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and controlled entities
ABN 72 124 772 041
Annual Financial Report and Directors’
Report
for the year ended 30 June 2021
Genesis Minerals Limited and controlled entities
Corporate Directory
ABN 72 124 772 041
Directors
Tommy McKeith (Non-Executive Chairman)
Michael Fowler (Managing Director)
Craig Bradshaw (Non-Executive Director)
Gerry Kaczmarek (Non-Executive Director)
Nic Earner (Non-Executive Director)
Company Secretary
Geoff James
Registered Office and Principal Place of Business
Unit 6, 1 Clive Street
WEST PERTH WA 6005
Telephone: +61 8 9322 6178
Postal Address
PO Box 937
WEST PERTH WA 6872
Share Register
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
PERTH WA 6000
Auditors
Hall Chadwick WA Audit Pty Ltd (formerly Bentleys Audit & Corporate (WA) Pty Ltd)
238 Rokeby Road
SUBIACO WA 6008
Internet Address
www.genesisminerals.com.au
Email Address
info@genesisminerals.com.au
Securities Exchange Listing
Genesis Minerals Limited shares are listed on the Australian Securities Exchange (ASX code: GMD).
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Genesis Minerals Limited and controlled entities
Contents
Chairman's Report
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report to Members
ASX Additional Information
Mineral Resource Information
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Genesis Minerals Limited and controlled entities
Chairman’s Report
Dear Shareholders,
It is my pleasure to introduce Genesis Minerals’ 2021 Annual Report and to update you on what has been a very positive,
rewarding and ultimately transformational year for the Company as we made further substantial progress towards our goal of
becoming a new mid-tier Australian gold producer based on our expanded Ulysses Gold Project in Western Australia.
During the 2021 financial year, we were able to build quickly on the strong foundations established by the acquisition of the
adjoining Kookynie Gold Project. This deal has proven to be a game-changer for Genesis, allowing us to embark on a major
drilling effort aimed at upgrading both the quality and scale of our resources and making new discoveries that will allow us to
achieve a step-change in our growth trajectory.
As a result of the Kookynie acquisition, our Mineral Resource inventory almost doubled to 1.28 million ounces. The acquisition
also consolidated Genesis’ ownership of the southern extension of the highly-endowed Leonora Gold Corridor. Our strategic
650 square kilometre footprint in this prolific gold province includes a 15km strike length of the extremely prospective but
under-explored Ulysses-Orient Well trend.
In light of the significant increase in the size and scope of the Ulysses Project, Genesis immediately broadened the ongoing
Feasibility Study to consider the development of a standalone mining and processing operation, rather than pursuing the toll-
treatment and partnership options we had initially envisaged.
We also commenced a major drilling program aimed at expanding and upgrading our Mineral Resource inventory with up to
35,000m of Reverse Circulation (RC) and diamond drilling initially planned across the Admiral, Clark, Butterfly and Orient Well
areas. This work was highly successful, delivering outstanding results from within the known resources and prompting us to
extend the program in key areas.
This first phase of work culminated in the announcement of an updated Mineral Resource of 27.3Mt at 1.8g/t for 1.608 million
ounces in March – an increase of 26% or 327,000 ounces. Importantly, the higher-confidence Measured and Indicated
component increased by 32% or 237,000 ounces to 984,000 ounces. All of these ounces are located in the heart of one of the
world’s premier mining districts, the Leonora-Laverton region of Western Australia’s Eastern Goldfields, putting us in an
outstanding position to unlock the value of this high-quality asset base for our shareholders.
This resource update paved the way for us to complete an $11 million capital raising via an institutional placement and $1
million Share Purchase Plan, giving us the ability to maintain significant drilling momentum into the second half of the year
with an aggressive exploration push targeting the next leg of resource growth and discovery at Ulysses.
The focus of ongoing drilling has been to confirm and upgrade existing resources while also beginning the process of
systematically testing for extensions of the known deposits at depth and along strike and searching for completely new
discoveries.
I am pleased to say that we have been successful on all counts, with a steady flow of impressive results generated over the
course of the year. These included an exciting new discovery in the Puzzle North area, where we have intersected a large
zone of shallow gold mineralisation, and outstanding high-grade results from extensional and step-out drilling at the Admiral
Deposit.
The Company has budgeted to completed at least a further 40,000m of RC and diamond drilling in the second half of calendar
year 2021, in conjunction with over 20,000m of air-core drilling across the 15km long Ulysses-Orient Well corridor and 6km
strike length of the Puzzle granite-greenstone contact. This work will feed into a further major Mineral Resource update to be
delivered towards the end of 2021.
Despite interruptions and delays due to the highly competitive market for services, people and equipment in WA (largely due
to the flow-on impacts of the COVID-19 pandemic), we were able to make substantial progress with the Feasibility Study on a
standalone open pit and underground mining operation at the expanded Ulysses Project during the year.
While this work is well advanced, the success we have been enjoying with the drill rig (as well as the lengthy turnaround times
being experienced at assay laboratories due to the upsurge in exploration activity) has prompted us to reconsider the timing
of its completion. With another major resource uplift pending by year-end, we are now reassessing the Feasibility Study on
the basis of a larger project with the potential for an enhanced production profile, improved economics and stronger financial
returns.
Subsequent to the end of the financial year, Genesis unveiled a landmark strategic $20.8 million funding package and board
restructure led by highly-regarded gold mining executive Raleigh Finlayson, the former Managing Director of Saracen Mineral
Holdings and Northern Star Resources (as announced on 22 September 2021).
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Genesis Minerals Limited and controlled entities
Chairman’s Report
Under this proposal (which is subject to shareholder approval), Genesis will raise $16 million via a share Placement at 6c per
share with Mr Finlayson subscribing for $7 million of shares and Northern Star subscribing for $3 million of shares. Existing
Genesis shareholders will have the opportunity to participate in a 1-for-30 non renounceable Entitlement Offer, also at 6c per
share, with both the Placement shares and the Entitlement Offer coming with a free one-for-two attaching unlisted option
exercisable at 10c.
The plan will see Mr Finlayson appointed as Managing Director of Genesis by no later than 31 March 2022 as part of a wide-
ranging board restructure that will also see former FMG Managing Director and CEO Neville Power and highly-experienced
corporate lawyer Michael Bowen invited to join the Board as Non-Executive Directors.
Under the transition plan, Michael Fowler will remain Genesis Managing Director until Mr Finlayson's appointment becomes
effective, at which time he will retire from the Board. Current non-executive Directors Craig Bradshaw and Nic Earner will retire
from the Board at the upcoming Genesis AGM, assuming all necessary shareholder approvals for the Placement and Board
restructure are obtained. I will remain as non-executive Chairman.
This landmark announcement was very well received by the market, sparking a sharp increase in the Company’s market
capitalisation and providing an exceptional platform for Genesis to take the next important steps as an emerging mid-tier gold
player, marking the culmination of what has been an incredibly successful few years for the Company.
As a result of the strategic restructure unveiled in September and the new leadership group coming into the Company, I have
no doubt that we will be able to elevate Genesis quite rapidly into the ranks of Australia’s mid-tier gold producers.
In conclusion, I would like to take this opportunity to extend my sincere thanks to the small but hard-working team at Genesis,
led by our Managing Director, Michael Fowler. The fact that we have been able to achieve so much over the past two years
and grow our resource base to the point where we have been able to attract one of the most successful management teams
in the Australian gold sector to our Company is testament to their experience, expertise and resilience.
Finally, I would like to again thank you – our shareholders – for your support over the course of the year. I am confident that
all of the hard work the Genesis team has put in over the past few years will be richly rewarded in 2022 and beyond.
Tommy McKeith
Chairman
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Genesis Minerals Limited and controlled entities
Directors' Report
Directors’ Report
Your directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Genesis Minerals
Limited and the entities it controlled at the end of, or during, the year ended 30 June 2021.
DIRECTORS
The names and details of the Company's directors in office during the financial year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Information on Directors
Tommy McKeith
Qualifications
Experience
Non-Executive Chairman (Appointed 29
November 2018)
BSc (Hons), GradDip Eng (Mining), MBA
Mr McKeith is a geologist with 30 years’ experience in various mine geology, exploration
and business development roles. He was formerly Executive Vice President (Growth and
International Projects) for Gold Fields Limited, where he was responsible for global
greenfields exploration and project development. Mr McKeith was also Chief Executive
Officer of Troy Resources Limited and has held Non-Executive Director roles at Sino
Gold Limited and Avoca Resources Limited.
Interest in shares and options
9,333,908 fully paid ordinary shares
966,666 options expiring 10 December 2022, exercisable at $0.106
966,667 options expiring 10 December 2023, exercisable at $0.114
966,667 options expiring 10 December 2024, exercisable at $0.122
Other directorships in listed entities
held in the previous three years
Mr McKeith is a non-executive director of Evolution Mining Limited and Arrow Minerals
Limited and is formerly non-executive Chairman of Prodigy Gold NL.
Michael Fowler
Qualifications
Experience
Managing Director (Appointed 16 April 2007)
BSc, MSc, MAusIMM
Mr Fowler is a geologist and holds a Bachelor of Applied Science degree majoring in
geology from Curtin University and a Master of Science degree majoring in Ore Deposit
Geology from the University of Western Australia. Mr Fowler brings to the Board 30 years’
experience as an exploration and mining professional with extensive corporate and
operational management skills in the minerals industry.
Interest in shares, options and
performance rights
15,461,017 fully paid ordinary shares
3,600,000 options expiring 13 December 2021, exercisable at $0.045
4,500,000 performance rights expiring 31 December 2021
Other directorships in listed entities
held in the previous three years
Mr Fowler resigned as a director of PolarX Limited (formerly Coventry Resources
Limited) on 1 December 2017.
Craig Bradshaw
Non-Executive Director (Appointed 7 September 2017)
Qualifications
Experience
B.Eng. (Mining)
Mr Bradshaw is a mining engineer with 25 years’ experience in the Australian and
international mining industry. During his career, he has held numerous senior
operational and executive roles with a range of companies and spanning several
different commodities. He was formerly CEO of Adaman Resources, a privately owned
resource investment company. He was Chief Operating Officer for Saracen Mineral
Holdings from 2013 to 2017, a leading mid-tier gold producer. He was Chief Operating
Officer for Inter Mining and Navigator Resources, Operations Manager at St Ives Gold
Mines for Gold Fields Australia, Mining Manager for Albidon at the Munali Nickel Project
in Zambia and Chief Operating Officer for Fox Resources. He also worked for WMC
Limited at the Perseverance Nickel Mine and Leinster Nickel Operations.
Interest in shares and options
2,000,000 fully paid ordinary shares
583,333 options expiring 10 December 2022, exercisable at $0.106
583,333 options expiring 10 December 2023, exercisable at $0.114
583,334 options expiring 10 December 2024, exercisable at $0.122
Other directorships in listed entities
held in the previous three years
None
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Genesis Minerals Limited and controlled entities
Directors' Report
Gerry Kaczmarek
Non-Executive Director (Appointed 20 March 2018)
Qualifications
Experience
Interest in shares and options
B.Ec (Acc), CPA, MAICD
Mr Kaczmarek has over 40 years’ experience working predominantly in the resource
sector and specialising in accounting and finance and company management with
several emerging and leading mid-tier Australian gold companies. He was Chief
Financial Officer and Company Secretary for Saracen Mineral Holdings from 2012 to
2016. He served as Chief Financial Officer and Company Secretary at Troy Resources
from 1998 to 2008 and from 2017 to 2019. Earlier in his career, he held a range of
positions with the CRA/Rio Tinto group and was Chief Financial Officer for a number of
other Mid-Tier and Junior Mining Companies.
1,180,925 fully paid ordinary shares
800,000 options expiring 29 November 2021, exercisable at $0.053
1,200,000 options expiring 29 November 2022, exercisable at $0.056
583,333 options expiring 10 December 2022, exercisable at $0.106
583,333 options expiring 10 December 2023, exercisable at $0.114
583,334 options expiring 10 December 2024, exercisable at $0.122
Other directorships in listed entities
held in the previous three years
None
Nic Earner
Qualifications
Experience
Non-Executive Director (Appointed 24 October 2019)
B.Eng. (Hons)
Mr Earner is a chemical engineer with over 25 years’ experience in technical and
operational optimisation and management, and has held a number of executive roles
in mining and processing. He is currently the Managing Director of Alkane Resources
Limited and is Non-Executive director of Australian Strategic Materials Limited. Mr
Earner is the appointed representative of Alkane Resources Limited under the ongoing
strategic relationship between the companies.
Interest in shares and options
None
Other directorships in listed entities
held in the previous three years
Mr Earner is managing director of Alkane Resources Limited and is non-executive
director of Australian Strategic Materials Limited.
COMPANY SECRETARY
Geoff James
Qualifications
Experience
Appointed 20 October 2015
B Bus, CA, AGIA, ACG
Mr James is a Chartered Accountant and a Chartered Secretary. He is an experienced
finance professional with over 20 years’ experience in senior management roles.
DIRECTORS' MEETINGS
Attendances by each director during the year were as follows:
Directors Meetings
Tommy McKeith
Michael Fowler
Craig Bradshaw
Gerry Kaczmarek
Nic Earner
A
5
5
5
5
3
B
5
5
5
5
5
Notes
A – Number of meetings attended.
B – Number of meetings held during the time the director held office during the year.
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were the exploration and development of gold deposits in Western Australia.
DIVIDENDS
No dividend was declared or paid during the current or previous year.
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Genesis Minerals Limited and controlled entities
Directors' Report
OPERATING REVIEW
Ulysses Gold Project, WA (Genesis: 100%)
The Ulysses Gold Project is located in Western Australia,
approximately 30km south of Leonora and 200km north of the
regional mining centre of Kalgoorlie (Figure 1). During the year the
Company’s activities were mainly focused on the Ulysses Gold
Project where the Company undertook a major drilling program,
announced a major resource upgrade and advanced work on an
expanded Feasibility Study on the construction of a standalone
treatment facility at Ulysses following the acquisition of the
Kookynie tenements.
Drilling Results
Following the announcement of the acquisition of the Kookynie
tenements in late June 2020, the Company commenced a
+35,000m Reverse Circulation (RC) and diamond drilling program
aimed at expanding and upgrading the 1.28Moz Resource as the
foundation for the expanded Feasibility Study for the Greater
Ulysses Project.
The RC and diamond drilling program delivered highly
encouraging results 1 at the Admiral, Butterfly, Clark and Orient
Well deposits (Figures 3 and 4), located on the recently acquired
Kookynie tenements and now part of the expanded 100%-owned
Ulysses Gold Project.
The results have confirmed the presence of significant shallow gold
mineralisation at all deposits which are open at depth and along
strike.
The Admiral, Butterfly, Clark and Orient Well deposits are within
the Ulysses-to-Orient Well structural corridor that are continuing to
be targeted by systematic resource drilling.
The ongoing drilling program successfully expanded and upgraded
the existing Mineral Resources.
