GOLDEN MILE RESOURCES LIMITED
ABN 35 614 538 402
Annual Report for the Year Ended
30 June 2021
GOLDEN MILE RESOURCES LIMITED
TABLE OF CONTENTS
Table of Contents
REVIEW OF OPERATIONS ................................................................................................................................ 1
DIRECTORS’ REPORT ..................................................................................................................................... 23
AUDITOR'S INDEPENDENCE DECLARATION ............................................................................................... 37
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......................................... 38
STATEMENT OF FINANCIAL POSITION ......................................................................................................... 39
STATEMENT OF CHANGES IN EQUITY ......................................................................................................... 40
STATEMENT OF CASH FLOWS ...................................................................................................................... 41
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS ....................................................... 42
DIRECTORS’ DECLARATION .......................................................................................................................... 59
INDEPENDENT AUDITORS’ REPORT ............................................................................................................ 60
SHAREHOLDER INFORMATION ..................................................................................................................... 64
CORPORATE DIRECTORY .............................................................................................................................. 67
GOLDEN MILE RESOURCES LIMITED
REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
Golden Mile Resources (ASX: G88) (“Golden Mile” or the “Company”) is pleased to report on the
Company’s activities for the annual period ended 30 June 2021.
Golden Mile’s work over the past 12 months has principally been on mineral exploration, with a focus on the
Leonora (Benalla, Ironstone Well and Monarch), and Darlot Gold Projects in the North-Eastern Goldfields, and
the Yuinmery Gold/Base Metals and Yarrambee Base Metals Projects in the Murchison Region of Western
Australia (Figure 1).
The Company has also commenced a review of the metallurgical potential of the nickel laterite resource at the
Quicksilver Project in the Wheatbelt Region of Western Australia.
Figure 1: Golden Mile’s project locations in Western Australia.
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1. YARRAMBEE PROJECT (NI-CU-PGE & CU-ZN)
The Yarrambee Project is a regionally significant landholding over the Narndee-Igneous Complex (NIC) in the
Murchison Region, approximately 500km northeast of Perth, Western Australia (Figure 2)
With more than 800km2 under tenure, Golden Mile is the largest landholder across the NIC, considered
prospective for Ni-Cu-PGE mineralisation (e.g. Voisey’s Bay, Nova, Julimar), and volcanogenic massive
sulphide (VMS) Cu-Zn mineralisation (e.g. Golden Grove, DeGrussa).
Figure 2: Golden Mile’s Yarrambee Base Metals Project, Murchison Region, WA.
Airborne Electromagnetic Survey
During the June quarter the Company flew a 1,342 line-kilometre, helicopter-borne electromagnetic (HEM)
survey targeting prospective geological horizons for Cu-Ni-PGE and VMS Cu-Zn mineralisation.
A review of the HEM data by the Company’s geophysical consultant identified 48 individual anomalies which
have been categorised into three groups depending on their interpreted probability to represent conductors in
the bedrock, the aim of the survey (Figure 3).
A cluster of these bedrock conductors are associated with the historical Narndee VMS (Cu-Zn) prospect where
historical exploration, including limited drilling, identified widespread base metal related ‘smoke’.
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Figure 3: Yarrambee HEM survey. Main block image is 25Hz base channel 23 Bfield (Z component). Northeast block image
is 12.5Hz base frequency (channel 457 Z component). Background image regional magnetics (RTP-TMI). Areas
of broad conductive responses reflect conductive overburden (e.g., saline groundwater).
Importantly historical drilling only partially tested some of the conductors and intersected widespread ‘smoke’
and VMS-related alteration, while several of the conductors identified have not having seen any historical drilling
(refer Figure 3 and G88 ASX Announcement 7/7/2021)1:
• ND1-6 and Narndee South: A ‘central cluster’ of 26 anomalies associated with surface Cu-Zn
anomalism, altered felsic volcanics, associated exhalites and gossans.
