Freehill Mining Limited
ACN 091 608 025
Annual Report - 30 June 2021
Freehill Mining Limited
Corporate directory
30 June 2021
Directors
Raymond Charles Mangion
Paul Davies
Jim Moore
Company secretary
Tom Sapountis
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
Connect National Audit Pty Ltd
Level 8/350 Collins St
MELBOURNE VIC 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
Chairman's letter
30 June 2021
Dear Fellow Shareholders,
On behalf of the Board of Directors, I am pleased to present this year’s annual report for Freehill Mining Limited.
Over the last twelve months the COVID-19 pandemic has continued to cause constant disruptions and uncertainty. Despite
the unpredictable operating environment, we have remained resolute and continued our substantial progress to deliver value
on our two 100% owned projects, the Yerbas Buenas magnetite asset and the El Dorado copper and gold leases.
Our newly established leadership team in Australia and Chile, which is made up of technical and corporate professionals
with solid experience in the mining sector, have worked tirelessly to fast-track the development of our projects, and it is
pleasing to note that we have now advanced our flagship Yerbas Buenas magnetite project to the point where phase one
mining is imminent.
In 2021 we took a coordinated and structured approach to strengthening key positions across our leadership team with a
focus on driving and accelerating our short to medium term objectives. Our team now boasts extensive experience and
expertise across a number of key disciplines with the corporate and financial capability, mining and engineering skills and
geological capability to pursue and execute our exploration and project development strategy.
The board and management team continue to plan for the future but also remain flexible in our ability to adapt to changing
conditions and unpredictability. During the year and having completed a second round of drilling at Yerbas Buenas, the
board took the decision to undertake a prefeasibility study (PFS) to establish a purpose-built plant for commercial scale
production of the Yerbas Buenas ore. In 2021 we began to witness this forward-thinking transition into success with
metallurgical test work from the PFS confirming the high quality of Yerbas Buenas product could produce +62% Fe iron ore
concentrate using totally dry process at high iron recoveries.
Confidence remains high that Yerbas Buenas will continue to develop into a low cost, long life, dependable mining and
processing operation. The ongoing PFS, two concurrent workstreams across YB1 and YB6 coupled with strong interest from
potential off-takers triggered us to pivot and make the prudent decision to suspend drilling at El Dorado and focus the majority
of our efforts into scaling up operations at Yerbas Buenas to the point where phase one mining will commence imminently.
Our deliverables in 2022 are to continue to drill out the larger resource to give us greater confidence in the discovered
tonnage, secure off-take agreements and deliver sustainable production.
Freehill is well-funded to continue advancing Yerbas Buenas, and what always remains encouraging is the continued support
from investors and this has been no different in 2021. Confidence from our investors was highlighted through the conversion
of options into shares during the year, further strengthening the Company’s balance sheet.We are grateful to have such a
loyal and dependable shareholder base and I would like to personally thank them for their ongoing support over the last
twelve months.
2022 is shaping up to be an exciting year and it has commenced well. We have been through extraordinary times with
patience and persistence and remain fully committed to delivering value to our shareholders in the face of it. The company
looks forward to keeping shareholders updated throughout what I believe will be a transformational year for Freehill Mining.
Ray Mangion
Non-Executive Chairman
2
Freehill Mining Limited
Directors' report
30 June 2021
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 2021.
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
Jim Moore (appointed 18 February 2021)
Peter Hinner (resigned 18 February 2021)
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
exploration program on all Chilean projects. Whilst there have been delays this has not impacted on the likelihood that the
project will ultimately be feasible, and therefore has not impacted on the impairment assessments in relation to exploration
assets.
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 $2,244,474 (30 June 2020: $2,831,376).
Refer to the Chairman's Letter that directly precedes this Directors' Report.
Significant changes in the state of affairs
The movements in the company's issued capital during the year are outlined below:-
●
●
●
●
●
●
85,014,765 fully paid ordinary share were issued on the exercise of options raising $2,125,369 before costs;
27,069,176 fully paid ordinary shares were issued settling debt valued at $1,231,178;
75,000,000 fully paid ordinary shares valued at $5,250,000 were issued as consideration for the acquisition of the El
Dorado project;
1,000,000 fully paid ordinary shares valued at $66,500 were issued in relation to performance shares;
10,000,000 fully paid ordinary were issued as part of placement raising $600,000 before costs; and
1,347,028 fully paid ordinary shares valued at $74,086 were issued to key management personnel as part of their
remuneration.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
3
Freehill Mining Limited
Directors' report
30 June 2021
Matters subsequent to the end of the financial year
On 9 July 2021, the company issued 2,145,245 fully paid ordinary shares valued at $0.0300 per share, retiring debt valued
at $64,465.
On 30 July 2021, the company issued 150,000 fully paid ordinary shares valued at $.0.25 per share, on the exercise of
options raising $3,750.
0n 6 September 2021, the company issued 2,030,377 fully paid ordinary shares valued at $0.0248 per share, retiring debt
valued at $50,437.
No other matter or circumstance has arisen since 30 June 2021 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.
Nil
Other current directorships:
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
4
Freehill Mining Limited
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
Paul Davies
Director and Chief Financial Officer until 24 February 2021 when he appointed Chief
Executive Officer
Paul holds an Economics Degree from Monash University, has qualified as a Chartered
Accountant and is an alumnus of the Stanford Business School.
Mr Davies has been CFO of the Company for six years prior to being appointed Chief
Executive. He brings an intimate knowledge of Freehill’s activities combined with
significant experience in the mining sector from his 30 plus years in the finance industry.
During his career, Mr Davies has held leadership roles with many organisations, both
large and small, in addition to his finance experience. Most notably, he 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
lead managing,
syndication, negotiation, risk management, including servicing many of Australia’s
major mining companies. Before Deutsche Bank, Mr. Davies worked for a number of
years with both Bankers Trust Australia and Macquarie Bank. Mr Davies holds an
Economics Degree from Monash University, has qualified as a Chartered Accountant
and is an alumnus of the Stanford Business School.
