Freehill Mining Limited
ACN 091 608 025
Annual Report - 30 June 2020
Freehill Mining Limited
Corporate directory
30 June 2020
Directors
Raymond Charles Mangion
Paul Davies
Peter Hinner
Company secretary
Paul Davies
Registered office
Principal place of business
Share register
Auditor
Level 24, 570 Bourke St
Melbourne, Victoria,
Australia, 3000
Level 24, 570 Bourke St,
Melbourne, Victoria,
Australia, 3000
Automic Registry Services
Level 12, 50 Holt Street
Surry Hills, NSW 2000
RSM Australia Partners
Level 21, 55 Collins Street
Melbourne, Victoria, 3000
Stock exchange listing
Freehill Mining Limited shares are listed on the Australian Securities Exchange (ASX
code: FHS)
Website
www.freehillmining.com
Corporate Governance Statement
Refer to www.freehillmining.com
1
Freehill Mining Limited
Directors' report
30 June 2020
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Freehill Mining Limited (referred to hereafter as the 'company' or 'parent entity') and
the entities it controlled at the end of, or during, the year ended 30 June 2020.
Directors
The following persons were directors of Freehill Mining Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Raymond Charles Mangion
Paul Davies
Samuel Duddy (resigned 6 February 2020)
Peter Hinner
Wayne Johnson (resigned 29 August 2019)
Impact of COVID 19 pandemic
During the period ended 30 June 2020, the COVID-19 was declared a pandemic by the World Health Organisation (WHO).
The pandemic has adversely affected the global economy, including an increase in unemployment, decrease in consumer
demand, interruptions in supply chains, and tight liquidity and credit conditions. Since its outbreak, governments worldwide
have set up measures to contain the pandemic. Many countries have required entities to limit or suspend business
operations, and have also implemented travel restrictions and quarantine measures. Monetary and fiscal stimulus packages
have also been introduced in some countries. As the COVID-19 outbreak continues to evolve, the estimated financial impact
cannot be reasonably determined at this juncture. The impact which COVID 19 has had on the consolidated entity is set out
below.
Chilean operations
In response to the pandemic the Chilean government has imposed restrictions. These have resulted in delays to the
processing of materials from the drilling program feeding in to the feasibility for the Yerbas Beunas project. Whilst there have
been delays this has not impacted on the likelihood that the project will ultimately be feasible.
Australian operations
The impact of COVID-19 on the consolidated entity's Australian operations has not been material due to their scale and
nature of operations as a holding company.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $3,321,938 (30 June 2019: $2,508,162).
Refer to the Chairman's Letter that directly precedes this Directors' Report.
Significant changes in the state of affairs
On 2 September 2019, the company completed the acquisition of an 80 hectare tenement known as Arenas XI 1/20, located
directly to the south of and adjoining to the Yerbas Buenas project area.
Refer to note 14 of the financial statements for information on the shares issued in the company during the financial year.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
Since 30 June 2020, the company has issued the fully paid ordinary shares :-
2
Freehill Mining Limited
Directors' report
30 June 2020
●
●
●
●
A total of 11,054,540 fully paid ordinary on the conversion of options raising $276,364;
A total of 12,788,978 fully paid ordinary shares valued at $601,970 in relation to the conversion of debt and accrued
interest;
A total of 1,000,000 fully paid ordinary shares valued at $57,000 to key management personnel as part of their
remuneration; and
A total of 10,000,000 fully paid ordinary shares as part of a placement raising $600,000 before costs.
On 20 August 2020, the company issued 6,000,000 performance shares to the company's CFO and Executive Directors
Paul Davies as part of his remuneration package.
On 20 October 2020, the company announced that its wholly owned subsidiary, San Patricio Mineria SpA (‘San Patricio’),
has completed the acquisition from Minera El Dorado SCM of the 750 hectare El Dorado Project tenements that directly
adjoin Freehill’s 67Mt Yerbas Buenas magnetite project.
Since 30 June 2020, the company has received a total of $525,000 in relation to debt with conversion option. Interest is
payable at 10% per annum and the borrowings expire in November 2021. It can be converted at a 15% discount to 7 day
VWAP.
The impact of the COVID 19 pandemic has been outlined in note 3 to the financial statements. The impact has continued to
be felt since 30 June 2020 and is being monitored by the board.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations have
not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State
law.
Information on directors
Name:
Title:
Qualifications:
Experience and expertise:
Raymond Charles Mangion
Non-Executive Director and Chairman
Associate Diploma of Business (Accounting) and an Associate Diploma in Financial
Planning.
Ray Mangion has performed the role of Managing Director of Morbak Investments Pty
Ltd for the past 18 years, having created the business as a start-up business. He has
approximately 30 years’ managerial experience.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
Interests in rights:
35,407,449 fully paid ordinary shares
2,727,272 options over ordinary shares
Nil
3
Freehill Mining Limited
Directors' report
30 June 2020
Name:
Title:
Qualifications:
Experience and expertise:
Paul Davies
Director and Chief Financial Officer
Paul holds an Economics Degree from Monash University, has qualified as a Chartered
Accountant and is an alumnus of the Stanford Business School.
Paul Davies has extensive experience as CFO of both publicly traded and privately
held companies. Over the past 10 years he has been involved with many early stage
companies involving reporting, strategic planning, systems implementation and
fundraising. Prior to this Paul was Director in charge of Corporate and Institutional
Banking for Deutsche Bank Australia and a member of the Deutsche Bank Credit
Committee. He has been directly involved in over $20 billion worth of transactions
involving origination, advising, arranging, structuring, project finance, lead managing,
syndication, negotiation, risk management, including servicing many of Australia’s
major mining companies. Before Deutsche Bank Paul worked for a number of years
with both Bankers Trust Australia and Macquarie Bank.
With his 20 plus years in the finance sector, Paul brings to the Company considerable
experience in both debt and equity markets in addition to significant understanding of
the mining sector.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
Interests in rights:
4,706,787 fully paid ordinary shares
10,000,000 options over ordinary shares
6,000,000 performance rights
Name:
Title:
Qualifications:
Experience and expertise:
Peter Hinner
Chief Executive Officer
Bachelor of Science in Chemistry from the Queensland University of Technology with
post graduate qualifications in mining, metallurgy and business management
Mr Hinner was appointed COO of the Company in February 2017 and has over 35
years experience in the heavy minerals and gold industry both within Australia and
internationally.
Over the past several years he has worked predominantly internationally as a project
development consultant on a variety of projects in Africa, Korea, Indonesia, Malaysia
and South America. His previous roles have included senior management and
operational roles in several of the world’s largest mineral operations as well as mine
management roles with BP Minerals Indonesia, Operations Manager for the Tiwest
Joint Venture mine in Western Australia, Chief Operating Officer of an industrial
minerals company and senior consultant for KPMG.
