Fin Resources Limited
Annual Report
30 June 2020
finresources.com.au
ABN 25 009 121 644
CONTENTS
Corporate Directory
Directors’ Report
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
Auditor’s Independence Declaration
Independent Auditor’s Report
ASX Additional Information
Tenements and Project Locations
Important Information and Disclaimers
PAGE
1
2
11
12
13
14
15
32
33
34
38
41
42
CORPORATE DIRECTORY
Directors
Jason Bontempo - Non-Executive Director
Andrew Radonjic - Non-Executive Director
Simon Mottram - Non-Executive Director
Auditors
Stantons International Audit & Consulting Pty Ltd
Level 2, 1 Walker Avenue
WEST PERTH WA 6005
Company Secretary
Aaron Bertolatti
Registered Office
First Floor
35 Richardson Street
WEST PERTH WA 6005
Share Registry
Advanced Share Registry Limited
110 Stirling Highway
NEDLANDS WA 6009
Solicitors
Edwards Mac Scovell
Level 7, 140 St Georges Terrace
Perth WA 6000
Stock Exchange
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: FIN
Website
finresources.com.au
Directors’ Report
The Directors present their report for Fin Resources Limited (“Fin Resources”, “Fin” or “the Company”) and its
subsidiaries (“the Group”) for the year ended 30 June 2020.
DIRECTORS
The names, qualifications and experience of the Company’s Directors in office during the year and until the
date of this report are as follows. Directors were in office for the entire year unless otherwise stated.
Jason Bontempo
Non-Executive Director
Mr Bontempo has 23 years’ experience in public company management, corporate advisory, investment
banking and public company accounting, qualifying as a chartered accountant with Ernst & Young. Mr
Bontempo has worked primarily serving on the board and the executive management of minerals and
resources public companies focusing on advancing and developing mineral resource assets and business
development. Mr Bontempo also provides corporate advice services and the financing of resource companies
across multiple capital markets including resource asset acquisitions and divestments.
Andrew Radonjic
Non-Executive Director
Andrew Radonjic is a geologist and holds a master’s degree in Mineral Economics. He has over 30 years of
experience in mining and exploration, with a specific focus on gold and nickel in the Eastern Goldfields of
Western Australia. During Mr. Radonjic’s career he has been instrumental in the discovery of three significant
gold deposits near Kalgoorlie in Western Australia as well as a major tin/tungsten deposit in Tasmania.
Simon Mottram – appointed 29 June 2020
Non-Executive Director
Simon Mottram is a geologist with over 25 years’ experience predominantly in base and precious metals. Mr
Mottram has held both executive and senior management positions with several successful mining companies
both in Australia and overseas and has seen a number of discoveries advanced through to commercial mine
development and has been central to several significant exploration successes.
Mr Mottram is an expert in the application of modern exploration techniques, economic geology and
development, large-scale drill programmes and feasibility studies. Mr Mottram is a graduate of Melbourne RMIT
University and a Fellow of the AusIMM.
Justin Tremain – resigned 29 June 2020
Non-Executive Director
Justin Tremain graduated from the University of Western Australia with a Bachelor of Commerce degree. Mr.
Tremain cofounded ASX listed Renaissance Minerals Limited in June 2010 and served as Managing Director
until its takeover by ASX Emerald Resources NL in November 2016. Prior to founding Renaissance Minerals
Limited, he had over 10 years’ investment banking experience in the natural resources sector. He has held
positions with Investec, NM Rothschild & Sons and Macquarie Bank and has extensive experience in the
funding of natural resource projects in the junior to mid-tier resource sector.
COMPANY SECRETARY
Aaron Bertolatti
Aaron Bertolatti is a qualified Chartered Accountant and Company Secretary with over 15 years’ experience
in the mining industry and accounting profession. Mr. Bertolatti has both local and international experience
and provides assistance to a number of resource companies with financial accounting and stock exchange
compliance. Mr. Bertolatti has significant experience in the administration of ASX listed companies, corporate
governance and corporate finance.
Fin Resources Limited
2
2020 Annual Report to Shareholders
Directors’ Report
DIRECTORSHIPS OF OTHER LISTED COMPANIES
Directorships of other listed companies held by current directors in the 3 years immediately before the end
of the financial year are as follows:
Director
Company
Period of Directorship
Jason Bontempo
Red Emperor Resources NL
Odin Metals Limited
First Cobalt Corporation
Andrew Radonjic Venture Minerals Limited
Simon Mottram
Blackstone Minerals Limited
Avanco Resources Limited
Odin Metals Limited
Medusa Mining Limited
Director since January 2011
Director since February 2018
Director from November 2015 to December 2017
Director since May 2006
Director since August 2016
Director from February 2012 to June 2018
Director since April 2020
Director since June 2020
INTERESTS IN THE SECURITIES OF THE COMPANY
As at the date of this report, the interests of the Directors in the securities of Fin Resources Limited are:
Director
Jason Bontempo
Andrew Radonjic
Simon Mottram
Ordinary Shares
Performance Rights
7,000,000
-
1,000,000
2,000,000
2,000,000
-
RESULTS OF OPERATIONS
The Group’s net loss after taxation attributable to the members of Fin Resources for the year to 30 June 2020
was $295,317 (2019: net loss $274,901).
DIVIDENDS
No dividend was paid or declared by the Company during the year and up to the date of this report.
CORPORATE STRUCTURE
Fin Resources Limited is a company limited by shares, which is incorporated and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activity of the Company during the financial year was mineral exploration and evaluation.
REVIEW OF OPERATIONS
Fin Resources Limited is an Australian based resources company listed on the Australian Securities Exchange
(ASX: FIN). The Company’s projects comprise exploration licences covering ground located in Western
Australia, which the Company intends to explore for gold, base metals and graphite.
McKenzie Springs Project
The McKenzie Springs Project is located 85km northeast of the township of Halls Creek in the Kimberley region
of Western Australia. The Project comprises a single granted Exploration Licence, namely E80/4808. The
Project hosts mafic and ultramafic intrusions that are prospective for magmatic Ni-Cu sulfide and Platinum
Group Element (PGE) mineralisation. Additionally, the Tickalara Metamorphic geology within the project is
prospective for graphite mineralisation.
Nickel mineralisation within the McKenzie Springs Project is associated with the basal contact of mafic-
ultramafic rocks in a similar geological setting to the Savannah Nickel Mine owned by Panoramic Resources
Ltd (ASX: PAN) to the north.
Fin Resources Limited
3
2020 Annual Report to Shareholders
Directors’ Report
During the year, the Company considered its options for exploration on previously validated and refined drill
targets at McKenzie Springs. Consideration was given to completing a new geochemical survey over the Spring
Creek intrusion, inquiries were made to consultants to assist with heritage clearance and initial costings for
the Company’s maiden drill program were also completed.
Access to the McKenzie Springs Project was restricted from March to July 2020 due to a COVID-19
Commonwealth Biosecurity Act Direction.
On 17 August 2020 the Company advised that it had appointed a drill contractor for its maiden drilling
program at the McKenzie Springs Project. The drilling contract was awarded to proven Western Australian
operator DDH1 Drilling (DDH1). The field program for the McKenzie Springs Project is expected to commence
during October. The planned program includes three diamond drill holes targeting modelled strong high
priority conductors defined from Fixed Loop Electromagnetic (FLEM) geophysical survey.