Most of these conductors appear to be untested or only partially tested by previous drilling which intersected
widespread zones of massive sulfide mineralisation and the Company’s compilation of historical exploration
data has identified several holes drilled in proximity to this cluster of high priority anomalies which
intersected widespread sulfides with low-moderate grade metals including (refer figure 4 and G88 ASX
Announcements 11/3/2021 & 18/8/2021)1:
• 10m @ 1% Zn from 88m incl. 1m @ 5.89% Zn from 97m (NX12-04)
• 8m @ 0.44% Cu from 53m including 1m @ 1.1% Cu (NX12-13)
• 3m @ 0.48% Cu from 50m & 6m @ 1.1% Cu from 58m (NX14-29)
• 8m @ 0.11% Cu & 4m @ 0.22% Cu (ND1)
• Chi: A strong bedrock conductor north of the known Narndee Prospect associated with known surface
copper anomalism not previously identified
• TBW: A strong basement conductor to the south of Narndee, and not recognised in historical EM or
surface exploration.
In addition to the high priority targets surrounding the Narndee prospect several other high priority anomalies
were identified by the HEM survey including (Figures 3 & 4):
• Redhead: Probable bedrock conductor ‘seen’ through conductive cover in the lower frequency (12.5Hz)
system and associated with mapped mafic intrusives with no historical geochemistry or drilling
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• Lambda ‘cluster’: A group of north-south trending probable bedrock conductors extending over more
than 1km strike, bounded by a mineralised structural corridor and associated with a strong magnetic
feature possibly related to VMS alteration.
• NMS1, 2 and One Mile: Six lower order bedrock conductors in an area of transported sheet wash which
was likely opaque to earlier generation geophysical surveying
Further Work
A 7–10-day ground moving loop electromagnetic program will commence shortly over high priority targets to
refine and model these in preparation for drill testing in the December quarter.
Figure 4: Yarrambee HEM survey, western end focused on targets surrounding the historical Narndee Cu-Zn
prospect. Main image is 25Hz base channel 23 Bfield (Z component). Background image regional magnetics (RTP-
TMI).
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2. LEONORA GOLD (100% G88)
Background
Golden Mile’s Leonora Gold Project comprises a regionally significant tenement package at Ironstone Well,
Monarch and Benalla located east of the Leonora mining centre in the prolific Eastern Goldfields of Western
Australia (Figure 5).
The Leonora Gold Project is along strike from and surrounded by significant gold production, development and
exploration projects including St Barbara’s Gwalia Project (ASX: SBM) and Kin Mining’s Cardinia Project (ASX:
KIN).
Figure 5: Golden Mile’s Leonora Gold Project, North-Eastern Goldfields, Western Australia.
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2.1 Benalla Gold Project
Background
Golden Mile’s Benalla Project covers a more than seven-kilometre strike length of high priority gold-in-auger
anomalies immediately along strike from Kin Mining’s 1.27Moz Cardinia Gold Project (refer Figure 6 and ASX:
KIN announcement 23 September 2021)1.
Gold mineralisation at Benalla is associated with a felsic volcanic unit, within an assemblage of andesite and
basalt, intermediate to mafic volcanics with associated quartz veining, disseminated sulphides (mostly pyrite,
up to 5%) and potassic alteration, on or near the contact with surrounding mafic volcanic units.
This style and setting of mineralisation is considered analogous to KIN’s neighbouring Cardinia area (refer ASX:
KIN Announcement 14 September 2020)1.
Figure 6: Golden Mile’s Benalla Project with targets and 2021 aircore drill program (background image RTP TMI
magnetics).
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First pass aircore (AC) drilling in 2020 of gold-in-auger geochemistry anomalies (BGT1-4) intersected
widespread gold mineralisation associated with sheared and weathered felsic volcanic and volcaniclastic
lithologies with widespread sulfides (pyrite) and quartz veining common. Significant intercepts included (refer
Figure 6 and G88 ASX announcement 12/1/2021)1:
• BTAC082
4m @ 3.86 g/t Au from 28m incl.1m @ 10.6g/t Au and
16m @ 1.05 g/t Au incl. 4m @ 2.93 g/t Au from 52m
• BTAC120
16m @ 0.81 g/t Au from 16m incl. 4m @ 1.56g/t Au from 20m
Follow up AC drilling highlighted a wide zone of gold mineralisation at the Wanghi Prospect, including (refer
Figure 6 and G88 ASX announcement 29/3/2021)1:
• BTAC187
28m @ 1.79g/t Au from 51m incl. 14m @ 3.07g/t Au from 63m
• BTAC188
3m @ 2.74g/t Au from 15m
• BTAC189
4m @ 0.51g/t Au from 36m
The wide gold intersections at Wanghi are associated with a structural zone associated with the Spectrum Fault,
considered to control the distribution of gold in the area.
