an accountant for more than 30 years and has experience in resources and mining companies both in Australia and
internationally, providing financial reporting and company secretarial services to a range of publicly listed companies.
DIRECTORS’ MEETINGS
During his career, he has been directly involved in several discoveries including Cleo-Sunrise Dam (Western Australia),
Tanami (Northern Territory), Union Reefs (Northern Territory) and Cap Oeste-COSE (Argentina).
The number of Directors’ meetings and number of meetings attended by each of the Directors (while they were a Director) of
the Company during the year are:
Director
Mark H. Lochtenberg
John R. Braham
Damien J. Koerber
Robert A. Yeates
David (Ted) H. Coupland
Board Meetings
Held
3
3
3
3
3
Attended
3
3
3
3
-
DIRECTORS’ INTERESTS
At the date of this report, the beneficial interests of each director of the Company in the issued share capital of the Company
and options, each exercisable to acquire one fully paid ordinary share of the Company are:
Director
Mark H. Lochtenberg
Fully Paid
Ordinary
Shares
108,565,307
Options over
ordinary shares
Option Terms
(Exercise Price and Term)
11,111,111 $0.015 at any time up to 16 September 2023
John R. Braham
14,849,674
5,555,556 $0.015 at any time up to 16 September 2023
-
-
-
-
-
-
-
-
5,000,000 $0.050 at any time up to 13 November 2021
5,000,000 $0.070 at any time up to 13 November 2023
6,666,666 $0.027 at any time up to 13 November 2021
6,666,667 $0.030 at any time up to 13 November 2022
6,666,667 $0.035 at any time up to 13 November 2024
6,666,666 $0.022 at any time up to 25 November 2023
6,666,667 $0.025 at any time up to 25 November 2024
6,666,667 $0.027 at any time up to 25 November 2025
Damien J. Koerber
42,290,938
2,222,222 $0.015 at any time up to 16 September 2023
-
-
-
1,666,666 $0.022 at any time up to 25 November 2023
1,666,667 $0.025 at any time up to 25 November 2024
1,666,667 $0.027 at any time up to 25 November 2025
Robert A. Yeates
David (Ted) H. Coupland
6,870,767
15,999,573
3,333,333 $0.015 at any time up to 16 September 2023
1,111,111 $0.015 at any time up to 16 September 2023
During the year ended 30 June 2021 25,000,000 unlisted options were granted as compensation to directors of the Company
(2020: 35,000,000 unlisted options)
There were no options over unissued ordinary shares granted as compensation to directors or executives of the Company
during or since the end of the financial year.
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2021 ANNUAL REPORT | 23
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
OPTION HOLDINGS
Options granted to directors' and officers’
Since the end of the financial year, the Company did not grant any options over unissued ordinary shares to directors or
officers as part of their remuneration.
At the General Meeting held on 25 November 2020, the Company received shareholders’ approval to issue 20,000,000
unlisted options to John Braham as remuneration and 5,000,000 unlisted options to Damien Koerber as remuneration.
UNISSUED SHARES UNDER OPTIONS
At the date of this report, unissued ordinary shares of the Company under option are:
Number of Options
Employee Options
Attaching Options
Exercise Price
Expiry Date
5,000,000(1)
5,000,000(1)
6,666,666(1)
6,666,667(1)
6,666,667(1)
8,333,332(1)
8,333,334(1)
8,333,334(1)
2,500,000(1)
-
-
-
-
-
-
-
-
-
401,888,889
$0.050
$0.070
$0.027
$0.030
$0.035
$0.022
$0.025
$0.027
$0.022
$0.015
13 November 2021
13 November 2023
13 November 2021
13 November 2022
13 November 2024
25 November 2023
25 November 2024
25 November 2025
01 December 2023
16 September 2023
(1)In the event that the employment of the option holder is terminated by breach of its obligations to the Company, then the options shall lapse
upon written notification to the holder.
All options expire on their expiry date. The persons entitled to exercise the options do not have, by virtue of the options, the
right to participate in a share issue of the Company or any other body corporate.
SHARES ISSUED ON EXERCISE OF OPTIONS
During the financial year ended 30 June 2021, the Company issued 2,000,000 ordinary shares as a result of the exercise of
options (2020: nil). Since the end of the financial year, the Company has not issued ordinary shares as a result of the exercise
of options.
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Directors’ Report
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
OPTION HOLDINGS
Options granted to directors' and officers’
Since the end of the financial year, the Company did not grant any options over unissued ordinary shares to directors or
officers as part of their remuneration.
At the General Meeting held on 25 November 2020, the Company received shareholders’ approval to issue 20,000,000
unlisted options to John Braham as remuneration and 5,000,000 unlisted options to Damien Koerber as remuneration.
UNISSUED SHARES UNDER OPTIONS
At the date of this report, unissued ordinary shares of the Company under option are:
Number of Options
Employee Options
Attaching Options
Exercise Price
Expiry Date
5,000,000(1)
5,000,000(1)
6,666,666(1)
6,666,667(1)
6,666,667(1)
8,333,332(1)
8,333,334(1)
8,333,334(1)
2,500,000(1)
-
-
-
-
-
-
-
-
-
401,888,889
$0.050
$0.070
$0.027
$0.030
$0.035
$0.022
$0.025
$0.027
$0.022
$0.015
13 November 2021
13 November 2023
13 November 2021
13 November 2022
13 November 2024
25 November 2023
25 November 2024
25 November 2025
01 December 2023
16 September 2023
(1)In the event that the employment of the option holder is terminated by breach of its obligations to the Company, then the options shall lapse
upon written notification to the holder.
All options expire on their expiry date. The persons entitled to exercise the options do not have, by virtue of the options, the
right to participate in a share issue of the Company or any other body corporate.
SHARES ISSUED ON EXERCISE OF OPTIONS
During the financial year ended 30 June 2021, the Company issued 2,000,000 ordinary shares as a result of the exercise of
options (2020: nil). Since the end of the financial year, the Company has not issued ordinary shares as a result of the exercise
of options.
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Equus Mining Limited Directors’ Report For the Year Ended 30 June 2021 23 | PageCORPORATE INFORMATION Corporate Structure Equus Mining Limited is a limited liability company that is incorporated and domiciled in Australia. It has prepared a consolidated financial report incorporating the entities that it controlled during the financial year. The Group’s structure at 30 June 2021 is outlined below. EQUUS MINING LIMITED – GROUP STRUCTURE AT 30 JUNE 2021 The Companies referred above comprise the “Consolidated Entity” for the purposes of the Financial Statements included in this report. PRINCIPAL ACTIVITIES The principal activities of the Group during the course of the financial year was continuing its dual-track strategy of brownfields resource evaluation and Brownfields/Greenfields exploration to define sufficient resources to sustain a potential Cerro Bayo mine restart, and furthermore the maintenance of claims held by Equus for the nearby Los Domos and Cerro Diablo Projects. FINANCIAL RESULTS The consolidated loss after income tax attributable to members of the Company for the year was $1,716,498 (2020: $1,728,160 loss). REVIEW OF OPERATIONS A review of the Group's operations for the year ended 30 June 2021 is set out on pages 4 to 19 of this Annual Report. DIVIDENDS The Directors do not recommend the payment of a dividend in respect of the financial year ended 30 June 2021. No dividends have been paid or declared during the financial year (2020 - $nil).
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended 30
June 2021 were as follows:
On the 7th October 2019, Equus executed an agreement with Mandalay Resources Corporation (TSX:MND, OTCQB: MNDJF)
for a 3-year option to acquire Mandalay’s Cerro Bayo Project in Region XI, Southern Chile which remains the company’s key
focus. The Cerro Bayo Project and infrastructure is optimally situated nearby Equus’s Los Domos and Cerro Diablo Projects.
On 20 February 2021, Mandalay Resources (‘Mandalay’) commenced processing low-grade stockpiles via the re-
commissioning of the 0.5Mtpa Cerro Bayo flotation plant at the Cerro Bayo Project. Production from the low-grade stockpiles
is providing important information on plant operational parameters and efficiencies to support Equus’s Cerro Bayo mine restart
study during 2021.
During July 2020, the Company announced a placement to be conducted on two tranches and the Company issued
388,888,889 new ordinary shares and 388,888,889 unlisted options at an issue price of $0.009 per share for a total
consideration of $3,500,000 before costs. For every one placement share subscribed investors received one attaching option.
Each option has an exercise price of $0.015 expiring on 16 September 2023 and vests immediately.
The Company announced on 20 July 2020, pursuant to the share placement to grant 15,000,000 options to brokers of the
placement under the same terms and conditions as the options issued to investors in the placement.
On 25 November 2020, The Company issued 20,000,000 unlisted options to Mr John Braham as part of his employment
agreement for the 12 month period to November 2020 as follows:
•
•
•
6,666,666 options exercisable at $0.022 each vesting immediately and expiring on 25 November 2023;
6,666,667 options exercisable at $0.025 each vesting immediately and expiring on 25 November 2024;
6,666,667 options exercisable at $0.027 each vesting immediately and expiring on 25 November 2025;
On 25 November 2020, The Company issued 5,000,000 unlisted options to Mr Damien Koerber as follows:
•
•
•
1,666,666 options exercisable at $0.022 each vesting immediately and expiring on 25 November 2023;
1,666,667 options exercisable at $0.025 each vesting immediately and expiring on 25 November 2024;
1,666,667 options exercisable at $0.027 each vesting immediately and expiring on 25 November 2025;
On 1 December 2020, The Company issued 2,500,000 unlisted options to the Group’s Exploration Manager. Each option has
an exercise price of $0.022 expiring on 1 December 2023 and vests immediately.
On 9 December 2020, the Company issued 3,300,000 new ordinary fully paid shares to a supplier as consideration for
Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
On 14 January 2021, the Company issued 11,538,462 new ordinary shares fully paid shares to a supplier as consideration for
Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
On 3 February 2021, 2,000,000 unlisted options were converted at $0.015 and the Company received $30,000.
24 February 2021, the Company issued 1,250,000 new ordinary shares fully paid shares to a supplier as consideration for
Mine Technical Services provided in connection with the Cerro Bayo project in southern Chile.
12 May 2021, the Company issued 750,000 new ordinary shares fully paid shares to a supplier as consideration for Mine
Technical Services provided in connection with the Cerro Bayo project in southern Chile.
During May 2021, the Company announced a placement to be conducted on two tranches and a Share Purchase Plan (SPP).
•
•
•
The Placement was conducted under two tranches. Under tranche 1 the Company issued 431,390,000 new ordinary
shares at an issue price of $0.011 per share for a total consideration of $4,745,290 before costs.
Tranche 2 of the placement was completed subsequent to 30 June 2021 and the company issued 204,973,636
ordinary shares raising $2,254,710 before costs.
The SPP closed on 11 June 2021 and it was fully subscribed the Company issued 45,454,545 ordinary share at an
issue price of $0.011 per share for a total consideration of $500,000 before costs.
Other than the matters detailed above, there were no other significant changes in the affairs of the Company during the year.
24 | P a g e
26 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 27
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
CHANGES IN STATE OF AFFAIRS
June 2021 were as follows:
In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year ended 30
On the 7th October 2019, Equus executed an agreement with Mandalay Resources Corporation (TSX:MND, OTCQB: MNDJF)
for a 3-year option to acquire Mandalay’s Cerro Bayo Project in Region XI, Southern Chile which remains the company’s key
focus. The Cerro Bayo Project and infrastructure is optimally situated nearby Equus’s Los Domos and Cerro Diablo Projects.
On 20 February 2021, Mandalay Resources (‘Mandalay’) commenced processing low-grade stockpiles via the re-
commissioning of the 0.5Mtpa Cerro Bayo flotation plant at the Cerro Bayo Project. Production from the low-grade stockpiles
is providing important information on plant operational parameters and efficiencies to support Equus’s Cerro Bayo mine restart
study during 2021.
During July 2020, the Company announced a placement to be conducted on two tranches and the Company issued
388,888,889 new ordinary shares and 388,888,889 unlisted options at an issue price of $0.009 per share for a total
consideration of $3,500,000 before costs. For every one placement share subscribed investors received one attaching option.
Each option has an exercise price of $0.015 expiring on 16 September 2023 and vests immediately.
The Company announced on 20 July 2020, pursuant to the share placement to grant 15,000,000 options to brokers of the
placement under the same terms and conditions as the options issued to investors in the placement.
On 25 November 2020, The Company issued 20,000,000 unlisted options to Mr John Braham as part of his employment
agreement for the 12 month period to November 2020 as follows:
6,666,666 options exercisable at $0.022 each vesting immediately and expiring on 25 November 2023;
6,666,667 options exercisable at $0.025 each vesting immediately and expiring on 25 November 2024;
6,666,667 options exercisable at $0.027 each vesting immediately and expiring on 25 November 2025;
On 25 November 2020, The Company issued 5,000,000 unlisted options to Mr Damien Koerber as follows:
1,666,666 options exercisable at $0.022 each vesting immediately and expiring on 25 November 2023;
1,666,667 options exercisable at $0.025 each vesting immediately and expiring on 25 November 2024;
1,666,667 options exercisable at $0.027 each vesting immediately and expiring on 25 November 2025;
On 1 December 2020, The Company issued 2,500,000 unlisted options to the Group’s Exploration Manager. Each option has
an exercise price of $0.022 expiring on 1 December 2023 and vests immediately.
On 9 December 2020, the Company issued 3,300,000 new ordinary fully paid shares to a supplier as consideration for
Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
On 14 January 2021, the Company issued 11,538,462 new ordinary shares fully paid shares to a supplier as consideration for
Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
24 February 2021, the Company issued 1,250,000 new ordinary shares fully paid shares to a supplier as consideration for
Mine Technical Services provided in connection with the Cerro Bayo project in southern Chile.
