ABN 91 124 752 745
ANNUAL REPORT 2021
Drilling at Yandan Gold Project
CORPORATE DIRECTORY
GBM Resources Limited (GBM or the Company)
ASX Code
GBZ and GBZOB (Listed Options)
Directors
Peter Mullens - Executive Chairman
Peter Rohner - Managing Director and CEO
Sunny Loh - Non Executive Deputy Chairman
Brent Cook - Non Executive Director
Peter Thompson - Non Executive Director
Company Secretary
Kevin Hart
Dan Travers
Registered Office
Suite 8, 7 The Esplanade
Mt Pleasant WA 6153
Australia
Telephone: +61 8 9316 9100
Facsimile: +61 8 9 315 5475
Victoria Exploration Office
Unit 11, 21 High Street
Harcourt VIC 3453
Australia
Telephone: +61 3 5470 5033
Postal Address
PO Box 658, Castlemaine VIC 3450
Principal Office
Level 5, Suite 502
303 Coronation Drive
Milton QLD 4064
Australia
Telephone: +61 493 239 674
Postal Address
PO Box 1295, Milton QLD 4064
Website
www.gbmr.com.au
Media
Fivemark Partners
L2/79 Hay Street
Subiaco WA 6008
Australia
Auditor
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Australia
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Australia
Stock Exchange
ASX Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia
Solicitors
Steinepreis Paganin – Lawyers and Consultants
Level 4, The Read Buildings
16 Milligan Street
Perth WA 6000
Australia
Corporate Governance
The Company is transitioning to the 4th Edition of the
ASX Corporate Governance Recommendations.
A summary statement reporting against the 4th
Edition of
the ASX Corporate Governance
Recommendations which has been approved by the
Board together with current policies and charters is
available
at
https://www.gbmr.com.au/about/corporate-
governance/
Company website
the
on
CONTENTS
Chairman’s Report
1.
Our Strategy and Values
2.
Highlights in 2021
3.
Project Location and Commodity Summary
4.
Review of Operations
5.
Tenement Schedule
6.
Annual Mineral Resource Statement
7.
Sustainable Development
8.
Directors’ Report
9.
Auditor’s Independence Declaration
10.
Consolidated Statement of Profit or Loss and Other Comprehensive income
11.
Consolidated Statement of Financial Position
12.
Consolidated Statement of Changes in Equity
13.
Consolidated Statement of Cash Flows
14.
15. Notes to the Consolidated Financial Statements
16. Directors’ Declaration
17.
18.
Independent Auditor’s Report
ASX Additional Information
Page
4 - 5
6 - 7
8 - 10
11
12 - 43
44
45 - 49
50 - 53
54 - 63
64
65
66
67
68
69 - 102
103
104 - 107
108 - 111
CHAIRMAN’S REPORT
Dear Fellow Shareholders,
It is my pleasure to present the GBM Resources Annual Report for 2021.
It has been a tumultuous year for the world at large. The COVID-19 pandemic has thrown challenges at
us all through this period and GBM has been no exception. However, I am proud to say that our people
have been equal to these challenges and have continued to deliver outstanding outcomes. I would
therefore like to begin by saying thank you to all our personnel and contractors – your hard work and
diligence through the trying circumstances of the past 12 months have enabled GBM to continue its
upwards march. Most importantly, you have achieved these outcomes in a safe and responsible manner
and with the highest regard for the environment and communities in which we operate. You have, and
thus GBM has, lived our values.
The past year has been an incredibly busy one for GBM. Our Drummond Basin consolidation strategy has
advanced rapidly. In the process, it has delivered an approximate 400% increase in GBM controlled gold
resources (to 1.5 Moz). Key drivers of this step-jump included the acquisitions of the high-grade Twin
Hills deposits from Minjar Gold (binding sale agreement announced in July 2021) and the Yandan deposits
from Aeris Resources (completed in January 2021).
Concurrent with this regional consolidation push has been acceleration of our own exploration activities
at Yandan and Mt Coolon. This includes a 2,500 m diamond drilling program being commenced in August
2021 at Glen Eva following encouraging drill results from the 2020 field program and recent 2D/3D IP
geophysical survey outcomes. The IP surveys confirmed the extension of the Glen Eva hydrothermal
system along strike for over 6 km to the outcropping mineralisation at the Eastern Siliceous prospect. The
current drilling program is testing key targets over this expanded strike extent.
In June 2021, we announced the exercise of our option to acquire the White Dam Gold-Copper Operations
in South Australia, with this transaction being completed in July 2021. GBM now holds a 100% interest in
White Dam including all associated infrastructure, leaching, process plant, mining leases (including all
resources) and other tenements. The White Dam Operations JV produced 1,394 ounces of gold and 95
tonnes of copper-in-concentrate over approximately 13 months to 30 July 2021. Building on recent
drilling results, we are now progressing a number of operating and production enhancements at White
Dam targeted at further optimising and expanding gold and copper production from the existing heap
leach operation while reviewing the recent drilling results and evaluation options for further mining
operations
A key business development initiative during the year was the joint venturing of our Malmsbury Project
in Victoria with leading Canadian gold explorer, Novo Resources Corporation (completed in May 2021).
We believe strongly in the potential of Malmsbury to hold substantial Fosterville-style gold deposits. The
combination with Novo is a powerful one in terms of leveraging their financial firepower and technical
knowledge base into this asset. We are excited about what this joint venture can deliver for both parties
over coming years.
GBM Resources Annual Report 2021
P a g e | 4
CHAIRMAN’S REPORT
Another significant portfolio initiative was the execution (in June 2021) of a binding Letter of Intent (LOI)
for the sale of our 100%-owned Mt Morgan Gold-Copper Project in Queensland. This binding LOI was
executed with Smartset Services Inc, a Canadian company listed on the TSX-V that possesses an
impressive team of explorationists. Following satisfaction of remaining conditions precedent (including
Smartset raising C$8 million in new equity), GBM is set to own a substantial shareholding in a well-funded
vehicle set to pursue aggressive evaluation of the Mt Morgan tenements. This transaction offers the twin
benefits of accelerating potential exploration value unlock and delivering greater value transparency with
respect to this asset.
I would also like to take this opportunity to say thank you to our loyal shareholder base. We have raised
approximately A$20.5 million in new equity over the 15 months to 30 September 2021 to further our
growth ambitions. These funding initiatives have been very well supported by both existing and newer
shareholders. To all our shareholders, thank you for your ongoing belief in the GBM assets and team.
Finally, I would like to say thank you to my fellow Board members for their diligence and work ethic over
the past year. It is greatly appreciated.
I look forward to further interacting with you at our upcoming 2021 Annual General Meeting.
Yours faithfully,
Peter Mullens
Executive Chairman
GBM Resources Limited
GBM Resources Annual Report 2021
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OUR STRATEGY AND VALUES
Assemble, Explore and Develop world class high grade gold resources to maximise value to our
Shareholders.
OUR VALUES
We are committted to achieving our vision in a safe and responsible manner with the highest
regard for the environment and communiities in which we operate. The Board endorses the
core values of GBM as summarised below.
SAFETY
We take care of our safety,
by
health
recognising,
and
managing risk to continue our
goal of zero harm.
and wellness
assessing
SUSTAINABILITY
We have the highest regard and
support for the environment
and local communities in which
we operate.
INTEGRITY
We behave ethically and respect
each other and the customs,
cultures and laws in which we
operate.
RESPONSIBILITY
We deliver on our commitments
and work together with all
stakeholders.
Photo: Managing Director and CEO ,Peter Rohner (L) and Executive
Chairman, Peter Mullens at the Brisbane Office.
GBM Resources Annual Report 2021
P a g e | 6
OUR STRATEGY AND VALUES
DELIVERING ON STRATEGY
Consolidation of the Drummond Basin so far has increased gold resources by 400%.
800% increase in GBM’s market value since the Company restructure in November 2019.
Acquisition of the high-grade Twin Hills resources and the potential bulk mineable Yandan resources
add significant upside in the consolidation of gold in the Drummond Basin with the aim to define 2-
3 million ounce gold resource.
Exploration activities have identified 13 Epithermal Gold systems in the Drummond Basin - such
systems are characterised by concentration of precious metals like gold in lode deposits potentially
delivering “Bonanza Gold Veins”.
Joint ventured (Fosterville style gold) Malmsbury Project in Victoria with global Canadian company
Novo Resources Corp.
Advancing high potential copper/gold tenements in NW Queensland mineral province.
100% ownership of the White Dam Gold and Copper Heap Leach Operation - cash generating.
Continuing to grow the shareholder base into European and North American Funds and further
developing the Australian capital markets.
SHARE PRICE PERFORMANCE SINCE NOVEMBER 2019
(https://www.marketindex.com.au/asx/gbz/advanced-chart).
GBM Resources Annual Report 2021
P a g e | 7
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2021
Drummond Basin Growth Strategy
During the year the Company acquired the Yandan and Twin Hills Gold Projects. Both acquisitions were
significant transactions in supporting GBM’S ‘processing halo ’strategy to build 2-3 million ounces in the
basin which will provide an entry into a mid-tier Australian gold company.
Yandan Gold Project
Acquisition of Yandan was completed on 13 January 2021 with GBM issuing to Aeris Resources Ltd
(Aeris) fully paid ordinary shares in the Company to the value of A$3 million, being 22,222,222
shares at $0.135.
As part of the settlement, Aeris also completed a A$1 million placement in the Company in which a
further 7,407,407 fully paid shares were issued at $0.135. Placement shares are voluntarily
escrowed for 12 months form the date of issue.
A JORC (2012) Mineral Resource estimate for the two deposits at Yandan, East and South Hill
together total 521,000 ounces of gold.
Twin Hills Gold Project
On 19 July 2021 the Company signed a Binding Tenement Sale Agreement (TSA) to acquire 100% of
the Twin Hills Gold Project (Twin Hills) from NQM Gold 2 Pty Ltd (NQM), a wholly owned subsidiary
of Minjar Gold Pty Ltd (Minjar). Settlement is scheduled on or before 30 November 2021.
Total consideration payable to NQM of ~A$2 million, along with assuming the financial assurance
in respect of the environmental authorities for the tenements (currently for an amount of ~A$1.48
million).
The Twin Hills deposits (Lone Sister and 309) have a JORC (2012) Mineral Resource Estimate of 6.9
million tonnes at 2.8 g/t Au for 633,000 ounces of contained gold on granted mining leases.
The Combined gold resources under GBM’s ownership in the Drummond Basin now total approximately
1.5 Moz across the Yandan, Mt Coolon and (to be settled) Twin Hills assets.
Formation of the Malmsbury JV with Novo completed
GBM entered a Farm-in Agreement with Novo Resources Corp. (exercised 25 September 2020) for a 50%
interest in the Malmsbury Project and the right to earn an additional 10% interest and initiate a Joint
Venture with GBM by incurring A$5 million in exploration expenditure over a four year period.
The final condition precendent (FIRB approval) was completed in May 2021 with Novo Resource Corp.
(Novo) and the formation of the JV with Novo is now finalised. The completion consideration was the issue
of 1,575,387 Novo shares to GBM which is valued approximately A$3.0 million.
GBM and Novo have finalized the 2021 exploration program with a budget of up to $1.8 million. Drilling
of targets generated from this years’ exploration activities is expected to start in November 2021
GBM Resources Annual Report 2021
P a g e | 8
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2021
Option Exercised on White Dam Gold Copper Project
GBM announced on 16 June 2021 that it has exercised its option to acquire 100% of the White Dam Gold-
Copper Project (White Dam) in South Australia from Round Oak Minerals Pty Ltd.
As of 30 July 2021, GBM has a 100% interest in White Dam Operations which includes associated
infrastructure, all leaching, gold processing plant, mining leases (including all JORC resources) and other
tenements. The exercise price was $500 k and replacement of $1.9 million environmental bond.
Previously GBM’s 50% production interest in the White Dam JV was earnt via the construction of a SART
plant which is designed to extract copper from the gold leach solution, improving overall gold recoveries
and lowering cyanidation costs. Since commissioning, the SART has operated above expectations with
lower costs due to less cyanide usage and improved gold recoveries from the existing heaps.
Mount Morgan Gold - Copper Project Vend - In
GBM advised on the 18 June 2021 that it has executed a binding tripartite Letter of Intent (LOI) for the
sale of its 100% owned Mt Morgan Gold-Copper Project in Queensland, Australia (Mt Morgan).
GBM will seek shareholder approval to proceed with the proposed transaction at this year’s Annual
General Meeting.
Overview
Binding LOI executed with Smartset Services Inc. (Canadian Company listed on TSXV: SMAR.P) for
sale of Mt Morgan Project.
Scrip consideration sees GBM expected to own 47.5% of Smartset (prior to concurrent C$8 million
equity raising by Smartset).
Disposal of a non-core asset into a focused vehicle delivers acceleration of exploration value unlock
while allowing GBM to maintain focus on its flagship Drummond Basin gold assets.
Listed equity provides enhanced future transacting flexibility for GBM and greater value
transparency for GBM shareholders with respect to their ownership interest in Mt Morgan.
Equity Raisings
The Company (on 15th September 2021) successfully raised gross proceeds of $7 million which supports
GBM acquiring the Twin Hills Gold Project and working capital requirements. The Company remains in a
strong funding position to advance its exploration and development strategies for 2021/2022.
Directors, Mr Peter Mullens and Mr Peter Rohner intend to, subject to shareholder approval, subscribe for
1,000,000 and 3,000,000 Shares respectively, raising a further $400,000, taking the total gross raising to
$7,400,000.
A total of 27,577,292 Shares were issued pursuant to the Company’s placement capacity under ASX Listing
Rule 7.1 and 42,422,708 Shares were issued pursuant to the Company’s placement capacity under ASX
Listing Rule 7.1A.
The participation by directors Mr Peter Mullens and Mr Peter Rohner, are on the same terms as the
placement completed on 15 September 2021 and is subject to shareholder approval at the Company’s
Annual General Meeting.
GBM Resources Annual Report 2021
P a g e | 9
SIGNIFICANT HIGHLIGHTS IN FINANCIAL YEAR 2021
COVID-19
GBM’s business continues to operate in full compliance with the COVID-19 advice from the Australian
Government and relevant health authorities. The situation is constantly evolving and GBM continues to
manage and access the risks and impacts and mitigate what it can control regarding its operations. The
Company believes it is sufficiently resourced to be able continue and complete the exploration programs
as planned in 2021 and into 2022.
Sustainable Development
GBM has been a signatory to the Mineral Council of Australia’s ‘Enduring Value: The Australian Minerals
Industry Framework for Sustainable Development’ since 2008 and reconfirmed this commitment again in
2016. Our excellent record continues of zero LTI’s and environmental incidents this year – this is the nineth
year that GBM has achieved zero harm. This is a credit to our people and an indication of the Company’s
stringent and high safety and environment standards.
GBM Resources Annual Report 2021
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PROJECT LOCATION AND COMMODITY SUMMARY
The Company holds a portfolio of tenements – located in world-class gold and copper regions
in Australia
Mayfield
100% wholly - owned
Iron Oxide Copper Gold
SOUTH AUSTRALIA
White Dam Gold Copper Project
100% wholly - owned
Gold- Copper Heap leach operation
Resource totalling 101,900 ounces of gold
VICTORIA
Malmsbury JV
50% owned
Orogenic Gold Mineralisation
Resource totalling 104,000 ounces of gold
QUEENSLAND
Drummond Basin
Mount Coolon Gold Project
100% wholly- owned
Epithermal breccia / quartz - Gold
Resources totalling 330,500 ounces of gold
Yandan Gold Project
100% wholly - owned
Epithermal disseminated bulk tonnage - Gold
Resources totalling 521,000 ounces of gold
Twin Hills Gold Project
100% wholly - owned (subject to completion)
Epithermal electrum / quartz - Gold
Resources totalling 633,000 ounces of gold
Mount Morgan
100% wholly - owned
Gold and Copper-Gold Porphyry, VMS
Brightlands
100% wholly - owned
Defined Cu-U-Mo-REE-P
Cloncurry Copper Joint Venture
46% owned by GBM.
Iron Oxide Copper Gold, Iron Sulphur Copper Gold
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Consolidation Strategy Overview
GBM in the last 12 months has successfully consolidated three historic gold producers being Mount
Coolon, Yandan and Twin Hills. These three key mining assets have never been held under single
ownership and were previously mined at periods of much lower gold prices. These 3 gold assets held by
GBM, is a significant step in realising the Drummond Basin “processing halo strategy” with now a
combined resource base of 1.5 million ounces.
All are located within 70 km of the Yandan mining lease which has the potential to be the processing
centre due to its significant infrastructure which includes water storage dams, tailings facilities, airstrip,
leach pads and access to grid power.
The Mount Coolon, Yandan and Twin Hills gold assets are all within the Drummond Basin, one of
Queensland’s most prolific gold provinces. The Basin’s past production of more than 4.5 million ounces
of gold and has a total known gold endowment in excess of 7.5 million ounces of gold. The Drummond
Basin is an established gold mining region which has proven fertile for discovery of epithermal and
intrusive relation gold systems.
GBM considers there is high potential for new discoveries and to substantially increase and upgrade the
gold resources at each of the projects. Exploration activities to date have identified 13 Epithermal Gold
systems in the Drummond Basin. Such systems are characterised by concentration of precious metals like
gold in lode deposits potentially delivering “Bonanza Gold Veins”.
The Company has a significant tenement position with 3,513 km2 granted and a further 686 km2 in
applications in the Drummond Basin.
GBM’s ‘processing halo’ strategy is focused on consolidating a 2–3-million-ounce gold resource for the
Drummond Basin which has the potential to transition GBM into a genuine mid-tier Australian gold
company.
Figure 1: Drummond Basin “processing halo” and resource consolidation.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Mount Coolon Gold Project (MCGP)
The known resources at MCGP contain 330,500 ounces of gold over 3 separate open cuts deposits namely,
Koala, Glen Eva which are on granted mining leases and Eugenia which is on an EPM.
The Glen Eva deposit has been the key focus in the year and an initial program was completed in
November 2020, drilling a total of 3,415 m in 11 holes at Glen Eva and a further 3 holes at the Koala
prospect. The program also included a 66 line km 3D and 2D Induced Potential (IP) geophysics surveys to
test a +6 km long section of the Glen Eva – Eastern Siliceous gold Trend (GEES).
The Company advised in August 2021 that a 2,500 m diamond drill program had commenced at Glen Eva
following up the previous encouraging drill results and the significant results from the 2D and 3D IP
geophysical surveys. Drilling is targeting the epithermal vein system that has extended the known strike
from the current pit a further 400 m to the south-east (SE) and will also test the key IP targets between
Glen Eva and the GEES.
Glen Eva - Drilling
The 2020 Glen Eva drilling program intersected multiple zones of anomalous gold-silver-telluride
mineralisation with low base metals reporting to wide epithermal quartz veins in 8 of the 11 holes drilled
(Refer ASX:GBZ release 29 January 2021). The most south-eastern hole of the 2020 program, 20GEDD011,
returned the best gold-silver results (on a gram x metre basis) of the program and intersected colloform
textured “ginguro bands” and fine bladed texture “pulses” of mineralisation within a 13.4 metre wide
(down hole) epithermal vein that returned 8.9 m @ 1.66 g/t Au and 18.6 g/t Ag from 281.1 m. This
intersection confirmed the Glen Eva structure remains strongly dilated along strike, hosting large veins
with pulses of high grade gold and silver mineralisation to the SE.
Multi-element geochemical and spectral data was collected on all 2020 drill holes and the work mapped
clay species and the distribution of key elements around the Glen Eva vein. Mineralogy collected from
spectral alteration studies and 4-acid digest geochemistry shows that fluid flow is coming from the SE and
highlights a SE plunging base to a potential boiling zone as mapped by the presence/absence of adularia
(Figure 3).
The current drilling program is testing up and down dip and strike extensions of the vein intersected in
20GEDD011. Drill hole 21GEPD012 was drilled 200 m to the SE of 20GEDD011 and intersected a 10 m
wide zone of veining. With this intersection, GBM has significantly extended the known strike length of
the Glen Eva vein (Refer ASX:GBZ release 30 August 2021). A follow up hole will be drilled below hole
21GEPD012. Drilling will also test IP anomalies further to the SE shown in Figure 5.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
MCGP
Glen Eva – Drilling (continued)
Figure 2: A long section along the Glen Eva vein showing the current drilling (completed but awaiting assays – red stars),
2020 drill holes and historic drilling. Also shown are g*m intercepts.
Figure 3: A long section through the Glen Eva vein showing the distribution of alteration minerals and selected pathfinder
elements. Mineralising fluids are interpreted to have travelled from SE to NW. Note that current drilling is testing down
plunge to the SE.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
MCGP
Glen Eva – Eastern Siliceous (GEES) Trend - IP Geophysics
The GEES trend is a +6 km long WNW striking mineralised corridor defined by a series of structures
evident in detailed aeromagnetic data, mapped alteration, surface geochemistry and an alignment of gold
prospects, including the Glen Eva resource (JORC 2012, 78,300 oz Au) and historic production during
1990’s of 154 kt at 7.5 g/t Au for 37 koz (Refer ASX:GBZ release 10 December 2015) at the NW end and
the Eastern Siliceous prospect at the SE end of the trend (Figure 4).