Drilling during the June quarter targeted the Wanghi Zone with an 11-hole (1,205m) reverse circulation (RC)
drilling program.
The Wanghi RC program intersected the target lithologies where modelled, however mineralisation associated
with the gold zones intersected in holes BTAC082 and BTAC187 was discontinuous with the best results from
hole BTRC008, drilled ~50m to the southwest of BTAC187 with (refer Figure 7 and G88 ASX Announcement
13/5/2021)1:
• 6m @ 1.73g/t Au from 87m including 3m @ 3.30 g/t Au from 90m.
The intersection in BTRC008 is open to the south where there is limited surface sampling and no drilling down
to a line of aircore holes approximately 800m to the south which included (refer Figure 7 and G88 ASX
Announcement 13/5/2021)1:
• BTAC216 4m @ 0.13g/t Au
• BTAC219 8m @ 0.23g/t Au.
This zone of mineralisation south of Wanghi coincides with the Spectrum Fault and is considered a high priority
for follow up testing with surface sampling and further drilling.
Following the end of the annual period results were received from a short 16-hole (710m) AC program at
Benalla, drilled to follow up targets at Wanghi, Benalla Hill, BGT2, BGT3 and Websters. Significant intersections
from this program included (refer G88 ASX Announcement 22/7/2021)1:
• BTAC277 (Wanghi) 4m @ 0.68g/t Au from 37m and 4m @ 0.29 g/t Au from 45m
• BTAC271 (BGT02) 4m @ 0.11g/t Au from 40m
• BTAC272 (BGT02) 4m @ 0.16g/t Au from 36m
• BTAC273 (BGT02) 4m @ 0.17g/t Au from 44m and 5m @ 0.16 g/t Au from 52m
Drilling at the Websters Prospect in the south of the project area was curtailed due to rig issues and the target
is considered only partly tested.
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Figure 7: Golden Mile’s Benalla Project with drill results at Wanghi and Benalla Hill targets.
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2.2 Ironstone Well Gold Project
The Ironstone Well Project, seven kilometres northeast of Leonora, covers several well-mineralised structures
including the Pink Pig Shear Zone, plus numerous underexplored alluvial gold prospects.
Gold was first discovered at Ironstone Well in 1899 and mine production was generally of a small scale but high-
grade, including the “Pride of Leonora” where historical production of 38 kg of gold was recorded from 1,540t
@ 24.6 g/t Au.
Golden Mile has identified several targets prospective for gold mineralisation at Ironstone Well which have been
defined by historical geochemistry and geophysics including several significant gold intersections in historical
drilling associated with extensive mineralised structures and numerous underexplored prospects.
Figure 8: Ironstone Well, Golden Mile tenure and prospects
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During the June quarter the Company completed an 11-hole (635m) AC program at Ironstone Well, targeting
geochemical anomalies coincident with the folded “Pink Pig” Shear Zone, which can be traced for more than
three kilometres regionally.
The best intersections from this program were associated with the Pig Well prospect and included (refer Figure
8 and G88 ASX Announcement 22/7/2021)1:
•
•
•
•
IWAC010: 4m @ 0.30g/t Au from 40m and 8m @ 0.60 g/t Au from 60m
IWAC007: 4m @ 0.13g/t Au from 96m
IWAC008: 4m @ 0.10g/t Au from 16m
IWAC009: 4m @ 0.53g/t Au from 60m
The AC program was limited to where the Company had been able to attain drilling approvals and was the first
undertaken by the Company at Ironstone Well since 2018 when drilling on the Natasha Prospect included (refer
Figure 8 and G88 ASX Announcement 31/1/2018)1:
•
IRC002: 7m @ 4.16 g/t Au from 17m incl. 2m @ 11.35 g/t Au.
Further drill programs targeting the NW structural zone associated with the Natasha and Pride of Leonora
prospects is planned in the coming months following grant of the Company’s Program of Works (POW)
application (Figure 8).
2.3 Monarch Gold Project
The Monarch Project covers the eastern part of the Mertondale Shear Zone along a granite-greenstone contact
that is interpreted to represent a poorly tested but extensive gold bearing structure extending over more than
15 km of strike (Figure 5).