12 May 2021, the Company issued 750,000 new ordinary shares fully paid shares to a supplier as consideration for Mine
Technical Services provided in connection with the Cerro Bayo project in southern Chile.
During May 2021, the Company announced a placement to be conducted on two tranches and a Share Purchase Plan (SPP).
The Placement was conducted under two tranches. Under tranche 1 the Company issued 431,390,000 new ordinary
shares at an issue price of $0.011 per share for a total consideration of $4,745,290 before costs.
Tranche 2 of the placement was completed subsequent to 30 June 2021 and the company issued 204,973,636
ordinary shares raising $2,254,710 before costs.
The SPP closed on 11 June 2021 and it was fully subscribed the Company issued 45,454,545 ordinary share at an
issue price of $0.011 per share for a total consideration of $500,000 before costs.
Other than the matters detailed above, there were no other significant changes in the affairs of the Company during the year.
•
•
•
•
•
•
•
•
•
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
ENVIRONMENTAL REGULATIONS
The Group’s operations are not subject to any significant environmental regulations under either Commonwealth or State
legislation.
The Group’s exploration activities in Chile are subject to environmental laws, regulations and permit conditions applicable in
Chile, in the country of operation.
The company is undertaking a range of mine related baseline and drill permitting environmental studies throughout the Cerro
Bayo Project pertaining to future potential mining, increasing tailings dam capacity and exploration.
The Board believes that the Group has adequate systems in place for the management of its environmental requirements and
is not aware of any breach of those environmental requirements as they apply to the Group.
LIKELY DEVELOPMENTS
During the course of the 2022 financial year, the Company will focus principally on advancing brownfield and greenfields
exploration drilling programs, resource evaluation and optimisation studies on the current production from the low grade
stockpiles of the Cerro Bayo Project to support a decision on the company’s option for the acquisition of the Cerro Bayo
Project.
Ongoing strategic assessment will continue for the nearby Los Domos and Cerro Diablo Projects and additional areas of
exploration interest in the vicinity of the Cerro Bayo Mine infrastructure. The Directors expect to execute future exploration
programs at Cerro Bayo, Los Domos and the Cerro Diablo gold-silver and polymetallic projects, results from which they will
make public in accordance with ASX listing rules once the information is received.
Further information as to likely developments in the operations of the Group and the expected results of those operations in
subsequent years have not been included in this report because disclosure of this information would be likely to result in
unreasonable prejudice to the Group.
EVENTS SUBSEQUENT TO BALANCE DATE
On 7 July 2021, the Company obtained approval at a shareholders’ meeting to issued tranche two of the placement announced
in May 2021 to institutional investors and a Director of the Company by issuing 204,973,636 ordinary shares at an issue price
of $0.011 raising $2,254,710 before costs.
On 14 September 2021, the Company issued 1,250,000 new ordinary shares fully paid shares to a supplier as consideration
for Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
Other than the matters detailed above, no other matters or circumstances have arisen in the interval between the end of the
financial year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of
the Directors of the Company, to affect significantly the operations of the Group, the results of those operations, or the state
of affairs of the Group, in future financial years.
On 3 February 2021, 2,000,000 unlisted options were converted at $0.015 and the Company received $30,000.
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During or since the end of the financial, the Company has not indemnified or made a relevant agreement to indemnify an
officer or auditor of the Company against a liability incurred as such by an officer or auditor. The Group has not paid or agreed
to pay, a premium in respect of a contract insuring against a liability incurred by an officer or auditor.
26 | EQUUS MINING LIMITED
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2021 ANNUAL REPORT | 27
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited
Principals of compensation - Audited
Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group.
Key management personnel comprise the directors of the Company. No other employees have been deemed to be key
management personnel.
The remuneration policy of Directors is to ensure the remuneration package properly reflects the persons' duties and
responsibilities, and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The
Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group's business
performance, whether long-term strategic objectives are being achieved, and the achievement of individual performance
objectives.
The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be
determined from time to time by a general meeting. The latest determination was at a shareholders meeting on 29 November
2005 when the shareholders approved an aggregate remuneration of $200,000 per year.
Remuneration generally comprises of salary and superannuation. Long-term incentives are able to be provided through the
Company's share option program, which acts, to align the Director's and senior executive's actions with the interests of the
shareholders.
The remuneration disclosed below represents the cost to the Group for services provided under these arrangements.
John Braham, Mark Lochtenberg and Damien Koerber are paid through the Company's payroll. All other Directors services
are paid by way of an arrangement with related parties.
There were no remuneration consultants used by the Company during the year ended 30 June 2021, or in the prior year.
Consequences of performance on shareholders' wealth - Audited
In considering the Group’s performance and benefits for shareholders' wealth, the Board has regard to the following indices
in respect of the current financial year and the previous four financial years.
Net loss attributable to equity holders of the parent
Dividends paid
Change in share price
2021
$
1,716,498
2020
$
1,728,160
-
-
-
-
2019
$
942,751
-
(0.02)
2018
$
2,142,214
-
-
2017
$
899,548
-
0.02
The overall level of key management personnel’s compensation has been determined based on market conditions, the
advancement of the Group’s projects and the financial performance of the Group.
Remuneration Structure - Audited
In accordance with better practice corporate governance, the structure of Executive Director and Non-Executive Director
remuneration is separate and distinct.
Service contracts - Audited
In accordance with better practice corporate governance the company provided each key management personnel with a letter
detailing the terms of appointment, including their remuneration. Key management personnel may at any time resign by written
notice.
28 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 29
26 | P a g e
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited
Principals of compensation - Audited
Key management personnel have authority and responsibility for planning, directing and controlling the activities of the Group.
Key management personnel comprise the directors of the Company. No other employees have been deemed to be key
management personnel.
The remuneration policy of Directors is to ensure the remuneration package properly reflects the persons' duties and
responsibilities, and that remuneration is competitive in attracting, retaining and motivating people of the highest quality. The
Board is responsible for reviewing its own performance. The evaluation process is designed to assess the Group's business
performance, whether long-term strategic objectives are being achieved, and the achievement of individual performance
objectives.
shareholders.
The Constitution and ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be
determined from time to time by a general meeting. The latest determination was at a shareholders meeting on 29 November
2005 when the shareholders approved an aggregate remuneration of $200,000 per year.
Remuneration generally comprises of salary and superannuation. Long-term incentives are able to be provided through the
Company's share option program, which acts, to align the Director's and senior executive's actions with the interests of the
The remuneration disclosed below represents the cost to the Group for services provided under these arrangements.
John Braham, Mark Lochtenberg and Damien Koerber are paid through the Company's payroll. All other Directors services
are paid by way of an arrangement with related parties.
There were no remuneration consultants used by the Company during the year ended 30 June 2021, or in the prior year.
Consequences of performance on shareholders' wealth - Audited
In considering the Group’s performance and benefits for shareholders' wealth, the Board has regard to the following indices
in respect of the current financial year and the previous four financial years.
Net loss attributable to equity holders of the parent
1,716,498
1,728,160
942,751
2,142,214
899,548
2021
$
2020
$
-
-
-
-
2019
$
-
(0.02)
2018
$
-
-
2017
$
-
0.02
The overall level of key management personnel’s compensation has been determined based on market conditions, the
advancement of the Group’s projects and the financial performance of the Group.
In accordance with better practice corporate governance, the structure of Executive Director and Non-Executive Director
Dividends paid
Change in share price
Remuneration Structure - Audited
remuneration is separate and distinct.
Service contracts - Audited
In accordance with better practice corporate governance the company provided each key management personnel with a letter
detailing the terms of appointment, including their remuneration. Key management personnel may at any time resign by written
notice.
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
Details of the nature and amount of each major element of the remuneration of each Director of the Company and other key
management personnel of the Company and Group are:
Executive Directors
John Braham
Damien Koerber
Non-Executive Directors
Robert Yeates
Juerg Walker (1)
Mark Lochtenberg
David (Ted) Coupland (2)
Total all directors
Primary
Salary / Fees Superannuation
Share-Based
Payments
Options
Short Term
Benefit
Total
Year
$
$
$
$
$
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
200,000
182,667
200,000
200,000
31,667
30,000
-
12,500
33,750
30,000
1,644
-
467,061
455,167
19,000
17,353
19,000
19,000
-
-
-
-
3,206
2,850
-
-
41,206
39,203
160,000
388,833
40,000
-
1,469
7,674
16,799
15,385
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
380,469
546,527
275,799
234,385
31,667
30,000
-
12,500
36,956
32,850
1,644
-
200,000
338,833
18,268
23,059
726,535
856,262
(1) Resigned as Director on 27 November 2019.
(2) Appointed as Director on 21 June 2021.
Executive Directors - Audited
During the financial year ended 30 June 2021, John Braham and Damien Koerber were considered Executive Directors. Their
remuneration for the year ended 30 June 2021 comprised of fixed remuneration plus 9.5% statutory superannuation paid
through the Company’s payroll. During the year, the Company received shareholder approval to issue 20,000,000 unlisted
options to Mr Braham and 5,000,000 unlisted options to Mr Koerber for no consideration as part of their remuneration. The
terms and conditions of the options are outlined below.
28 | EQUUS MINING LIMITED
26 | P a g e
27 | P a g e
2021 ANNUAL REPORT | 29
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
Options granted as compensation - Audited
No bonuses were paid during the financial year. Refer below for the Options granted to John Braham and Damien Koerber.
The Company employed no other key management personnel.
The options granted to key management personnel were not subject to any performance or service conditions and vested
immediately. Details of options granted as compensation to each key management person in the current and prior year:
Director
Grant Date
Number of
Options
Granted
Fair value per
option at grant
date
Fair Value
at Grant
Date
Option Terms
(Exercise Price and Term)
John Braham
14 October 2019
(1) 5,000,000
$0.0067
$33,500
John Braham
14 October 2019
(1) 5,000,000
$0.0086
$43,000
John Braham
14 October 2019
(1) 5,000,000
$0.0118
$59,000
John Braham
29 November 2019
(2) 6,666,666
$0.0084
$56,000
John Braham
29 November 2019
(2) 6,666,667
$0.0101
$67,333
John Braham
29 November 2019
(2) 6,666,667
$0.0120
$80,000
John Braham
25 November 2020
(3) 6,666,666
$0.007
$46,667
John Braham
25 November 2020
(4) 6,666,667
$0.008
$53,333
John Braham
25 November 2020
(4) 6,666,667
$0.009
$60,000
Damien Koerber
25 November 2020
(3) 1,666,666
$0.007
$11,667
Damien Koerber
25 November 2020
(4) 1,666,667
$0.008
$13,333
Damien Koerber
25 November 2020
(4) 1,666,667
$0.009
$15,000
$0.030 at any time to 13
November 2020
$0.050 at any time to 13
November 2021
$0.070 at any time to 13
November 2023
$0.027 at any time to 13
November 2021
$0.030 at any time to 13
November 2022
$0.035 at any time to 13
November 2024
$0.022 at any time to 25
November 2023
$0.025 at any time to 25
November 2024
$0.027 at any time to 25
November 2025
$0.022 at any time to 25
November 2023
$0.025 at any time to 25
November 2024
$0.027 at any time to 25
November 2025
• The fair value of the (1) 10,000,000 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.0155 at the grant date, a volatility factor of 152.60%
based on historic share price performance, a risk free rate of 0.71% based on the 2 year government bond rate and no
dividends paid.
The fair value of the (2) 20,000,000 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.014 at the grant date, a volatility factor of 149.46%
based on historic share price performance, a risk free rate of 0.65% based on the 3 year government bond rate and no
dividends paid.
• The fair value of the (3) 8,333,332 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.011 at the grant date, a volatility factor of 136.20%
based on historic share price performance, a risk free rate of 0.11% based on the 3 year government bond rate and no
dividends paid.
• The fair value of the (4) 16,666,668 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.011 at the grant date, a volatility factor of 136.20%
based on historic share price performance, a risk free rate of 0.30% based on the 5 year government bond and no dividends
paid.
During the year ended 30 June 2021 5,000,000 unlisted options lapsed (2020: nil) and no options held by key management
personnel were exercised during the 2021 or 2020 financial years.
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30 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 31
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
Options granted as compensation - Audited
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
No bonuses were paid during the financial year. Refer below for the Options granted to John Braham and Damien Koerber.
The Company employed no other key management personnel.
No terms of equity-settled share-based payment transactions (including options granted as compensation to a key
management person) have been altered or modified by the issuing entity during the 2021 and 2020 financial years.
The options granted to key management personnel were not subject to any performance or service conditions and vested
immediately. Details of options granted as compensation to each key management person in the current and prior year:
Exercise of options granted as compensation - Audited
Modification of terms of equity-settled share-based payment transactions - Audited
Director
Grant Date
Number of
Options
Granted
Fair value per
option at grant
date
Fair Value
at Grant
Date
Option Terms
(Exercise Price and Term)
John Braham
14 October 2019
(1) 5,000,000
$0.0067
$33,500
John Braham
14 October 2019
(1) 5,000,000
$0.0086
$43,000
John Braham
14 October 2019
(1) 5,000,000
$0.0118
$59,000
John Braham
29 November 2019
(2) 6,666,666
$0.0084
$56,000
John Braham
29 November 2019
(2) 6,666,667
$0.0101
$67,333
John Braham
29 November 2019
(2) 6,666,667
$0.0120
$80,000
John Braham
25 November 2020
(3) 6,666,666
$0.007
$46,667
John Braham
25 November 2020
(4) 6,666,667
$0.008
$53,333
John Braham
25 November 2020
(4) 6,666,667
$0.009
$60,000
Damien Koerber
25 November 2020
(3) 1,666,666
$0.007
$11,667
Damien Koerber
25 November 2020
(4) 1,666,667
$0.008
$13,333
Damien Koerber
25 November 2020
(4) 1,666,667
$0.009
$15,000
$0.030 at any time to 13
November 2020
$0.050 at any time to 13
November 2021
$0.070 at any time to 13
November 2023
$0.027 at any time to 13
November 2021
$0.030 at any time to 13
November 2022
$0.035 at any time to 13
November 2024
$0.022 at any time to 25
November 2023
$0.025 at any time to 25
November 2024
$0.027 at any time to 25
November 2025
$0.022 at any time to 25
November 2023
$0.025 at any time to 25
November 2024
$0.027 at any time to 25
November 2025
• The fair value of the (1) 10,000,000 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.0155 at the grant date, a volatility factor of 152.60%
based on historic share price performance, a risk free rate of 0.71% based on the 2 year government bond rate and no
The fair value of the (2) 20,000,000 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.014 at the grant date, a volatility factor of 149.46%
based on historic share price performance, a risk free rate of 0.65% based on the 3 year government bond rate and no
• The fair value of the (3) 8,333,332 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.011 at the grant date, a volatility factor of 136.20%
based on historic share price performance, a risk free rate of 0.11% based on the 3 year government bond rate and no
• The fair value of the (4) 16,666,668 options at grant date was determined based on a Black- Scholes formula. The model
inputs of the options issued, were the Company’s share price of $0.011 at the grant date, a volatility factor of 136.20%
based on historic share price performance, a risk free rate of 0.30% based on the 5 year government bond and no dividends
dividends paid.
dividends paid.
dividends paid.
paid.