Figure 4: Maps showing GBM’s tenement holdings in the Drummond Basin (left) and the location of the Glen Eva trend between
Glen Eva and Eastern Siliceous (right).
In the year, GBM completed approximately 66 line kilometres of 2D and 3D IP geophysical surveys, partly
funded by an A$184 k Queensland Government CEI grant (Refer ASX:GBZ release 9 September 2020), to
test the GEES trend for mineralisation concealed by post mineral cover. The results are presented in
Figure 5 and confirm the extension of the hydrothermal system between Glen Eva and Eastern Siliceous
with the identification of a large, open ended, +5 mv/v (peak value 10 mv/v) chargeability and coincident
resistivity anomaly localised at a permissive structural intersection in the centre of the GEES trend. Post
mineral cover in the area of the anomaly, means the area has not been previously tested by soil
geochemistry or drilling. Chargeability and resistivity anomalies of the scale and magnitude identified in
the GEES trend may represent the pyrite – argillic wall rock alteration halo to an epithermal vein zone,
highlighting the geophysics anomaly as a key target for drilling.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
MCGP
Glen Eva – Eastern Siliceous (GEES) Trend - IP Geophysics (continued)
Figure 5: A diagram showing stacked chargeability sections along the Glen Eva Trend. Note the location of drill collars for the
current drill program.
Targets identified along the GEES trend is a key exploration focus of 2021/22.
DRUMMOND BASIN
Yandan Gold Project (Yandan)
Yandan was acquired in January 2021 and the JORC (2012) Mineral Resource is estimated for the two
deposits at Yandan, East and South Hill total of 521,000 gold ounces. GBM considers Yandan to be under
explored and very prospective for further gold discoveries.
The most significant gold deposits known to date at the project are localized along a 1.2 km long EW
oriented structural trend of Low Sulphidation Epithermal (LSE) gold deposits, the Yandan Mine Corridor
(YMC) that includes the Yandan Main, South Pit and East Hill deposits. Detailed 3D structural and
stratigraphic framework and deposit scale alteration and geochemical vectoring models have been
completed across the YMC.
The Phase 1 diamond and RC drilling program commenced in April 2021 on East Hill with a focus being on
the YMC. At completion of Phase 1 drilling in July 2021 a total of 13 holes were drilled for 5,676 m
(including daughter holes).
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Yandan (continued)
Key Outcomes of Phase 1 Drilling Include:
Significant results were received in holes:
- 21YEDD006A
- 21YEDD007
214.1m @ 1.6 g/t Au from 236 m, including 26 m @ 5.4 g/t Au from 321 m.
189 m @ 2.0 g/t Au from 255 m, including 16 m @ 4.6 g/t Au from 328 m.
Drilling focused on the East Hill mineralization and confirmed the high-grade core to the resource,
along with the broader lower grade zones.
Potential for the boundaries of the resource have also been extended with 21YEDD002 returning
30 m @ 1.06 g/t Au from 274 m that sits outside the current resource model.
GBM targeted the drilling program with a newly developed geology model that has now been
validated.
Drilling has confirmed the potential to further expand the current gold resources at East Hill and
it is expected that a significant component of the resource will be upgraded to the ‘indicated’
category under the JORC (2012) Resource Estimate for Yandan.
A range of excellent results were returned from the Phase1 drilling program and are presented in Table 1
below. (Location drill holes shown on Figure 6). (Refer ASX:GBZ release 16 August 2021).
Table 1. Significant drilling results from the recently completed East Hill drilling program.
Drill Hole
From
(m)
To (m)
Interval (m)
Gold
Grade
(Au g/t)
g*m
307.0
322.1
21YEDD001
329.5
340.0
368.0
380.0
157.0
224.0
21YEDD002
274.0
304.0
21YEDD003
343.0
363.0
234.7
239.0
260.0
310.0
369.0
384.0
393.0
427.5
21YEDD004
421.0
484.0
21YEDD005A
362.0
406.0
431.0
448.0
15.1
10.5
12.0
67.0
30.0
20.0
4.4
50.0
15.0
34.5
63.0
44.0
17.0
0.53
0.50
0.67
0.43
1.06
0.40
0.92
1.00
1.26
0.63
0.96
0.93
1.02
8
5
8
29
32
8
4
50
19
22
60
41
17
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Yandan (continued)
Drill Hole
From
(m)
To (m)
Interval (m)
481.0
507.0
21YEDD005B
156.0
165.0
26.0
9.0
21YEDD006A
235.5
450.1
214.6
incl.
incl.
incl.
incl.
235.5
267.0
272.0
350.0
321.0
347.0
354.0
450.1
21YEDD006B
223.0
292.0
31.5
78.0
26.0
96.1
69.0
21YEDD007
255.0
444.0
189.0
incl.
incl.
incl.
incl.
incl.
21YEDD007A
328.0
344.0
367.0
377.0
382.7
386.0
404.0
415.0
437.9
443.0
203.0
276.0
287.0
312.0
16.0
10.0
3.3
11.0
5.1
73.0
25.0
Gold
Grade
(Au g/t)
g*m
0.60
0.53
1.56
1.34
2.25
5.37
1.20
0.81
2.01
4.64
5.31
13.92
6.98
8.43
0.41
0.39
16
5
335
42
176
140
115
56
380
74
53
46
77
43
30
10
Drill holes 21YEDD006A and 21YEDD007 returned the most significant results with:
21YEDD006A
214.1 m @ 1.56 g/t Au from 236 m including,
o 31 m @ 1.35 g/t Au from 236 m,
o 19 m @ 7.09 g/t Au from 321 m, and
o 96 m @ 1.2 g/t Au from 354 m
And 21YEDD007
189 m @ 2.01 g/t Au from 255 m including,
o 16 m @ 4.64 g/t Au from 328 m
o 10 m @ 5.31 g/t Au from 367 m
o
3.3 m @ 13.92 g/t Au from 382.7 m
o 11 m @ 6.98 g/t Au from 404 m
o 5.1 m @ 8.43 g/t Au from 437.9 m
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DRUMMOND BASIN
Yandan (continued)
Drilling was targeted using a newly developed geological model that has now been validated. Drilling
intersected extensive zones of brecciation with silica-pyrite infill overlying with increasing depth
(1)
chalcedonic veins with a similar mineralogy to the breccia fill,
(2)
colloform and bladed textured carbonate veins and
(3)
veins with bladed carbonate replaced by silica and colloform and crustiform textures that also host
the best gold grades.
The mineralised system forms as sheeted veins that strike broadly east for a length of approximately 400
m and dip to the south, terminating against a flat lying listric fault. The veins are typically < 10 cm wide
but up to 1.5 m thick and returned assays of up to 347 g/t Au over 1 m from 335.5 m in YAN010. (Refer
ASX: GBZ release 23 December 2020).
Elsewhere in the Drummond Basin (e.g., Pajingo, Koala, Glen Eva) the main vein trend is NW, this
orientation has been identified at Yandan but is yet to be fully explored and will be investigated in future
programs.
The high-grade quartz veins which occur adjacent to the listric fault are surrounded up dip by a large,
lower grade zone of stockwork veining, brecciation, and alteration approximately 400 m by 200 m by 200
m in dimension.
Figure 6. Geological plan of Yandan East Hill drill program.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Yandan (continued)
Figure 7. Detailed location of the Yandan Project area including key deposits located at North East Ridge and Illamahta.
Key Regional Exploration Targets
Illamahta
Illamahta is an LSE gold prospect located at the southern end of the Yandan Trough only 11 km from the
Yandan Mine. The prospect is localised in a structural and stratigraphic setting that is the mirror image of
the YMC. Mapped alteration extends over an area 1.5 km long by 700 m wide and comprises strong
argillisation, decalcification and silicification developed in the upper Saint Anns sediments. Analysis of the
previous exploration results has outlined 250 m by 100 m open-ended (See Figure 8), shallow oxide and
hypogene body of gold mineralization developed in an east-west (EW) orientated zone of “Yandan Main”
style stratabound veinlets and disseminations within the upper Saint Anns sediments.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Yandan (continued)
Figure 8. A map and two cross sections showing previous drilling and scope for additional resources to be defined. Note that
most of the drilling has been concentrated in the area of the initial discovery and that the alteration footprint is substantially
larger.
North East Ridge (NE Ridge)
NE Ridge prospect is located 6 km north of YMC and is a 2 km long x 500 m wide north-east (NE) trending
zone of intermittently outcropping silica - illite alteration and mineralisation (See Figure 9). The prospect
was discovered 1989 and 54 RC and core holes for a total of approx. 5,900 m have been drilled with best
intersection of 7 m at 2.8 g/t Au, including 1 m at 16.6 g/t Au (Refer ASX: GBZ release 31 March 2021).
Mineralisation at NE Ridge occurs in poorly banded chalcedonic veinlets similar to those seen in the lower
grade top of the East Hill deposit.
The project is undertested for near surface gold mineralization and prospective for the discovery of
higher-grade mineralization in permissive structural and stratigraphic settings at depth.
Detailed mapping and sampling will be completed across NE Ridge in the coming months followed by
geophysics (IP) and a small (1,000 m) drill program next year.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
North East Ridge (continued)
Figure 9. A geological map of NE Ridge prospect. Note that the prospect is bound by basin margin faults.
The exploration focus in 2021/2022 is to continue to infill between the main pit and the East
Hill deposits (YMC) to expand resources, upgrade the existing non-compliant resource at the
Illamahta deposit and complete field work on the NE Ridge for resource potential.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills Gold Project (Twin Hills)
GBM announced on 19 July 2021 that it has signed a Binding Tenement Sale Agreement (TSA) to acquire
100% of the Twin Hills Gold Project (Twin Hills) (Refer ASX:GBZ release 19 July 2021). Settlement is
scheduled on or before the 30 November 2021.
The Twin Hills deposits (Lone Sister and 309) have a JORC (2012) Mineral Resource Estimate of 6.9 million
tonnes at 2.8 g/t Au for 633,000 ounces of contained gold on granted mining leases.
Both deposits have returned significant gold intersections from previous drilling, demonstrating
potential for both bonanza gold grades and broad intersections of bulk mineable style gold
mineralisation, hosted by an epithermal veinlet network and breccia matrix style of mineralisation.
Twin Hills is considered highly prospective for the discovery of additional mineralisation, with
preliminary analysis suggesting high grade gold shoots at 309 and Lone Sister may be open at depth.
GBM is set to prioritise drilling at Twin Hills to test these targets following completion of the TSA.
GBM's analysis of the deposit geometry and grade distribution suggests that the 309 and Lone
Sister resources maybe be successfully mined via a combination of bulk minable open pit and bulk
underground mining methods.
Significant Down Hole Intersections include;
309 Deposit
- THRCD875: 140.6 m @ 5.2 g/t Au from 154 m incl. 8 m @ 81.8 g/t Au from 177 m
- TRCD384: 190 m @ 2.3 g/t Au from 25 m incl. 27 m @ 7.3 g/t Au from 100 m
Lone Sister Deposit
- LRCD015: 146 m @ 9.8 g/t Au from 104 m incl. 28 m @ 45.2 g/t Au from 211 m
- LRCD140: 254 m @ 1.2 g/t Au from 128 m incl. 12 m @ 4.1 g/t Au from 265 m
Resource Summary (Refer ASX: GBZ release 20 July 2021)
The 309 and Lone Sister deposits are low sulphidation, epithermal gold deposits hosted within the
western arm of the Drummond Basin in Queensland. The Drummond Basin is host to a number of
significant gold deposits and is considered by GBM to hold potential for further discoveries.
The 309 and Lone Sister gold deposits are located 7 kilometres apart and linked by a major north-south
(NS) structural lineament. Both deposits have previously been interpreted as intrusion related, high
gold fineness, low sulphidation epithermal gold deposits, sometimes exhibiting bonanza gold grades
(as evidenced by the peak gold value in the 309 deposit of 2,940 g/t Au, with 300 individual metre
samples exceeding 30 g/t Au, and a peak gold value of 939 g/t Au at Lone Sister). (Refer ASX:GBZ
release 19 January 2019).
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills (continued)
GBM considers that potential depth extensions and strike repetition of both the 309 and Lone Sister
deposits have not been tested.
The 309 Deposit has been estimated to comprise 4.9 Mt averaging 2.4 g/t Au containing 372,900
ounces of gold and 471,000 ounces of silver (assuming open pit mining to 1050 RL, or a depth of
approximately 200 m).
The Lone Sister Deposit is estimated at 2.0 Mt at an average grade of 4.0 g/t Au containing 260,000
ounces of gold and 604,000 ounces of silver (Refer to Table 2).
Table 2: Twin Hills Resource Summary for the 309 and Lone Sister Gold Deposits (rounded for reporting ‘000 tonnes, ’00
ounces, 0.0 grade). See ASX GBM 18 January 2019 ‘Mount Coolon and Twin Hills Combined Resource Base Approaches 1
million Ounces’. Open Pit Resources (above 1050 RL) stated at 1.0 g/t Au cut-off and underground resources (below 1,050
RL) stated at 2.0 g/t Au.
Category
Cut-off
Tonnage
Grade
Contained Metal
Au (g/t)
(t)
Au (g/t)
Ag (g/t)
Au (oz)
Ag (oz)
309 Deposit
Open Pit (above 1050RL)
Measured
Indicated
Inferred
Total open pit
1.0
1.0
1.0
1.0
320,000
2,690,000
1,300,000
4,310,000
Underground (below 1050 RL)
Measured
Indicated
Inferred
2.0
2.0
2.0
Total underground
2.0
110,000
510,000
620,000
Total 309 Deposit
Measured
Indicated
Inferred
TOTAL
1.0 / 2.0
1.0 / 2.0
1.0 / 2.0
1.0 / 2.0
320,000
2,800,000
1,810,000
4,930,000
4.4
2.2
1.4
2.1
4.8
3.7
3.9
4.4
2.3
2.0
2.4
6.4
3.4
1.7
3.1
3.4
1.8
2.0
6.4
3.4
1.7
3.0
44,400
193,100
58,500
65,000
295,400
70,100
296,000
430,500
16,800
60,100
76,900
11,900
28,800
40,700
44,400
209,900
118,600
65,000
307,300
98,900
372,900
471,200
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills (continued)
Category
Cut-off
Tonnage
Grade
Contained Metal
Au (g/t)
(t)
Au (g/t)
Ag (g/t)
Au (oz)
Ag (oz)
Lone Sister Deposit
Measured
Indicated
Inferred
TOTAL
2.0
2.0
2.0
2.0
2,010,000
2,010,000
4.0
4.0
Total Twin Hills
Measured
Indicated
Inferred
TOTAL
1.0 / 2.0
1.0 / 2.0
1.0 / 2.0
1.0 / 2.0
320,000
2,800,000
3,820,000
6,940,000
4.4
2.3
3.1
2.8
9.4
9.4
6.4
3.4
5.7
4.8
260,100
260,100
604,800
604,800
44,400
209,900
378,700
633,000
65,000
307,300
703,700
1,076,000
Twin Hills Geology and Exploration Potential – High Grade Shoots Open to Depth
Twin Hills is hosted by a sedimentary-volcanic package interpreted to have been deposited in a late
Devonian age, structurally controlled, pull apart basin that formed along the margin of a Cambro-
Ordovician age metamorphic basement high, the Anakie metamorphic inlier (Refer to Figure 10).
Figure 10: Geological setting of 309 and Lone sister deposits
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills (continued)
Gold-silver mineralisation is temporally and probably genetically linked to subvolcanic to volcanic felsic
domes and related breccia pipes. The age of mineralisation at Lone Sister and by association the
related domes has been shown to be early Carboniferous (341 to 346 ma).
Mineralisation at the Twin Hills project, 309 and Lone Sister deposits (Figure 10) belongs to the felsic
dome related, high gold fineness, low sulphidation quartz sulphide class of mineralisation that has
produced a number of notable high value gold deposits including the high-grade Sleeper deposit and
large bulk minable style deposits like Round Mountain in Nevada. This class of deposit usually develops
an early phase of quartz-sulphide gold mineralisation followed by later stages of very high-grade often
free gold quartz and or gold electrum chalcedony events, as is seen at Twin Hills, that are important
to the deposit economics.
GBM’s preliminary interpretation shows that the Twin Hills deposits are characterised by the 309
(phreatomagmatic to phreato-hydrothermal) milled matrix breccia body and the Lone Sister breccia
and veinlet zone that is hosted within a rhyolite feeder dyke to a flow dome and the adjacent wall rock
sediments. Better gold mineralisation in these deposits is strongly associated with epithermal quartz
breccia matrix fill and cross cutting quartz facture veinlet networks, forming discontinuous veinlet
corridors that crosscut the host rock. GBM believes that the 309 and Lone Sister deposit characteristics
are better suited to open pit or underground bulk mining approach.
Drilling Target Strategy 2021/2022
GBM has commenced evaluation of the previous drilling at Twin Hills reassessing the deposit geology
and applying geological cut-offs consistent with a bulk mining concept to the mineralised intervals.
This approach has outlined very encouraging broad (down hole) intersections of bulk minable style
gold mineralisation as well as high grade gold intersections that together define coherent bodies of
gold mineralisation. Selected down hole gold intersections are presented in Table 3.
Note: a very high-grade intercept in Hole TRCD728 below was not included in Table 3 on the following
page as GBM believes this intercept was drilled sub-parallel to a mineralised shoot. At a 1.0 g/t Au cut-
off, 158 m @ 34.6 g/t Au from 174 m incl. 15 m @ 359.5 g/t Au from 221 m at a 5.0 g/t Au cut-and incl.
2.0 m @ 2,545 g/t Au from 222m.
Long sections displaying the gold grade multiplied by the down hole length of the gold intersection
(gram x metre) for the primary mineralised body at 309 and Lone Sister outline large strongly
mineralised shoots that initial interpretations show are open to depth and in some cases along strike.
The down hole and along strike projections of these shoots are compelling targets for the
initial GBM drill program at 309 and Lone Sister in 2021-22.
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REVIEW OF OPERATIONS
DRUMMOND BASIN
Twin Hills (continued)
Table 3: 309 and Lone sister Deposits Selected Down Hole Gold Drill Intersections. (Refer ASX: GBZ release 20 July 2021)
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REVIEW OF OPERATIONS
Malmsbury Gold Project JV (Malmsbury)
JV Formation
GBM entered a Farm-in Agreement with Novo Resources Corp. (option exercised on 25 September 2020)
for a 50% Joint Venture interest in Malmsbury and the right for Novo Resources Corp. (Novo) to earn an
additional 10% interest by incurring A$5 million in exploration expenditure over a four year period (Refer
ASX:GBZ release 15 January 2021).
The final condition precendent (FIRB approval) was completed in May 2021 with Novo and the formation
of the JV is now finalised. The completion consideration to GBM was the issue of 1,575,387 Novo shares
which have been issued and are now out of the escrow period. Current market value of the consideration
is approximately A$3.0 million.
Overview
The Malmsbury Gold Project is located in the prolific Bendigo Zone of the Victorian Goldfields, an area
that has historically produced in excess of 60 Moz of gold from alluvial and hard rock production.
The Malmsbury Retention Licence RL006587 was granted by Department of Economic Development,
Jobs, Transport and Resources (DEDJTR) for a period of 10 years from the 23 June 2020.
Malmsbury displays many of the characteristics of the epizonal orogenic gold deposit class that includes
Kirkland Lake’s Fosterville Mine. The cumulative 8.5 km strike extent of historic pits and mines, and
evidence of high-grade gold mineralization are indicators of a large, fertile mineral system.
The 1 km long Leven Star Trend, where GBM has outlined a 104,000 ounce (820 kt at 4.0 g/t Au) gold
Inferred resource (refer ASX: GBZ release 4 July 2019), has only been drill tested to relatively shallow
depths, with very limited modern exploration across the remainder of the goldfield until the last 12
months under the partnership with Novo.
The JV recognises the underexplored nature of the goldfield and considers it highly prospective in
character and considers it to hold potential for discovery of further significant gold mineralisation.
Figure 11: Regional geological and tectonic setting and location of the Malmsbury Gold Project.
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REVIEW OF OPERATIONS
Malmsbury (continued)
Exploration Activities
Field activities commenced in the later part of 2020 and consisted of surface sampling across the retention
licence, re-logging and sampling of historical drill core, hyperspectral analysis of surface samples and
capture of high-resolution airborne imagery and LiDAR terrain data.
Detailed mapping focused on the mineralisation and structural setting on and around Belltopper Hill.
Areas mapped include Panama, Missing Link, Never Despair, Leven Star, O’Conner’s, Hanover and un-
named workings in the north (Figure 12).