Figure 1. Project location
Figure 2. Genesis exploration team reviewing Admiral core
1 Refer to GMD’s ASX announcements dated 31 August, 15 September, 29 September, 21 October, 9 November, 9 December 2020, 13
January, 8 February, 15 February, 17 February, 23 March, 9 April, 12 May, 15 June, 1 July and 24 August 2021 for full details of the
exploration results contained in this report.
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Genesis Minerals Limited and controlled entities
Directors' Report
Figure 3. Deposit locations
Figure 4. Ulysses-to-Orient Well structural corridor with current gold resources highlighted
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Genesis Minerals Limited and controlled entities
Directors' Report
Updated Mineral Resource Estimate
The highly successful drilling programs completed at the Ulysses Project over the second half of 2020 allowed Genesis to
update the Mineral Resource in late March 2021 at which time Genesis reported a Mineral Resource Estimate of 1,608,000oz
of gold, a 26 per cent increase in contained ounces from the June 2020 Mineral Resource.
The updated Measured, Indicated and Inferred Mineral Resource now totals 27.3Mt @ 1.8g/t gold for 1,608,000 ounces of
contained gold (refer to Table 1 for full details), which represents an increase of 327,000 ounces over the previous June 2020
Mineral Resource. Importantly, the higher-confidence Measured and Indicated component has increased by 237,000 ounces
(32%) to 984,000 ounces, with this component of the Resource available for conversion to Ore Reserves following the
completion of mining studies.
Refer to the ASX announcement dated 29 March 2021 for full details of the updated Mineral Resource Estimate.
•
Admiral-Butterfly-Clark Group
The total combined Mineral Resource for the Admiral-Butterfly-Clark (“ABC”) Group deposits (see Figure 4) has increased by
87% (213,000 ounces) to 10.3Mt @ 1.4g/t Au for 459,000 ounces. Details of the individual Resources are tabulated in Table
1 and shown in plan view in Figure 5.
The 2020 drill program was successful in confirming historical drilling data and the continuity of mineralisation, as well as
upgrading parts of the Inferred Resources for the Admiral, Butterfly and Clark deposits. Drilling also extended the limits of those
deposits.
The combined Admiral, Butterfly and Clark Resource has increased from 245,000 to 339,000 ounces, a 39% increase in
contained ounces. Importantly the Measured and Indicated categories have increased by 59,000 ounces from 137,000 ounces
to 196,000 ounces for these three deposits, with the grade remaining steady.
Initial Resources were estimated for the King, Danluce and Butterfly North deposits (see Figure 5 and Table 1) and have been
included in the combined shallow Resource. The inclusion of the King, Danluce and Butterfly North Resources has added
121,000 ounces to the total Mineral Resource.
All Resources remain open, and drilling programs will continue throughout 2021 targeting extensions to all Resources as well
as new near-mine discoveries.
Figure 5. ABC Group Resource locations
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Directors' Report
•
Orient Well Group
The combined Mineral Resource for the Orient Well Group of deposits (see Figure 4) has increased by 305% (186,000 ounces)
to 7.3Mt @ 1.1g/t Au for 247,000 ounces. Details of the individual Resources are tabulated in Table 1.
The Orient Well Resource has increased by 210% (128,000 ounces) to 5.43Mt @ 1.1g/t Au for 189,000 ounces.
The 2020 drill program was successful in confirming historical drilling data at Orient Well, confirming the continuity of
mineralisation and upgrading parts of the Inferred Resources for the Orient Well deposit. Drilling also significantly extended the
limits of the Orient Well deposit.
Initial Resource estimates were completed for the Orient Well East and Orient Well NW deposits. The inclusion of the Orient
Well East and NW deposits has added an additional 42,000 ounces to the total Mineral Resource.
The Orient Well, Orient Well East and Orient Well NW deposits remain open and extensions to all of these Resources will
continue to be targeted in 2021.
•
Ulysses
The Ulysses Mineral Resource was reduced by 29,000 ounces to 838,000 ounces as a result of adjusting the portion of the
Resource model that is above 0.5g/t Au and constraining the model to a depth of <~130m below surface (previously ~200mbs)
to reflect potential development by open pit mining. The Ulysses Resource now stands at 7.74Mt @ 3.4g/t Au for 838,000
ounces.
Drilling in 2020 to upgrade part of the high-grade portion of the Mineral Resource and to define the margins of the Ulysses West
shoot, reported at a cut off of 2g/t gold, resulted in a slight increase in the Mineral Resource from 695,000 ounces to 705,000
ounces (refer to Table 1 for details) which will form part of the mining evaluation for the Feasibility Study.
The overall Mineral Resource for the Ulysses Project has increased by +900% in contained ounces over the past 5-years. The
combined acquisition and discovery cost is approximately A$26/oz with 61% of the total contained ounces for the Ulysses
Project in the Measured and Indicated categories.
Figure 6. Ulysses Project resource growth
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Genesis Minerals Limited and controlled entities
Directors' Report
Resource Growth and New Discovery Drilling
Figure 7. Drilling at the Puzzle pit during the year
During the year Genesis has been successful in identifying significant mineralisation at Admiral where drilling intersected a high-
grade zone with a 5m composite sample from 21USRC892 of 5m @ 60.7g/t Au from 265m. Coarse visible gold was observed
between from 265m to 266m. This hole was part of a program of five holes with further results pending from a diamond drilling
program.
High-grade mineralisation was intersected at Admiral West with 2m @ 10.55g/t Au from 103m returned from 21USRC925
targeting Ulysses style high-grade gold mineralisation. Drilling will continue to follow up this high-grade mineralisation targeting
the intersection of either the Hercules shear or shallow-dipping shears in the footwall of the Admiral shear and the Butterfly
dolerite as the dolerite changes orientation to the north-west from east to west.
Figure 8. Location of target zones at Admiral-Clark-Butterfly
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Directors' Report
A new discovery is emerging at Puzzle North which is developing into a significant zone of shallow gold mineralisation (see
Figures 3 and 9). The Puzzle North discovery is located 700m north of the shallow 59,000oz Puzzle Mineral Resource.
Significant mineralisation defined at Puzzle North included:
o 106m @ 0.71g/t Au from 10m
Including 16m @ 1.54g/t Au from 37m
o 41m @ 1.20g/t Au from 38m
21USRC853
21USRC855
Including 10m @ 2.77g/t Au from 62m
o 14m @ 2.44g/t Au from 106m to end of hole 21USRC855
o 40m @ 2.52g/t Au from 44m
21USRC911
o 84m @ 1.98g/t Au from 84m
21USRC912
Including 10m @ 6.31g/t Au from 116m
Including 8m @ 5.94g/t Au from 157m
o 11m @ 4.23g/t Au from 89m
o 18m @ 0.69g/t Au from 61m
o 34m @ 1.16g/t Au from 101m
o 3m @ 3.40g/t Au from 148m
o 60m @ 3.03g/t Au from 106m
21USRC916
21USRC917
21USRC852 (extension)
21USRC852 (extension)
21USRC855 (extension)
Including 8m @ 12.9g/t Au from 126m
o 69m @ 2.59g/t Au from 21m
21USRC919
Including 8m @ 11.70g/t Au from 78m
Figure 9. Puzzle and Puzzle North hole locations and results.
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Directors' Report
Gold mineralisation is constrained to the granite immediately adjacent to the moderately east-dipping granite-greenstone
contact. Mineralisation is drill defined over ~400m and is interpreted to be best developed within a zone up to 40 to 80m wide,
with a north-south orientation and dipping parallel to the granite-greenstone contact.
Gold mineralisation is associated with increased pyrite content (0.5 to 3%) and quartz veining within the hematite-sericite altered
granite.
Due to the success of the results to date, a major 8,300m RC and diamond program was completed at Puzzle North and Puzzle
in July and August targeting extensions at depth and to the north and south of the Puzzle North prospect. Results are pending.
In-fill drilling will also be undertaken to allow a Mineral Resource Estimate to be completed as soon as possible and to better
understand the controls on the gold mineralisation.
The granite-greenstone contact (Figure 10) that controls the location of the new Puzzle North discovery and the Puzzle deposit
is interpreted to extend over 6km of strike. No significant drilling has been completed along this corridor for nearly 20 years.
This extensive mineralised corridor represents a very large target for the discovery of new gold deposits. Exploration in 2021
along this corridor outside of the Puzzle and Puzzle North areas will include geological mapping, geophysical surveying and air-
core drilling which will be followed up by RC drilling as required.
Figure 10. Puzzle Mineralised Corridor
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Directors' Report
During 2021 a regional mapping and 3D geological interpretation program was completed that identified a number of target
zones outside of the known resource areas within the Ulysses to Orient Well mine corridor that will be tested during the 2022
FY (see Figure 11).
Feasibility Study
Figure 11. Exploration targets FY 2022 highlighted by red polygons
Genesis progressed work on a Feasibility Study that allows for the construction of a standalone treatment facility at Ulysses.
The Feasibility Study will consider that mineralisation will be sourced from both the Ulysses deposit and a focus on the Admiral-
Clark-Butterfly area and Orient Well for initial sources of open pit mineralisation.
A number of study work packages were advanced during the year including:
• Significant advancement towards completion of the Metallurgical test work program except for Puzzle;
• Open Pit Geotechnical wall stability analysis;
• Process plant and NPI design finalisation;
• Detailed hydrological and hydrogeological work packages;
• Advancement of Open Pit and Underground optimisations and mine design;
• Operating and Capital cost estimation;
• Completion and submission of the Works Approval submission;
• Advancement of Mining Proposal and Mine Closure Plan submissions;
•
• Ongoing negotiations to secure the Miscellaneous Licences supporting the mining proposal.
Finalisation of the licences to take and use water across the project; and
As announced to the ASX on 22 September 2021, the Feasibility Study is being reassessed on the basis of a larger project with
the potential for an enhanced production profile, improved economics and stronger financial returns.
Desdemona South JV Gold Project, WA (Genesis: RTE 80%)
Desdemona South comprises a strategically located (Figure 3) tenement package covering a total area of ~156km2 immediately
north of and contiguous with Genesis’ 100%-owned 1.6Moz Ulysses Gold Project, and includes a range of exploration targets
which will strengthen and expand the Company’s growth pipeline in the Leonora region.
The Joint Venture provides Genesis with over 10km of strike of mafic stratigraphy (similar to Ulysses) to explore within the same
regional structural corridor that controls gold mineralisation in the district.
The initial Farm-In terms for the Desdemona South Project are as follows:
• Stage 1 Expenditure: Genesis must incur expenditure of not less than $250,000 (Minimum Expenditure) on the JV
Area within 18 months of commencement. Genesis has met this requirement.
• Stage 2 Expenditure: Genesis may earn a 60% interest in the JV Area by incurring additional expenditure of $750,000
expenditure (total spend of $1,000,000) on the JV Area within 36 months of commencement.
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Once Genesis earns a 60% interest, Kin may elect to form a Joint Venture with participating interests of 60% Genesis and 40%
Kin or grant Genesis the right to elect to sole contribute or form a JV. Once Genesis earns a 70% interest (if Kin does not elect
to from a JV at 60%), Kin may elect to form a Joint Venture with participating interests of 70% Genesis and 30% Kin or grant
Genesis the right to elect to sole contribute or form a JV to move to 80%. Genesis would need to spend $2.6 million in total to
earn an 80% interest in the JV.
A 5,000m aircore drilling program was completed in July 2021. Assay results are pending for this program.
Barimaia JV Gold Project, WA (Genesis: 65%)
The Barimaia Gold Project is located in the Murchison District of Western Australia, 10km south-east of the 6Moz 2 Mt Magnet
Gold Mine, operated by ASX-listed Ramelius Resources Limited. No exploration activities were completed during the 2021 FY
however a small aircore program was completed in August and September of 2021.
TABLE 1: MINERAL RESOURCE ESTIMATE – ULYSSES GOLD PROJECT
March 2021 Resource Estimate 0.5g/t Cut off above 280mRL 2g/t Below 280mRL
C
O
G
g/t
Deposit
Ulysses
Measured
Indicated
Inferred
Total
Tonnes Au
Au
Tonnes
Au
Au
Tonnes
Au
Au
Tonnes
Au
Au
T
g/t Ounces
T
g/t Ounces
T
g/t Ounces
T
g/t Ounces
High Grade
2.0
658,000
6.1 129,000
908,000
6.3 184,000
188,000
8.2
50,000
1,754,000
Shear
137,000
1.3
6,000
2,911,000
2.4 221,000
1,765,000
3.2 183,000
4,813,000
522,000
1.8
29,000
653,000
1.7
36,000
1,175,000
6.4
2.6
1.7
363,000
410,000
65,000
Ulysses East
Sub Total
ABC
Admiral
Clark
Butterfly
0.5
0.5
0.5
Butterfly North
0.5
0.5
0.5
0.5
0.3
0.5
0.5
0.3
0.5
King
Danluce
Historic
Stockpiles
Sub Total
Orient Well
Orient Well
OW Laterites
Orient Well East
Orient Well NW
Double J
Sub Total
Kookynie
Puzzle
Historic
Stockpile
Sub Total
795,000
5.3 135,000
4,341,000
3.1 434,000
2,607,000
3.2 269,000
7,743,000
3.4
838,000
1,783,000
2.0 112,000
1,671,000
757,000
857,000
1.2
2.0
30,000
946,000
55,000
779,000
1,305,000
1.0
42,000
591,000
623,000
958,000
1.4
1.2
1.4
1.4
1.0
0.9
73,000
3,453,000
35,000
1,703,000
35,000
1,636,000
28,000
623,000
20,000
1,896,000
28,000
958,000
80,000
1.1
3,000
80,000
1.7
1.2
1.7
1.4
1.0
0.9
1.1
185,000
65,000
89,000
28,000
62,000
28,000
3,000
4,702,000
1.6 238,000
5,649,000
1.2 221,000 10,351,000 1.4
459,000
3,605,000
1.1 123,000
1,833,000
142,000
0.6
3,000
177,000
457,000
603,000
434,000
0.7
10,000
25,000
1.1
0.7
1.3
1.2
0.5
66,000
5,438,000
4,000
319,000
19,000
457,000
23,000
603,000
400
459,000
1.1
0.7
1.3
1.2
0.7
189,000
7,000
19,000
23,000
10,000
4,180,000
1.0 136,000
3,094,000
1.1 112,000
7,274,000
1.1
247,000
1,002,000
1.1
36,000
725,000
1.0
23,000
1,727,000
1.1
59,000
175,000
0.7
4,000
175,000
0.7
4,000
1,177,000
1.1
40,000
725,000
1.0
23,000
1,902,000
1.0
63,000
Project Total
795,000
5.3 135,000 14,400,000 1.8 849,000 12,075,000 1.6 625,000 27,270,000 1.8 1,608,000
NB. Rounding discrepancies may occur
2 Refer Ramelius Resources’ ASX Announcement dated 22 February 2017.
15
Genesis Minerals Limited and controlled entities
Directors' Report
Full details of the Ulysses Mineral Resource estimate are provided in the Company’s ASX announcement dated 29 March 2021
titled “Ulysses Mineral Resource Increases to 1.6 Million Ounces Following Continued Drilling Success”.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcements dated 29 March 2021 and the Company confirms that all material assumptions and technical
parameters underpinning the mineral resource estimates in the market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented
have not materially changed from the original market announcements.