During the year ended 30 June 2021 5,000,000 unlisted options lapsed (2020: nil) and no options held by key management
personnel were exercised during the 2021 or 2020 financial years.
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30 | EQUUS MINING LIMITED
There were no shares issued to Directors on the exercise of options previously granted as compensation during the 2021 and
2020 financial years.
Analysis of options and rights over equity instruments granted as compensation - Audited
All options refer to options over ordinary shares of Equus Mining Limited, which are exercisable on a one-for-one basis.
Options granted
Director
Number
Date
% vested
at year
end
Expired
during the
year
Balance at
year end
Financial year in
which grant
vests
John Braham
15,000,000 14 October 2019
100%
5,000,000
10,000,000
30 June 2020
John Braham
20,000,000 29 November 2019
John Braham
20,000,000 25 November 2020
Damien Koerber
5,000,000 25 November 2020
100%
100%
100%
-
-
-
20,000,000
30 June 2020
20,000,000
30 June 2021
5,000,000
30 June 2021
The number of options that had vested as at 30 June 2021 is 55,000,000 (2020 – 35,000,000). 25,000,000 options were
granted as remuneration during the year (2020: 35,000,000). No options were granted as compensation subsequent to year
end.
Analysis of movements in options granted as compensation - Audited
Director
Granted in the year
Valuation of options exercised
in the year
Lapsed in the year
John Braham
Damien Koerber
$160,000
$40,000
-
-
$33,500
-
Options and rights over equity instruments - Audited
The movement during the reporting period in the number of options over ordinary shares in the Company held directly,
indirectly or beneficially, by each key management person, including their personally related entities, is as follows:
Option holdings 2020 - Audited
Directors
Held at
1 July 2020
Granted/
Purchased
Exercised /
Sold
Expired
Held at
30 June 2021
Vested and
exercisable
at 30 June 2021
Mark Lochtenberg
-
-
John Braham
35,000,000
20,000,000
Damien Koerber
Robert Yeates
David (Ted) Coupland
-
-
-
5,000,000
-
-
-
-
-
-
-
-
-
-
5,000,000
50,000,000
50,000,000
-
-
-
5,000,000
5,000,000
-
-
-
-
Loans to key management personnel and their related parties - Audited
There were no loans made to key management personnel or their related parties during the 2021 and 2020 financial years
and no amounts were outstanding at 30 June 2021 (2020 - $nil).
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2021 ANNUAL REPORT | 31
Equus Mining Limited
Directors’ Report
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
Other transactions with key management personnel - Audited
There were no other transactions with key management personnel or their related parties during 2021.
At 30 June 2021, the amount outstanding for salaries, superannuation and directors fees were nil (2020: nil).
Movements in shares - Audited
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or
beneficially by each key management personnel, including their related parties, is as follows:
Fully paid ordinary shareholdings and transactions - 2021
Key management
personnel
Held at
30 June 2020
Purchases
Sales
Other
Mark Lochtenberg
51,999,651
11,111,111
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland *
9,294,118
40,068,716
3,537,434
-
5,555,556
2,222,222
3,333,333
-
* Number of shares held at date of appointment as a Director
Non-Executive Directors - Audited
-
-
-
-
-
-
-
-
-
15,999,573
Held at
30 June 2021
63,110,762
14,849,674
42,290,938
6,870,767
15,999,573
During the financial year ended 30 June 2021, the following Directors were considered Non-Executive Directors:
• Mark Lochtenberg;
•
Robert Yeates;
•
David (Ted) Coupland.
The salary component of Non-Executive Directors was made up of:
•
•
•
fixed remuneration;
9.5% statutory superannuation for Australian resident directors pay through the Company’s payroll; and
an entitlement to receive options, subject to shareholders’ approval.
The services of non-executive directors who are not paid through the Company’s payroll system are provided by way of
arrangements with related parties.
End of remuneration report.
32 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 33
30 | P a g e
Directors’ Report
Equus Mining Limited
Directors’ Report
For the Year Ended 30 June 2021
REMUNERATION REPORT - Audited (Con’t)
Other transactions with key management personnel - Audited
There were no other transactions with key management personnel or their related parties during 2021.
At 30 June 2021, the amount outstanding for salaries, superannuation and directors fees were nil (2020: nil).
Movements in shares - Audited
The movement during the reporting period in the number of ordinary shares in the Company held directly, indirectly or
beneficially by each key management personnel, including their related parties, is as follows:
Fully paid ordinary shareholdings and transactions - 2021
Key management
personnel
Held at
30 June 2020
Purchases
Sales
Other
30 June 2021
-
-
-
-
-
-
-
-
-
15,999,573
Held at
63,110,762
14,849,674
42,290,938
6,870,767
15,999,573
Mark Lochtenberg
51,999,651
11,111,111
John Braham
Damien Koerber
Robert Yeates
David (Ted) Coupland *
9,294,118
40,068,716
3,537,434
-
5,555,556
2,222,222
3,333,333
-
* Number of shares held at date of appointment as a Director
Non-Executive Directors - Audited
During the financial year ended 30 June 2021, the following Directors were considered Non-Executive Directors:
• Mark Lochtenberg;
Robert Yeates;
David (Ted) Coupland.
fixed remuneration;
•
•
•
•
•
End of remuneration report.
The salary component of Non-Executive Directors was made up of:
9.5% statutory superannuation for Australian resident directors pay through the Company’s payroll; and
an entitlement to receive options, subject to shareholders’ approval.
The services of non-executive directors who are not paid through the Company’s payroll system are provided by way of
arrangements with related parties.
32 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 33
30 | P a g e
Equus Mining Limited Directors’ Report For the Year Ended 30 June 2021 31 | PageNON-AUDIT SERVICES During the year ended 30 June 2021 KPMG, the Group’s auditor, did not perform other services in addition to the audit and review of the financial statements. Details of the amounts paid to the auditor of the Group, KPMG, and its network firms for audit and non-audit services provided during the year are set out below. 2021 2020 $ $ Services other than audit and review of financial statements: Other services - - Audit and review of financial statements 90,750 84,998 90,750 84,998 AUDITOR’S INDEPENDENCE DECLARATION The lead auditor’s independence declaration is set out on page 34 and forms part of the Directors' Report for the financial year ended 30 June 2021. Signed at Sydney this 30th day of September 2021 in accordance with a resolution of the Board of Directors: Mark H. Lochtenberg John R. Braham Chairman Executive Director Lead Auditor’s Independence Declaration
34 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 35
32 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Equus Mining Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Equus Mining Limited for the financial year ended 30 June 2021 there have been: i.no contraventions of the auditor independence requirements as set out in the Corporations Act2001 in relation to the audit; andii.no contraventions of any applicable code of professional conduct in relation to the audit.KPMG Jason Adams Partner Brisbane 30 September 2021 Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Equus Mining Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
CONTINUING OPERATIONS
Government grant income
Expenses
Employee, directors and consultants costs
Travel expenses
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance income
Loss before tax
Tax benefit/(expense)
Loss for the year
Other comprehensive income for the year
Items that may be classified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Items that will not be classified subsequently to profit or loss
Net change in fair value of equity instruments at fair value through other
comprehensive income
Total other comprehensive gain/(loss)
Total comprehensive loss for the year
Loss for the year attributable to:
Equity holders of the Company
Non-controlling interest
Total comprehensive loss attributable to:
Equity holders of the Company
Non-controlling interest
Earnings per share
Basic and diluted loss per share (cents)
Notes
2021
$
2020
$
4
4
5
5
6
13
5
50,000
50,000
(952,285)
-
(820,236)
(1,722,521)
3,514
-
3,514
(1,719,007)
-
(1,719,007)
(1,036,551)
(83,600)
(675,599)
(1,745,750)
16,099
-
16,099
(1,729,651)
-
(1,729,651)
252,926
252,926
(1,030,039)
(1,030,039)
(999)
251,927
(1,467,080)
(343,371)
(1,373,410)
(3,103,061)
(1,716,498)
(2,509)
(1,719,007)
(1,728,160)
(1,491)
(1,729,651)
(1,464,571)
(2,509)
(1,467,080)
(3,101,570)
(1,491)
(3,103,061)
14
(0.09)
(0.13)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
34 | EQUUS MINING LIMITED
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2021 ANNUAL REPORT | 35
Equus Mining Limited
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
As at
30 June 2021
Current Assets
Cash and cash equivalents
Receivables
Total Current Assets
Non-Current Assets
Other financial assets
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated losses
Parent entity interest
Non-controlling interest
Total Equity
Notes
2021
$
2020
$
7
8
9
10
11
4,724,429
1,304,130
51,834
14,806
4,776,263
1,318,936
13,803
11,203,674
11,217,477
14,802
6,895,276
6,910,078
15,993,740
8,229,014
894,025
894,025
894,025
352,742
352,742
352,742
15,099,715
7,876,272
12
13
129,460,300
121,182,362
137,984
(493,028)
(114,502,665) (112,819,667)
7,869,667
15,095,619
4,096
6,605
15,099,715
7,876,272
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
36 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 37
34 | P a g e
Current Assets
Cash and cash equivalents
Receivables
Total Current Assets
Non-Current Assets
Other financial assets
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated losses
Parent entity interest
Non-controlling interest
Total Equity
Notes
2021
$
2020
$
7
8
9
10
11
4,724,429
1,304,130
51,834
14,806
4,776,263
1,318,936
13,803
11,203,674
11,217,477
14,802
6,895,276
6,910,078
15,993,740
8,229,014
894,025
894,025
894,025
352,742
352,742
352,742
15,099,715
7,876,272
12
13
129,460,300
121,182,362
137,984
(493,028)
(114,502,665) (112,819,667)
15,095,619
7,869,667
4,096
6,605
15,099,715
7,876,272
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Equus Mining Limited
Consolidated Statement of Financial Position
As at 30 June 2021
Consolidated Statement of Changes in Equity
Equus Mining Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
Share
Capital
$
Accumulated
Losses
$
Option
Reserve
$
Fair Value
Reserve
$
Foreign
Currency
Translation
Reserve
$
Non-
controlling
Interest
$
Total
Equity
$
Total
$
Balance at 1 July
2019
Profit/(Loss) for the
year
Total other
comprehensive
income / (loss)
Total comprehensive
profit/(loss) for the
year
Transactions with
owners recorded
directly in equity
Ordinary shares
issued
Transaction costs on
issue of shares
Share base payment
Changes in
ownership interest in
subsidiaries
Acquisition of
subsidiary with non-
controlling interest
Balance at 30 June
2020
Balance at 1 July
2020
Profit/(Loss) for the
year
Total other
comprehensive
income / (loss)
Total comprehensive
profit/(loss) for the
year
Transactions with
owners recorded
directly in equity
Ordinary shares
issued
Transaction costs on
issue of shares
Share base payments
Transfer of expired
options
Balance at 30 June
2021
116,371,685
(111,091,507)
(1,728,160)
-
-
745,532
(203,983)
5,821,727
-
5,821,727
-
(1,728,160)
(1,491)
(1,729,651)
-
-
-
5,151,859
(341,182)
-
-
-
-
(343,371)
(1,030,039)
(1,373,410)
-
(1,373,410)
(1,728,160)
-
(343,371)
(1,030,039)
(3,101,570)
(1,491)
(3,103,061)
-
-
-
-
-
-
338,833
-
-
-
-
-
-
-
-
-
5,151,859
(341,182)
338,833
-
-
-
5,151,859
(341,182)
338,833
-
8,096
8,096
121,182,362
(112,819,667)
338,833
402,161
(1,234,022)
7,869,667
6,605
7,876,272
121,182,362
(112,819,667)
338,833
402,161
(1,234,022)
7,869,667
6,605
7,876,272
-
-
-
(1,716,498)
-
(1,716,498)
-
-
-
-
-
412,585
-
-
-
33,500
(33,500)
8,987,340
(709,402)
-
-
-
(1,716,498)
(2,509)
(1,719,007)
(999)
252,926
251,927
-
251,927
(999)
252,926
(1,464,571)
(2,509)
(1,467,080)
-
-
-
-
-
-
-
-
8,987,340
(709,402)
412,585
-
-
-
-
-
8,987,340
(709,402)
412,585
-
129,460,300
(114,502,665)
717,918
401,162
(981,096)
15,095,619
4,096 15,099,715
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
36 | EQUUS MINING LIMITED
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2021 ANNUAL REPORT | 37
Consolidated Statement of Cash Flows
Equus Mining Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
Cash flows from operating activities
Cash receipts in the course of operations
Cash payments in the course of operations
Net cash used in operations
Interest received
Net cash used in operating activities
Cash flows from investing activities
Payments for exploration and development expenditure
Proceed from sale of financial assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share issues
Share issue expenses
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash and cash equivalents at 1 July
Effects of exchange rate fluctuations on cash held
Notes
2020
$
2020
$
50,000
34,149
(1,296,129)
(1,337,246)
(1,246,129)
(1,303,097)
3,514
12,559
15
(1,242,615)
(1,290,538)
(3,590,646)
(2,506,325)
-
12,006
(3,590,646)
(2,494,319)
8,775,290
(516,816)
8,258,474
5,027,810
(341,182)
4,686,628
3,425,213
1,304,130
(4,914)
901,771
398,819
3,540
Cash and cash equivalents at 30 June
15
4,724,429
1,304,130
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
38 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 39
36 | P a g e
Equus Mining Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
Cash flows from operating activities
Cash receipts in the course of operations
Cash payments in the course of operations
Net cash used in operations
Interest received
Net cash used in operating activities
Cash flows from investing activities
Payments for exploration and development expenditure
Proceed from sale of financial assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share issues
Share issue expenses
Net cash provided by financing activities
Net increase / (decrease) in cash held
Cash and cash equivalents at 1 July
Effects of exchange rate fluctuations on cash held
Notes
2020
$
2020
$
50,000
34,149
(1,296,129)
(1,337,246)
(1,246,129)
(1,303,097)
3,514
12,559
(3,590,646)
(2,506,325)
-
12,006
(3,590,646)
(2,494,319)
8,775,290
(516,816)
8,258,474
5,027,810
(341,182)
4,686,628
3,425,213
1,304,130
(4,914)
901,771
398,819
3,540
Cash and cash equivalents at 30 June
15
4,724,429
1,304,130
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
1.