Stage 1 Results and Outcomes Include:
Orientation soil sampling programme (414 samples from 167 sites), mine dump and outcrop
rock sampling (339 samples), relogging and sampling of historic drill core (756 samples), high-
resolution airborne imagery and LiDAR terrain data.
A new interpretation of alluvial and deep lead workings at the Belltopper Hill field, estimated to
have produced in excess of 60,000 oz Au, has been completed using LiDAR data and old
Geological Survey/Parish maps. The distribution of the leads indicates gold is sourced from the
partially eroded upper levels of reef system, suggesting that these reefs are more significant as
hosts to gold mineralisation than previously thought.
Orientation surveys has shown soil sampling techniques are highly effective at delineating zones
of gold mineralisation in the Belltopper Hill and is also at the Drummond North Goldfield where
soil sampling has not been used before. This initial survey provided evidence that at least one
mineralised zone may extend further than indicated from the surface workings. Systematic soil
sampling is planned for the 2021 program.
Encouraging Rockchip gold assays confirm the presence of wide-spread gold mineralization
cross the project with 166 samples (49% all samples – Table 4) assaying > 0.5 g/t, averaging 3.82
g/t Au and 20 samples (5.9%) assaying > 5.0 g/t averaging 19.7 g/t Au. Results included a peak
assay of 180.0 g/t Au from a select sample of narrow quartz veinlets outcropping at the Missing
Link line of workings.
Rockchip multielement assays and geological observation confirm the presence of a
disseminated gold – arsenic and a vein related high grade gold – antimony phase of
mineralization as seen at the nearby Kirkland Lake Fosterville mine.
Systematic assaying of unsampled sections of previously drilled core has expanded the width
and highlighted a number of new gold anomalous zones, with best results of 4.85 m @ 1.77 g/t
Au from 97 m in hole LSDD1, highlighting a wider zone of gold mineralization at the Leven Star
Trend than previously recognized.( Refer ASX:GBZ release 15 January 2021)
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REVIEW OF OPERATIONS
Malmsbury (continued)
Table 4. Malmsbury mine dump and rock chip gold assay results. (Refer ASX:GBZ release 15 January 2021)
Rock Chip Au Assays - All samples
Total Samples Mullock/Outcrop/Subcrop/Float = 339 with peak assay of 180 g/t gold
% of samples
76.1
49
32.7
12.1
5.9
# Samples
258 Samples
166 Samples
111 Samples
41 Samples
20 Samples
Au g/t
≥ 0.1 g/t
≥ 0.5 g/t
≥ 1.0 g/t
≥ 3.0 g/t
≥ 5.0 g/t
Avg. Au g/t
2.5
3.8
5.4
11.5
19.7
Mapping since mid-January has included detailed 1:500 scale fact mapping of approximately 1.35 km2,
including a large proportion of the known main historic mineralized trends in the Belltopper Hill Area.
Areas mapped include Panama, Missing Link, Never Despair, Leven Star, O’Conner’s North and un-
named trends in the north. Numerous outcrops have been mapped in conjunction with several
hundred structural readings. Over 450 individual historic bedrock workings and over 200 costeans
have also been mapped and the data is currently being compiled and digitized.
The geology includes a N-S to NNE trending interbedded sequence of shale, siltstone, sandstone and
granulestone, truncated by abundant N-S to WNW trending mineralized faults generally dipping
steeply to moderately to the east to north-east (NE). Occasional NE trending faults, such as the Leven
Star are also present. The deep crustal structure, the Taradale Fault is interpreted to transect the
western edge of the Licence area .
Stage 2 of the surface rock sampling program continued during the second half of the year. Sampling
now has a two-part focus:
Areas of historical workings identified in the LiDAR survey data and not sampled in Stage 1.
Outcrop locations not associated with workings and identified during the mapping program.
A total of 166 samples have been collected to date for Stage 2 (including 10 QA/QC samples), most
from historical workings. This programme will build on the encouraging results from Stage 1 rockchip
gold assays already collected which confirm the presence of wide-spread gold mineralization cross
the project.
Rockchip multielement assays and geological observation confirm the presence of a disseminated
gold – arsenic and a vein related high grade gold – antimony phase of mineralization as seen at the
nearby Kirkland Lake Fosterville mine.
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REVIEW OF OPERATIONS
Malmsbury (continued)
Figure 12: Southern Belltopper Hill area showing main cluster of workings with historical production and deep lead/alluvial
workings, over Lidar image. JV mapped structures and Belltopper Granite are shown along with rock chip sample points (Au).
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
Malmsbury (continued)
Exploration Program for 2021/2022
The forward program at Malmsbury will see completion of a large conventional soil sampling program
over most of the lease area. This program follows on from and is informed by results from the orientation
program completed last year and is currently in progress. Inversion modelling of the recently acquired
Falcon potential field data will take place this quarter and should assist with understanding anomaly
geometry, particularly the gravity low beneath Belltopper Hill.
A statutory Work Plan was lodged earlier in the year for drilling on the Leven Star resource has been
approved. This will be the first phase of drilling at Malmsbury and will comprise around 500 metres of
diamond drilling to test for high grade shoot extensions near the Leven Star/Missing Link structural
intersection zone on the south face of the hill. A second and third phase of drilling is budgeted and will
test targets including the Queens and Egyptian Reefs on the Drummond North Goldfield. These drilling
programs are planned to start in November 2021. This Goldfield has historical production of around
90,000 ounces and is to date tested by only one drill hole.
The drilling will also provide samples for metallurgical testwork for Au-As-Sb lode hosted mineralisation.
This Phase 1 program is expected to commence in November this year. Phase 2 and 3 drilling of up to
2,800 metres of diamond drilling will include Fosterville-type targets along the Drummond field will be
informed by the soil results, potential field modelling, surface data synthesis and 3DIP survey data if
completed.
White Dam Gold - Copper Project (White Dam)
Overview
The Company executed the Joint Venture Agreement (JV) on the White Dam Gold-Copper Heap Leach
Operation with Round Oak Minerals Pty Ltd (Round Oak) on 1 July 2020.
From 1 July 2020, GBM shared 50% of the gold and copper production from White Dam under the JV with
Round Oak. Under this agreement, GBM also had the option to purchase all the White Dam assets
between 1 January 2021 and 30 June 2021.
GBM’s 50% JV interest was earnt via the construction of a Sulphidisation-Acidification-Recycling-
Thickening (SART) Plant at White Dam. The SART Plant is designed to extract copper from the gold leach
solution, thereby improving overall gold recoveries.
GBM announced on 16 June 2021 that it has exercised its option to acquire 100% of the White Dam in
South Australia from Round Oak Minerals Pty Ltd.
As 30 July 2021, GBM has a 100% interest in White Dam which includes associated infrastructure, all
leaching, gold processing plant, mining leases (including all JORC resources) and other tenements. The
exercise price was $500 k and replacement of a $1.9 million environmental bond.
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REVIEW OF OPERATIONS
White Dam ( continued)
White Dam is located in South Australia, approximately 50 km SW of Broken Hill. It is a heap leach
operation that, since 2010, has produced approximately 175,000 oz of gold from two open cuts by heap
leaching of 7.5 Mt of ore at 0.94 g/t Au. The current unmined JORC (2012) resource for White Dam Project
is 4.6 Mt at 0.7 g/t Au for 101,900 oz Au.
The two open cuts are the Vertigo, located within a granted mining lease (ML 6395) and the second is the
nearby White Dam North which is enclosed within an advanced lease adjacent to ML 6395 (MPL 105).
Figure 13: Location map of the White Dam Gold-Copper Heap Leach Operation
Since commissioning, the SART plant has operated above expectations with lower costs due to less
cyanide usage and improved gold recoveries from the existing heaps.
The White Dam JV between Round Oak Minerals and GBM commenced on 1 July 2020. It has produced
a total of 1394 gold ounces to 30 June 2021 together with approximately 95 tonnes of copper in
concentrate stockpile at the White Dam site. Gold revenue sales totalled $2.92 million resulting in net
income from the joint venture of $878k. Gold and copper inventory on hand total $618K.
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REVIEW OF OPERATIONS
White Dam ( continued)
The White Dam JV is finalising smelter terms in Australia for the sale of copper concentrate and is
expected to be delivered to the customer in the December 2021 quarter.
Table 5: White Dam JV gold sales by quarter
Calendar quarter
Gold sold (oz)
September 2020
December 2020
March 2021
June 2021
100
347
560
387
Note: Minor silver production and sales not shown.
As of 30 July 2021, GBM has a 100% interest of all assets and production from the White Dam Operations.
Figure 14: White Dam Gold Plant and Associated Infrastructure.
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REVIEW OF OPERATIONS
White Dam (continued)
Phase 1 RC Drilling
The initial focus of the program was on the Vertigo open cut, which has a current JORC (2012) Mineral
Resource estimate of 1.7 Mt at 0.7 g/t Au for 38,300 ounces gold.
The key objectives of the Phase 1 RC drilling at White Dam were:
Upgrading Inferred category resource material (improving resource confidence) in these zones;
Providing additional copper assay data.
Increasing overall resources in these zones; and
The drilling results from this program, combined with the resultant resource outcomes, are inputs into a
study being undertaken with respect to mining and treatment of additional material at White Dam. This
work is designed to evaluate and capture the magnitude of potential life extension (and expansion)
opportunity available at White Dam. White Dam also contains a broader exploration tenement package
with considerable potential for further resource accretion given further exploration.
A total of 53 reverse circulation (RC) drill holes (4,041 m) have been drilled by GBM as part of Phase 1 of
the planned drilling at White Dam, with 43 RC holes (3,270 m) drilled at Vertigo and 10 holes (771 m)
drilled at White Dam North.
Assay results have now been received for 20 of the 43 holes drilled at Vertigo. Samples are currently in
the laboratory for the remaining Vertigo holes and the completed 10 White Dam North holes. Remaining
results are expected in the December 2021 quarter.
Significant mineralised intersections logged as oxidised included: (Refer ASX:GBZ release 5 July 2021)
Hole V21-RC-022.
Hole V21-RC-035.
Hole V21-RC-028.
Hole V21-RC-027.
14 m @ 0.81 g/t Au & 0.29 % Cu from 37 m
3 m @ 0.87 g/t Au & 0.38 % Cu from 38 m
13 m @ 0.41 g/t Au & 0.11 % Cu from 28 m
11 m @ 0.44 g/t Au & 0.07 % Cu from 26 m
Drilling results from the sulphide zone around the base of oxidation demonstrate significant gold and
copper mineralisation potential with continuous economic grades identified across multiple drill holes
and section lines.
The results broadly confirm the modelled mineralised zones, with significant mineralised intercepts
logged as fresh rock hosted include:
Hole V21-RC-035:
12 m @ 2.95 g/t Au & 0.94 % Cu from 67 m,
Incl. 5 m @ 5.44 g/t Au & 1.69 % Cu from 70 m
Hole V21-RC-033:
9 m @ 2.29 g/t Au & 0.58 % Cu from 61 m,
Incl. 4 m @ 4.16 g/t Au & 0.96 % Cu from 64 m
Hole V21-RC-012:
Hole V21-RC-034:
12 m @ 1.39 g/t Au & 0.42 % Cu from 46 m
13 m @ 1.24 g/t Au & 0.38 % Cu from 65 m
Incl. 2 m @ 4.57 g/t Au & 1.01 % Cu from 66 m
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REVIEW OF OPERATIONS
White Dam (continued)
While geological logging of oxidisation/weathering gives an indication of the likely distribution of oxidised
cyanide heap leachable and fresh sulphide mineralisation, additional geochemical work is underway to
further characterise their extent. All mineralised intersections from the recent drilling are being assayed
for cyanide soluble copper. This method will provide further insight into the distribution of oxidised,
transition and fresh ore while also providing a better understanding of heap leachable copper contained
within the current resource.
Host mineralisation of the Vertigo Open cut gold-copper mineralisation is primarily hosted within a biotite
gneiss rock with distinctive white feldspar and translucent blue quartz. This unit is interpreted to be
intermediate to mafic intrusive in origin. The upper mineralised zones are interpreted to be hosted within
an intercalated sequence of quartzite and biotite rich gneissic units of sedimentary origin with occasional
layers of pyroxene rich hornfels and microgranite.
Figure 15: Drilling Completed at Vertigo Pit
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
White Dam (continued)
Development activities 2021/2022
GBM is progressing a number of operating and production enhancements which together will further
optimise and expand gold and copper production from the existing heap leach operation.
GBM has initiated studies to evaluate the potential to mine resources at current metal prices, utilising the
capacity of the SART plant to recover copper and regenerate cyanide. Future increase production if
economic, will rely on only funding mining costs and working capital as the infrastructure, including heaps
and a gold processing plant is already in place. This provides GBM with optionality and a low cost/risk
further development opportunity.
Figure 16: White Dam Project aerial photo with JORC (2012) Resources
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
MOUNT MORGAN GOLD-COPPER PROJECT ( Mount Morgan 100%, Subject to Vend in)
GBM advised on the 18 June 2021 that it has executed a binding tripartite Letter of Intent (LOI) for the
sale of its 100% owned Mt Morgan Gold-Copper Project in Queensland (which includes the recently
acquired EPM 17850), Australia (Mt Morgan). See Figure 17.
GBM will seek shareholder’s approval to proceed with the proposed transaction at this year’s Annual
General meeting.
Transaction Overview
Binding LOI executed with Smartset Services Inc. (Canadian Company listed on TSXV: SMAR.P) for
sale of Mt Morgan Project.
Smartset to also acquire four gold and copper projects in north-eastern NSW from private
Canadian company, Great Southern Gold Corp.
Scrip consideration sees GBM expected to own 47.5% of Smartset (prior to concurrent C$8 million
equity raising by Smartset).
Smartset to undertake systematic, well-funded exploration of the Mt Morgan Project targeting
discovery of large-scale gold and copper deposits.
Key transaction conditions precedent include, due diligence, TSXV, ASX and requisite shareholder
approvals, completion of the Smartset equity raising and other customary conditions.
Transaction Benefits
Disposal of a non-core asset into a focused vehicle delivers acceleration of exploration value
unlock while allowing GBM to maintain focus on its flagship Drummond Basin gold assets.
Alignment with a strong technical, corporate and capital markets partner in the Smartset team.
Ongoing equity exposure to Mt Morgan value appreciation and future realisation.
Listed equity provides enhanced future transacting flexibility for GBM and greater value
transparency for GBM shareholders with respect to their ownership interest in Mt Morgan.
Figure 17: GBM’s Mt Morgan project tenements and prospects to be vended in to Smartset and EPM17850 that has recently
been acquired - highlighted in Red.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
MOUNT MORGAN (continued)
Asset Consolidation Opportunity
The Eastern States of Australia are underlain by a collage of geologic orogens that formed over 500 ma
period and from the Cambrian to Triassic periods, along the margin of the supercontinent Gondwana. Mt
Morgan is focused within Devonian to Triassic arcs of the Mossman and New England Orogens that have
a significant gold pedigree with over 40 Moz of gold delineated in historic production and current reserves
from eleven (11), + 1 Moz Au deposits (Figure 18) that include Mt Morgan intrusive related Au-Cu,
Intrusion Related Gold Systems (IRGS), Epithermal gold and Orogenic Gold deposits.
Figure 18: Eastern Australian operating mines and projects
The historic Mt Morgan Mine is the single largest deposit in the New England Orogen and remains one of
the largest gold deposits in Australia. The Mt Morgan Mine operated for over 90 years producing 50 Mt
of ore from a single body of mineralization, averaging 4.75 g/t Au and 0.72 % Cu, for a total 7.65 Moz gold
and 361 kt of copper.
The genesis of the deposit remains contested, but geoscience consultants, Global Ore Discovery, consider
that the Mt Morgan deposit is a magmatic related gold-copper deposit that is genetically linked to a
Devonian age intrusive complex outcropping in the mine area and over a large area within the GBM
claims. The deposit geology suggests mineralization formed in a submarine island arc setting and
produced a shallow epigenetic deposit with hybrid epithermal to porphyry transition characteristics.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
MOUNT MORGAN (continued)
Smartset Strategy
Smartset’s stated intention is to undertake systematic, well-directed and well-funded exploration of the
Mt Morgan Project for large scale gold and copper deposits. GBM and Smartset plan to collaborate to
acquire regional coverage of high-resolution airborne magnetics and EM geophysics over a large area of
the Devonian target stratigraphy.
(Refer ASX:GBZ release 18 June 2021 for more explanation on the assets and consolidation strategy).
CLONCURRY FARM -IN JOINT VENTURE - NIPPON MINING OF AUSTRALIA (46% Interest)
The Joint Venture targets Iron Oxide Copper Gold (IOCG) and Iron Sulphide Copper Gold (ISCG) style
systems in the Mount ISA Region.
Overview
Joint venture partner Nippon Mining of Australia (NMA, a wholly owned subsidiary of JX Nippon Mining
& Metals Corporation (JXNMM)) currently holds a 53.9% interest in the Farm-In/Joint Venture acquired
in 2020 (Refer to GBM Annual report 2020 and Pan Pacific Copper Co., Ltd. (PPC) press release 12 February
2020). This venture was originally formed in 2010 with (PPC and held by PPC subsidiary Cloncurry
Exploration and Development Pty Ltd (CED). JXNMM was a majority partner in PPC along with Mitsui
Mining and Smelting Co., Ltd.
Total project expenditure to date has been $16.9 million exploring for Iron-Oxide-Copper-Gold (IOCG) and
more recently Iron-Sulphide-Copper-Gold (ISCG) style deposits in the Cloncurry Region of the North-West
Mineral Province of Queensland mainly north of the Ernest Henry Copper/Gold Mine.
GBM remains the manager of the Joint Venture and retains a free carried interest of 10% through to
completion of a bankable feasibility study. The JV includes the Mount Margaret and Bungalien Projects
(see Figure 19).
JV Budget Approved 2021
GBM completed a successful trial Moving Loop Electro-Magnetic survey (MLEM) program in 2019 at Mt
Margaret, which indicated the method will penetrate conductive cover throughout the eastern half of the
project and which generated a series of basement conductors in this area. The MLEM survey planned for
this year will follow up on the 2019 work and is planned to produce detailed ground EM data over selected
target areas.
A budget of $0.75 million has been approved by the JV Management Committee. This will support the
proposed MLEM follow up program and will also include an allowance for limited drill testing of priority
targets generated by the EM. Work has commenced in September 2021.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
CLONCURRY FARM -IN JOINT VENTURE - NIPPON MINING OF AUSTRALIA (46% Interest)
Figure 19: Location of GBM and Farm in Tenements in the Cloncurry Region.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
MAYFIELD IOCG PROJECT (100% owned GBM)
The Mayfield Project is located approximately 150 km south east of Mount Isa within the Mary Kathleen
Zone of the Eastern Succession.
At either end of the project sit the Trekelano Cu-Au mine with a resource (2006) of 3.1 million tonnes @
2.1% Cu and 0.64 g/t Au, and the Tick Hill mine which produced 470,000 tonnes averaging 28 g/t Au.
The structural setting and fertile Corella Formation rocks combine to produce a highly prospective belt
with numerous IOCG-style Cu-Au and base-metal occurrences defined within. Almost the entire Pilgrim
Fault Zone is currently under lease and recent work by various companies, including Hammer Metals at
their Kalman Project, supports the potential for discovery within the Mayfield Project.
Figure 20: Location of GBM Mayfield Tenement.
GBM is in discussions with several parties to dispose of this tenement.
GBM Resources Annual Report 2021
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REVIEW OF OPERATIONS
BRIGHTLANDS AND MILO IRON-OXIDE COPPER-GOLD (IOCG) REE PROJECT (100% owned GBM)
The Milo IOCG system with an estimated resource containing 97,000 tonnes of copper, 14 million pounds
of U3O8 and 108,000 tonnes of TREEYO shows significant exploration upside.
The Milo Project on Brightlands EPM14416 is located due east of Mount Isa, approximately 20 kilometres
west of Cloncurry on the Barkley Highway, far northwest Queensland. Brightlands contains numerous
targets for structurally hosted and IOCG style copper and gold copper mineralisation.
Previous exploration by GBM has successfully delineated a large polymetallic resource at Milo. However,
many targets remain to be fully evaluated, and the Milo area still holds potential for significant resource
extension. Following a review GBM considers this project to be non-Core and has elected to dispose of
the tenement.
GBM has recently signed a non-binding Proposal (Proposal) with Consolidated Uranium Inc. (Canadian
Company listed on TSXV: CUR) for the sale of Brightlands Milo tenement EPM 14416. Refer ASX:GBZ
release 17 September 2021 for more details.
GBM Resources Annual Report 2021
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TENEMENT SCHEDULE
Project / Name
Tenement
No.