He has significant mining, operating and project management experience in most
facets of the industry including exploration, dredging, processing, engineering design,
construction, commissioning and feasibility studies.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
Interests in rights:
14,201,205 fully paid ordinary shares
Nil
Nil
4
Freehill Mining Limited
Directors' report
30 June 2020
Experience and expertise:
Name:
Title:
Qualifications:
Samuel Duddy
Non-Executive Director (resigned 6 February 2020)
First Class Honours Degree Science, Master of Property Science and Master of
Business Administration (all from University of Queensland)
Mr Duddy is a substantial investor in Freehill and has previously visited the Yerbas
Buenas operations as part of his own due diligence process. Mr Duddy is currently a
board member and majority shareholder of a Civil Construction firm and brings to the
Board a wealth of knowledge and experience in business management, engineering
and finance.
Other current directorships:
N/A
Former directorships (last 3 years): N/A
N/A
Interests in shares:
Name:
Title:
Experience and expertise:
Wayne Johnson
Non-Executive Director (resigned 29 August 2019)
Wayne Johnson has over 30 years business and financial transaction experience
gained in Australia, New Zealand, Asia and America. He has extensive experience in
corporate advisory, governance and compliance as as as result of building, managing
and directing public and private companies from start-up to established public
corporations.
Other current directorships:
N/A
Former directorships (last 3 years): N/A
N/A
Interests in shares:
N/A
Interests in options:
N/A
Interests in rights:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretary
Paul Davies is company secretary. Refer above for details of his qualifications and experience.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2020, and
the number of meetings attended by each director were:
Raymond Charles Mangion
Paul Davies
Samuel Duddy
Peter Hinner
Wayne Johnson
Full Board
Attended
Held
4
4
3
4
1
4
4
3
4
1
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
5
Freehill Mining Limited
Directors' report
30 June 2020
The remuneration report is set out under the following main headings:
●
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high quality personnel. The board have structured an executive
remuneration framework that is market competitive and complementary to the reward strategy of the consolidated entity.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination, where the shareholders approved a maximum annual aggregate remuneration of
$200,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
Long-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
6
Freehill Mining Limited
Directors' report
30 June 2020
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the performance hurdles
of executives. STI payments are granted to executives based on specific annual targets and key performance indicators
('KPI's') being achieved. KPI's include profit contribution, customer satisfaction, leadership contribution and product
management.
The long-term incentives ('LTI') include long service leave and share-based payments including performance rights issued
in accordance with the company's Equity Incentive Plan.
Use of remuneration consultants
During the financial year ended 30 June 2020, the consolidated entity did not engage remuneration consultants.
Voting and comments made at the company's 29 November 2019 Annual General Meeting ('AGM')
At the 29 November 2019 AGM, 99.48% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2019. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
2020
Raymond Charles Mangion
Samuel Duddy
Wayne Johnson
Executive Directors:
Paul Davies *
Peter Hinner **
Salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
45,000
26,250
7,500
69,000
218,000
365,750
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45,000
26,250
7,500
112,647
100,000
212,647
181,647
318,000
578,397
*
**
During the year, Paul Davies received 2,572,457 fully paid ordinary shares valued at $30,000 and 10,000,000 options
over shares valued $82,647 as part of his remuneration.
During the year, Peter Hinner received 7,933,333 fully paid ordinary shares valued at $100,000 as part of his
remuneration.
7
Freehill Mining Limited
Directors' report
30 June 2020
2019
Raymond Charles Mangion
Samuel Duddy
Wayne Johnson
Executive Directors:
Paul Davies
Peter Hinner *
Other Key Management
Personnel:
Peter Hinner *
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
7,875
24,375
26,250
69,000
199,833
18,167
345,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37,125
20,625
-
45,000
45,000
26,250
30,000
26,000
99,000
225,833
50,000
163,750
68,167
509,250
*
Peter Hinner was appointed as a director on 31 July 2018. Fees earnt before that time has been recognised as key
management personnel remuneration. Peter Hinner has met the performance obligation in relation to 250,000 of the
performance shares that have been issued in relation to him. An expense has been recognised in relation to those
shares.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Raymond Charles Mangion
Samuel Duddy
Wayne Johnson
Executive Directors:
Paul Davies
Peter Hinner
Other Key Management
Personnel:
Peter Hinner
Fixed remuneration
2019
2020
At risk - STI
At risk - LTI
2020
2019
2020
2019
100%
100%
100%
100%
100%
100%
38%
68%
100%
88%
-
100%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62%
32%
-
12%
-
-
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Paul Davies
Executive Director and Chief Financial Officer
1 January 2017
Remuneration is set at $69,000 per annum inclusive of statutory superannuation plus
shares valued $30,000 per annum.
Name:
Title:
Agreement commenced:
Details:
Raymond Charles Mangion
Chairman
1 January 2017
Remuneration is set at $45,000 per annum inclusive of statutory superannuation.
8
Freehill Mining Limited
Directors' report
30 June 2020
Name:
Title:
Agreement commenced:
Details:
Peter Hinner
Chief Operating Officer
6 February 2017
Under the agreement Peter Hinner is entitled to $218,000 per annum. He also received
shares valued at $100,000 per annum.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
Details of shares issued to directors and other key management personnel as part of compensation during the year ended
30 June 2020 are set out below:
Name
Peter Hinner
Peter Hinner
Paul Davies
Date
Shares
Issue price
$
13 November 2019
13 November 2019
29 November 2019
4,600,000
3,333,333
2,572,457
$0.0187
$0.0150
$0.0117
50,000
50,000
30,000
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
13 November 2019
13 November 2019
12 November 2021
$0.0250
$0.0083
Name
Number of
options
granted
Grant date
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
Paul Davies
10,000,000
13 November
2019
13 November
2019
12 November
2021
$0.0250
$0.0083
Options granted carry no dividend or voting rights.