REPORTING ENTITY
Equus Mining Limited (the 'Company') is a company domiciled in Australia. The address of the Company’s registered office is
Level 2, 66 Hunter Street, Sydney, NSW, 2000. The consolidated financial statements of the Company as at and for the year
ended 30 June 2021 comprises the Company and its subsidiaries (together referred to as the 'Group'). The Group is a for-
profit entity and is primarily engaged in identifying and evaluating mineral resource opportunities in southern Chile, South
America.
15
(1,242,615)
(1,290,538)
(a) Statement of compliance
2.
BASIS OF PREPARATION
The consolidated financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards ('AASBs') adopted by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001. The consolidated financial statements comply with International Financial Reporting Standards
('IFRSs') and interpretations adopted by the International Accounting Standards Board ('IASB').
The consolidated financial statements were authorised for issue by the Directors on 30 September 2021.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for certain financial assets which
are measured at fair value.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Company’s functional currency.
(d) Going concern
The consolidated financial statements have been prepared on a going concern basis, which contemplates the realisation of
assets and settlement of liabilities in the ordinary course of business.
During the year, the Company raised $8,227,438 (net of associated costs) through the issue of ordinary shares via placements.
The Group recorded a loss attributable to equity holders of the Company of $1,716,498 for the year ended 30 June 2021 and
has accumulated losses of $114,502,665 as at 30 June 2021. The Group has cash on hand of $4,724,429 at 30 June 2021
and used $4,833,261 of cash in operations, including payments for exploration and evaluation, for the year ended 30 June
2021.
Since the end of the financial year, Equus raised $2,254,710 (before costs) through tranche two of a share placement. The
additional funding will primarily be used by the Group to pursue its plans for the Cerro Bayo project.
The Directors have prepared cash flow projections that support the ability of the Group to continue as a going concern. The
cash flow projections assume the Group continues substantial exploration activities in the Cerro Bayo area of interest which
will require additional funding from shareholders or other parties that is yet to be secured at the date of this report. If such
funding is not secured, the Group plans to reduce expenditure to the level of funding available.
These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a
going concern. The ongoing operation of the Group is dependent upon the Group raising additional funding from shareholders
or other parties and/or the Group reducing expenditure in-line with available funding.
In the event that the Group does not obtain additional funding and/or reduce expenditure in line with available funding, which
are uncertain until secured or realised, it may not be able to continue its operations as a going concern and therefore may not
be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the
consolidated financial statements.
(e) Use of estimates and judgements
The preparation of the consolidated financial statements in conformity with AASBs requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
38 | EQUUS MINING LIMITED
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2021 ANNUAL REPORT | 39
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
2.
BASIS OF PREPARATION (Cont.)
(e) Use of estimates and judgements (Cont.)
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the consolidated financial statements are described
in the following notes:
• Note 2(d) - Going concern;
• Note 10 - Exploration and evaluation expenditure.
COVID-19
The COVID-19 pandemic has continued having significant uncertainty in global economic conditions as well as from the
impacts of government imposed restrictions implemented in response to the outbreak. The Group has considered the impacts
of COVID-19 on the key estimates and judgements in the preparation of the financial statements for the year ended 30 June
2021.
Subsequent to the end of the reporting period, the COVID-19 pandemic has remained prevalent and this may impact the
results of operations of the Group in future reporting periods. Given the nature and uncertainties associated with the pandemic,
these impacts are not able to be reliably estimated at the date of issuing this financial report.
3.
SIGNIFICANT ACCOUNTING POLICIES
(a) Changes in accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
statements, and have been applied consistently by entities in the Group.
(b) Finance income and finance costs
Finance income comprises interest income on funds invested, dividend income. Interest income is recognised as it accrues in
profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s
right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the acquisition,
construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.
Foreign currency gains and losses are reported on a net basis.
(c) Exploration and evaluation expenditure
Exploration and evaluation expenditure, including the costs of acquiring licences, are capitalised as intangible exploration and
evaluation assets on an area of interest basis, less any impairment losses. Costs incurred before the Group has obtained the
legal rights to explore an area are recognised in profit or loss.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
•
•
the expenditures are expected to be recouped through successful development and exploitation of the area of
interest; or
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant operations
in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the
purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the
exploration activity relates. The cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then
reclassified to developing mine properties.
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2021 ANNUAL REPORT | 41
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(d) Financial instruments
Non-derivative financial assets
Recognition and initial measurement
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the consolidated financial statements are described
The Group initially recognises trade receivables on the date that they are originated. All other financial assets are recognised
initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.
The COVID-19 pandemic has continued having significant uncertainty in global economic conditions as well as from the
impacts of government imposed restrictions implemented in response to the outbreak. The Group has considered the impacts
of COVID-19 on the key estimates and judgements in the preparation of the financial statements for the year ended 30 June
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset
and settle the liability simultaneously.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or
retained by the Group is recognised as a separate asset or liability.
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
• Amortised cost;
•
•
Fair value through other comprehensive income – equity investment; or
Fair value through profit or loss.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
A financial asset is measured at amortised cost if it meets both the following conditions and is not designated as fair value
through profit or loss:
•
•
It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent
changes in the investment’s fair value through OCI. This election is made on an investment-by-investment basis.
All financial assets not classified as measured at amortised cost or fair value through other comprehensive income as
described above are measured at fair value through profit or loss. This includes all derivative financial assets. On initial
recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at
amortised cost or at fair value through other comprehensive income as at fair value through profit or loss if doing so eliminates
or significantly reduces an accounting mismatch that would otherwise arise.
Non-derivative financial liabilities
Financial liabilities are measured at amortised cost.
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other
financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual
provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Other financial liabilities comprise loans and borrowings and trade and other payables.
(e) Share Capital
Ordinary Shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are
recognised as a deduction from equity, net of any tax effects.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
2.
BASIS OF PREPARATION (Cont.)
(e) Use of estimates and judgements (Cont.)
in the following notes:
• Note 2(d) - Going concern;
• Note 10 - Exploration and evaluation expenditure.
COVID-19
2021.
Subsequent to the end of the reporting period, the COVID-19 pandemic has remained prevalent and this may impact the
results of operations of the Group in future reporting periods. Given the nature and uncertainties associated with the pandemic,
these impacts are not able to be reliably estimated at the date of issuing this financial report.
3.
SIGNIFICANT ACCOUNTING POLICIES
(a) Changes in accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
statements, and have been applied consistently by entities in the Group.
(b) Finance income and finance costs
Finance income comprises interest income on funds invested, dividend income. Interest income is recognised as it accrues in
profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s
right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the acquisition,
construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.
Foreign currency gains and losses are reported on a net basis.
(c) Exploration and evaluation expenditure
interest; or
•
•
Exploration and evaluation expenditure, including the costs of acquiring licences, are capitalised as intangible exploration and
evaluation assets on an area of interest basis, less any impairment losses. Costs incurred before the Group has obtained the
legal rights to explore an area are recognised in profit or loss.
Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either:
the expenditures are expected to be recouped through successful development and exploitation of the area of
activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves and active and significant operations
in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the
purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the
exploration activity relates. The cash generating unit shall not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then
reclassified to developing mine properties.
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2021 ANNUAL REPORT | 41
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(f) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it 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 over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences
until the date that control ceases.
Non-controlling interests
NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the
former subsidiary is measured at fair value when control is lost.
Transactions eliminated on consolidation
Intra-group balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are
eliminated in preparing the consolidated financial statements.
(g) Trade and other receivables and payables
Trade receivables and payables are carried at amortised cost. For receivables and payables with a remaining life of less than
one year, the notional amount is deemed to reflect the fair value. All other receivables and payables are discounted to
determine the fair value.
(h) Impairment
Non-derivative financial assets
The Group recognises loss allowances to an amount equal to lifetime expected credit losses (ECLs), except for the following,
which are measured at 12-month ECLs:
- Debt securities that are determined to have a low credit risk at the reporting date; and
- Other debt securities and bank balances for which credit risk (i.e the risk of default occurring over the expected life
of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
Measurement of ECLs
ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls. ECL’s are discounted at the effective interest rate of the financial asset.
Non-financial assets
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For
impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or
loss.
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2021 ANNUAL REPORT | 43
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(f) Basis of consolidation
Subsidiaries
until the date that control ceases.
Non-controlling interests
Loss of control
determine the fair value.
(h) Impairment
Non-derivative financial assets
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Subsidiaries are entities controlled by the Group. The Group controls an entity when it 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 over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences
(h) Impairment (Cont.)
Reversals of impairment
An impairment loss in respect of a financial asset carried at amortised cost is reversed if the subsequent increase in
recoverable amount can be related objectively to an event occurring after the impairment loss was recognised.
In respect of non-financial assets, an impairment loss is reversed if there has been a conclusive change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss
had been recognised.
NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
(i) Cash and cash equivalents
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the
former subsidiary is measured at fair value when control is lost.
Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination or
items recognised directly in equity or in other comprehensive income.
Transactions eliminated on consolidation
Current tax
Intra-group balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are
eliminated in preparing the consolidated financial statements.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
(g) Trade and other receivables and payables
Deferred tax
Trade receivables and payables are carried at amortised cost. For receivables and payables with a remaining life of less than
one year, the notional amount is deemed to reflect the fair value. All other receivables and payables are discounted to
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
(j) Income tax
The Group recognises loss allowances to an amount equal to lifetime expected credit losses (ECLs), except for the following,
which are measured at 12-month ECLs:
- Debt securities that are determined to have a low credit risk at the reporting date; and
- Other debt securities and bank balances for which credit risk (i.e the risk of default occurring over the expected life
of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
Measurement of ECLs
Non-financial assets
ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls. ECL’s are discounted at the effective interest rate of the financial asset.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For
impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or
loss.
•
•
•
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing
of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; or
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at
the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using
tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets and they relate to taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it
is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(k) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the
exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised
cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period,
and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.
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2021 ANNUAL REPORT | 43
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(k) Foreign currency transactions (Cont.)
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising
on retranslation are recognised in profit or loss, except for differences arising on the retranslation of investments in equity
securities designated as FVOCI, a financial liability designated as a hedge of the net investment in a foreign operation or
qualifying cash flow hedges, which are recognised in other comprehensive income. Non-monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
(l) Foreign operations
The assets and liabilities of foreign operations are translated to Australian dollars at foreign exchange rates ruling at the
reporting date. The income and expenses of foreign operations are translated to Australian dollars at rates approximating the
foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are
recognised directly in the foreign currency translation reserve ('FCTR'), a separate component of equity.
Foreign exchange gains and losses arising from a monetary item receivable or payable to a foreign operation, the settlement
of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign
operation and are recognised directly in the FCTR.
Any references to functional currency, unless otherwise stated, are to the functional currency of the Company, Australian
dollars.
When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss as
part of the profit or loss on disposal.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the
foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net
investment in a foreign operation and are recognised in other comprehensive income, and are presented within equity in the
FCTR.
(m) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided internally to the Executive
Director, who is the Group's chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All
operating segments' operating results are regularly reviewed by the Group's Executive Director to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Executive Director include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company's
headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
(n) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments
of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
(o) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
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2021 ANNUAL REPORT | 45
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Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(o) Goods and services tax (GST) (Cont.)
Cash flows are presented in the Consolidated Statement of Cash Flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
(p) Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected
to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
Share-based payment transactions
The grant-date fair value of share-based payment awards granted is recognised as an employee and consultants expense,
with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards.
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-
market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the
number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based
payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such
conditions and there is no true-up for differences between expected and actual outcomes.
When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss as
part of the profit or loss on disposal.
(q) Determination of fair values
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the
foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net
investment in a foreign operation and are recognised in other comprehensive income, and are presented within equity in the
A number of the Group's accounting policies and disclosures require the determination of fair value for both financial and non-
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed
in the notes specific to that asset or liability.