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
2,727,272 options over ordinary shares
6,000,000 performance rights
finance,
Name:
Title:
Qualifications:
Experience and expertise:
Jim Moore
Non-Executive Director
Bachelor of Engineering from Royal Melbourne Institute of Technology
Mr Moore is an experienced and qualified mining engineer and provides significant
expertise in the development of the Yerbas Buenas magnetite mining and processing
operation. Mr Moore has undertaken multiple roles as a mine manager, superintendent
and mining engineer for companies such as BHP Billiton, Pilbara Minerals, Oceana
Gold, Element25 and Grange Resources and he brings desirable engineering and
research capability to the Board at a critical time.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Nil
Interests in shares:
Nil
Interests in options:
Nil
Interests in rights:
5
Freehill Mining Limited
Directors' report
30 June 2021
Name:
Title:
Qualifications:
Experience and expertise:
Peter Hinner
Chief Executive Officer (resigned 18 February 2021)
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:
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 was company secretary until he was replaced by Tom Sapountis on 18 February 2021. Refer above for details
of his qualifications and experience.
Tom is a qualified corporate lawyer who has a solid track record working with numerous public companies and providing
governance and regulatory advice.
Meetings of directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2021, and
the number of meetings attended by each director were:
Raymond Charles Mangion
Paul Davies
Peter Hinner
Jim Moore
Full Board
Attended
Held
4
4
2
1
4
4
2
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.
6
Freehill Mining Limited
Directors' report
30 June 2021
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.
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.
7
Freehill Mining Limited
Directors' report
30 June 2021
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.
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 2021, the consolidated entity did not engage remuneration consultants.
Voting and comments made at the company's 28 January 2021 Annual General Meeting ('AGM')
At the 28 January 2021 AGM, 92.63% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2021. 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
2021
Salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
Raymond Charles Mangion
Jim Moore ***
45,000
15,000
Executive Directors:
Paul Davies *
Peter Hinner **
99,000
313,654
472,654
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45,000
15,000
38,588
74,087
112,675
137,588
387,741
585,329
*
**
During the year, Paul Davies received 6,000,000 performance rights. Paul Davies was CFO until 18 February when he
became CEO.
During the year, Peter Hinner received 1,347,028 fully paid ordinary shares valued at $74,086. During the year Peter
received $180,000 as part of an agreed settlement. Peter Hinner resigned on 18 February 2021.
*** Appointed on 18 February 2021.
8
Freehill Mining Limited
Directors' report
30 June 2021
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Restated 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.
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
Jim Moore
Executive Directors:
Paul Davies
Peter Hinner
Fixed remuneration
At risk - STI
2021
Restated
2020
2021
Restated
2020
At risk - LTI
2021
Restated
2020
100%
-
-
100%
100%
100%
100%
-
67%
80%
38%
68%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
33%
20%
62%
32%
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:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Paul Davies
Executive Director and Chief Financial Officer
1 January 2017
Remuneration is set at $99,000 per annum plus GST
Raymond Charles Mangion
Chairman
1 January 2017
Remuneration is set at $45,000 per annum plus GST.
Jim Moore
Non-Executive Director
18 February 2021
Remuneration is set at $45,000 per annum plus GST.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
9
Freehill Mining Limited
Directors' report
30 June 2021
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the year
ended 30 June 2021.
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 2021 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
2021
year
Restated
2020
year
2021
year
Restated
2020
- 10,000,000
- 10,000,000
Additional information
The earnings of the consolidated entity for the five years to 30 June 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Revenue
Loss after income tax
2,825
(2,244,747)
13,471
(2,831,376)
370
(2,508,162)
61
(2,965,089)
172
(1,522,205)
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)
3.40
(0.14)
(0.14)
5.40
(0.25)
(0.25)
1.40
(0.43)
(0.43)
6.00
(0.84)
(0.84)
10.00
(0.51)
(0.51)
2021
2020
2019
2018
2017
10
Freehill Mining Limited
Directors' report
30 June 2021
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:
Ordinary shares
Raymond Charles Mangion
Paul Davies
Peter Hinner *
Balance at Addition or As part of
the start of held at time of remuneration
resignation
the year
Lapsed
Balance at
the end of
the year
35,407,449
4,706,787
14,201,205
54,315,441
-
-
-
-
-
-
2,347,028
2,347,028
- 35,407,449
4,706,787
-
-
(16,548,233)
(16,548,233) 40,114,236
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
Options over ordinary shares
Paul Davies
Ray Magnion
10,000,000
2,727,272
12,727,272
-
-
-
-
-
-
Balance at
the end of
the year
- 10,000,000
-
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
Paul Davies *
Balance at
the start of
the year
Granted
Converted
to issued
capital
Expired/
forfeited/
other
Balance at
the end of
the year
1,000,000
-
1,000,000
-
6,000,000
6,000,000
(1,000,000)
-
(1,000,000)
-
-
-
-
6,000,000
6,000,000
*
During the year Paul Davies was issued 6,000,000 performance rights. The performance rights will vest upon
completion of a 28 day period where the volume weighted average share price exceeds 7.5 cents. These performance
rights will expire on 31 December 2021.
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 2021.
This concludes the remuneration report, which has been audited.
11
Freehill Mining Limited
Directors' report
30 June 2021
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
Number
price
under option
$0.0250 80,228,205
$0.1000 30,000,000
110,228,205
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 issued on the exercise of options
The following ordinary shares of Freehill Mining Limited were issued during the year ended 30 June 2021 and up to the date
of this report on the exercise of options granted:
Date options granted
13 November 2019
Exercise
price
Number of
shares issued
$0.0250
85,014,765
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.