South Big Bell Project
The South Big Bell Project is located 25km west of the township of Cue in the Murchison Goldfields. The
Project comprises a single granted Exploration Licence, namely E20/900. The Project lies to the south of the
Big Bell Gold Mine, currently held by Westgold Resources Ltd (ASX: WGX) which forms part of their Central
Murchison Gold Project. The South Big Bell tenement covers the southern extension of the Mount Magnet-
Meekatharra Greenstone Belt. Limited exploration work was completed on the Project during the year.
Sentinel Project
The Sentinel Project is located 130km east-northeast of the township of Kalgoorlie in the Eastern Goldfields.
The Project comprises a single granted Exploration Licence, namely E28/2652. The Project lies within the
southern Laverton Tectonic Zone, a regional scale shear/fault system that extends as a set of NNE and NNW
trending structures from Laverton towards the Pinjin area.
The area has been explored for gold by a number of companies since the 1980s, exploration including
predominantly reconnaissance and surface geochemical programs, and limited geochemical drill traverses
through covered terrain. Mapping has located minor gold diggings at the Sentinel Prospect on the northern
margin of Lake Rebecca. Limited exploration work was completed on the Project during the year.
Corporate - Other
Mr Simon Mottram joined the Company’s Board as a Non-Executive Director on 29 June 2020. Mr Mottram
brings significant nickel sulphide exploration experience to the Company. Mr Justin Tremain resigned from
the Board on 29 June 2020.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year, other
than as set out in this report.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the
potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is
dependent on measures imposed by the Australian Government and other countries, such as maintaining
social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be
provided.
There have been no other significant events subsequent to the end of the financial year to the date of this
report.
Fin Resources Limited
4
2020 Annual Report to Shareholders
Directors’ Report
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Directors have excluded from this report any further information on the likely developments in the
operations of the Group and the expected results of those operations in future financial years, as the Directors
believe that it would be speculative and prejudicial to the interests of the Group.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The operations of the Group are presently subject to environmental regulation under the laws of Australia.
The Group is, to the best of its knowledge, at all times in full environmental compliance with the conditions of
its licences.
SHARE OPTIONS AND PERFORMANCE RIGHTS
As at the date of this report there were 137,230,915 unissued ordinary shares under options and 6,000,000
under performance rights. The details of these securities are as follows:
Number
Type
32,000,000 Unlisted Options
105,230,915 Listed Options (ASX: FINOA)
6,000,000 Performance Rights
Exercise Price $
Expiry Date
$0.03
$0.025
$0.001
14 May 2021
31 December 2021
14 May 2023
No holder has any right under the options or performance rights to participate in any other share issue of the
Company or any other entity. No options expired unexercised during the financial year. 2,000,000
performance rights were forfeited during the financial year. No options or performance rights were exercised
during or since the year ended 30 June 2020.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has made an agreement indemnifying all the Directors and Officers of the Company against all
losses or liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Company
to the extent permitted by the Corporations Act 2001.
The indemnification specifically excludes wilful acts of negligence. The Company paid insurance premiums in
respect of Directors’ and Officers’ Liability Insurance contracts for current officers of the Company, including
Officers of the Company’s controlled entities. The liabilities insured are damages and legal costs that may be
incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity
as officers of entities in the Group.
DIRECTORS’ MEETINGS
During the financial year, in addition to frequent Board discussions, the Directors met regularly to discuss all
matters associated with investment strategy, review of opportunities, and other Company matters on an
informal basis. Circular resolutions were passed as necessary to execute formal Board decisions. The number
of meetings of Directors held during the year and the number of meetings attended by each Director were as
follows:
Director
Jason Bontempo
Andrew Radonjic
Simon Mottram1
Justin Tremain2
Number of Meetings
Eligible to Attend
3
3
-
3
Number of Meetings
Attended
3
2
-
3
1 Mr Mottram was appointed as a Director on 29 June 2020
2 Mr Tremain resigned as a Director on 29 June 2020
Fin Resources Limited
5
2020 Annual Report to Shareholders
Directors’ Report
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of the Court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for
all or any part of those proceedings. The Group was not a party to any such proceedings during the year.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of
Fin Resources Limited support and have adhered to the principles of sound corporate governance. The Board
recognises the recommendations of the Australian Securities Exchange Corporate Governance Council, and
considers that Fin Resources complies to the extent possible with those guidelines, which are of importance
to the commercial operation of a junior listed resources company.
During the financial year, shareholders continued to receive the benefit of an efficient and cost-effective
corporate governance policy for the Company. The Company has established a set of corporate governance
policies and procedures which can be found, along with the Company’s Corporate Governance Statement, on
the Fin Resources website:
finresources.com.au.
AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Fin
Resources with an Independence Declaration in relation to the audit of the financial report. A copy of that
declaration is included within this annual report. There were no non-audit services provided by the Group’s
auditor.
Officers of the company who are former partners of Stantons International Audit and Consulting Pty
Ltd
There are no officers of the company who are former partners of Stantons International Audit and Consulting
Pty Ltd (“Stantons”).
Auditor
Stantons continue in office in accordance with section 327 of the Corporations Act 2001.
AUDITED REMUNERATION REPORT
This report, which forms part of the directors’ report, outlines the remuneration arrangements in place for
the key management personnel (“KMP”) of Fin Resources Limited for the financial year ended 30 June 2020.
The information provided in this remuneration report has been audited as required by Section 308(3C) of the
Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as those persons
having authority and responsibility for planning, directing and controlling the major activities of the Group,
directly or indirectly, including any director (whether executive or otherwise) of the Group.
Details of Key Management Personnel
▪
▪
▪
▪
▪
Jason Bontempo - Non-Executive Director
Andrew Radonjic - Non-Executive Director
Simon Mottram - Non-Executive Director - appointed 29 June 2020
Justin Tremain - Non-Executive Director - resigned 29 June 2020
Aaron Bertolatti - Company Secretary
Fin Resources Limited
6
2020 Annual Report to Shareholders
Directors’ Report
Remuneration Policy
The Board is responsible for determining and reviewing compensation arrangements for the Directors. The
Board assesses the appropriateness of the nature and amount of emoluments of such officers on a yearly basis
by reference to relevant employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high-quality board and executive team. The expected outcome of
this remuneration structure is to retain and motivate Directors.
As part of its Corporate Governance Policies and Procedures, the board has adopted a formal Remuneration
Committee Charter and Remuneration Policy. The Board has elected not to establish a remuneration committee
based on the size of the organisation and has instead agreed to meet as deemed necessary and allocate the
appropriate time at its board meetings.
Fees and payments to non‑executive directors reflect the demands which are made on, and the responsibilities
of the directors. Non‑executive directors’ fees and payments are reviewed annually by the Board. Non‑executive
directors do not receive performance-based pay, other than performance rights issued in the prior year.
Level
Non-Executive Director
Senior Executives
Cash Remuneration
Up to A$36,000
Up to A$60,000
Additional fees
A Director may also be paid fees or other amounts as the Directors determine if a Director performs special
duties or otherwise performs services outside the scope of the ordinary duties of a Director. A Director may also
be reimbursed for out of pocket expenses incurred as a result of their directorship or any special duties.
Remuneration Consultants
Remuneration consultants have not been used in determining the remuneration paid.
Retirement allowances for Directors
Superannuation contributions required under the Australian Superannuation Guarantee Legislation continue
to be made and are deducted from the directors’ overall fee entitlements where applicable.