Investments in equity securities
The fair values of investments in equity securities are determined with reference to the quoted market price that is most
representative of the fair value of the security at the measurement date.
Share-based payment transactions
The fair value of the share options is measured using the Black-Scholes formula. Measurement inputs include share price on
measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility),
expected dividends, and the risk-free interest rate (based on government bonds).
The grant-date fair value of share-based payment awards is recognised as an expense, with a corresponding increase in
equity, over the period that the recipient unconditionally become entitled to the awards. The amount recognised as an expense
is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to
be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related
service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting
conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-
up for differences between expected and actual outcomes. Service and non-market performance conditions are not taken into
account in determining fair value.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
3.
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(k) Foreign currency transactions (Cont.)
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising
on retranslation are recognised in profit or loss, except for differences arising on the retranslation of investments in equity
securities designated as FVOCI, a financial liability designated as a hedge of the net investment in a foreign operation or
qualifying cash flow hedges, which are recognised in other comprehensive income. Non-monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
(l) Foreign operations
The assets and liabilities of foreign operations are translated to Australian dollars at foreign exchange rates ruling at the
reporting date. The income and expenses of foreign operations are translated to Australian dollars at rates approximating the
foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are
recognised directly in the foreign currency translation reserve ('FCTR'), a separate component of equity.
Foreign exchange gains and losses arising from a monetary item receivable or payable to a foreign operation, the settlement
of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign
operation and are recognised directly in the FCTR.
Any references to functional currency, unless otherwise stated, are to the functional currency of the Company, Australian
dollars.
FCTR.
(m) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided internally to the Executive
Director, who is the Group's chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. All
operating segments' operating results are regularly reviewed by the Group's Executive Director to make decisions about
resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Executive Director include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company's
headquarters), head office expenses, and income tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible
assets other than goodwill.
(n) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments
of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
(o) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
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Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
4. LOSS FROM OPERATING ACTIVITIES
Other income
Recognised in profit or loss
Government grant
Other expenses
Administration costs
Audit and review services – KPMG
Accounting and secretarial fees
Legal fees
Insurance
ASIC and ASX fees
Share registry fees
5. FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
Foreign exchange gain / (loss)
Finance income
Finance costs
Net finance income/(costs) recognised in profit or loss
Recognised in other comprehensive income
Net change in fair value of equity instruments at fair value
Finance cost recognised in other comprehensive income, net of tax
6. INCOME TAX EXPENSE
Current tax expense
Current year
Overprovision in prior year
Losses not recognised
Numerical reconciliation of income tax expense to prima facie tax payable:
Loss before tax
Prima facie income tax benefit at the Australian tax rate of 26% (2020: 27.5%)
Decrease in income tax benefit due to:
- non-deductible expenses
- effect of deferred tax asset (DTA) for capital losses not brought to account
- effect of DTA for tax losses not brought to account
- effect of DTA for temporary differences not brought to account
Income tax expense/(benefit)
2021
$
2020
$
50,000
50,000
50,000
50,000
243,810
90,750
28,300
237,975
57,574
97,775
64,052
820,236
173,869
84,998
24,000
267,729
43,225
59,771
22,007
675,599
2021
$
2020
$
3,514
-
3,514
-
3,514
12,559
3,540
16,099
-
16,099
(999)
(999)
(343,371)
(343,371)
2021
$
2020
$
(526,520)
(357,745)
-
-
526,520
357,745
-
-
1,719,007
(1,729,651)
(446,942)
(475,654)
76,541
179,699
-
37,876
332,525
-
-
371,496
(75,541)
-
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2021 ANNUAL REPORT | 47
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
6. INCOME TAX EXPENSE (Cont.)
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Capital losses
Tax losses
Net deductible temporary differences
Potential tax benefit at 26% (2020: 27.5%)
For the Year Ended
30 June 2021
2021
$
2020
$
5,574,426
6,131,868
4,023,021
3,985,145
272,483
185,268
9,869,930 10,302,281
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets have not
been recognised in respect of these items because it is not probable that future taxable profit will be available against which
the Group can utilise the benefits there-from.
7. CASH AND CASH EQUIVALENTS
Cash at bank
Deposits at call
8. RECEIVABLES
Current
Sundry debtors
2021
$
2020
$
615,889
229,412
4,108,540
1,074,718
4,724,429
1,304,130
2021
$
2020
$
51,834
14,806
Trade and sundry debtors are non-interest bearing and generally on 30-day terms.
9.
INVESTMENTS
At 30 June 2021, the Group holds 1,327,000 shares (30 June 2020: 1,327,000) in Blox Inc., a US over the counter traded
company at which had a closing share price of US$0.0078 at 30 June 2021 (30 June 2020: US$0.0080).
The Group recognises its financial assets at fair value and classifies its investments as follows:
Equity instruments at fair value through other comprehensive income
Equity securities – Investment in Blox Inc.
2021
$
2020
$
13,803
14,802
Equity instruments at fair value through other comprehensive income are equity instruments which the Group intends to hold
for the foreseeable future. Any dividends received are recognised as income in profit or loss unless the dividend clearly
represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in the fair value reserve
in OCI and are never reclassified to profit or loss.
Movement of the carrying amount of investment.
Movement during the period
Opening balance
Disposal
Net change in fair value
Equity securities – at fair value through other comprehensive income
2021
$
14,802
-
2020
$
370,179
(12,006)
(999)
(343,371)
13,803
14,802
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2021 ANNUAL REPORT | 47
4. LOSS FROM OPERATING ACTIVITIES
Other income
Recognised in profit or loss
Government grant
Other expenses
Administration costs
Audit and review services – KPMG
Accounting and secretarial fees
Legal fees
Insurance
ASIC and ASX fees
Share registry fees
5. FINANCE INCOME AND FINANCE COSTS
Recognised in profit and loss
Interest income on cash deposits
Foreign exchange gain / (loss)
Finance income
Finance costs
Net finance income/(costs) recognised in profit or loss
Recognised in other comprehensive income
Net change in fair value of equity instruments at fair value
Finance cost recognised in other comprehensive income, net of tax
6. INCOME TAX EXPENSE
Current tax expense
Current year
Overprovision in prior year
Losses not recognised
Numerical reconciliation of income tax expense to prima facie tax payable:
Loss before tax
Prima facie income tax benefit at the Australian tax rate of 26% (2020: 27.5%)
Decrease in income tax benefit due to:
- non-deductible expenses
- effect of deferred tax asset (DTA) for capital losses not brought to account
- effect of DTA for tax losses not brought to account
- effect of DTA for temporary differences not brought to account
Income tax expense/(benefit)
46 | EQUUS MINING LIMITED
2021
$
2020
$
50,000
50,000
50,000
50,000
243,810
173,869
237,975
267,729
90,750
28,300
57,574
97,775
64,052
84,998
24,000
43,225
59,771
22,007
820,236
675,599
2021
$
2020
$
3,514
3,514
-
-
12,559
3,540
16,099
-
3,514
16,099
(999)
(999)
(343,371)
(343,371)
2021
$
2020
$
(526,520)
(357,745)
526,520
357,745
1,719,007
(1,729,651)
(446,942)
(475,654)
76,541
179,699
37,876
332,525
371,496
(75,541)
-
-
-
-
-
-
-
-
44 | P a g e
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
10. EXPLORATION AND EVALUATION EXPENDITURE
Los Domos gold-silver
Cerro Diablo gold-silver
Cerro Bayo
Net Book Value
Los Domos gold-silver
Carrying amount at the beginning of the year
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Cerro Diablo gold-silver
Carrying amount at the beginning of the year
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Cerro Bayo
Carrying amount at the beginning of the year
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Net book value
2021
$
2020
$
4,979,807
4,743,528
72,404
6,151,463
58,423
2,093,325
11,203,674
6,895,276
4,743,528
5,173,477
70,044
435,360
-
-
166,235
(865,309)
4,979,807
4,743,528
58,423
11,751
-
2,230
72,404
55,082
13,507
-
(10,166)
58,423
2,093,325
-
3,941,212
2,292,035
-
-
116,926
(198,710)
6,151,463
2,093,325
11,203,674
6,895,276
The ultimate recoupment of exploration and evaluation expenditure is dependent on the successful development and
commercial exploitation, or alternatively sale of the respective areas of interest.
11. TRADE AND OTHER PAYABLES
Current liabilities
Trade creditors and accruals
Employee leave entitlements
2021
$
2020
$
842,710
51,315
894,025
319,696
33,046
352,742
46 | P a g e
48 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 49
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
2021
$
2020
$
10. EXPLORATION AND EVALUATION EXPENDITURE
12. ISSUED CAPITAL
2,296,617,251 (2020: 1,412,045,355) fully paid ordinary shares
129,460,300 121,182,362
(a) Fully paid ordinary shares
Balance at beginning of financial year
Issued ordinary shares 8 August 2019 for $0.010
Issued ordinary shares 3 September 2019 for $0.010
Issued ordinary shares 14 October 2019 for $0.010
Issued ordinary shares 14 October 2019 – non cash 1
Issued ordinary shares 12 May 2020 – non cash 2
2021
2020
Nº
$
Nº
$
1,412,045,355
121,182,362
897,276,863 116,371,685
134,591,529
1,345,915
52,780,992
527,809
315,408,471
3,154,085
8,687,500
104,250
3,300,000
19,800
Issued ordinary shares 20 July 2020 for $0.009
348,886,300
3,139,977
Issued ordinary shares 20 September 2020 for $0.009
Issued ordinary shares 9 December 2020 – non cash 2
Issued ordinary shares 14 January 2021 – non cash 2
Issued ordinary shares 3 February 2021 for $0.015
Issued ordinary shares 24 February 2021 – non cash 2
Issued ordinary shares 12 May 2021 – non cash 2
40,002,589
3,300,000
11,538,462
2,000,000
1,250,000
750,000
360,023
36,300
150,000
30,000
16,375
9,375
Issued ordinary shares 28 May 2021 for $0.011
431,390,000
4,745,290
Issued ordinary shares 18 June 2021 for $0.011
Less cost of issue
45,454,545
-
500,000
(709,402)
-
(341,182)
1 Shares issued on 14 October 2019 related to the acquisition of 75% interest in three mining concessions owned by Patagonia Gold Sociedad
Contractual Minera (‘Patagonia’) which form part of the Los Domos Project.
2 Shares issued as consideration for Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
2,296,617,251
129,460,300 1,412,045,355 121,182,362
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at the shareholders meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and
are fully entitled to any proceeds of liquidation.
(b) Share Options
•
•
The Company announced on 20 July 2020, a share placement of 388,888,889 shares. For every one placement share,
the company issued one free attaching option. The options are unlisted and have an exercise price of $0.015, vest
immediately and expire on 16 September 2023.
The Company has recognised these options as part of the issued share capital amount recorded of $3,500,000 within
equity and no allocation to reserves has been made in accordance with the Group’s accounting policy.
The Company announced on 20 July 2020, pursuant to the share placement to grant 15,000,000 unlisted options to the
brokers of the placement. The options have an exercise price of $0.015, vest immediately and expire on 16 September
2023.
The fair value of the options was $192,585. The Black-Scholes formula model inputs were the Company's share price of
$0.017 at the grant date, a volatility factor of 129.63% based on historical share price performance and a risk-free interest
rate of 0.24% based on the 3-year government bond rate.
As the options are not subject to vesting conditions, the total grant date fair value of $192,585 (30 June 2020: $nil) has
been recognised in equity as cost of the offer in the year ended 30 June 2021.
48 | EQUUS MINING LIMITED
47 | P a g e
2021 ANNUAL REPORT | 49
Los Domos gold-silver
Cerro Diablo gold-silver
Cerro Bayo
Net Book Value
Los Domos gold-silver
Carrying amount at the beginning of the year
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Cerro Diablo gold-silver
Carrying amount at the beginning of the year
Foreign currency translation movement
Balance carried forward
Carrying amount at the beginning of the year
Additions
Impairment
Cerro Bayo
Additions
Impairment
Foreign currency translation movement
Balance carried forward
Net book value
11. TRADE AND OTHER PAYABLES
Current liabilities
Trade creditors and accruals
Employee leave entitlements
The ultimate recoupment of exploration and evaluation expenditure is dependent on the successful development and
commercial exploitation, or alternatively sale of the respective areas of interest.
2021
$
2020
$
4,979,807
4,743,528
72,404
58,423
6,151,463
2,093,325
11,203,674
6,895,276
4,743,528
5,173,477
70,044
435,360
-
-
166,235
(865,309)
4,979,807
4,743,528
58,423
11,751
-
2,230
72,404
55,082
13,507
(10,166)
58,423
2,093,325
3,941,212
2,292,035
-
116,926
(198,710)
6,151,463
2,093,325
11,203,674
6,895,276
-
-
-
2021
$
2020
$
842,710
51,315
894,025
319,696
33,046
352,742
46 | P a g e
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
12. ISSUED CAPITAL (Cont.)
(b)
Share Options (Cont.)
• During the year ended 30 June 2021, the Company granted 25,000,000 options to Directors of the Company (2020:
option 35,000,000).
On 25 November 2020, 20,000,000 unlisted options were granted to the Managing Director (‘MD’) and 5,000,000 unlisted
options were granted to the Chief Operating Officer (‘COO’) as follows:
Number of
options
8,333,332
8,333,334
8,333,334
Exercise
price
$0.022
$0.025
$0.027
Vesting
Expiry Date
Immediately 25 November 2023
Immediately 25 November 2024
Immediately 25 November 2025
Fair Value per Option
at Grant Date
$0.007
$0.008
$0.009
Fair
Value
$58,333
$66,667
$75,000
Tranche 1
Tranche 2
Tranche 3
The fair value of the options granted on 25 November 2020 to the MD and the COO was $200,000. The Black-Scholes
formula model inputs were the Company's share price of $0.011 at the grant date, a volatility factor of 136.2% based on
historical share price performance and a risk-free interest rate of 0.11% based on the 3-year government bond rate.