The number of options over ordinary shares granted to and vested by directors and other key management personnel as
part of compensation during the year ended 30 June 2020 are set out below:
Name
Paul Davies
Number of
Number of
Number of
Number of
options
granted
options
granted
options
vested
options
vested
during the
during the
during the
during the
year
2020
year
2019
year
2020
year
2019
10,000,000
- 10,000,000
-
9
Freehill Mining Limited
Directors' report
30 June 2020
Additional information
The earnings of the consolidated entity for the five years to 30 June 2020 are summarised below:
2020
$
2019
$
2018
$
2017
$
2016
$
Revenue
Loss after income tax
94
(3,321,938)
370
(2,508,162)
61
(2,965,089)
172
(1,522,205)
-
(968,925)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
Share price at financial year end (cents)
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
5.40
(0.29)
(0.29)
1.40
(0.43)
(0.43)
6.00
(0.84)
(0.84)
10.00
(0.51)
(0.51)
2020
2019
2018
2017
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Addition or As part of
the start of held at time of remuneration
resignation
the year
In lieu
of fees
Balance at
the end of
the year
Ordinary shares
Raymond Charles Mangion
Paul Davies
Peter Hinner
Samuel Duddy
5,454,545 35,407,449
7,083,333 22,869,571
4,706,787
-
2,134,330
4,787,880 14,201,205
-
1,479,992
131,209,482 (131,209,482)
-
141,907,137 (108,339,911) 10,505,790 10,242,425 54,315,441
-
2,572,457
7,933,333
-
-
-
Option holding
The number of options over ordinary shares in the company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Granted as
Additions
the start of
the year
part of
remuneration Exercised
Balance at
the end of
the year
Options over ordinary shares
Paul Davies
Ray Mangion
- 10,000,000
-
-
- 10,000,000
-
-
-
- 10,000,000
2,727,272
2,727,272
2,727,272 12,727,272
Performance rights holding
The number of performance rights over ordinary shares in the company held during the financial year by each director and
other members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Performance rights over ordinary shares
Peter Hinner
Balance at
the start of
the year
Granted
Expired/
forfeited/
other
Balance at
the end of
the year
Vested
1,000,000
1,000,000
-
-
-
-
-
-
1,000,000
1,000,000
10
Freehill Mining Limited
Directors' report
30 June 2020
Loans to key management personnel and their related parties
There were no loans transactions with key management personnel and their related entities made during the year ended 30
June 2020.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Freehill Mining Limited under option at the date of this report are as follows:
Grant date
13 November 2019
13 November 2019
Expiry date
12 November 2021
12 November 2021
Exercise
price
Number
under option
$0.0250 176,481,086
$0.1000 30,000,000
206,481,086
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares under performance rights
On 6 February 2017, the company issued 1,250,000 performance rights to Peter Hinner as part of his remuneration package.
These performance rights are in bundles of 250,000 contingent upon different performance targets being met. At 30 June
2020, the performance hurdles in relation to the first tranche of 250,000 performance rights had been meet leaving a total of
1,000,000.
No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in
any share issue of the company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Freehill Mining Limited issued on the exercise of options during the year ended 30 June
2020 and up to the date of this report.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility
on behalf of the company for all or part of those proceedings.
11
Freehill Mining Limited
Directors' report
30 June 2020
Non-audit services
The directors are of the opinion that the services as disclosed in note 19 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
Officers of the company who are former partners of RSM Australia Partners
There are no officers of the company who are former partners of RSM Australia Partners.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Ray Mangion
Chairman
29 October 2020
12
Freehill Mining Limited
Chairman's letter
30 June 2020
Dear Shareholders,
I am pleased to present to you this year’s annual report for Freehill Mining Limited in what has been a period of considerable
progress.
Despite 2020 being defined by the ongoing global pandemic caused by the COVID-19 virus, the year full of positives for our
company and we have made excellent progress and unlocked significant value. We have delivered a fourfold increase in the
Mineral Resource Estimate (MRE) of our 100%-owned Yerbas Buenas magnetite project and we have secured a new highly
prospective asset that has significantly strengthened our portfolio of quality assets in Chile and given Freehill exposure to
copper and gold.
2020 saw the completion of our second drilling program at Yerbas Buenas which took the project’s JORC-compliant MRE
from 18.4Mt @ 15.1% to 67Mt @ 19.1% - a very meaningful increase in both scale and grade. While we are confident that
further drilling could define an even larger resource, the Board took the prudent decision to commence a prefeasibility study
(PFS) to establish a purpose-built plant for commercial scale production from the Yerbas Buenas ore. Refinement and
execution of the PFS to deliver commercial operations will be an important part of our focus for 2021.
We are confident that we can establish Yerbas Buenas as a low-cost, long-life, dependable mining and processing operation
supplying quality magnetite to local and international customers. Interest from potential offtakers is most encouraging and
locking in supply agreements is a key deliverable for the Board in fiscal 2021.
Part of our growth strategy has been to use our well-established presence in Chile to assess other assets that broaden our
portfolio, complement our current asset base and growth strategy, and give us exposure to other attractive commodities. In
March we entered into a Heads of Agreement to acquire the 750 hectare El Dorado tenement package which joins our Yerbas
Buenas project and is highly prospective copper and gold.
The project is located in an area that has a rich history of copper mining and preliminary exploration activity undertaken in the
current year gives us every indication that El Dorado has excellent prospects. We are now well advanced with exploration
there with the acquisition recently completed on favourable terms for Freehill.
It has also been very encouraging to witness the level of investor support for the Company in 2020. In a major vote of
confidence for Freehill, we secured the support of experienced and respected investor Gavin Ross and his associated parties
who committed $1.45m in the year and a further $600,000 subsequent to the end of the year. As well, we have welcomed
some of our option holders converting their options into shares which has further strengthened our financial base. Freehill is
well funded and we are pleased to have the ongoing financial support from our loyal shareholder base.
We are confident that 2021 is shaping up to be another positive year for Freehill and we have a number of near-term catalysts,
being the multi-faceted exploration programs El Dorado and the delivery of the Yerbas Buenas PFS, that will both surely
deliver further value.
I would like to take this opportunity to thank you, our shareholders for your support, our committed executives and exploration
consultants, and the Board for their very solid guidance. 2021 is indeed full of promise.
Ray Mangion
Non-Executive Chairman
13
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Freehilll Mining 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)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONALDO
Partner
Melbourne, VIC
29 October 2020
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
-
14 -
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Freehill Mining Limited
Contents
30 June 2020
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Freehill Mining Limited
Shareholder information
General information
16
17
18
19
20
43
44
47
The financial statements cover Freehill Mining Limited as a consolidated entity consisting of Freehill Mining Limited and the
entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is
Freehill Mining Limited's functional and presentation currency.
Freehill Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 24, 570 Bourke St,
Melbourne, Victoria,
Australia, 3000
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 October 2020. The
directors have the power to amend and reissue the financial statements.