Details of Remuneration
Details of the nature and amount of each element of the remuneration of each Director and Executive of the
Company for the year ended 30 June 2020 are as follows:
2020
Directors
Jason Bontempo
Andrew Radonjic
Simon Mottram1
Justin Tremain2
Officers
Aaron Bertolatti
Base
Salary $
Short term
Director
Fees $
Consulting
Fees $
Options
Share Based
Payments $
Super
$
Total
$
Option
related
%
-
-
-
-
-
-
36,000
27,397
-
27,397
-
-
-
-
9,824
9,824
-
-
3,420
2,603
-
2,603
49,244
39,824
-
30,000
-
90,794
60,000
60,000
9,825
29,473
-
8,626
69,825
188,893
19.9
24.7
-
-
14.1
15.6
1 Simon Mottram was appointed on 29 June 2020.
2 Justin Tremain resigned on 29 June 2020.
Fin Resources Limited
7
2020 Annual Report to Shareholders
Directors’ Report
The fees paid to Directors’ and Officers’ related entities were for the provision of management services of the
particular individual to the Group:
− BR Corporation Pty Ltd, an entity associated with Jason Bontempo.
− 1918 Consulting Pty Ltd, an entity associated with Aaron Bertolatti.
There were no other executive officers of the Group during the financial year ended 30 June 2020.
Details of the nature and amount of each element of the remuneration of each Director and Executive of the
Company for the year ended 30 June 2019 are as follows:
2019
Directors
Jason Bontempo
Andrew Radonjic
Justin Tremain
Officers
Aaron Bertolatti
Base
Salary $
Short term
Director
Fees $
Consulting
Fees $
Options
Share Based
Payments $
Super
$
Total
$
Option
related
%
-
-
-
-
-
36,000
27,397
27,397
-
-
-
8,616
8,616
8,616
3,420
2,603
2,603
48,036
38,616
38,616
-
90,794
60,000
60,000
8,616
34,464
-
8,626
68,616
193,884
17.9
22.3
22.3
12.5
17.7
There were no other executive officers of the Group during the financial year ended 30 June 2019.
Shareholdings of Key Management Personnel
The number of shares in the Company held during the financial year by each Director and specified executives
of the Group, including their personally related parties, is set out below. There were no shares granted during
the reporting year as compensation.
Balance at the
start of the year
Granted during
the year as
compensation
On exercise of
share options
Other changes
during the year
Balance at the
end of the year
Directors
Jason Bontempo
Andrew Radonjic
Simon Mottram1
Justin Tremain2
Officers
Aaron Bertolatti
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,000,000
-
1,000,000
-
7,000,000
-
1,000,000
-
-
-
1 Simon Mottram was appointed on 29 June 2020.
2 Justin Tremain resigned on 29 June 2020.
All equity transactions with key management personnel other than arising from the exercise of remuneration
options have been entered into under terms and conditions no more favourable than those the Company
would have adopted if dealing at arm’s length.
Option holdings of Key Management Personnel
The numbers of options over ordinary shares in the Company held during the financial year by each Director
of Fin Resources Limited and specified executives of the Group, including their personally related parties, are
set out below:
Fin Resources Limited
8
2020 Annual Report to Shareholders
Directors’ Report
Balance at
the start of
the year
Granted
during the
year as
compensation
Exercised
during
the year
Other
changes
during the
year
Balance at
the end of
the year
Exercisable
Un-
exercisable
Directors
Jason Bontempo
Andrew Radonjic
Simon Mottram
Justin Tremain
Officers
Aaron Bertolatti
-
-
-
-
2,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 2,000,000
-
-
-
-
-
-
-
-
-
-
Performance Right holdings of Key Management Personnel
The numbers of Performance Rights over ordinary shares in the Company held during the financial year by each
Director of Fin Resources Limited and specified executives of the Group, including their personally related
parties, are set out below:
Balance at
the start of
the year
Granted
during the
year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Exercisable
Un-
exercisable
Directors
Jason Bontempo
Andrew Radonjic
Simon Mottram1
Justin Tremain2
Officers
Aaron Bertolatti
2,000,000
2,000,000
-
2,000,000
2,000,000
-
-
-
-
- 2,000,000
2,000,000
-
-
-
-
(2,000,000)
- 2,000,000
- 2,000,000
-
-
-
-
-
- 2,000,000
- 2,000,000
1 Simon Mottram was appointed on 29 June 2020.
2 Justin Tremain resigned on 29 June 2020.
The Performance Rights vest and become exercisable by the holder upon the Company achieving a VWAP of at
least $0.03 over a period of 20 trading days. The deadline for conversion is 5 years from the date of issue (14
May 2023).
Performance Rights Affecting Remuneration
The terms and conditions of Performance Rights affecting remuneration in the current or future reporting years
are as follows:
2020
Grant
Date
Grant
Number
Expiry
date/last
exercise
date
Exercise
price
per
option
Value of
options at
grant date1
Number of
options
vested2
Vested
%
Max
value yet
to vest
Directors
Jason Bontempo
Andrew Radonjic
Officers
Aaron Bertolatti
14/05/18 2,000,000 14/05/23 $0.001
14/05/18 2,000,000 14/05/23 $0.001
$46,571
$46,571
14/05/18 2,000,000 14/05/23 $0.001
6,000,000
$46,571
$139,713
-
-
-
-
- $28,131
- $28,131
- $28,130
- $84,392
1 The value at grant date has been calculated in accordance with AASB 2 Share based payments.
Fin Resources Limited
9
2020 Annual Report to Shareholders
Directors’ Report
2 The Performance Rights vest and become exercisable by the holder upon the Company achieving a VWAP of
at least $0.03 over a period of 20 trading days. The deadline for conversion is 5 years from the date of issue
(14 May 2023).
Non-Executive Director Service Agreements
On appointment to the Board, all non-executive directors enter into a service agreement with the Group in
the form of a letter of appointment. The letter summarises the Board policies and terms, including
compensation ranging from $30,000 to $39,420 per annum (including Superannuation), relevant to the
director. There is no termination clause included in the letter.
Senior Executives
Aaron Bertolatti (Company Secretary) is engaged under an Executive Agreement dated 1 May 2018. Under the
agreement Mr. Bertolatti is paid an annual fee of A$60,000. The Agreement may be terminated by the
Company without notice or without cause by giving three months’ notice in writing or payment in lieu of
notice. The Agreement may also be terminated by Mr. Bertolatti by providing three months’ notice in writing.
Loans to Directors and Executives
There were no loans to Directors and executives during the financial year ended 30 June 2020.
Additional Information
The earnings of the Group for the five years to 30 June 2020 are summarised below:
Other income
EBITDA
EBIT
Profit after income tax
2020
$
39,191
(295,317)
(295,317)
(295,317)
2019
$
61,073
(274,901)
(274,901)
(274,901)
2018
$
61,603
(576,273)
(576,273)
(576,273)
2017
$
34,693
(473,118)
(473,118)
(473,118)
2016
$
36,317
(860,045)
(860,045)
(860,045)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end ($)
Total dividends declared (cents per share)
Basic earnings per share (cents per share)
0.015
-
(0.10)
0.012
-
(0.09)
0.021
-
(0.24)
0.024
-
(0.10)
0.024
-
(0.19)
2020
2019
2018
2017
2016
Voting and comments made at the Company's 2019 Annual General Meeting
Fin Resources Limited received 97.2% of “yes” votes on its remuneration report for the 2019 financial year.
The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration
practices.
END OF AUDITED REMUNERATION REPORT
Signed on behalf of the board in accordance with a resolution of the Directors.