The Company’s focus at Monarch to date has been on the Wildcat Prospect, which is associated with several
significant, previously unknown geochemical anomalies that Golden Mile has identified from an extensive auger
sampling program (refer G88 ASX announcement dated 9/12/2019)1.
A 71 hole 2,289 metres aircore (AC) drilling program completed by the Company in December 2019 targeted
the known mineralised Wildcat structure and the surrounding geochemical gold anomalies that define the
mineralised trends.
Results from the AC program included 1m @ 76.4 g/t gold, 6m @ 3.13 g/t gold and 8m @ 2.58 g/t gold amongst
other anomalous results that indicate the structure at Wildcat contains high-grade gold mineralisation at shallow
depths that has continuity over at least 150 metres of strike length (refer G88 ASX Announcement 24/1/2020)1.
Gold mineralisation occurs over a strike length of approximately 150 metres and is open both along strike and
down-dip.
This AC program was followed up with a 21-hole (1,823m) reverse circulation (RC) percussion drilling program
in February 2020 which intersected several zones of anomalous gold including (refer Figure 9 and G88 ASX
Announcement 26/3/2020)1:
• WRC039 – 2m @ 2.86 g/t Au from 96m, including 1m @ 5.12 g/t Au
• WRC047 – 1m @ 2.42 g/t Au from 84m
• WRC040 – 1m @ 2.13 g/t from 70m
• WRC036 – 2m @ 1.62 g/t Au, including 1m @ 2.37 g/t Au
These results indicate that the gold mineralised structure at Wildcat does extend down-dip, where zones of
elevated grade were intersected, typically associated with quartz veining.
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Figure 9: March 2020 RC drilling Wildcat Prospect, Monarch Gold Project, Leonora.
Further Work at Monarch
Golden Mile’s geologists have completed a targeting review of the Monarch Project which has identified several
targets considered to represent opportunities for further gold discoveries, and the Company is completing a
strategic review to determine the best approach to maximise value to shareholders.
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3. YUINMERY GOLD PROJECT
The Yuinmery Project (tenement E57/1043) is in the Youanmi Gold Mining District, approximately 10km east of
the Youanmi Gold Mine (ASX: RXL and VMC), and adjacent to the Yuinmery Cu-Au Project (ASX: ERL). The
area has experienced a significant upswing in activity following the high-grade Penny North (ASX: RMS) and
Grace (ASX: RXL) discoveries.
The region is traversed by the north to north-northeast trending Youanmi Shear Zone, a major crustal structure
that marks the boundary between the Murchison and Southern Cross domains.
Figure 10: Golden Mile’s Yuinmery Project, Murchison Region, WA. Prospects, historical drilling and GSWA 1:100,000
geology.
The Yuinmery Project area contains approximately 9km strike length of the Yuinmery Shear, a northwest
trending structure that intersects the regional Youanmi Shear. This sheared granite-greenstone contact
represents a favourable structural target for gold mineralisation.
Several gold occurrences have been identified by prospectors within the tenement area and the Company has
defined significant NNE trending gold-in-soil anomalies over 800m strike at Elephants Reef and Ladies Patch
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which correlate with historic gold-in-soil and multi-element pathfinder assays (refer G88 ASX announcement
12/11/20)1.
Limited historical drilling further highlights the prospectivity of the Yuinmery Shear Zone with intersections
including (refer Figure 10 and G88 ASX Announcement 23 September 2019)1:
• 5m @ 1.49g/t Au from 0m and 5m @ 0.28 g/t Au from 5m (94YMR078)
• 3m @ 1.33g/t Au from 0m (94YMR077)*
• 3m @ 1.03g/t Au from 3m (94YMR161)*
• 5m @ 1.02g/t Au from 2m (93YMR026)
* = end of hole intersection
Historical drilling is generally shallow with average hole depths ~20m (maximum 59m) with no follow up RC or
diamond drilling reported.
June Quarter Soil Sampling Program
During the June quarter the Company received results from a soil sampling program which confirmed and
expanded the broad zone of surface gold anomalism at Elephant Reef and Ladies Patch prospects each
extending over more than 800m adjacent to the regional Yuinmery Shear Zone.
The soil sampling program comprised 451 samples collected at a nominal 100m x 50m spacing to infill historic
results previously collected at 400m line spacing.