COMPETENT PERSONS STATEMENTS
The information in this report that relates to Exploration Results is based on information compiled by Mr Michael Fowler who is
a full-time employee of the Company, a shareholder of Genesis Minerals Limited and is a member of the Australasian Institute
of Mining and Metallurgy. Mr Fowler has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Fowler consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears.
The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent
Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne
Geological Services and is a shareholder of Genesis Minerals Limited. Mr Payne has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves”. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context
in which it appears.
16
Genesis Minerals Limited and controlled entities
Directors' Report
FINANCE REVIEW
The Group recorded an operating loss after income tax for the year ended 30 June 2021 of $16,349,740 (2020: $5,851,124).
The operating loss for the year arose from expenditure on exploration activities as part of its strategy to develop a long-life,
standalone mining operation at the Ulysses Gold Project.
At 30 June 2021 cash assets available totalled $10,966,166 (2020: $11,145,421).
The net assets of the consolidated entity increased from $15,104,943 to $23,908,787 at June 2021. This increase is largely
attributable to the issues of equity during the year of $24,804,351 (net of costs) offset by the operating loss recorded for the
year.
Operating Results for the Year
Summarised operating results are as follows:
2021
2020
Revenues
$
Results
$
Revenues
$
Results
$
Group revenues and loss from ordinary activities before
income tax expense
79,981
(16,349,740)
71,385
(5,851,124)
Shareholder Returns
Basic and diluted loss per share (cents)
2021
(0.85)
2020
(0.45)
Factors and Business Risks Affecting Future Business Performance
The following factors and business risks could have a material impact on the Group’s success in delivering its strategy:
Access to Funding
The Group’s ability to successfully develop projects is contingent on the ability to fund those projects from operating cash flows
or through affordable debt and equity raisings.
Exploration and Development
The business of exploration, project development and ultimately production, by its nature, contains elements of significant risk
with no guarantee of success. Ultimate and continued success of these activities is dependent on many factors such as:
discovery of economically recoverable ore reserves;
access to adequate capital for project development;
design and construction of efficient development and production infrastructure within capital expenditure budgets;
securing and maintaining title to interests;
obtaining necessary consents and approvals;
access to competent operational management and appropriately skilled personnel;
•
•
•
•
•
•
• mining risks;
•
•
•
operating risks;
environmental risks; and
financial risks.
Commodity Prices and Exchange Rates
Commodity prices fluctuate according to changes in demand and supply. The Group is exposed to changes in commodity prices,
which could affect the profitability of the Group’s projects. Significant adverse movements in commodity prices could also affect
the ability to raise debt and equity to fund exploration and development of projects. The Group will be exposed to changes in
the US Dollar. Gold sales are denominated in US Dollars.
SHARES UNDER OPTION
At the date of this report there are 13,200,000 unissued ordinary shares in respect of which options are outstanding.
17
Genesis Minerals Limited and controlled entities
Directors' Report
Balance at the beginning of the year
Movements of share options during the year
Exercise of options:
Exercised at 4.2 cents
Exercised at 4.5 cents
Exercised at 4.8 cents
Exercised at 4.9 cents
Issue of options:
Exercisable at 10.6 cents
Exercisable at 11.4 cents
Exercisable at 12.2 cents
Total number of options outstanding as at 30 June 2021
Exercise of options:
Exercised at 5.3 cents
Exercised at 5.6 cents
Total number of options outstanding at the date of this report
The balance is comprised of the following:
Expiry date
29 November 2021
13 December 2021
29 November 2022
10 December 2022
10 December 2023
10 December 2024
Total
Exercise price (cents)
5.3
4.5
5.6
10.6
11.4
12.2
Number of options
25,800,000
(4,000,000)
(1,200,000)
(10,000,000)
(800,000)
2,133,332
2,133,333
2,133,335
13,200,000
(1,500,000)
(1,500,000)
13,200,000
Number of options
800,000
4,800,000
1,200,000
2,133,332
2,133,333
2,133,335
13,200,000
No person entitled to exercise any option referred to above has or had, by virtue of the option, a right to participate in any
share issue of any other body corporate.
At the date of this report there are 12,050,000 unissued ordinary shares in respect of which performance rights are outstanding.
Balance at the beginning of the year
Movement of performance rights during the year
Issued 15 September 2020, expiring 31 December 2021
Total number of performance rights outstanding as at 30 June 2021
Exercise of vested performance rights
Total number of performance rights outstanding at the date of this report
The balance is comprised of the following:
Expiry date
31 December 2021
Total
Number of performance
rights
-
13,500,000
13,500,000
(1,450,000)
12,050,000
Number of performance
rights
12,050,000
12,050,000
No person entitled to exercise any performance right referred to above has or had, by virtue of the performance right, a right
to participate in any share issue of any other body corporate.
INSURANCE OF DIRECTORS AND OFFICERS
During or since the financial year, the company has paid premiums insuring all the directors of Genesis Minerals Limited
against costs incurred in defending proceedings for conduct involving:
(a) a wilful breach of duty; or
(b) a contravention of sections 182 or 183 of the Corporations Act 2001,
as permitted by section 199B of the Corporations Act 2001.
The contract of insurance prohibits disclosure of the amount of the premium paid.
NON-AUDIT SERVICES
There were no non-audit services provided by the entity's auditor, Hall Chadwick (formerly Bentleys), or associated entities.
18
Genesis Minerals Limited and controlled entities
Directors' Report
RISK MANAGEMENT
The board is responsible for ensuring that risks and also opportunities, are identified on a timely basis and that activities are
aligned with the risks and opportunities identified by the board.
The Group believes that it is crucial for all board members to be a part of this process, and as such the board has not
established a separate risk management committee.
The board has a number of mechanisms in place to ensure that management's objectives and activities are aligned with the
risks identified by the board. These include the following:
• Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders needs and
manage business risk.
Implementation of board approved operating plans and budgets and board monitoring of progress against these budgets.
•
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
The Group raised $24,900,121 (before costs) through the issue of 514,288,416 ordinary shares to institutional and
sophisticated investors during the year. The group issued 16,000,000 ordinary shares pursuant to the exercise of options
raising $741,200.
AFTER BALANCE DATE EVENTS
On 22 September 2021, Genesis announced a strategic funding and Board restructure initiative led by Raleigh Finlayson,
which will see him appointed as Managing Director and become a significant shareholder. Mr Finlayson is the former Managing
Director of Saracen Mineral Holdings (ASX: SAR) and Northern Star Resources (ASX: NST).
Under the proposal, which is subject to shareholder approval, Genesis will raise $16 million via a share Placement at 6c a
share. Mr Finlayson will subscribe for $7 million of shares in the Placement and Northern Star will subscribe for $3 million of
shares. The remainder of the Placement will be offered to existing and new institutional and sophisticated investors, including
current and proposed Directors.
Existing Genesis shareholders will have the opportunity to participate in a 1-for-30 non renounceable Entitlement Offer at 6c
per share raising up to an additional $4.8 million. Placement shares will qualify for the Entitlement Offer. Shares acquired via
the Placement and the Entitlement Offer will come with a free one-for-two attaching two-year unlisted option exercisable at
10c. Placement options will not be able to be exercised to participate in the Entitlement Offer.
Mr Finlayson has entered into a part-time consulting agreement with Genesis and he has the right to be issued 245 million
unlisted options with a 10.5c strike price.
Mr Finlayson will be appointed Managing Director of Genesis by no later than 31 March 2022. Mr Finlayson has the right
(subject to shareholder approval), upon appointment as Managing Director, to be issued 30 million performance rights under
the Genesis Incentive Performance Rights Plan, which will have vesting hurdles tied to a 2.5Moz JORC Resource, a 1.0Moz
JORC Reserve and Genesis becoming a gold producer (Performance Rights).
Former FMG Managing Director and CEO Neville Power and highly experienced corporate lawyer Michael Bowen will be
invited to join the Board as Non-Executive Directors following conclusion of the Placement. Each will be issued with 15 million
options at an exercise price of 10.5c with a four-year expiry (Director Options). Tommy McKeith will continue as Non-Executive
Chairman and Gerry Kaczmarek will continue as Non-Executive Director.
Under the transition plan, Michael Fowler will remain Genesis Managing Director until Mr Finlayson's appointment becomes
effective. At that time, Mr Fowler will retire from the Board. Current Non-Executive Director Craig Bradshaw will retire from the
Genesis Board at the upcoming Genesis AGM.
Non-Executive Director and Alkane Resources Limited (“Alkane”) representative Nic Earner will retire from the Board at the
upcoming Genesis AGM, assuming all necessary shareholder approvals for the Placement and Board restructure are obtained.
Alkane has also agreed to subscribe for any shortfall under the Entitlement Offer subject to scale back to ensure Alkane’s
voting power in Genesis does not exceed 20%. In addition, the 2019 Subscription Agreement between Alkane and Genesis,
under which Alkane was provided with Board representation and certain other rights, will be terminated with effect from
completion of the Entitlement Offer.
Shareholder approvals for the Placement, Alkane Subscription, Consultant Options, Performance Rights, Board appointments
and Director Options will be sought at the forthcoming AGM.
Refer to the ASX announcement dated 22 September 2021 for full details of the strategic funding and Board restructure.
Subsequent to the end of the financial year 1,450,000 performance rights vested on 4 September 2021 following satisfaction
of performance hurdles.
Apart from the above, no matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial years.
19
Genesis Minerals Limited and controlled entities
Directors' Report
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
All information regarding likely developments and expected results is contained in the “Operating and Financial Review” section
in this report.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to significant environmental regulation in respect to its exploration activities.
The Group aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that it is aware of and
is in compliance with all environmental legislation. The directors of the Group are not aware of any breach of environmental
legislation for the year under review.
The directors have considered the National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduces a
single national reporting framework for the reporting and dissemination of information about greenhouse gas emissions,
greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors
have determined that the NGER Act will have no effect on the Group for the current, nor subsequent, financial year. The
directors will reassess this position as and when the need arises.
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 any part of those proceedings.
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
page 26.
CORPORATE GOVERNANCE
A copy of Genesis’ 2021 Corporate Governance Statement, which provides detailed information about governance, and a copy
of Genesis’ Appendix 4G which sets out the Company’s compliance with the recommendations in the fourth edition of the ASX
Corporate Governance Council’s Principles and Recommendations is available on the corporate governance section of the
Company’s website at http://www.genesisminerals.com.au/governance.php
REMUNERATION REPORT (AUDITED)
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act
2001.
REMUNERATION POLICY
The remuneration policy of Genesis Minerals Limited has been designed to align director and executive objectives with
shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives
based on key performance areas affecting the Group's financial results. The Board of Genesis Minerals Limited believes the
remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and
manage the Group.
The Board's policy for determining the nature and amount of remuneration for board members and senior executives of the
Group is as follows:
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed
by the Board. All executives receive a base salary (which is based on factors such as length of service and experience) and
superannuation. The Board reviews executive packages annually by reference to the Group's performance, executive
performance and comparable information from industry sectors and other listed companies in similar industries.
The Board may exercise discretion in relation to approving incentives, bonuses, options and performance rights. The policy is
designed to attract the highest calibre of executives and reward them for results in long-term growth in shareholder wealth.
Executives are also entitled to participate in employee incentive schemes.
The executive directors and executives receive a superannuation guarantee contribution required by the government, which for
the year ended 30 June 2021 was 9.5% (unless otherwise stated), and do not receive any other retirement benefits. The
superannuation guarantee contribution increased to 10% effective 1 July 2021.
All remuneration paid to directors and executives is valued at the cost to the Group and expensed. Options are valued using
the Black-Scholes methodology. Performance rights are valued by using the Company’s 5 day volume weighted average share
20
Genesis Minerals Limited and controlled entities
Directors' Report
price prior to the grant date. For each performance hurdle a probability factor is assigned based on the Company’s estimate of
the performance hurdle being met. For the performance hurdles that have a market-based performance hurdle, the probability
factor is determined by using a Monte Carlo Simulation technique.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration annually, based
on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate
amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting
(currently $500,000). Fees for non-executive directors are not linked to the performance of the Group. However, to align
directors' interests with shareholder interests, the directors are encouraged to hold shares in the Group and are able to
participate in employee incentive schemes.
PERFORMANCE BASED REMUNERATION
Executive directors and executives have been issued with performance rights under the Group’s Performance Rights Plan. The
performance rights will only vest into fully paid ordinary shares if performance hurdles are met. Performance hurdles set include
milestones for remaining employed with the Group, growth in Mineral Resources, project development and increases in the
Company’s share price.
GROUP PERFORMANCE, SHAREHOLDER WEALTH AND DIRECTORS' AND EXECUTIVES' REMUNERATION
The remuneration policy has been tailored to increase the direct positive relationship between shareholders' investment
objectives and directors and executive's performance. The Group facilitates this process by executive directors and executives
participating in incentive scheme issues to encourage the alignment of personal and shareholder interests. The Group believes
this policy will be effective in increasing shareholder wealth.
Over the past 5 years, the Group’s activities have primarily been involved with mineral exploration and pre-development
activities, with a small-scale mining campaign completed during the 2017 financial year. Shareholder wealth is dependent upon
exploration success and has fluctuated accordingly in addition to being influenced by broader market factors.
The table below sets out the performance of the Group and the movement in the share price:
2021
$
2020
$
2019
$
2018
$
Net Loss
Share Price at Start of Year
Share Price at End of Year
(16,349,740)
$0.052
$0.068
(5,851,124)
$0.023
$0.052
(7,036,589)
$0.043
$0.023
(5,573,467)
$0.016
$0.043
2017
$
(718,341)
$0.019
$0.016
USE OF REMUNERATION CONSULTANTS
The Group did not employ the services of any remuneration consultants during the financial year ended 30 June 2021.
VOTING AND COMMENT MADE ON THE GROUP'S 2020 ANNUAL GENERAL MEETING
The Company received 99.79% of “yes” votes on its remuneration report for the 2020 financial year. The Company did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
DETAILS OF REMUNERATION
Details of the remuneration of the directors and the key management personnel of the Group are set out in the following table.
The key management personnel of the Group comprise the directors. Given the size and nature of operations of the Group,
there are no other employees who are required to have their remuneration disclosed in accordance with the Corporations Act
2001.