Non-audit services
The directors are of the opinion that the services as disclosed in note 20 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.
●
12
Freehill Mining Limited
Directors' report
30 June 2021
Officers of the company who are former partners of Connect National Audit
There are no officers of the company who are former partners of Connect National Audit.
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
Connect Audit was appointed 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
28 September 2021
13
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead auditor for the audit of Freehill Mining Limited for the year ended 30 June 2021, I declare
that, to the best of my knowledge and belief, there have been:
(a)
(b)
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Freehill Mining Limited.
George Georgiou FCA
Managing Partner
Connect National Audit Pty Ltd
ASIC Authorised Audit Company No. 521888
Melbourne, Victoria
Date: 28 September 2021
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 8, 350 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: HQ@Robina, Suite 41, Level 4,
58 Riverwalk Avenue, Robina QLD 4226
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
Freehill Mining Limited
Contents
30 June 2021
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
44
45
50
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 28 September 2021. 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 2021
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
Other expenses
Finance costs
Loss before income tax expense
Consolidated
Restated
Note
2021
$
2020
$
147
2,678
25
13,446
(891,752)
(556,461)
(564,465)
(2,697)
(62,175)
(169,749)
(840,170)
(745,204)
(724,996)
(429)
(114,974)
(419,074)
(2,244,474)
(2,831,376)
Income tax expense
6
-
-
Loss after income tax expense for the year attributable to the owners of
Freehill Mining Limited
(2,244,474)
(2,831,376)
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
413,909
(3,091,938)
413,909
(3,091,938)
Total comprehensive loss for the year attributable to the owners of Freehill
Mining Limited
(1,830,565)
(5,923,314)
Basic earnings per share
Diluted earnings per share
Refer to note 4 for detailed information on Restatement of comparatives.
Cents
Cents
28
28
(0.14)
(0.14)
(0.25)
(0.25)
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 2021
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
Restated
Note
2021
$
2020
$
7
8
9
10
11
12
13
14
1,535,609
104,795
-
1,640,404
917,111
97,244
2,487
1,016,842
603,252
7,404
19,687,399
20,298,055
586,032
9,887
13,335,980
13,931,899
21,938,459
14,948,741
595,522
64,000
12,161
671,683
475,027
72,303
10,216
557,546
-
70,000
70,000
432,839
70,000
502,839
741,683
1,060,385
21,196,776
13,888,356
15
16
36,263,862
(124,754)
(14,942,332)
27,096,965
(510,751)
(12,697,858)
21,196,776
13,888,356
Refer to note 4 for detailed information on Restatement of comparatives.
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 2021
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
-
-
-
-
(3,091,938)
(2,831,376)
-
(2,831,376)
(3,091,938)
(3,091,938)
(2,831,376)
(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 15)
Transfers upon conversion of notes
6,973,471
16,874
-
(16,874)
-
-
6,973,471
-
Balance at 30 June 2020
27,096,965
(510,751)
(12,697,858) 13,888,356
Refer to note 4 for detailed information on Restatement of comparatives.
Consolidated
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2020
27,096,965
(510,751)
(12,697,858) 13,888,356
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 15)
Shared based payments
Transfer
-
-
-
-
413,909
(2,244,474)
-
(2,244,474)
413,909
413,909
(2,244,474)
(1,830,565)
9,100,397
-
66,500
-
38,588
(66,500)
-
-
-
9,100,397
38,588
-
Balance at 30 June 2021
36,263,862
(124,754)
(14,942,332) 21,196,776
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 2021
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Interest received
Other revenue
Interest and other finance costs paid
Consolidated
Restated
Note
2021
$
2020
$
(1,726,519)
25
147
(179,428)
(2,326,708)
25
69
(310,504)
Net cash used in operating activities
27
(1,905,775)
(2,637,118)
Cash flows from investing activities
Payments for exploration and evaluation
Pre-productions mining receipts offset against the carrying value of the assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Share issue transaction costs
Repayment of borrowings
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
(1,045,601)
258,256
(1,488,791)
-
(787,345)
(1,488,791)
2,725,369
942,400
(180,237)
(152,364)
4,049,998
2,182,924
(605,446)
(646,936)
3,335,168
4,980,540
642,048
917,111
(23,550)
854,631
62,480
-
Cash and cash equivalents at the end of the financial year
7
1,535,609
917,111
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 2021
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 2021.
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 $2,244,474 and had operating cash
outflows of $1,905,775.
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:
●
At the date of signing the company had 80,228,205 options over ordinary shares with an exercise price of $0.025, that
expire on 12 November 2021, and the current share price is $0.028. If all options were exercised the company would
raise $2,005,705 before costs;
The board expects production to begin on the Yerbas Beunas tenements during the first quarter of 2022. It is expected
the consolidated entity's Chilean operations will provide positive net cash flows from this stage; and
The company has a proven track record of being able to raise funding via both debt and equity as needed.
●
●
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.
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 24.
20
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
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 2021 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.
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.
21
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
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.
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.
22
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
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.
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.
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.
23
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
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.
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.
24
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 1. Significant accounting policies (continued)
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.
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 2021. 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 2021, because their realisation is not yet considered probable.
25
Freehill Mining Limited
Notes to the financial statements
30 June 2021
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
exploration program on all Chilean projects. Whilst there have been delays this has not impacted on the likelihood that the
project will ultimately be feasible, and therefore has not impacted on the impairment assessments in relation to exploration
assets.
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. Restatement of comparatives
Correction of error
In the prior year, an amount of $490,652 relating to restatement of foreign exchange movements on the intercompany loan
was not eliminated on consolidation.