In addition to infill sampling on the known prospects, several widely spaced lines were collected over the
‘western limb’ of the greenstone considered prospective for base metals (Cu-Pb-Zn and Ni-Cu) mineralisation.
Assay results from the latest program correlate well with historic results and have confirmed the gold-in-soil
anomalies at the Ladies Patch and Elephant Reef prospects, with each extending over more than 800m of strike
(refer Figures 10 & 11 and G88 ASX Announcement 30/6/2021)1.
• Ladies Patch is a ~2km gold-in-soils anomaly associated with a mafic rock unit parallel to the Yuinmery
Shear Zone (YSZ) and which was partly tested by previous explorers with shallow (average 20m) RAB
drilling in the early 1990’s on traverses 200m apart.
Historical drilling at Ladies Patch intersected widespread gold ‘smoke’ including (refer Figure 11 and G88
ASX Announcement 23/9/2019)1:
5m @ 1.49g/t Au from 0m and 5m @ 0.28 g/t Au from 5m (94YMR078)
3m @ 1.33g/t Au from 0m (94YMR077)*
3m @ 1.03g/t Au from 3m (94YMR161)*
5m @ 1.02g/t Au from 2m (93YMR026)
* = end of hole intersection
The Company considers Ladies Patch a high priority target for follow up aircore and RC drilling given the
size and tenor of the surface gold anomaly, the smoke associated with the wide spaced, limited, shallow
historical drilling, and the association of the anomaly with the YSZ.
• Elephant Reef is a north-trending gold-in-soils anomaly ~800 m x 600 m width which has seen no
historical drilling and includes a significant alluvial gold including 115oz Au recovered from quartz vein and
94oz Au recovered from adjacent drainage channels.
A follow up aircore program is being planned by the Company.
A new, high priority gold anomaly south of Ladies Patch (‘Grey Beard’), was also defined with soil results up to
a maximum of 300ppb Au over more than 1km2 in an area which has seen no drilling (refer Figure 11 and G88
ASX Announcement 30 June 2021)1.
The Grey Beard prospect appears to sit on a structural splay off the main YSZ and is considered a priority for
follow up sampling and aircore drilling.
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Figure 11: Yuinmery Project. Gold in soils surrounding Ladies Patch and Elephant Reef with Grey Beard anomaly to the
south (aerial photo background). Refer Figure 2 for map location.
Yuinmery Base Metal Potential
The June quarter soils program at Yuinmery also included wider spaced ‘regional’ sampling targeting Ni-Cu
mineralisation associated with mapped ultramafic rocks (tremolite schists) and spinifex textured basalts in the
southwest of the tenement (refer Figure 10).
This regional sampling in the Fitz Bore area highlighted a zone of elevated nickel (max 765ppm Ni) with
elevated copper (max 300ppm Cu) and the area is considered a high priority for further sampling and mapping.
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4. DARLOT GOLD PROJECT
Golden Mile’s Darlot Project located approximately 110km north of Leonora, comprises a single exploration
tenement (E37/1248) immediately adjacent to the Darlot Gold Mine, owned and operated by RED5 Limited
(ASX: RED) (Figure 12).
The Darlot Gold Project is interpreted to contain strike extensions of several key structures that control gold
mineralisation in the Darlot goldfield. However, despite being adjacent to a major gold mine, the tenement has
seen limited modern exploration with some gold anomalism detected that has never been systematically
followed-up.
Figure 12: Golden Mile’s Darlot tenement E37/1248 and target areas
The Company has identified several target areas at Darlot which are spatially associated with the southeast
strike extensions of key structures in the Darlot goldfield and proximal to known gold occurrences (refer Figure
12 and G88 ASX Announcement 12/1/2021 )1:
a) Northern Target – Taranaki Fault Zone (TFZ) adjacent to the historic Rosewood Bore and Gipps Hill gold
mines
b) Central Target– south of the TFZ and the Janine gold occurrence where RED5 has reported recent grab
samples containing up to 21.9g/t Au (refer RED ASX announcement 11 November 2019)1. The area also
contains mineralised rock chip samples with up to 8.4g/t Au associated with quartz veins and mullock dumps
(refer G88 ASX Announcement 25 May 2020)1. Assay results from Golden Mile’s soil sampling over the
Central Target highlighted several gold anomalies with results up to 232ppb Au (refer Figure 12 and G88
ASX Announcement 25 August 2020)1. The two strongest anomalies are located close to the sheared
granite-greenstone contact and extend over ~400m strike.
c) Southern Target – Along the SE extension of the El Dorado Fault, (associated with mineralisation at Darlot)
and proximal to the Amazon and Ballangarry gold occurrences.