Key management personnel compensation
Short-term benefits
Post-employment benefits
Share-based payments
2021
$
433,309
33,258
194,326
660,893
2020
$
402,702
33,391
49,753
485,846
21
Genesis Minerals Limited and controlled entities
Directors' Report
Key management personnel of the Group
Short-Term
Salary & Fees
Post
Employment
Superannuation
Total
Share-Based
Payments
Options and
Performance
Rights
Proportion of
Remuneration
Represented
by Share-
Based
Payments
Proportion of
Remuneration
Performance
Based
$
$
$
$
%
%
Directors
Tommy McKeith
2021
2020
Michael Fowler
2021
2020
Craig Bradshaw
2021
2020
Gerry Kaczmarek
2021
2020
Nic Earner
2021
2020
2021
2020
54,342
50,228
275,0001
268,4351
35,688
31,425
32,591
30,000
35,6882
22,6142
433,309
402,702
5,162
4,772
25,000
24,344
-
1,425
3,096
2,850
-
-
33,258
33,391
50,050
20,372
85,833
11,469
27,292
3,823
31,151
14,089
-
-
194,326
49,753
109,554
75,372
385,833
304,248
62,980
36,673
66,838
46,939
35,688
22,614
660,893
485,846
45.69%
27.03%
22.25%
3.77%
43.33%
10.42%
46.61%
30.02%
-%
-%
-%
-%
22.25%
-%
-%
-%
-%
-%
-%
-%
1. M Fowler - includes payment of unused leave entitlements of $nil (2020: $16,163).
2. N Earner – appointed as Director on 24 October 2019.
Service agreements
On appointment to the Board, all non-executive directors enter into a service agreement with the Group in the form of a letter
of appointment. The letter summarises the Board policies and terms, including compensation, relevant to the office of director.
Effective from 7 August 2020, the Non-Executive Chairman receives a fee of $54,795 per annum, plus statutory
superannuation, and Non-Executive Directors receive a fee of $32,877 per annum, plus statutory superannuation.
Mr Fowler has entered into an executive service agreement with the Company. He is engaged to provide services in the
capacity of Managing Director and CEO.
Mr Fowler is entitled to a minimum notice period of six months from the Company and the Company is entitled to a minimum
notice period of three months from Mr Fowler. In the event of a redundancy due to a successful takeover or merger of the
Company, Mr Fowler is entitled to a payment equal to 12 months’ salary.
Effective from 1 January 2020, Mr Fowler’s salary was set at $275,000 per annum plus superannuation. From 1 July 2021, Mr
Fowler receives $27,500 superannuation per annum.
Equity instrument disclosures relating to key management personnel
Options and performance rights provided as remuneration and shares issued on exercise/conversion of such options and
performance rights
Options
6,400,000 options were issued during the year (2020: Nil), valued at $169,387 (2020: $nil). 5,200,000 options were exercised
during the year (2020: 1,800,000), nil options lapsed during the year (2020: 800,000) and nil options expired (2020: 4,800,000).
Shareholder approval was received on 27 November 2020 for the issue of the options under ASX Listing Rule 10.14.
Details of the vesting profiles of the options granted as remuneration to key management personnel of the Group are detailed
below:
22
Genesis Minerals Limited and controlled entities
Directors' Report
Directors
Number of
Options
Issued
Grant
Date
Expiry
Date
Exercise
Price
Fair Value
Per Option
at Grant
Date
Year in
Which
Grant
Vests
%
Vested
During
2021
%
Forfeited
During
2021
Tommy McKeith
Tranche 2
-
Tranche 3
-
Tranche 1
-
Tranche 2
-
-
Tranche 3
Michael Fowler
Tranche 3
-
Craig Bradshaw
Tranche 1
-
Tranche 2
-
-
Tranche 3
Gerry Kaczmarek
-
-
-
-
-
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
Option holdings
1,500,000 29/11/2018 29/11/2021
1,500,000 29/11/2018 29/11/2022
966,666 10/12/2020 10/12/2022
966,667 10/12/2020 10/12/2023
966,667 10/12/2020 10/12/2024
$0.053
$0.056
$0.106
$0.114
$0.122
$0.0138
$0.0161
$0.0219
$0.0270
$0.0305
2020
2021
2021
2022
2023
-%
100%
100%
-%
-%
3,600,000 13/12/2017 13/12/2021
$0.045
$0.0152
2020
-%
583,333 10/12/2020 10/12/2022
583,333 10/12/2020 10/12/2023
583,334 10/12/2020 10/12/2024
800,000 29/11/2018 29/11/2021
1,200,000 29/11/2018 29/11/2022
583,333 10/12/2020 10/12/2022
583,333 10/12/2020 10/12/2023
583,334 10/12/2020 10/12/2024
$0.106
$0.114
$0.122
$0.053
$0.056
$0.106
$0.114
$0.122
$0.0219
$0.0270
$0.0305
$0.0138
$0.0161
$0.0219
$0.0270
$0.0305
2021
2022
2023
2020
2021
2021
2022
2023
100%
-%
-%
-%
100%
100%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
The numbers of options over ordinary shares in the Company held during the financial year by each director of Genesis
Minerals Limited and other key management personnel of the Group, including their personally related parties, are set out
below:
2021
Balance at
start of the
year
Granted as
compensation
Exercised
Other
changes
Balance at end
of the year
Vested and
exercisable
Directors of Genesis Minerals Limited
Options
Tommy McKeith
Michael Fowler
Craig Bradshaw
Gerry Kaczmarek
Nic Earner
3,000,000
6,000,000
2,000,000
2,800,000
-
13,800,000
2,900,000
-
1,750,000
1,750,000
-
6,400,000
-
(2,400,000)
(2,000,000)
(800,000)
-
(5,200,000)
-
-
-
-
-
-
5,900,000
3,600,000
1,750,000
3,750,000
-
15,000,000
3,966,666
3,600,000
583,333
2,583,333
-
10,733,332
2020
Balance at
start of the
year
Granted as
compensation
Exercised
Other
changes
Balance at end
of the year
Vested and
exercisable
Directors of Genesis Minerals Limited
Options
Tommy McKeith
Michael Fowler
Craig Bradshaw
Gerry Kaczmarek
Nic Earner
4,800,000
8,400,000
2,800,000
2,800,000
-
18,800,000
Performance Rights
-
-
-
-
-
-
(1,800,000)
-
-
-
-
(1,800,000)
-
(2,400,000)
(800,000)
-
-
(3,200,000)
3,000,000
6,000,000
2,000,000
2,800,000
-
13,800,000
1,500,000
6,000,000
2,000,000
1,600,000
-
11,100,000
5,000,000 performance rights were issued during the year (2020: $nil) to the Managing Director, Mr Michael Fowler. The
amount expensed during the year to the Statement of Profit or Loss was $85,833 (2020: $nil).
Shareholder approval was received on 4 September 2020 for the issue of the performance rights under ASX Listing Rule
10.14.
The performance rights were issued on 15 September 2020 and they expire on 31 December 2021. The performance rights
will only vest into fully paid ordinary shares if the following relevant performance hurdles are met prior to the expiry date:
23
Genesis Minerals Limited and controlled entities
Directors' Report
Performance Hurdle
These Performance Rights will vest and become exercisable upon the employee
remaining employed in the same role 12 months after the shareholder meeting date of
4 September 2020.
At the discretion of the Board these Performance Rights will vest and become
exercisable upon satisfactory meeting the following hurdles in the period to 31
December 2021:
• 1) Release of first JORC 2012 combined Mineral Resource > 2.0Moz Au for the
Greater Ulysses Project at a grade that supports reasonable prospects for
eventual economic extraction.
• 2) Approval of final investment decision by Genesis’ Board on the construction of a
standalone mining and processing operation at Ulysses
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 10-day VWAP of 1.5 x the Performance Rights Share Price of 7.6 cents
in the period leading up to 31 December 2021.
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 15-day VWAP of 1.75 x the Performance Rights Share Price of 7.6
cents in the period leading up to 31 December 2021.
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 20-day VWAP of 2.0 x the Performance Rights Share Price of 7.6 cents
in the period leading up to 31 December 2021.
Total
Share Price
for
Performance
Rights to Vest
Number of
Performance
Rights
500,000
1,000,000
1,000,000
$0.114
500,000
$0.133
750,000
$0.152
1,250,000
5,000,000
No performance rights vested into fully paid ordinary shares during the year as the vesting conditions have yet to be met. No
performance rights have been cancelled during the year.
Subsequent to the end of the financial year 500,000 performance rights vested following satisfaction of the performance hurdle
to remain employed in the same role 12 months after the shareholder meeting date of 4 September 2020 . These performance
rights were exercised and 500,000 shares were issued on 22 September 2021.
Performance rights holdings
2021
Balance at
start of the
year
Granted as
compensation
Exercised
Other
changes
Balance at end
of the year
Vested and
exercisable
Directors of Genesis Minerals Limited
Performance Rights
Michael Fowler
Share based compensation
-
-
5,000,000
5,000,000
-
-
-
-
5,000,000
5,000,000
-
-
No shares were issued to directors in lieu of fees and salary during the year. 2020: (nil).
24
Genesis Minerals Limited and controlled entities
Directors' Report
Share holdings
The numbers of shares in the Company held during the financial year by each director of Genesis Minerals Limited and other
key management personnel of the Group, including their personally related parties, are set out below.
2021
Directors of Genesis Minerals Limited
Ordinary Shares
Tommy McKeith
Michael Fowler
Craig Bradshaw
Gerry Kaczmarek
Nic Earner
2020
Directors of Genesis Minerals Limited
Ordinary Shares
Tommy McKeith
Michael Fowler
Craig Bradshaw
Gerry Kaczmarek
Nic Earner
Loans to key management personnel
Balance at
start of the
year
Received
during the year
on the exercise
of options
Other
changes
during the
year
Balance at
end of the
year
5,300,000
13,004,824
-
233,334
-
18,538,158
Balance at
start of the
year
-
2,400,000
2,000,000
800,000
-
5,200,000
Received
during the year
on the exercise
of options
1,033,908
(443,807)
-
147,591
-
737,692
Other
changes
during the
year
6,333,908
14,961,017
2,000,000
1,180,925
-
24,475,850
Balance at
end of the
year
3,000,000
12,167,230
-
200,000
-
15,367,230
1,800,000
-
-
-
-
1,800,000
500,000
837,594
-
33,334
-
1,370,928
5,300,000
13,004,824
-
233,334
-
18,538,158
There were no loans to key management personnel during the year. 2020: (nil).
Other key management personnel transactions with Directors and Director-related entities
There were no other transactions with key management personnel during the year. 2020: (nil).
END OF REMUNERATION REPORT
This Report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors.
Michael Fowler
Managing Director
Perth, 28 September 2021
25
To the Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations Act
2001
As lead audit partner for the audit of the financial statements Genesis Minerals Limited for the
financial year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
DOUG BELL CA
Partner
Dated this 28th day of September 2021
Genesis Minerals Limited and controlled entities
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
YEAR ENDED 30 JUNE 2021
REVENUE
EXPENDITURE
Exploration expenses
Salaries and employee benefits expense
Corporate expenses
Administration costs
Depreciation expense
Share based payments expense
LOSS BEFORE INCOME TAX
INCOME TAX BENEFIT/(EXPENSE)
LOSS FOR THE YEAR
Notes
2021
$
2020
$
(RESTATED)
3
2
13
4
79,981
71,385
(14,352,399)
(791,581)
(571,013)
(325,983)
(39,512)
(349,233)
(4,575,934)*
(526,800)
(408,614)
(352,643)
(8,765)
(49,753)
(16,349,740)
(5,851,124)
-
-
(16,349,740)
(5,851,124)
OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAX
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE
TO MEMBERS OF GENESIS MINERALS LIMITED
(16,349,740)
(5,851,124)
Basic and diluted loss per share (cents per share)
14
(0.85)
(0.45)
*Refer to Note 2: Change in Accounting Policy for details of the impact of the change in accounting policy relating to the treatment
of exploration and evaluation expenditure.
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
Notes to the Consolidated Financial Statements.
27
Genesis Minerals Limited and controlled entities
Consolidated Statement of Financial Position
AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
2021
$
2020
$
(RESTATED)
11,145,421
141,268
13,808
11,300,497
17,597
4,451,830*
4,469,427
10,966,166
78,795
24,857
11,069,818
245,193
23,352,807
23,598,000
34,667,818
15,769,924
2,424,923
233,549
2,658,472
8,100,559
8,100,559
524,408
140,573
664,981
-
-
10,759,031
664,981
23,908,787
15,104,943
76,970,610
2,058,066
(55,119,889)
52,166,259
1,708,833
(38,770,149)
23,908,787
15,104,943
5
6
7
8
2, 9
10
11
11
12
13
*Refer to Note 2: Change in Accounting Policy for details of the impact of the change in accounting policy relating to the treatment
of exploration and evaluation expenditure.
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Consolidated
Financial Statements.
28
Genesis Minerals Limited and controlled entities
Consolidated Statement of Changes in Equity
YEAR ENDED 30 JUNE 2021
Notes
Ordinary
Share
Capital
$
Accumulated
Losses
$
Options
Reserve
$
Total
$
BALANCE AT 1 JULY 2019
33,820,100
(33,639,880)
1,659,080
1,839,300
Impact of change in accounting policy
2
-
720,855
-
720,855
BALANCE AT 1 JULY 2019 (RESTATED)
33,820,100
(32,919,025)
1,659,080
2,560,155
Loss for the year
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share issue transaction costs
Share based payments
Sub-total
-
-
(5,851,124)
(5,851,124)
12
12
24
19,210,532
(864,373)
-
-
-
-
-
-
-
-
(5,851,124)*
(5,851,124)
19,210,532
(864,373)
49,753
49,753
18,346,159
(5,851,124)
49,753
12,544,788
BALANCE AT 30 JUNE 2020
52,166,259
(38,770,149)
1,708,833
15,104,943
BALANCE AT 1 JULY 2020
52,166,259
(43,221,979)
1,708,833
10,653,113
Impact of change in accounting policy
2
-
4,451,830
-
4,451,830
BALANCE AT 1 JULY 2020 (RESTATED)
52,166,259
(38,770,149)
1,708,833
15,104,943
Loss for the year
TOTAL COMPREHENSIVE LOSS
TRANSACTIONS WITH OWNERS IN THEIR
CAPACITY AS OWNERS
Shares issued during the year
Share issue transaction costs
Share based payments
Sub-total
-
-
(16,349,740)
(16,349,740)
12
12
24
25,641,321
(836,970)
-
-
-
-
-
-
-
-
(16,349,740)
(16,349,740)
25,641,321
(836,970)
349,233
349,233
24,804,351
(16,349,740)
349,233
8,803,844
BALANCE AT 30 JUNE 2021
76,970,610
(55,119,889)
2,058,066
23,908,787
*Refer to Note 2: Change in Accounting Policy for details of the impact of the change in accounting policy relating to the treatment
of exploration and evaluation expenditure.
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Consolidated
Financial Statements.
29
Genesis Minerals Limited and controlled entities
Consolidated Statement of Cash Flows
YEAR ENDED 30 JUNE 2021
Notes
2021
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration expenditure
Interest received
Cash flow boost
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
(1,588,517)
(12,472,037)
22,159
37,500
(14,000,895)
23
2020
$
(RESTATED)
(1,197,925)
(3,550,031)*
9,212
62,500
(4,676,244)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation assets
Payments for plant and equipment
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of ordinary shares
Payments for share issue costs
NET CASH INFLOW FROM FINANCING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the beginning of the financial year
(10,640,989)
(267,108)
(10,908,097)
(3,730,975)*
(20,239)
(3,751,214)
25,641,321
(911,584)
24,729,737
(179,255)
11,145,421
17,163,834
(200,798)
16,963,036
8,535,578
2,609,843
CASH AND CASH EQUIVALENTS AT THE END OF THE
FINANCIAL YEAR
5
10,966,166
11,145,421
*Refer to Note 2: Change in Accounting Policy for details of the impact of the change in accounting policy relating to the treatment
of exploration and evaluation expenditure.