• On 1 December 2020, 2,500,000 unlisted options were granted to the Group’s Exploration Manager. The options have
an exercise price of $0.022, vest immediately and expire on 1 December 2023.
The fair value of the options granted to the Exploration Manager was $20,000. The Black-Scholes formula model inputs
were the Company's share price of $0.012 at the grant date, a volatility factor of 137.27% based on historical share price
performance and a risk-free interest rate of 0.12% based on the 3-year government bond rate.
•
The options issued to the MD, COO and the Exploration manager are not subject to vesting conditions, the total grant
date fair value of $220,000 (30 June 2020: $338,833) has been recognised as an expense in the year ended 30 June
2021. The expense has been included in “employee, director and consultants costs” in the income statement.
• On 14 October 2019, 15,000,000 unlisted options were granted to the Managing Director (‘MD’) as follows:
Fair Value per Option
at Grant Date
$0.0067
$0.0086
$0.0118
Immediately 13 November 2020
Immediately 13 November 2021
Immediately 13 November 2023
Number of
options
5,000,000
5,000,000
5,000,000
Exercise
price
$0.03
$0.05
$0.07
Tranche 1
Tranche 2
Tranche 3
Expiry Date
Vesting
Fair
Value
$33,500
$43,000
$59,000
The fair value of the options granted on 14 October 2019 to the MD was $135,500. The Black-Scholes formula model
inputs were the Company's share price of $0.0155 at the grant date, a volatility factor of 152.6% based on historical
share price performance and a risk-free interest rate of 0.71% based on the 2-year government bond rate.
• On 29 November 2019, 20,000,000 unlisted options were granted to the Managing Director as follows:
Number of
options
6,666,666
6,666,667
6,666,667
Exercise
price
$0.027
$0.030
$0.035
Vesting
Expiry Date
Fair Value per Option
at Grant Date
Immediately 13 November 2021
Immediately 13 November 2022
Immediately 13 November 2024
$0.0084
$0.0101
$0.0120
Fair
Value
$56,000
$67,333
$80,000
Tranche 1
Tranche 2
Tranche 3
The fair value of options granted on 29 November 2019 to the MD was $203,333. The Black-Scholes formula model
inputs were the Company's share price of $0.014 at the grant date, a volatility factor of 149.46% based on historical
share price performance and a risk-free interest rate of 0.65% based on the 3-year government bond rate.
As the options are not subject to vesting conditions, the total grant date fair value of $338,833 has been recognised as
an expense in the year ended 30 June 2020. The expense has been included in “employee, director and consultants
costs” in the income statement.
50 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 51
48 | P a g e
• During the year ended 30 June 2021, the Company granted 25,000,000 options to Directors of the Company (2020:
The following unlisted options were on issue as at 30 June 2021:
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
12.
ISSUED CAPITAL (Cont.)
(b) Share Options (Cont.)
Opening
Balance
1 July 2020
Number
5,000,000
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
-
-
-
-
-
Exercise Price
Granted
during the year
Expired during
the year
Exercised during
the year
Closing Balance
30 June 2021
$
0.030
0.050
0.070
0.027
0.030
0.035
0.022
0.025
0.027
0.022
0.015
Number
5,000,000
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
8,333,332
8,333,334
8,333,334
2,500,000
403,888,889
Number
Number
Number
(5,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
8,333,332
8,333,334
8,333,334
2,500,000
(2,000,000)
401,888,889
The following unlisted options were on issue as at 30 June 2020:
Opening Balance
1 July 2019
Number
-
-
-
-
-
-
Exercise Price
Granted
during the year
$
0.030
0.050
0.070
0.027
0.030
0.035
Number
5,000,000
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
Exercised/
Expired
during the year
Number
Exercised during
the year
Closing Balance
30 June 2020
Number
Number
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
12. ISSUED CAPITAL (Cont.)
(b)
Share Options (Cont.)
option 35,000,000).
On 25 November 2020, 20,000,000 unlisted options were granted to the Managing Director (‘MD’) and 5,000,000 unlisted
options were granted to the Chief Operating Officer (‘COO’) as follows:
Exercise
Vesting
Expiry Date
Fair Value per Option
Number of
options
8,333,332
8,333,334
8,333,334
price
$0.022
$0.025
$0.027
Tranche 1
Tranche 2
Tranche 3
Immediately 25 November 2023
Immediately 25 November 2024
Immediately 25 November 2025
at Grant Date
$0.007
$0.008
$0.009
Fair
Value
$58,333
$66,667
$75,000
The fair value of the options granted on 25 November 2020 to the MD and the COO was $200,000. The Black-Scholes
formula model inputs were the Company's share price of $0.011 at the grant date, a volatility factor of 136.2% based on
historical share price performance and a risk-free interest rate of 0.11% based on the 3-year government bond rate.
• On 1 December 2020, 2,500,000 unlisted options were granted to the Group’s Exploration Manager. The options have
an exercise price of $0.022, vest immediately and expire on 1 December 2023.
The fair value of the options granted to the Exploration Manager was $20,000. The Black-Scholes formula model inputs
were the Company's share price of $0.012 at the grant date, a volatility factor of 137.27% based on historical share price
performance and a risk-free interest rate of 0.12% based on the 3-year government bond rate.
•
The options issued to the MD, COO and the Exploration manager are not subject to vesting conditions, the total grant
date fair value of $220,000 (30 June 2020: $338,833) has been recognised as an expense in the year ended 30 June
2021. The expense has been included in “employee, director and consultants costs” in the income statement.
• On 14 October 2019, 15,000,000 unlisted options were granted to the Managing Director (‘MD’) as follows:
Exercise
Vesting
Expiry Date
Fair Value per Option
Number of
options
5,000,000
5,000,000
5,000,000
price
$0.03
$0.05
$0.07
Tranche 1
Tranche 2
Tranche 3
Immediately 13 November 2020
Immediately 13 November 2021
Immediately 13 November 2023
at Grant Date
$0.0067
$0.0086
$0.0118
Fair
Value
$33,500
$43,000
$59,000
The fair value of the options granted on 14 October 2019 to the MD was $135,500. The Black-Scholes formula model
inputs were the Company's share price of $0.0155 at the grant date, a volatility factor of 152.6% based on historical
share price performance and a risk-free interest rate of 0.71% based on the 2-year government bond rate.
• On 29 November 2019, 20,000,000 unlisted options were granted to the Managing Director as follows:
Vesting
Expiry Date
Fair Value per Option
Number of
options
6,666,666
6,666,667
6,666,667
Exercise
price
$0.027
$0.030
$0.035
Tranche 1
Tranche 2
Tranche 3
Immediately 13 November 2021
Immediately 13 November 2022
Immediately 13 November 2024
at Grant Date
$0.0084
$0.0101
$0.0120
Fair
Value
$56,000
$67,333
$80,000
The fair value of options granted on 29 November 2019 to the MD was $203,333. The Black-Scholes formula model
inputs were the Company's share price of $0.014 at the grant date, a volatility factor of 149.46% based on historical
share price performance and a risk-free interest rate of 0.65% based on the 3-year government bond rate.
As the options are not subject to vesting conditions, the total grant date fair value of $338,833 has been recognised as
an expense in the year ended 30 June 2020. The expense has been included in “employee, director and consultants
costs” in the income statement.
50 | EQUUS MINING LIMITED
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49 | P a g e
2021 ANNUAL REPORT | 51
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
13. RESERVES
Fair value reserve (a)
Foreign currency translation reserves (b)
Equity based compensation reserve (c)
Movements during the period:
(a) Fair value reserve
Balance at beginning of period
Net change in fair value
Balance at end of period
(b) Foreign currency translation reserves
Balance at beginning of period
Currency translation differences
Balance at end of period
(c) Equity based compensation reserve
Balance at beginning of period
Share based payment – vested share options
Options expired during the period
Balance at end of period
Nature and purpose of reserves
2021
$
2020
$
401,162
(981,096)
717,918
137,984
402,161
(1,234,022)
338,833
(493,028)
402,161
(999)
401,162
745,532
(343,371)
402,161
(1,234,022)
252,926
(981,096)
(203,983)
(1,030,039)
(1,234,022)
338,833
412,585
(33,500)
717,918
-
338,833
-
338,833
Fair value reserve:
The fair value reserve comprises the cumulative net change in the fair value of equity securities designated at fair value through
other comprehensive income.
Foreign currency translation reserve:
The foreign currency translation reserve records the foreign currency differences arising from the translation of the financial
statements of foreign operations where their functional currency is different to the presentation currency of the reporting entity.
Equity based compensation reserve:
The equity based compensation reserve is used to record the options issued to directors and executives of the Company as
compensation.
52 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 53
50 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
13. RESERVES
Fair value reserve (a)
Foreign currency translation reserves (b)
Equity based compensation reserve (c)
Movements during the period:
(a) Fair value reserve
Balance at beginning of period
Net change in fair value
Balance at end of period
(b) Foreign currency translation reserves
Balance at beginning of period
Currency translation differences
Balance at end of period
(c) Equity based compensation reserve
Balance at beginning of period
Share based payment – vested share options
Options expired during the period
Balance at end of period
Nature and purpose of reserves
Fair value reserve:
other comprehensive income.
Foreign currency translation reserve:
2021
$
2020
$
401,162
402,161
(981,096)
(1,234,022)
717,918
137,984
338,833
(493,028)
402,161
(999)
401,162
745,532
(343,371)
402,161
(1,234,022)
(203,983)
252,926
(1,030,039)
(981,096)
(1,234,022)
338,833
412,585
(33,500)
717,918
-
-
338,833
338,833
The fair value reserve comprises the cumulative net change in the fair value of equity securities designated at fair value through
The foreign currency translation reserve records the foreign currency differences arising from the translation of the financial
statements of foreign operations where their functional currency is different to the presentation currency of the reporting entity.
The equity based compensation reserve is used to record the options issued to directors and executives of the Company as
Equity based compensation reserve:
compensation.
14. LOSS PER SHARE
Basic and diluted loss per share has been calculated using:
Net loss for the year attributable to equity holders of the parent
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at beginning of year
Effect of shares issued (Note 12)
Weighted average ordinary shares at the end of the year
2021
$
2020
$
(1,716,498)
(1,728,160)
1,412,045,355
897,276,863
410,859,626
395,411,400
1,822,904,981 1,292,688,263
As the Group is loss making, none of the potentially dilutive securities are currently dilutive in the calculation of total earnings
per share.
15. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operating activities
Loss for the year
Non-cash items
Other income
Provisions for employee entitlements
Share based payments
Foreign currency exchange loss/(gain)
Changes in assets and liabilities
Decrease/(increase) in receivables
(Decrease)/Increase in payables
Net cash used in operating activities
2021
$
2020
$
(1,719,007)
(1,729,651)
-
18,268
220,000
4,914
(15,851)
23,059
338,833
(3,540)
(33,728)
266,938
(293)
96,905
(1,242,615)
(1,290,538)
Reconciliation of cash
For the purposes of the statement of cash flows, cash includes cash on hand and at bank and cash on deposit net of bank
overdrafts and excluding security deposits. Cash 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 and cash equivalents
16.
RELATED PARTIES
Parent and ultimate controlling party
4,724,429
1,304,130
Equus Mining Limited is both the parent and ultimate controlling party of the Group.
Key management personnel and director transactions
During the year ended 30 June 2021 and 2020, no key management persons, or their related parties, held positions in other
entities that provide material professional services resulting in them having control or joint control over the financial or
operating policies of those entities.
52 | EQUUS MINING LIMITED
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2021 ANNUAL REPORT | 53
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
17. KEY MANAGEMENT PERSONNEL DISCLOSURES
Information regarding individual key management personnel’s compensation and some equity instruments disclosures as
permitted by Corporations Act and Corporations Regulations 2M.3.03 are provided in the Remuneration Report section of the
Director’s Report.
Key management personnel compensation
Primary fees/salary
Superannuation
Share based payment
Short term benefits
2021
$
2020
$
467,061
41,206
200,000
18,268
726,535
455,167
39,203
338,833
23,059
856,262
At 30 June 2021 no fees were outstanding (2020 – $nil). There were no loans made to key management personnel or their
related parties during the 2021 and 2020 financial years.
The Board reviews remuneration arrangements annually based on services provided. Apart from the details disclosed in this
note, there were no material contracts involving Directors' interest’s existing at year-end.
18. SHARE BASED PAYMENT
During the year the Company granted 20,000,000 unlisted options to the Managing Director and 5,000,000 unlisted options to
the Chief Operating Officer at the discretion of the Board to acquire options over unissued ordinary shares in the Company
(2020 – 35,000000 to the Managing Director). The options have no voting or dividend rights. The options vested immediately
on Grant Date and there are no vesting conditions attached to the options issued. Any options not exercised by the expiry date
will lapse automatically.
The terms and conditions of the options held by key management personnel during the year ended 30 June 2021 are as
follows:
Grant
date
Expiry
date
Vesting
date
Exercise
price
Fair
value of
options
granted
Total
granted
Number
Total
Exercised
Number
Balance at
end of the
period
Number
14 October 2019
13 November 2021
14 October 2019
$0.050 $43,000 5,000,000
14 October 2019
13 November 2023
14 October 2019
$0.070 $59,000 5,000,000
29 November 2019 13 November 2021 29 November 2019 $0.027 $56,000 6,666,666
29 November 2019 13 November 2022 29 November 2019 $0.030 $67,333 6,666,667
29 November 2019 13 November 2024 29 November 2019 $0.035 $80,000 6,666,667
25 November 2020 25 November 2023 25 November 2020 $0.022 $58,334 8,333,332
25 November 2020 25 November 2024 25 November 2020 $0.025 $66,666 8,333,334
25 November 2020 25 November 2025 25 November 2020 $0.027 $75,000 8,333,334
-
-
-
-
-
-
-
-
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
8,333,332
8,333,334
8,333,334
Weighted average of options in the equity based compensation reserve during the year
Number of
options
2021
Weighted average
exercise price
2021
Number of
options
2020
Weighted average
exercise price
2020
Outstanding
55,000,000
$0.033
35,000,000
$0.039
The equity based compensation reserve is used to record the options issued to directors and executives of the Company as
compensation. Options are valued using the Black-Scholes option pricing model.