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Figure 13: Golden Mile’s Darlot Project, Central Target. AC drilling intercepts >0.1 g/t Au.
A 37 hole, 1,311m AC Drilling program by the Company in late 2020 focussed on the Central Target Area. The
relatively shallow holes were drilled to blade refusal in an area of little to no cover, with several narrow zones of
gold mineralisation intersected including (refer Figure 13 and G88 ASX Announcement 12/1/2021)1:
DAC003 4m @ 0.18g/t Au from 12m and 8m @ 0.59g/t Au from 16m
DAC015 3m @ 0.17g/t Au from 28m (*End of hole intercept)
DAC020 4m @ 0.24g/t Au from 28m (*End of hole intercept).
A strategic review of the Darlot Project including an updated targeting study by the Company’s consultant
geologists has recommended follow up work on targets spatially associated with the southeast strike extensions
of key structures in the Darlot goldfield and proximal to known gold occurrences.
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5. QUICKSILVER NICKEL LATERITE PROJECT
The ~50 km2 Quicksilver Project comprises an exploration license and a prospecting license located near
Pingaring in the South-West Mineral Field of Western Australia, approximately 280 km southeast of Perth
(Figure 14).
Figure 14: Golden Mile’s Quicksilver Ni-Co Project, southwest Western Australia.
Quicksilver is located primarily on privately owned farmland in an area with excellent local infrastructure,
including easy access to grid power, sealed roads, and a railway line to key ports.
The Quicksilver Project covers a greenstone belt with potential for the discovery of economic nickel laterite and
sulfide mineralisation and a total indicated and inferred resource estimate of 26.3 Mt @ 0.64% Ni & 0.04% Co
(cut-off grade >0.5% Ni or >0.05% Co) has been announced by the Company (refer G88 ASX announcement
dated 19 November 2018)1.
The Ravensthorpe nickel operations (RNO), owned by First Quantum Minerals Ltd (FQML), is the closest
refinery approximately 255 kilometres away with the ports of Albany and Kwinana approximately 300 kilometres
from the project.
Quicksilver Metallurgy
In 2019 Golden Mile undertook a preliminary metallurgical testwork study on two bulk composite samples (lower
and upper saprolite) from the Quicksilver project, focussed on direct atmospheric acid leaching. The results
from this work indicated this type of flowsheet was not optimal.
Size analysis from the 2019 study however demonstrated that there was potential to uplift (beneficiate) nickel
grades through a simple screening and scrubbing process aimed at rejecting poorly mineralised silica, however
these studies were limited (refer Tables 1 and 2 and G88 ASX announcement dated 4/4/2019)1.
Although the potential to physically upgrade nickel is indicated in the size analysis, beneficiation processes
aimed at rejecting silica are numerous and have not been tested. The Company has therefore engaged leading
nickel laterite processing engineers Wood Mining and Metals Australia (Wood) to explore potential beneficiation
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paths to upgrade the Quicksilver mineralisation for direct sale via one of the numerous nearby ports, or toll
treatment through a suitable refinery.
Metallurgy Update and Wood Review
Using information reported from the original testwork program undertaken in 2019, Wood confirmed the
Company’s view that size-by-assay tests before and after scrubbing demonstrated potential to beneficiate both
composites, with nickel and cobalt upgrading in the fines (refer Tables 1 & 2).
The 55% nickel upgrade at 68.5% nickel recovery achieved in the preliminary scrub and screen testing of the
Lower Saprolite sample is considered encouraging in terms of a preliminary unoptimized test.
Wood concluded that:
“The evidence from this preliminary work suggests a harder siliceous component can be selectively rejected
with controlled scrubbing and a size and or density classification as can be achieved with hydrocyclones.
Forecasting the nickel and cobalt upgrade and concentrate recovery potential from such a preliminary scrubbing
investigation is problematic and provides an incentive to undertake further investigation.”