Jason Bontempo
Non-Executive Director
Perth, Western Australia
14 September 2020
Fin Resources Limited
10
2020 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2020
Continuing operations
Consultancy fees
Corporate and compliance expense
Employee benefits expense
Share based payments
Other expenses
Total expenses
Other income
Note
30-Jun-20
30-Jun-19
$
$
17(b)
(62,800)
(94,838)
(99,420)
(29,473)
(47,977)
(60,500)
(89,551)
(99,420)
(34,464)
(52,039)
(334,508)
(335,974)
39,191
61,073
Loss before income tax from continuing operations
Income tax expense
Loss after income tax from continuing operations
3
(295,317)
-
(295,317)
(274,901)
-
(274,901)
Loss for the year
(295,317)
(274,901)
Other comprehensive income
Items that may be reclassified to profit and loss
Other comprehensive income for the year net of tax
-
-
-
-
Total comprehensive loss for the year
(295,317)
(274,901)
Loss attributable to:
Owners of the parent
Non-controlling interests
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interests
Loss per share
From continuing operations
Basic and diluted loss per share (cents)
(295,317)
-
(295,317)
(274,901)
-
(274,901)
(295,317)
-
(295,317)
(274,901)
-
(274,901)
15
(0.10)
(0.09)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
Fin Resources Limited
11
2020 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Financial Position
as at 30 June 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Other financial assets
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
30-Jun-20
30-Jun-19
Note
$
$
4
5
6
7
8
9
3,478,846
3,805,868
7,436
20,436
100
9,568
17,187
100
3,506,818
3,832,723
728,354
728,354
680,440
680,440
4,235,172
4,513,163
30,757
30,757
30,757
42,904
42,904
42,904
4,204,415
4,470,259
10
11
12
29,848,259
2,774,745
29,848,259
2,745,272
(28,418,589)
(28,123,272)
4,204,415
4,470,259
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Fin Resources Limited
12
2020 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Changes in Equity
for the year ended 30 June 2020
Balance at 1 July 2018
Total comprehensive loss for the year
Loss for the year
Other Comprehensive Income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
Subscription proceeds from options
issued during the year
Cost of issue
Share based payment (note 17)
Balance at 30 June 2019
Issued capital
$
29,892,965
Accumulated
losses
$
(27,848,371)
Reserves
$
Total
$
2,586,649
4,631,243
-
-
-
(274,901)
-
(274,901)
-
-
-
(274,901)
-
(274,901)
-
(44,706)
-
-
-
-
29,848,259
(28,123,272)
105,231
18,928
34,464
2,745,272
105,231
(25,778)
34,464
4,470,259
Balance at 1 July 2019
29,848,259
(28,123,272)
2,745,272
4,470,259
Total comprehensive loss for the year
Loss for the year
Other Comprehensive Income
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
Share based payment (note 17)
-
-
-
-
(295,317)
-
(295,317)
-
-
-
(295,317)
-
(295,317)
-
29,473
29,473
Balance at 30 June 2020
29,848,259
(28,418,589)
2,774,745
4,204,415
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Fin Resources Limited
13
2020 Annual Report to Shareholders
Fin Resources Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Other receipts
Note
30-Jun-20
30-Jun-19
$
$
(310,180)
(277,039)
29,191
10,000
61,073
-
Net cash used in operating activities
4
(270,989)
(215,966)
Cash flows from investing activities
Payments for exploration expenditure
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of options
Payments for share issue costs
Net cash provided by financing activities
(56,033)
(278,727)
(56,033)
(278,727)
-
-
-
105,231
(25,156)
80,075
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
(327,022)
(414,618)
3,805,868
4,220,486
Cash and cash equivalents at the end of the year
4
3,478,846
3,805,868
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Fin Resources Limited
14
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
1. Corporate Information
The financial report of Fin Resources Limited (“Fin Resources”, “Fin” or “the Company”) and its controlled
subsidiaries (the “Group”) for the year ended 30 June 2020 was authorised for issue in accordance with a
resolution of the Directors on 14 September 2020. Fin Resources is a company limited by shares incorporated
in Australia whose shares are publicly traded on the Australian Securities Exchange. The nature of the
operations and the principal activities of the Company are described in the Directors’ Report.
2. Summary of Significant Accounting Policies
(a) Basis of preparation
The financial statements are general-purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial statements have also been
prepared on a historical cost basis. The presentation currency is Australian dollars.
(b) Going concern
The financial statements have been approved by the Directors on a going concern basis. In determining the
appropriateness of the basis of preparation, the Directors have considered the impact of the COVID19
pandemic on the position of the Group at 30 June 2020 and its operations in future periods.
(c) Statement of compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
(d) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group
only. Supplementary information about the parent entity is disclosed in note 20.
(e) Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Fin
Resources Limited) and all of the subsidiaries. Subsidiaries are those entities over which the Company has the
power to govern the financial and operating policies so as to obtain benefits from their activities. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether a Company controls another entity. A list of the subsidiaries is provided in note 14(c).
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-company transactions have been eliminated in full.
Unrealised losses are also eliminated unless costs cannot be recovered. Non-controlling interests in the
results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income and Consolidated Statement of Financial Position respectively.
(f) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the Consolidated
Statement of Financial Position.
(g) Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave, and sick leave when it is probable that settlement will be required and they are capable of being
measured reliably.
Fin Resources Limited
15
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured
at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities
recognised in respect of employee benefits which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash outflows to be made by the Group in respect of
services provided by employees up to reporting date.
(h) Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard. Fair value is the price the Group
would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction
between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of
the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques maximise, to the extent
possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence
of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e.
the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer
the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair
value measurement also takes into account a market participant's ability to use the asset in its highest and
best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer
of such financial instruments, by reference to observable market information where such instruments are
held as assets. Where this information is not available, other valuation techniques are adopted and, where
significant, are detailed in the respective note to the financial statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation technique
that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The
availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the Group are consistent with one or more of
the following valuation approaches:
− Market approach: valuation techniques that use prices and other relevant information generated by
market transactions for identical or similar assets or liabilities.
−
Income approach: valuation techniques that convert estimated future cash flows or income and expenses
into a single discounted present value.
− Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
− Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique,
the Group gives priority to those techniques that maximise the use of observable inputs and minimise the
use of unobservable inputs.
Fin Resources Limited
16
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Inputs that are developed using market data (such as publicly available information on actual transactions)
and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are developed
using the best information available about such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
i. if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
ii. if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
(i) Financial assets
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
Fin Resources Limited
17
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
▪ amortised cost;
▪
▪
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
▪ the contractual cash flow characteristics of the financial assets; and
▪ the entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
▪ they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
▪ the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents,
trade and most other receivables fall into this category of financial instruments.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge,
as appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial
liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses
recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value that are
recognised in profit or loss.
Impairment
From 1 July 2018, the Group assesses on a forward-looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.
(j) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as
part of the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.
ii.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST
component of cash flows arising from investing and financing activities which is recoverable from, or payable
to, the taxation authority is classified as operating cash flows.
Fin Resources Limited
18
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
(k) Impairment of assets
At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where the asset does not generate cash flows that are independent from other
assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-
generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss
immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised
in profit or loss immediately.
(l) Income tax
Current tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted
or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability
(or asset) to the extent that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the statement of financial position liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax base of those items.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised to the extent that it is probable that sufficient taxable amounts will be available against which
deductible temporary differences or unused tax losses and tax offsets can be utilised.
However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them
arise from the initial recognition of assets and liabilities (other than as a result of a business combination)
which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not
recognised in relation to taxable temporary differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries,
branches, associates and joint ventures except where the Group is able to control the reversal of the
temporary differences and it is probable that the temporary differences will not reverse in the foreseeable
future. Deferred tax assets arising from deductible temporary differences associated with these investments
and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits
against which to utilise the benefits of the temporary differences and they are expected to reverse in the
foreseeable future.