The weighted average remaining contractual life of share options outstanding at the end of the year in the equity based
compensation reserve was 2.42 years (2020 – 2.28).
During the year, no ordinary shares were issued as a result of the exercise of options granted to Directors (2020 – nil).
52 | P a g e
54 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 55
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
17. KEY MANAGEMENT PERSONNEL DISCLOSURES
19. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE
Information regarding individual key management personnel’s compensation and some equity instruments disclosures as
permitted by Corporations Act and Corporations Regulations 2M.3.03 are provided in the Remuneration Report section of the
The Group's financial instruments comprise deposits with banks, receivables, trade and other payables and from time to time
short term loans from related parties. The Group does not trade in derivatives.
Director’s Report.
Key management personnel compensation
Primary fees/salary
Superannuation
Share based payment
Short term benefits
2021
$
2020
$
467,061
41,206
200,000
18,268
726,535
455,167
39,203
338,833
23,059
856,262
The main risks arising from the Group's financial instruments are market risk, credit risk and liquidity risks. This note presents
information about the Group's exposure to each of these risks, its objectives, policies and processes for measuring and
managing risk, and the Group's management of capital.
Risk management framework
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management
framework. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate
risk limits and controls, and to monitor risks and adherence to limits. These policies are reviewed regularly to reflect changes
in market conditions and the Group’s activities. The primary responsibility to monitor the financial risks lies with the Managing
Director and the Company Secretary under the authority of the Board.
At 30 June 2021 no fees were outstanding (2020 – $nil). There were no loans made to key management personnel or their
Liquidity risk
related parties during the 2021 and 2020 financial years.
Liquidity risk is the risk that the Group will not be able to meet its financial obligation as they fall due. The Group's approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
The Group monitors rolling forecasts of liquidity based on expected fund raisings, trade payables and other obligations for the
ongoing operation of the Group. At balance date, the Group has available funds of $4,776,263 for its immediate use.
The following are the contractual maturities of financial liabilities:
Financial liabilities
Trade and other payables
30 June 2021
30 June 2020
Carrying
amount
$
Contractual
cash flows
$
Less than 6
months
$
6 to 12
months
$
1 to 5
years
$
More than
5 years
$
842,710
319,696
(842,710)
(319,696)
(842,710)
(319,696)
-
-
-
-
-
-
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations.
The carrying amount of the Group's financial assets represents the maximum credit risk exposure as follows:
Cash and cash equivalents
Receivables
Cash and cash equivalents
2021
$
4,724,429
51,834
4,776,263
2020
$
1,304,130
14,806
1,318,936
At 30 June 2021, the Group held cash and cash equivalents of $4,724,429 (2020: $1,304,130), which represents its maximum
credit exposure on these assets. The cash and cash equivalents are held with reputable banks and financial institution
counterparties, which are rated AA- to AAA+, based on rating agency ‘Moody’s rating’.
Receivables
The weighted average remaining contractual life of share options outstanding at the end of the year in the equity based
compensation reserve was 2.42 years (2020 – 2.28).
For the year ended 30 June 2021, the Group does not hold a significant value of trade receivables, and therefore has minimal
exposure to credit risk.
53 | P a g e
2021 ANNUAL REPORT | 55
The Board reviews remuneration arrangements annually based on services provided. Apart from the details disclosed in this
note, there were no material contracts involving Directors' interest’s existing at year-end.
18. SHARE BASED PAYMENT
will lapse automatically.
follows:
During the year the Company granted 20,000,000 unlisted options to the Managing Director and 5,000,000 unlisted options to
the Chief Operating Officer at the discretion of the Board to acquire options over unissued ordinary shares in the Company
(2020 – 35,000000 to the Managing Director). The options have no voting or dividend rights. The options vested immediately
on Grant Date and there are no vesting conditions attached to the options issued. Any options not exercised by the expiry date
The terms and conditions of the options held by key management personnel during the year ended 30 June 2021 are as
Grant
date
Expiry
date
Vesting
date
Exercise
options
granted
Exercised
price
granted
Number
Number
Fair
value of
Total
Total
14 October 2019
13 November 2021
14 October 2019
$0.050 $43,000 5,000,000
14 October 2019
13 November 2023
14 October 2019
$0.070 $59,000 5,000,000
29 November 2019 13 November 2021 29 November 2019 $0.027 $56,000 6,666,666
29 November 2019 13 November 2022 29 November 2019 $0.030 $67,333 6,666,667
29 November 2019 13 November 2024 29 November 2019 $0.035 $80,000 6,666,667
25 November 2020 25 November 2023 25 November 2020 $0.022 $58,334 8,333,332
25 November 2020 25 November 2024 25 November 2020 $0.025 $66,666 8,333,334
25 November 2020 25 November 2025 25 November 2020 $0.027 $75,000 8,333,334
Weighted average of options in the equity based compensation reserve during the year
Outstanding
Number of
options
2021
55,000,000
Weighted average
exercise price
2021
$0.033
Number of
options
2020
35,000,000
Weighted average
exercise price
2020
$0.039
The equity based compensation reserve is used to record the options issued to directors and executives of the Company as
compensation. Options are valued using the Black-Scholes option pricing model.
Balance at
end of the
period
Number
5,000,000
5,000,000
6,666,666
6,666,667
6,666,667
8,333,332
8,333,334
8,333,334
-
-
-
-
-
-
-
-
52 | P a g e
During the year, no ordinary shares were issued as a result of the exercise of options granted to Directors (2020 – nil).
54 | EQUUS MINING LIMITED
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
19. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
Interest Rate Risk
The Group's income statement is affected by changes in interest rates due to the impact of such changes on interest income
and expenses.
At year-end, the interest rate risk profile of the Group's interest bearing financial instruments was:
Cash and cash equivalents
There are no fixed rate instruments (2020 - $nil).
2021
$
2020
$
4,724,429
1,304,130
The Group does not have interest rate swap contracts. The Group has two interest bearing accounts from where it draws
cash when required to pay liabilities as they fall due. The Group normally invests its funds in the two interest bearing accounts
to maximise the available interest rates. The Group analyses its interest rate exposure when considering renewals of existing
positions including alternative financing arrangements.
Sensitivity analysis
A change of 100 basis points in interest rates at the current and prior reporting date would have increased/(decreased) equity
and loss for the period by an immaterial amount.
Currency risk
The Group is exposed to currency risk on bank account denominated in USD totalling $15 at 30 June 2021 (2020 –
US$43,538).
Sensitivity analysis
The Company no longer holds USD and is not exposed to fluctuations in the movement of exchange rates.
Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the
balance sheet as other financial assets.
The Group’s investments are publicly traded on the Over-The-Counter-Market (‘OTC market’) in the USA.
The table below summarises the impact of increases/decreases of the bid price on the Group’s post-tax profit for the year and
on equity
Blox-Inc. - 10% bid price increase
Blox-Inc. - 10% bid price decrease
Impact on post-tax profit
Impact on Total equity
2021
$
-
-
2020
$
-
-
2021
$
1,629
(2,445)
2020
$
1,472
(1,339)
56 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 57
54 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
19. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
19. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS DISCLOSURE (Cont.)
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters, while optimising the return.
The Group's income statement is affected by changes in interest rates due to the impact of such changes on interest income
At year-end, the interest rate risk profile of the Group's interest bearing financial instruments was:
2021
$
2020
$
4,724,429
1,304,130
Cash and cash equivalents
There are no fixed rate instruments (2020 - $nil).
The Group does not have interest rate swap contracts. The Group has two interest bearing accounts from where it draws
cash when required to pay liabilities as they fall due. The Group normally invests its funds in the two interest bearing accounts
to maximise the available interest rates. The Group analyses its interest rate exposure when considering renewals of existing
positions including alternative financing arrangements.
A change of 100 basis points in interest rates at the current and prior reporting date would have increased/(decreased) equity
and loss for the period by an immaterial amount.
The Group is exposed to currency risk on bank account denominated in USD totalling $15 at 30 June 2021 (2020 –
Market risk
Interest Rate Risk
and expenses.
Sensitivity analysis
Currency risk
US$43,538).
Sensitivity analysis
Price risk
The Company no longer holds USD and is not exposed to fluctuations in the movement of exchange rates.
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the
balance sheet as other financial assets.
The Group’s investments are publicly traded on the Over-The-Counter-Market (‘OTC market’) in the USA.
The table below summarises the impact of increases/decreases of the bid price on the Group’s post-tax profit for the year and
on equity
Blox-Inc. - 10% bid price increase
Blox-Inc. - 10% bid price decrease
Impact on post-tax profit
Impact on Total equity
2021
2020
$
-
-
2021
$
1,629
(2,445)
2020
$
1,472
(1,339)
$
-
-
Capital management
Management aim to control the capital of the Group in order to maintain an appropriate debt to equity ratio, provide the
shareholders with adequate returns and ensure that the Group can fund its operations and continue as a going concern.
The Group's capital includes ordinary share capital supported by financial assets. There are no externally imposed capital
requirements on the Group.
Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of cash levels,
distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.
Financial instruments carried at fair value
The carrying amounts of financial assets and financial liabilities included in the balance sheet approximate fair values.
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
• Level 1 - fair value measurements are those instruments valued based on quoted prices (unadjusted) in active markets
for identical assets or liabilities.
• Level 2 - fair value measurements are those instruments valued based on inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3 - fair value measurements are those instruments valued based on inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Equity instruments at fair value through other comprehensive income
30 June 2021
30 June 2020
Level 1
Level 2
Level 3
Total
$
$
$
$
-
-
13,803
14,802
-
-
13,803
14,802
The financial assets held at 30 June 2021 and 30 June 2020 relate to investments held in quoted equity securities and were
designated as equity instruments at fair value through other comprehensive income.
56 | EQUUS MINING LIMITED
54 | P a g e
55 | P a g e
2021 ANNUAL REPORT | 57
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
20. CONTROLLED ENTITIES
Parent entity
Equus Mining Limited is an Australian incorporated company listed on the Australian Securities Exchange.
Wholly owned controlled entities
Hotrock Enterprises Pty Ltd (i)
Okore Mining Pty Ltd
Dataloop Pty Ltd
Equus Resources Pty Ltd (ii)
(i) Subsidiary of Hotrock Enterprises Pty Ltd
Derrick Pty Ltd
Andean Coal Pty Ltd (iii)
(iii) Subsidiary of Andean Coal Pty Ltd
Minera Carbones Del Sur Limitada
(ii) Subsidiary of Equus Resources Pty Ltd
Equus Resources Chile SpA (iv)
Minera Equus Chile Ltda
Southern Gold SpA (v)
(iv) Subsidiary of Equus Resources Chile SpA
Minera Equus Chile Ltda
(v) Subsidiary of Southern Gold SpA
Equus Patagonia SpA
21. COMMITMENTS
Exploration expenditure commitments
Country of
incorporation
Ownership Interest
2021
2020
%
%
Australia
Australia
Australia
Australia
Australia
Australia
Chile
Chile
Chile
Chile
Chile
Chile
100
100
100
100
100
100
100
100
100
100
100
100
99.9
99.9
100
0.1
100
100
0.1
100
99.9
99.9
75
-
The Group does not have any minimum expenditure commitments in relation to its mineral interests in the Los Domos Gold-
Silver project, Cerro Diablo project or under the terms of the option agreement with Mandalay to acquire the Cerro Bayo
project at the date of this report.
22. SUBSEQUENT EVENTS
On 7 July 2021, the Company obtained approval at a shareholders’ meeting to issued tranche two of the placement announced
in May 2021 to institutional investors and a Director of the Company by issuing 204,973,636 ordinary shares at an issue price
of $0.011 raising $2,254,710 before costs.
On 14 September 2021, the Company issued 1,250,000 new ordinary shares fully paid shares to a supplier as consideration
for Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
No other matters or circumstances have arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect
significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial
years.
58 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 59
56 | P a g e
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
20. CONTROLLED ENTITIES
Parent entity
Equus Mining Limited is an Australian incorporated company listed on the Australian Securities Exchange.
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
23. OPERATING SEGMENTS
The Group’s chief operating decision maker has considered the requirements of AASB 8, Operating Segments, and has
concluded that, during the year ended 30 June 2021, the Group operated in the mineral exploration within the geographical
segments of Chile.
Wholly owned controlled entities
Hotrock Enterprises Pty Ltd (i)
Okore Mining Pty Ltd
Dataloop Pty Ltd
Equus Resources Pty Ltd (ii)
Derrick Pty Ltd
Andean Coal Pty Ltd (iii)
(i) Subsidiary of Hotrock Enterprises Pty Ltd
(iii) Subsidiary of Andean Coal Pty Ltd
Minera Carbones Del Sur Limitada
(ii) Subsidiary of Equus Resources Pty Ltd
Equus Resources Chile SpA (iv)
Minera Equus Chile Ltda
Southern Gold SpA (v)
(iv) Subsidiary of Equus Resources Chile SpA
Minera Equus Chile Ltda
(v) Subsidiary of Southern Gold SpA
Equus Patagonia SpA
21. COMMITMENTS
Exploration expenditure commitments
project at the date of this report.