15
Freehill Mining Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Revenue
Interest revenue calculated using the effective interest method
Other revenue
Expenses
Corporate and administration expenses
Consulting expenses
Employee benefits expense
Depreciation and amortisation expense
Foreign exchange losses
Other expenses
Finance costs
Loss before income tax expense
Consolidated
Note
2020
$
2019
$
25
69
111
259
(840,170)
(745,204)
(724,996)
(429)
(477,185)
(114,974)
(419,074)
(996,055)
(291,091)
(359,290)
(2,747)
(102,321)
(38,683)
(718,345)
(3,321,938)
(2,508,162)
Income tax expense
5
-
-
Loss after income tax expense for the year attributable to the owners of
Freehill Mining Limited
(3,321,938)
(2,508,162)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income / (loss) for the year, net of tax
Total comprehensive loss for the year attributable to the owners of Freehill
Mining Limited
(2,601,376)
129,300
(2,601,376)
129,300
(5,923,314)
(2,378,862)
Cents
Cents
Basic earnings per share
Diluted earnings per share
27
27
(0.29)
(0.29)
(0.43)
(0.43)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
16
Freehill Mining Limited
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Total current assets
Non-current assets
Receivables
Property, plant and equipment
Exploration and evaluation asset
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Employee benefits
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2020
$
2019
$
6
7
8
9
917,111
97,244
2,487
1,016,842
62,480
962,736
41,326
1,066,542
586,032
9,887
464,804
13,282
13,335,980 14,025,904
13,931,899 14,503,990
14,948,741 15,570,532
10
11
12
13
475,027
72,303
10,216
557,546
2,168,786
2,068,899
-
4,237,685
432,839
70,000
502,839
-
70,000
70,000
1,060,385
4,307,685
13,888,356 11,262,847
14
15
27,096,965 20,106,620
1,022,709
(9,866,482)
(20,189)
(13,188,420)
13,888,356 11,262,847
The above statement of financial position should be read in conjunction with the accompanying notes
17
Freehill Mining Limited
Statement of changes in equity
For the year ended 30 June 2020
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2018
12,912,366
956,547
(7,358,320)
6,510,593
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive income / (loss) for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 14)
Share-based payments (note 28)
Transfers upon conversion of notes
-
-
-
-
129,300
(2,508,162)
-
(2,508,162)
129,300
129,300
(2,508,162)
(2,378,862)
7,105,116
-
89,138
-
26,000
(89,138)
-
-
-
7,105,116
26,000
-
Balance at 30 June 2019
20,106,620
1,022,709
(9,866,482) 11,262,847
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2019
20,106,620
1,022,709
(9,866,482) 11,262,847
Loss after income tax expense for the year
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
(2,601,376)
(3,321,938)
-
(3,321,938)
(2,601,376)
(2,601,376)
(3,321,938)
(5,923,314)
Share based payments
-
1,575,352
-
1,575,352
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 14)
Transfers upon conversion of notes
6,973,471
16,874
-
(16,874)
-
-
6,973,471
-
Balance at 30 June 2020
27,096,965
(20,189)
(13,188,420) 13,888,356
The above statement of changes in equity should be read in conjunction with the accompanying notes
18
Freehill Mining Limited
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Other revenue
Interest and other finance costs paid
Consolidated
Note
2020
$
2019
$
(2,342,250)
25
69
(310,504)
(823,694)
111
259
(319,061)
Net cash used in operating activities
26
(2,652,660)
(1,142,385)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Amounts advanced to related party
-
(1,473,249)
-
(16,029)
(1,215,139)
(912,091)
22
Net cash used in investing activities
(1,473,249)
(2,143,259)
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Proceeds from convertible notes
Share issue transaction costs
Repayment of borrowings
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
4,049,998
2,182,924
-
(605,446)
(646,936)
1,593,467
1,275,841
1,200,000
(182,238)
(704,792)
4,980,540
3,182,278
854,631
62,480
(103,366)
165,846
Cash and cash equivalents at the end of the financial year
6
917,111
62,480
The above statement of cash flows should be read in conjunction with the accompanying notes
19
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted for
the year ended 30 June 2020.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the
operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the
statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments
are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a
lessor accounts for leases. The consolidated entity does not hold any material leases and has applied the practical expedient
and not implemented lease accounting.
Going concern
These financial statements have been prepared on a going concern basis, which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
As disclosed in the financial statements, the consolidated entity incurred a loss of $3,321,938 and had operating cash
outflows of $2,652,660.
These events and conditions indicate a material uncertainty which may cast significant doubt as to whether the consolidated
entity will continue as a going concern and therefore whether it will realise assets and discharge liabilities in the normal
course of business and at the amounts shown in the financial report.
The directors have reviewed the cash flow forecast for the next 12 months from the date of signing this financial report, and
assessed that there are reasonable grounds to believe the consolidated entity will be able to continue as a going concern
due to the following factors:
●
Since 30 June 2020 the company has issued a total of 11,054,540 fully paid ordinary on the conversion of options
raising $276,364;
Since 30 June 2020 the company has issued a total of 12,788,978 fully paid ordinary shares valued at $601,970 in
relation to the conversion of debt and accrued interest;
Since 30 June 2020 the company has issued a total of 10,000,000 fully paid ordinary shares as part of a placement
raising $600,000 before costs; and
Since 30 June 2020, the company has received a total of $525,000 in relation to debt with conversion option. Interest
is payable at 10% per annum and the borrowings expire in November 2021. It can be converted at a 15% discount to
7 day VWAP.
The consolidated entity is planning to raise further funds for working capital requirements, as required. The directors
are confident, particularly given recent successful equity raisings, the consolidated entity will be able to access equity
capital markets.
●
●
●
●
20
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Accordingly, the directors believe consolidated entity will be able to continue as a going concern and that it is appropriate to
adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities
that might be necessary should the consolidated entity not continue as a going concern.
Comparatives
During the current period certain items have been reclassified to ensure accurate disclosure. Comparative information has
been reclassified and repositioned to be consistent with current year disclosures.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas
involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 23.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Freehill Mining Limited
('company' or 'parent entity') as at 30 June 2020 and the results of all subsidiaries for the year then ended. Freehill Mining
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
21
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation
of resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Freehill Mining Limited's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting
date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange
rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences
are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Revenue recognition
The consolidated entity recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when the performance obligations are met and the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
●
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
22
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
Trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business
model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial
asset represent contractual cash flows that are solely payments of principal and interest.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk
has increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a
default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is
determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
23
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within
other comprehensive income (as at 30 June 2019 and 30 June 2018, the Group held no financial assets measured at fair
value through other comprehensive income). In all other cases, the loss allowance is recognised in profit or loss.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in
an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
Pre-production mine sales are off-set against the carrying value of the exploration assets.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They
are subsequently measured at amortised cost using the effective interest method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement
of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a market rate for an
equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis until
extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a finance
cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in shareholders
equity as a convertible note reserve, net of transaction costs. The carrying amount of the conversion option is not remeasured
in the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in
the period in which they are incurred.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past
event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of
the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
24
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
Issued capital
Ordinary shares are classified as equity.
25
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 1. Significant accounting policies (continued)
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Freehill Mining Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of
the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2020. The consolidated
entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets are not being recognised at 30 June 2020, because their realisation is not yet considered probable.
26
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 2. Critical accounting judgements, estimates and assumptions (continued)
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Note 3. Impact of COVID 19 pandemic
During the period ended 30 June 2020, the COVID-19 was declared a pandemic by the World Health Organisation (WHO).
The pandemic has adversely affected the global economy, including an increase in unemployment, decrease in consumer
demand, interruptions in supply chains, and tight liquidity and credit conditions. Since its outbreak, governments worldwide
have set up measures to contain the pandemic. Many countries have required entities to limit or suspend business
operations, and have also implemented travel restrictions and quarantine measures. Monetary and fiscal stimulus packages
have also been introduced in some countries. As the COVID-19 outbreak continues to evolve, the estimated financial impact
cannot be reasonably determined at this juncture. The impact which COVID 19 has had on the consolidated entity is set out
below.
Chilean operations
In response to the pandemic the Chilean government has imposed restrictions. These have resulted in delays to the
processing of materials from the drilling program feeding into the feasibility for the Yerbas Beunas project. Whilst there have
been delays this has not impacted on the likelihood that the project will ultimately be feasible.