26
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 4. Restatement of comparatives (continued)
Statement of profit or loss and other comprehensive income
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
Consolidated
Restated
Restated
2020
$
$
2020
$
Reported
Adjustment Restated
25
69
-
13,377
25
13,446
(840,170)
(745,204)
(724,996)
(429)
(477,185)
(114,974)
(419,074)
-
-
-
-
477,185
-
-
(840,170)
(745,204)
(724,996)
(429)
-
(114,974)
(419,074)
Loss before income tax expense
(3,321,938)
490,562
(2,831,376)
Income tax expense
-
-
-
Loss after income tax expense for the year attributable to the owners of
Freehill Mining Limited
(3,321,938)
490,562
(2,831,376)
Other comprehensive loss
Foreign currency translation
Other comprehensive loss for the year, net of tax
-
-
(3,091,938)
(3,091,938)
(3,091,938)
(3,091,938)
Total comprehensive loss for the year attributable to the owners of
Freehill Mining Limited
(3,321,938)
(2,601,376)
(5,923,314)
Basic earnings per share
Diluted earnings per share
Cents
Cents
Cents
Reported
Adjustment Restated
(0.14)
(0.14)
(0.11)
(0.11)
(0.25)
(0.25)
Statement of financial position at the beginning of the earliest comparative period
When there is a restatement of comparatives, it is mandatory to provide a third statement of financial position at the beginning
of the earliest comparative period, being 1 July 2019. However, as there were no adjustments made as at 1 July 2019, the
consolidated entity has elected not to show the 1 July 2019 statement of financial position.
27
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 4. Restatement of comparatives (continued)
Statement of financial position at the end of the earliest comparative period
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
Note 5. Operating segments
Consolidated
Restated
Restated
2020
$
$
2020
$
Reported
Adjustment Restated
917,111
97,244
2,487
1,016,842
586,032
9,887
13,335,980
13,931,899
-
-
-
-
917,111
97,244
2,487
1,016,842
586,032
-
9,887
-
- 13,335,980
- 13,931,899
14,948,741
- 14,948,741
475,027
72,303
10,216
557,546
432,839
70,000
502,839
1,060,385
-
-
-
-
-
-
-
-
475,027
72,303
10,216
557,546
432,839
70,000
502,839
1,060,385
13,888,356
- 13,888,356
27,096,965
(20,189)
(13,188,420)
(490,562)
490,562
- 27,096,965
(510,751)
(12,697,858)
13,888,356
- 13,888,356
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.
28
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 6. 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 26% (2020: 27.5%)
Non-deductible expenses
Temporary differences and losses not bought to account
Income tax expense
Australian tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 26%
Consolidated
Restated
2021
$
2020
$
(2,244,474)
(2,831,376)
(583,563)
(778,628)
56,117
527,446
298,825
479,803
-
-
Consolidated
Restated
2021
$
2020
$
8,730,050
7,381,699
2,269,813
1,919,242
In addition to the above Australian tax losses the consolidated entity has unused losses of 2,343,042,942 (AUD 4,240,907)
Chilean pesos which amount to an unrecognised benefit of 632,621,594 Chilean pesos (AUD 1,145,045). 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 7. Cash and cash equivalents
Cash on hand
Cash at bank
Note 8. Trade and other receivables
Other receivables
Indirect taxes receivable
29
Consolidated
Restated
2021
$
2020
$
1,820
1,533,789
1,780
915,331
1,535,609
917,111
Consolidated
Restated
2021
$
2020
$
40,903
63,892
15,542
81,702
104,795
97,244
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 9. Receivables
Indirect taxes receivable
Note 10. Exploration and evaluation asset
Exploration and evaluation - at cost
Consolidated
Restated
2021
$
2020
$
603,252
586,032
Consolidated
Restated
2021
$
2020
$
19,687,399
13,335,980
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Additions
Exchange differences
Balance at 30 June 2020
Additions
Acquisition of El Dorada tenement via issue of shares
Exchange differences
Pre-productions mining receipts offset against the carrying value of the assets
Balance at 30 June 2021
Exploration and evaluation assets are pledge as security of convertible notes issue (refer to note 14).
Note 11. Trade and other payables
Exploration &
evaluation
$
14,025,904
1,514,147
(2,204,071)
13,335,980
922,430
5,250,000
437,245
(258,256)
19,687,399
Consolidated
Restated
2021
$
2020
$
362,438
-
233,084
250,058
9,679
215,290
595,522
475,027
Trade payables
Interest payable
Other payables
Refer to note 18 for further information on financial instruments.
30
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 12. Borrowings
Debt with conversion option
Short term loans
Consolidated
Restated
2021
$
2020
$
64,000
-
-
72,303
64,000
72,303
Refer to note 18 for further information on financial instruments.
The short term loans were repayable at 12 months from the date of issue and interest has been accrued at 15% per annum.
This loan was repaid in full during the current year.
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.
Note 13. Employee benefits
Employee benefits
Note 14. Borrowings
Debt with conversion option
Refer to note 18 for further information on financial instruments.