22. SUBSEQUENT EVENTS
Country of
incorporation
Ownership Interest
2021
2020
%
%
Australia
Australia
Australia
Australia
Australia
Australia
Chile
Chile
Chile
Chile
Chile
Chile
100
100
100
100
100
100
100
0.1
100
100
100
100
100
100
100
100
0.1
100
99.9
99.9
99.9
99.9
75
-
30 June 2021
External revenues
Reportable segment profit /(loss) before tax
Interest income
Interest expense
Reportable segment assets
Reportable segment liabilities
30 June 2020
External revenues
Reportable segment profit /(loss) before tax
Interest income
Interest expense
Reportable segment assets
Reportable segment liabilities
Mineral
Exploration
$
-
(109,502)
-
-
11,339,830
564,102
-
(239,710)
12
-
7,017,624
220,115
The Group does not have any minimum expenditure commitments in relation to its mineral interests in the Los Domos Gold-
Silver project, Cerro Diablo project or under the terms of the option agreement with Mandalay to acquire the Cerro Bayo
On 7 July 2021, the Company obtained approval at a shareholders’ meeting to issued tranche two of the placement announced
in May 2021 to institutional investors and a Director of the Company by issuing 204,973,636 ordinary shares at an issue price
of $0.011 raising $2,254,710 before costs.
On 14 September 2021, the Company issued 1,250,000 new ordinary shares fully paid shares to a supplier as consideration
for Geological Technical Services provided in connection with the Cerro Bayo project in southern Chile.
No other matters or circumstances have arisen in the interval between the end of the financial year and the date of this report
any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect
significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial
years.
Reconciliations of reportable segment revenues and profit or loss
Revenues
Total revenue for reportable segments
Total revenue unallocated
Consolidated revenue
Profit or loss
Total loss for reportable segments
Unallocated amounts:
Other income
Net finance income
Net other corporate expenses
Consolidated loss before tax from continuing operations
2021
$
2020
$
-
-
-
-
-
-
(109,502)
(239,710)
50,000
3,514
(1,663,019)
(1,719,007)
50,000
16,087
(1,556,028)
(1,729,651)
58 | EQUUS MINING LIMITED
56 | P a g e
57 | P a g e
2021 ANNUAL REPORT | 59
Notes to the Consolidated Financial Statements
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
For the Year Ended
30 June 2021
23. OPERATING SEGMENTS (Cont.)
Reconciliations of reportable segment revenues and profit or loss (Cont.)
Assets
Total assets for reportable segments
Unallocated corporate assets
Consolidated total assets
Liabilities
Total liabilities for reportable segments
Unallocated corporate liabilities
Consolidated total liabilities
Geographical information
2021
$
2020
$
11,339,830
4,653,910
15,993,740
7,017,624
1,211,390
8,229,014
564,102
329,923
894,025
220,115
132,627
352,742
In presenting information on the basis of geography, segment revenue and segment assets are based on the geographical
location of the operations.
Chile
24. PARENT ENTITY DISCLOSURES
2021
2020
Revenue
$
Non-current
assets
$
Revenues
$
Non-current
assets
$
-
11,203,674
-
6,895,276
As at, and throughout the financial year ended 30 June 2021 the parent entity of the Group was Equus Mining Limited.
Result of the parent entity
Net (loss)/profit
Other comprehensive income
Total comprehensive profit/(loss)
Financial position of the parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Accumulated losses
Reserve
Total equity
Company
2021
$
2020
$
(13,727,852)
-
(13,727,852)
(1,449,738)
-
(1,449,738)
4,640,107
11,224,795
15,864,902
1,196,588
19,520,844
20,717,432
329,923
-
329,923
15,534,979
132,625
-
132,625
20,584,807
129,460,300
121,182,362
(115,044,401) (101,316,549)
718,994
20,584,807
1,119,080
15,534,979
The Directors are of the opinion that no commitments or contingent liabilities existed at or subsequent to year end.
60 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 61
58 | P a g e
Directors’ Declaration
In presenting information on the basis of geography, segment revenue and segment assets are based on the geographical
2021
2020
Revenue
$
Non-current
assets
Non-current
Revenues
assets
$
$
$
-
11,203,674
-
6,895,276
As at, and throughout the financial year ended 30 June 2021 the parent entity of the Group was Equus Mining Limited.
Equus Mining Limited
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
Reconciliations of reportable segment revenues and profit or loss (Cont.)
23. OPERATING SEGMENTS (Cont.)
Assets
Total assets for reportable segments
Unallocated corporate assets
Consolidated total assets
Liabilities
Total liabilities for reportable segments
Unallocated corporate liabilities
Consolidated total liabilities
Geographical information
location of the operations.
Chile
24. PARENT ENTITY DISCLOSURES
Result of the parent entity
Net (loss)/profit
Other comprehensive income
Total comprehensive profit/(loss)
Financial position of the parent entity at year end
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Accumulated losses
Reserve
Total equity
2021
$
2020
$
11,339,830
4,653,910
15,993,740
7,017,624
1,211,390
8,229,014
564,102
329,923
894,025
220,115
132,627
352,742
Company
2021
$
2020
$
(13,727,852)
(1,449,738)
-
-
(13,727,852)
(1,449,738)
4,640,107
1,196,588
11,224,795
19,520,844
15,864,902
20,717,432
329,923
132,625
-
-
329,923
132,625
15,534,979
20,584,807
129,460,300
121,182,362
(115,044,401) (101,316,549)
1,119,080
718,994
15,534,979
20,584,807
58 | P a g e
The Directors are of the opinion that no commitments or contingent liabilities existed at or subsequent to year end.
60 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 61
Equus Mining Limited Directors’ Declaration 59 | Page1.In the opinion of the Directors of Equus Mining Limited (the ‘Company’):(a)the consolidated financial statements and notes there to, set out on pages 35 to 60, and the Remuneration Report as set out on pages 28 to 32 of the Directors’ Report are in accordance with the Corporations Act 2001, including:(i)giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance, for the financial year ended on that date;(ii)complying with Australian Accounting Standards and the Corporations Regulations 2001; and(b)there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.2.The Directors have been given the declarations required under section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.3.The Director’s draw attention to Note 2(a) to the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards.Signed at Sydney this 30th day of September 2021 in accordance with a resolution of the Board of Directors: Mark H. Lochtenberg John R. Braham Director Director Independent Auditor’s Report
62 | EQUUS MINING LIMITED
2021 ANNUAL REPORT | 63
60 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.Independent Auditor’s Report To the shareholders of Equus Mining Limited Report on the audit of the Financial ReportOpinion We have audited the Financial Report of Equus Mining Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: •giving a true and fair view of theGroup's financial position as at 30June 2021 and of its financialperformance for the year ended onthat date; and•complying with AustralianAccounting Standards and theCorporations Regulations 2001.The Financial Report comprises: •Consolidated statement of financial position as at 30June 2021;•Consolidated statement of profit or loss and othercomprehensive income, Consolidated statement ofchanges in equity, and Consolidated statement of cashflows for the year then ended;•Notes including a summary of significant accountingpolicies; and•Directors’ Declaration.The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the 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 fulfilled our other ethical responsibilities in accordance with the Code. Independent Auditor’s Report
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61 Material uncertainty related to going concern We draw attention to Note 2(d), “Going Concern” in the financial report. The conditions disclosed in Note 2(d), indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter. In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included: • Analysing the cash flow projections by: - Evaluating the underlying data used to generate the projections for consistency with other information tested by us, our understanding of the Group’s intentions, and past results and practices; - Assessing the planned levels of operating and capital expenditures for consistency of relationships and trends to the Group’s historical results, results since year end, and our understanding of the business, industry and economic conditions of the Group; • Assessing significant non-routine forecast cash inflows and outflows, including the expected impact of planned capital raisings for feasibility, quantum and timing. We used our knowledge of the client, its industry and current status of those initiatives to assess the level of associated uncertainty. • Reading minutes of Directors’ meetings and relevant correspondence with the Group’s advisors to understand the Group’s ability to raise additional shareholder funds, and assessed the level of associated uncertainty; • Evaluating the Group’s going concern disclosures in the financial report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projections assessment, the Group’s plans to address those events or conditions, and accounting standard requirements. We specifically focused on the principle matters giving rise to the material uncertainty. 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. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the Key Audit Matter. Independent Auditor’s Report
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62 Exploration and evaluation expenditure ($11,203,674) Refer to Note 10 to the Financial Report The key audit matter How the matter was addressed in our audit Capitalised exploration and evaluation (E&E) expenditure is a key audit matter due to: • The significance of the activity to the Group’s business and the balance (being 70% of total assets); and • The greater level of audit effort to evaluate the Group’s application of the requirements of the industry specific accounting standard AASB 6 Exploration for and Evaluation of Mineral Resources, in particular the conditions allowing capitalisation of relevant expenditure and the presence of impairment indicators. The presence of impairment indicators would necessitate a detailed analysis by the Group of the value of capitalised E&E, therefore given the criticality of this to the scope and depth of our work, we involved senior team members to challenge the Group’s determination that no such indicators existed. In assessing the conditions allowing capitalisation of relevant expenditure, we focused on: • The determination of the areas of interest (areas); • Documentation available regarding rights to tenure, via licensing, and compliance with relevant conditions to maintain current rights to an area of interest; • The Group’s intention and capacity to continue the relevant E&E activities; and • The Group’s determination of whether the capitalised E&E meets the carry forward conditions of AASB 6, including whether it is expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale. In assessing the presence of impairment indicators, we focused on those that may draw into question the commercial continuation of E&E activities for areas of interest where significant capitalised E&E exists. In addition to the Our procedures included: • We evaluated the Group’s accounting policy to recognise exploration and evaluation assets using the criteria in the accounting standard; • We assessed the Group’s determination of its areas of interest for consistency with the definition in the accounting standard. This involved analysing the licenses in which the Group holds an interest and the exploration programmes planned for those for consistency with documentation such as license related technical conditions, contractual agreements, and planned work programmes; • For each area of interest, we assessed the Group’s current rights to tenure by checking the ownership of the relevant license to government registries or government correspondence and evaluating agreements in place with other parties. We also tested licences for compliance with conditions where applicable under the terms of agreements with the other party; • We tested the Group’s additions to capitalised E&E for the year by evaluating a statistical sample of recorded expenditure for consistency to underlying records, the capitalisation requirements of the Group’s accounting policy and the requirements of the accounting standard; • We evaluated Group documents, such as minutes of Directors’ meetings and management’s cash flow projections, for consistency with their stated intentions for continuing E&E activities in certain areas. We corroborated this through interviews with key personnel; • We obtained project and corporate budgets identifying areas with existing funding and those requiring alternate funding sources. We compared this for consistency with areas with capitalised E&E, for evidence of the ability to fund continued activities. We identified those areas relying on alternate funding sources and Independent Auditor’s Report
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63 assessments above, we paid particular attention to: • The strategic direction of the Group and its intention to continue E&E activities in each area of interest; • The ability of the Group to fund the continuation of activities; and • Results from latest activities regarding the existence or otherwise of economically recoverable reserves for each area of interest. evaluated the capacity of the Group to secure such funding; • We assessed the Group’s evaluation of the carry forward conditions of AASB 6 including the determination of whether the capitalised E&E is expected to be recouped through successful development and exploitation of the area or by its sale. We did this by analysing the Group’s activities in each area of interest and assessing the Group’s documentation of planned future activities including work programmes and corporate budgets. Other Information Other Information is financial and non-financial information in Equus Mining Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error • assessing the Group and Company's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Independent Auditor’s Report
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64 Auditor’s responsibilities for the audit of the Financial Report Our objective is: •to obtain reasonable assurance about whether the Financial Report as a whole is free from materialmisstatement, 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. They 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 the 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: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report. Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Equus Mining Limited for the year ended 30 June 2021, complies with Section 300A of the Corporations Act 2001. Directors’ 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 responsibilities We have audited the Remuneration Report included in pages 28 to 32 of the Directors’ report for the year ended 30 June 2021. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.KPMG Jason Adams Partner Brisbane 30 September 2021 Additional Stock Exchange Information
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Additional information as at 31 August 2021 required by the Australian Stock Exchange Listing Rules and not disclosed
elsewhere in this report.
Home Exchange
The Company is listed on the Australian Securities Exchange. The Home Exchange is Sydney.
Audit Committee
As at the date of the Directors' Report, an audit committee of the Board of Directors is not considered warranted due to the
composition of the Board and the size, organisational complexity and scope of operations of the Group.
Class of Shares and Voting Rights
The voting rights attached to ordinary shares, as set out in the Company’s Constitution, are that every member in person or
by proxy, attorney or representative, shall have one vote on a show of hands and one vote for each share held on a poll.
A member holding partly paid shares is entitled to a fraction of a vote equivalent to the proportion, which the amount paid up
bears to the issue price for the share.
Distribution of Shareholders
The total distribution of fully paid shareholders as at 31 August 2021 was as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Total
Shareholders
273
285
254
1,190
1,068
3,070
Total
Number of
Shares
116,484
798,490
2,284,124
51,170,273
2,447,221,516
2,501,590,887
Less than Marketable Parcels
On 31 August 2021, 1,570 shareholders held less than marketable parcels of 49,999 shares.
On Market Buy Back
There is no current on-market buy-back.
Substantial Holders
The name of the substantial shareholders in Equus Mining Limited as advised to the Company are set out below.
Tribeca Investment Partners Pty Ltd
Gerard C Toscan Management Pty Limited
DITM Holdings Pty Ltd
Number of
Ordinary Shares
198,980,909
145,010,613
124,288,687
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Additional Stock Exchange Information
EQUUS MINING LIMITED
ADDITIONAL STOCK EXCHANGE INFORMATION
Twenty Largest Shareholders
As at 31 August 2021, the twenty largest quoted shareholders held 47.5% of the fully paid ordinary shares as follows:
Name
Number
%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Tribeca Investments Partners Pty Ltd
Gerard C Toscan Management Pty Limited
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