Australian operations
The impact of COVID-19 on the consolidated entity's Australian operations has not been material due to their scale and
nature of operations as a holding company.
Note 4. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment: Chilean Mining. This operating segment is based on the
internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision
Makers ('CODM')) in assessing performance and in determining the allocation of resources.
Note 5. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Non-deductible expenses
Temporary differences and losses not bought to account
Income tax expense
27
Consolidated
2020
$
2019
$
(3,321,938)
(2,508,162)
(913,533)
(689,745)
298,825
614,708
150,586
539,159
-
-
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 5. Income tax expense (continued)
Australian tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
Consolidated
2020
$
2019
$
7,381,699
5,862,673
2,029,967
1,612,235
In addition to the above Australian tax losses the consolidated entity has unused losses of 1,720,208,482 (AUD 3,612,438)
Chilean pesos which amount to an recognised benefit of 466,456,290 Chilean pesos (AUD 975,358). The corporate tax rate
in Chile is 27%.
The above potential tax benefit for unused tax losses has not been recognised in the statement of financial position. These
unused tax losses are available for used against future taxable income.
Note 6. Current assets - cash and cash equivalents
Cash on hand
Cash at bank
Note 7. Current assets - trade and other receivables
Other receivables
Receivable from Lacerta Finance & Mining SpA
Indirect taxes receivable
Consolidated
2020
$
2019
$
1,780
915,331
10
62,470
917,111
62,480
Consolidated
2020
$
2019
$
15,542
-
81,702
18,656
912,091
31,989
97,244
962,736
On 2 September 2019, the company completed the acquisition of an 80-hectare tenement known as Arenas XI 1/20, located
directly to the south of the Yerbas Buenas project area. This receivable from Lacerta formed the consideration for this
tenement acquisition.
Note 8. Non-current assets - receivables
Indirect taxes receivable
Consolidated
2020
$
2019
$
586,032
464,804
28
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 9. Non-current assets - exploration and evaluation asset
Exploration and evaluation - at cost
13,335,980 14,025,904
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
2020
$
2019
$
Consolidated
Balance at 1 July 2018
Additions
Exchange differences
Balance at 30 June 2019
Additions
Exchange differences
Balance at 30 June 2020
Exploration and evaluation assets are pledge as security of convertible notes issue (refer to note 13).
Note 10. Current liabilities - trade and other payables
Exploration &
evaluation
$
12,666,803
1,237,305
121,796
14,025,904
1,514,147
(2,204,071)
13,335,980
Trade payables
Interest payable
Other payables
Refer to note 17 for further information on financial instruments.
Note 11. Current liabilities - borrowings
Convertible notes payable
Short term loans
Consolidated
2020
$
2019
$
250,058
9,679
215,290
1,609,454
217,282
342,050
475,027
2,168,786
Consolidated
2020
$
2019
$
-
72,303
1,006,101
1,062,798
72,303
2,068,899
Refer to note 17 for further information on financial instruments.
The short term loans are repayable at 12 months from the date of issue and interest has been accrued at 15% per annum.
This loan has been repaid in full since 30 June 2020.
29
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 12. Current liabilities - employee benefits
Employee benefits
Note 13. Non-current liabilities - borrowings
Debt with conversion option
Refer to note 17 for further information on financial instruments.
Consolidated
2020
$
2019
$
10,216
-
Consolidated
2020
$
2019
$
432,839
-
Interest is payable on the Debt with conversion option at 10% per annum and the borrowings expire in November 2021. It
can be converted at a 15% discount to 7 day VWAP.
Total secured liabilities
The total secured liabilities (current and non-current) are as follows:
Convertible notes
Debt with conversion option
Assets pledged as security
The carrying amounts of assets pledged as security for current and non-current borrowings are:
Consolidated
2020
$
2019
$
-
432,839
930,884
-
432,839
930,884
Consolidated
2020
$
2019
$
Exploration and evaluation assets
13,335,980 14,230,011
Note 14. Equity - issued capital
Ordinary shares - fully paid
1,453,768,548
816,273,950 27,096,965 20,106,620
Movements in ordinary share capital
Consolidated
2020
Shares
2019
Shares
2020
$
2019
$
30
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 14. Equity - issued capital (continued)
Details
Date
Shares
Issue price
$
Balance
Shares issued to settle borrowings
Shares issued in relation to funds received before 30
June 2018
Shares issued to CEO
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings and trade and
other payables
Issue of shares
Shares issued to settle borrowings and trade and
other payables
Shares issued to settle borrowings
Issue of shares
Issue of shares
Shares issued to settle borrowings
Shares issued to settle borrowings
Issue of shares
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings and trade and
other payables
Issue of shares
Shares issued to settle borrowings
Shares issued to settle trade and other payables
Shares issued to settle borrowings
Transfers from reserves upon conversion of notes
Fair value adjustment on conversion of notes
Less cost of capital raising
1 July 2018
6 July 2018
6 July 2018
6 July 2018
13 July 2018
8 October 2018
365,201,691
31,729,019
$0.0480
12,912,366
1,522,993
5,208,333
827,814
353,847
3,087,509
$0.0480
$0.0640
$0.0180
$0.0180
29 November 2018
6 December 2018
19,041,952
53,031,164
$0.0150
$0.0150
14 December 2018
24 December 2018
24 December 2018
31 December 2018
31 December 2018
7 January 2019
28 February 2019
28 February 2019
4 March 2019
6 March 2019
8 March 2019
12 March 2019
12 March 2019
16 April 2019
17 May 2019
22,096,820
37,425,076
28,333,331
13,333,334
65,386,693
3,511,772
3,200,000
7,146,978
3,967,476
18,181,731
96,287,770
8,333,334
19,093,800
6,000,000
5,494,506
-
-
-
$0.0153
$0.0150
$0.0150
$0.0150
$0.0150
$0.0174
$0.0150
$0.0120
$0.0120
$0.0113
$0.0123
$0.0150
$0.0135
$0.0150
$0.0137
$0.0000
$0.0000
$0.0000
250,000
50,000
16,985
55,575
285,269
795,467
338,887
561,376
425,000
200,000
980,800
61,029
48,000
86,062
47,610
206,181
1,184,634
125,000
257,890
90,000
75,000
89,138
(286,767)
(271,875)
Balance
30 June 2019
816,273,950
20,106,620
31
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 14. Equity - issued capital (continued)
Details
Date
Shares
Issue price
$
Shares issued to settle borrowings, trade and other
payables and for cash
Shares issued to settle borrowings
Shares issued to settle trade and other payables
Shares issued to settle trade and other payables
Shares issued to settle borrowings and for cash
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings, trade and other
payables and for cash
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle trade and other payables
Shares issued to settle borrowings
Shares issued to settle trade and other payables
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to settle borrowings and trade and
other payables
Shares issued to settle trade and other payables
Shares issued on conversion of options and settle
borrowings
Shares issued for cash
Shares issued to settle borrowings and trade and
other payables
Shares issued on conversion of options and to settle
borrowings
Shares issued on conversion of options, to settle
borrowings and to settle borrowings
Transfers from reserves upon conversion of notes
Less cost of capital raising - equity and cash settled
13 November 2019
15 November 2019
29 November 2019
3 December 2019
20 December 2019
03 January 2020
21 January 2020
3 February 2020
18 February 2020
21 February 2020
11 March 2020
24 March 2020
6 April 2020
23 April 2020
30 April 2020
12 May 2020
21 May 2020
27 May 2020
1 June 2020
4 June 2020
334,668,350
34,057,148
2,572,457
3,000,000
24,502,321
19,263,638
30,727,271
86,252,526
7,182,633
17,276,169
14,174,346
3,184,783
5,787,410
1,858,696
4,883,855
1,504,832
$0.0110
$0.0100
$0.0117
$0.0110
$0.0110
$0.0110
$0.0110
$0.0144
$0.0136
$0.0184
$0.0247
$0.0230
$0.0173
$0.0230
$0.0205
$0.0241
7,501,222
1,475,000
$0.0245
$0.0300
5,952,335
14,000,000
$0.0301
$0.0500
3,685,507
324,083
30,000
33,000
269,739
211,900
338,000
1,240,444
98,000
318,645
350,007
73,250
100,122
42,750
100,000
36,212
183,912
16,500
179,189
700,000
11 June 2020
3,584,937
$0.0420
150,745
16 June 2020
2,913,142
$0.0412
120,041
30 June 2020
11,171,527
-
-
$0.0290
$0.0000
$0.0000
323,445
16,874
(1,952,020)
Balance
30 June 2020
1,453,768,548
27,096,965
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
32
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 14. Equity - issued capital (continued)
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
The consolidated entity is subject to certain financing arrangements covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements during the financial
year.