This initial review by Wood also recognised that the Quicksilver Resource has many logistical advantages
compared to other greenfield sites in WA, offering greater optionality for development, the surety of supply
inputs such as reagents and the relative lowering of unit costs.
Some of the important features include a direct link to sealed roads, an existing rail line close by, a freshwater
pipeline at least to Lake Grace to the south and the proximity of wheatbelt towns and the ports of Albany,
Bunbury, and Kwinana.
Further Work
Based on recommendations from the Wood review the Company is preparing to undertake further metallurgical
testwork using existing samples stored by the Company. This testwork is based on developing and optimising
a low energy conceptual beneficiation flowsheet.
A scope of work for this program has been sent to several well-known metallurgical laboratories in Perth with
proposals currently under consideration by the Company. Once a contract has been awarded it is expected this
phase two program will take approximately three to four months to complete.
Depending on testwork results then the further steps may include the development and delivery of an economic
study of the Project.
Table 1: Summary screening and scrubbing results by size fraction, Upper Saprolite sample
Size
Fraction
(mm)
Mass
Recovery
(%)
Screening
Nickel
Recovery
(%)
Scrubbing
Cobalt
Recovery
(%)
Mass
Recovery
(%)
Nickel
Recovery
(%)
Cobalt
Recovery
(%)
< 6.7
< 2
< 1
< 0.5
< 0.35
< 0.106
92.4
80.6
74.6
69.1
65.8
49.6
97.2
91.6
88.3
84.9
82.4
68.4
97.4
83.2
73.3
64.2
59.5
41.2
80.2
69.3
65.8
61.1
58.4
45.1
88.1
82.6
80.5
76.9
74.9
63.6
99.1
69.2
63.9
56.6
52.8
37.5
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Table 2: Summary screening and scrubbing results by size fraction, Lower Saprolite sample
Size
Fraction
(mm)
Mass
Recovery
(%)
Screening
Nickel
Recovery
(%)
Scrubbing
Cobalt
Recovery
(%)
Mass
Recovery
(%)
Nickel
Recovery
(%)
Cobalt
Recovery
(%)
< 6.7
< 2
< 1
< 0.5
< 0.35
< 0.106
90.3
75.3
68.6
62.7
59.9
45.4
97.1
92.4
90.0
87.0
85.1
68.1
95.9
86.6
80.2
70.9
66.7
48.8
89.0
72.5
67.5
61.1
58.1
44.9
96.5
91.2
89.1
85.3
82.9
68.5
97.0
89.3
82.7
72.6
68.0
50.9
6. GIDGEE PROJECT
Golden Mile has a binding farm-in agreement granting Gateway Mining Limited (“Gateway” - ASX:GML) the
right to acquire up to an 80% interest in the Gidgee Project, conditional upon the Company obtaining appropriate
exemptions under the Mining Act 1978 (WA) in relation to the expenditure conditions on the tenements
comprised in the Gidgee Project (Condition Precedent).
Gateway has pre-existing interests in tenements located within the historical gold mining areas in the Gum
Creek (Gidgee) Goldfield.
During the year the Company resolved applications for forfeiture in relation to a third-party application over the
tenements, and after year-end the Company was issued (and paid) fines with respect to 2020 expenditure
commitments (refer Company’s Quarterly Activities Report to 31 October 2020 and G88 ASX Announcement
29 September 2021)1.
The Condition Precedent conditions have therefore now been achieved granting Gateway the right to acquire
up to an 80% interest in the Gidgee Project (refer G88 ASX announcement 23 July 2020).
19
GOLDEN MILE RESOURCES LIMITED
REVIEW OF OPERATIONS
Figure 15: Gidgee Project with Golden Mile farm-in tenements
The Gidgee Project covers an area of approximately 400km2 on the western side of the highly prospective Gum
Creek Greenstone Belt, with Gateway now controlling more than 1,000km2 in the district (Figure 15).
The Gidgee Project tenements include the “Woodley Domain” - a ~30km long major gold-bearing structural
corridor - one of three identified gold trends within the Gum Creek belt which also includes the Eastern
Montague Domain (gold endowment >1 Moz) and the Central Gidgee Domain with more than 2Moz of gold
endowment.