Owner
Status
Manager Interest
Interest
31-Mar-21 30-Jun-21
Victoria
Malmsbury
Drummond
South Australia
Project Area
White Dam
RL006587
GBMR/Belltopper Hill/Novo GBMR
50%
50%
Granted
EL6299
EL6435
EL6565
ML6395
MPL107
MPL106
MPL105
MPL95
MPL6275
MPL139
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
GBMR (Exco/Polymetals)
Queensland
Mount Morgan (Project
Mt Morgan West
Mt Morgan East
Mt Morgan Central
Mount Usher
Mount Usher
Project Area
Mount Isa Region (QLD)
Mount Margaret (Project Status)
Mt Malakoff Ext
Cotswold
Dry Creek
Dry Creek Ext
Mt Marge
Tommy Creek
Corella
EPM27096
EPM27097
EPM27098
EPM27865
MDL2020
EPM16398
EPM16622
EPM18172
EPM18174
EPM19834
EPM25544
EPM25545
GBMR
GBMR
GBMR*2
GBMR
GBMR
GBMR*2, 4 /Isa Tenements
GBMR*2, 4 /Isa Tenements
GBMR*2, 4/Isa Tenements
GBMR*2, 4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
EPM27128
EPM27166
GBMR*4/Isa Tenements
GBMR*4/Isa Tenements
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Renewal App
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Application
46.07%
46.07%
46.07%
46.07%
46.07%
46.07%
46.07%
45.97%
45.97%
45.97%
45.97%
45.97%
45.97%
45.97%
Granted
Granted
Granted
Granted
Renewal App
Granted
Granted
46.07%
46.07%
45.97%
45.97%
Granted
Granted
Middle Creek
Sigma
Brightlands
Brightlands
Bungalien
Bungalien 2
The Brothers
Mayfield
Mayfield
Project Area
Mt Coolon
Mt Coolon
Mt Coolon North
Mt Coolon East
Conway
Bulgonunna
Black Creek
Sullivan Creek
Belleview
Pasha
Suttor
Yandan East
Clewitts
Twin Hills Sth
Twin Hills Nth
Whynot
Yandan North
Gunjulla
Yacimiento
Yandan
Yandan West
Yandan East
EPM14416
GBMR*2/Isa Brightlands
GBMR
100%
100%
Renewal App
EPM18207
EPM25213
GBMR*2,4/Isa Tenements
GBMR*2/Isa Tenements
GBMR
GBMR
46.07%
46.07%
45.97%
45.97%
Granted
Granted
EPM19483
GBMR*2,/Isa Tenements
GBMR
100%
100%
Granted
EPM15902
EPM25365
EPM25850
EPM7259
EPM26842
EPM26914
EPM27555
EPM27556
EPM27557
EPM27558
EPM27591
EPM27592
EPM27594
EPM27597
EPM27598
EPM27644
EPM27974
EPM27554
EPM8257
ML1095
ML1096
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR
GBMR/Straits Gold
GBMR/Straits Gold
GBMR/Straits Gold
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
GBMR
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Application
Granted
Granted
Application
Application
Granted
Granted
Renewal App
Renewal App
ML 1029
ML 1085
ML 1086
ML 10227
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
GBMR/MCGM
Koala 1
Koala Camp
Koala Plant
Glen Eva
Project Area
TOTALS
Note
* 2 subject to a 2% net smelter royalty is payable to Newcrest Mining Ltd. On all or part of the tenement area.
* 3 Approximately 16km 2 which was the area of previous EPM19849 Moonmera, is subject to 1% smelter royaly and other
conditions to Rio Tinto
* 4 subject to Farm In by Cloncurry Exploraiton and Develoment, a subisdiary of Pan Pacific Copper Ltd.
GBMR
GBMR
GBMR
GBMR
100%
100%
100%
100%
100%
100%
100%
100%
Granted
Granted
Granted
Granted
GBM Resources Annual Report 2021
P a g e | 44
2021 ANNUAL MINERAL RESOURCES STATEMENT
The following Annual Statement of Mineral Resources statement reflects the Company’s mineral
resources (including wholly owned subsidiary companies) as at the 30 September 2021. This section of
the Annual Report includes relevant information set out in that Statement. Events that have occurred in
the three months ending 30 September 2021 that are likely to impact on resources in the future including
ongoing exploration and acquisitions are noted.
The GBM combined gold resources from all projects at the 30 September 2021 are estimated to contain
1.0 million ounces of gold. This is the first time in the Company’s history that resources have reached the
1 Moz milestone. There is every expectation that this will significantly increase during the 2022 financial
year as the impact of ongoing exploration and acquisitions take effect. This represents an increase
estimated total contained gold of 444,900 ounces or 79% from the previous year with the increase
entirely due to (1) the acquisition of the Yandan Gold Project 521,000 ounces and (2) acquisition of the
White Dam Gold Project 101,900 ounces. The resource for Milo has not been included this year as it is a
JORC 2004 Resource and has not been upgraded to JORC 2012 at this time.
For the purpose of preparing this Annual Statement of Mineral Resources (ASMR) as at 30 September
2021, GBM has completed a review of each resource taking into account long term metal price, foreign
exchange rates, cost assumptions based on current industry trends and conditions, any changes that may
affect the capability for these resources to be exploited or which may result in material changes to cut-
off grades and physical mining parameters. It should be emphasised that this is a summary only of the
Company’s resources and for further detail the reader is referred to the respective ASX releases listed at
the end of this section.
In relation to commodities key to GBM’s resource base the company holds the following views;
Operating costs in the industry have again moved in in different directions during the last 12 months.
Labour costs have continued to edge further upwards, while average diesel fuel prices were down
during 2021 by approximately 10%.
Gold price finished the year US$1,762 after starting the year at US$1,776 and has since moved to
US$1,796 (14 September 2021) after reaching a peak of US$2,038 on 9 August 2020. Forecasts appear
to remain in agreement with most forecasting the price to increase further in the short to medium
term. Importantly for GBM, the long-term upward trend which has continued since 2006 in AUD gold
prices appears to be continuing and may support a review of price assumptions for resource estimates
in the future.
The copper price opened the year at US$6,038/t and finished at US$9,347/t, reaching a high of
US$10,538 on 10 May 2021. Since the end of the financial year copper prices have eased slightly.
Commentators continuing to forecast copper to enter a period of production shortfall in the long term
putting upward pressure on prices, the effects of the Coronavirus in key producing countries has
continued to impact negatively on production capacity. It should be highlighted that copper remains
an important component of the technological revolution including new battery and motor technology.
Since the commissioning of the SART plant during 2020, copper is now a by-product of gold production
at the Company’s White Dam Gold Mine.
The Australian dollar has traded in a range from 0.70 USD to 0.80 USD throughout the year and in
relation to the US dollar appears to have stabilised throughout the year with the Australian Dollar
finishing the year at 0.75 USD moving from 0.68 USD at 30 June 2020. At the time of writing the
Australian dollar is trading around 0.74 USD. This stabilisation of our currency at these levels, in
conjunction with ongoing strong metal prices has resulted in a positive outlook for Australian ore
deposits, including gold deposits.
GBM Resources Annual Report 2021
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2021 ANNUAL MINERAL RESOURCES STATEMENT
The company believes that, considering the outlook for commodity prices and other factors, there is a
reasonable expectation that resources at all projects will eventually support mining operations.
Changes Since 30 September 2021 Mineral Resource and Ore Reserve Statement
GBM is not aware of any new information or data that materially affects the information contained in the
“Annual Mineral Resource and Ore Reserve Statement – 30 September 2021” other than changes due to
ongoing exploration to extend mineralisation. These changes are summarised by province below:
1. At Yandan, exploration drilling continued and a resource re-estimation is planned during 2022
Financial year.
2. Recently completed drilling at the White Dam Gold Project is likely to support a re-estimation of
resources during 2022 Financial year.
A binding agreement for the acquisition of the Twin Gold Mine was announced on the 19 July 2021.
However, as the acquisition has not been completed, the resources for this project have not been
included in this ASMR (Refer ASX:GBZ release 19 July 2021 ‘Transformational Acquisition of Twin Hills
Gold Project’).
Drummond Basin Gold Project Resources
The Mount Coolon Project is located in the Drummond Basin in Queensland. Tenements and resources
are owned by the Company’s 100% owned subsidiary, Mount Coolon Gold Mines Pty. Ltd. There have
been no changes in the Mount Coolon resources since the last Annual Statement of Mineral Resources
as at 30 June 2020.
During 2021 GBM completed the acquisition of the Yandan Gold Project (also located in the Drummond
Basin) and completed a re-estimation of the project resources compliant with JORC 2012. Yandan Project
tenements are owned by the Company’s 100% owned subsidiary Straits Gold Pty Ltd.
The Company considers that any minor increases in mining and operating costs that may have occurred
through the year have been outweighed by the increase in average gold price in Australia resulting from
a favourable combination of commodity price and minor currency movements. The company believes
that, considering the outlook for commodity prices and other factors, there is a reasonable expectation
that resources at the Drummond Basin projects will eventually support mining operations.
The information in this report that relates to Koala and Glen Eva Mineral Resources is based on information
compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and
The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
The information in this report that relates to the Eugenia Mineral Resource is based on information
compiled by Scott McManus, who is a Member of The Australasian Institute of Mining and Metallurgy and
The Australasian Institute of Geoscientists. Refer ASX:GBZ release 4 December 2017.
The information in this report that relates to the Yandan Gold Project is based on information compiled by
Ian Taylor, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian
Institute of Geoscientists. Refer ASX:GBZ release 23 December 2020.
GBM Resources Annual Report 2021
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2021 ANNUAL MINERAL RESOURCES STATEMENT
White Dam Gold Project Resources
The White Dam Project is located approximately 50 kilometres west of Broken Hill within the Curnamona
Province of South Australia. This project includes an active heap leach gold operation which is produced
1,394 ounces of gold during the 2021 financial year. GBM announced that it had acquired 100% interest
in the project on 30 July 2021 after earning rights to a share of production from the project from 30 June
2020. GBM announced a JORC (2012) compliant gold resource for the White Dam project on the 10 August
2020 (CP K Allwood). Information contained within this report that relates to the White Dam resource is
based on information contained within that release.
The Company considers that any minor increases in mining and operating costs that may have occurred
through the year have been outweighed by the increase in average gold price in Australia resulting from
a favourable combination of commodity price and minor currency movements. The company believes
that, considering the outlook for commodity prices and other factors, there is a reasonable expectation
that resources at the White Dam Project will eventually support renewed mining operations.
The information in this report that relates to the White Dam Mineral Resources is based on information
compiled by Kerrin Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and
The Australasian Institute of Geoscientists. Refer ASX:GBZ release 18 August 2020.
Malmsbury Gold Project Resources
The Malmsbury Gold Project is located within the Bendigo structural zone of Victoria. There has been no
change during the year to 30 September 2021, this resource was reviewed and upgraded to comply with
the requirements of JORC 2012 during 2020 reporting period. For details, Refer ASX:GBZ release 4 July
2019 (CP K Allwood). For original release refer ASX:GBZ release 19 of January 2009 (CP K Allwood).
The Company considers that any minor increases in mining and operating costs that may have occurred
through the year have been outweighed by the increase in average gold price in Australia resulting from
a favourable combination of commodity price and minor currency movements. The company believes
that, considering the outlook for commodity prices and other factors, there is a reasonable expectation
that resources at the Malmsbury Project will eventually support mining operations.
The information in this report that relates to Malmsbury Mineral Resource is based on information compiled by Kerrin
Allwood, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of
Geoscientists.
GBM Resources Annual Report 2021
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2021 ANNUAL MINERAL RESOURCES STATEMENT
GBM Resources Limited – Mineral Resources at 30 September 2021
Table 6: GBM consolidated table of Mineral Resources at 30 September 2021. (All tonnages are dry metric tonnes, data is
rounded to (‘000 tonnes, 0.0 g/t and ‘000 ounces). Discrepancies in totals may occur due to rounding. Resources have been
reported as both open pit and underground with varying cut-off based on several factors as discussed in the corresponding
Refer 1 (which can be found with the original ASX announcement for each of the resources).
The announcements containing the Table 1 Checklists of Assessment and Reporting Criteria relating to
each of the 2012 JORC compliant Resources are:
Koala/Glen Eva and Eugenia – Refer ASX:GBZ release 4 December 2017, Mt. Coolon Gold Project
Scoping Study.
Yandan – Refer ASX:GBZ release 23 December 2020, Mt Coolon and Yandan Combined Resources
Total 852,000 oz, following completion of Yandan acquisition.
White Dam – Refer ASX:GBZ release 18 August 2020, White Dam Maiden JORC 2012 Resource of
102 koz.
Malmsbury – Refer ASX:GBZ release July 2019, Malmsbury Resource Upgraded to JORC 2012.
GBM Resources Annual Report 2021
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2021 ANNUAL MINERAL RESOURCES STATEMENT
Competent Person Statement
The information in this Annual Mineral Resources Statement is based on and fairly represents information and
supporting documentation prepared by the competent persons named in the relevant sections of this report. The
preceding statements of Mineral Resources conforms to the “Australasian Code for Reporting Exploration Results,
Mineral Resources and Ore Reserves (JORC Code) 2012 Edition”.
The information in this Annual Mineral Resources Statement as a whole that relates to Mineral Resources is based
on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy.
Mr Norris is a holder of shares in the company and is an employee of the company. Mr Norris has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Norris consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
GBM Resources Annual Report 2021
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SUSTAINABLE DEVELOPMENT
Sustainable Development
The Board of GBM has reviewed the Company’s Health and Safety and Environment Policy’s and have
reaffirmed a strong commitment to maintaining the environment and to providing a safe and healthy
work environment for all of its employees, contractors, consultants and visitors at all sites. GBM
remains a signatory to the Mineral Council of Australia’s ‘Enduring Value: The Australian Minerals
Industry Framework for Sustainable Development’ since 2008 and reconfirmed this commitment again
in 2016. Over the past 18 months the Company has grown substantially with additional Directors, the
acquisition of the White Dam Gold Mine and the Yandan Gold Project and increased staffing levels
however the revitalised Board and new management team remain committed to the principles of the
MCA Enduring Values statement. Our excellent record continues with zero LTI’s and environmental
incidents again this year – this is the tenth successive year that GBM has achieved zero harm.
Credit for this record must go to our people and it is a clear indication of the Company’s shared
aspiration to maintain stringent and high safety and environment standards. Our aim is always to
operate in a safe and environmentally responsible manner meeting industry’s highest standards.
The Board, Management and Staff of GBM support and promote the Company’s Core Values (see page
6) in all endeavours. We are committed to upholding the company key values which include developing
strong and lasting relationships with our employees, and with the communities in which we operate.
The company is committed to maintaining regular and open communication with the landholders and
stakeholders in the areas we operate.
Safety
GBM’s goal is unchanged from that which has driven us forward over many years - to create a work
environment where everyone can work safely and healthily every day, both physically and emotionally.
We encourage each individual employee to take responsibility for their own safety and the safety of
others with training support as identified. We continue to strive to create an environment where
everyone is empowered to share their concerns, insights and learnings with others, no matter where our
people are or what they do. We can all make a difference.
GBM’s strong commitment to safety ensures that all employees, including employees of contractors,
suppliers and consultants, are fully instructed, trained and assessed in their activities by providing the
facilities, equipment, tools, procedures, safety programs and training for employees to carry out their
assigned tasks in a safe and appropriate manner.
The Company and our Staff are proud to achieve the results of zero LTI’s, and Environmental Incidents.
However, we recognise that complacency is not acceptable and the Company’s will continue to strive to
maintain and improve these high Safety and Environment standards.
Protection of the environment and the health and safety of our people remain at the core of GBM’s
culture. The company manages risk through the identification, elimination, monitoring and control of
hazards, by implementing procedures accordingly, whilst reviewing performance daily. GBM seeks
continuous improvement in safety and health performance by maintaining best practice procedures and
considering evolving knowledge and technology.
This year has again been challenging for all industries across Australia as we cope with managing a highly
contagious virus that has the potential to cause serious harm within our communities and to our
workforce. GBM has in place COVID Safe plans and supports all efforts to minimise the impact of the
pandemic. GBM’s policies and procedures proved successful, and our workplaces have remained COVID-
19 free throughout the year.
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SUSTAINABLE DEVELOPMENT
GBM recognises the importance of communication and consultation with all staff and stakeholders to
foster a culture of commitment to health, safety and the environment by promoting healthy lifestyles
through appropriate awareness and training programs.
Community & Environment
GBM Resources is committed to monitoring and managing the environmental impacts of our activities to
secure a sustainable environmental future for communities surrounding our sites.
GBM continually strives to improve its environmental performance and complies with the environmental
laws and regulations as a minimum standard. GBM proactively manages and assesses environmental risks
on a site-specific basis to achieve planned environmental outcomes.
GBM informs and consults with the relevant government departments and community about its activities
and projects on a regular basis.
At the Mount Coolon Project, following results from the initial two surveys last year which confirmed that
rehabilitation completed by previous operators has been largely successful, the Company has
commenced the new Progressive Rehabilitation and Closure Planning Process introduced by the
Queensland Government. This process will include developing detailed plans for some areas which
require further remedial action, and a rehabilitation strategy is being developed to ensure this is
completed to the highest standards. The company will continue to monitor this and to undertake minor
remediation and additional rehabilitation on areas where these surveys identify it is necessary. Included
in this was fencing of historical mine voids as a further protective measure.
In addition, GBM actively rehabilitates drill site as soon as practical once drilling is completed, as shown
below.
Figure 21: Drill Location at Mt Coolon (Before Drilling, After Drilling and After Rehabilitation).
Following the acquisition of the Yandan Gold Project (which came with a number of legacy environmental
issues since operations ceased in the 1990’s), GBM immediately moved to improve the site and comply
with requirements as set by the Queensland Government. Items upgraded at Yandan include additional
monitoring and base line water bores (see below), fencing of tailings and seepage ponds to control
livestock access, parthenium weed and prickly acacia control on the mining lease along with vehicle wash
down protocols to eliminate any transfer of weeds between our landholder properties.
Since acquiring the White Dam Gold Mine in South Australia, GBM has commenced an upgrade of the site
in terms of general site clean-up and finalised the rehabilitation of drilling sites.
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SUSTAINABLE DEVELOPMENT
Figure 22: New Yandan Reference Water Bores Installed (10 m and 30 m depth).
Figure 23: Black swans on newly fenced Raw Water Dam, access gate to Dam.
Traditional Owners
GBM continues to consult with the Native Title holders (the Jangga People) about our exploration
activities. Meetings between the company and their Board occurred to introduce the company and
conduct clearances for drill pads at Yandan.
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SUSTAINABLE DEVELOPMENT
Achievements:
• No lost time injuries were sustained during the 2020/21 field season.
• Three medically treated injuries were sustained during operations in 2020/21 (one GBM staff
member and two drilling contractors’ staff members needed minor treatments).
• No environmental incidents occurred during the reporting period, except for the legacy issues taken
on because of the Yandan Gold Project acquisition.
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DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial statements for the Company
and its controlled entities (‘Group’) for the financial year ended 30 June 2021.
DIRECTORS
The names of Directors in office at any time during or since the end of the year are:
Peter Mullens – B.Sc (Geology), Fellow AUSIMM
Executive Chairman
Mr. Mullens has over 35 years’ experience in the mining industry from early exploration to development and mine
production. He has been involved with major companies having worked for Rio Tinto and Mt Isa Mines at world class
Broken Hill and Mt Isa Ag, Pb, Zn mines located in Australia.
Mr Mullens has been closely involved in companies raising in excess of USD $250 million since 2002. He is currently
a Non-Executive Director of E2 Metals (ASX-E2M) who is exploring in Argentina.
Mr Mullens has had a history of success with junior exploration companies over the last 20 years including acquiring
Aquiline Resources’ Argentinean projects and the resulting sale to Pan American Silver for CAD $ 630 million in 2009,
Chief Geologist and director for Laramide Resources, and co-founder and director of Lydian Resources (TSX-LYD)
which discovered the 4 million-ounce Amulsar Gold Deposit located in Armenia.
In the last 3 years Mr Mullens was a director of GPM Metals, a company listed on the TSX (from March 2018 to June
2019).
Peter Rohner – B.Sc (Metallurgy), Grad Dip Applied Finance & Investment,
Managing Director
Mr Rohner has over 30 years’ experience in the mining industry. In particular, he has been heavily involved in mineral
process technology development including development of the Jameson flotation cell, IsaMill fine grinding and, more
recently, significant involvement in further development of Glencore’s Albion Process (fine grind oxidative leach)
technology.
Mr Rohner is also currently a Technical Director of the Core Group, which provides metallurgical processing solutions
to its global clients. He is also a director of Stibium Mining Pty Ltd and in the last 3 years a former director of Tartana
Resources Limited (from September 2017 to August 2020) and Stibium China Holdings Ltd (from October 2018 to
August 2021).
Peter Thompson – B.Bus, CPA, FCIS
Non-Executive Director
Mr Thompson is a CPA qualified accountant and Fellow of Governance Institute of Australia. He has over 40 years’
experience in the mining industry in Australia, UK and South America in senior roles with several international mining
companies.