Fin Resources Limited
19
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s)
when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would follow from the manner in which the Group expects, at
the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets
and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
company/Group intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the period
Current and deferred tax is recognised as an expense or income in the statement of profit or loss and other
comprehensive income, except when it relates to items credited or debited directly to equity, in which case
the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a
business combination, in which case it is taken into account in the determination of goodwill or excess.
(m) Payables
Trade payables and other accounts payable are recognised when the Group becomes obliged to make future
payments resulting from the purchase of goods and services.
(n) Revenue recognition
The Group has applied AASB 15 Revenue from Contracts with Customers using the cumulative effective
method. Therefore, the comparative information has not been restated and continues to be presented under
AASB 118 Revenue and AASB 111 Construction Contracts. The Group does not have any revenue from
contracts with customers.
Interest revenue
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the
effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(o) Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
the rights to tenure of the area of interest are current; and
(i)
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest are
continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortisation of assets used in exploration and evaluation activities. General and administrative costs are
only included in the measurement of exploration and evaluation costs where they are related directly to
operational activities in a particular area of interest.
Fin Resources Limited
20
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development. Where an area of interest is abandoned, any expenditure carried forward in respect of that
area is written off.
(p) Interests in joint ventures
Joint arrangements represent the contractual sharing of control between parties in a business venture where
unanimous decisions about relevant activities are required. Separate joint venture entities providing joint
ventures with an interest to net assets are classified as a "joint venture" and accounted for using the equity
method.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement. The Group's interests in the assets, liabilities, revenue
and expenses of joint operations are included in the respective line items of the consolidated financial
statements. Gains and losses resulting from sales to a joint operation are recognised to the extent of the other
parties' interests. When the Group makes purchases from a joint operation, it does not recognise its share of
the gains and losses from the joint arrangement until it resells those goods/assets to a third party.
(q) Share based payments
Equity-settled share-based payments with employees and others providing similar services are measured at
the fair value of the equity instrument at the grant date. Fair value is measured either with reference to the
value of the goods and services provided or by use of a Black Scholes model. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-transferability,
exercise restrictions, and behavioural considerations. Further details on how the fair value of equity-settled
share-based transactions has been determined can be found in note 17.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group’s estimate of shares that will eventually vest.
Equity-settled share-based payment transactions with other parties are measured at the fair value of the
goods and services received, except where the fair value cannot be estimated reliably, in which case they are
measured at the fair value of the equity instruments granted, measured at the date the entity obtains the
goods or the counterparty renders the service.
(r) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of Fin
Resources Limited. The entity does not have any operating segments with discrete financial information.
Fin Resources Limited
21
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
The Board of Directors review internal management reports on a monthly basis that is consistent with the
information provided in the statement of comprehensive income, statement of financial position and
statement of cash flows. As a result, no reconciliation is required because the information as presented is
what is used by the Board to make strategic decision.
(s) Critical accounting judgements and key sources of estimation uncertainty
For cash-settled share-based payments, a liability equal to the portion of the goods or services received is
recognised at the current fair value determined at each reporting date. In the application of the Group’s
accounting policies, which are described in note 2, management is required to make judgments, estimates
and assumptions about carrying values of assets and liabilities that are not readily apparent from other
sources.
The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstance, the results of which form the basis of making the
judgments. Actual results may differ from these estimates. The 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 if the revision affects only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.
Key Sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
Exploration and Evaluation Expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be
recoverable or where the activities have not reached a stage which permits a reasonable assessment of the
existence of reserves. While there are certain areas of interest from which no reserves have been extracted,
the directors are of the continued belief that such expenditure should not be written off since feasibility
studies in such areas have not yet concluded.
Deferred tax assets
The Group recognises deferred tax assets when it becomes probable that sufficient taxable income will be
derived in future periods against which to offset these assets. At each reporting date, the Group assesses the
level of expected future cash flows from the business and the probability associated with realising these cash
flows, and makes an assessment of whether the deferred tax assets of the Group should be recognised.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had,
or may have, on the consolidated entity based on known information. Other than as addressed in specific
notes, there does not currently appear to be either any significant impact upon the financial statements or
any significant uncertainties with respect to events or conditions which may impact the consolidated entity
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
(t) New and amended standards adopted by the Group
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board that are mandatory for the current reporting period. The impact on
the financial performance and position of the Company from the adoption of the new or amended Accounting
Standards and Interpretations was not material.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
Fin Resources Limited
22
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Change in Accounting Policy
Initial Application of AASB 16: Leases
AASB 16 removes the classification of leases as either operating leases or finance leases for the lessee
effectively treating all leases as finance leases. Short term leases (less than 12 months) and leases of a low
value are exempt from the lease accounting requirements. Lessor accounting remains similar to current
practice. The Group has assessed that there are no leases to be recognised in the balance sheet at the
reporting date.
(u) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations issued by the AASB which are not
yet mandatorily applicable to the Group have not been applied in preparing these consolidated financial
statements.
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact
on the entity in the current or future reporting periods and on foreseeable future transactions.
3.
Income Tax
(a) Income tax expense
Major component of tax expense for the year:
Current tax
Deferred tax
(b) Numerical reconciliation between aggregate tax expense
recognised in the statement of comprehensive income and tax
expense calculated per the statutory income tax rate
Loss from before income tax expense
Tax at the Australian rate of 30% (2019: 30%)
Add tax effect of:
Revenue losses and other deferred tax balances not recognised
Other non-assessable income
Other non-allowable items
Less tax effect of:
Other non-assessable items
Losses recouped not previously recognised
Allowable items
Income tax expense
(c) Deferred tax liabilities
Exploration expenditure
Development and production assets
Deferred tax assets
Carry forward revenue losses
2020
$
2019
$
-
-
-
-
-
-
(295,317)
(88,595)
(274,901)
(82,470)
79,503
(3,000)
12,092
-
-
-
-
-
72,131
-
10,339
-
-
-
-
-
134,350
(134,350)
107,028
(107,028)
-
-
-
-
Fin Resources Limited
23
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
(d) Unrecognised deferred tax assets:
Carry forward revenue losses
Carry forward capital losses
Capital raising costs
Other
Offset of deferred tax liabilities
Net deferred tax assets not brought to account
The benefit for tax losses will only be obtained if:
2020
$
2019
$
2,854,932
1,356,430
19,902
9,065
4,240,329
(134,350)
4,105,979
2,729,620
1,356,430
32,645
9,130
4,127,825
(107,028)
4,020,797
i. the Company derives future assessable income in Australia of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised; and
ii. the Company continues to comply with the conditions for deductibility imposed by tax legislation in
Australia; and
iii. no changes in tax legislation in Australia adversely affect the Company in realising the benefit from the
deductions for the losses.
(e) Tax consolidation:
Fin Resources Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated
group with effect from 1 July 2009. Fin Resources Limited is the head entity of the tax consolidated group.
(f) Tax losses
The Group has $9,516,439 (2019: $9,098,735) gross revenue tax losses arising in Australia that are available to
offset against future profit of the Company in which the losses arose. Utilisation of these tax losses is subject
to satisfaction of either the continuity of ownership or same business test in accordance with Australian Tax
requirements. Deferred tax assets have not been recognised in respect of these losses.
4.
Cash and Cash Equivalents
Reconciliation of cash
Cash comprises of:
Cash at bank
Reconciliation of operating loss after tax to net cash flow from
operations
Loss after tax
Non-cash items
Share based payments expense
Exploration and evaluation expenditure
Change in assets and liabilities
(Increase)/decrease in trade and other receivables and other assets
(Decrease)/increase in trade and other payables
Net cash flow (used in) operating activities
5.