Consolidated
Restated
2021
$
2020
$
12,161
10,216
Consolidated
Restated
2021
$
2020
$
-
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:
Consolidated
Restated
2021
$
2020
$
64,000
432,839
Debt with conversion option
31
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 14. Borrowings (continued)
Assets pledged as security
The carrying amounts of assets pledged as security for current and non-current borrowings are:
Exploration and evaluation assets
Note 15. Issued capital
Consolidated
Restated
2021
$
2020
$
19,687,399
13,335,980
Consolidated
2021
Shares
Restated
2020
Shares
2021
$
Restated
2020
$
Ordinary shares - fully paid
1,653,199,517 1,453,768,548
36,263,862
27,096,965
Movements in ordinary share capital
32
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 15. Issued capital (continued)
Details
Date
Shares
Issue price
$
Balance
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
1 July 2019
816,273,950
20,106,620
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
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
7,501,222
1,475,000
$0.0245
$0.0300
183,912
16,500
5,952,335
14,000,000
$0.0301
$0.0500
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
33
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 15. Issued capital (continued)
Details
Date
Shares
Issue price
$
Shares issued on exercise of options
Shares issued to settle borrowings
Shares issued to settle borrowings
Shares issued to KMP in relation to performance
shares
Shares issued
Shares issued to settle borrowings
Shares issued on exercise of options
Shares issued on exercise of options
Shares issued on exercise of options
Shares issued to settle borrowings
Shares issued for El Dorado acquisition
Shares issued on exercise of options
Shares issued to settle borrowings
Shares issued on exercise of options
Shares issued to settle borrowings
Shares issued on exercise of options
Shares issued on exercise of options
Shares issued to KMP
Shares issued on exercise of options
Shares issued to settle borrowings
Shares issued on exercise of options
Shares issued on exercise of options
Less cost of capital raising
July 2021
17 July 2021
31 July 2021
31 July 2021
3 August 2021
8 August 2021
August 2021
September 2021
October 2021
21 October 2021
23 October 2021
November 2021
6 November 2021
December 2021
30 December 2021
January 2021
February 2021
4 February 2021
March 2021
15 April 2021
May 2021
June 2021
2,555,903
1,874,612
6,546,052
1,000,000
10,000,000
4,367,414
6,203,637
2,295,000
2,110,000
1,725,294
75,000,000
41,638,149
815,883
23,856,576
4,780,412
249,500
100,000
1,347,028
3,300,000
6,959,509
1,000,000
1,706,000
-
$0.0250
$0.0430
$0.0480
$0.0670
$0.0600
$0.0480
$0.0250
$0.0250
$0.0250
$0.0580
$0.0700
$0.0250
$0.0610
$0.0250
$0.0520
$0.0250
$0.0250
$0.0550
$0.0250
$0.0330
$0.0250
$0.0250
$0.0000
63,899
80,000
312,000
66,500
600,000
210,000
155,091
57,375
52,750
100,000
5,250,000
1,040,954
50,000
596,414
246,400
6,237
2,500
74,086
82,500
232,778
25,000
42,650
(180,237)
Balance
30 June 2021
1,653,199,517
36,263,862
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.
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.
34
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 15. Issued capital (continued)
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 Restated 2020 Annual Report.
Note 16. Reserves
Foreign currency reserve
Share-based payments reserve
Consolidated
Restated
2021
$
2020
$
(1,738,694)
1,613,940
(2,152,603)
1,641,852
(124,754)
(510,751)
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 2019
Foreign currency translation
Share based payments
Transfers to issued capital upon conversion of notes
Balance at 30 June 2020
Foreign currency translation
Share based payments
Transfer to issued capital from performance shares
Balance at 30 June 2021
Note 17. Dividends
Convertible Share based
notes
$
payments
$
Foreign
currency
$
16,874
-
-
(16,874)
66,500
-
1,575,352
-
939,335
(3,091,938)
-
-
-
-
-
-
-
1,641,852
-
38,588
(66,500)
(2,152,603)
413,909
-
-
1,613,940
(1,738,694)
There were no dividends paid, recommended or declared during the current or previous financial year.
35
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 18. 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
Restated
2021
$
2020
$
Liabilities
Restated
2021
$
2020
$
-
878,837
-
604,378
-
483,404
72,303
263,132
878,837
604,378
483,404
335,435
Consolidated - 2021
% change
profit before
tax
Effect on
equity
% change
profit before
tax
Effect on
equity
AUD strengthened
Effect on
AUD weakened
Effect on
Chilean pesos
20%
-
(79,086)
20%
-
79,086
Consolidated - Restated 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
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.
36
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 18. Financial instruments (continued)
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 - 2021
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
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
$
-
595,522
15.00%
64,000
659,522
-
-
-
-
-
-
-
-
-
595,522
64,000
659,522
Consolidated - Restated 2020
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Over 5 years
$
Remaining
contractual
maturities
$
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing - fixed rate
Short term loans
Debt with conversion option
Total non-derivatives
-
475,027
-
15.00%
10.00%
72,303
-
547,330
-
432,839
432,839
-
-
-
-
-
-
-
-
475,027
72,303
432,839
980,169
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.
37
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 19. Key management personnel disclosures
Directors
The following persons were directors of Freehill Mining Limited during the financial year:
Raymond Charles Mangion
Paul Davies
Jim Moore (appointed 18 February 2021)
Peter Hinner (resigned 18 February 2021)
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
Note 20. Remuneration of auditors
Consolidated
Restated
2021
$
2020
$
472,654
112,675
365,750
212,647
585,329
578,397
During the financial year the following fees were paid or payable for services provided by Connect National Audit, the auditor
of the company:
Audit services - Connect National Audit (Restated 2020: RSM Australia Partners)
Audit or review of the financial statements
Other services - Connect National Audit (Restated 2020: RSM Australia Partners)
Taxation services
Consolidated
Restated
2021
$
2020
$
45,000
61,000
-
9,500
45,000
70,500
Note 21. Contingent liabilities
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 have all been resolved during the current financial year.
The consolidated entity had no other contingent liabilities at 30 June 2021 and 30 June Restated 2020.
38
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 22. Commitments
The consolidated entity had no commitments at 30 June 2021 and 30 June Restated 2020.