The capital risk management policy remains unchanged from the 30 June 2019 Annual Report.
Note 15. Equity - reserves
Foreign currency reserve
Share-based payments reserve
Convertible notes reserve
Consolidated
2020
$
2019
$
(1,662,041)
1,641,852
-
939,335
66,500
16,874
(20,189)
1,022,709
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign
operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Convertible note reserve
The reserve is used to recognise the value of the equity portion of convertible notes.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2018
Foreign currency translation
Share based payments
Transfers to issued capital upon conversion of notes
Balance at 30 June 2019
Foreign currency translation
Share based payments
Transfers to issued capital upon conversion of notes
Balance at 30 June 2020
Convertible Share based
notes
$
payments
$
Foreign
currency
$
106,012
-
-
(89,138)
16,874
-
-
(16,874)
40,500
-
26,000
-
810,035
129,300
-
-
66,500
-
1,575,352
-
939,335
(2,601,376)
-
-
-
1,641,852
(1,662,041)
33
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 16. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 17. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the consolidated entity. The consolidated entity uses different methods to measure different types of risk to which it is
exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks,
ageing analysis for credit risk.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the consolidated entity and appropriate procedures, controls and risk limits. The Board identifies,
evaluates and hedges financial risks within the consolidated entity's operating units.
Market risk
Foreign currency risk
The consolidated entity is exposed to foreign exchange risk in relation to its operation in Chile, and liabilities denominated in
US dollars.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and
cash flow forecasting.
The net carrying amount of the consolidated entity's foreign currency denominated financial assets and financial liabilities at
the reporting date were as follows:
Consolidated
US dollars
Chilean pesos
Assets
Liabilities
2020
$
2019
$
2020
$
2019
$
-
604,378
-
1,397,261
72,303
263,132
371,132
1,180,995
604,378
1,397,261
335,435
1,552,127
Consolidated - 2020
% change
profit before
tax
Effect on
equity
% change
profit before
tax
Effect on
equity
AUD strengthened
Effect on
AUD weakened
Effect on
US Dollar
Chilean pesos
20%
20%
14,460
-
14,460
(68,249)
20%
20%
(14,460)
-
(14,460)
68,249
14,460
(53,789)
(14,460)
53,789
34
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 17. Financial instruments (continued)
Consolidated - 2019
% change
profit before
tax
Effect on
equity
% change
profit before
tax
Effect on
equity
AUD strengthened
Effect on
AUD weakened
Effect on
US Dollar
Chilean pesos
20%
20%
74,226
-
74,226
(42,253)
20%
20%
(74,226)
-
(74,226)
(43,253)
74,226
31,973
(74,226)
(117,479)
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to any interest rate risk.
Credit risk
The consolidated entity is not exposed to significant credit risk.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 2020
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Short term loans
Debt with conversion option
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
475,027
-
15.00%
10.00%
72,303
-
547,330
-
432,839
432,839
-
-
-
-
-
-
-
-
475,027
72,303
432,839
980,169
35
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 17. Financial instruments (continued)
Consolidated - 2019
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Convertible notes payable
Short term loans
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
-
2,168,786
16.49%
15.00%
1,006,101
1,062,798
4,237,685
-
-
-
-
-
-
-
-
-
2,168,786
-
-
-
1,006,101
1,062,798
4,237,685
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 18. Key management personnel disclosures
Directors
The following persons were directors of Freehill Mining Limited during the financial year:
Raymond Charles Mangion
Paul Davies
Samuel Duddy
Peter Hinner
Wayne Johnson
Benefits to key management personnel are recognised in profit or loss within employee benefits expense.
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Share-based payments
Consolidated
2020
$
2019
$
365,750
212,647
345,500
163,750
578,397
509,250
36
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 19. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor
of the company, and unrelated firms:
Audit services - RSM Australia Partners
Audit or review of the financial statements
Other services - RSM Australia Partners
Taxation services
Audit services - out of network firms
Audit or review of the financial statements
Note 20. Contingent liabilities
Consolidated
2020
$
2019
$
61,000
80,920
9,500
10,500
70,500
91,420
-
32,625
During the prior year, legal claims were lodged in Chile by two separate former suppliers against Yerbas Buenas SpA (YB),
a fully owned subsidiary of the company. The claims are in relation to alleged breaches of contracts by YB.
In addition, YB has been joined in three labour related legal claims, in relation to alleged wrongful dismissal by Lacerta
Finance & Mining SpA (Lacerta) which resulted from the period where Lacerta was leasing the mining operations.
The above matters are in the early stages of assessment however, in consideration of advice from the Company’s legal
advisers in Chile, the directors believe that these matters will be resolved with minimal impact on the group position.
The consolidated entity had no other contingent liabilities at 30 June 2020 and 30 June 2019.
Note 21. Commitments
The consolidated entity had no commitments at 30 June 2020 and 30 June 2019.
Note 22. Related party transactions
Parent entity
Freehill Mining Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 24.
Key management personnel
Disclosures relating to key management personnel are set out in note 18 and the remuneration report included in the
directors' report.
37
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 22. Related party transactions (continued)
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
2020
$
2019
$
Payment for other expenses:
Interest paid and accrued on short terms loans payable to Ray Mangion and his wife
95,449
24,000
Other transactions:
Amounts advanced to Lacerta Finance and Mining SpA ("Lacerta"). Juan Dagach was a
director of Yerbas Buenas SpA until February 2019 and was also the general manager of
Lacerta.