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Consolidated Financial
Statements.
30
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the
Group consisting of Genesis Minerals Limited and its subsidiaries (“the Group”). The financial statements are presented in
Australian dollars. Genesis Minerals Limited is a company limited by shares, domiciled and incorporated in Australia. The
financial statements were authorised for issue by the directors on 28 September 2021. The directors have the power to
amend and reissue the financial statements.
(a) Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Genesis Minerals
Limited is a for-profit entity for the purpose of preparing the financial statements.
(i) Compliance with IFRS
The consolidated financial statements of the Genesis Minerals Limited Group also comply with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) New and amended standards adopted by the Group
None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning
1 July 2020 affected any of the amounts recognised in the current period or any prior period and are not likely to affect future
periods.
(iii) Early adoption of standards
The Group has not elected to apply any pronouncements before their operative date in the annual reporting period beginning
1 July 2020.
(iv) Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
available-for-sale financial assets, which have been measured at fair value.
(b) Principles of consolidation
The financial statements incorporate the assets, liabilities and results of entities controlled by Genesis Minerals Limited at
the end of the reporting period. A controlled entity is any entity over which Genesis Minerals Limited has the power to govern
the financial and operating policies so as to obtain benefits from its activities. Control will generally exist when the parent
owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to
govern, the existence and effect of holdings of actual and potential voting rights are also considered.
A list of controlled entities is contained in Note 21 to the financial statements.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the financial statements
as well as their results for the year then ended.
In preparing the financial statements, all inter-group balances and transactions between controlled entities in the Group have
been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with those adopted by the parent entity.
(c) Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation
of its assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or
businesses under common control. The acquisition method requires that for each business combination, one of the
combining entities must be identified as the acquirer (i.e. parent entity). The business combination will be accounted for as
at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity. At this date, the
parent shall recognise, in the consolidated accounts and subject to certain limited exceptions, the fair value of the identifiable
assets acquired and liabilities assumed. In addition, contingent liabilities of the acquiree will be recognised where a present
obligation has been incurred and its fair value can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the
measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the acquiree
where less than 100% ownership interest is held in the acquiree.
31
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The consideration transferred for a business combination shall form the cost of the investment in the separate financial
statements. Such consideration is measured at fair value at acquisition date and consists of the sum of the assets transferred
by the acquirer, liabilities incurred by the acquirer to the former owners of the acquiree and the equity interests issued by the
acquirer.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent consideration
arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial liability or equity
instrument, depending upon the nature of the arrangement. Rights to refunds of consideration previously paid are recognised
as a receivable. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its
subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or a liability is
remeasured each reporting period to fair value through the statement of comprehensive income, unless the change in value
can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the Statement of Profit or Loss and
Other Comprehensive Income.
(d) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the full Board of Directors.
(e) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in Australian dollars, which is Genesis Minerals Limited's functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are recorded at the spot rate on the date of the transaction.
At the end of the reporting period:
Foreign currency monetary items are translated using the closing rate;
•
• Non-monetary items that are measured at historical cost are translated using the exchange rate at the date of
the transaction; and
• Non-monetary items that are measured at fair value are translated using the rate at the date when fair value was
determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from
those at which they were translated on initial recognition or in prior reporting periods are recognised through profit or loss,
except where they relate to an item of other comprehensive income or whether they are deferred in equity as qualifying
hedges.
The financial results and position of foreign operations whose functional currency is different from Genesis Minerals
Limited's presentation currency are translated as follows:
•
•
•
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period where the average rate approximates
the rate at the date of the transaction; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to Genesis Minerals Limited's
foreign currency translation reserve in the consolidated statement of financial position. These differences are recognised in
the consolidated statement of profit or loss and other comprehensive income in the period in which the operation is disposed.
(f) Revenue and other income
The Group recognises revenue as follows:
32
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i) Revenue from contract with customers
Revenue is recognised at an amount that reflects the consideration to which the group is expected to be entitled in exchange
for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: identifies the
contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes
into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate
performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered;
and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the
customer of the goods or services promised.
Variable consideration with the transaction price, if any, reflects concessions provided to the customers such as discounts,
rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates
are determined using either the ‘expected value’ or ‘most likely amount’ method. The measurement of the variable
consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly
probably that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement
constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts
received that are subject to the constraining principle are recognised as a refund liability.
(ii) Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest
rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to
the net carrying amount of the financial assets.
(g) Income tax
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences can be utilised.
Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities
are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in
which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
(h) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less which are convertible to a known amount of cash and subject
to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in
current liabilities on the consolidated statement of financial position.
(i) Financial instruments
(i) Classification of financial instruments
The Group classifies its financial assets into the following measurement categories:
•
•
those to be measured at fair value (either through other comprehensive income, or through profit or loss); and
those to be measured at amortised cost.
The classification depends on the Group’s business model for managing financial assets and the contractual terms of the
financial assets' cash flows.
The Group classifies its financial liabilities at amortised cost unless it has designated liabilities at fair value through profit
or loss or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.
33
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(ii) Financial assets measured at amortised cost
Debt instruments
Investments in debt instruments are measured at amortised cost where they have:
•
•
contractual terms that give rise to cash flows on specified dates, that represent solely payments of principal and
interest on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently
measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model
described below in note (c) Impairment of financial assets.
(a) Financial assets measured at fair value through other comprehensive income
Equity instruments
Investment in equity instruments that are neither held for trading nor contingent consideration recognised by the Group in
a business combination to which AASB 3 "Business Combination" applies, are measured at fair value through other
comprehensive income, where an irrevocable election has been made by management.
Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. Dividends on such
investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the
investment.
(b) Items at fair value through profit or loss comprise:
•
•
•
items held for trading;
items specifically designated as fair value through profit or loss on initial recognition; and
debt instruments with contractual terms that do not represent solely payments of principal and interest.
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with transaction costs
recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses
are recognised in the income statement as they arise.
Where a financial asset is measured at fair value, a credit valuation adjustment is included to reflect the credit worthiness
of the counterparty, representing the movement in fair value attributable to changes in credit risk.
Financial instruments held for trading
A financial instrument is classified as held for trading if it is acquired or incurred principally for the purpose of selling or
repurchasing in the near term, or forms part of a portfolio of financial instruments that are managed together and for which
there is evidence of short-term profit taking, or it is a derivative not in a qualifying hedge relationship.
Financial instruments designated as measured at fair value through profit or loss
Upon initial recognition, financial instruments may be designated as measured at fair value through profit or loss. A financial
asset may only be designated at fair value through profit or loss if doing so eliminates or significantly reduces measurement
or recognition inconsistencies (i.e. eliminates an accounting mismatch) that would otherwise arise from measuring financial
assets or liabilities on a different basis.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly reduces an accounting
mismatch or:
•
•
if a host contract contains one or more embedded derivatives; or
if financial assets and liabilities are both managed and their performance evaluated on a fair value basis in
accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value attributable to changes
in the Group’s own credit quality is calculated by determining the changes in credit spreads above observable market
interest rates and is presented separately in other comprehensive income.
(c) Impairment of financial assets
The Group applies a three-stage approach to measuring expected credit losses (ECLs) for the following categories of
financial assets that are not measured at fair value through profit or loss:
34
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
•
•
•
debt instruments measured at amortised cost and fair value through other comprehensive income;
loan commitments; and
financial guarantee contracts.
No ECL is recognised on equity investments.
Determining the stage for impairment
At each reporting date, the Group assesses whether there has been a significant increase in credit risk for exposures since
initial recognition by comparing the risk of default occurring over the remaining expected life from the reporting date and
the date of initial recognition. The Group considers reasonable and supportable information that is relevant and available
without undue cost or effort for this purpose. This includes quantitative and qualitative information and also, forward-looking
analysis.
An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent period, asset quality
improves and also reverses any previously assessed significant increase in credit risk since origination, then the provision
for doubtful debts reverts from lifetime ECL to 12-months ECL. Exposures that have not deteriorated significantly since
origination are considered to have a low credit risk. The provision for doubtful debts for these financial assets is based on
a 12-months ECL. When an asset is uncollectible, it is written off against the related provision. Such assets are written off
after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent
recoveries of amounts previously written off reduce the amount of the expense in the income statement.
The Group assesses whether the credit risk on an exposure has increased significantly on an individual or collective basis.
For the purposes of a collective evaluation of impairment, financial instruments are grouped on the basis of shared credit
risk characteristics, taking into account instrument type, credit risk ratings, date of initial recognition, remaining term to
maturity, industry, geographical location of the borrower and other relevant factors.
(d) Recognition and derecognition of financial instruments
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the contractual
provisions of the instrument, which is generally on trade date. Loans and receivables are recognised when cash is
advanced (or settled) to the borrowers.
Financial assets at fair value through profit or loss are recognised initially at fair value. All other financial assets are
recognised initially at fair value plus directly attributable transaction costs.
The Group derecognises a financial asset when the contractual cash flows from the asset expire or it transfers its rights to
receive contractual cash flows from the financial asset in a transaction in which substantially all the risks and rewards of
ownership are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised
as a separate asset or liability.
A financial liability is derecognised from the balance sheet when the Group has discharged its obligation or the contract is
cancelled or expires.
(e) Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the Group has a legal
right to offset the amounts and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.
(j) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options are recognised as a deduction from equity, net of any tax effects.
(k) Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
(i) Plant and equipment
Plant and equipment are measured at cost. Cost includes expenditure that is directly attributable to the asset.
The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.
35
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(ii) Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is
depreciated on a straight-line basis over the asset's useful life to the Group commencing from the time the asset is held
ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful lives of the improvements. Land is not depreciated.
(iii) Class of fixed asset useful life (years)
The estimated useful lives used for each class of depreciable assets are:
Plant and Equipment: 2 to 5 years
The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
(l) Exploration and development expenditure
During the current reporting period the Group made a voluntary change to its accounting policy relating to the treatment of
exploration and evaluation expenditure. Refer to Note 2 for details.
(m) Trade and other payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received
by the Group during the reporting period which remain unpaid. The balance is recognised as a current liability with the
amounts normally paid within 30 days of recognition of the liability.
(n) Rehabilitation provisions
The Group records the present value of estimated costs of legal and constructive obligations required to restore and
rehabilitate operating locations in the period in which the obligation is incurred. The nature of the restoration activities
includes restoring ground to its natural state and re-vegetating the disturbed area. When this provision gives access to future
economic benefits, an asset is recognised and then subsequently depreciated in line with the life of the underlying asset,
otherwise the costs are charged to the income statement.
The obligation arises when the ground/environment is disturbed or an asset is installed at the production location. The liability
is initially recognised at the estimated costs, and where it is to be settled in more than 12 months it is discounted to present
value. The periodic unwinding of the discount is recognised in the income statement as a finance cost.
(o) Employee benefit provisions
Provision is made for the Group's liability for employee benefits arising from services rendered by employees to the end of
the reporting period. Employee benefits have been measured at the amounts expected to be paid when the liability is settled.
(p) Equity-settled compensation
The Group operates equity-settled share-based payment share, performance right and option schemes. The fair value of
the equity to which personnel become entitled is measured at grant date and recognised as an expense over the vesting
period, with a corresponding increase to an equity account.
The fair value of shares is ascertained as the market bid price.
The fair value of options is determined by an internal valuation using a Black Scholes option pricing model. The valuation
relies on the use of certain assumptions. If the assumptions were to change, there may by an impact on the amounts
reported. For ordinary shares which are traded on the stock exchange, the fair value is determined by reference to the closing
price of the security on the measurement date.
The fair value of performance rights, the fair value is measured using the Company’s 5 day volume weighted average share
price prior to grant date. For each performance hurdle a probability factor is assigned based on the Company’s estimate of
the performance hurdle being met. For performance hurdles that have a market-based performance hurdle, the probability
factor is determined by using a Monte Carlo Simulation technique which relies on certain assumptions. If the assumptions
were to change, there may by an impact on the amounts reported. The value of the performance rights is allocated to the
Statement of Profit or Loss over the vesting period.
Non-market vesting conditions are taken into account when considering the number of performance rights and options
expected to vest. At the end of each reporting period, the Group revises its estimate of the number of performance rights or
options which are expected to vest based on the non-market vesting conditions. Revisions to the prior period estimate are
recognised in profit or loss and equity.
36
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(q) Earnings per share
Genesis Minerals Limited presents basic and diluted earnings per share information for its ordinary shares.
Basic earnings per share is calculated by dividing the profit attributable to owners of the company by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional
ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.
(r) Goods and services tax (GST)
Revenues and expenses are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of the acquisition
of the asset or as part of an item of the expense. Receivables and payables in the consolidated statement of financial position
are shown inclusive of GST.
Cash flows are presented in the consolidated statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on current
trends and economic data, obtained both externally and within the Group.
(i) Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending
on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e.
unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine
fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market
with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most
advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts
from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs
and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset
in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this
information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective
note to the financial statements.
(ii) Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation
techniques to measure the fair value of the asset or liability. The Group selects a valuation technique that is appropriate in
the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant
data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques
selected by the Group are consistent with one or more of the following valuation approaches:
• Market approach: valuation techniques that use prices and other relevant information generated by market
•
transactions for identical or similar assets or liabilities;
Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a
single discounted present value; and
37
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service
capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the
asset or liability, including assumptions about risks.
When selecting a valuation technique, the Group gives priority to those techniques that maximise the use of observable
inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available
information on actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the
asset or liability are considered observable, whereas inputs for which market data is not available and therefore are
developed using the best information available about such assumptions are considered unobservable.
(iii) Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value
measurements into one of three possible levels based on the lowest level that an input that is significant to the measurement
can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant
inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant
inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e.
transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.
(iv) Key estimate - share based payments
The Group measures the cost of equity settled transactions by reference to the fair value of the equity instrument at the date
at which they are granted (for employees) or their measurement date (for other service providers).
For Options, the fair value is determined by an internal valuation using a Black Scholes option pricing model. The valuation
relies on the use of certain assumptions. If the assumptions were to change, there may by an impact on the amounts
reported. For ordinary shares which are traded on the stock exchange, the fair value is determined by reference to the closing
price of the security on the measurement date.
For Performance Rights, the fair value is measured using the Company’s 5 day volume weighted average share price prior
to grant date. For each performance hurdle a probability factor is assigned based on the Company’s estimate of the
performance hurdle being met. For performance hurdles that have a market-based performance hurdle, the probability factor
is determined by using a Monte Carlo Simulation technique which relies on certain assumptions. If the assumptions were to
change, there may by an impact on the amounts reported. The value of the performance rights is allocated to the Statement
of Profit or Loss over the vesting period.