Note 23. Related party transactions
Parent entity
Freehill Mining Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 25.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report included in the
directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Consolidated
Restated
2021
$
2020
$
Payment for other expenses:
Interest paid and accrued on short terms loans payable to Ray Mangion and his wife
-
95,449
Receivable from and payable to related parties
The following balances are outstanding at the reporting date in relation to transactions with related parties:
Consolidated
Restated
2021
$
2020
$
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
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
39
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 24. 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
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
Restated
2021
$
2020
$
(1,703,260)
(2,249,738)
(1,703,260)
(2,249,738)
Parent
Restated
2021
$
2020
$
1,380,098
998,547
23,521,223
16,614,257
188,279
284,198
188,279
717,037
49,519,807
1,613,940
1,007,202
(28,808,005)
40,352,910
1,641,852
1,007,202
(27,104,744)
23,332,944
15,897,220
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 2021 and 30 June Restated
2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June Restated 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June Restated
2020.
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.
40
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 25. 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
El Dorado Mineria SpA
El Dorado Hold Co Pty Ltd
Principal place of business /
Country of incorporation
Australia
Chile
Chile
Chile
Australia
Ownership interest
2021
%
100.00%
100.00%
100.00%
100.00%
100.00%
Restated
2020
%
100.00%
100.00%
100.00%
-
-
Note 26. Events after the reporting period
On 9 July 2021, the company issued 2,145,245 fully paid ordinary shares valued at $0.0300 per share, retiring debt valued
at $64,465.
On 30 July 2021, the company issued 150,000 fully paid ordinary shares valued at $.0.25 per share, on the exercise of
options raising $3,750.
0n 6 September 2021, the company issued 2,030,377 fully paid ordinary shares valued at $0.0248 per share, retiring debt
valued at $50,437.
No other matter or circumstance has arisen since 30 June 2021 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 27. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2021
$
Restated
2020
$
Loss after income tax expense for the year
(2,244,474)
(2,831,376)
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:
Increase in trade and other receivables
Decrease in other operating assets
Increase/(decrease) in trade and other payables
Increase in employee benefits
Net cash used in operating activities
2,697
38,588
-
-
74,087
249
82,647
(13,377)
316,173
1,502,291
(24,771)
2,487
243,666
1,945
(63,046)
38,839
(1,679,734)
10,216
(1,905,775)
(2,637,118)
41
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 28. Earnings per share
Consolidated
Restated
2021
$
2020
$
Loss after income tax attributable to the owners of Freehill Mining Limited
(2,244,474)
(2,831,376)
Weighted average number of ordinary shares used in calculating basic earnings per share
1,583,403,125 1,140,465,178
Weighted average number of ordinary shares used in calculating diluted earnings per share 1,583,403,125 1,140,465,178
Number
Number
Basic earnings per share
Diluted earnings per share
Note 29. Share-based payments
Cents
Cents
(0.14)
(0.14)
(0.25)
(0.25)
During the prior 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
Weighted
average
exercise price
Number of
options
Restated
Weighted
average
exercise price
Restated
2021
2021
2020
2020
Outstanding at the beginning of the financial year
Granted
Exercised
195,462,970
-
(85,014,765)
-
$0.0359
$0.0000 206,481,086
(11,018,116)
$0.0250
$0.0000
$0.0359
$0.0250
Outstanding at the end of the financial year
110,448,205
$0.0450 195,462,970
$0.0359
Exercisable at the end of the financial year
110,448,205
$0.0330 195,462,970
$0.0359
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
13/11/2019
13/11/2019
12/11/2021
12/11/2021
$0.0250 165,452,970
$0.1000 30,000,000
195,452,970
Exercised
-
-
-
(85,014,765)
-
(85,014,765)
Expired/
forfeited/
other
Balance at
the end of
the year
- 80,438,205
- 30,000,000
- 110,438,205
42
Freehill Mining Limited
Notes to the financial statements
30 June 2021
Note 29. Share-based payments (continued)
Restated 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
(11,028,116)
-
(11,028,116)
- 165,452,970
- 30,000,000
- 195,452,970
The weighted average remaining contractual life of options outstanding at the end of the financial year was 0.36 years (1.36
years).
For the options granted during the prior 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
During the year Paul Davies was issued 6,000,000 performance rights. The performance rights will vest upon completion of
a 28 day period where the volume weighted average share price exceeds 7.5 cents. These performance rights will expire on
31 December 2021. An expense of $38,588 has been recognised in relation to these performance rights.
Note 30. Changes in liabilities arising from financing activities
Consolidated
Balance at 1 July 2019
Net cash from financing activities
Conversion to equity
Balance at 30 June 2020
Net cash from financing activities
Conversion to equity
Balance at 30 June 2021
Borrowings
$
Total
$
2,068,899
2,126,601
(3,690,358)
2,068,899
2,126,601
(3,690,358)
505,142
790,036
(1,231,178)
505,142
790,036
(1,231,178)
64,000
64,000
43
Freehill Mining Limited
Directors' declaration
30 June 2021
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 2021 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
28 September 2021
44
Independent Auditor’s Report
To the Members of Freehill Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the accompanying financial report of Freehill Mining Limited (the
“consolidated entity”), which comprises the statement of financial position as at 30 June 2021,
the statement of profit or loss and other comprehensive income, the statement of cash flows
and the statement of changes in equity for the financial year ended on that date, notes
comprising a summary of significant accounting policies and other explanatory information,
and the directors’ declaration of the consolidated entity as set out on page 43.