-
912,091
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
2020
$
2019
$
Current payables:
Trade payables to Electrum Pty Ltd - an entity related to Peter Hinner
Trade payables and accrued expenses to directors in relation to unpaid fees and expenses
14,506
26,250
276,665
116,886
Loans to/from related parties
The following balances are outstanding at the reporting date in relation to loans with related parties:
Current borrowings:
Loan from Ray Mangion (director) and his wife
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 23. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
38
Consolidated
2020
$
2019
$
-
495,519
Parent
2020
$
2019
$
(2,249,738)
(2,110,719)
(2,249,738)
(2,110,719)
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 23. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Convertible notes reserve
Accumulated losses
Total equity
Parent
2020
$
2019
$
998,547
122,810
16,614,257 12,654,915
284,198
3,056,689
717,037
3,056,689
40,352,910 33,362,565
66,500
1,024,166
(24,855,005)
1,641,852
1,007,202
(27,104,744)
15,897,220
9,598,226
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2020 and 30 June 2019.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2020 and 30 June 2019.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2020 and 30 June 2019.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except
for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 24. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1:
Name
Freehill Investments Pty Ltd
Yerbas Buenas SpA
San Patricio Mineria SpA
Principal place of business /
Country of incorporation
Australia
Chile
Chile
Ownership interest
2019
2020
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Note 25. Events after the reporting period
Since 30 June 2020, the company has issued the fully paid ordinary shares :-
39
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 25. Events after the reporting period (continued)
●
●
●
●
A total of 11,054,540 fully paid ordinary on the conversion of options raising $276,364;
A total of 12,788,978 fully paid ordinary shares valued at $601,970 in relation to the conversion of debt and accrued
interest;
A total of 1,000,000 fully paid ordinary shares valued at $57,000 to key management personnel as part of their
remuneration; and
A total of 10,000,000 fully paid ordinary shares as part of a placement raising $600,000 before costs.
On 20 August 2020, the company issued 6,000,000 performance shares to the company's CFO and Executive Directors
Paul Davies as part of his remuneration package.
On 20 October 2020, the company announced that its wholly owned subsidiary, San Patricio Mineria SpA (‘San Patricio’),
has completed the acquisition from Minera El Dorado SCM of the 750 hectare El Dorado Project tenements that directly
adjoin Freehill’s 67Mt Yerbas Buenas magnetite project.
Since 30 June 2020, the company has received a total of $525,000 in relation to debt with conversion option. Interest is
payable at 10% per annum and the borrowings expire in November 2021. It can be converted at a 15% discount to 7 day
VWAP.
The impact of the COVID 19 pandemic has been outlined in note 3 to the financial statements. The impact has continued to
be felt since 30 June 2020 and is being monitored by the board.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Note 26. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2020
$
2019
$
Loss after income tax expense for the year
(3,321,938)
(2,508,162)
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Accrued finance costs and finance costs settled via issue of shares
Operating expenses settled via the issue of shares
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other operating assets
Increase/(decrease) in trade and other payables
Increase in employee benefits
Net cash used in operating activities
249
82,647
(13,377)
316,173
1,502,291
2,747
26,000
102,320
399,284
463,926
(195,358)
38,839
(1,072,402)
10,216
129,524
(39,845)
281,821
-
(2,652,660)
(1,142,385)
40
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 27. Earnings per share
Loss after income tax attributable to the owners of Freehill Mining Limited
(3,321,938)
(2,508,162)
Weighted average number of ordinary shares used in calculating basic earnings per share
1,140,465,178
583,292,191
Weighted average number of ordinary shares used in calculating diluted earnings per share 1,140,465,178
583,292,191
Number
Number
Consolidated
2020
$
2019
$
Basic earnings per share
Diluted earnings per share
Note 28. Share-based payments
Cents
Cents
(0.29)
(0.29)
(0.43)
(0.43)
During the half year the company issued the following options
●
●
●
Investors and brokers received 166,481,086 options in relation the company's capital raising efforts;
Lacerta received 30,000,000 options as part of it financials settlement; and
Key management personnel received 10,000,000 options as part of their remuneration
Set out below are summaries of options granted under the plan:
Number of
options
2020
Weighted
average
exercise price
2020
Number of
options
2019
Weighted
average
exercise price
2019
Outstanding at the beginning of the financial year
Granted
-
206,481,086
$0.0000
$0.0359
Outstanding at the end of the financial year
206,481,086
$0.0359
Exercisable at the end of the financial year
206,481,086
$0.0359
-
-
-
-
$0.0000
$0.0000
$0.0000
$0.0000
2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
13/11/2019
13/11/2019
12/11/2021
12/11/2021
$0.0250
$0.1000
- 176,481,086
- 30,000,000
- 206,481,086
-
-
-
- 176,481,086
- 30,000,000
- 206,481,086
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.36 years.
41
Freehill Mining Limited
Notes to the financial statements
30 June 2020
Note 28. Share-based payments (continued)
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
13/11/2019
13/11/2019
12/11/2021
12/11/2021
$0.1600
$0.0160
$0.0225
$0.1000
120.000%
120.000%
-
-
0.870%
0.870%
$0.0083
$0.0039
Note 29. Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2018
Net cash from financing activities
Conversion to equity
Balance at 30 June 2019
Net cash from financing activities
Conversion to equity
Balance at 30 June 2020
Borrowings
$
Total
$
4,537,572
571,049
(3,039,722)
4,537,572
571,049
(3,039,722)
2,068,899
2,126,601
(3,690,358)
2,068,899
2,126,601
(3,690,358)
505,142
505,142
42
Freehill Mining Limited
Directors' declaration
30 June 2020
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2020 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
___________________________
Ray Mangion
Chairman
29 October 2020
43
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Freehill Mining Limited
Opinion
We have audited the financial report of Freehill Mining Limited (the Company) and its subsidiaries (the
Consolidated entity), 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 Consolidated entity is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Consolidated entity'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 Consolidated entity 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the consolidated entity incurred a loss of
$3,321,938 and had net cash outflows from operating activities amounting to $2,652,660 during the year ended
30 June 2020. As stated in Note 1, these events and conditions, along with other matters as set forth in Note 1,
indicate that a material uncertainty exists that may cast significant doubt on the Consolidated entity’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
44
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section,
we have determined the matters described below to be the key audit matter to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Carrying value of Exploration & evaluation assets
Refer to Note 9 in the consolidated financial statements
The consolidated entity has capitalised exploration
expenditure, in relation to the Yerbas Buenas
project, with a carrying value of $13.3m, which
represented 89% of the total assets of the
consolidated entity as at 30 June 2020. We
determined this to be a key audit matter due to the
materiality of this asset in the statement of financial
position of the consolidated entity, and also
because of the significant management judgement
involved
in
accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (AASB 6),
including:
the carrying value
in assessing
Determination of whether expenditure can be
finding specific mineral
associated with
resources;
Assessment whether indicators of impairment
exists; and
Determination
of whether
exploration
activities have progressed to the stage at
which the existence of an economically
recoverable mineral
reserve may be
determined.