Mr Thompson was appointed as an independent non-executive director of Nova MSC Berhad, a Malaysian public
company on 1 June 2017.
Mr Thompson has held no other directorships of listed companies in the last 3 years.
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DIRECTORS’ REPORT
Mr Guan Huat Sunny Loh – BBA, ACS, ACIS, MBA
Non-Executive Deputy Chairman
Mr Loh’s expertise lies in corporate strategy, finance markets, investor relations and capital restructures. Mr Loh
holds a BBA from National University of Singapore and an MBA of Strategic Marketing from the University of Hull.
He is also an Associate of the Institute of Chartered Secretaries and Administrators.
Mr Loh has been appointed to the role of Deputy Chairperson. In this role he will further support the Board through
interaction with the Company’s overseas shareholder base, and via evaluation of additional funding and corporate
options to further develop and grow GBM. He has a long and supportive relationship with the Company as both a
shareholder and, previously, as a Non-Executive Director.
Mr Loh was appointed as an Executive Director of Nova MSC Berhad, a Malaysian public listed company on 1 April
2021.
Mr Loh has held no other directorships of listed companies in the last 3 years.
Brent Cook – B.Sc (Geology)
Non-Executive Director (appointed 17 September 2020)
Mr. Cook is an economic geologist with over 40 years’ experience in exploration, mining and finance. During his
career he has worked on numerous deposit types in over 60 countries. From 1999 to 2003, Mr Cook was chief analyst
at Global Resource Investments (now Sprott Global) and an advisor to three micro-cap junior exploration funds.
Since 2003 Mr Cook has also acted as an independent advisor and mining analyst, working with a number of junior
mining companies, money management groups and individual investors. From 2008 to 2016 he was owner and
author of the resource investment letter Exploration Insights. Mr Cook brings a wealth of knowledge from his
experiences within the Financial and Mining sectors.
Mr Cook has held no other directorships of listed companies in the last 3 years.
Neil Norris – B.Sc (Hons), MAIMM, MAIG
Exploration Director - Executive (resigned 17 September 2020)
Mr. Norris is a geologist with over 25 years’ experience gained in Australia and overseas. Recently he was Group
Exploration Manager for Perseverance Corporation Limited and spent over ten years with Newmont Australia
Limited holding senior positions in both mining and exploration areas. A key achievement was his development of
the geological models which contributed to the discovery of the Phoenix ore body at Fosterville. Mr. Norris was also
involved in the discovery of the world class Cadia and Ridgeway deposits. Mr. Norris has a track record in the
successful identification of mineral deposits and his experience will greatly advance GBM’s exploration efforts.
Mr Norris has held no other directorships of listed companies in the last 3 years.
COMPANY SECRETARIES
Mr Kevin Hart – B.Comm FCA
Mr Hart is a Chartered Accountant and was appointed to the position of Company Secretary on 3 February 2010.
He has over 30 years’ experience in accounting and the management and administration of public listed entities in
the mining and exploration industry.
He is currently a partner in an advisory firm which specialises in the provision of company secretarial services to ASX
listed entities.
Dan Travers – B.Sc (Hons), FCCA
(appointed 19 November 2020)
Mr Travers is a Fellow of the Association of Chartered Certified Accountants and was appointed to the position of
Joint Company Secretary on 19 November 2020. Mr Travers is an employee of Endeavour Corporate, which
specialises in the provision of company secretarial and accounting services to ASX listed entities in the mining and
exploration industry.
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DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, the following meetings of Directors (including committees) were held:
P Mullens
P Rohner
P Thompson
S Loh
B Cook
N Norris
PRINCIPAL ACTIVITIES
DIRECTORS’ MEETINGS
Number Eligible to Attend
10
10
10
10
8
2
Number Attended
10
10
10
10
8
2
The principal activity of the Group during the financial year was exploration in respect of its gold projects in Australia
and participation in the White Dam Gold Copper production joint venture. Corporate activities focussed on various
equity raisings and strategic acquisitions and disposals to further the Group’s Drummond Basin growth strategy.
OPERATING AND FINANCIAL REVIEW
Corporate
The Group is continuing to grow its shareholder base into European and North American Funds and is further
developing the Australian capital markets. During the year the Group raised $13.1 million (before costs) from various
equity raisings. The Group finalised its acquisition of Straits Gold Pty Ltd (owner of the Yandan tenements) and
exercised its option to acquire 100% of the White Dam Gold-Copper Project.
Exploration
The Group focussed on its Drummond Basin growth strategy during the financial year. The “processing halo” strategy
is directed at consolidating/finding a 2-3 million ounce gold resource for the Drummond Basin which can potentially
transit the Group into a mid-tier Australian gold company. Exploration activities focussed on the Mount Coolon and
Yandan projects which are both located within the Drummond Basin, and to date, exploration activities have
identified 13 Epithermal Gold systems in the Drummond Basin.
White Dam Production Joint Venture
In July 2020, commissioning activities commenced as circuits in the White Dam Sulphidisation-Acidification-
Recycling-Thickening (SART) Plant in South Australia were progressively completed. Production commenced during
the financial year with the Group receiving approximately $1.5 million of revenue from its share of gold sales.
COVID-19
GBM’s business continues to operate in full compliance with the COVID-19 advice from the Australian Government
and relevant health authorities.
The situation is evolving, and whilst there are currently no significant impacts, there remains some uncertainty and
risks with potential impacts on the White Dam JV Heap Leach Operation and planned exploration programs.
Operating Results
In the financial year to 30 June 2021, the Group made a net profit after income tax of $267,851 (2020: loss
$1,198,012). The profit included $1,460,014 revenue from gold sales, $2,815,279 profit from the sale of assets and
costs of $953,108 (2020: $225,562) in respect of exploration costs written off, impaired and expensed.
Financial Position
At the end of the financial year, the Group had $5,676,340 (2020: $1,382,072) in cash on hand and on deposit.
Carried forward exploration and evaluation expenditure was $19,574,428 (2020: $10,848,146).
GBM Resources Annual Report 2021
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DIRECTORS’ REPORT
EQUITY SECURITIES ON ISSUE
Ordinary fully paid shares
Options over unissued shares
Rights over unissued shares
30 June 2021
433,246,182
80,746,765
-
30 June 2020
225,038,134
25,954,152
1,128,000
Subsequent to the end of the financial year, the Company issued 3,562,500 ordinary shares for the acquisition of
exploration permits and a further 70,000,000 ordinary shares to institutional and sophisticated investors to raise $7
million (before costs).
Options over Ordinary Shares
At the date of this report, there are 80,746,140 unissued shares of the Group under option as follows:
Date Granted
Expiry Date
Exercise Price
Number of options at
30 June 2021
Number of options at
date of report
5 February 2019
31 January 2023
17 December 2019
16 December 2022
6 April 2020
6 April 2023
6 July 2020
6 July 2023
15 September 2020
14 September 2024
12 February 2021
11 February 2025
29 April 2021
11 February 2025
$0.0851
$0.05
$0.1052
$0.11
$0.21
$0.18
$0.18
1,880,000
8,000,000
16,074,152
50,591,988
300,000
2,000,000
1,900,000
1,880,000
8,000,000
16,074,152
50,591,988
300,000
2,000,000
1,900,000
1 In accordance with ASX Listing Rule 6.22.2 and following completion of the Entitlement Offer, the exercise price
for each option was reduced from 9 cents to 8.5 cents.
2 In accordance with ASX Listing Rule 6.22.2 and following completion of the Entitlement Offer, the exercise price
for each option was reduced from 11 cents to 10.5 cents.
During the year, 55,345,867 options were issued (comprising of 51,145,867 options exercisable at $0.11 and expiring
6 July 2023; 300,000 options exercisable at $0.21 and expiring 14 September 2024 and 3,900,000 options exercisable
at $0.18 expiring 11 February 2025) and 553,254 options, with an exercise price of $0.11 and expiring 6 July 2023,
were exercised. No options were cancelled during the financial year.
Subsequent to 30 June 2021 and up to the date of this report, 625 options with an exercise price of $0.11 were
exercised. No options have been issued or cancelled since the end of the financial year.
Performance Rights over Ordinary Shares
During the year ended 30 June 2021, the Company granted 1,250,000 performance rights under a consultancy
agreement with the rights vesting on 30 September 2020 and expiring on 30 September 2022. During the year,
2,378,000 rights were exercised and converted into ordinary shares. Since 30 June 2021 and up to the date of this
report, 595,654 performance rights have been issued pursuant to the terms and conditions of the Company’s
Performance Rights and Option Plan. No performance rights have been cancelled or exercised since the end of the
financial year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
Other than as stated in the Operational and Financial Review section above, there were no other significant changes
in the state of affairs of the Group during the financial year, not otherwise disclosed in this Directors’ Report or in
the Review of Operations.
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DIRECTORS’ REPORT
EVENTS SUBSEQUENT TO BALANCE DATE
Other than as stated below, there has not arisen in the interval between the end of the financial year and the date
of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors
of the Company to affect substantially the operations of the Group, the results of those operations or the state of
affairs of the Group in subsequent financial years.
On 6 July 2021 the Company issued 2,000,000 ordinary shares to complete its acquisition of EPM27554 from
Yacimiento Pty Ltd.
In July 2021, a binding term sheet was executed with Native Mineral Resources for the acquisition of EPM17850
for a consideration comprising a cash payment of $35,000 and $200,000 in GBM shares (1,562,500 ordinary
shares were issued on 20 August 2021). The Letter of Intent for the sale of the Mt Morgan Project to Smartset
Services Inc was amended to include this new tenement as part of the Mt Morgan sale.
In July 2021, the Company executed a binding Tenement Sale Agreement for the purchase of a 100% interest
in the Twin Hills Project for a cash consideration of approximately $2 million, along with assuming the financial
assurance in respect of the environmental authorities for the tenements (currently for an amount of
approximately $1.48 million).
In June 2021, the Group exercised its option to acquire 100% of the White Dam Gold Copper Project. The
payment of $500,000 exercise price, replacement of $1.94 million environmental bonds and the transfer of the
relevant Round Oak Minerals Pty Ltd subsidiaries (which owned the White Dam assets) was settled in July 2021.
In September 2021, the Group signed a non-binding proposal with Consolidated Uranium Inc (a Canadian
company listed on TSXV: CUR) for the sale of its Brightlands Milo tenement EPM 14416. Subject to satisfactory
due diligence, CUR will offer consideration comprising a cash payment of CAD $500,000 plus a minimum of
CAD $1.5 million of CUR’s shares (or 750,000 CUR shares if the share price is above CAD $2.00 per share).
On 22 September 2021, 70,000,000 ordinary shares in the Company were issued to institutional and
sophisticated investors to raise a total of $7,000,000 (before costs).
Since the end of the financial year, 73,563,125 shares (listed above) and 595,654 performance rights were issued.
Subsequent to year end, 625 options were exercised. Refer to Directors’ Report – Equity Securities on Issue for further
detail.
The impact of the coronavirus (COVID-19) pandemic is ongoing. The situation is dependent on measures imposed
by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine,
travel restrictions and any economic stimulus that may be provided. It is not practicable to estimate the potential
impact, positive or negative, after the reporting date.
DIVIDENDS
No dividends were paid during the year and the Directors recommend that no dividends be paid or declared for the
financial year ended 30 June 2021.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Comments on expected results of the operations of the Company are included in this report under the Review of
Operations.
Disclosure of other information regarding likely developments in the operations of the Company in future financial
years and the expected results of those operations is likely to result in unreasonable prejudice to the Company.
Accordingly, this information has not been disclosed in this report.
ENVIRONMENTAL ISSUES
The Group holds participating interests in a number of exploration tenements. The various authorities granting such
tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions
given to it under those terms of the tenement.
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DIRECTORS’ REPORT
There have been no known breaches of the tenement conditions, and no such breaches have been notified by any
government agencies during the year ended 30 June 2021.
REMUNERATION REPORT (AUDITED)
The remuneration report is set out in the following manner:
Policies used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share based compensation
Remuneration Policy
The Board of Directors is responsible for remuneration policies and the packages applicable to the Directors of the
Company. Whilst the broad remuneration policy is to ensure that packages offered properly reflect a person’s duties
and responsibilities and that remuneration is competitive and attracts, retains, and motivates people of the highest
quality, the Board has consciously been focused on conserving the Company’s funds to ensure the maximum amount
is spent on exploration, and this is reflected in the modest level of Director fees.
The policy of the Group is to offer competitive salary packages which provide incentive to Directors and executives
and are designed to reward and motivate. Total remuneration for all Non-Executive Directors was voted on by
shareholders, whereby it is not to exceed in aggregate $200,000 per annum. Non-Executive Directors receive fees
agreed on an annual basis by the Board.
At the date of this report, the Company had not entered into any remuneration packages with Directors or senior
executives which include specific performance-based components. Long term and short term incentives, may be
awarded subject to Board discretion.
Details of Remuneration for Directors and Executive Officers
The remuneration of each Director of the Company and relevant executive officers (together known as Key
Management Personnel or KMP) are set out in the table below.
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced Directors
and senior executives. The Board of Directors obtains independent advice when appropriate in reviewing
remuneration packages.
During the year, there were no senior executives who were employed by the Company for whom disclosure is
required.
2021
Short
term
Post Employment
Share Based
Payments
Salary
and fees
$
Super -
annuation
$
Termination
benefits
$
Options /
shares
$
Total
$
164,384
228,310
87,325
48,000
37,973
22,330
588,322
15,616
21,690
3,990
-
-
665
41,961
-
-
104,000
-
-
80,000
184,000
-
-
-
-
35,355
-
35,355
180,000
250,000
195,315
48,000
73,328
102,995
849,638
Directors
P Mullens
P Rohner
P Thompson
S Loh
B Cook1
N Norris2
Total Directors
1 Appointed 17 September 2020
2 Resigned 17 September 2020
GBM Resources Annual Report 2021
Performance
Based Payments
as % of
remuneration
%
-
-
-
-
-
-
-
P a g e | 59
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
2020
Short term
Post
Employment
Share Based
Payments
Salary and
fees
$
Other
$
Super -
annuation
$
Options /
shares
$
Directors
P Mullens
P Rohner
P Thompson1, 2
S Loh
N Norris1, 2
Total Directors
50,400
50,400
112,462
48,000
108,187
369,449
-
-
-
-
8,176
8,176
4,788
4,788
10,684
-
10,278
30,538
Total
$
163,546
163,546
123,146
48,000
126,641
108,358
108,358
-
-
-
216,716
624,879
Performance
Based Payments
as % of
remuneration
%
-
-
-
-
-
-
1 During the year and following shareholder approval, 5,291,467 ordinary shares were issued to P Thompson and
4,447,633 ordinary shares were issued to N Norris in lieu of accrued and unpaid salaries of $158,744 and $133,429
respectively. The table above does not include the share based payment as the accrued salaries were disclosed as
remuneration in the year in which they were accrued.
2 Post employment entitlements were paid in July 2020. Refer to the service agreements for further detail.
See disclosure relating to service agreements for further details of remuneration of executive directors.
Options Provided as Remuneration
During the year ended 30 June 2021 and following shareholder approval, 300,000 unlisted options over unissued
shares of the Company were issued to Director Mr Brent Cook.
No shares were issued to KMP of the Company in respect of the exercise of options previously granted as
remuneration.
Key management personnel have the following interests in unlisted options over unissued shares of the Company.
Name
P Mullens
P Rohner
B Cook
Balance at
beginning of
the year
4,000,000
4,000,000
Received during
the year as
remuneration
-
-
-
300,000
Other changes
during the year
Balance at the
end of the year
-
-
-
4,000,000
4,000,000
300,000
Vested and
exercisable at
the end of the
4,000,000
4,000,000
300,000
Further details of the options granted are disclosed in Note 20 to the financial report.
Service Agreements
Remuneration and other terms of employment for the Executive Directors are set out in Service Agreements:
Peter Mullens – Executive Chairman
Mr Mullens received a base salary inclusive of statutory superannuation of $91,980 per annum from the
commencement of the agreement until 30 June 2020, at which time the agreement expired and was renewed. On
1 July 2020, Mr Mullens entered into a 3 year service agreement with the Company with a base salary inclusive of
statutory superannuation of $180,000 per annum which is subject to annual review.
The Service agreement contains certain provisions typically found in contracts of this nature. There is no specific
cash bonus or other performance based compensation contemplated in the agreement. Long term and short term
incentives, may be awarded subject to Board discretion. The Company may terminate the Service Agreement
without cause by providing six months written notice to the individual or by making a payment in lieu of notice.
GBM Resources Annual Report 2021
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The Service Agreement may be terminated immediately in the case of serious misconduct.
Peter Rohner – Managing Director
Mr Rohner received a base salary inclusive of statutory superannuation of $91,980 per annum from the
commencement of the agreement until 30 June 2020, at which time the agreement expired and was renewed. On
1 July Mr Rohner entered into a 3 year service agreement with the Company with a base salary inclusive of statutory
superannuation of $250,000 per annum which is subject to annual review.
The Service agreement contains certain provisions typically found in contracts of this nature. There is no specific
cash bonus or other performance based compensation contemplated in the agreement. Long term and short term
incentives, may be awarded subject to Board discretion. The Company may terminate the Service Agreement
without cause by providing six months written notice to the individual or by making a payment in lieu of notice. The
Service Agreement may be terminated immediately in the case of serious misconduct.
Peter Thompson – Non-Executive Director
As part of the Board restructure in November 2019, Mr Thompson stepped down from his executive roles and
entered into an amended executive director service agreement effective from 25 November 2019 to 31 July 2020.
Under the terms of the amended agreement, Mr Thompson received a base salary inclusive of statutory
superannuation of $91,980 per annum with no accrued leave entitlements and was entitled to a redundancy
payment of $104,000 which was paid in July 2020. The notice period is one month.
The Company entered into a non-executive director employment contract with Mr Thompson commencing 1
January 2021. Mr Thompson receives non-executive director fees of $84,000 per annum inclusive of statutory
superannuation.
Neil Norris - Exploration Director
As part of the Board restructure in November 2019, Mr Norris stepped down from his executive role and entered
into an amended service agreement effective from 25 November 2019 to 31 July 2020. Under the terms of the
amended agreement, Mr Norris received a base salary inclusive of statutory superannuation of $91,980 per annum
with no accrued leave entitlements and was entitled to a redundancy payment of $80,000 which was paid in July
2020.
Share Based Compensation
At the date of this report the Company has not entered into any agreements with KMP which include performance
based components. Options issued to Directors are approved by shareholders and were not the subject of an
agreement or issued subject to the satisfaction of a performance condition.
Options may be issued to provide an appropriate level of incentive, being a cost effective means given the
Company’s size and stage of development.
GBM Resources Annual Report 2021
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
DIRECTORS’ INTERESTS
The relevant interest of each Director in the ordinary shares and options issued by the Company as notified by the Directors to
the Australian Securities Exchange at the date of this report, is set out in the table below.
Ordinary shares
Director
P Thompson
S Loh
N Norris 1
P Mullens
P Rohner
B Cook
Ordinary shares
held at 1 July 2020
Received during
the year as
remuneration
Movement during
the financial year
Ordinary Shares
held at 30 June
2021
Ordinary shares
held at the date
of the Directors’
Report
7,711,467
6,081,115
6,861,800
7,575,758
6,594,263
-
-
-
-
-
-
-
(700,000)
7,011,467
7,011,467
-
6,081,115
6,081,115
(6,861,800)
-
-
400,000
7,975,758
7,975,758
1,241,678
7,835,941
7,835,941
-
-
-
1 Movement during the year relates to the holding at cessation of directorship.
Options
Director
P Thompson
S Loh
N Norris
P Mullens
P Rohner
B Cook
Options held at 1
July 2020
Received during
the year as
remuneration
Movement during
the financial year
Options held at
30 June 2021
Options held at
the date of the
Directors’ Report
-
-
-
4,000,000
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
4,200,000
4,200,000
456,144
4,456,144
4,456,144
-
300,000
-
300,000
300,000
LOANS TO DIRECTORS AND EXECUTIVES
There were no loans entered into with Directors or executives during the financial year ended 30 June 2021.
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
During the year, the Company incurred costs of $20,060 (2020: $126,219) with Core Metallurgy Pty Ltd an entity
associated with Mr Peter Rohner, for project consulting fees relating to White Dam. At 30 June 2021, a balance of
$528 (2020: $13,628) was owing to Core Metallurgy Pty Ltd.
Office rent of $12,000 (2020: $10,000) was incurred with Ironbark Pacific Pty Ltd, an entity associated with Mr
Peter Mullens. No consulting fees were incurred this financial year (2020: $11,430). At 30 June 2021, there was no
amount owing to Ironbark Pacific Pty Ltd (2020: $10,827).
End of Remuneration Report
GBM Resources Annual Report 2021
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DIRECTORS’ REPORT
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
During the year, the Company paid an insurance premium to insure certain officers of the Company. The officers of
the Company covered by the insurance policy include the Directors named in this report.