In our opinion the financial report of Freehill Mining Limited is in accordance with the
Corporations Act 2001, including:
giving a true and fair view of the entity’s financial position as at 30 June 2021 and
(a)
of its performance for the financial year ended on that date; and
(b)
2001.
complying with Australian Accounting Standards and the Corporations Regulations
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 consolidated entity, would be in the same terms if given
to the directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the key audit
matter
of Exploration
Capitalisation
Evaluation Assets
We focus on the capitalisation of exploration
and evaluation asset as this represents a
significant asset of the consolidated entity
and that the capitalisation of this amount is
and
We carried out
in
the
accordance with the guidance set out in
AASB 6 Exploration for and Evaluation of
Mineral Resources:
following work
Connect National Audit Pty Ltd is an Authorised Audit Company
Head Office: Level 8, 350 Collins St, Melbourne VIC 3000
ABN 43 605 713 040
Gold Coast Office: HQ@Robina, Suite 41, Level 4,
58 Riverwalk Avenue, Robina QLD 4226
Liability limited by a scheme approved under Professional Standards Legislation
w: www.connectaudit.com.au
significantly affected by management’s
judgement
The consolidated entity has
incurred
significant exploration and evaluation
expenditures. The accounting treatment of
these expenditures (whether as capital or
expense) can have a significant impact on
the financial report. This is particularly
relevant as this consolidated entity is in an
exploration stage with no production
activities. As such it is necessary to assess
whether the facts and circumstances existed
to suggest that these expenditures were
properly capitalised
in accordance with
accounting standard.
policy
reviewed
the consolidated entity’s
We
accounting
specifying which
expenditures are recognised as exploration
and evaluation assets and its consistent
application of the policy. We tested a sample
of capitalised expenditures to ensure that
these expenditures are associated with
finding specific mineral resources
We obtained evidence that the rights to
tenure of the area of interest are current and
that the consolidated entity has valid rights
to explore in the areas represented by the
capitalised exploration and evaluation
expenditures by
reviewing supporting
documents of a sample of the consolidated
entity’s tenement holdings
We evaluated whether the exploration and
evaluation expenditures are expected to be
recouped,
successful
development and exploitation or through
sale
through
either
exploration
We enquired with management and
evaluated whether
and
evaluation activities in the area of interest
have not at the end of the reporting period
reached a stage which permits a reasonable
assessment of the existence or otherwise of
economically recoverable reserves, and
active and significant operations in, or in
relation
interest are
the area of
continuing.
to,
those charged with
We enquired with
governance whether they monitor that these
expenses are capitalised as per AASB6
We have obtained sufficient appropriate
audit evidence with
the
capitalised amount as disclosed in the note
to financial statements.
regards
to
Assessment of Carrying Value of
Exploration and Evaluation Assets
We focus on the assessment of the carrying
value of the exploration and evaluation asset
as this represents a significant asset of the
consolidated entity. We need to assess
whether the facts and circumstances existed
to suggest that the carrying value of this
We also considered the appropriateness of
the related disclosure in Notes 1, 2 and 10 to
the financial statements.
We ensured the consolidated entity has
tested at the level of area of interest where
the following indicators are present: (a) the
period for which the entity has the right to
explore in the specific area has expired
during the period or will expire in the near
judgement
asset may exceed its recoverable amount.
Significant
in
considering if there was impairment indicator
and estimating the value of the asset and the
potential material impact on the financial
report.
involved
is
their
these against
As part of their annual impairment review
its
management prepared a list of all
exploration and evaluation assets and
reviewed
list of
impairment indicators. Where impairment
indicators existed, management performed
an impairment review in accordance with
AASB 6 Impairment of Exploration and
Evaluation Assets. No Asset was written off
during this year in respect of areas of
exploration in the exploration and evaluation
assets.
in
future, and is not expected to be renewed;
(b) substantive expenditure on
further
exploration for and evaluation of mineral
resources in the specific area is neither
budgeted nor planned (c) exploration for and
evaluation of mineral resources
the
specific area have not led to the discovery of
commercially viable quantities of mineral
resources and the entity has decided to
discontinue such activities in the specific
area; (d) sufficient data exist to indicate that,
although a development in the specific area
is likely to proceed, the carrying amount of
the exploration and evaluation asset is
unlikely
from
successful development or by sale.
recovered
to be
full
in
We enquired with management and
reviewed budgets to ensure that substantive
expenditure on further exploration for and
evaluation of the mineral resources in the
consolidated entity’s areas of interest were
planned.
We enquired with management, reviewed
announcements made and
reviewed
minutes of the directors’ meetings to ensure
that the consolidated entity had not decided
to discontinue activities in any of its areas of
interest. We noted the consolidated entity
had decided to discontinue activities in
respect of a number of areas of exploration.
We evaluated management’s assessment of
impairment
the
conclusion reached.
indicators
including
We also considered the appropriateness of
the related disclosure in Notes 1, 2 and 11 to
the financial statements.
Emphasis of Matter – Material uncertainty related to 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 $2,244,474 and had operating cash
outflows of $1,905,775.
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 fr om 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:
At the date of signing the company had 80,228,205 options over ordinary shares
•
with an exercise price of $0.25 and the current share price is $0.028. If all options
were exercised the company would raise $2,005,700 before costs;
•
The board expects production to begin on the Yerbas Beunas tenements during the
first quarter of 2022. It is expected the consolidated entity's Chilean operations will provide
positive net cash flows from this stage; and
•
and equity as needed.
The company has a proven track record of being able to raise funding via both debt
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.
Our opinion is unmodified in this regard.
Responsibilities of the directors for the financial report
The directors of the consolidated entity are responsible for the preparation of the financial
report that gives a true and fair view and have determined that the basis of preparation
described in Note 1 to the financial report is appropriate to meet the requirements of the
Corporations Act 2001 and is appropriate to meet the needs of the members. The directors’
responsibility also includes 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 the basis of preparation, the directors
also state, in accordance with Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial statements comply with International Financial Reporting
Standards.
In preparing the financial report, the directors are responsible for assessing the consolidated
entity’s ability 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: http://www.auasb.gov.au/Home.aspx.
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 9 of the directors’ report for
the financial year ended 30 June 2021.
In our opinion the Remuneration Report of Freehill Mining Limited for the financial year ended
30 June 2021, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the consolidated entity 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.