(v) Key estimate – taxation
Balances disclosed in the consolidated financial statements and the notes thereto, related to taxation, are based on the best
estimates of directors. These estimates take into account both the financial performance and position of the Group as they
pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for
pending or future taxation legislation. The current income tax position represents the directors’ best estimate, pending an
assessment by the Australian Taxation Office.
38
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(vi) Key estimate – rehabilitation provision
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.
Rehabilitation costs include the dismantling and removal of mining plant, equipment and building structures, waste removal
and rehabilitation of the site in accordance with the requirements of the mining permits. Such costs are determined using
estimates of future costs, current legal requirements and technology.
Rehabilitation costs are recognised in full at present value as a liability. Amounts that are payable within 12 months are
recognised as a current liability. Amounts that are payable not within 12 months are recognised as a non-current liability. An
equivalent amount is capitalised as part of the cost of the asset when an obligation arises to decommission or restore a site
to a certain condition after abandonment as a result of bringing the assets to its present location. The capitalised cost is
amortised over the life of the project and the provision is accreted periodically as the discounting of the liability unwinds.
Any changes in the estimates for the costs or other assumptions against the cost of relevant assets are accounted for on a
prospective basis. In determining the costs of site restoration there is uncertainty regarding the nature and extent of the
restoration due to community expectations and future legislation.
The Group assesses its mine rehabilitation provision annually. Significant judgement is required in determining the provision
for mine rehabilitation and closure as there are many factors that will affect the ultimate liability payable to rehabilitate the
mine sites, including future disturbances caused by further development, changes in technology, changes in regulations,
price increases, changes in timing of cash flows which are based on life of mine plans and changes in discount rates. When
these factors change or become known in the future, such differences will impact the mine rehabilitation provision in the
period in which the change becomes known.
(vii) Key judgement – environmental issues
Balances disclosed in the consolidated financial statements and notes thereto are not adjusted for any pending or enacted
environmental legislation, and the directors understanding thereof. At the current stage of the Group’s development and its
current environmental impact, the directors believe such treatment is reasonable and appropriate.
(viii) Key judgement – comparative figures
When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
When the Group applies an accounting policy retrospectively, it makes a retrospective restatement or reclassifies items in
its consolidated financial statements. A consolidated statement of financial position as at the beginning of the earliest
comparative period will be disclosed.
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
New, revised or amending Accounting Standards and Interpretations adopted
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.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
2. CHANGE IN ACCOUNTING POLICY
Exploration and Evaluation
During the current reporting period the Group has made a voluntary change to its accounting policy relating to the treatment
of exploration and evaluation expenditure. Exploration and evaluation expenditure, including acquisition costs, was
previously expensed as incurred. The Group has now elected to expense exploration and evaluation expenditure as incurred,
with costs of acquiring mineral tenements to be recognised as an asset to the extent allowable under AASB 6 Exploration
for and Evaluation of Mineral Resources.
39
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
2. CHANGE IN ACCOUNTING POLICY (continued)
This change has been implemented as the Board of Directors are of the opinion that the change is both in line with Australian
Accounting Standards and provides users with reliable and more relevant information about the effects of transactions, other
events or conditions on the Group’s financial position, financial performance or cash flows. The new policy is detailed below
and has been applied retrospectively in accordance with the requirements of AASB 108 Accounting Policies, Changes in
Accounting Estimates and Errors.
Exploration and evaluation costs, including feasibility study expenditure, are expensed in the year they are incurred apart
from acquisition costs to acquire mineral tenements which are capitalised on an area of interest basis. Acquisition costs
include the associated transaction costs and the estimated rehabilitation liability recognised upon the acquisition of mineral
tenements.
Exploration and evaluation assets are only recognised if the right of tenure of the area of interest is current, and they are
expected to be recouped through successful development and exploitation of the area of interest or alternatively by its sale,
or, where exploration and evaluation activities in the area of interest have not reached a stage that 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.
Once a development decision has been made all past exploration and evaluation expenditure in respect of an area of interest
that has been capitalised is transferred to mine properties where it is amortised over the life of the area of interest to which
it relates on a unit-of-production basis. No amortisation is charged during the exploration and evaluation phase.
Exploration and evaluation assets are assessed for impairment when an indicator of impairment exists, and capitalised
assets are written off where required. Where an area of interest is abandoned, or the directors decide that it is not
commercial, any accumulated acquisition costs in respect of that area are written off in the financial period the decision is
made. Each area of interest is also reviewed at the end of each accounting period and accumulated costs written off to the
extent that they will not be recoverable in the future.
The aggregate effect of the change in accounting policy on the financial statements for the year ending 30 June 2021 is as
follows:
Previous policy
$
Effect of the
change in the
accounting policy
for exploration
and evaluation
$
Revised policy
$
Consolidated Statement of Profit or Loss and Other Comprehensive Income – year ending 30 June 2021
Exploration and evaluation expenses
Loss before income tax
Income tax expense
Basic and diluted loss per share (cents)
Consolidated Statement of Financial Position – as at 30 June 2021
Exploration and evaluation assets
Accumulated losses
(18,900,977)
(18,900,977)
-
(0.98)
33,253,376
35,250,717
-
1.83
23,352,807
(23,352,807)
-
78,472,696
14,352,399
16,349,740
-
0.85
23,352,807
55,119,889
Previous policy
$
Effect of the
change in the
accounting policy
for exploration
and evaluation
$
Revised
policy
$
Consolidated Statement of Profit or Loss and Other Comprehensive Income – year ending 30 June 2020
Exploration and evaluation expenses
Loss before income tax
Income tax expense
Basic and diluted loss per share (cents)
Consolidated Statement of Financial Position – as at 30 June 2020
Exploration and evaluation assets
Accumulated losses
(3,730,975)
(3,730,975)
-
(0.29)
8,306,909
9,582,099
-
0.74
4,451,830
(4,451,830)
-
43,221,979
4,575,934
5,851,124
-
0.45
4,451,830
38,770,149
40
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
3. REVENUE
Interest revenue
Cash flow boost
Fuel tax credit
4. INCOME TAX EXPENSE
Statement of Profit or Loss and Other Comprehensive Income
Current income tax
Deferred tax
(a) The prima facie tax on profit/(loss) from ordinary activities before income tax
is reconciled to the income tax expense as follows:
Loss from continuing operations before income tax expense
Australian tax rate
Prima facie tax benefit at the Australian tax rate
Add tax effect of:
Share-based payments
Non-deductible exploration costs
Non-deductible other expenses
Non-assessable income
Movements in unrecognised temporary differences
Tax effect of current year tax losses for which no deferred tax asset has been
recognised
Income tax expense
(b) Tax Losses
Unused tax losses for which no deferred tax asset has been
recognised
Potential tax benefit @ 26% (2020: 27.5%)
Unused capital losses for which no deferred tax asset has been
recognised
Potential tax benefit @ 26% (2020: 27.5%)
2021
$
22,159
37,500
20,322
79,981
-
-
-
2021
$
(16,349,740)
26%
(4,250,932)
90,801
-
88,251
(9,750)
222,742
(3,858,889)
3,858,889
-
2020
$
8,885
62,500
-
71,385
-
-
-
2020
$
(5,851,124)
27.5%
(1,609,059)
13,682
944,947
49,010
(17,188)
(94,025)
(712,633)
712,633
-
29,426,837
7,650,978
25,567,948
7,031,186
487,085
126,642
487,085
133,948
The benefit for tax losses will only be obtained if:
(a) The company and consolidated entity derive future assessable income of a nature and an amount sufficient to enable the
benefit from the deductions for the losses to be realised;
(b) The company and the consolidated entity continue to comply with the conditions for deductibility imposed by law; and
(c) No changes in tax legislation adversely affect the ability of the Company and consolidated entity to realise these benefits.
5. CASH AND CASH EQUIVALENTS
The following table details the components of cash and cash equivalents as reported in the statement of financial position.
Cash at bank and in hand
Short-term deposits
Cash and cash equivalents
2021
$
10,946,166
20,000
10,966,166
2020
$
11,125,421
20,000
11,145,421
Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for
varying periods of between one day and three months depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
41
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
6. TRADE AND OTHER RECEIVABLES
Trade debtors – GST and fuel tax credit receivable
2021
$
78,795
78,795
2020
$
141,268
141,268
The Group expects the above trade and other receivables to be recovered within 12 months of 30 June 2021 and therefore
considers the amounts shown above at cost to be a close approximation of fair value. Trade and other receivables expose
Genesis Minerals Limited to credit risk as potential for financial loss arises should a debtor fail to repay their debt in a timely
manner. Disclosure on credit risk can be found at Note 16(A).
7. PREPAYMENTS
Prepaid expenditure
8. PLANT AND EQUIPMENT
Plant and equipment
Cost
Accumulated depreciation
Net book amount
Plant and equipment
Opening net book amount
Additions / (Disposals)
Depreciation charge
Closing net book amount
2021
$
24,857
24,857
2021
$
301,204
(56,011)
245,193
17,597
267,108
(39,512)
245,193
2020
$
13,808
13,808
2020
$
34,096
(16,499)
17,597
6,123
20,239
(8,765)
17,597
9. EXPLORATION AND EVALUATION ASSETS
Opening balance
Additions – acquisition of mineral tenements*
Closing balance
4,451,830
18,900,977
23,352,807
720,855
3,730,975
4,451,830
*On 24 June 2020, the Company announced that it had entered into a binding agreement to acquire 100% of the Kookynie
tenements (Project), located immediately south-east of its 100%-owned Ulysses Gold Project. The Company had entered into
an option agreement with A&C Mining Investment Pty Ltd (A&C) and Ms Yijun Zhu (the Vendors) pursuant to which its wholly
owned subsidiary, Ulysses Mining Pty Ltd, had been granted the right to acquire the Project (Option Agreement). As at 30
June 2020 the Company had incurred costs totalling $3,558,951 towards the acquisition of the Project including amounts paid
to the Vendors under the Option Agreement, a cash payment and shares issued to resolve proceedings and settle plaints
against the Vendors and amounts incurred for associated transaction costs.
On 21 December 2020, the Company announced it had exercised its option to acquire 100% of the Project. The acquisition
was completed on 12 January 2021 with further costs incurred of $11,444,569 to settle amounts due to the Vendors under
the Option Agreement, payments made to resolve proceedings and settle plaints against the Vendors, amounts incurred for
associated transaction costs and the estimated stamp duty liability.
As at 30 June 2021, the capitalised acquisition costs for the Project also included $7,142,883 for the estimated rehabilitation
liability recognised on acquisition, with subsequent changes to the estimate being expensed through profit or loss. In
September 2021 the Company paid the initial stamp duty assessment for the Project acquisition to enable the tenement
transfers to take place
The Company granted the Vendors a 1% net smelter return on future gold production from the Project, capped at A$5 million.
Details of all royalties pertaining to the Project are set out in Note 19.
42
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
10. TRADE AND OTHER PAYABLES
Trade payables
Other payables and accruals
11. PROVISIONS
CURRENT LIABILITY
Employee entitlements
Rehabilitation
NON-CURRENT LIABILITY
Rehabilitation*
2021
$
1,088,784
1,336,139
2,424,923
183,549
50,000
233,549
8,100,559
8,100,559
2020
$
413,569
110,839
524,408
90,573
50,000
140,573
-
-
*The rehabilitation liability has been estimated using a discounted cash flow model based on the net present value of expected
cash flows. The discount rate used was determined as the 10 year Australian Government bond yield and an annual escalation
rate using current inflationary expectations has been used. The rehabilitation liability includes the estimated liability arising
from the acquisition of the Kookynie tenements.
12. ISSUED CAPITAL
2,126,337,840 (30 June 2020: 1,357,954,186) Ordinary shares
Value of conversion rights - Convertible Notes
Share issue costs written off against issued capital
MOVEMENT IN ORDINARY SHARES
Balance at 1 July 2019
Placement at $0.032 per share – 5 August 2019
Rights Issue at $0.032 per share – 4 September 2019
Placement at $0.032 per share – 25 September 2019
Shares issued as part of the transaction to acquire the Kookynie Gold
Project at $0.054 per share – 25 June 2020
Exercise of options at $0.049 per share – 26 June 2020
Placement at $0.042 per share1
Less share issue costs
Balance at 30 June 2020
Balance at 1 July 2020
Placement at $0.042 per share – 1 July 20201
Exercise of options at $0.048 per share – 10 July 2020
Rights Issue at $0.042 per share – 20 July 2020
Placement at $0.042 per share – 8 September 2020
Exercise of options at $0.049 per share – 29 October 2020
Exercise of options at $0.042 per share – 11 December 2020
Exercise of options at $0.045 per share – 11 December 2020
Placement at $0.06 per share – 30 April 2021
Share Purchase Plan at $0.06 per share – 19 May 2021
Placement at $0.06 per share – 10 June 2021
Less share issue costs
Balance at 30 June 2021
2021
$
80,285,983
25,633
(3,341,006)
76,970,610
2020
$
54,644,662
25,633
(2,504,036)
52,166,259
No.
$
1,089,365,941
44,327,199
188,949,343
6,915,958
26,595,745
1,800,000
-
-
1,357,954,186
1,357,954,186
238,095,238
10,000,000
226,326,261
104,628,958
800,000
4,000,000
1,200,000
130,295,994
16,666,530
36,370,673
-
2,126,337,840
33,820,100
1,418,471
6,046,380
221,311
1,436,170
88,200
10,000,000
(864,373)
52,166,259
52,166,259
-
480,000
9,505,704
4,394,417
39,200
168,000
54,000
7,817,760
1,000,000
2,182,240
(836,970)
76,970,610
1 Funds were received on 30 June 2020 for the share placement. 238,095,238 shares were issued on 1 July 2020.
43
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
12. ISSUED CAPITAL (continued)
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of
shares held.
At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder
has one vote on a show of hands.
OPTIONS
(a) Options on issue
Exercisable at 3.9 cents, on or before 13 December 2019
Exercisable at 4.8 cents, on or before 31 July 2020
Exercisable at 4.9 cents, on or before 29 November 2020
Exercisable at 4.2 cents, on or before 13 December 2020
Exercisable at 5.3 cents, on or before 29 November 2021
Exercisable at 4.5 cents, on or before 13 December 2021
Exercisable at 5.6 cents, on or before 29 November 2022
Exercisable at 10.6 cents, on or before 10 December 2022
Exercisable at 11.4 cents, on or before 10 December 2023
Exercisable at 12.2 cents, on or before 10 December 2024
(b) Movements in options on issue
Beginning of the financial year
Expired, exercisable at 3.9 cents
Lapsed, exercisable at 4.2 cents
Exercised June 2020 at 4.9 cents
Exercised July 2020 at 4.8 cents
Exercised October 2020 at 4.9 cents
Exercised December 2020 at 4.2 cents
Exercised December 2020 at 4.5 cents
Issued:
Exercisable at 10.6 cents, on or before 10 December 2022
Exercisable at 11.4 cents, on or before 10 December 2023
Exercisable at 12.2 cents, on or before 10 December 2024
End of the financial year
2021
No.