The Directors and Officers Liability insurance provides cover against all costs and expenses that may be incurred in
defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought against
the officers in their capacity as officers of the Company. The insurance policy does not contain details of the
premium paid in respect of individual officers of the Company. Disclosure of the nature of the liability cover and
the amount of the premium is subject to a confidentiality clause under the insurance policy.
Other than the above, the Group has not, during or since the end of the financial year, given an indemnity or entered
an agreement to indemnify, or paid or agreed to pay insurance premiums for the Directors, officers or auditors of
the Company or the controlled 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.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under
section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
No non-audit services were provided by the external auditors in respect of the current or preceding financial year.
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 on the following page.
Signed in accordance with a resolution of the Board of Directors.
Dated this 30th day of September 2021
PETER MULLENS
Executive Chairman
GBM Resources Annual Report 2021
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AUDITOR’S INDEPENDENCE DECLARATION
GBM Resources Annual Report 2021
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021
Share of joint venture income
Share of joint venture expenses
Net income from joint venture
Interest income
Gain on sale of assets
Other revenue
Employee expenses
Consulting and professional services
Interest and finance costs
Exploration expenditure expensed and written off
Depreciation and amortisation expenses
Fair value (loss)/gain on investments
Administration and other expenses
Profit/(loss) before income tax
Income tax benefit
Profit/(loss) for the year
Other comprehensive income
Note
31
4
4
5
5
5
12
6
Consolidated
2021
$
1,460,014
(1,020,842)
439,172
9,407
2,815,279
314,874
(783,727)
(473,597)
(34,096)
(953,108)
(130,562)
(363,615)
(572,176)
2020
$
-
-
-
801
-
104,192
(620,596)
(391,973)
(73,427)
(225,562)
(7,932)
366,061
(349,576)
267,851
(1,198,012)
-
-
267,851
(1,198,012)
-
-
Total comprehensive income/(loss) for the year
267,851
(1,198,012)
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
7
7
Cents
0.7
0.7
Cents
(0.7)
(0.7)
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2021
P a g e | 65
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT
30 JUNE 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Asset held-for-sale
Inventories
Total Current Assets
Non-current assets
Trade and other receivables
Exploration and evaluation expenditure
Property, plant and equipment
Capitalised option costs
Financial assets
Consolidated
2021
$
5,676,340
1,030,582
22,913
241,654
673,654
2020
$
1,382,072
32,240
-
-
-
7,645,143
1,414,312
5,932,649
19,574,428
1,380,604
45,000
3,516,640
808,408
10,848,146
697,524
-
794,833
Note
23
8
13e
9
8
10
11
13b
12
Total Non-current Assets
30,449,321
13,148,911
TOTAL ASSETS
Current liabilities
Borrowings
Trade and other payables
Total Current Liabilities
Non-current liabilities
Borrowings
Provision for rehabilitation
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
Equity
Issued capital
Accumulated losses
Share based payment reserve
TOTAL EQUITY
14
15
14
16
17
19
19
38,094,464
14,563,223
20,304
2,394,223
705,833
902,790
2,414,527
1,608,623
43,415
6,296,101
6,339,516
-
754,258
754,258
8,754,043
2,362,881
29,340,421
12,200,342
53,575,033
(24,881,473)
646,861
36,986,753
(25,149,324)
362,913
29,340,421
12,200,342
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2021
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
Note
Issued capital
$
Option reserve
$
Accumulated
losses
$
Share based
payment reserve
$
17
19
Balance at 1 July 2019
Shares issued (net of costs)
Loss attributable to
members of the Company
Other comprehensive income
Total comprehensive loss for
the year
Performance rights issued
Options expired
Options issued as remuneration
32,915,823
4,070,930
610,175
-
(24,561,487)
-
-
-
-
-
-
-
-
-
(1,198,012)
-
-
-
(610,175)
-
(1,198,012)
-
610,175
-
78,467
-
-
-
-
67,720
-
216,726
Total
$
9,042,978
4,070,930
(1,198,012)
-
(1,198,012)
67,720
-
216,726
Balance at 30 June 2020
36,986,753
17
19
Balance at 1 July 2020
Shares issued (net of costs)
Profit attributable to
members of the Company
Other comprehensive income
Total comprehensive income
for the year
Exercise of convertible notes
Exercise of options/rights
Vesting of options/rights
Balance at 30 June 2021
36,986,753
15,575,384
-
-
-
700,000
312,896
-
-
-
-
-
-
-
-
-
-
(25,149,324)
362,913
12,200,342
(25,149,324)
-
362,913
-
12,200,342
15,575,384
267,851
-
267,851
-
-
-
-
-
-
-
(252,038)
535,986
267,851
-
267,851
700,000
60,858
535,986
29,340,421
53,575,033
The accompanying notes form part of these financial statements
(24,881,473)
-
646,861
GBM Resources Annual Report 2021
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
Cash flows from operating activities
Cash receipts from joint venture gold sales
Payments to suppliers and employees
Recognition of share of joint venture operating
cash assets
Interest received
Other income
Government assistance
JV management fee income
Interest and other costs of finance paid
1,460,014
(3,044,332)
126,207
9,407
-
50,000
12,072
(39,929)
2020
$
-
(928,092)
-
732
5,832
50,000
48,390
(67,594)
Net cash flows used in operating activities
23(c)
(1,426,561)
(890,732)
Cash flows from investing activities
Payments for bonds and security deposits
Funds provided by JV partner under Farm-in
agreement
Payments for exploration and evaluation,
including JV Farm-in spend
Payments for acquisition of tenements
Proceeds on sale of investments
Payments to acquire property, plant and
equipment
(44,592)
(6,318)
100,600
405,513
(6,462,120)
(45,000)
591,618
(1,269,939)
-
-
(792,539)
(566,163)
Net cash flows used in investing activities
(6,652,033)
(1,436,907)
Cash flows from financing activities
Proceeds from the issue of shares
Share issue costs
Proceeds from borrowings
Repayment of borrowings
Proceeds from issue of convertible notes
13,062,663
(748,668)
66,895
(3,176)
-
3,172,259
(145,088)
-
-
350,000
Net cash flows provided by financing activities
12,377,714
3,377,171
Net increase in cash held
Cash and cash equivalents at the beginning of the
financial year
Effect of foreign exchange on cash and cash
equivalents
Cash and cash equivalents at the end of the
financial year
4,299,120
1,049,532
1,382,072
332,540
(4,852)
-
23(a)
5,676,340
1,382,072
The accompanying notes form part of these financial statements
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
GBM Resources Limited (‘the Company’) is a listed public company domiciled in Australia. The consolidated
financial report of the Company for the financial year ended 30 June 2021 comprises the Company and its
subsidiaries (together referred to as ‘the Group’).
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, and Australian Accounting Standards and Interpretations. The
financial report has also been prepared on an historical cost basis, unless otherwise stated. The financial report
is presented in Australian dollars. For the purpose of preparation of the consolidated financial statements the
Company is a for-profit entity.
Going Concern Basis for the Preparation of Financial Statements
The financial statements have been prepared on the 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 at 30 June 2021 the Group has cash assets of $5,676,340 and total current liabilities at that date amounting
to $2,414,527. The profit for the 2021 financial year was $267,851 and operating cash outflows were
$1,426,561.
Subsequent to the end of the financial year the Company raised a further $7 million (before costs) from a share
placement with sophisticated and institutional investors.
The Directors will continue to manage the Group’s activities with due regard to current and future funding
requirements. The directors reasonably expect that the Company will be able to raise sufficient capital to fund
the Group’s exploration and working capital requirements if required, and that the Group will be able to settle
debts as and when they become due and payable.
Adoption of New and Revised Standards - Changes in accounting policies on initial application of accounting
standards
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the
financial performance or position of the Group during the financial year.
The following Accounting Standards and Interpretations are most relevant to the Group:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The Group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework
contains new definition and recognition criteria as well as new guidance on measurement that affects several
Accounting Standards, but it has not had a material impact on the Group's financial statements.
New standards and interpretations not yet adopted
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted by the Group for the reporting year ended 30 June 2021. There are no material new or
amended Accounting Standards which will materially affect the Group.
GBM Resources Annual Report 2021
P a g e | 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
b) Statement of Compliance
The financial report was authorised for issue on 30 September 2021.
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
c) Principles of Consolidation
The consolidated financial statements comprise the financial statements of GBM Resources Limited and its
subsidiaries as at 30 June each year (the Group). The financial statements for the subsidiaries are prepared for
the same reporting period as the parent company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries
are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated
from the date on which the control is transferred out of the Group.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The purchase
method of accounting involves allocating the cost of the business combination to the fair value of the assets
acquired and the liabilities and contingent liabilities assumed at the date of acquisition. Accordingly, the
consolidated financial statements include the results of subsidiaries for the period from their acquisition. Non-
controlling interests represent the portion of profit and loss and net assets in subsidiaries not held by the Group
and are presented separately in the consolidated statement of profit or loss and other comprehensive income
and within equity in the consolidated statement of financial position.
d) Revenue Recognition
Revenue is recognised to the extent that control has passed and it is probable that the economic benefits will
flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must
also be met before revenue is recognised:
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
Management Fees
Revenue from farm-in management fees is recognised at the time the fees are invoiced for services rendered.
Gold Sales
With the sale of gold bullion, control is determined to occur when physical bullion from a contracted sale is
transferred from the Company’s account into the account of the buyer. Revenue from gold sales is recognised
at this point.
e)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of 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 profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses
can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that
it is probable that the temporary difference will reverse in the foreseeable future and taxable profit
will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are re-assessed at each balance date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred
income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable
entity and the same taxation authority.
f) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the consolidated statement of financial position.
g) Financing Costs
Net financing costs comprise interest payable on borrowings calculated using the effective interest method.
Borrowing costs are expensed as incurred and included in net financing costs, where there is no qualifying
asset.
h) Leases
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate.
Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that
depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of
a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in
the period in which they are incurred.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a
rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss
if the carrying amount of the right-of-use asset is fully written down.
Right-of-use asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and,
except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling
and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of
the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use
assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
i) Cash and Cash Equivalents
Cash and short-term deposits in the consolidated statement of financial position comprise cash at bank and
in hand. Cash equivalents are short-term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
j)
Trade and Other Receivables
Trade receivables, which generally have 30 to 90 day terms, are recognised at fair value and then are
subsequently measured at amortised cost and carried at original invoice amount less an allowance for any
expected credit loss. The Group makes use of a simplified approach in accounting for trade and other
receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These
are the expected shortfalls in contractual cash flows, considering the potential for default at any point during
the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators
and forward-looking information to calculate the expected credit losses using a provision matrix. The Group
assess impairment of trade receivables on a collective basis as they possess shared credit risk characteristics,
they have been grouped based on the days past due. Bad debts are written off to the allowance when the
debt is considered uncollectible.
k)
Inventories
Inventories are valued at the lower of cost or net realisable value. Cost is determined on a weighted average
basis and includes all costs incurred, based on a normal production capacity, in bringing each product to its
present location and condition. Cost of inventories comprises direct labour, materials, contractor expenses,
depreciation and an allocation of overhead. Net realisable value is the estimated future sales price of the
product produced based on the estimated gold and copper price less the estimated costs of completion and
the estimated costs necessary to make the sale.
l) Plant and Equipment
Plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the
parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
GBM Resources Annual Report 2021
P a g e | 72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Property and improvements
Office furniture and equipment
Plant and equipment
Motor Vehicles
10 – 40 years
2.5 - 20 years
0 - 40 years
8 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. For an asset that does not generate largely independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the asset belongs, unless the asset's value in use can be
estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
(ii) De-recognition and Disposal
An item of property, plant and equipment is de-recognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is de-
recognised.
m) Financial Instruments
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is
no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or
(ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in
profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
GBM Resources Annual Report 2021
P a g e | 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair value hierarchy
All assets and liabilities measured at fair value are classified using a three level hierarchy based on the lowest
level of input that is significant to the entire fair value measurement, being Level 1: Quoted prices (unadjusted)
in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is
required to determine what is significant to fair value and therefore which category the asset or liability is
placed in can be subjective.
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an
orderly unforced transaction between independent, knowledgeable and willing market participants at the
measurement date and is based on the fair value hierarchy
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 Group's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable
and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12 month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised
is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life
of the instrument discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is
recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or
loss.
n) Exploration and Evaluation Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
the rights to tenure of the area of interest are current; and
(i)
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation
and amortised of assets used in exploration and evaluation activities. General and administrative costs are only
included in the measurement of exploration and evaluation costs where they are related directly to operational
activities in a particular area of interest.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable
amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated
being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss
(if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest, the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to
development.
o)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the asset's value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part
of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at re-valued amount (in which
case the impairment loss is treated as a re-valuation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in profit or loss unless the asset is carried at re-valued amount, in which case the reversal is treated as a re-
valuation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the
asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
p) Trade and Other Payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group
becomes obliged to make future payments in respect of the purchase of these goods and services. Trade and
other payables are presented as current liabilities unless payment is not due within 12 months.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
q)
Interest Bearing Liabilities
All loans and borrowings are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After
loans and borrowings are
subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised
in profit or loss when the liabilities are de-recognised.
initial recognition,
interest-bearing
Where borrowings contain a conversion option and the number of shares to be issued is fixed the amount of
borrowing is initially recognised at fair value of a similar liability that does not have an equity conversion
option. The equity conversion feature is the residual. Subsequently the borrowing is measured at amortised
cost and the equity portion is not remeasured.
r)
Employee Benefits
(i) Wages, Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and non-accumulating sick
leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect
of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when
the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
are measured at the rates paid or payable.
(ii) Long Service Leave
The liability for long service leave is recognised in the provision for employee benefits and measured as 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 period of service. Expected future payments are
discounted using market yields at the reporting date on national government bonds with terms to maturity
and currencies that match, as closely as possible, the estimated future cash outflows.
s) Share Based Payments
Equity Settled Transactions:
The Group provides benefits to employees (including senior executives) of the Group in the form of share
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value of options is determined by using
a Black and Scholes model. Share rights are valued at the underlying market value of the ordinary shares over
which they are granted.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of GBM Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number
of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions is included in the determination of fair
value at grant date. The charge or credit to the consolidated statement of profit or loss and other
comprehensive income for a period represents the movement in cumulative expense recognised as at the
beginning and end of that period.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition. If the terms of an equity-settled award are modified, as a minimum an
expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any
modification that increases the total fair value of the share based payment arrangement, or is otherwise
beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, the cumulative expense recognised in respect of that award is
transferred from its respective reserve to accumulated losses. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award, as described in the previous
paragraph.
t) Share 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.
u) Earnings Per Share
Basic earnings/loss per share ("EPS") is calculated by dividing the net profit or loss attributable to members
of the Company for the reporting period, after excluding any costs of servicing equity (other than ordinary
shares and converting preference shares classified as ordinary shares for EPS calculation purposes), by the
weighted average number of ordinary shares of the Company, adjusted for any bonus element.
Diluted EPS is calculated by dividing the basic EPS earnings, adjusted by the after tax effect of financing costs
associated with dilutive potential ordinary shares and the effect on revenues and expenses of conversion, by
the weighted average number of ordinary shares and potential dilutive ordinary shares, adjusted for any
bonus element.
v) Business Combinations
The acquisition method of accounting is used to account for all business combinations, including business
combinations involving entities or business under common control, regardless of whether equity instruments
or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the
fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any contingent consideration arrangement and the
fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as
incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business
combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On
an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s
share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been
reviewed, the difference is recognised directly in profit or loss as a bargain purchase.
Where a business combination is achieved in stages, the Group’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date (i.e. the date when the Group attains control) and
the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree
prior to the acquisition date that have previously been recognised in other comprehensive income are
reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting is
incomplete. These provisional amounts are adjusted during the measurement period (see above), or
additional assets or liabilities recognised, to reflect new information obtained about facts and circumstances
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that
date.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is
remeasured at subsequent reporting dates in accordance with AASB 9, or AASB 137 ‘Provisions, Contingent
Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or loss being recognised in
profit or loss.
w) Provision for Restoration and Rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of
development activities undertaken, it is probable that an outflow of economic benefits will be required to
settle the obligation, and the amount of the provision can be measured reliably. The estimated future
obligations include the costs of abandoning sites, removing facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required
to settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and
any changes in the estimate are reflected in the present value of the restoration provision at each balance
date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related
asset and amortised on the same basis as the related asset, unless the present obligation arises from the
production of inventory in the period, in which case the amount is included in the cost of production for the
period. Changes in the estimate of the provision for restoration and rehabilitation are treated in the same
manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance
cost rather than being capitalised into the cost of the related asset.
x) Parent Entity Financial Information
The financial information for the parent entity, GBM Resources Limited, disclosed in Note 31 has been
prepared on the same basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent
entity’s financial statements. Dividends received from associates are recognised in the parent entity’s profit
or loss, rather than being deducted from the carrying amount of these investments.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
y) Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the Group and that are believed
to be reasonable under the circumstances.
Accounting for capitalised mineral exploration and evaluation expenditure
The Group’s accounting policy is stated at 1(n). A regular review is undertaken of each area of interest to
determine the reasonableness of continuing to carry forward costs in relation to that area of interest.
Share based payments
The Group uses independent advisors to assist in valuing share based payments.
Estimates and assumptions used in these valuations are disclosed in the notes in periods when these share
based payments are made.
Rehabilitation Provision
A provision has been made for the anticipated costs for future rehabilitation of land explored. The Group's
mining and exploration activities are subject to various laws and regulations governing the protection of the
environment. The consolidated entity recognises management's best estimate for assets retirement
obligations and site rehabilitations in the period in which they are incurred. Actual costs incurred in the future
periods could differ materially from the estimates. Additionally, future changes to environmental laws and
regulations, life of mine estimates and discount rates could affect the carrying amount of this provision.
z) Government assistance and grants
Assistance received from the government by way of grant or other forms of assistance designed to provide an
economic benefit to the Group, is presented in the statement of financial position as deferred income, in
instances where the grant is related to assets. In all other cases, grant money is presented in the profit and loss
as other income. Grants are recognised when there is reasonable assurance that conditions will be complied
with and the grant will be received.
aa) Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group considers the
White Dam Production Joint Venture as a joint operation and has recognised its share of jointly held assets,
liabilities, revenue and expenses. These have been incorporated in the financial statements under the
appropriate classifications. Details of these interests are shown in Note 31.
2. FINANCIAL RISK MANAGEMENT
The Group has exposure to a variety of risks arising from its use of financial instruments. This note presents
information about the Group’s exposure to the specific risks, and the policies and processes for measuring and
managing those risks. Further quantitative disclosures are included throughout this financial report. The Board of
Directors has overall responsibility for the risk management framework.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from transactions with customers and investments.
Trade and other receivables
The current nature of the business activity does not result in trading receivables. The receivables that the
Group recognises through its normal course of business are short term in nature and the most significant (in
quantity) is the receivable from the Australian Taxation Office and interest receivable. The risk of non recovery
of receivables from this source is considered to be negligible.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
Cash deposits
The Group’s primary banker is Commonwealth Bank. At balance date all operating accounts and funds held on
deposit are with this bank. The Directors believe any risk associated with the use of only one bank is mitigated
by its size and reputation. Except for this matter the Group currently has no significant concentrations of credit
risk.
(b) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Group’s reputation.
The Group manages its liquidity risk by monitoring its cash reserves and forecast spending. Management is
cognisant of the future demands for liquid finance resources to finance the Group’s current and future
operations, and consideration is given to the liquid assets available to the Group before commitment is made
to future expenditure or investment.
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while
optimising any return.
Currency risk
The Group is not exposed to any currency risk other than the respective functional currencies of each Company
within the Group, the Australian dollar (AUD).
Interest rate risk
The Group is not exposed to significant interest rate risk and no financial instruments are employed to mitigate
risk (Note 20 – Financial Instruments).
Equity price risk
The Group was not exposed to any material equity price risk during the financial year (Note 21 – Financial
Instruments).
(d) Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Board of Directors monitors capital expenditure and
cash flows as mentioned in (b).
3. SEGMENT REPORTING
Operating segments are identified and segment information disclosed, where appropriate, on the basis of
internal reports reviewed by the Company’s Board of Directors, being the Group’s Chief Operating Decision
Maker, as defined by AASB 8.
The Group has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors in assessing performance and determining the allocation of resources. Reportable
segments disclosed are based on aggregating operating segments, where the segments have similar
characteristics. The Group has two operating segments, these being is mineral exploration and resource
development within Australia and production of minerals in Australia.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
3. SEGMENT REPORTING (CONTINUED)
The following tables present revenue and profit information and certain asset and liability information
regarding operating segments for the financial year. In the comparative period, the Group operated in the one
segment of mineral exploration.