Trade and Other Receivables - Current
GST receivable
3,478,846
3,805,868
(295,317)
(274,901)
29,473
677
34,464
-
(1,117)
(4,705)
(270,989)
13,543
10,928
(215,966)
7,436
9,568
Trade debtors, prepayments and GST receivable are non-interest bearing and generally receivable on 30-day
terms. They are neither past due nor impaired. The amount is fully collectable. Due to the short-term nature of
these receivables, their carrying value is assumed to approximate their fair value.
Fin Resources Limited
24
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
6.
7.
8.
Other Assets
Prepayments
Other Financial Assets
Investment in listed entity
Deferred Exploration and Evaluation Expenditure
Opening Balance
Expenditure capitalised during the year
Closing balance
2020
$
2019
$
20,436
17,187
100
100
680,440
47,914
728,354
459,635
220,805
680,440
The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful
development and commercial exploitation or sale of the respective mining areas.
9.
Trade and Other Payables
Trade payables
Other payables and accruals
10.
Issued Capital
(a) Issued and paid up capital
Issued and fully paid 291,691,438 (2019: 291,691,438)
Converting preference shares 100 (2019: 100)
9,326
21,431
30,757
20,110
22,794
42,904
29,847,459
800
29,848,259
29,847,459
800
29,848,259
(b) Movements in ordinary shares on issue
Opening balance
Transaction costs on share and option issue
Closing balance
291,691,438
291,691,438
29,847,459
291,691,438
-
29,847,459 291,691,438
29,892,165
(44,706)
29,847,459
30 June 2020
30 June 2019
No.
$
No.
$
Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
(c) Movements in converting preference shares
Opening balance
Closing balance
30 June 2020
30 June 2019
No.
2,006
2,006
$
800
800
No.
2,006
2,006
$
800
800
The converting preference shares do not have any voting rights but are entitled to the payment of a dividend.
The conversion terms for these shares have now expired.
(d) Capital risk management
The Group’s capital comprises share capital, reserves less accumulated losses amounting to a net equity of
$4,204,415 at 30 June 2020 (2019: $4,470,259). The Group manages its capital to ensure its ability to continue
as a going concern and to optimise returns to its shareholders.
The Group was ungeared at year end and not subject to any externally imposed capital requirements. Refer to
note 16 for further information on the Group’s financial risk management policies.
Fin Resources Limited
25
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
(e) Share Options and Performance Rights
As at the date of this report there were 137,230,915 unissued ordinary shares under options and 6,000,000
under performance rights. The details of these securities are as follows:
Number
Type
32,000,000 Unlisted Options
105,230,915 Listed Options (ASX: FINOA)
6,000,000 Performance Rights
Exercise Price $
Expiry Date
$0.03
$0.025
$0.001
14 May 2021
31 December 2021
14 May 2023
No holder has any right under the options or performance rights to participate in any other share issue of the
Company or any other entity. No options expired unexercised during the financial year. 2,000,000 performance
rights were forfeited during the financial year. No options or performance rights were exercised during or
since the year ended 30 June 2020.
11. Reserves
Option, performance rights, share based payments and option premium
reserves
2,774,745
2,745,272
2020
$
2019
$
Movements in Reserves
Opening balance
Movement
Closing balance
2,745,272
29,473
2,774,745
2,586,649
158,623
2,745,272
The share based payments reserve arises on the grant of share options to Directors, Executives and senior
employees as part of their remuneration, to consultants for services provided and as consideration for project
acquisitions (refer to note 17). Further information about share-based payments to employees is made in the
remuneration report. This reserve also includes subscription proceeds from options.
12. Accumulated losses
Movements in accumulated losses were as follows:
Opening balance
Loss for the year
Closing balance
13. Auditor’s Remuneration
The auditor of Fin Resources Limited is Stantons International Audit and
Consulting Pty Ltd
Amounts paid or due and payable for:
- an audit or review of the financial report
(28,123,272)
(295,317)
(28,418,589)
(27,848,371)
(274,901)
(28,123,272)
35,818
35,818
33,666
33,666
14. Key Management Personnel Disclosures
(a) Remuneration of Key Management Personnel
Details of the nature and amount of each element of the emolument of each Director and Executive of the
Company for the financial year are as follows:
Short term employee benefits
Share based payments
Other employee expense (superannuation)
Total remuneration
150,794
29,473
8,626
188,893
150,794
34,464
8,626
193,884
Fin Resources Limited
26
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
Transactions with key management personnel were made at arm’s length at normal market prices and normal
commercial terms. There were no other transactions with key management personnel for the year ended 30
June 2020.
(c) Subsidiaries
The consolidated financial statements include the financial statements of Fin Resources Limited and the
subsidiaries listed in the following table:
Name of Entity
Komodo Energy Pty Limited
Crestwood Pty Ltd
Sugarbay Investments Pty Limited
Country of
Incorporation
Australia
Australia
Australia
Equity Holding
2020
100%
100%
100%
2019
100%
100%
100%
(d) Loans to/from related parties
There were no loans made or outstanding to Directors of Fin Resources and other key management personnel
of the Group, including their personally related parties.
15.
Loss per Share
Basic Loss per share amounts are calculated by dividing net loss for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year. The
following reflects the loss and share data used in the basic and diluted earnings per share computations:
Loss attributable to owners of the parent
Weighted average number of ordinary shares used in calculating basic
loss per share:
Effect of dilution:
Share options and performance rights
Adjusted weighted average number of ordinary shares used in
calculating diluted loss per share:
Loss per share
From continuing operations (cents)
2020
$
2019
$
(295,317)
(274,901)
Number of Shares
291,691,438
291,691,438
291,691,438
291,691,438
2020
2019
(0.10)
(0.09)
There have been no other transactions involving ordinary shares or potential ordinary shares since the
reporting date and before the completion of these financial statements.
16.
Financial Risk Management
The Group does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes. The use of financial derivatives is governed by the Group’s policies approved by the
Board of Directors, which provide written principles on the use of financial derivatives.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements.
Fin Resources Limited
27
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
(a) Liquidity Risk
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of
financial assets and liabilities.
(b) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair
value of financial instruments. The Group’s exposure to market risk for changes to interest rate risk relates
primarily to its earnings on cash. The Group manages the risk by investing in short term deposits.
Interest rate sensitivity
The following table demonstrates the sensitivity of the Group’s statement of profit or loss and other
comprehensive income to a reasonably possible change in interest rates, with all other variables constant.
Change in Basis Points
Increase 75 basis points
Decrease 75 basis points
Effect on Post Tax Loss ($)
Increase/(Decrease)
2019
2020
Effect on Equity including
retained earnings ($)
Increase/(Decrease)
2019
2020
26,091
(26,091)
28,544
(28,544)
26,091
(26,091)
28,544
(28,544)
A sensitivity of 75 basis points has been used as this is considered reasonable given the current level of both
short term and long-term Australian Dollar interest rates. The change in basis points is derived from a review
of historical movements and management’s judgement of future trends.
(c) Credit Risk Exposures
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining
sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from
defaults.
The Group measures credit risk on a fair value basis. The Group does not have any significant credit risk
exposure to a single counterparty or any group of counterparties having similar characteristics. The carrying
amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the
Group’s maximum exposure to credit risk without taking account of the fair value of any collateral or other
security obtained.
Cash and cash equivalents AA
Trade and other receivables
(d) Capital Risk Management
2020
$
3,478,846
7,436
3,486,282
2019
$
3,805,868
9,568
3,815,436
When managing capital, management’s objective is to ensure the entity continues as a going concern as well
as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to
maintain a capital structure that ensures the lowest cost of capital available to the entity. In order to maintain
or adjust the capital structure, the entity may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares, enter into joint ventures or sell assets.