George Georgiou FCA
Managing Partner
Connect National Audit Pty Ltd
ASIC Authorised Audit Company No.: 521888
Melbourne, Victoria
Date: 28 September 2021
Freehill Mining Limited
Shareholder information
30 June 2021
The shareholder information set out below was applicable as at 13 September 2021
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
788
82
205
629
794
0.01
0.01
0.12
1.70
98.16
2,498
100.00
-
-
1
23
67
91
-
-
0.01
1.48
98.51
100.00
Holding less than a marketable parcel
1,186
0.22
170
0.68
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
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)
MR LEO ILIAS RADIOTIS (L A RADIOTIS FAMILY A/C)
PINNACLE EQUITIES PTY LTD
GEORGE THEONAS
HRM PARTNERS PTY LTD (L&P SUPERFUND A/C)
PAW SUPER PTY LTD (PAW SUPER FUND A/C)
RMVIC PTY LTD (RMVIC S/F A/C)
NAFRA PTY LTD
MR RINO DI GIANTOMASSO
MR PETER BROUWER & MS TANIA BROUWER (P&T BROUWER SMSF A/C)
SIGNAL SUPERANNUATION PTY LTD (SIGNAL SUPER FUND A/C)
WATO HOLDINGS PTY LTD (GRILLO DISCRETIONARY A/C)
M D ZIMBLER PTY LTD (MICHAEL ZIMBLER SMSF A/C)
MR MATTHEW KENDON STRAHLEY & MRS EMILY ANNE STRAHLEY (MK & EA
STRAHLEY FAMILY A/C)
MR JOHN MAVRIAS (MAVRIAS FAMILY A/C)
Ordinary shares
% of total
shares
issued
Number held
216,837,947
93,570,265
86,448,485
78,798,067
44,814,063
35,407,449
29,718,784
28,950,000
27,799,270
23,130,121
20,900,299
20,880,972
19,933,333
19,000,000
16,031,520
15,323,130
13,349,650
12,459,090
11,958,636
10,817,189
13.08
5.65
5.22
4.75
2.70
2.14
1.79
1.75
1.68
1.40
1.26
1.26
1.20
1.15
0.97
0.92
0.81
0.75
0.72
0.65
826,128,270
49.85
50
Freehill Mining Limited
Shareholder information
30 June 2021
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)
MR MATTHEW KENDON STRAHLEY & MRS EMILY ANNE STRAHLEY MK & EA
(STRAHLEY FAMILY A/C)
GEORGE THEONAS
SEMZJ INVESTMENTS PTY LTD (HALLELUYAH INVESTMENT A/C)
R & A MANGION PTY LTD (STEGMAN SMSF A/C)
MR JIA-JIAN CHEN & MRS ZHANG PING
MR GEORGE EDWARD ROBB
M D ZIMBLER PTY LTD (MICHAEL ZIMBLER SMSF A/C)
DR ANTHONY JOHN CERQUI
RMVIC PTY LTD (RMVIC S/F A/C)
J & C DUDDY SUPER FUND PTY LTD(J&C DUDDY S/F A/C)
SIERRA WINDS PTY LTD
MR HAYDEN JAMES MOFFATT
J & C DUDDY S/F PTY LTD
MRS TANIA LESLEY WATT & MR RODNEY JOHN WATT
MR ANTHONY VIGLIETTI
MR GRAHAM WINSTONE & MS JANETTE JONES (THE GRAHAM WINSTONE S/F A/C)
MR DANIEL BURMAS & MRS LUCY BURMAS
8,000,000
8,000,000
7,954,545
5,781,818
5,000,000
3,000,000
2,727,272
2,095,956
2,000,000
1,818,181
1,793,636
1,734,715
1,533,000
1,500,000
1,393,866
1,363,636
1,217,119
1,177,618
1,138,000
1,136,364
9.99
9.99
9.93
7.22
6.24
3.75
3.41
2.62
2.50
2.27
2.24
2.17
1.91
1.87
1.74
1.70
1.52
1.47
1.42
1.42
60,365,726
75.38
Unquoted equity securities
There are 30,000,000 unlisted options over shares and 6,000,000 performance rights currently on issue.
Substantial holders
Substantial holders in the company are set out below:
SAMUEL DUDDY
DG FREEHOLD PTY LTD (DG FREEHOLD A/C)
SAMUEL WILLIAM DUDDY
CAM NOMINEES PTY LTD (CAM NOMINEES SUPER FUND A/C)
MR SIMON WILLIAM TRITTON (INVESTMENT A/C)
MR MATTHEW KENDON STRAHLEY & MRS EMILY ANNE STRAHLEY MK & EA
(STRAHLEY FAMILY A/C)
GEORGE THEONAS
51
Ordinary shares
% of total
shares
issued
Number held
216,837,947
93,570,265
13.08
5.65
Options over ordinary
shares
% of total
options
issued
Number held
8,000,000
8,000,000
7,954,545
5,781,818
5,000,000
9.99
9.99
9.93
7.22
6.24
Freehill Mining Limited
Shareholder information
30 June 2021
Voting rights
The voting rights attached to ordinary shares are set out below:
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.
Options
Option holders do not have voting rights.
Tenements
Description
YERBAS BUENAS 1-16
ARENAS III 1 to 15
ARENAS IV 1 to 10
ARENAS VI 1 to 20
ARENAS X 1 to 18
ARENAS XI 1 to 20
EL DORADO I to 10
EL DORADO II 1 to 10
EL DORADO III 1 to 10
EL DORADO IV 1 to 10
EL DORADO V 1 to 10
EL DORADO VI 1 to 10
EL DORADO VII 1 to 7
EL DORADO VIII 1 to 10
Tenement number
04102-2723-1
04102-2714-2
04102-2715-0
04102-2755-K
04102-2937-4
04102-3522-6
04102-3669-9
04102-3670-2
04102-3671-0
04102-3672-9
04102-3673-7
04102-3674-5
04102-3675-3
04102-3676-1
Interest
owned %
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
52