Gold Mountain Limited
Annual Report 2021

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CORPORATE DIRECTORY GOLD MOUNTAIN LIMITED ABN 79 115 845 942 ASX: GMN Directors Share Register Tim Cameron Executive Director Boardroom Pty Limited Syed Hizam Alsagoff Non-executive Director Pay Chuan Paul “Paul” Lim Non-executive Director Steven Larkins Non-executive Director Grosvenor Place, Level 12, 225 George Street, SYDNEY NSW 2000, GPO Box 3993, SYDNEY NSW 2001 Management Tim Cameron Chief Executive Officer Eric Kam Company Secretary & Chief Financial Officer Telephone: 1300 737 760 Facsimile: 1300 653 459 Solicitor Bird & Bird Lawyers Dan Smith Joint Company Secretary Level 22, 25 Martin Place SYDNEY NSW 2000 Australia Registered and Principal Office Suite 2501, Level 25 31 Market Street SYDNEY NSW 2000 Australia Banker Australia and New Zealand Banking Group Limited Telephone: +61 2 9261 1583 Auditor info@goldmountainltd.com.au KS Black & Co. Chartered Accountants www.goldmountainltd.com.au Level 1, 251 Elizabeth Street, SYDNEY NSW 2000 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 1 LETTER TO SHAREHOLDERS Dear Shareholders, On behalf of the Board of Gold Mountain Limited, I am pleased to present to you our Annual Report for the year to 30 June 2021. Our sincere condolence goes out to the family, friends, and colleagues of the late Mr Tony Teng whom sadly passed away peacefully on May 16th, 2021. Mr Teng was one of the founders of Gold Mountain and will be very much missed. I am pleased to be able to continue Tony’s good work at the Company’s Wabag Project in Papua New Guinea (PNG). During the 2021 financial year the Company continued to face significant operational challenges due to Covid- 19. I am very pleased to advise that Covid-19 has had limited impacts on our staff and contractors and the Company has managed to maintain exploration momentum and to steer the business into a drill-intensive phase. During the year, the company concentrated on continued regional exploration programmes and the drill testing of the Monoyal copper-molybdenum-gold porphyry prospect with two additional holes being drilled at that prospect. The holes were drilled to depths of 684m (MCD008) and 637m (MCD009). Both holes intersected wide zones of copper and molybdenum mineralisation with the widest zone of copper anomalism intersected in MCD008 which recorded 175m @ 0.11% Cu and 65ppm Mo. Significant efforts were directed at Mt Wipi (EL2632) after it was granted to the company in August 2020. A staged exploration programme was commenced which included a review of airborne geophysics and historical information, reconnaissance work comprising of ground checking of target areas followed up by soil sampling and trench sampling programmes. The results derived from the programme highlights the significant prospectivity and is positioned to become the major focus of a drilling program going forward. In the years ahead, the company will continue exploration within its Wabag tenements at Mt Wipi, Monoyal (Lombokai Creek) and Sak Creek. The Company will continue in the 2022 financial year with the aim of identifying high quality targets for soil sampling, trenching and drill testing with the ambition of realising at least one economic resource. I extend my thanks to those shareholders that have continued to help fund the Company throughout the year and in the recent capital raise I would also like to thank my fellow directors Syed Hizam Alsagoff, Pay Chuan (Paul) Lim for their continued support and encouragement in setting the Company on an exciting pathway to success and welcome Steven Larkins who subsequently joined the Board this July. To all shareholders of the Company, I thank you for your support and I genuinely believe Gold Mountain Limited is now positioned to capitalise on significant exploration results. Tim Cameron Executive Director GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 2 TABLE OF CONTENTS CORPORATE DIRECTORY ........................................................................................................................................... 1 LETTER TO SHAREHOLDERS ....................................................................................................................................... 2 TABLE OF CONTENTS .......................................................................................................................................... 3 DIRECTORS’ REPORT ................................................................................................................................................. 4 Interest in the Shares and Options of the Company .......................................................................................... 6 Operations Report .............................................................................................................................................. 9 Remuneration Report (Audited) ........................................................................................................................ 18 SCHEDULE OF TENEMENTS ...................................................................................................................................... 23 AUDITOR’S INDEPENDENCE DECLARATION ................................................................................................................ 24 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (for the year ended 30 June 2021) ..................................................................................................................................................................... 25 STATEMENT OF FINANCIAL POSITION (as at 30 June 2021) ........................................................................... 26 STATEMENT OF CHANGES IN EQUITY (for the year ended 30 June 2021) ...................................................... 27 STATEMENT OF CASHFLOWS (for the year ended 30 June 2021) .................................................................... 28 NOTES TO THE FINANCIAL STATEMENTS (for the year ended 30 June 2021) ................................................ 29 DIRECTORS’ DECLARATION ...................................................................................................................................... 56 INDEPENDENT AUDITORS REPORT ............................................................................................................................ 58 INDEPENDENT AUDITORS REPORT Continued ................................................................................................ 59 INDEPENDENT AUDITORS REPORT Continued ................................................................................................ 60 INDEPENDENT AUDITORS REPORT Continued ................................................................................................ 61 ADDITIONAL SHAREHOLDER INFORMATION (as at 16 September 2021) ....................................................... 63 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 3 DIRECTORS’ REPORT Your Directors submit the annual financial report of Gold Mountain Limited for the financial year ended 30 June 2021. In order to comply with the provisions of the Corporations Act, the Directors’ report as follows: KEY MANAGEMENT PERSONNEL DISCLOSURES DIRECTORS The names of Directors who held office during or since the end of the year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Tim Cameron (appointed 1/12/2020) Syed Hizam Alsagoff Pay Chuan “Paul” Lim Steven John Larkins (appointed 12/7/2021) Sin Pyng “Tony” Teng (ceased 17/5/2021) Names, qualifications, experience, and special responsibilities Tim Cameron Executive Director (appointed 1 December 2020) Experience Mr Cameron is an experienced mining executive with sound leadership, technical, corporate, and financial skills underpinned by a reputation of innovation, integrity, and determination. Mr Cameron's expertise encompasses strategic direction, acquisitions and business and project management. With experience in both domestic (Australia) and international (North America and Asia) operations, he has played an integral part in several successful exploration and open cut mining operations. Interest in Shares and Options 1,918,462 ordinary shares 33,333 quoted options (GMNOA) exercisable at $0.04 expiring 16 February 2023 Directorships held in other listed entities 909,231 unlisted options exercisable at $0.1475 expiring 3 July 2022 No directorships held of ASX listed entities in the past three years Syed Hizam Alsagoff Non-Executive Director Qualifications B.Sc (Finance/Economics) Experience Interest in Shares and Options Directorships held in other listed entities Mr Alsagoff has extensive network and experience in investment and corporate strategies in Asia and globally, of over 20 years’ experience in senior operational and corporate leadership roles in diverse sector operations across several countries including distribution of industrial, electronic components and satellite manufacturing, engineering, construction, property, and infra-structure development. He is on the board of several public and private companies and currently serves as the Group Chief Financial Officer with Cahya Mata Sarawak Berhad (CMS:MK). 26,015,483 ordinary shares 2,033,382 quoted (GMNOA) at $0.04 expiring 16 February 2021 5,000,000 performance options exercisable at $0.1475 expiring 31 December 2025 (GMNAT) No directorships held of ASX listed entities in the past three years. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 4 Pay Chuan “Paul” Lim Non-Executive Director Qualifications B.S.E.E., M.Eng., PEPC, FIEM, PMP, ACPE, APEC Eng., IntPE(MY), AER Experience Paul Lim is an entrepreneur and a Chartered Professional Engineer of more than 20 years’ experience in multi- disciplinary organisations in the engineering industry; in power generation, transmission, distribution and automation systems, and telecommunications. He is the current Executive Director and Group Chief Executive Officer of Pestech International Berhad, a global integrated electrical power technology company listed in the Kuala Lumpur Stock Exchange (PEST:MK). Interest in Shares and Options 76,050,000 ordinary shares 8,783,333 quoted options (GMNOA) exercisable at $0.04 expiring 16 February 2023 15,000,000 unlisted options (GMNAC) exercisable at $0.1475 expiring 3 December 2021 5,000,000 performance options (GMNAT) exercisable at $0.1475 expiring 31 December 2025 Directorships held in other listed entities No directorships held of ASX listed entities in the past three years Steven Larkins Non-Executive Director (appointed 12 July 2021) Qualifications B.Comm., LLB Experience With extensive experience in the areas of capital markets, risk management, compliance, corporate governance and mineral exploration, Steven currently holds the role of Director- Capital Markets at AIMS Financial Group, a diversified financial services and investment group. He has previously held senior stockbroking and investment banking positions at Commonwealth Bank of Australia, Bell Potter and Goldman Sachs JBWere. He has also served as the Chief Executive Officer of High Peak Royalties (ASX:HPR), and oil and gas royalties company. Interest in Shares and Options Directorships held in other listed entities 666,666 ordinary shares 1,000,000 quoted options (GMNOA) exercisable at $0.04 expiring 16 February 2023. No directorships held of ASX listed entities in the past three years. Sin Pyng “Tony” Teng Executive Director (appointed 9 July 2014, ceased 17 May 2021). MANAGEMENT Tim Cameron Chief Executive Officer Mr Cameron is an experienced mining executive with sound leadership, technical, corporate, and financial skills underpinned by a reputation of innovation, integrity, and determination. Mr Cameron's expertise encompasses strategic direction, acquisitions and business and project management. With experience in both domestic (Australia) and international (North America and Asia) operations, he has played an integral part in several successful exploration and open cut mining operations. Eric Kam Company Secretary Qualifications: FCPA, FCMA, MBA, MAICD Mr Kam has extensive experience in finance and operations management across diverse businesses and industries in engineering, construction, mining & resources, technology, finance, marketing, and distribution. He is involved in corporate change and listing of companies and is also on the board of several other companies. Mr Kam has had extensive experience as Company Secretary in several public listed and unlisted companies. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 5 Dan Smith Joint-Company Secretary Qualifications: BA, FGIA, GradDip ACG Mr Smith is a Chartered Secretary who holds a BA, is a fellow member of the Governance Institute of Australia and has in excess of 13 years primary and secondary capital markets expertise. Mr Smith is currently a Director and Company Secretary of several AIM-listed, and ASX-listed companies, including Europa Metals Limited and Lachlan Star Limited, and is also the Company Secretary of Vonex Ltd. Interest in the Shares and Options of the Company DIRECTOR’S SHAREHOLDINGS As at the date of this report, the interests of the Directors in the securities of Gold Mountain Limited are: Director Name Tim Cameron Shares and Options Shares and Options Direct Indirect 1,918,462 ordinary shares 33,333 quoted options exercisable at $0.04 expiring 16 February 2023 (GMNOA) 909,231 unlisted options exercisable at $0.1475 expiring 3 July 2022 (GMNAC) Syed Hizam Alsagoff 10,433,483 ordinary shares 15,582,000 ordinary shares 2,033,382 quoted options exercisable at $0.04 expiring 16 February 2023 (GMNOA) 5,000,000 performance options exercisable at $0.1475 with vesting conditions expiring 31/12/2025 (GMNAT) Pay Chuan “Paul” Lim 49,350,000 ordinary shares 26,700,000 ordinary shares 6,450,000 quoted options exercisable at $0.04 expiring 16 February 2023 (GMNOA) 2,333,333 quoted options exercisable at $0.04 expiring 16 February 2023 (GMNOA) 15,000,000 unlisted options exercisable at $0.1475 expiring 3 December 2021 (GMNAC) 5,000,000 performance options exercisable at $0.1475 with vesting conditions expiring 31 December 2025 (GMNAT) Steven Larkins 666,666 ordinary shares 1,000,000 quoted options exercisable at $0.04 expiring 16 February 2023 (GMNOA) GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 6 Movement in equity instruments (other than options and rights) As at the date of this report, the interests of the Directors in the securities of Gold Mountain Limited are: Details of the movement in equity instruments (other than options and rights) held directly, indirectly, or beneficially by Directors and Key Management Personnel and their related parties are as follows: 30 June 2021 Sin Pyng “Tony” Teng Syed Hizam Alsagoff Pay Chuan “Paul” Lim Tim Cameron Total 30 June 2020 Balance at beginning of the Year Granted as remuneration during the Year Issued on Exercise of Options during the Year 17,843,333 19,915,333 50,000,000 - 87,758,666 - - - - - - - - - - Other changes during the Year (17,843,333) Balance at end of the Year - - 19,915,333 50,000,000 1,818,462 1,818,462 (16,024,871) 71,733,795 Balance at beginning of the Year Granted as remuneration during the Year Issued on Exercise of Options during the Year Other changes during the Year Balance at end of the Year Sin Pyng “Tony” Teng 9,510,000 Syed Hizam Alsagoff Pay Chuan “Paul” Lim Tim Cameron Total Exercise of Options - - - 9,510,000 - - - - - - - - - - 8,333,333 17,843,333 19,915,333 19,915,333 50,000,000 50,000,000 - - 78,248,666 87,758,666 No ordinary shares were issued by the Company during and/or since the end of the financial year as a result of the exercise of options by Directors and Key Management Personnel and their related parties. There are no unpaid amounts on the shares issued. Options and Rights Holdings Details of movements in options and rights held directly, indirectly, or beneficially by Directors and Key Management Personnel and their related parties are as follows: 30 June 2021 Balance at beginning of the Year Granted as remuneration during the Year Issued on Exercise of Options during the Year Sin Pyng “Tony” Teng 12,333,334 10,000,000 Syed Hizam Alsagoff 3,333,334 5,000,000 Pay Chuan “Paul” Lim 30,000,000 5,000,000 Tim Cameron Steven Larkins Total 45,666,668 20,000,000 - - - - Other changes during the Year Balance at end of the Year (22,333,334) (1,666,667) 6,666,677 (15,000,000) 20,000,000 1,818,462 1,818,462 (37,181,539) 28,483,129 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 7 30 June 2020 Sin Pyng “Tony” Teng Syed Hizam Alsagoff Pay Chuan “Paul” Lim Graham Kavanagh Douglas Smith Tim Cameron Total Balance at beginning of the Year Granted as remuneration during the Year Issued on Exercise of Options during the Year Other changes during the Year Balance at end of the Year 9,000,000 - - 2,500,000 5,000,000 - 16,500,000 - - - - - - - - - - - - - - 3,333,334 12,333,334 3,333,334 3,333,334 30,000,000 30,000,000 (2,500,000) (5,000,000) - - - - 29,166,678 45,666,668 Options on issue at the date of this report are: Issue Date Number Expiry Date Exercise price* Number of holders ASX Code 3 Dec 2019 56,616,667 3 Dec 2021 15 Mar 2020 12,911,539 16 Mar 2022 5 Jun 2020 11,131,539 5 Jun 2022 3 Jul 2020 23,411,924 3 Jul 2022 7 Oct 2020 39,000,000 8 Oct 2022 30 Dec 2020 11,000,000 31 Dec 2022 30 Dec 2020 20,000,000 31 Dec 2025 18 Aug 2021 111,599,898 16 Feb 2023 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.04 20 6 6 5 4 1 3 288 GMNAC GMNAC GMNAG GMNAC GMNAR GMNAS GMNAT° GMNOAΔ * Consistent with ASX Listing Rule 6.22, a reduction of $0.0025 is applied to the original exercise price of the $0.15 unquoted options to $0.1475 following the pro-rata issue under a Rights Offer. ° GMNAT performance options under the Employee Share Option Plan (ESOP) are exercisable at $0.1475 (after adjustment of exercise price) until expiry date 31/12/2025 and subject to vending condition that the total options granted shall be vested over 3 periods of 12 months per period. Δ GMNOA – Listed Options expiring 16 February 2023 Dividends No dividends have been paid or declared since the start of the financial year and/or the Directors do not recommend the payment of a dividend in respect of the financial year. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 8 Operations Report Principal Activities The principal activity of the Company during the financial period was to acquire, explore and develop areas that are highly prospective for gold and other precious and base metals and minerals in Australia and Papua New Guinea. Operating and Financial Review (i) Operations Gold Mountain is an exploration company operating in Australia and Papua New Guinea to acquire, explore and develop areas that are highly prospective for gold and other precious and base metals and minerals. The Company creates value for shareholders, through exploration activities which develop and quantify mineral assets. Once an asset has been developed and quantified within the framework of the JORC guidelines the Company may elect to move to production, to extract and refine ore which will then be available for sale as a primary product. The Company is actively exploring and developing the Wabag Gold Project in Papua New Guinea. Please refer to the Review of Operations for more information on the status of the projects. (ii) Financial Performance & Financial Position The financial results of the Company for the five (5) years to 30 June 2021 are: 30 June 2021 30 June 2020 30 June 2019 30 June 2018 30 June 2017 Cash and cash equivalents 780,283 1,835,586 54,070 2,985,066 2,693,337 Net assets 27,740,321 25,434,816 20,296,725 19,275,974 12,420,975 Revenue & financial income 888,163 105,844 48,529 119,426 32,874 Net loss after tax (1,394,982) (1,569,877) (1,401,021) (1,484,473) (1,279,915) EBITDAX (1,394,982) (1,569,877) (1,401,021) (1,257,241) (840,424) Share price at 30 June Loss per share (cents) $0.030 (0.18) $0.066 (0.25) $0.066 (0.27) $0.100 (0.32) $0.086 (0.35) a) Financial Performance The net loss after tax of the Company for the financial year after tax amounted to $1,394,982 (2020: Loss $1,569,877). The Company is creating value for shareholders through its exploration expenditure and currently has no revenue generating operations. Revenue and financial income are generated from interest income from funds held on deposit and miscellaneous income. As the average funds held on deposit and prevailing low interest on deposits have decreased during the year, accordingly interest income has further decreased from $1,471 to $946 when compared to the prior year. The Company also received $55,685 as rental income in FY 2021 (FY 2020: $51,007) from sub-leasing unused office space at its Sydney CBD office. In addition, the Company received the Government support during COVID-19 of Cash Boost and wages subsidy JobKeeper payments of $20,500 during FY 2021. During the year, the operations relating to the Papua New Guinea gold project continued and expanded as the Company undertook its exploration program, accordingly, deferred exploration expenditure increased from $19,722,600 at 30 June 2020 FY to $21,868,365 at 30 June 2021. Personnel and external consulting requirements and legal and professional costs have increased in FY 2021 to $218,720 (FY 2020 $176,777). There was a reduction in public and investor relations expense from $405,545 in the 2020 FY to $117,973 in the FY 2021. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 9 b) Financial Position The Company’s main activity during the year was the investment of cash of $780,283 (2020: $1,835,586). The carrying value of the exploration assets and the capitalised exploration assets increased by $2,145,765 or 11% to $21,868,365 (2020: 19,722,600) after adjusting for impairments for relinquished tenements. The 30 June 2021 financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the year ended 30 June 2021, the Company recorded a loss after tax of $1,394,982 (2020: Loss $1,569,877) and had a net working capital deficit of $444,766 (30 June 2020: deficit of $737,437). As the Company is an exploration and development entity, ongoing exploration and development activities are reliant on future capital raisings. Based on these facts, the Directors consider the going concern basis of preparation to be appropriate for this financial report. (iii) Business Strategies and Prospects for future financial years The Company actively evaluates the prospects of each project as results from each program become available, these results are available via the ASX platform for shareholders information. The Company then assesses the continued exploration expenditure and further asset development. The Company will continue the evaluation of its mineral projects in the future and undertake generative work to identify and acquire new resource projects. There are specific risks associated with the activities of the Company and general risks which are largely beyond the control of the Company and the Directors. The risks identified below, or other risk factors, may have a material impact on the future financial performance of the Company and the market price of the Company’s shares. a) Operating Risks The operations of the Company may be affected by various factors, including failure to locate or identify mineral deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties encountered in mining, sovereign risk difficulties in commissioning and operating plant and equipment, mechanical failure or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment. b) Environmental Risks The operations and proposed activities of the Company are subject to the laws and regulations of Australia and Papua New Guinea concerning the environment. As with most exploration projects and mining operations, the Company’s activities are expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. It is the Company’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws. c) Economic General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s exploration, development, and production activities, as well as on its ability to fund those activities. d) Market conditions Share market conditions may affect the value of the Company’s quoted securities regardless of the Company’s operating performance. Share market conditions are affected by many factors such as: (i) (ii) (iii) (iv) (v) (vi) general economic outlook; introduction of tax reform or other new legislation; interest rates and inflation rates; changes in investor sentiment toward particular market sectors; the demand for, and supply of, capital; and terrorism or other hostilities. The market price of securities can fall as well as rise and may be subject to varied and unpredictable influences on the market for equities in general and resource exploration stocks in particular. Neither the Company nor the Directors warrant the future performance of the Company or any return on an investment in the Company. e) Additional requirements for capital GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 10 The Company’s capital requirements depend on numerous factors. Depending on the Company’s ability to generate income, the Company will require further financing. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations and scale back its exploration programmes. There is however no guarantee that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to the Company. f) Speculative investment The above list of risk factors ought not to be taken as exhaustive of the risks faced by the Company or by investors in the Company. The above factors, and others not specifically referred to above, may in the future materially affect the financial performance of the Company and the value of the Company’s shares. Potential investors should consider that the investment in the Company is speculative and should consult their professional advisers before deciding whether to invest. Corporate Capital Raisings On 3 July 2020, the Company raised $768,550 for working capital purposes through the issue of 11,823,847 shares at $0.065 each. In addition, 5,911,924 10c-Options and 23,411,924 15c-Options were issued as entitlement of unlisted options to the issued shares, including 17,500,000 15c-Options allocation to an Introducer and Promoter for past services rendered. On 7 October 2020, the Company issued 10,000,000 shares to promoters of the Company at a deemed issue price of $0.05 each following shareholder approval. In addition, 39,000,000 unlisted 15c-Options were issued to the promoters. On 16 November 2020, the Company issued 38,909,090 shares at $0.055 each to raise $2 million. On 29-30 December 2020, the Company issued 15,190,910 shares at $0.055 each to raise $835,500. On 30 April 2021, the Company issued 23,962,500 shares at $0.04 each to raise $958,500 towards general working capital of the Company. On 12 May 2021, the Company announced that it has received a combination of funds and commitments from investors totalling $2.5 million, of which approximately $1 million of the funding already received with placement shares issued Options On 3 July 2020, the Company granted 29,323,848 free unlisted options to participants in the share placement on the same date in two separate tranches of options. One option tranche is at an exercise price of $0.10 expiring on 3 July 2021 and the other option tranche is at an exercise price of $0.15 expiring 3 July 2022 with no vesting conditions. Of the options at exercise price $0.15 expiry 3 July 2022, 17,500,000 options were granted to a Promoter for past services rendered. On 7`October 2020, the Company issued 39,000,000 unlisted options of exercise price $0.15 expiring 8/10/2022 to Promoters for past services rendered. The issue to Promoters were approved by shareholders at the extraordinary general meeting held on 2 October 2020. On 29 December 2020, the Company issued 11,000,000 options at exercise price $0.15 expiring 31 December 2022 to Promoters for past services rendered and the grant of 20,000,000 performance options under ESOP at exercise price $0.15 expiring 31/12/2025 to certain directors of the Company. The options issued on 30 December 2020 were consistent with the approved resolutions by shareholders at the extraordinary general meeting held on 2 October 2020. Board and Management On 1 December 2020, the Company announced the appointment of Tim Cameron, CEO to take on the role as the Company’s Executive Director effective immediately. Post financial year end, on 5 July 2021, the Company announced the appointment of Daniel Smith as joint company secretary. Post financial year end, on 12 July 2021, the Company announced that it has appointed Steven Larkins as a non-executive director. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 11 Review of Operations Wabag Project - Papua New Guinea (PNG) During the reporting period the Company continued exploration at its Wabag Project in Papua New Guinea. Exploration activity was primarily focused exploring for porphyry copper – gold and molybdenum mineralisation, and related skarn style mineralisation. Most of the exploration work undertaken at the Wabag project over the last year was at Monoyal on EL2306 where the company drilled two holes into a potential porphyry copper deposits and at the recently granted Mt Wipi tenement (EL2632) which is highly prospective for both porphyry copper – gold deposits and associated skarn mineralisation. Between October 2020 and March 2021, the Company drilled an additional two diamond holes (MCD008 to MCD009) for a total of 1,313 m at the Monoyal prospect located within EL2306. The holes were drilled to depths of 684m (MCD008) and 637m (MCD009). Both holes intersected wide zones of copper and molybdenum mineralisation with the widest zone of copper anomalism intersected in MCD008 which recorded 175m @ 0.11% Cu and 65ppm Mo. In addition to the drill holes completed at Mongae and Monoyal, Gold Mountain extended the exploration out from the central porphyry intrusive to the contact zone between the porphyry intrusive (Wale Batholith) and the adjacent carbonaceous sediments. This work identified the Lombokai prospect where skarn mineralisation was observed, and rock chip samples taken from outcrop returned high levels of copper, gold, silver, and zinc mineralisation. Exploration work was also conducted in a well-defined structural corridor which hosts the Monoyal and Sak creek prospects with stream sediment sampling and rock chip sampling undertaken in this zone. EL2632 – Mt Wipi was granted in August 2020. Rock samples bearing high levels of copper mineralisation were shown to Gold Mountain’s geologists during the Wardens hearing for the tenement in 2019 and after the grant of the tenement exploration work on the EL commenced. Exploration work comprises initial reconnaissance stream sediment and rock chip sampling in and around the area where the cupriferous rock samples came from (Waa Creek). This was followed up by channel sampling and a grid-based soil programme. Extensive coincident copper – gold and molybdenum anomalies were recorded by the sampling programme and trenches were designed to traverse areas of high copper in soil geochemistry. More than 900 soil samples were collected from EL2632 during the year. The soil sampling grid is currently being expanded out over the EL to cover additional target areas identified from reconnaissance work and an interpretation of the airborne magnetic data. A summary of the sampling statistics for year for the various exploration leases held by Gold Mountain and which comprise part of the Wabag Project is included as Table 1. Table 1. FY2021 Sample Statistics for the Individual Wabag Tenements Table 2. Summary of Sample Statistics for the Wabag Project GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 12 Exploration Programme The focus of exploration undertaken by the Company over the last twelve months has been the continuation of the diamond drilling programme at the Monoyal and Mongae prospect and undertaking an aggressive exploration programme on the Mt Wipi tenement (EL2632) which was granted in August 2020. Drilling resumed at the Monoyal – Mongae prospect in late 2020 with two holes, MCD008 and MCD009 drilled to depths of 684m and 637m, respectively. Drilling commenced at MCD008 and MCD009 in October 2020 and was completed by the end of February 2021. Drill hole parameters and the drill hole locations are presented in Table 3 and Figure [1]. Figure 1. Drill Hole Location Map (Monoyal – Mongae) Table 3. Monoyal MCD008 and MCD009 drillhole parameters MCD008 intersected wide zones of low-grade copper mineralisation with associated Mo mineralisation. The Molybdenum mineralisation is persistent and extensive, with the last 94m of the hole assaying an average 133ppm Mo. MCD008 was designed to test beneath the highly anomalous Cu and Mo mineralisation intersected in MCD003 and MCD004, and it was hoped that this hole would test the core of the porphyry system where higher grade copper mineralisation was postulated to occur. While higher grade zones were not intersected by MCD008, long continuous zones of +0.10% Cu were associated with very anomalous Mo mineralisation. The best intercept recorded was 177m @ 0.11% Cu and 65ppm Mo from 277m, which was calculated using a 700ppm cut-off grade (COG). MCD008 confirms that the Monoyal prospect contains a very large low-grade porphyry, however, to date no economic grade intercepts have been intersected. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 13 MCD009 was drilled at the Mongae prospect in January and February 2021. The hole was completed to a depth of 637m and was drilled to test below and along strike of elevated copper geochemistry intersected by hole MCD002, drilled in 2018. The hole intersected the Wale Batholith in the top 309m of the hole and at sporadic intervals for the rest of the hole. A micro-diorite, or a less differentiated phase of the Wale Batholith, was intersected in the remainder of the hole. MCD009 intersected widespread copper mineralisation with the entire hole assaying an average 650ppm Cu with associated Mo. Higher grade zones (+0.1% Cu) were intersected throughout the hole with the best intercept being 20m @ 0.18% Cu from 75m. Results for MCD008 and MCD009 are presented in Table 4. Table 4. MCD008 and 009 – Significant Results *All Intercepts presented in Tables above were calculated using a 700ppm Cu COG, using a 3m minimum width with a 700ppm Cu COG, with maximum internal dilution of 3m Drilling at the Monoyal and Mongae prospects has been paused pending a review of the geochemistry and to undertake further geological modelling to better understand the nature of the Mongae – Monoyal Porphyry and to determine if there is evidence for a high-grade mineralised core. In addition to the drilling programme at Monoyal and Mongae, Gold Mountain undertook an aggressive exploration programme at the Mt Wipi tenement (EL2632). Mt Wipi is located North West of Mongae and is in the same regional structural corridor that hosts the Mongae – Monoyal and Sak Creek Prospects. The location of the recently granted Mt Wipi tenement is presented in Figure 2. Exploration work on the tenement included a review of the airborne magnetic data flown over the area in 2015 by Fugro [International]. Initial reconnaissance programmes commenced in September 2020 and centred on Waa Creek, where cupriferous rock samples were found by the local landowners. This was followed up by stream sediment sampling, channel sampling and a details soil sampling programme over the Waa Creek catchment area where highly anomalous copper and gold mineralisation was identified in several drainages, Figure 3. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 14 Figure 2. Location Map for EL2632, Overlain on the Airborne Magnetics Imagery Figure 3. Stream Sediment sample Results – Waa Creek area GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 15 Over 1,000 soil samples were collected over the Waa Creek grid between January and June 2021. This work culminated in the identification of geochemical targets which will be targeted with further exploration work, including trenching and drilling. The targets are referred to as: • Target 1A o Coincident copper/molybdenum/tungsten/indium anomaly over 800m in length x 250m width and includes target 1B at the o o southern end of the anomaly The anomalous geochemistry appears to drape along the western edge of a potassium high in the airborne radiometric data Additional sampling is required to the Northwest along strike as well as infill sampling within the anomaly given that the >0.1% copper values were returned in the area • Target 1B o Coincident copper/molybdenum/gold/tungsten/indium anomaly at the southern end of that described above for target A o Copper values at this location returned >0.2% Cu and is associated with anomalous gold • Target 2 o o This is a strong tellurium/copper/gold anomaly with partially coincident tungsten/indium/tin defined along a NE linear feature possibly indicating a base metal/gold vein peripheral to a porphyry system under cover, unlike that at Targets 1A and 1B The anomaly appears to lie along the North West edge of a potassic anomaly and coincident with a strong magnetic low • Target 3 o This shows a strong Copper anomaly which is approximately 5 times the background readings, there is also a moderate indium/molybdenum/gold/tin system at the northern end of a 750 x 250m copper response which drapes over the western edge of a potassic anomaly within a diffuse magnetic high The location of the three target areas described are presented on which also show the location of the previous, stream and rock geochemistry and the airborne magnetic date. The photograph of the area that hosts Target 1A and 1B is presented in Figure 4. Figure 4. Gold rock Chip, stream sediment soil geochemistry for the Waa Creek Prospect – Mt Wipi GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 16 Risk management Details of the Company’s Risk Management policies are contained within the Corporate Governance Statement. Corporate Governance A statement disclosing the extent to which the Company has followed the best practice recommendations set by the ASX Corporate Governance Council during the period is displayed on the Company’s website. Subsequent events after balance date On 5 July 2021, the Company announced the appointment of Daniel Smith as joint company secretary. On 12 July 2021, the Company announced that it has appointed Steven Larkins as a non-executive director. On 14 July 2021, the Company advised that the Federal Court had made orders in relation to the matter of tainted shares (under s.708A(5) and s.708A(11) of the Corporations Act) on 5 July 2021 and on 13 July 2021 validating the sales of those tainted shares respectively after and before July 2014. On 14 July 2021, the Company announced a renounceable rights issue offer to eligible shareholders to raise up to $5.1 million (before costs) to fund exploration of its Wabag project, repay debt, working capital and to meet the costs of the offer. In addition, the Company issued 32,424,242 shares to satisfy the obligation of adjustment shares to the subscribers of a placement announced on 16 November 2020. The shares issued were at a deemed price at $0.02. On 19 August 2021, the Company advised an adjustment to the option exercise price under ASX Listing Rule 6.22 following the pro-rata entitlement rights offer. Accordingly, a reduction applies to the original exercise price of the $0.15 issued options by $0.0025. The amended exercise price of $0.1475 applies to all of the current unlisted options. On 9 September 2021, the Company announced the results of a successful trenching at Mt Wipi. The 306m long trench MWTR003 recorded best intercepts of 37m @ 0.24g/t Au, 0.25% Cu and 5.4g/t Ag from 6m, which includes a 22m zone from 9m which assays 0.38g/t Au, 0.32% Cu and 7.7g/t Ag, and 62m @ 0.20g/t Au, 0.18% Cu and 4.65g/t Ag from 145m, which includes a 26m zone from 145m which assays 0.29g/t Au, 0.28%bCu and 6.7g/t Ag. There has not been any other matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods. Environmental legislation The Company is subject to significant environmental and monitoring requirements in respect of its natural resource exploration activities. The Directors are not aware of any significant breaches of these requirements during the period. Identification of Insurance of Directors and Officers The Company has agreed to indemnify all the Directors of the Company for any liabilities to another person (other than the Company or related entity) that may arise from their position as Directors of the Company, except where the liability arises out of conduct involving a lack of good faith. During the financial year, GMN paid a premium in respect of a contract insuring the Directors and officers of the Company against any liability incurred in the course of their duties to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 17 Remuneration Report (Audited) The Board, in consultation with the Remuneration Committee, is responsible for determining and reviewing compensation arrangements for the directors and executive management. The Board assesses the appropriateness of the nature and amount of remuneration of key personnel on an annual basis. In determining the amount and nature of officers’ packages, the Board takes into consideration the Company’s financial and operational performance along with industry and market conditions. The Committee has the authority to retain any outside advisor at the expense of the Company, without the Board’s approval, at any time and has the authority to determine any such advisor’s fees and other retention terms. In setting corporate goals and objectives relevant to Senior Executives’ compensation, the Committee considers both short-term and long-term compensation goals and the setting of criteria around this. In relation to setting Directors’ remuneration the Committee looks at and considers comparative data from similar companies. This report outlines the remuneration arrangements in place for Directors and Key Management Personnel of Gold Mountain Limited (the “Company”) for the financial year ended 30 June 2021. The following persons acted as Directors during or since the end of the financial year: Sin Pyng “Tony” Teng (ceased 17/5/2021) Syed Hizam Alsagoff Pay Chuan “Paul” Lim Tim Cameron (appointed 1/12/2020) Steven Larkins (appointed 12/7/2021) The term ‘Key Management Personnel’ is used in this remuneration report to refer to the following persons. Except as noted, the named persons held their current position for the whole of the financial year and since the end of the financial year: Sin Pyng “Tony” Teng (ceased 17/5/2021) Eric Kam Tim Cameron Remuneration Philosophy Dan Smith (w.e.f. 5/7/2021) The performance of the Company depends upon the quality of the Directors and executives. The philosophy of the Company in determining remuneration levels is to: • • • set competitive remuneration packages to attract and retain high calibre employees; link executive rewards to shareholder value creation; and establish appropriate, demanding performance hurdles for variable executive remuneration Remuneration Committee The Remuneration Committee of the Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the Directors and the Senior Management team. The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of Directors and senior executives on a periodic basis by reference to relevant employment market conditions with an overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executive team. Remuneration Structure In accordance with best practice Corporate Governance, the structure of Non-Executive Director and executive remuneration is separate and distinct. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 18 Non-Executive Director Remuneration The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. Each Director is entitled to such remuneration from the Company as the Directors decide, but the total amount provided to all non-executive directors must not exceed in aggregate the amount fixed by the Company in a general meeting. The aggregate remuneration for all non-executive directors has been set at an amount of $300,000 per annum. The ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time by a general meeting. The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst Directors is reviewed annually. The Board considers advice from external shareholders as well as the fees paid to Non-Executive Directors of comparable companies when undertaking the annual review process. Each Director is entitled to receive a fee for being a Director of the Company. The remuneration of Non-Executive Directors for the year ended 30 June 2021 is detailed in the Remuneration of Directors and named executives section of this report on the following pages of this report. Senior Manager and Executive Director Remuneration Remuneration consists of fixed remuneration and Company options (as determined from time to time). In addition to the Company employees and Directors, the Company has contracted key consultants on a contractual basis. These contracts stipulate the remuneration to be paid to the consultants. Fixed Remuneration Fixed remuneration is reviewed annually by the Independent Directors’ Committee (which assumes the role of the Remuneration Committee). The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Committee has access to external, independent advice where necessary. Fixed remuneration is paid in the form of cash payments. The fixed remuneration component of the five most highly remunerated Company executives is detailed in Table 1.1 & 1.2. Employment Contracts During the year and to the date of this report there are two new employment contracts with the Company. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 19 Remuneration of Directors and Named Executives Table 1.1: Directors’ and named executives remuneration for the year ended 30 June 2021 Short-term employee benefits Post-employment benefits Equity Other Total % Sin Pyng “Tony” Teng 1 Tim Cameron 2 Syed Hizam Alsagoff Pay Chuan “Paul” Lim Eric Kam 3 Total Salary & Fees 117,500 207,004 22,000 21,000 132,000 499,504 Bonuses Non- Monetary Benefits Super- annuation Prescribed Benefits Options Shares Deferred Benefits Performance Related - - - - - - 2,992 - 2,992 - - - - - - - - - - 120,492 207,004 22,000 21,000 132,000 502,496 - - 0% 0% 0% 0% 0% - Table 1.2: Directors’ and named executives remuneration for the year ended 30 June 2020 Short-term employee benefits Post-employment benefits Equity Other Total % Salary & Fees Bonuses Non- Monetary Benefits Super- annuation Prescribed Benefits Options Shares Deferred Benefits Performance Related Sin Pyng “Tony” Teng 1 22,000 Tim Cameron 2 Syed Hizam Alsagoff 114,000 133,336 Pay Chuan “Paul” Lim 8,400 Eric Kam 3 Total 108,000 24,000 - - - - - - - - - - - 1,710 - - - - - - - - - - - - - - - - - - - - - - - 22,000 115,710 133,336 8,400 108,000 24,000 0% 0% 0% 0% 0% 0% Notes: 1. 2. 3. Paid to Rodby Holdings Pty Ltd for corporate advisory services of which Mr Teng is a director Paid to Esplanade Consultancy ATF Voice Works 2 Trust for executive services of which Tim Cameron is related to the discretionary services management trust, and R&E Solutions Pty, an entity associated with Tim Cameron. Paid to Useful Ways Pty Ltd for corporate advisory services of which Eric Kam is a director and shareholder and Ekam Commercial of which Mr Kam is principal. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 20 Other Key Management Personnel Transactions The Company has established the Gold Mountain Limited Employee Share Option Plan (ESOP) and a summary of the terms and conditions of the Plan are set out below: i. ii. iii. iv. v. vi. All employees (full time and part time) will be eligible to participate in the Plan. Options are granted under the Plan at the discretion of the board and if permitted by the board, may be issued to an employee’s nominee. Each option is to subscribe for one ordinary share in the Company and will expire 5 years from its date of issue. An option is exercisable at any time from its date of issue provided all relevant vesting conditions, if applicable, have been met. Options will be issued free. The exercise price of options will be determined by the board. The total number of shares the subject of options issued under the Plan, when aggregated with issues during the previous 5 years pursuant to the Plan and any other employee share plan, must not exceed 5% of the Company’s issued share capital. If, prior to the expiry date of options, a person ceases to be an employee of the Company for any reason other than retirement at age 60 or more (or such earlier age as the board permits), permanent disability, redundancy or death, the options held by that person (or that person’s nominee) automatically lapse on the first to occur of a) the expiry of the period of 30 days from the date of such occurrence, and b) the expiry date. If a person dies, the options held by that person will be exercisable by that person’s legal personal representative. Options cannot be transferred other than to the legal personal representative of a deceased option holder. The Company will not apply for official quotation of any options. vii. Shares issued because of the exercise of options will rank equally with the Company’s previously issued shares. viii. Option holders may only participate in new issues of securities by first exercising their options. ix. x. xi. Options are granted under the plan for no consideration. Each share options converts into one ordinary shares of Gold Mountain Limited. 20,000,000 performance options under the Company’s Employee Share Option Plan granted to certain directors of exercise price $0.15 expiring 31 December 2025 is subject to the vending condition that the total granted options shall be vested over 3 periods of 12 months per period. The unlisted options were issued on 31 December 2020 in which the original exercise price is subject to a reduction following the pro-rata entitlement rights issue by $0.0025, amending the new exercise price to $0.1475. The Board may amend the terms and conditions of the plan subject to the requirements of the Listing Rules. There have been no other transactions involving equity instruments other than those described in the tables above. For details of other transactions with Key Management Personnel, refer to Note 18: Related Party Disclosures. (End of Remuneration Report) GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 21 Directors’ Meetings The number of meetings of Directors (including meetings of committees of Directors) held during the year and the number of meetings attended by each Director was as follows: Director Sin Pyng “Tony” Teng Syed Hizam Alsagoff Pay Chuan “Paul” Lim Tim Cameron Board Meetings Attended Eligible to Attend 1 2 2 2 1 2 2 2 In addition, 14 circular resolutions were signed by the Board during the period. Auditor Independence Section 307C of the Corporations Act 2001 requires our auditors to provide the Directors of the Company with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 27, and forms part of this Directors’ report for the year ended 30 June 2021. Non-Audit Services Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are outlined in Note 22 to the financial statements. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of the services undermine the general principles relating to auditor independence. Signed in accordance with a resolution of the Directors. Tim Cameron Executive Director Dated this 30th day of September 2021 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 22 SCHEDULE OF TENEMENTS EL No. License Holder EL1966 Sak Creek Viva No. 20 Limited Viva No. 20 Limited GMN Interest 70% 70% Location Area (sq km) Expiry Enga Province, PNG Enga Province, PNG 103 103 EL1967 Pocket Creek EL1968 Crown Ridge EL2565 Londol Viva No. 20 Limited 70% Enga Province, PNG 103 Viva Gold (PNG) Limited 100% Enga Province, PNG 252 EL2306 Kompiam Station Khor ENG Hock & Sons (PNG) Limited 70% Enga Province, PNG 164 26-Jun-2021 (Renewal Pending) 27-Nov-2021 (Renewal submitted) 27-Nov-2021 (Renewal submitted) 26-May-2021 (Renewal Pending) 13-Dec-2021 (Renewal submitted) EL2563 Kompiam Abundance Valley (PNG) Limited 100% Enga Province, PNG 226 22-Jan-2022 EL2632 Mt Wipi GMN 6768 (PNG) Limited 100% Enga and East Sepik Provinces, PNG 505 14-Aug-2020 EL2426 Keman GMN 6768 (PNG) Limited EL2430 Meriamanda GMN 6768 (PNG) Limited Surrendered – 17-Sep-2021 Surrendered – 13-Sep-2021 EL2522 Wapenamada GMN 6768 (PNG) Limited Expired – 24-Feb-2021 ELA2705 Kaipares Abundance Valley (PNG) Limited Application Enga Province, PNG 17 - Figure 6 – Suite of tenements located at the Enga Province in Papua New Guinea GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 23 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (for the year ended 30 June 2021) Other income Administration costs Depreciation and amortisation expense Employment costs Exploration expense Impairments expense Investor and public relations expense Legal and professional costs Other expenses Loss before income tax expense Income tax expense Net loss for the period Attributable to the owners of Gold Mountain Limited Other comprehensive income Foreign currency translation Total other comprehensive income for the year, net of tax Total comprehensive loss for the period Attributable to the owners of Gold Mountain Limited Loss per share Basic loss per share (cents) Diluted loss per share (cents) Note 3 5 20 2021 $ 2020 $ 888,163 888,163 (635,370) (170,775) - (181) (655,999) (117,973) (218,720) (484,127) 105,844 105,844 (568,558) (210,785) (41,710) (45,528) - (405,545) (176,777) (226,819) (1,394,982) (1,569,877) - (1,394,982) (1,569,877) - - 0 0 (1,394,982) (1,569,877) (0.19) N/A (0.25) N/A The statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 25 STATEMENT OF FINANCIAL POSITION (as at 30 June 2021) Note 2021 $ 2020 $ ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Right of Use Asset Deferred exploration and evaluation expenditure Intangibles Investments Other assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Other current liabilities TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Other non-current liabilities TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses Total equity attributable to equity holders of the Company Non-controlling interest TOTAL EQUITY 6 7 8 8 9 10 11 12 13 14 14 15 16 780,283 133,834 914,117 162,377 41,936 1,835,586 118,130 1,953,716 285,821 125,807 21,868,365 19,722,600 6,026,310 5,996,150 50,555 35,545 50,555 35,545 28,185,087 26,216,477 29,099,204 28,170,193 1,314,660 44,223 1,358,883 1,855,824 835,329 2,691,153 - - 44,223 44,223 1,358,883 2,735,377 27,740,321 25,434,816 40,955,834 36,487,484 155,928 924,044 (13,371,536) (11,976,814) 27,740,226 25,434,816 95 102 27,740,321 25,434,816 The statement of financial position should be read in conjunction with the accompanying notes. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 26 STATEMENT OF CHANGES IN EQUITY (for the year ended 30 June 2021) Issued Capital Reserves Accumulated Losses Non Controlling Interest Total $ $ $ $ $ Balance at 1 July 2019 30,006,334 697,225 (10,406,897) 63 20,296,725 Comprehensive Income Net loss for the period Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners Issue of share capital Share issue costs - - - - 7,263,100 (781,950) - - - - - - Options expense Total transactions with owners in their capacity as owners - 226,819 6,481,150 226,819 - (1,569,877) - (1,569,877) - - - - - - - - - - - - - (1,569,877) - (1,569,877) 7,263,100 (781,950) 226,819 6,707,969 Balance at 30 June 2020 36,487,484 924,044 (11,976,774) 63 25,434,817 Balance at 1 July 2020 36,487,484 924,044 (11,976,774) 63 25,434,817 Comprehensive Income Net loss for the period Other comprehensive income Total comprehensive income for the year Transactions with owners in their capacity as owners Issue of share capital Share issue costs Options expense Transactions with owners in their capacity as owners - - - - 5,202,550 (734,200) - - - - - - - (768,120) - (1,394,982) - - - - - 4,468,350 (768,120) 220 Balance at 30 June 2021 40,955,834 155,928 (13,371,536) - - - - - - - - (1,394,982) - (1,394,982) 5,202,550 (734,200) (768,120) 32 95 3,700,486 27,740,321 The statement of changes in equity should be read in conjunction with the accompanying notes. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 27 STATEMENT OF CASHFLOWS (for the year ended 30 June 2021 ) Cash flows from operating activities Interest received Payments to suppliers and employees Other receipts Note 2021 $ 2020 $ 945 1,471 (1,511,102) (1,511,401) 118,098 67,007 Net cash (used in) provided by operating activities 27 (1,391,059) (1,442,923) Cash flows from investing activities Payments for plant and equipment Payments for other investments Receipt of tenement security deposits Payments for exploration and evaluation Net cash (used in) provided by investing activities Cash flows from financing activities Proceeds from issue of shares Payments for share issue costs Proceeds from borrowings Net cash provided by (used in) financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of financial year 14 9 - (214,305) (300,000) - - (3,581,668) (4,122,965) (3,795,973) (4,407,061) 4,941,203 7,913,450 (734,200) (781,950) (75,274) 500,000 4,131,729 7,631,500 (1,055,303) 1,781,516 1,835,585 54,070 Cash and cash equivalents at end of financial year 6 780,283 1,835,585 The statement of cashflows should be read in conjunction with the accompanying notes. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 28 NOTES TO THE FINANCIAL STATEMENTS (for the year ended 30 June 2021 ) This financial report includes the financial statements and notes of Gold Mountain Limited. Number Notes to the Financial Statements 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Summary of significant accounting policies Operating segments Revenue & other income Loss for the year Income tax expense Current assets - Cash and cash equivalents Current assets - Trade and other receivables Non-current assets – Plant and equipment Non-current assets – Deferred exploration and evaluation expenditure Non-current assets – Intangible assets Non-current assets – Investments Non-current assets – Other assets Current liabilities – Trade and other payables Current and non-current liabilities – Other Contributed equity Reserves Share based payments Related party disclosures Key management personnel compensation Loss per share Financial Risk Management Auditor’s remuneration Parent Entity Information Dividends Events subsequent to reporting date Controlled entities Cash flow information GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 29 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES a. Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events, and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets, and financial liabilities b. 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 Company applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, financial statements as at the beginning of the earliest comparative period will be disclosed. c. Principles of consolidation Business combinations For every business combination, the Company identifies the acquirer, which is the combining entity that obtains control over the other combining entities. An investor controls an investee when it is exposed to, or has rights to, variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. In assessing control, the Company takes into consideration potential voting rights that are currently exercisable. The acquisition date is the date on which control is transferred from the acquirer. Interests in equity-accounted investees The Company’s interests in equity-accounted investees comprise the interest in a joint venture. A joint venture is a joint arrangement, whereby the Group and other parties have joint control and have rights to the net assets of the arrangement. The interest in the joint venture is accounted for using the equity method. It is recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income of equity-accounted investees, until the date on which significant influence or joint control ceases. Joint arrangements Under AASB 11, the Company has classified its interests in joint arrangements as either joint operations (if the Group has rights to the assets, and obligations for the liabilities, relating to an arrangement) or joint ventures (if the Group has rights only to the net assets of an arrangement). When making this assessment, the Company considered the structure of the arrangements, the legal form of any separate vehicles, the contractual terms of the arrangements and other facts and circumstances. The Company did not have any joint arrangements at the start of the financial year. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 30 On 16 August 2016, the Company completed the acquisition of an additional 50% of the issued capital of Viva No. 20 Limited (“Viva”) through the issue of 60,000,000 shares at $0.08 each to the Vendors. Simultaneously, the Vendors issued 125 ordinary shares to GMN comprising 50% of the entire issued capital of Viva held by the Vendors. On completion of this acquisition, the Company now holds a controlling interest of 70% in Viva. As a result of the acquisition and in accordance with AASB 11, this new arrangement has been recognised on a consolidated basis. On 18 July 2017, the Company announced that it had entered a binding agreement for the acquisition of the EL2306 Interest from the EL2306 Vendor for purchase price of $5,200,000 comprising 22 million Shares at a notional price of $0.10 per Share and $3,000,000 in cash. The cash consideration of $3,000,000 is payable in instalments. An exclusivity fee of $150,000 was also paid and capitalised as Deferred Expenditure in FY 2016. On 19 February 2018 the Company issued 22,000,000 shares at the issue price of $0.10 to raise $2,200,000 as part consideration for the acquisition of a 70% interest in EL2306 as approved by Shareholders at the Annual General Meeting held on 28 November 2017. Instalment costs of $2,250,000 were paid by the Company in FY 2017, FY 2018, FY 2019, and FY 2020. The remaining instalment costs of $750,000 has been extended and is payable by 31 December 2020. As a result of the acquisition and in accordance with AASB 11, this new arrangement has been recognised as a joint arrangement. See Note 14 for further information. d. Impairment of Assets At the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. e. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits available on demand with banks and other short-term highly liquid investments with original maturities of three months or less. f. Provisions Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. g. 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 Company 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. h. Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses. Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. 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. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 31 Current tax 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) a legally enforceable right of set-off exists; and (b) 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. i. Exploration and Development Expenditure Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied: (i) (ii) The rights to tenure of the area of interest are current; and at least one of the following conditions is also met: (a) (b) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching, and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years. Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development. Costs of site restoration are provided over the life of the project from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current legal requirements, and technology on an undiscounted basis. Any changes in the estimates for the costs are accounted 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. Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site. j. Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable. When the inflow of consideration is deferred, it is treated as the provision of financing and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. All revenue is stated net of the amount of goods and services tax (GST). k. Earnings (Loss) per share Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit attributable to members, adjusted for: (i) (ii) costs of servicing equity (other than dividends); the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 32 (iii) other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element. l. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. m. Plant and Equipment Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present. 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. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset’s useful life to the Company commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Plant and equipment Depreciation Rate 20%-32% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. Leases (the Group as lessee) At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the Group where the Group is a lessee. However, all contracts that are classified as short- term leases (lease with remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 33 Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses the incremental borrowing rate. Lease payments included in the measurement of the lease liability are as follows: – – – – – – fixed lease payments less any lease incentives; variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; the amount expected to be payable by the lessee under residual value guarantees; the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; lease payments under extension options if lessee is reasonably certain to exercise the options; and payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Subsequently, the lease liability is measured by a reduction to the carrying amount of any payments made and an increase to reflect any interest on the lease liability. The right-of-use assets is an initial measurement of the corresponding lease liability less any incentives and initial direct costs. Subsequently, the measurement is the cost less accumulated depreciation (and impairment if applicable). Right-of-use assets are depreciated over the lease term or useful life of the underlying asset whichever is the shortest. Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset. n. Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted). Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical expedient was applied as specified in AASB 15.63. Classification and subsequent measurement Financial liabilities Financial liabilities are subsequently measured at: – – amortised cost; or fair value through profit or loss. A financial liability is measured at fair value through profit or loss if the financial liability is: – – – a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies; held for trading; or initially designated as at fair value through profit or loss. All other financial liabilities are subsequently measured at amortised cost using the effective interest method. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 34 The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability, that is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition. A financial liability is held for trading if it is: – – – incurred for the purpose of repurchasing or repaying in the near term; part of a portfolio where there is an actual pattern of short-term profit taking; or a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an effective hedging relationship). Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship. The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and is not subsequently reclassified to profit or loss. Instead, it is transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit or loss rather than other comprehensive income. A financial liability cannot be reclassified. Financial guarantee contracts A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are initially measured at fair value (and if not designated as at fair value through profit or loss and do not arise from a transfer of a financial asset) and subsequently measured at the higher of: – – the amount of loss allowance determined in accordance to AASB 9.3.25.3; and the amount initially recognised less accumulative amount of income recognised in accordance with the revenue recognition policies. Financial asset Financial assets are subsequently measured at: – – – amortised cost; fair value through other comprehensive income; or fair value through profit or loss on the basis of the two primary criteria: – – the contractual cash flow characteristics of the financial asset; and the business model for managing the financial assets. A financial asset is subsequently measured at amortised cost if it meets the following conditions: – – the financial asset is managed solely to collect contractual cash flows; and the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates. A financial asset is subsequently measured at fair value through other comprehensive income if it meets the following conditions: – – the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates; and the business model for managing the financial asset comprises both contractual cash flows collection and the selling of the financial asset. By default, all other financial assets that do not meet the conditions of amortised cost and the fair value through other comprehensive income's measurement condition are subsequently measured at fair value through profit or loss. The Group initially designates a financial instrument as measured at fair value through profit or loss if: – – it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as “accounting mismatch”) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases; it is in accordance to the documented risk management or investment strategy and information about the groupings was documented appropriately, so as the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated consistently on a fair value basis; and GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 35 – it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract. The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised. Equity instruments At initial recognition, as long as the equity instrument is not held for trading or is not a contingent consideration recognised by an acquirer in a business combination to which AASB 3 applies, the Group made an irrevocable election to measure any subsequent changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying equity instruments investments will still be recognised in profit or loss. Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with the Group's accounting policy. Derecognition Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position. Derecognition of financial liabilities A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled, or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability, is treated as an extinguishment of the existing liability and recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. Derecognition of financial assets A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred. All the following criteria need to be satisfied for the derecognition of a financial asset: – – – the right to receive cash flows from the asset has expired or been transferred; all risk and rewards of ownership of the asset have been substantially transferred; and the Group no longer controls the asset (ie it has no practical ability to make unilateral decisions to sell the asset to a third party). On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. On derecognition of a debt instrument classified as fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss. On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings. Impairment The Group recognises a loss allowance for expected credit losses on: – – – – – financial assets that are measured at amortised cost or fair value through other comprehensive income; lease receivables; contract assets (eg amount due from customers under contracts); loan commitments that are not measured at fair value through profit or loss; and financial guarantee contracts that are not measured at fair value through profit or loss. Loss allowance is not recognised for: – – financial assets measured at fair value through profit or loss; or equity instruments measured at fair value through other comprehensive income. Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument. The Group use the following approaches to impairment, as applicable under AASB 9: – – – the general approach; the simplified approach; the purchased or originated credit impaired approach; and GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 36 – low credit risk operational simplification. General approach Under the general approach, at each reporting period, the Group assessed whether the financial instruments are credit impaired, and if: – – the credit risk of the financial instrument increased significantly since initial recognition, the Group measured the loss allowance of the financial instruments at an amount equal to the lifetime expected credit losses; and there was no significant increase in credit risk since initial recognition, the Group measured the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. Simplified approach The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of lifetime expected credit loss at all times. This approach is applicable to: – – trade receivables or contract assets that results from transactions that are within the scope of AASB 15: Revenue from Contracts with Customers, that contain a significant financing component; and lease receivables. In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to an expected credit loss (ie diversity of its customer base, appropriate groupings of its historical loss experience, etc). Purchased or originated credit impaired approach For a financial asset that is considered to be credit impaired (not on acquisition or originations), the Group measured any change in its lifetime expected credit loss as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. Any adjustment is recognised in profit or loss as an impairment gain or loss. Evidence of credit impairment includes: – – – – – significant financial difficulty of the issuer or borrower; a breach of contract (eg default or past due event); where a lender has granted to the borrower a concession, due to the borrower's financial difficulty, that the lender would not otherwise consider; it is probable the borrower will enter bankruptcy or other financial reorganisation; and the disappearance of an active market for the financial asset because of financial difficulties. Low credit risk operational simplification approach If a financial asset is determined to have low credit risk at the initial reporting date, the Group assumed that the credit risk has not increased significantly since initial recognition and, accordingly, can continue to recognise a loss allowance of 12-month expected credit loss. In order to make such determination that the financial asset has low credit risk, the Group applied its internal credit risk ratings or other methodologies using a globally comparable definition of low credit risk. A financial asset is considered to have low credit risk if: – – – there is a low risk of default by the borrower; the borrower has strong capacity to meet its contractual cash flow obligations in the near term; and adverse changes in economic and business conditions in the longer term, may, but not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. A financial asset is not considered to carry low credit risk merely due to existence of collateral, or because a borrower has a lower risk of default than the risk inherent in the financial assets, or lower than the credit risk of the jurisdiction in which it operates. Recognition of expected credit losses in financial statements At each reporting date, the Group recognised the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income. The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset. Assets measured at fair value through other comprehensive income are recognised at fair value with changes in fair value recognised in other comprehensive income. The amount in relation to change in credit risk is transferred from other comprehensive income to profit or loss at every reporting period. For financial assets that are unrecognised (eg loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created in the statement of financial position to recognise the loss allowance. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 37 Impairment of Assets At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources of information and internal sources of information, including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. o. Employee Benefits Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one (1) year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one (1) year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wages increases and the probability that the employee may satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. p. Rounding of Amounts The parent entity has applied the relief available to it under ASIC Class Order 98/100 and accordingly, amounts in the financial statements and directors’ report have been rounded off to the nearest one dollar ($1). q. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments 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 Company. Key estimates (i) Impairment The Company assesses impairment at the end of each reporting period by evaluating conditions and events specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. Key judgments (i) Exploration and evaluation expenditure The Company capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage that permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. r. Going concern The financial statements have been prepared on the going concern basis, the validity of which depends upon the positive cash position. The Company’s existing projections show that further funds will be required to be generated, either by capital raisings, sales of assets or other GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 38 initiatives, to enable the Company to fund its currently planned activities for at least the next twelve months from the date of signing these financial statements. Should new opportunities present that require additional funds the Directors will take action to reprioritise activities, dispose of assets and or raise further funds. Notwithstanding this issue, accordingly the Directors have prepared the financial statements of the Company on a going concern basis. In arriving at this position, the Directors have considered the following pertinent matter: - Australian Accounting Standard, AASB 101 “Accounting Policies”, states that an entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. In the Directors’ opinion, at the date of signing the financial report, there are reasonable grounds to believe that the matters set out above will be achieved and therefore the financial statements have been prepared on a going concern basis. s. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds. t. Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of Gold Mountain Limited. u. Associates Associates are entities over which the Company has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the Company’s share of net assets of the associates. Dividends received or receivable from associates reduce the carrying amount of the investment. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. v. Joint Ventures A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. The Company’s interest in joint venture entities are accounted for using the proportionate consolidation method of accounting. The Company recognises its interest in the assets that it controls and the liabilities that it incurs and the expenses that it incurs and its share of the income that it earns from the sale of goods or services by the joint venture, classified according to the nature of the assets, liabilities, income or expense. Profits or losses on transactions establishing the joint venture entities and transactions with the joint venture are eliminated to the extent of the Company’s ownership interest until such time as they are realised by the joint venture entity on consumption or sale, unless they relate to an unrealised loss that provides evidence of the impairment of an asset transferred. The Company discontinues the use of proportionate consolidation from the date on which it ceases to have joint control over a jointly controlled entity. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 39 w. Fair Value of Assets and Liabilities Equity Instruments The fair value of available-for-sale financial assets is determined by reference to their quoted closing bid price at the reporting date. Trade and Other Receivables The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. Due to the short-term nature of other receivables, their carrying value is assumed to approximate their fair value. Non-Derivative Financial Liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. x. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June 2021. The Company’s assessment of the impact of these new or amended Accounting Standards and Interpretations are that they will have no material effect. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 40 NOTE 2: OPERATING SEGMENTS Segment Information Identification of reportable segments During the year, the Company operated principally in one business segment being mineral exploration and in two geographical segments being Australia and Papua New Guinea. The Company’s revenues and assets and liabilities according to geographical segments are shown below. June 2021 Australia $ Total $ PNG $ Total $ June 2020 Australia $ PNG $ 888,163 888,163 888,163 888,163 - - 105,844 105,844 105,844 105,844 - - (1,394,982) (738,983) (655,999) (1,569,877) (1,513,982) (55,895) - - - - - - (1,394,982) (738,983) (655,999) (1,569,877) (1,513,982) (55,895) 29,099,204 7,230,840 21,868,365 28,170,193 11,237,409 16,852,987 1,358,883 1,358,883 - 2,735,377 1,697,934 1,037,443 REVENUE Revenue Total segment revenue RESULTS Net loss before income tax Income tax Net loss ASSETS AND LIABILITIES Assets Liabilities NOTE 3: REVENUE AND OTHER INCOME a. Revenue Other income Other Interest received 1 Rental income Foreign exchange gains Government grants and cash boost Total other income Total revenue 1 Interest received from: Bank 2021 $ 2020 $ 788,120 946 55,685 22,912 20,500 888,163 888,163 - 1,471 51,007 37,366 16,000 48,529 48,529 946 1,471 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 41 NOTE 4: LOSS FOR THE YEAR Loss before income tax includes the following specific expenses: — — — a. Consultants fees Legal costs Rental expense on operating leases Significant expenses The following significant expense items are relevant in explaining the financial performance: — — Exploration expense Impairments Write Off expense NOTE 5: INCOME TAX EXPENSE The prima facie tax on the loss before income tax is reconciled to income tax as follows: Loss before income tax expense Prima facie tax benefit on the loss before income tax at 26% (2020: 26.5%) Add: Tax effect of: Other non-allowable items Less: Tax effect of: Other deductible expenses Future tax benefits not brought to account Income tax attributable to the Company 2021 $ 2020 $ 249,775 147,118 65,578 171,675 69,520 17,846 - 655,999 - 6,045 2021 $ 2020 $ (1,394,982) (1,569,877) (362,695) (431,716) (39,681) 108,652 (402,376) 108,652 (555,372) (57,966) 957,748 381,030 - - The Company has tax losses arising in Australia of $12,716,160 (2020: $9,032,513) that are available indefinitely to offset against future taxable profits. Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in Note 1(h) occur. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 42 NOTE 6: CASH AND CASH EQUIVALENTS Cash at bank Short-term bank deposits 2021 $ 2020 $ 91,807 611,474 688,476 1,224,112 780,283 1,835,586 Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash and cash equivalents 780,283 1,835,586 Cash at bank 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 Company, and earn interest at the respective short-term deposit rates. NOTE 7: TRADE AND OTHER RECEIVABLES Current PNG Project Advance Other receivables Total current trade and other receivables NOTE 8: PLANT AND EQUIPMENT Plant and equipment – at cost Accumulated depreciation Reconciliation of the carrying amount of plant and equipment at the beginning and end of the current and previous financial year: Carrying amount at beginning of the year Additions Depreciation expense Carrying amount at end of the year Right of Use Asset Depreciation expense Carrying amount at end of the year 2021 $ 75,000 58,834 133,834 2020 $ - 82,585 82,585 2021 $ 2020 $ 609,604 604,978 (447,227) (319,157) 162,377 285,821 285,821 418,780 47,329 (6,045) (170,773) (126,913) 162,377 285,821 209,679 209,679 (167,743) (83,871) 41,936 125,807 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 43 NOTE 9: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Assets in Development Balance at the beginning of the year Expenditure incurred Expenditure incurred on acquisition of 70% interest in EL2306 Impairment loss on existing tenements Net carrying value 2021 $ 2020 $ 19,722,600 15,868,988 2,801,764 3,853,612 - (655,999) - - 21,868,365 19,722,600 Recoverability of the carrying amount of deferred exploration and evaluation expenditure is dependent on the successful development and commercial exploitation or sale of the areas of interest. Management reassess the carrying value of the Company’s tenements at each half year, or at a period other than that should there be an indication of impairment. NOTE 10: INTANGIBLE ASSETS Intangible assets Goodwill on acquisition Total intangible assets 2021 $ 2020 $ 6,026,310 6,026,310 5,996,150 5,996,150 Movements in Carrying Amounts Movement in the carrying amounts for intangible assets between the beginning and the end of the current financial year: Carrying amount at 30 June 2020 Additions Disposals Movement in foreign exchange Carrying amount at 30 June 2021 Goodwill on acquisition 2021 $ 2020 $ 6,026,310 5,995,970 - - - - - 180 6,026,310 5,996,150 On 16 August 2016, the Company completed the acquisition of an additional 50% of the issued capital of Viva through the issue of 60,000,000 shares at $0.08 each to the Vendors. Simultaneously, the Vendors issued 125 ordinary shares to GMN comprising 50% of the entire issued capital of Viva held by the Vendors. On completion of this acquisition, the Company now holds a controlling interest of 70% in Viva. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 44 NOTE 11: INVESTMENTS Non-Current Gold nuggets NOTE 12: OTHER ASSETS Non-Current Security deposits NOTE 13: TRADE AND OTHER PAYABLES Current Unsecured liabilities: Trade payables and accrued expenses Amounts payable to Director and related entities Shareholders loan and accrued interest Unissued share liability Rental deposit received NOTE 14: OTHER CURRENT AND NON CURRENT LIABILITIES Current Lease Liability Borrowings Instalment costs - EL2306 Total other current liabilities Non-current Lease Liability Instalment costs - EL2306 Total other non-current liabilities 2021 $ 50,555 50,555 2020 $ 50,555 50,555 2021 $ 2020 $ 35,545 35,545 35,545 35,545 2021 $ 2020 $ 476,786 419,494 43,000 4,299 584,274 754,081 183,000 650,350 27,600 27,600 1,314,660 1,855,824 2021 $ 2020 $ 44,223 85,329 - - - 750,000 44,223 835,329 - - - 44,223 - 44,223 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 45 Instalment costs - EL2306 On 18 July 2017, the Company announced that it had entered a binding agreement for the acquisition of the EL2306 Interest from the EL2306 Vendor for purchase price of $5,200,000 comprising 22 million Shares at a notional price of $0.10 per Share and $3,000,000 in cash. The cash consideration of $3,000,000 is payable in instalments. An exclusivity fee of $150,000 was also paid and capitalised as Deferred Expenditure in FY 2016. On 19 February 2018, the Company issued 22,000,000 shares at the issue price of $0.10 to raise $2,200,000 as part consideration for the acquisition of a 70% interest in EL2306 as approved by Shareholders at the Annual General Meeting held on 28 November 2017. Instalment costs of $2,250,000 were paid by the Company in FY 2017, FY 2018, FY 2019 and FY 2020. The remaining instalment costs of $750,000 has been extended and is payable by 31 December 2020. NOTE 15: CONTRIBUTED EQUITY (a) Ordinary shares Ordinary Shares, issued Share issue costs Total issued capital 2021 Number of shares 2021 $ 2020 Number of shares 2020 $ 767,724,924 44,264,060 667,838,577 39,061,510 (3,308,226) 40,955,834 (2,574,026) 36,487,484 Ordinary shares carry one vote per share and carry the rights to dividends. 