There is no current intention to incur debt funding on behalf of the Company as on-going exploration
expenditure will be funded via cash reserves, equity or joint ventures with other companies. The Company is
not subject to any externally imposed capital requirements.
Fin Resources Limited
28
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
(e) Foreign exchange risk
The Group operated in Australia in the year ended 30 June 2020 and had no exposure to foreign exchange risk.
(f) Fair value estimation
The Directors consider that the carrying amount of financial assets and financial liabilities recorded in the
financial statements approximates their fair value. The Group has performed sensitivity analysis that
demonstrates the effect on the current year results and equity which could result from a change in these risks.
Financial risk management objectives
The Group’s corporate treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the
Group through internal risk reports which analyse exposures by degree and magnitude of risks. These risks
include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk
and cash flow interest rate risk.
2020 Financial Assets
Financial assets at fair value through profit and loss
2019 Financial Assets
Financial assets at fair value through profit and loss
Level 1
$
Level 2
$
Level 3
$
Total
$
100
100
100
100
-
-
-
-
-
-
-
-
100
100
100
100
Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets and
liabilities have been based on the closing quoted prices at reporting date, excluding transaction costs. In
valuing unlisted investments, included in Level 2 of the hierarchy, valuation techniques such as those using
comparisons to similar investments for which market observable prices are available have been adopted to
determine the fair values of these investments. Derivative instruments are included in Level 2 of the hierarchy
with the fair values being determined using valuation techniques incorporating observable market data
relevant to the hedged position.
17.
Share Based Payments
(a) Recognised share based payment transactions
Share based payment transactions recognised either as operational expenses in the statement of profit or loss
and other comprehensive income or as capitalised project acquisition costs in equity during the year were as
follows:
Employee, Consultant and Director share based payments
(note 17 (b))
Share based payments to suppliers (note 17 (c))
2020
$
2019
$
$29,473
-
34,464
18,928
(b) Employee, Consultant and Director share based payments
There were no unlisted options issued to employees, Consultants and Directors during the year ended 30 June
2020. The expense recognised during the year on options granted in prior periods was $29,473.
8 million Performance Rights, exercisable at $0.001, were issued during the year ended 30 June 2018 to
Directors and Officers as approved by shareholders on 13 April 2018. The Performance Rights vest and become
exercisable by the holder upon the Company achieving a VWAP of at least $0.03 over a period of 20 trading
days. The deadline for conversion is 5 years from the date of issue (14 May 2023).
Fin Resources Limited
29
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
The Performance Rights could not vest within 3 months of the Performance Right issue date (14 May 2018). As
a result, the share based payment expense in relation to the performance rights has been recorded during the
financial year ended 30 June 2019. The fair value at grant date of options granted during the reporting year
was determined using the Black Scholes option pricing model that takes into account the exercise price, the
term of the option, the share price at grant date, the expected price volatility of the underlying share and the
risk-free interest rate for the term of the option.
The table below summarises Performance Rights granted during the year ended 30 June 2018. The vesting
period for these Performance Rights commenced during the year ended 30 June 2019:
Grant Date Expiry date
Exercise
price per
option
Balance at
start of the
year
Granted
during the
year
Exercised
during the
year
Expired /
forfeited
during the
year
Balance at
end of the
year
Exercisable
at
end of the
year1
14/05/2018 14/05/2023 $0.001
- 8,000,000
-
(2,000,000) 6,000,000
-
Number Number
Number
Number
Number Number
1 Options will vest upon the Company achieving a VWAP of at least $0.03 over a period of 20 trading days.
The model inputs, not detailed in the table above, for Performance Rights granted included:
share price at grant date was $0.024;
a) Performance Rights were granted for nil cash consideration;
b) expected lives of the Performance Rights is 5 years;
c)
d) expected volatility of 100%;
e) expected dividend yield of nil; and
f)
a risk-free interest rate of 1.25%
(c) Share-based payment to suppliers
There were no unlisted options issued to suppliers during the year ended 30 June 2020.
During the financial year ended 30 June 2019, the Company issued listed options to Lead Manager’s for broker
related services rendered. The fair value at grant date of the options granted was determined using the Black
Scholes option pricing model that takes into account the exercise price, the term of the option, the share price
at grant date, the expected price volatility of the underlying share and the risk-free interest rate for the term of
the option.
The table below summarises options granted to Suppliers during the year ended 30 June 2019.
Grant Date Expiry date
Exercise
price per
option
Balance at
start of
the year
Granted
during the
year
Exercised
during the
year
Expired
during the
year
Balance at
end of the
year
Exercisable at
end of the year
06/12/2018 31/12/2021 $0.025
-
8,000,000
-
- 8,000,000
8,000,000
Number Number
Number Number Number
Number
The model inputs, not included in the table above, for supplier options granted during the year ended 30 June
2019 included:
a) options were granted for $0.001;
b) expected lives of the options is 3.0 years;
c)
share price at grant date was $0.015;
d) expected volatility of 53%;
e) expected dividend yield of nil; and
f)
a risk-free interest rate of 1.94%
Fin Resources Limited
30
2020 Annual Report to Shareholders
Fin Resources Limited
Notes to the Consolidated Financial Statements for the year ended 30 June 2020
18. Dividends
No dividend was paid or declared by the Company in the year ended 30 June 2020 or the period since the end
of the financial year and up to the date of this report. The Directors do not recommend that any amount be
paid by way of dividend for the financial year ended 30 June 2020.
19. Contingent Liabilities and Contingent Assets
The Directors are not aware of any contingent liabilities or contingent assets at the reporting date.
20. Parent Entity Information
The following details information related to the parent entity, Fin Resources Limited, at 30 June 2020. The
information presented here has been prepared using consistent accounting policies as presented in note 2.
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Profit/(loss) of the parent entity
Other comprehensive income for the year
Total comprehensive loss of the parent entity
2020
$
3,506,812
4,235,166
(30,757)
(30,757)
4,204,409
29,848,259
2,774,746
(28,418,596)
4,204,409
(295,317)
-
(295,317)
2019
$
3,832,716
4,513,156
(42,903)
(42,903)
4,470,253
29,848,259
2,745,273
(28,123,279)
4,470,253
(274,901)
-
(274,901)
The parent company has not provided any guarantees and does not have any other commitments or
contingent assets or liabilities that are not disclosed elsewhere in the financial report.
21. Commitments
In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is
committed to meet the conditions under which the tenements were granted and the obligations of any joint
venture agreements. The timing and amount of exploration expenditure commitments and obligations of the
Group are subject to the minimum expenditure commitments required as per the Mining Act, as amended, and
may vary significantly from the forecast based upon the results of the work performed which will determine
the prospectivity of the relevant area of interest.
These obligations are not provided for in the financial report and are payable. The annual minimum
expenditure commitment on the Group’s tenements is $142,000.
22.
Subsequent Events
There have been no other significant events subsequent to the end of the financial year to the date of this
report.
Fin Resources Limited
31
2020 Annual Report to Shareholders
Directors’ Declaration
In accordance with a resolution of the Directors of Fin Resources Limited, state that:
1. In the opinion of the Directors:
a) the financial statements and notes of Fin Resources Limited for the year ended 30 June 2020 are in
accordance with the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the Group’s consolidated financial position as at 30 June 2020 and
of its performance for the year ended on that date; and
complying with Accounting Standards (including the Australian Accounting Interpretations), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b) the financial statements and notes also comply with International Financial Reporting Standards as
disclosed in note 2.
