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