-
-
-
-
2,300,000
4,800,000
2,700,000
2,133,332
2,133,333
2,133,335
16,200,000
25,800,000
-
-
-
(10,000,000)
(800,000)
(4,000,000)
(1,200,000)
2,133,332
2,133,333
2,133,335
16,200,000
2020
No.
-
10,000,000
800,000
4,000,000
2,300,000
6,000,000
2,700,000
-
-
-
25,800,000
33,200,000
(4,800,000)
(800,000)
(1,800,000)
-
-
-
-
-
-
-
25,800,000
Each option entitles the holder to subscribe for one fully paid ordinary share in Genesis Minerals Limited, subject to their terms
of issue.
PERFORMANCE RIGHTS
(a) Performance rights on issue
Issued 15 September 2020, expiring 31 December 2021
(b) Movements in performance rights on issue
Beginning of the financial year
Issued 15 September 2020, expiring 31 December 2021
End of the financial year
2021
No.
13,500,000
13,500,000
-
13,500,000
13,500,000
2020
No.
-
-
-
-
-
Each performance right is a right to receive one fully paid ordinary share in Genesis Minerals Limited, subject to meeting
performance conditions prior to their expiry date and subject to their terms of issue.
44
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
12. ISSUED CAPITAL (continued)
CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they may
continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities,
with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the
current working capital position against the requirements of the Group to meet exploration programmes and corporate
overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements,
with a view to initiating appropriate capital raisings as required.
The working capital position of the Group at 30 June 2021 is $8,411,346 (2020: $10,635,516).
13. RESERVES AND ACCUMULATED LOSSES
Nature and purpose of reserves
(i) Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options and performance rights issued. The
movement in the reserve is reconciled as follows:
Balance at the beginning of the financial year
Recognition of share-based payments for options and performance rights
Balance at the end of the financial year
14. LOSS PER SHARE
(a) Reconciliation of earnings used in calculating loss per share
Loss attributable to the owners of the Company used in calculating basic and
diluted loss per share
(b) Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share
Basic and diluted EPS (cents per share)
2021
$
1,708,833
349,233
2,058,066
2021
$
2020
$
1,659,080
49,753
1,708,833
2020
$
(16,349,740)
(5,851,124)
2021
Number of
shares
2020
Number of
shares
1,932,695,645
1,290,413,912
(0.85)
(0.45)
15. COMMITMENTS
Exploration commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets it has an
interest in. Outstanding exploration commitments are as follows:
Within one year
Greater than one year but less than five years
2021
$
1,831,600
9,428,697
11,260,297
2020
$
1,802,807
7,977,090
9,779,897
The above exploration commitments includes the Group’s interests in farm-in and joint venture agreements (refer note 26).
16. FINANCIAL RISK MANAGEMENT
The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects and ensure that net cash flows are sufficient to support the delivery of the Company's financial targets
whilst protecting future financial security. The Group continually monitors and tests its forecasted financial position against
these objectives.
The main risks Genesis Minerals Limited is exposed to through its financial instruments are credit risk, liquidity risk and market
risk consisting of interest rate risk, currency risk and commodity price risk.
45
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
16. FINANCIAL RISK MANAGEMENT (continued)
The Group's financial instruments consist mainly of deposits with banks, accounts receivable and payables and loans to
subsidiaries.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting
policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial Liabilities
Trade and other payables
Total financial liabilities
2021
$
2020
$
10,966,166
78,795
11,044,961
11,145,421
141,268
11,286,689
2,424,923
2,424,923
524,408
524,408
FINANCIAL RISK MANAGEMENT POLICIES
The Board of Directors has overall responsibility for the establishment of Genesis Minerals Limited’s financial risk management
framework. This includes the development of policies covering specific areas such as foreign exchange risk, interest rate risk,
credit risk and the use of derivatives.
Mitigation strategies for specific risks faced are described below.
The main risks Genesis Minerals Limited is exposed to through its financial instruments are credit risk, liquidity risk and market
risk relating to interest rate risk, currency risk and commodity price risk.
(A) CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract
obligations that could lead to a financial loss to Genesis Minerals Limited and arises principally from holding cash and cash
equivalents and receivables.
The Group’s maximum exposure to credit risk at the reporting date in relation to each class of recognised financial assets is
the carrying amount of those assets as indicated in the statement of financial position.
The Group's policy for reducing credit risk from holding cash is to ensure cash is only invested with counterparties with
Standard & Poor’s rating of at least AA-. The credit rating of the Group’s bank is AA-.
The Group did not have any significant revenue sources during the 2020 or 2021 financial year. The Group does not have any
receivables that are past due or impaired at the reporting date.
(B) LIQUIDITY RISK
Liquidity risk arises from the possibility that Genesis Minerals Limited might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The Group manages this risk through the following mechanisms:
•
preparing forward-looking cash flow analysis in relation to its operational, investing and financial activities which are
monitored on a monthly basis;
• monitoring the state of equity markets in conjunction with the Group's current and future funding requirements, with
a view to appropriate capital raisings as required;
• managing credit risk related to financial assets;
•
•
only investing surplus cash with major financial institutions; and
comparing the maturity profile of current financial liabilities with the realisation profile of current financial assets.
(C) MARKET RISK
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices.
(i) Commodity price risk
The Group is exposed to commodity price volatility on the sale of gold, which is based on the spot price as quoted by the Perth
Mint. The Group had no gold sales during the 2021 financial year.
46
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
16. FINANCIAL RISK MANAGEMENT (continued)
(ii) Foreign exchange risk
The Group is exposed to the Australian dollar currency risk on gold sales, which are denominated in US dollars. No hedging
arrangements have been put in place to manage the currency risk as there were no gold sales during the year.
(iii) Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period,
whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The
Group is also exposed to earnings volatility on floating rate instruments.
Interest rate risk is managed by maintaining cash in interest bearing accounts and having no interest bearing liabilities.
Interest Rate Sensitivity analysis
The following sensitivity analysis is based on the interest rate risk exposures in existence at the end of the reporting period.
This analysis assumes that all other variables are held constant.
2021
2020
PROFIT
EQUITY
100 Basis Points
Increase
100 Basis Points
Decrease
100 Basis Points
Increase
100 Basis Points
Decrease
$109,662
$111,454
($109,662)
($111,454)
$109,662
$111,454
($109,662)
($111,454)
The net exposure at the end of the reporting period is representative of what Genesis Minerals Limited was and is expecting
to be exposed to at the end of the next twelve months.
(D) FAIR VALUE ESTIMATION
The fair values of financial assets and financial liabilities can be compared to their carrying values as presented in the
consolidated statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability
settled, between knowledgeable, willing parties in an arm’s length transaction.
There are no financial assets or liabilities which are required to be revalued on a recurring basis.
17. KEY MANAGEMENT PERSONNEL DISCLOSURES
Key management personnel compensation
Short-term benefits
Post-employment benefits
Share-based payments
18. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by
the auditor of the parent entity, its related practices and non-related audit firms:
Audit services
Hall Chadwick (formerly Bentleys) - audit and review of financial
reports
Total remuneration for audit services
2021
$
433,309
33,258
194,326
660,893
2021
$
2020
$
402,702
33,391
49,753
485,846
2020
$
37,148
37,148
30,558
30,558
47
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
19. CONTINGENCIES
The Group has the following deferred consideration and royalty arrangements covering its mineral tenement holdings:
Deferred Consideration and Royalty Details
As part of the terms of the acquisition of the Ulysses Gold Project, Genesis
agreed to the following deferred consideration payments to the project vendors
covering the tenements:
• Deferred consideration of $10.00 per dry metric tonne (DMT) of ore
product from the tenements which is treated through a toll treatment
plant for the first 200,000 DMT of ore processed, to a maximum of
$2,000,000. 52,653 DMT of ore product from the Ulysses Gold Project
has been processed to date; and
1.2% of the Net Smelter Return generated from the sale of any product
from the tenement area, after 200,000 of DMT of ore product from the
tenements has been treated through a toll treatment plant.
•
Tenements Affected
M40/166, E40/295 and E40/312
An effective Net Smelter Return royalty rate of 0.90% from the sale of all
naturally occurring substances is payable to International Royalty Corporation.
Net Smelter Return royalty of 1.2% from the sale of any gold from the tenement
area is payable to the former tenement holder, capped at a maximum amount
payable of $500,000 (Ulysses Gold Project).
M40/166
E40/371
As part of the terms of the acquisition of the Kookynie tenements, the following royalties apply:
1% Net Smelter Return on all gold extracted is payable to the project vendors,
capped at a maximum amount of $5,000,000.
E40/229, E40/263, E40/291, E40/306,
E40/346, E40/347, E40/402, M40/3,
M40/20, M40/94, M40/101, M40/107,
M40/110, M40/120, M40/136, M40/137,
M40/148, M40/151, M40/163, M40/164,
M40/174, M40/196, M40/209, M40/288,
M40/289, M40/290, M40/291, M40/292,
M40/293, M40/339, M40/340, M40/343,
M40/345, P40/1272, P40/1427,
P40/1433, P40/1434, P40/1435,
P40/1436, P40/1439, P40/1440,
P40/1441, P40/1445, and P40/1454;
M40/136
M40/174
M40/288
M40/343
L40/7, L40/15, L40/19, L40/20 and
M40/136
M40/163 and M40/164
2.5% by weight (equivalent to NSR) of all minerals produced and credited to
Ulysses’ metals account (at a refinery selected by Ulysses) is payable to the
metals accounts of two former tenement owners.
$1.00 per tonne of ore milled is payable to a former tenement owner.
$1.00 per tonne of ore mined and milled is payable to a former tenement
owner.
2.5% of the Quarterly Gross Value of Sales. This is calculated by reference to
the gross revenue per quarter actually received by Ulysses from sales of
metals, minerals or mineral bearing substance mined or removed from within
the tenement, and is payable to a former tenement owner.
The following royalty is payable to Vox Royalty:
•
•
For each Ore Reserve with a gold grade of at or less than 5 grams per
DMT, $1.00 per DMT, or
For each Ore Reserve at a gold grade of more than 5 grams per DMT
then a formula applies as per the Royalty Deed; or
• Gold bearing ore mined and treated which does not form any part of
any ‘Calculation of Ore Reserve’ paid or to be paid, the calculation is
the same as above, using the number of DMT of ore mined and treated
and the grade or ore mined and treated in the calculation as if it were
an ‘Ore Reserve’.
Royalty not payable for first 100,000 DMT (in aggregate) of all gold Ore
Reserves or gold bearing ore mined and treated.
$1.00 per DMT of ore mined and treated from the tenements in excess of
650,000 DMT is payable to Vox Royalty. Historical production is 498,700t @
2g/t for 32,070oz of gold produced in 1996-97.
In regards to the Desdemona South JV Gold Project which is the subject of a
Farm-in and Joint Venture agreement with Kin Mining NL, a royalty of 2% of
the Gross Revenue multiplied by the Seller’s interest in the tenements applies.
E37/1326 (5 graticules), E40/283,
E40/285, E40/369, E40/366, P40/1464,
P40/1283 and M40/346.
48
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
19. CONTINGENCIES (continued)
In regards to the acquisition of the Kookynie tenements, the Group is working through the stamp duty assessment process
with the West Australian Office of State Revenue (“OSR”). OSR have issued an interim stamp duty assessment (which has
been accrued for as at balance date) based on the submissions made to date and certificates of duty have been issued
enabling registration of the tenement transfers to take place. Depending on the outcome of finalising the stamp duty
assessment process, further liabilities may arise.
In regards to the tenement transfer process for the Kookynie tenements, a number of tenements have encumbrances including
caveats and mortgages. The Company is working through the process to obtain the necessary consents or to have the
encumbrances removed to allow the tenement transfers to be registered. The Company has received the required Ministerial
Consent to transfer the tenements.
There are no other contingent liabilities or contingent assets of the Group at balance date.
20. RELATED PARTY TRANSACTIONS
(a) Parent entity
The ultimate parent entity within the Group is Genesis Minerals Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in note 21.
(c) Appointment and Resignation of Directors
No movement during the year.
(d) Key management personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or
indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel.
For details of remuneration disclosures relating to key management personnel, refer to note 17: Key Management Personnel
Disclosures (KMP) and the Remuneration Report in the Directors' Report.
There were no other related party transactions during the year.
21. CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1(b):
Name
Country of
Incorporation
Class of Shares
Equity Holding(1)
Ulysses Mining Pty Ltd
Metallo Resources Pty Ltd
Australia
Australia
Ordinary
Ordinary
(1) The proportion of ownership interest is equal to the proportion of voting power held.
2021
%
100
100
2020
%
100
100
22. EVENTS AFTER THE BALANCE SHEET DATE
On 22 September 2021, Genesis announced a strategic funding and Board restructure initiative led by Raleigh Finlayson,
which will see him appointed as Managing Director and become a significant shareholder. Mr Finlayson is the former Managing
Director of Saracen Mineral Holdings (ASX: SAR) and Northern Star Resources (ASX: NST).
Under the proposal, which is subject to shareholder approval, Genesis will raise $16 million via a share Placement at 6c a
share. Mr Finlayson will subscribe for $7 million of shares in the Placement and Northern Star will subscribe for $3 million of
shares. The remainder of the Placement will be offered to existing and new institutional and sophisticated investors, including
current and proposed Directors.
Existing Genesis shareholders will have the opportunity to participate in a 1-for-30 non renounceable Entitlement Offer at 6c
per share raising up to an additional $4.8 million. Placement shares will qualify for the Entitlement Offer. Shares acquired via
the Placement and the Entitlement Offer will come with a free one-for-two attaching two-year unlisted option exercisable at
10c. Placement options will not be able to be exercised to participate in the Entitlement Offer.
49
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
22. EVENTS AFTER THE BALANCE SHEET DATE (continued)
Mr Finlayson has entered into a part-time consulting agreement with Genesis and he has the right to be issued 245 million
unlisted options with a 10.5c strike price.
Mr Finlayson will be appointed Managing Director of Genesis by no later than 31 March 2022. Mr Finlayson has the right
(subject to shareholder approval), upon appointment as Managing Director, to be issued 30 million performance rights under
the Genesis Incentive Performance Rights Plan, which will have vesting hurdles tied to a 2.5Moz JORC Resource, a 1.0Moz
JORC Reserve and Genesis becoming a gold producer (Performance Rights).
Former FMG Managing Director and CEO Neville Power and highly experienced corporate lawyer Michael Bowen will be
invited to join the Board as Non-Executive Directors following conclusion of the Placement. Each will be issued with 15 million
options at an exercise price of 10.5c with a four-year expiry (Director Options). Tommy McKeith will continue as Non-Executive
Chairman and Gerry Kaczmarek will continue as Non-Executive Director.
Under the transition plan, Michael Fowler will remain Genesis Managing Director until Mr Finlayson's appointment becomes
effective. At that time, Mr Fowler will retire from the Board. Current Non-Executive Director Craig Bradshaw will retire from the
Genesis Board at the upcoming Genesis AGM.