2. There are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable.
3. This declaration has been made after receiving the declarations required to be made by the Directors in
accordance with sections of 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
On behalf of the Board
Jason Bontempo
Non-Executive Director
Perth, Western Australia
14 September 2020
Fin Resources Limited
32
2020 Annual Report to Shareholders
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
14 September 2020
Board of Directors
Fin Resources Limited
Level 1, 35 Richardson Street
West Perth WA 6005
Dear Directors
RE:
FIN RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Fin Resources Limited.
As Audit Director for the audit of the financial statements of Fin Resources Limited for the year
ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir Tirodkar
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
FIN RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Fin Resources Limited (“the Company”) and its subsidiaries
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2020,
the consolidated statement of comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Company in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board's APES 110: Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
We have determined no key audit matter to be communicated in our report.
Liability limited by a scheme approved
under Professional Standards Legislation
Other Information
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2020 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks
of material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall
presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to
the related disclosures in the financial report or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going
concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in Internal control that
we identify during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore key audit matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 6 to 10 of the directors’ report for the
year ended 30 June 2020. The directors of the Company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act
2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards. In our opinion, the Remuneration Report
of Fin Resources Limited for the year ended 30 June 2020 complies with section 300A of the
Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Samir R Tirodkar
Director
West Perth, Western Australia
14 September 2020
ASX Additional Information
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report
is as follows. The information is current at 4 September 2020.
Distribution of Share Holders
Number of Holders
Ordinary Shares
Number of Shares
%
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
TOTAL
46
105
59
638
303
1,151
10,296
328,272
470,024
21,985,631
268,897,215
291,691,438
0.004
0.112
0.164
7.53
92.19
100
There were 466 holders of ordinary shares holding less than a marketable parcel.
Top Twenty Share Holders
The names of the twenty largest holders of quoted equity securities are listed below:
Name
SEVENTY THREE PTY LTD
J & J BANDY NOMINEES PTY LTD
SAMBOR TRADING PTY LTD
ZESSHAM PTY LTD
PEARSE STREET PTY LTD
MRS TIZIANA BATTISTA
NERO RESOURCE FUND PTY LTD
SAMMY RESOURCES PTY LTD
ADRIATIC PTY LTD
MR XIN FANG + MRS QIUYI LIN
COSMOS NOMINEES PTY LTD
708 CAPITAL PTY LTD
DABBLER PTY LTD
YUCAJA PTY LTD
JAMEKER PTY LTD
MS INGRID JOAN OLSEN
CMC MARKETS STOCKBROKING NOMINEES PTY LIMITED
CROSSPICK RESOURCES PTY LTD
MR JUSTIN ALBERT TREMAIN + MRS SASHA TARA TREMAIN
JALAVER PTY LTD
Substantial Shareholders
Name
SEVENTY THREE PTY LTD
J & J BANDY NOMINEES PTY LTD
Shares
32,000,000
30,000,000
10,250,000
9,000,000
7,600,000
7,000,000
6,250,000
5,000,000
4,795,313
4,500,000
4,000,000
4,000,000
3,350,000
3,340,670
3,333,333
3,288,928
2,514,411
2,500,000
2,322,471
2,300,000
147,345,126
%
10.97
10.28
3.51
3.09
2.61
2.40
2.14
1.71
1.64
1.54
1.37
1.37
1.15
1.15
1.14
1.13
0.86
0.86
0.80
0.79
50.51
Shares
32,000,000
30,000,000
62,000,000
%
10.97
10.28
21.25
Fin Resources Limited
38
2020 Annual Report to Shareholders
ASX Additional Information
Distribution of Option Holders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
TOTAL
Number of Holders
9
17
15
76
47
164
Listed Options
Number of Options
3,833
58,996
122,842
2,752,783
102,292,461
105,230,915
%
0.004
0.06
0.116
2.621
97.21
100
Top Twenty Listed Option (FINOA) Holders
The names of the twenty largest holders of quoted options are listed below:
Name
J & J BANDY NOMINEES PTY LTD
JALAVER PTY LTD
MRS DONNA LEA GULLUNI
FIRST INVESTMENT PARTNERS PTY LTD
CROSSPICK RESOURCES PTY LTD
GROUP SEVENTY THREE PTY LTD
SURF COAST CAPITAL PTY LTD
2428 PTY LTD
ZESSHAM PTY LTD
MR DAVID SAMUEL CHURCH
NERO RESOURCE FUND PTY LTD
MISS STACEY O'NEILL
MRS LEONA INEZ LAMPE
MR XIN FANG
RANDAL INVESTMENT HOLDINGS PTY LTD
ABROLHOS EDGE PTY LTD
ACN 161 604 315 PTY LTD
D M L & J D L PTY LTD
MR SAMUEL GERSHON JACOBS + MRS SARITA DEVI JACOBS + MISS MANEKHA
BRIDGETTE JACOBS
MR DAVID ARITI
1 Options are exercisable at $0.025 each, expiring 31 December 2021.
On-Market Buy Back
There is no current on-market buy back.
Options1
19,163,823
18,777,778
9,666,667
5,700,000
5,000,000
5,000,000
4,902,813
3,573,573
3,333,334
2,500,020
2,083,334
2,000,000
2,000,000
1,572,836
1,080,461
1,050,000
1,000,000
1,000,000
%
18.21
17.84
9.19
5.42
4.75
4.75
4.66
3.4
3.17
2.38
1.98
1.9
1.9
1.49
1.03
1
0.95
0.95
1,000,000
0.95
863,333
91,267,972
0.82
86.74
Voting Rights
All ordinary shares carry one vote per share without restriction. Options have no voting rights.
Use of Proceeds
In accordance with listing rule 4.10.19, the Company confirms that it has used cash and assets in a form readily
convertible to cash in a way consistent with its business objectives during the financial year ended 30 June
2020.
Fin Resources Limited
39
2020 Annual Report to Shareholders
ASX Additional Information
Unquoted Equity Securities
Performance Rights
Number
Class
6,000,000
Performance Rights over ordinary shares
exercisable at $0.001 on or before 14 May 2023.
Options
Number
Class
Holders with more than 20%
- Aaron Dean Bertolatti 2,000,000 performance rights
- Mrs Lenore Theresa Radonjic 2,000,000
performance rights
- Mrs Tiziana Battista
2,000,000 performance rights
Holders with more than 20%
32,000,000 Options over ordinary shares exercisable at
- Sammy Resources Pty Ltd 10,000,000
$0.03 on or before 14 May 2021.
Options
Fin Resources Limited
40
2020 Annual Report to Shareholders
Tenements and Project Locations
FIN Resources Limited Tenements
Location
Area
Structure
Western Australia
Western Australia
Western Australia
134km2
50Km2
44km2
51%
51%
51%
AUSTRALIA
E80/4808
E20/900
E28/2652
km2 – Square Kilometres
Location of the Company’s Projects in Western Australia
Fin Resources Limited
41
2020 Annual Report to Shareholders
Important Information and Disclaimers
Competent Persons Statement
The information in this report that relates to Exploration Results and other technical information complies with
the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code) and has been compiled and assessed under the supervision of Ms Felicity Repacholi-
Muir, an independent consultant to the Company. Ms Felicity Repacholi-Muir is a Member of the Australian
Institute of Geoscientists. She has sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the JORC Code. Ms Repacholi-Muir consents to the inclusion in this
announcement of that matters based on her information in the form and context in which it appears.
Fin Resources Limited
42
2020 Annual Report to Shareholders