Our audit procedures in relation to the carrying value
of Exploration and evaluation assets included:
Assessing whether the consolidated entity's
policy for capitalising exploration and evaluation
asset costs is in accordance with Australian
Accounting Standards;
Reviewing a sample of additions capitalised as
exploration and evaluation assets to determine
whether the costs were appropriate to capitalise
in accordance with AASB 6 and the consolidated
entity’s accounting policy;
Obtaining evidence that the consolidated entity
has valid rights to explore in the specific areas of
interest;
Critically
and
assessing
evaluating
management’s assessment that no indicators of
impairment existed, including reviewing the
geologist’s
there are
reasonable prospects for eventual economic
extraction in the short term; and
concluding
report
relevant documentation,
Enquiring with management, and reviewing the
consolidated entity’s ASX announcements and
to assess
other
management’s determination that exploration
activities have not yet progressed to the point
where
the existence or otherwise of an
economically recoverable mineral resource may
be determined.
45
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated entity's annual report for the year ended 30 June 2020; but does not include the
financial report and the auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude 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 Consolidated entity
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 Consolidated entity or to cease
operations, or have 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar2_2020.pdf . This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 5 to 11 of the directors' report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Freehill Mining Limited., for the year ended 30 June 2020, complies
with section 300A of the Corporations Act 2001.
46
Report on the Remuneration Report (continued)
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONALDO
Partner
Dated: 29 October 2020
Melbourne, Victoria
Freehill Mining Limited
Shareholder information
30 June 2020
The shareholder information set out below was applicable as at 8 October 2020.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Number of Number
holders of
options over
shares
of
options
over shares
Number
Number
of holders
of ordinary ordinary
of
shares
shares
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
-
-
-
29
-
-
-
1,684,501
101
150,393,929
789
112,311
81
200,886
2,197,590
238
631 26,632,198
1,463,303,47
4
735
130
152,078,430
1,492,446,45
9
2,474
Holding less than a marketable parcel
-
-
919
644,017
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
shares
issued
Number held
195,333,585
86,694,032
86,448,485
59,341,323
44,814,063
35,407,449
33,315,152
30,496,113
22,952,486
22,095,451
21,946,589
20,900,299
19,000,000
16,031,520
15,749,910
15,327,543
13,349,650
13,333,333
13,276,571
13,064,000
13.09
5.81
5.79
3.98
3.00
2.37
2.23
2.04
1.54
1.48
1.47
1.40
1.27
1.07
1.06
1.03
0.89
0.89
0.89
0.88
778,877,554
52.18
SAMUEL WILLIAM DUDDY
DG FREEHOLD PTY LTD (DG FREEHOLD A/C)
J M ROSS SUPER PTY LTD (J M ROSS SUPER FUND A/C)
CAM NOMINEES PTY LTD (CAM NOMINEES SUPER FUND A/C)
PELICAN INVESTMENTS FAMILY A/C
R & A MANGION PTY LTD (STEGMAN SMSF A/C)
GEORGE THEONAS
HRM PARTNERS PTY LTD (L&P SUPERFUND A/C)
AEGIS INVESTMENT CAPITAL PTY LTD
MR LEO ILIAS RADIOTIS (L A RADIOTIS FAMILY A/C)
MS STEPHANIE LAUREN THEONAS
PAW SUPER PTY LTD (PAW SUPER FUND A/C)
MR RINO DI GIANTOMASSO
MR PETER BROUWER & MS TANIA BROUWER (P&T BROUWER SMSF A/C)
PETER HINNER
AKM MARLBOROUGH PTY LTD (M & M VINACCIA FAMILY A/C)
WATO HOLDINGS PTY LTD (GRILLO DISCRETIONARY A/C)
NAFRA PTY LTD
MR JAG ZENON MAXWELL (ZENON FAMILY A/C)
PINNACLE EQUITIES PTY LTD
47
Freehill Mining Limited
Shareholder information
30 June 2020
Options over ordinary
shares
% of total
options
issued
Number held
SAMUEL WILLIAM DUDDY
CAM NOMINEES PTY LTD (CAM NOMINEES SUPER FUND A/C)
MR SIMON WILLIAM TRITTON (INVESTMENT A/C)
RMVIC PTY LTD (RMVIC S/F A/C)
GEORGE THEONAS
ALITIME NOMINEES PTY LTD (HONEYHAM FAMILY A/C)
DC & PC HOLDINGS PTY LTD (DC & PC NEESHAM SUPER A/C)
MR MATTHEW KENDON STRAHLEY & MRS EMILY ANNE STRAHLEY (MK & EA
STRAHLEY FAMILY A/C)
MR JAG ZENON MAXWELL (ZENON FAMILY A/C)
DUDDY 2020 PTY LTD (DUDDY 2020 A/C)
SEMZJ INVESTMENTS PTY LTD (HALLELUYAH INVESTMENT A/C)
R & A MANGION PTY LTD (STEGMAN SMSF A/C)
HANWORTH QLD PTY LTD (HANWORTH A/C)
MRS TANIA LESLEY WATT & MR RODNEY JOHN WATT
MR STEVEN HUSSEY & MRS KIM HUSSEY (S& K HUSSEY S/F A/C)
HUNTERLAND HJDN PTY LTD
FREYABEAR FHMN PTY LTD
DR ANTHONY JOHN CERQUI & MRS SARAH JANE CERQUI (CERQUI SUPER FUND
A/C)
MR JIA-JIAN CHEN & MRS ZHANG PING
M D ZIMBLER PTY LTD (MICHAEL ZIMBLER SMSF A/C)
18,136,557
14,411,364
7,954,545
7,750,000
6,962,624
6,251,539
6,000,000
5,781,818
4,134,814
3,893,338
3,000,000
2,727,272
2,306,000
2,297,820
2,272,727
2,000,000
2,000,000
1,975,930
1,845,956
1,818,181
11.19
8.89
4.91
4.78
4.30
3.86
3.70
3.57
2.55
2.40
1.85
1.68
1.42
1.42
1.40
1.23
1.23
1.22
1.14
1.12
Substantial holders
Substantial holders in the company are set out below:
SAMUEL DUDDY
DG FREEHOLD PTY LTD (DG FREEHOLD A/C)
J M ROSS SUPER PTY LTD (J M ROSS SUPER FUND A/C)
SAMUEL WILLIAM DUDDY
CAM NOMINEES PTY LTD (CAM NOMINEES SUPER FUND A/C)
Voting rights
The voting rights attached to ordinary shares are set out below:
103,520,485
63.86
Ordinary shares
% of total
shares
issued
Number held
213,470,142
86,694,032
86,448,485
14.30
5.81
5.79
Options over ordinary
shares
% of total
options
issued
Number held
18,136,557
14,411,364
11.19
8.89
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
48
Freehill Mining Limited
Shareholder information
30 June 2020
Options
Option holders do not have voting rights.
49