Non-Executive Director and Alkane Resources Limited (“Alkane”) representative Nic Earner will retire from the Board at the
upcoming Genesis AGM, assuming all necessary shareholder approvals for the Placement and Board restructure are obtained.
Alkane has also agreed to subscribe for any shortfall under the Entitlement Offer subject to scale back to ensure Alkane’s
voting power in Genesis does not exceed 20%. In addition, the 2019 Subscription Agreement between Alkane and Genesis,
under which Alkane was provided with Board representation and certain other rights, will be terminated with effect from
completion of the Entitlement Offer.
Shareholder approvals for the Placement, Alkane Subscription, Consultant Options, Performance Rights, Board appointments
and Director Options will be sought at the forthcoming AGM.
Refer to the ASX announcement dated 22 September 2021 for full details of the strategic funding and Board restructure.
Subsequent to the end of the financial year 1,450,000 performance rights vested on 4 September 2021 following satisfaction
of performance hurdles.
Apart from the above, no matters or circumstances have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial years.
23. CASH FLOW INFORMATION
(a) Reconciliation of net loss after income tax to net cash
inflow/(outflow) from operating activities
Net loss for the year
Non-Cash Items
Depreciation of non-current assets
Share based payments expense
Shares issued as part of the transaction to acquire the Kookynie Gold Project
Change in operating assets and liabilities, net of effects from
purchase of controlled entities
Decrease/(increase) in trade and other receivables
Decrease/(increase) in prepayments
(Decrease)/increase in trade and other payables
(Decrease)/increase in provisions
Net cash inflow/(outflow) from operating activities
(b) Non-cash investing and financing activities
There were no non-cash investing and financing activities during the current year.
2021
$
2020
$
(16,349,740)
(5,851,124)
39,512
349,233
-
8,765
49,753
1,436,170
62,473
(11,049)
1,815,700
92,976
(14,000,895)
(104,839)
14,085
(246,875)
17,821
(4,676,244)
50
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
24. SHARE BASED PAYMENTS
Share-based payments including performance rights and options are granted at the discretion of the Board to align the interests
of directors, executives and employees with those of shareholders.
Each performance right or option issued converts into one ordinary share of Genesis Minerals Limited on exercise. No amounts
are paid or payable by the recipient on receipt of the performance right or option. Performance rights and options neither carry
rights to dividends nor voting rights. Performance rights may be exercised at any time once the relative performance hurdle
has been satisfied prior to expiry date. Options may be exercised at any time from the date of vesting to the date of their expiry
by paying the exercise price.
6,400,000 options were issued during the year (2020: Nil), valued at $169,387 (2020: $nil). 16,000,000 options were exercised
during the year (2020: 1,800,000), nil options lapsed during the year (2020: 800,000) and nil options expired (2020: 4,800,000).
13,500,000 performance rights were issued during the year (2020: nil). The amount expensed during the year to the Statement
of Profit or Loss was $240,739 (2020: $nil).
An amount of $349,233 was expensed to share based payments for options and performance rights issued to directors and
employees (2020: $49,753).
Details of the options on issue during the current and previous year are set out below:
Grant
Date
Expiry
Date
Fair Value at
Valuation
Date (cents)
Exercise
Price
(cents)
Number
30 June
2020
13/12/17
13/12/19
20/04/18
31/07/20
13/12/17
13/12/20
13/12/17
13/12/21
29/11/18
29/11/20
29/11/18
29/11/21
29/11/18
29/11/22
10/12/20
10/12/22
10/12/20
10/12/23
10/12/20
10/12/24
Total
1.09
1.34
1.33
1.52
1.10
1.38
1.61
2.19
2.70
3.05
3.9
4.8
4.2
4.5
4.9
5.3
5.6
10.6
11.4
12.2
Number
Vested and
Exercisable at
30 June 2020
-
-
10,000,000
10,000,000
4,000,000
4,000,000
Number
30 June
2021
Number
Vested and
Exercisable at
30 June 2021
-
-
-
-
-
-
6,000,000
6,000,000
4,800,000
4,800,000
800,000
800,000
-
-
2,300,000
2,300,000
2,300,000
2,300,000
2,700,000
-
-
-
-
-
-
-
2,700,000
2,700,000
2,133,332
2,133,332
2,133,333
2,133,335
-
-
25,800,000
23,100,000
16,200,000 11,933,332
The movement in options on issue during the current and previous year is reconciled as follows:
Options outstanding at 30 June 2019
33,200,000
Number of
Options
Weighted Average
Exercise Price
(cents)
4.64
Weighted Average
Contractual Life
(days)
586
Issued during the year
Exercised during the year
Expired during the year
Lapsed during the year
Options outstanding at 30 June 2020
Issued during the year
Exercised during the year
Expired during the year
Lapsed during the year
-
(1,800,000)
(4,800,000)
(800,000)
25,800,000
6,400,000
(16,000,000)
-
-
-
4.90
3.90
4.20
4.77
11.40
4.63
-
-
304
Options outstanding at 30 June 2021
16,200,000
7.52
510
51
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
24. SHARE BASED PAYMENTS (continued)
The options that were issued during the year had their valuation calculated by using a Black-Scholes option pricing model
applying the following inputs:
Valuation date
Valuation date fair value
Valuation date share price
Exercise price
Expected volatility
Option life
Expiry date
Risk-free interest rate
27/11/20(1)
$0.0219
27/11/20(1)
$0.0270
27/11/20(1)
$0.0305
$0.078
$0.106
68.70%
2 years
10/12/22
0.085%
$0.078
$0.114
68.70%
3 years
10/12/23
0.105%
$0.078
$0.122
67.50%
4 years
10/12/24
0.290%
(1) The date of shareholder approval has been used as the valuation date.
Details of the performance rights on issue during the current and previous year are set out below. The performance rights
were issued on 15 September 2020 and they expire on 31 December 2021. The performance rights will only vest into fully
paid ordinary shares if the following relevant performance hurdles are met prior to the expiry date:
Performance Hurdle
These Performance Rights will vest and become exercisable upon the employee
remaining employed in the same role 12 months after the shareholder meeting date of
4 September 2020.
At the discretion of the Board these Performance Rights will vest and become
exercisable upon satisfactory meeting the following hurdles in the period to 31
December 2021:
• 1) Release of first JORC 2012 combined Mineral Resource > 2.0Moz Au for the
Greater Ulysses Project at a grade that supports reasonable prospects for
eventual economic extraction.
• 2) Approval of final investment decision by Genesis’ Board on the construction of a
standalone mining and processing operation at Ulysses
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 10-day VWAP of 1.5 x the Performance Rights Share Price of 7.6 cents
in the period leading up to 31 December 2021.
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 15-day VWAP of 1.75 x the Performance Rights Share Price of 7.6
cents in the period leading up to 31 December 2021.
These Performance Rights will vest and become exercisable when the Genesis share
price exceeds a 20-day VWAP of 2.0 x the Performance Rights Share Price of 7.6 cents
in the period leading up to 31 December 2021.
Total
Share Price
for
Performance
Rights to Vest
Number of
Performance
Rights
1,450,000
2,850,000
2,700,000
$0.114
1,300,000
$0.133
1,950,000
$0.152
3,250,000
13,500,000
No performance rights vested into fully paid ordinary shares during the year as the vesting conditions have yet to be met. No
performance rights have been cancelled during the year.
The performance rights that were issued during the year had their valuation measured by using the Company’s 5 day volume
weighted average share price as at the shareholder meeting date of 4 September 2020 of $0.076 per right. For each
performance hurdle a probability factor was assigned based on the Company’s estimate of the performance hurdle being met.
For the performance hurdles that have a market-based performance hurdle, the probability factor was determined by using a
Monte Carlo Simulation technique. The value of the performance rights is allocated to the Statement of Profit or Loss over the
vesting period.
52
Genesis Minerals Limited and controlled entities
Notes to the Consolidated Financial Statements
30 JUNE 2021
25. PARENT ENTITY INFORMATION
2021
$
2020
$
The following information relates to the parent entity, Genesis Minerals Limited. The information presented here has been
prepared using accounting policies consistent with those presented in Note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss for the year
11,069,818
15,447,441
26,517,259
(2,608,472)
(2,608,472)
11,300,497
5,430
11,305,927
(614,980)
(614,980)
23,908,787
10,690,947
76,970,610
2,058,066
(55,119,889)
23,908,787
52,166,259
1,708,833
(43,184,145)
10,690,947
(16,387,574)
(16,387,574)
(9,594,265)
(9,594,265)
The parent entity did not have any contingent liabilities, or any contractual commitments for the acquisition of property, plant
and equipment, as at 30 June 2021 or 30 June 2020.
26. FARM-IN AND JOINT VENTURE COMMITMENTS
The Group has the following interests in Farm-In and Joint Ventures:
Barimaia Joint Venture Gold Project
The Barimaia Joint Venture Gold Project is subject to a Joint Venture Agreement (Mt Magnet Joint Venture) formed on 29
November 2019 under which the Group’s 100% owned subsidiary, Metallo Resources Pty Ltd (Metallo) has earned an initial
65% interest in the Project. The Project is located in the Murchison District of Western Australia, 10km south-east of the Mt
Magnet Gold Mine, operated by ASX-listed Ramelius Resources Limited.
The joint venturers have agreed to conduct exploration to continue development of the Project by way of two separate joint
ventures. Metallo has been appointed the manager of the two joint ventures comprising the Mt Magnet Joint Venture.
Desdemona South JV Gold Project
On 10 December 2019, Genesis announced that it had entered into a Farm-in and Joint Venture agreement with Kin Mining
NL (ASX: KIN) over the Desdemona South JV Gold Project, located south of Leonora in Western Australia.
The initial Farm-In terms are as follows:
• Stage 1 Expenditure: Genesis must incur expenditure of not less than $250,000 (Minimum Expenditure) on the JV
Area within 18 months of Commencement. This stage has been met.
• Stage 2 Expenditure: Genesis may earn a 60% interest in the JV Area by incurring a further $750,000 expenditure
(total spend of $1,000,000) on the JV Area within 36 months of Commencement.
Once Genesis earns a 60% interest, Kin may elect to form a Joint Venture with participating interests of 60% Genesis and
40% Kin or grant Genesis the right to elect to sole contribute or form a JV. Once Genesis earns a 70% interest (if Kin does
not elect to from a JV at 60%), Kin may elect to form a Joint Venture with participating interests of 70% Genesis and 30% Kin
or grant Genesis the right to elect to sole contribute or form a JV to move to 80%.
Genesis would need to spend $2.6 million in total to earn an 80% interest in the JV.
53
Genesis Minerals Limited and controlled entities
Directors' Declaration
In the directors’ opinion:
(a)
the financial statements and notes set out on pages 27 to 53 are in accordance with the Corporations Act 2001,
including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the
financial year ended on that date;
(ii)
(b)
(c)
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and
payable; and
a statement that the attached financial statements are in compliance with International Financial Reporting Standards
has been included in the notes to the financial statements.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Michael Fowler
Managing Director
Perth, 28 September 2021
54
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GENESIS MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Genesis Minerals Limited (“the Company”) and its subsidiaries
(“the Group”), which comprises the consolidated statement of financial position as at 30 June 2021,
the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1(a)(i).
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require
that we comply with relevant ethical requirements relating to audit engagements and plan and perform
the audit to obtain reasonable assurance about whether the financial report is free from material
misstatement. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are independent of the
Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Exploration and Evaluation Assets
At balance date,
the carrying amount of
exploration and evaluation assets was
$23,352,807 (2020: $4,451,830). As disclosed
in note 2 to the financial report during the year
the Group changed its accounting policy from
expensing exploration expenditure as incurred,
to
related
transaction costs. The Consolidated Entity
continues to expense ongoing acquisition costs
incurred as allowable under AASB 6
as
Exploration for and Evaluation of Mineral Assets
(“AASB 6”).
capitalising
acquisition
and
The recognition and recoverability of exploration
and evaluation assets was considered a key
audit matter due to:
• The carrying value of
the assets
represents a significant asset of the
Group, we considered it necessary to
assess
and
circumstances existed to suggest the
carrying amount of this asset may
exceed the recoverable amount; and
whether
facts
• Determining
whether
impairment
involves significant
indicators exist
judgement by management.
Our audit procedures included but were not
limited to:
• Assessing management’s determination
of its areas of interest for consistency with
the definition in AASB 6 Exploration and
Evaluation of Mineral Resources (“AASB
6”);
• Assessing the Group’s rights to tenure for
a sample of permits and licenses;
• Testing
additions
the Group’s
to
capitalised exploration costs for the year
by evaluating a sample of recorded
expenditure for consistency to underlying
records, the capitalisation requirements of
the Group’s accounting policy and the
requirements of AASB 6;
• By testing the status of the Group’s tenure
and planned
future activities, reading
board minutes and discussions with
management we assessed each area of
interest for one or more of the following
circumstances
indicate
impairment of the capitalised exploration
costs:
that may
o The licenses for the rights to
explore expiring in the near future
or are not expected
to be
renewed;
o Substantive
expenditure
for
further exploration in the area of
interest
is not budgeted or
planned;
o Decision or intent by the Group to
discontinue activities
the
specific area of interest due to lack
in
of commercially viable quantities
of resources; and
o Data indicating that, although a
development in the specific area is
likely to proceed, the carrying
amount of the exploration asset is
unlikely to be recorded in full from
successful development or sale;
and
• Assessing the appropriateness of the
related disclosures
in
the
financial
statements.
Our audit procedures included but were not limited
to:
• Assessing with reference to the external
evaluation of the rehabilitation liability
conducted; and
• Assessing the accuracy of the calculations
used
rehabilitation
provision including the discount rate and
inflation rates applied.
to determine
the
Provision for Rehabilitation
As at 30 June 2021 the Group recorded a
provision for rehabilitation of $8,100,559 with
respect to its Kookynie and Ulyssees Gold
Projects.
Accounting for the provision for rehabilitation
constituted a key audit matter due to:
• The size and scope of the balance;
• The complexities inherent in such a
transaction; and
• The judgement required in determining
for
the provision
the value of
rehabilitation
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error. In Note 1(a)(i), the directors also state in accordance with Australian Accounting Standard AASB
101 Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are
to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2021. The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
DOUG BELL CA
Partner
Dated this 28th day of September 2021
Genesis Minerals Limited and controlled entities
ASX Additional Information
Additional information required by Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows. The
information is current as at 24 September 2021.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001
- 1,000
- 5,000
- 10,000
- 100,000
and over
Unlisted Options
Unlisted Performance
Rights
Ordinary Shares
Number of
holders
Number of
options
Number of
holders
Number of
rights
Number of
holders
Number of
shares
-
-
-
-
5
5
-
-
-
-
13,200,000
13,200,000
-
-
-
-
5
5
-
-
-
-
12,050,000
12,050,000
60
62
173
988
866
7,304
195,610
1,443,220
43,276,276
2,085,865,430
2,149
2,130,787,840
The number of shareholders holding less than a marketable parcel of shares are:
99
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are:
Rank Name
Units
% of Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
ALKANE RESOURCES LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BOTSIS HOLDINGS PTY LTD
STEFEAD INVESTMENTS PTY LTD
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