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. (b) Movements in ordinary shares on issue Date Particulars At 30 June 2019 30-08-19 04-09-19 24-10-19 02-12-19 16-03-20 05-06-20 30-06-20 Placement to professional and sophisticated investors Placement to professional and sophisticated investors Placement to professional and sophisticated investors Placement to professional and sophisticated investors Placement to professional and sophisticated investors Placement to professional and sophisticated investors Share Issue Costs Number of shares Issue Price $ 549,716,526 21,733,333 30,000,000 8,400,000 24,833,333 15,823,077 17,332,308 30,006,334 1,314,000 1,800,000 504,000 1,490,000 1,028,500 1,126,600 (781,950) At 30 June 2020 667,838,577 36,487,484 03-07-20 Placement to professional and sophisticated investors 07-10-120 Approved shares issue to promoters 16-11-20 30-12-20 05-05-21 30-06-20 At 30 June 2021 Placement to professional and sophisticated investors Placement to professional and sophisticated investors Placement to professional and sophisticated investors Share Issue Costs 11,823,847 10,000,000 38,909,090 15,190,910 23,962,500 767,724,924 $0.065 $0.050 $0.055 $0.055 $0.040 768,500 500,000 2,140,000 835,500 958,500 (734,200) 40,955,834 Information on options is included in Note 17: Share Based Payments. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 46 (d) Capital Management The Directors’ objectives when managing capital are to safeguard the Company’s ability to continue as a going concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders. The Group’s overall strategy remains unchanged from the 2021 financial year. The focus of the Company’s capital risk management is the current working capital position against the requirements of the Company to meet exploration programs and corporate overheads. The Company’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 Company’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets. There are no externally imposed capital requirements. Management effectively manages the Company’s capital by assessing the Company’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, budgeting and share issues. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year. NOTE 16: RESERVES Reserves Foreign currency translation reserve Share based payments reserve Movements in the Foreign Currency Translation Reserve At 1 July Foreign Currency Translation At 30 June Movements in options over ordinary shares on issue At 1 July Options expense amortised At 30 June NOTE 17: SHARE BASED PAYMENTS (a) Share-based payments Expense arising from the grant of options Total Share Based Payments 2021 $ - 155,928 155,928 (4) 4 - 924,048 (768,120) 155,928 2021 $ (768,120) (768,120) 2020 $ (4) 924,048 924,044 (1) (3) (4) 697,229 226,819 924,048 2020 $ 226,819 226,819 (b) Movements in unlisted options The following table details the number, weighted average exercise prices (WAEP) and movements in share options issued as capital raising purposes, employment incentives or as payments to third parties for services during the year. Outstanding at the beginning of the year Options granted during the year Options lapsed during the year Options exercised during the year Outstanding at the end of the year 2021 WAEP $0.133 2021 Number 175,674,366 93,411,924 (62,297,567) 2020 2020 Number WAEP 59,173,249 $0.173 158,735,605 $0.129 (21,938,461) $0.235 - - - - 206,788,723 $0.149 175,674,366 $0.133 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 47 NOTE 17: SHARE BASED PAYMENTS (c) Options exercisable at reporting date 2021 Exercise 2020 Exercise Number Price Number Price Unlisted options expiring 03 December 2021 Unlisted options expiring 16 March 2022 Unlisted options expiring 05 June 2022 Unlisted options expiring 03 July 2022 Unlisted options expiring 08 October 2022 Unlisted options expiring 31 December 2022 Unlisted performance ESOP options expiring 31 December 2025 Listed options (GMNOR) expiring 16 February 2023 Exercisable at reporting date 56,616,667 12,911,539 11,131,539 23,411,924 39,000,000 11,000,000 20,000,000 111,599,898 285,671,567 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.04 56,616,667 12,911,539 11,131,539 23,411,924 $0.15 $0.15 $0.15 $0.15 104,071,669 (d) Options issued during the year The maximum terms of options granted during the year are as follows: On 3 July 2020, the Company granted 29,323,848 free unlisted options to participants in the share placement of 11,823,847 shares on the same date in two separate tranches of options. One option tranche is at an exercise price of $0.10 expiring on 3 July 2021 and the other option tranche is at an exercise price of $0.15 expiring 3 July 2022 with no vesting conditions. Of the options at exercise price $0.15 expiry 3 July 2022, 17,500,000 options were granted to a Promoter for past services rendered. On 7`October 2020, the Company lodged the Proposed issue of securities that includes the issue of 39,000,000 unlisted options of exercise price $0.15 expiring 8/10/2022 to Promoters for past services rendered. The issue to Promoters were approved by shareholders at the extraordinary general meeting held on 2 October 2020. On 29 December 2020, the Company lodged the Proposed issue of securities for the issue of 11,000,000 options at exercise price $0.15 expiring 31 December 2022 to Promoters for past services rendered and the grant of 20,000,000 performance options under ESOP at exercise price $0.15 expiring 31/12/2025 to certain directors of the Company. The options issued on 30 December 2020 were consistent with the approved resolutions by shareholders at the extraordinary general meeting held on 2 October 2020. The options must be exercised on or before the expiry date in cash. (e) Fair value of unlisted options The fair value of the options granted is estimated as at the date of grant using a Black-Scholes model taking into account the terms and conditions upon which the options were granted. The following tables list the inputs to the model used for the year ended 30 June 2021. Financial year of grant 1 2018 2 2018 3 2020 4 2020 5 2020 6 2020 ASX Code Grant date Expiry date Option term GMNAD GMNAE GMNAC GMNAC GMNAC GMNAG 26 Sep 17 26 Sep 17 29 Aug 19 03 Dec 19 15 Mar 20 05 Jun 20 26 Jul 21 26 Jul 21 28 Aug 21 03 Dec 21 16 Mar 22 05 Jun 22 3.8 years 3.8 years 24 months 24 months 24 months 24 months Number of options issued 2,000,000 7,800,000 9,866,669 56,616,667 12,911,539 11,131,539 Share price at grant date Exercise price Expected volatility Expected dividends $0.090 $0.150 68% Nil $0.090 $0.150 68% Nil $0.051 $0.150 68% Nil $0.075 $0.150 68% Nil $0.055 $0.150 68% Nil Risk-free interest rate 0.007% 0.007% 0.007% 0.007% 0.007% Fair value $ - $ - $ - $105 $520 $0.05 $0.150 68% Nil 0.007% $1,495 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 48 Financial year of grant ASX Code Grant date Expiry date Option term 7 2021 GMNAC 03 Jul 20 03 Jul 22 8 2021 AMNAR 07 Oct 20 08 Oct 22 9 2021 10 2021 GMNAS GMNAT 30 Dec 20 30 Dec 2020 31 Dec 22 31 Dec 2025 24 months 24 months 24 months 5 years Number of options issued 23,411,924 39,000,000 11,000,000 20,000,000 Share price at grant date Exercise price Expected volatility Expected dividends Risk-free interest rate Fair value $0.065 $0.15 68% Nil 0.007% $4,270 $0.055 $0.150 68% Nil 0.007% $15,949 $0.055 $0.150 68% Nil $0.055 $0.15 68% Nil 0.024% 0.642% $7,397 $126,192 NOTE 18: RELATED PARTY DISCLOSURES Related Parties a. The Company’s main related parties are as follows: i. Key management personnel: Any person(s) having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any director (whether executive or otherwise), are considered key management personnel. The directors in office during the year were as follows: Sin Pyng “Tony” Teng (Ceased 17/5/2021) Syed Hizam Alsagoff Pay Chuan “Paul” Lim Tim Cameron (Appointed 1/12/2020) For details of disclosures relating to key management personnel, refer to Key Management Personnel disclosures Directors and Remuneration Report. b. Transactions with related parties: Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The following transactions occurred with related parties: i. Other related parties: Purchase of goods and services: Executive service fees paid to Esplanade Consultancy AFT Voice Works 2 Trust of which Tim Cameron is related to the discretionary services management trust, and other services including director’s fees paid to R&E Solutions Pty Ltd, an entity associated with Mr Tim Cameron. 2021 $ 2020 $ 215,404 - Corporate advisory fees paid to Rodby Holdings Pty Ltd as Directors Fees and Consulting Fees, an entity associated with Mr Sin Pyng “Tony” Teng. 80,000 96,000 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 49 c. Amounts payable to related parties: Trade and other payables: Amounts payable to Directors and related entities, as follows: Directors fees Reimbursement of expenses Corporate advisory services Total trade and other payable related party amounts NOTE 19: KEY MANAGEMENT PERSONNEL COMPENSATION Short-term employee benefits Post-employment benefits Share based payments Non-Executive Directors Fees Balance at the end of year NOTE 20: LOSS PER SHARE Basic Loss per share Basic Loss (cents per share) Net loss used to calculate basic loss per share a. I ii. iii. 2021 $ 2020 $ 43,000 8,800 43,000 8,800 - - - - 43,000 8,800 2021 $ - - - 43,000 43,000 2020 $ - - - - - 2021 $ 2020 $ (0.19) (0.25) (1,394,982) (1,569,877) No. No. Weighted average number of ordinary shares outstanding during the year used in calculating basic loss per share Not applicable 618,561,268 b. Diluted loss per share The Company’s potential ordinary shares, being its options granted, are not considered dilutive as the conversion of these options would result in a decrease in the net loss per share. Not applicable Not applicable NOTE 21: FINANCIAL RISK MANAGEMENT The Company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, loans to and from related parties, bills and leases. The following table details the expected maturities for the Company’s non-derivative financial assets. These have been drawn up based on undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Company anticipates that the cash flow will occur in a different period. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 50 Financial Risk Management Policies The Board has overall responsibility for the establishment and oversight of the risk management framework. The Board reviews and agrees policies for managing each of these risks as summarised below. The Audit and Risk Committee (ARC) has been delegated responsibility by the Board of Directors for, among other issues, monitoring and managing financial risk exposures of the Company. The ARC monitors the Company’s financial risk management policies and exposures and approves financial transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating to commodity price risk, counterparty credit risk, currency risk, financing risk and interest rate risk. The ARC’s overall risk management strategy seeks to assist the Company in meeting its financial targets, while minimising potential adverse effects on financial performance. Its functions include the review of the use of hedging derivative instruments, credit risk policies and future cash flow requirements. Specific Financial Risk Exposures and Management The main risks the Company is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk. This note presents the information about the Company’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. 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 the Company. Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and counterparties), ensuring to the extent possible, that customers and counterparties to transactions are of sound credit worthiness. Such monitoring is used in assessing receivables for impairment. Depending on the division within the Company, credit terms are generally 14 to 30 days from the invoice date. Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit rating, or in entities that the FRMC has otherwise cleared as being financially sound. Where the Company is unable to ascertain a satisfactory credit risk profile in relation to a customer or counterparty, the risk may be further managed through title retention clauses over goods or obtaining security by way of personal or commercial guarantees over assets of sufficient value which can be claimed against in the event of any default. Credit risk exposures The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period excluding the value of any collateral or other security held, is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position. The Company has no significant concentrations of credit risk with any single counterparty or company of counterparties. Details with respect to credit risk of trade and other receivables are provided in Note 7. Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality. b. Liquidity risk Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Company manages this risk through the following mechanisms: preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities; using derivatives that are only traded in highly liquid markets; - - - - - - monitoring undrawn credit facilities; obtaining funding from a variety of sources; maintaining a reputable credit profile; managing credit risk related to financial assets; only investing surplus cash with major financial institutions; and comparing the maturity profile of financial liabilities with the realisation profile of financial assets. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management’s expectations that banking facilities will be rolled forward. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 51 c. Market risk Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or value of the holdings of financial instruments. The Company is exposed to movements in market interest rates on short term deposit. The policy is to monitor the interest rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash assets and the interest rate return. The Company does not have short or long term debt, and therefore this risk is minimal. The Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have acceptable credit ratings. d. 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 Company is also exposed to earnings volatility on floating rate instruments. The Company is exposed to interest rate risk as the Company deposits the bulk of its cash reserves in Term Deposits. The risk is managed by the Company by maintaining an appropriate mix between short term and medium-term deposits. The Company’s exposures to interest rate on financial assets and financial liabilities are detailed in the liquidity risk management section of this note. Interest rate sensitivity At 30 June 2021, the effect on loss and equity as a result of changes in the interest rate, with all other variable remaining constant would be as follows: Increase in interest rate by 1% Decrease in interest rate by 1% Interest rate risk is not material to the Company. 2021 $ 7,637 2020 $ 18,356 (7,637) (18,356) 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: Note Floating Interest Rate Non-interest bearing 2021 Fixed Interest Rate Total 2021 Floating Interest Rate Non-interest bearing 2020 Fixed Interest Rate Total 2019 Financial Assets Cash and cash equivalents Trade and other receivables Other financial assets 6 7 12 780,283 - - - 133,834 35,545 Total financial assets 780,283 169,379 Financial liabilities at amortised cost: Financial Liabilities - Trade and other payables - Other financial liabilities Total financial liabilities 13 14 - - - 1,314,660 44,223 1,358,883 Net Financial Assets 780,283 (1,189,504) - - - - - - - - 780,283 1,835,586 - 133,834 35,545 - - 118,130 35,545 949,662 1,835,586 153,675 - - - - 1,835,586 118,130 35,545 1,989,594 1,314,660 44,223 1,358,883 - - - 1,105,824 750,000 1,855,824 879,552 - 879,552 1,985,376 750,000 2,735,376 (409,221) 1,835,586 (1,831,701) (750,000) (745,782) GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 52 NOTE 22: AUDITOR'S REMUNERATION Remuneration of the auditor of the Company for: Auditing or reviewing the financial statements NOTE 23: PARENT ENTITY INFORMATION 2021 $ 33,495 33,495 2020 $ 32,207 32,207 The following information relates to the parent entity, Gold Mountain Limited. The information presented has been prepared using accounting policies that are consistent with those presented in Note 1. ASSETS Current assets Non –current assets TOTAL ASSETS LIABILITIES Current liabilities Non current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY FINANCIAL PERFORMANCE Profit (loss) for the year Other comprehensive income/(loss) for the year Total comprehensive profit/(loss) Remuneration Commitments 2021 $ 2020 $ 914,117 1,953,716 28,185,087 26,216,477 29,099,204 28,170,193 1,358,883 2,691,153 - 44,223 1,358,883 2,753,377 27,740,321 25,434,816 40,955,834 36,487,484 155,928 924,044 (13,371,441) (11,976,712) 27,740,321 25,434,816 (1,394,982) (1,569,877) - - (1,394,982) (1,569,877) There are no remuneration commitments apart from ongoing director and management fees incurred on a monthly basis. Guarantees Gold Mountain Limited did not commit to nor make guarantees of any form as at 30 June 2021. Contingent liabilities There are no contingent liabilities as at 30 June 2021. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 53 Exploration licence expenditure requirements The Company holds seven (7) exploration licences covering an area of about 1,456 sq km in the Enga province, Papua New Guinea (collectively termed the Wabag Project). The expenditure commitment for the ensuing 12 months period over 2021-2022 on the development and maintenance of these licences are in the order of PGK1.75 million (AUD 660,000). NOTE 24: DIVIDENDS The Directors of the Company have not declared any dividends for the year ended 30 June 2021. NOTE 25: EVENTS SUBSEQUENT TO REPORTING DATE On 5 July 2021, the Company announced the appointment of Daniel Smith as joint company secretary. On 12 July 2021, the Company announced that it has appointed Steven Larkins as a non-executive director. On 14 July 2021, the Company advised that the Federal Court had made orders in relation to the matter of tainted shares (under s.708A(5) and s.708A(11) of the Corporations Act) on 5 July 2021 and on 13 July 2021 validating the sales of those tainted shares respectively after and before July 2014. On 14 July 2021, the Company announced a renounceable rights issue offer to eligible shareholders to raise up to $5.1 million (before costs) to fund exploration of its Wabag project, repay debt, working capital and to meet the costs of the offer. On 12 August 2021, the Company announced that the renounceable rights issue had closed significantly oversubscribed and raised $5.1 million with a further $281,834 accepted as follow-on placement on the same terms as the rights issue. On 18 August 2021, the Company issued a total of 270,000,004 shares at $0.02 each and 111,599,898 options. The listed options (GMNOA) exercisable at $0.04 expiring 16 February 2023 were issued at one option for every three (3) new shares issued under the rights offer. Included in the issue were 21,600,000 options for services rendered by the lead manager and underwriter. In addition, the Company issued 32,424,242 shares to satisfy the obligation of adjustment shares to the subscribers of a placement announced on 16 November 2020. The shares issued were at a deemed price at $0.02. On 19 August 2021, the Company advised an adjustment to the option exercise price under ASX Listing Rule 6.22 following the pro-rata entitlement rights offer. Accordingly, a reduction applies to the original exercise price of the $0.15 issued options by $0.0025. The amended exercise price of $0.1475 applies to all of the current unlisted options. There has not been any other matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 54 NOTE 26: CONTROLLED ENTITIES Controlled Entities Consolidated Country of Incorporation Percentage Owned (%) Subsidiaries of Gold Mountain Limited: Viva No. 20 Limited GMN 6768 (PNG) Limited Viva Gold (PNG) Limited Abundance Valley (PNG) Limited Papua New Guinea Papua New Guinea Papua New Guinea Papua New Guinea 70% 100% 100% 100% Unless otherwise stated, the subsidiary listed above has share capital consisting solely of ordinary shares, which are held directly by the group, and the proportion of ownership interests held equals to the voting rights held by the group. The country of incorporation or registration is also their principal place of business. NOTE 27: CASH FLOW INFORMATION Reconciliation of Net Cash (used in) provided by operating activities with Loss after Income Tax Loss Non-cash flows in profit: Options expense Exploration expense Impairments expense Unrealised Foreign Exchange Loss Depreciation expense Changes in assets and liabilities (Increase)/decrease in trade and other receivables Increase/(decrease) in trade payables and other payables Net Cash (used in) provided by operating activities 2021 $ 2020 $ (1,394,982) (1,569,877) (768,120) 301,275 - 655,999 - - 20,000 6,760 211,175 127,000 (180,487) 85,356 21,730 181,547 (1,391,059) (1,442,923) GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 55 DIRECTORS’ DECLARATION In the opinion of the Directors of Gold Mountain Limited (the Company): 1. The financial statements and notes thereto, as set out on pages 25 to 55 are in accordance with the Corporations Act 2001 including: a. giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year then ended; and b. complying with Accounting Standards and Corporations Regulations 2001; and 2. 3. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. The financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021. This declaration is signed in accordance with a resolution of the Board of Directors. Tim Cameron Executive Director Dated this 30th day of September 2021 GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 56 Independent Auditor’s Report GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 57 ADDITIONAL SHAREHOLDER INFORMATION (as at 16 September 2021) A. Corporate Governance A statement disclosing the extent to which the Company has followed the best practice recommendations set by the ASX Corporate Governance Council during the period is contained within the Directors’ Report. B. Shareholding 1. Substantial holdings Shareholders 1 2 Citicorp Nominees Pty Limited Mr Chips Super Pty Ltd Substantial Holding 118,255,969 64,397,272 % of Issued Capital 11.05 6.02 2. Number of holders in each class of equity securities and the voting rights attached (as at 16 September 2021) Ordinary Shares In accordance with the Company’s Constitution, on a show of hands every number present in person or by proxy or attorney or duly authorised representative has one vote. On a poll every member present in person or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held. Options There were eight (8) classes of options with 288 holders of listed options (GMNOA) and 45 holders of unquoted options at 16 September 2021. Option Code GMNAC – various $0.15 expiry 3/12/2021 $0.15 expiry 16/3/2022 $0.15 expiry 3/7/2022 GMNAG - $0.15 expiry 5/6/2022 GMNAR - $0.15 expiry 8/10/2022 GMNAS - $0.15 expiry 31/12/2022 GMNAT - $0.15 expiry 31/12/2025 GMNOA - $0.04 expiry 16/2/2023 Total on Register Holders Units 20 6 5 6 4 1 3 288 333 56,616,667 12,911,539 23,411,924 11,131,539 39,000,000 11,000,000 20,000,000 111,599,898 285,671,567 + Original exercise price of $0.15 reduced by $0.0025 after Rights Issue 3. Distribution schedule of the number of holders in each class of equity security as at close of business on 16 September 2021. Ordinary Shares Spread of Holdings Holders Units % of Issued Capital 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001+ 40 21 128 523 556 5,014 76,337 1,184,101 22,737,255 1,046,146,463 Total on Register 1,268 1,070,149,170 < 0.01 0.01 0.11 2.12 97.76 100% GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 63 Listed Options (GMNOA) Spread of Holdings Holders Units % of Issued GMNOA 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001+ Total on Register 11 58 22 81 116 288 4,730 146,416 151,009 3,187,439 108,110,304 111,599,898 < 0.01 0.13 0.14 2.86 96.87 100% Marketable Parcel There are 339 non-marketable parcels at 16 September 2021, representing 3,714,548 shares. 4. Twenty largest holders of each class of quoted equity security The names of the twenty largest holders of each class of quoted security, the number of equity security each holds and the percentage of capital each holds (as at 18 September 2020) is as follows: Ordinary Shares Top 20 holders and percentage held 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Shareholder Citicorp Nominees Pty Limited Mr Chips Super Pty Ltd Pay Chuan Lim Doxy Pty Ltd BNP Paribas Noms Pty Ltd The Summit Hotel Bondi Beach Pty Ltd HSBC Custody Nominees (Australia) Limited Helen Miang Kieng Tan HSBC Custody Nominees (Australia) Limited Mr Gak San Seah BNP Paribas Nominees Pty Ltd Cathedral Front Pty Ltd Rookharp Capital Pty Limited Ms Siow Kwee Heng Mr Suwei Chen Mr Mohamed Zaid Bin Mohamed Zaini Rodby Holdings Pty Ltd Syed Hizam Alsagoff Mr Ghinan Mohamed Sani Rashidah Mohd Sani TOP 20 TOTAL Other shareholders Holding 118,255,969 % of Issued Capital 11.05% 64,397,272 49,350,000 39,183,332 31,341,815 28,130,715 27,235,183 25,929,086 25,262,737 17,450,770 14,360,393 14,110,440 12,000,000 12,000,000 11,910,000 11,631,487 11,343,333 10,433,483 10,171,667 10,016,667 6.02% 4.61% 3.66% 2.93% 2.63% 2.54% 2.42% 2.36% 1.63% 1.34% 1.32% 1.12% 1.12% 1.11% 1.09% 1.06% 0.97% 0.95% 0.94% 544,514,349 50.88% 525,634,821 49.12% TOTAL ISSUED CAPITAL 1,070,149,170. 100% GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 64 Listed Options Top 20 holders and percentage held 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Optionholder Mr Michael Soucik & Mrs Heather Soucik Holding 14,556,522 % of Issued Listed Options 13.04% Gazump Resources Pty Ltd Helen Miang Kieng Tan Pay Chuan Lim Citicorp Nominees Pty Limited Rookharp Capital Pty Limited Mr Chips Super Pty Ltd Aslan Equities Pty Ltd Mr Mohamed Zaid Bin Mohamed Zaini Mr Anthony De Nicola & Mrs Tanya Louise De Nicola Warragoon Investments Pty Ltd Syed Hizam Alsagoff Doxy Pty Ltd Aslan Equities Pty Ltd Half Price Decking & Timber Pty Ltd Challenge Aurora Pty Ltd Mrs Yan Wang Mr Ryan James Rowe Ismail Harith Merican Cathedral Front Pty Ltd TOP 20 TOTAL Other optionholders (GMNOA) 8,530,333 7,531,917 6,450,000 5,562,300 4,000,000 3,339,924 3,333,333 2,766,051 2,250,000 2,250,000 2,033,382 1,700,000 1,666,666 1,666,666 1,399,999 1,333,333 1,333,333 1,273,266 1,175,870 7.64% 6.75% 5.78% 4.98% 3.58% 2.99% 2.99% 2.48% 2.02% 2.02% 1.82% 1.52% 1.49% 1.49% 1.25% 1.19% 1.19% 1.14% 1.05% 74,152,895 33.55% 37,447,003 49.12% TOTAL ISSUED LISTED OPTIONS 111,599,898 100% GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 65 5. Company Secretary The name of the Company Secretary is Eric Kam. The name of the Joint-Company Secretary is Dan Smith Address and telephone details of the Company’s registered administrative office and principal place of business: Suite 2501, Level 25 31 Market Street SYDNEY NSW 2000 Australia Telephone: +61 2 9261 1583 info@goldmountainltd.com.au www.goldmountainltd.com.au Address and telephone details of the office at which a registry of securities is kept: Boardroom Pty Limited Grosvenor Place, Level 12, 225 George Street, SYDNEY NSW 2000 GPO Box 3993, SYDNEY NSW 2001 Telephone: 1300 737 760 (In Australia) +61 2 9290 9600 (International) Facsimile: 1300 653 459 Stock exchange on which the Company’s securities are quoted: The Company’s listed equity securities are quoted on the Australian Securities Exchange Ordinary Shares – ASX Code: GMN Listed Options (exercise price $0.04 expiring 16 February 2023) – ASX Code: GMNOA Restricted Securities There are no restricted ordinary shares. Options Code GMNAC (Various) Number Strike Expiry Restriction GMNAC GMNAG GMNAR GMNAS 56,616,667 12,911,539 23,411,924 11,131,539 39,000,000 11,000,000 GMNAT 20,000,000 GMNOA 111,599,898 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.04 3 Dec 2021 16 Mar 2022 3 Jul 2022 5 Jun 2022 8 Oct 2022 31 Dec 2022 31 Dec 2025 N/A N/A N/A N/A ESOP Vesting over 3 periods of 12 months per period 16 Feb 2023 N/A Review of Operations A review of operations is contained in the Directors’ Report on page 12 of this Annual Report. Schedule of Tenements The Company’s Schedule of Tenements is on page 23 of this Annual Report. GOLD MOUNTAIN LIMITED ANNUAL REPORT 2021 66

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