30 June 2021
Interest income
Other income
Segment income
Segment expenses
Segment profit/(loss)
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Mineral
Exploration
$
9,407
3,130,153
3,139,560
(3,310,881)
(171,321)
6,612,595
30,449,321
(2,005,292)
(6,339,516)
28,717,108
Mineral
Production
$
-
1,460,014
1,460,014
(1,020,842)
439,172
1,032,548
-
(409,225)
-
623,323
Consolidated
$
9,407
4,590,167
4,599,574
(4,331,723)
267,851
7,645,143
30,449,321
(2,414,517)
(6,339,516)
29,340,421
Note
Consolidated
2021
$
4. OTHER REVENUE AND OTHER GAINS/LOSSES
Other Revenue
Gain on disposal of exploration assets 1
Gain on disposal of investments
Joint venture management fee
Government grant income
Other income
2,813,622
1,657
75,924
234,000
4,950
2020
$
-
-
48,390
50,000
5,802
3,130,153
104,192
1 Gain on disposal of a 50% interest on the Malmsbury Gold Project (refer Note 13d)).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
5. EXPENSES
Employee expenses
Gross employee benefit expense:
Wages and salaries1
Directors’ fees
Superannuation expense1
Share based remuneration
Other employee costs
Less amount allocated to exploration
Net consolidated statement of profit or loss and
other comprehensive income employee benefit
expense
Depreciation expense:
Property and improvements
Office equipment and software
Site equipment
Motor vehicles
Mine properties
Exploration costs:
Unallocated exploration costs expensed
Exploration costs written off
11
11
11
11
11
10
1,273,571
504,218
159,272
351,668
46,225
2,334,954
(1,551,227)
475,599
148,800
53,930
275,160
22,740
976,229
(355,633)
783,727
620,596
2,645
32,620
30,523
2,978
61,796
130,562
953,108
-
953,108
2,644
1,604
2,880
804
-
7,932
106,540
119,022
225,562
Consulting and professional services expenditure includes share-based payments of $57,103 (2020: $67,720).
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
6.
INCOME TAX
Income tax recognised in profit or loss
a)
The prima facie tax benefit on the operating result is
reconciled to the income tax provided in the financial
statements as follows:
Accounting profit/(loss) before income tax from
continuing operations
Income tax expense/(benefit) at 26% (2020: 27.5%)
Non-deductible share based payments
Non-assessable income
Capital raising costs claimed
Exploration costs written off and impaired
Unrealised movement in fair value of financial asset
Unused tax losses and temporary differences not
brought to account
Income tax (benefit) reported in the consolidated
statement of profit or loss and other comprehensive
income
Consolidated
2021
$
2020
$
267,851
(1,198,012)
69,641
106,280
(13,000)
(63,276)
-
94,540
(329,453)
94,292
-
(34,724)
32,731
(100,667)
(194,185)
337,821
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 26% (2020: 27.5%) payable by
Australian corporate entities on taxable profits under Australian tax law.
b) Unrecognised deferred tax assets and liabilities
The following deferred tax assets and liabilities have not
been brought to account:
Unrecognised deferred tax
assets relate to:
Losses available for offset
against future taxable income
Capital raising costs
Accrued expenses and leave liabilities
Rehabilitation provisions
Unrecognised deferred tax liabilities relate to:
Exploration expenditure
10,057,409
172,065
135,722
1,636,986
12,002,182
9,317,684
86,076
107,113
207,421
9,718,294
(4,926,420)
(2,983,240)
Net unrecognised deferred tax asset
7,075,762
6,735,054
The deductible temporary differences and tax losses do not expire under current tax legislation. Potential
deferred tax assets attributable to tax losses carried forward have not been brought to account because the
Directors do not believe it is appropriate to regard realisation of the future tax benefit as probable.
The potential future income tax benefit will only be obtained if:
(i) the Group derives future assessable income of a nature and an amount sufficient to enable the benefit to
be realised in accordance with Division 170 of the Income Tax Assessment Act 1997;
(ii) the Group companies continue to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the Group in realising the benefits.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
$
2020
$
7. EARNINGS/(LOSS) PER SHARE
Profit/(loss) used in calculation of earnings/(loss) per share
267,851
(1,198,012)
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
Weighted average number of shares used in:
Calculation of basic earnings/(loss) per share
Calculation of diluted earnings/(loss) per share
Options and performance share rights
Cents
0.7
0.7
#
Cents
(0.7)
(0.7)
#
390,621,589
409,860,204
162,301,589
162,301,589
Options and share rights to acquire ordinary shares granted by the Company and not exercised at the
reporting date have been included in the determination of diluted earnings per share to the extent to
which they are dilutive. There are no options or share rights on issue at 30 June 2020 that are considered
to be dilutive.
8. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Refundable exploration costs – Novo1
GST recoverable
Other debtors
Non-current
Security and environmental bonds2
Consolidated
2021
$
2020
$
223,796
452,366
136,168
218,252
1,030,582
5,932,649
5,932,649
-
-
30,612
1,628
32,240
808,408
808,408
1 Amounts refundable to the Group from Novo Resources Corp in respect of exploration activities
undertaken at the Malmsbury project since the exercise of the option (Note 13d).
2 Included in non-current assets at 30 June 2021 is an amount of $765,806 (2020: $762,829) in respect of
security deposits paid to the Queensland State Government in respect of the exploration licences and
mining leases held by Mt Coolon Gold Mines Pty Ltd. On acquisition of Straits Gold Pty Ltd, a security
bond of $5,077,151, held for rehabilitation purposes, was recognised in non-current assets.
There is no expected credit loss in relation to the trade and other receivables at the balance date. The
carrying amount of trade and other receivables are assumed to approximate their fair values due to their
short-term nature.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9.
INVENTORIES
Copper on hand
Gold on hand
Reagents and consumables
Consolidated
2021
$
538,667
80,047
54,940
673,654
Note
Consolidated
2021
$
2020
$
-
-
-
-
2020
$
10. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase:
Capitalised costs at the start of the financial
year
Acquisition costs capitalised (note 12(a))
Exploration and evaluation costs incurred
(excluding joint venture costs incurred)
Capitalised rehabilitation costs (note 14)
Less: costs relating to tenements sold or to be
sold1
Less: previously capitalised costs written off 1
Less: exploration costs not capitalised
Capitalised costs at the end of the financial year
5
5
10,848,146
2,999,998
7,331,097
464,694
(1,116,399)
-
(953,108)
19,574,428
9,644,180
524,415
905,113
-
-
(119,022)
(106,540)
10,848,146
The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or alternatively, sale of the respective areas.
1Capitalised costs written off relate to areas of interest where substantive expenditure is neither budgeted nor
planned.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
11. PROPERTY, PLANT AND EQUIPMENT
Carrying values at 30 June:
Property and improvements:
Cost
Depreciation
Office equipment and software:
Cost
Depreciation
Site equipment and plant:
Cost
Depreciation
Motor vehicles:
Cost
Depreciation
Mine properties-Capital Work in Progress:
Cost
Depreciation
Total
193,117
(135,481)
57,636
281,499
(207,685)
73,814
611,824
(161,663)
450,161
252,850
(133,611)
119,239
741,550
(61,796)
679,754
1,380,604
193,117
(132,836)
60,281
176,223
(175,065)
1,158
134,910
(131,140)
3,770
130,633
(130,633)
-
632,315
-
632,315
697,524
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
11. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Reconciliation of movements:
Property and improvements:
Opening net book value
Depreciation
Closing net book value
Office equipment and software:
Opening net book value
Additions
Depreciation
Closing net book value
Site equipment and plant:
Opening net book value
Additions
Depreciation
Closing net book value
Motor vehicles:
Opening net book value
Additions
Depreciation
Closing net book value
Mine properties-Capital Work in Progress:
Opening net book value
Additions
Depreciation
Closing net book value
Total
5
5
5
5
5
60,281
(2,645)
57,636
1,158
105,276
(32,620)
73,814
3,770
476,914
(30,523)
450,161
-
122,217
(2,978)
119,239
632,315
109,235
(61,796)
679,754
1,380,604
62,925
(2,644)
60,281
2,762
-
(1,604)
1,158
6,650
-
(2,880)
3,770
804
(804)
-
-
632,315
-
632,315
697,524
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
$
2020
$
12. FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
Balance at the start of the financial year
Investments acquired 1
Shares transferred 2
Disposal of investments 3
(Loss)/gain on investment recognised through
profit or loss4
Balance at the end of the financial year
794,833
3,688,367
(13,338)
(589,607)
(363,615)
3,516,640
-
428,772
-
366,061
794,833
1 Fair value of 1,575,387 (2020: 197,907) fully paid ordinary shares received from Novo Resources Corp (Novo),
a TSX-V listed company. Shares acquired in the current financial year are consideration shares for the acquisition
by Novo of a 50% interest in the Malmsbury Gold Project (refer note 13(d)). Shares acquired in the comparative
period were received under a share swap agreement with the Company. In exchange, the Company issued Novo
9,090,909 fully paid ordinary shares plus 4,545,454 options with an exercise price of A$0.11 per share with an
expiry date of 6 April 2023.
2 The transfer of 5,937 shares as consideration for services received.
3 The fair value of 191,970 Novo shares sold in March 2021.
4 Adjustment to carrying value of investment in Novo based on TSX closing price and the AUD/CAD exchange
rates at 30 June for each reporting period. The loss or gain on the investment has been recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
Investments designated at fair value through profit or loss have been measured at Level 1 in the fair value
hierarchy. Refer to accounting policy at note 1(l).
13. ACQUISITIONS AND DISPOSALS
a) Acquisition - Straits Resources Pty Ltd
During the financial year, the Group completed the acquisition of the total issued share capital of Straits Gold Pty
Ltd (Straits Gold) which owns a 100% interest in the Yandan Gold Project. The $3 million acquisition consideration
was in the form of 22,222,222 fully paid ordinary shares in the Company at a price of 13.5 cents per share. This
acquisition has been treated as an acquisition of assets.
Acquisition consideration
Net assets acquired:
Environmental bond
Rehabilitation provision
Fair value attributed to
exploration assets
$
3,000,000
5,077,151
(5,077,149)
2
2,999,998
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
13. ACQUISITIONS AND DISPOSALS (CONTINUED)
b) Acquisition of Exploration Permits
During the financial year, the Company entered into an agreement with Yacimiento Pty Ltd (YPL) to acquire
exploration permit application EPM 27554 and the abandonment of EPM27643 in the Drummond Basin for a non-
refundable cash option payment of $45,000 and the issue of 2,000,000 ordinary shares in the Company. The option
payment was made during the financial year and has been capitalised in the financial statements. The transaction
was completed in July 2021 with the issue of 2,000,000 ordinary shares to YPL at an issue price of 13 cents per share.
c) Acquisition – White Dam Gold Copper Project
During the comparative period, the Group completed the acquisition of a 100% interest in the issued capital of
Millstream Resources Pty Ltd (Millstream). Millstream acquired an initial 50% interest in the White Dam heap leach
project in South Australia pursuant to a joint venture agreement with Round Oak Limited (refer note 31).
Under the terms of the joint venture agreement, the Company has the option to acquire 100% of the White Dam
Project (plant, equipment and tenements) for an exercise price of $500,000 plus a 2% royalty on any copper and
gold production revenue. During the current reporting period, the Company exercised its option and completion of
the acquisition of 100% interest in the White Dam heap leach project occurred on 30 July 2021. From this date
forward, the Company will be responsible for 100% of site costs and entitled to 100% of gold and copper production.
d) Sale of 50% interest in Malmsbury Gold Project
During the reporting period the Group entered into a strategic partnership with Novo Resources Corp. (Novo).
Novo exercised an option to acquire a 50% interest in the Malmsbury Gold Project on 24 September 2020 and
entered into a further earn-in arrangement. Consideration for the acquisition of the 50% interest is 1,575,387 Novo
shares. Completion of the sale occurred on 14 May 2021 resulting in a profit to the company of approximately $2.8
million.
In addition to the acquisition of an initial 50% interest, Novo has entered into an earn-in arrangement with the
Group to earn an additional 10% interest by incurring A$5 million (less up to A$250,000 to be reimbursed to the
Group for expenditure incurred during the option period) in exploration expenditure over a four-year period.
The Group has recognised a receivable of $452,366 at 30 June 2021 in respect of exploration costs incurred and
reimbursable by Novo (note 8).
e) Sale of Mt Morgan Gold Project
During the reporting period the Group executed a binding Letter of Intent with Canadian listed company, Smartset
Services Inc. (Smartset), for the sale of the Mt Morgan Gold-Copper Project, subject to shareholder approval.
Smartset will issue the Company 20,079,545 shares in Smartset as consideration. In addition, Smartset will make a
cash payment with respect to any amount paid by the Company on obtaining native title and landholder access and
compensation agreements, and on exploration expenditures for Mt Morgan between the date of the execution of
the LOI until transaction completion (to a maximum of C$250,000).
At balance date, capitalised exploration and evaluation expenditure of $241,654, representing the capitalised
carrying value of the Mt Morgan Gold Project, has been categorised on the Statement of Financial Position as assets-
held-for-sale.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
14. BORROWINGS
Current
Convertible note liability 1
Vehicle loan 2
Non-Current
Vehicle loan 2
Balance at the start of the financial year
Proceeds from drawdown
Interest accrued
Principal and Interest repayments
Balance at the end of the financial year
-
20,304
20,304
43,415
705,833
66,895
-
(709,009)
63,719
705,833
-
705,833
-
350,000
350,000
73,219
(67,386)
705,833
1 The Company entered into a convertible note agreement during the 2019 financial year for funding of up to
$700,000. The convertible notes pay interest at 10% per annum (paid quarterly) and were repayable on or before
30 November 2020.
The notes were converted on 27 October 2020 into 23,333,333 fully paid ordinary shares in the capital of the
Company at a conversion price of $0.03.
The convertible notes were secured by way of a mortgage over the issued share capital of Mt Coolon Gold
Mines Pty Ltd which holds the Mt Coolon Gold Project. The mortgage has been discharged.
The convertible note is a level 2 financial instrument within the fair value hierarchy.
2 The Company entered into a loan agreement to finance 2 motor vehicles. The loan has a term of 3 years and
is secured over the vehicles financed which have a net book value of $74,669.
15. TRADE AND OTHER PAYABLES
Current
Unspent funds received from farm-in partner
Acquisition costs payable1
Trade creditors2
Sundry creditors and accruals3
Employee liabilities
Share subscription liability
Note
Consolidated
2021
$
2020
$
-
12,500
1,798,741
533,208
49,774
-
2,394,223
62,895
12,500
309,389
393,816
20,071
104,119
902,790
1 Acquisition costs payable to Drummond Gold Limited pursuant to the acquisition of Mt Coolon Gold Mines
Pty Ltd.
2 Trade payables are non-interest bearing and are normally settled on 30 day terms.
3 Prior year Includes $184,000 accrued director remuneration.
GBM Resources Annual Report 2021
P a g e | 90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
16. PROVISIONS
Non-current
Rehabilitation provision1
Note
Consolidated
2021
$
2020
$
6,296,101
754,258
1 An additional $464,694 provision for rehabilitation was recognised in the 2021 financial year following an
environmental approval assessment for Mt Coolon Gold Pty Ltd (note 10).
Rehabilitation costs of $5,077,149 were recognised on the acquisition of Straits Gold Pty Ltd (note 13a).
Issue
price
2021
No.
2020
No.
2021
$
2020
$
17. ISSUED CAPITAL
Issued capital at the balance
date
Movements in issued capital:
Balance at the start of the
year
Share consolidation1
Share placement
Share placement
Shares issued to directors2
Shares issued to acquire
subsidiary3
Share placement
Share swap Novo Resources4
Entitlement issue
Share placement
Shares issued in lieu of
payment for services5
Shares on exercise of options6
Shares on exercise of rights6
Shares issued on convertible
note exercise7
Share issue costs
Balance at the end of the
reporting year
$0.033
$0.030
$0.055
$0.055
$0.135
433,246,182
225,038,134
53,575,033
36,986,753
225,038,134
-
-
-
-
1,090,596,975
(1,063,355,337)
90,909,091
50,000,000
9,739,100
36,986,753
-
-
-
-
22,222,222
46,407,371
-
55,884,212
55,407,407
2,022,249
553,254
2,378,000
23,333,333
-
15,000,000
23,057,396
9,090,909
-
-
-
-
-
-
-
3,000,000
2,552,405
-
3,073,632
7,480,000
205,247
60,858
252,038
32,915,823
-
300,000
1,500,000
350,608
525,000
1,268,157
428,772
-
-
-
-
-
700,000
(735,900)
-
(301,607)
433,246,182
225,038,134
53,575,033
36,986,753
1 Share consolidation on a 1:10 basis, as approved at the Company’s 2019 Annual General Meeting.
2 Shares issued to directors at a deemed price of 3.6 cents per share in lieu of payment of accrued salaries.
32021: shares issued at 13.5 cents per share in consideration for the acquisition of a 100% interest in the issued
capital of Straits Gold Pty Ltd. 2020: shares issued at 3.5 cents per share in consideration for the acquisition of
a 100% interest in the issued capital of Millstream Resources Pty Ltd – refer note 13.
4 Share swap with Novo Resources Corp (Novo) where they Company received in exchange 197,907 fully paid
ordinary shares in Novo.
5 Shares issued to consultant in lieu of cash payment for services – 509,904 shares at 5.5 cents per share;
492,613 shares at 6.7 cents per share; 387,152 shares at 11.3 cents per share; 404,458 shares at 15.9 cents per
share and 228,122 shares at 15.7 cents per share.
6 Shares issued on exercise of quoted options exercisable at 11 cents and expiring on 6 July 2023.
7 Shares issued on the conversion of a convertible note at 3 cents per share. Refer to note 14.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
17. ISSUED CAPITAL (CONTINUED)
The Company’s shares are limited whereby the liability of its members is limited to the amount (if any) unpaid
on the shares respectively held by them. Ordinary shares entitle the holder to participate in dividends and the
proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to
one vote, and upon a poll each share is entitled to one vote.
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
Shares Subject to Restriction Agreement
At balance date there were 7,407,407 ordinary shares subject to a 12 month restriction until 15 January 2022.
2021
No.
2020
No.
18. OPTIONS
Details of the Company’s Incentive Option Scheme are provided at Note 20.
(a)
Options over unissued shares
Options on issue at the balance date
80,746,765
25,954,152
Movements in options:
Options on issue at the start of the year (2020: pre-consolidation)
Cancelled during the year 1
Adjustment on consolidation of capital
Issued to directors (note 20)
Options issued 3
Options issued 4
Options issued pursuant to the employee Incentive plan (note 20)
Options exercised
Options on issue at the end of the reporting year
25,954,152
-
-
300,000
-
51,145,867
3,900,000
(553,254)
80,746,765
222,191,744
(203,391,744)
(16,920,000)
8,000,000
16,074,152
-
-
-
25,954,152
1 Listed options exercisable at 5 cents each and expiring 30 September 2019 issued pursuant to a non-
renounceable entitlement offer.
2 Unlisted options exercisable at 8.5 cents (initially 0.9 cents) and expiring 31 January 2023 (refer note 18).
3 Listed options exercisable at 10.5 cents each and expiring 6 April 2023 issued pursuant to a non-renounceable
entitlement offer.
4 Listed options exercisable at 11 cents each and expiring 6 July 2023 issued pursuant to a non-renounceable
entitlement offer and a share placement in July 2020.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Note
Consolidated
2021
$
2020
$
19. RESERVES AND ACCUMULATED LOSSES
Option reserve1
Opening balance
Transfer to accumulated losses on expiry of options
Closing balance
Accumulated losses
Opening balance
Transfer from option reserve on expiry of options
Net profit/(loss) attributable to the members of the
Company
Closing balance
Share based payments reserve2
Opening balance
Vesting expense of options/rights
Options/rights exercised during the year
Closing balance
-
-
-
610,175
(610,175)
-
(25,149,324)
-
(24,561,487)
610,175
267,851
(24,881,473)
(1,198,012)
(25,149,324)
362,913
535,986
(252,038)
646,861
78,467
284,446
-
362,913
1 Option reserve
The option reserve represents the proceeds received on the issue of options.
2 Share based payments reserve
The share based payments reserve represents the fair value of vested equity instruments issued as
remuneration or consideration.
20. SHARE BASED PAYMENTS
Details of the Company’s incentive Performance Rights and Option Plan (“Plan”), under which performance
rights and options are issuable to employees, directors and consultants are summarised below. Details of share
rights and options issued to Directors and executives are set out in the Remuneration Report that forms part of
the Directors’ Report. The Plan was adopted and approved by shareholders at a General Meeting on 16 June
2020.
Incentive Options
Options are granted free of charge and are exercisable at a fixed price in accordance with the terms of the grant.
Options over unissued shares are issued under the terms of the Plan at the discretion of the Board.
Options granted during the year
During the year the Company granted 4,200,000 options (2020: 8,000,000) over unissued shares, which have
been valued as follows using the Black-Scholes valuation model and expensed in the financial statements over
the periods that they vest:
Grant date Options issued
15 Sep 20
12 Feb 21
29 Apr 21
300,000
2,000,000
1,900,000
Exercise price Expiry date
14 Sep 24
11 Feb 25
11 Feb 25
$0.21
$0.18
$0.18
Volatility1
158.4%
122.3%
107.5%
Interest rate
0.40%
0.11%
0.10%
Value $
$35,354
$176,792
$139,521
1 Historical volatility has been used as the basis for determining expected share price volatility.
Options exercised during the year
During the year the Company issued no shares (2020: nil) on the exercise of unlisted options.
GBM Resources Annual Report 2021
P a g e | 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
20. SHARE BASED PAYMENTS (CONTINUED)
Options cancelled during the year
During the year no unlisted options (2020: nil) were cancelled upon termination of employment, or on the
expiry of the exercise period.
Options on issue under the plan at balance date
The number of options issued under the Plan and outstanding over unissued ordinary shares at 30 June 2021 is
14,080,000 as follows.
Grant date
Exercise price
Expiry date
Balance at 30 June
5 Feb 19
25 Nov 19
15 Sep 20
12 Feb 21
29 Apr 21
$0.085
$0.05
$0.21
$0.18
$0.18
31 Jan 23
16 Dec 22
14 Sep 24
11 Feb 25
11 Feb 25
1,880,0001
8,000,000
300,000
2,000,000
1,900,000
Vested and
Exercisable at 30 June
1,880,000
8,000,000
300,000
2,000,000
1,900,000
1 Prior to the consolidation of capital on a 10 for 1 basis, there were 18,800,000 options on issue at 9 cents.
Following completion of the Entitlement Offer, and in accordance with ASX Listing Rule 6.22.2, the exercise price for each
option was reduced from 9 cents to 8.5 cents.
Subsequent to balance date
Subsequent to balance date no unlisted options were issued, exercised or cancelled and 625 listed options were
exercised.
Reconciliation of movement of options
Set out below is a summary of options granted under the plan:
2021
No.
9,880,000
-
4,200,000
14,080,000
WAEP
(cents)
5.8
-
17.1
9.1
2020
No.
18,800,000
(16,920,000)
8,000,000
9,880,000
WAEP
(cents)
0.09
0.09
5.0
5.8
Options outstanding at the start of
the year
Consolidation of capital
adjustment
Options granted during the year
Options outstanding at the end of
the year
Weighted average contractual life
The weighted average contractual life for un-exercised options is 25.3 months (2020: 29.8 months).
Performance Rights
Performance rights granted during the year
During the year the Company issued 1,250,000 performance rights, vesting on 30 September 2020. The
performance rights have been recognised at 11.5 cents each based on the underlying share price at the date
of grant. The performance rights expense has been allocated to capitalised exploration in respect of the
services provided.
During the year 2,378,000 shares were issued on the exercise of performance rights and no performance rights
were cancelled. There were no performance rights over unissued ordinary shares at 30 June 2021.
Subsequent to balance date
Subsequent to balance date, the Company issued 595,654 performance rights with an expiry date of 26 August
2025.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
21. FINANCIAL INSTRUMENTS
Credit risk
The Directors do not consider that the Group’s financial assets are subject to anything more than a negligible
level of credit risk, and as such no disclosures are made (note 2(a)).
Impairment losses
The Directors do not consider that any of the Group’s financial assets are subject to impairment at the reporting
date. No impairment expense or reversal of impairment charge has occurred during the reporting period.
Currency risk
The Group does not have any direct exposure to foreign currency risk, other than in respect of its impact on the
economy and commodity prices generally (note 2 (c)).
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements (note 2(b)):
Carrying
amount
$
Contractual
cash flows
$
6 months
or less
$
6-12
months
$
1-2
years
$
2-5
years
$
63,719
2,394,223
73,611
2,394,223
12,990
2,394,223
12,990
-
25,980
-
21,651
-
2,457,942
2,467,834
2,407,213
12,990
25,980
21,651
705,833
703,204
735,292
703,204
735,292
703,204
1,409,037
1,438,496
1,438,496
-
-
-
-
-
-
-
-
-
More
than 5
years
$
-
-
-
-
-
-
Consolidated
30 June 2021
Borrowings
Trade and other payables
30 June 2020
Borrowings
Trade and other payables
Interest rate risk
At the reporting date the interest profile of the Group’s interest-bearing financial instruments were:
Fixed rate instruments:
Financial liabilities
Variable rate instruments:
Financial assets
Consolidated
2021
$
2020
$
(63,719)
(700,000)
(63,719)
(700,000)
5,676,340
1,382,072
5,676,340
1,382,072
The Group is not materially exposed to interest rate risk on its variable rate investments.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
21. FINANCIAL INSTRUMENTS (CONTINUED)
Fair values
Fair values versus carrying amounts
The carrying amounts of financial assets and liabilities not measured at fair value on a recurring basis, as
described in the consolidated statement of financial position represent their estimated net fair value.
22. COMMITMENTS
(a)
Exploration
The Group has certain obligations to perform minimum exploration work on mineral leases held. These obligations
may vary over time, depending on the Group’s exploration programmes and priorities. As at balance date, total
exploration expenditure commitments on tenements held by the Group have not been provided for in the financial
statements. These obligations are also subject to variations by farm-out arrangements or sale of the relevant
tenements.
Minimum expenditure requirements for the following 12 months on the Group’s exploration licences as at 30 June
2021, including licences subject to farm-in arrangements are approximately $2,573,000 (2020: $1,115,000).
(b)
Lease Commitments
During the financial year, premises in Queensland and Victoria were leased on a month by month basis or under
short term leases of 12 months or less. The Group has availed itself of the exemption in AASB 16 Leases to not
capitalise these leases. An amount of $32,500 (2020: $19,612) has been expensed in relation to short term leases.
(c)
Contractual Commitment
During the financial year the Group entered into a number of transactions that were not settled until after 30 June
2021. Refer to notes 13 and 29 for any commitments outstanding at 30 June 2021.
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
$
2020
$
23. NOTES TO THE STATEMENT OF CASH FLOWS
a) Cash and cash equivalents
Cash at bank and on hand
Bank at call cash account
5,650,272
26,068
1,356,030
26,042
Total cash and cash equivalents
5,676,340
1,382,072
b) Cash balances not available for use
Included in cash and cash equivalents are amounts pledged as guarantees for the following:
Corporate credit card facility
26,068
26,042
c) Reconciliation of Profit/(loss)
from
Ordinary Activities after Income Tax to
Net Cash Used in Operating Activities
Profit/(loss) after income tax
Add (less) non-cash items:
Profit on sale of assets
Share based payments-employees
Share based payments-suppliers
Depreciation
Fair value loss/(gain) on financial assets
Exploration expenditure written off,
expensed and impaired
Changes in assets and liabilities:
Increase/(decrease) in trade creditors
and accruals
(Increase)/decrease in prepayments
(Increase)/decrease in inventories
(Increase)/decrease in sundry receivables
267,851
(1,198,012)
(2,815,279)
351,668
57,103
130,562
363,615
-
275,160
67,720
7,932
(366,061)
953,108
225,562
507,354
(22,913)
(673,654)
(545,976)
121,909
-
-
(24,942)
Net cash flows used in operations
(1,426,561)
(890,732)
24. AUDITOR’S REMUNERATION
Amounts received or receivable by HLB Mann
Judd for:
-
Audit and review of financial reports
Consolidated
2021
$
2020
$
39,873
31,775
GBM Resources Annual Report 2021
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
25. CONTROLLED ENTITIES
a) Particulars in Relation to Ownership of Controlled Entities
Belltopper Hill Pty Ltd
Syndicated Resources Pty Ltd
Willaura Minerals Pty Ltd
Isa Brightlands Pty Ltd
Isa Tenements Pty Ltd
Koala Quarries Pty Ltd
Mt Coolon Gold Mines Pty Ltd
Millstream Resources Pty Ltd
Straits Gold Pty Ltd
2021
%
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and not disclosed in the note. Details of transactions between the Group
and other related parties are disclosed in note 27.
26. KEY MANAGEMENT PERSONNEL DISCLOSURES
a) Details of Key Management Personnel
The following were key management personnel of the Group at any time during the year and unless otherwise
stated were key management personnel for the entire year.
Non-Executive Director
Guan Huat Sunny Loh – Non-Executive Director
Peter Thompson – Non-Executive Director
Brent Cook – Non-Executive Director (appointed 17 September 2020)
Executive Directors
Peter Rohner – Managing Director
Peter Mullens – Executive Chairman
Neil Norris – Exploration Director (resigned 17 September 2020)
Total remuneration paid to key management personnel during the year:
Short-term benefits
Post-employment benefits
Share based payments
Consolidated
2021
$
588,322
225,961
35,355
849,638
2020
$
377,625
30,538
216,716
624,879
b) Other Transactions and Balances with Key Management Personnel
There are no other transactions with Directors, or Director related entities or associates, other than those
reported in note 26 and note 27.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
$
2020
$
27. RELATED PARTY TRANSACTIONS
a) Total amounts receivable and payable from entities
in the wholly-owned group (see Note 25 for details
of controlled entities) at balance date:
Non-Current Receivables
Loans to controlled entities
23,030,571
19,081,662
Non-Current Payables
Loans from controlled entities (Belltopper Hill PL)
1,280,622
-
b) Transactions with Directors
During the year, the Group incurred costs of $20,060 (2020: $126,219) with Core Metallurgy Pty Ltd an entity
associated with Mr Peter Rohner, for project consulting fees relating to White Dam. At 30 June 2021, a
balance of $528 (2020: $13,628) was owing to Core Metallurgy Pty Ltd.
Office rent of $12,000 (2020: $10,000) was incurred with Ironbark Pacific Pty Ltd, an entity associated with
Mr Peter Mullens. No consulting fees were incurred this financial year (2020: $11,430). At 30 June 2021, there
was no amount owing to Ironbark Pacific Pty Ltd (2020: $10,827).
28. DIVIDENDS
There are no dividends paid or payable during the year ended 30 June 2021 or the 30 June 2020 comparative year.
29. EVENTS SUBSEQUENT TO BALANCE DATE
Other than as stated below, there has not arisen in the interval between the end of the financial year and the date
of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors
of the Company to affect substantially the operations of the Group, the results of those operations or the state of
affairs of the Group in subsequent financial years.
On 6 July 2021 the Company issued 2,000,000 ordinary shares to complete its acquisition of EPM27554 and
EPM27643 from Yacimiento Pty Ltd.
In July 2021, a binding term sheet was executed with Native Mineral Resources for the acquisition of EPM17850
for a consideration comprising a cash payment of $35,000 and $200,000 in GBM shares (1,562,500 ordinary
shares were issued on 20 August 2021). The Letter of Intent for the sale of the Mt Morgan Project to Smartset
Services Inc was amended to include this new tenement as part of the Mt Morgan sale.
In July 2021, the Company executed a binding Tenement Sale Agreement for the purchase of a 100% interest
in the Twin Hills Project for a cash consideration of approximately $2 million, along with assuming the financial
assurance in respect of the environmental authorities for the tenements (currently for an amount of
approximately $1.48 million).
In June 2021 the Group exercised its option to acquire 100% of the White Dam Gold Copper Project. The
payment of $500,000 exercise price, replacement of $1.94 million environmental bonds and the transfer of the
relevant Round Oak Minerals Pty Ltd subsidiaries (which owned the White Dam assets) was settled in July 2021.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
29. EVENTS SUBSEQUENT TO BALANCE DATE (CONTINUED)
In September 2021 the Group signed a non-binding proposal with Consolidated Uranium Inc (a Canadian
company listed on TSXV: CUR) for the sale of its Brightlands Milo tenement EPM 14416. Subject to satisfactory
due diligence, CUR will offer consideration comprising a cash payment of CAD $500,000 plus a minimum of
CAD $1.5 million of CUR’s shares (or 750,000 CUR shares if the share price is above CAD $2.00 per share).
On 22 September 2021, 70,000,000 ordinary shares in the Company were issued to institutional and
sophisticated investors to raise a total of $7,000,000 (before costs).
Since the end of the financial year, 73,563,125 shares (listed above) and 595,654 performance rights were
issued. Subsequent to year end, 625 options were exercised. Refer to Directors’ Report – Equity Securities
on Issue for further detail.
The impact of the coronavirus (COVID-19) pandemic is ongoing. The situation is dependent on measures imposed
by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine,
travel restrictions and any economic stimulus that may be provided. It is not practicable to estimate the potential
impact, positive or negative, after the reporting date.
30. CONTINGENCIES
(i) Contingent liabilities
There were no material contingent liabilities not provided for in the financial statements of the Group as at 30
June 2021 or 30 June 2020.
(i) Native Title and Aboriginal Heritage
Native title claims have been made with respect to areas which include tenements in which the Group has an
interest. The Group is unable to determine the prospects for success or otherwise of the claims and, in any
event, whether or not and to what extent the claims may significantly affect the Group or its projects.
Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage
issues regarding certain areas in which the Group has an interest.
(iii) Contingent assets
There were no material contingent assets as at 30 June 2021 or 30 June 2020.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
31. WHITE DAM JOINT VENTURE
During the reporting period the Group recognised the following amounts in profit or loss in respect of its 50%
interest in the production from the White Dam gold-copper joint venture:
Revenue from sale of gold
Company share of JV operational costs
Net income from joint venture activities
2021
$
1,460,014
(1,020,842)
439,172
2020
$
-
-
-
At the end of the reporting period the Group recognised the following assets and liabilities in its Statement of
Financial Position in respect of its proportional interest in the White Dam gold-copper joint venture:
Assets
Cash and cash equivalents
Trade and other receivables
GST receivable
Prepayments
Inventories
Total share of joint venture assets
Liabilities
Trade payables
Accrued expenses
Total share of joint venture liabilities
Share of joint venture net assets
126,207
187,287
22,487
22,913
673,654
1,032,548
(406,627)
(2,598)
(409,225)
623,323
-
-
-
-
-
-
-
-
-
-
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
32. PARENT ENTITY INFORMATION
Financial position
Assets
Current assets
Non-current assets 1
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
NET ASSETS
Equity
Issued capital
Accumulated losses
Share based payment reserve
2021
$
2020
$
6,605,767
24,783,548
1,411,374
12,397,767
31,389,315
13,809,141
(2,005,479)
(43,415)
(1,608,799)
-
(2,048,894)
(1,608,799)
29,340,421
12,200,342
53,575,033
(24,881,473)
646,861
36,986,753
(25,149,324)
362,913
TOTAL EQUITY
29,340,421
12,200,342
Financial performance
Profit/(loss) for the year
Other comprehensive income
267,851
-
(1,198,012)
-
Total comprehensive income/(loss)
267,851
(1,198,012)
1 The Company has recognised a provision against the investment in subsidiary holdings to the extent that parent
company net assets exceed those of the Group.
Contingent liabilities
For full details of contingent liabilities see Note 30.
Commitments
For full details of commitments see Note 22.
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DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2021
1.
In the opinion of the Directors:
a.
b)
c)
a)
Corporations Act 2001 including:
the accompanying financial statements and notes are in accordance with the
i.
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of
its performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001.
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 financial statements and notes are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
b.
2.
This declaration has been made after receiving the declarations required to be made to the
directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30
June 2021.
This declaration is made in accordance with a resolution of the Board of Directors.
PETER MULLENS
Executive Chairman
Dated this 30th day of September 2021
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INDEPENDENT AUDTOR’S REPORT
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INDEPENDENT AUDTOR’S REPORT
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INDEPENDENT AUDTOR’S REPORT
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INDEPENDENT AUDTOR’S REPORT
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ASX ADDITIONAL INFORMATION
Pursuant to the Listing Rules of the Australian Securities Exchange Limited, the shareholder information set out
below was applicable as at 4 October 2021.
a. Distribution of Equity Securities
Quoted Shares (GBZ)
Quoted Options (GBZOB)
Range
Number of
Holders
Securities
Held
% Held
Number of
Holders
Securities
Held
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
58
142
197
15,637
0.00%
575,647
0.11%
1,554,856
0.31%
40
37
16
12,054
0.02%
102,484
0.20%
122,968
0.24%
10,001 – 100,000
538
22,017,363
4.34%
104
5,178,272
10.24%
100,001 and over
387
482,645,804
95.23%
82
45,176,210
89.30%
1,322
506,809,307
100%
279
50,591,988
100%
There are 146 shareholders holding less than a marketable parcel of shares.
b. Substantial Shareholders
An extract of the Company’s register of Substantial Shareholders (who hold 5% or more of the issued capital) is
set out below:
Shareholder
Straits Mineral Investment Pty Ltd
Kok Yong Lim
Shares Held % of Issued Capital
33,129,629
26,027,668
6.54%
5.10%
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ASX ADDITIONAL INFORMATION
c. Twenty Largest Holders – Ordinary Shares (GBZ)
Shareholder
Citicorp Nominees Pty Limited
Straits Mineral Investments Pty Ltd
Shares Held % of Issued Capital
92,684,501
33,129,629
BNP Paribas Nominees Pty Ltd
28,208,200
Syndicate Minerals Pty Ltd
Beatons Creek Gold Pty Ltd
Longru Zheng
19,990,000
11,363,637
8,871,860
Mullens Family Super Fund Pty Ltd
7,975,758
HSBC Custody Nominees (Australia) Limited
BNP Paribas Nominees Pty Ltd Six Sis Ltd
BNP Paribas Noms Pty Ltd < DRP >
National Nominees Limited
BNP Paribas Nominees Pty Ltd Acf Clearstream
Mr Peter Rohner + Ms Fiona Jane Murdoch
De Gracie Nominees Pty Ltd
HSBC Custody Nominees (Australia) Limited
National Federal Capital Limited
Superfine Nominees Pty Ltd
Weijun Chen
Mr Nico Oliver Civelli
Li Rongzhi
Total
7,671,497
7,558,355
7,365,888
5,993,972
5,479,171
5,359,374
5,261,800
5,130,935
5,000,000
5,000,000
3,952,010
3,500,000
3,500,000
272,996,587
53.87%
18.29%
6.54%
5.57%
3.94%
2.24%
1.75%
1.57%
1.51%
1.49%
1.45%
1.18%
1.08%
1.06%
1.04%
1.01%
0.99%
0.99%
0.78%
0.69%
0.69%
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ASX ADDITIONAL INFORMATION
c. Twenty Largest Holders – Quoted Options (GBZOB)
Shareholder
Crescat Global Macro Master Fund Ltd
Citicorp Nominees Pty Limited
Options Held % of Issued Capital
7,281,768
3,434,245
BNP Paribas Nominees Pty Ltd
2,510,170
Syndicate Minerals Pty Ltd
Jekor Pty Ltd
Mr Nicholas Dermott Mcdonald
Mr Nico Oliver Civelli
Beatons Creek Gold Pty Ltd
2,050,000
1,980,000
1,829,681
1,818,182
1,136,364
Annlew Investments Pty Ltd
1,000,000
Accent Capital GMBH
Torres Investments Pty Ltd
HSBC Custody Nominees (Australia) Limited
Crescat Long/Short Fund L P
Mrs Belinda Martin
Mr Andrew David Walker + Mrs Angela Rosemary Walker
HSBC Custody Nominees (Australia) Limited
Jose Leviste Jnr
Dinwoodie Investments Pty Ltd
Mr Bradley William Green
Nelson Enterprises Pty Ltd
Total
1,000,000
1,000,000
915,000
900,000
791,241
767,401
626,500
600,000
500,000
500,000
500,000
31,640,552
62.54%
14.39%
6.79%
4.96%
4.05%
3.91%
3.62%
3.59%
2.25%
1.98%
1.98%
1.98%
1.81%
1.78%
1.56%
1.52%
1.24%
1.19%
0.99%
0.99%
0.99%
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ASX ADDITIONAL INFORMATION
d. Unquoted Securities
Details of Security
Securities on Issue Number of Holders
Options (exercisable at $0.085 expiring 31 January 2023)
Options (exercisable at $0.05 expiring 16 December 2022)
Options (exercisable at $0.105 expiring 6 April 2023) 1
Options (exercisable at $0.21 expiring 14 September 2024)
Options (exercisable at $0.18 expiring 11 February 2025)
Performance Rights expiring 26 August 2025
1,880,000
8,000,000
16,074,152
300,000
3,900,000
595,654
2
2
4
1
10
7
1 Citicorp Nominees Pty Limited holds 10,340,907 (64.33%) and Beatons Creek Gold Pty Ltd holds 4,545,454
(28.28%) options in this class of securities.
e. Voting Rights
In accordance with the Company’s Constitution, voting rights in respect of ordinary shares are on a show of
hands whereby each member present in person or by proxy shall have one vote and upon a poll, each share will
have one vote.
f. Restricted Securities
The Company has the following securities subject to voluntary escrow on issue:
Class
Shares
Shares
Number
Restriction Period
2,000,000 Restricted for 16 months until 6 January 2022
7,407,407 Restricted for 12 months until 15 January 2022
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