The relatively small endowment of the Woodley Domain reflects the lack of systematic exploration and relatively
rudimentary drilling which identified several outstanding, shallow intersections including (refer G88 ASX
announcement 23/7/2020)1:
• 40m @ 3.0g/t Au from surface in hole 3840/1656
20
GOLDEN MILE RESOURCES LIMITED
REVIEW OF OPERATIONS
• 20m @ 2.5g/t Au from surface in hole 3760/1624
• 24m @ 3.3g/t Au from surface in hole 3660/1880
• 11m @ 4.5g/t Au from 58m in hole 3660/1548
• 20m @ 1.3g/t Au from surface in hole 3720/1548
• 22m @ 2.3g/t Au from 61m in hole GRB660
These drill intercepts remain largely open with little to no follow-up work.
Forward Plan
Gateway has recently accelerated exploration efforts on the Gidgee Project tenure with the collection of a series
of core geophysical datasets, heritage and environmental studies and Program of Work (POW) applications for
future drilling.
A comprehensive new ground gravity survey (Figure 16) and airborne magnetic data compilation have now
been completed.
Figure 16: Gidgee Project with ground gravity survey points and regional geology
21
GOLDEN MILE RESOURCES LIMITED
REVIEW OF OPERATIONS
COVID-19
The COVID-19 pandemic has impacted all businesses throughout Australia and Golden Mile is no different.
The restrictions relating to travel between states, regions and countries, restrictions in work practices, and
precautionary measures required to be taken when outside of the home have impacted all aspects of life in
Australia throughout 2020-21.
Although the restrictions have provided challenges on an individual basis, the Company has developed COVID-
specific operating protocol addressing this issue and the Company’s operations have not been as disrupted
In addition, the Company’s officers are familiar with working remotely, and therefore have been able to adapt
readily to the “new normal”.
The Company’s focus in the latter half of FY2021 has been to revisit the exploration plans and raise capital to
fund operations into next year. These activities have been unencumbered by the restrictions.
Further details about the impact of COVID-19 are provided in relevant notes in the Financial Report
NOTES
Note 1: Refer ASX announcement on the said date for full details of these results. Golden Mile is not aware of
any new information or data that materially affects the information included in the said announcement.
All material results contained in this report have previously been reported in separate ASX releases.
For more information please visit the Company’s website: https://www.goldenmileresources.com.au or the ASX
website: https://www.asx.com.au/asx/share-price-research/company/G88
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited
to, statements concerning Golden Mile Resources Ltd (ASX: G88) planned exploration program and other
statements that are not historical facts. When used in this document, the words such as "could," "plan,"
"estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking
statements. Although Golden Mile Resources Ltd (ASX: G88) believes that its expectations reflected in these
forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance
can be given that actual results will be consistent with these forward-looking statements.
Competent Persons Statement
The information in this report that relates to Exploration Results is based upon and fairly represents information
compiled by Mr James Merrillees, a Competent Person who is a Member of the Australasian Institute of Mining
and Metallurgy. Mr Merrillees is a full-time employee of the Company.
Mr Merrillees has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Merrillees consents to the inclusion in the report of the matter based on his information in the form and context
in which it appears.
The Company confirms it is not aware of any new information or data that materially affects the exploration
results set out in the in the original announcements referenced in this announcement and all material
assumptions and technical parameters underpinning the estimates continue to apply and have not materially
changed. The Company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original announcements.
22
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
DIRECTORS’ REPORT
The Directors of Golden Mile Resources Limited (the “Company”) submit herewith the Report on the Company
for the financial year ended 30 June 2021. To comply with the provisions of the Corporations Act 2001, the
Directors report as follows:
Directors
Details of the Directors of the Company in office at any time during or since the end of the financial year and at
the date of this report are:
Mr Rhoderick Grivas
Non-Executive Chairman
Experience and qualifications: Rhoderick Grivas is a geologist with over 30 years of experience in the
resource industry, including 20 years of board experience on ASX listed
companies. Mr Grivas has held several director and management
positions with publicly listed mining and exploration companies, including
Managing Director of ASX and TSX listed gold miner Dioro Exploration
NL (ASX: DIO), where he oversaw the discovery and development of a
gold resource through feasibility to production. Mr Grivas has a strong
combination of equity market, M&A, commercial, strategic, and executive
management capabilities.
Other Directorships in listed
entities:
Andromeda Metals Limited (ASX: ADN, appointed 27 October 2017)
Lexington Gold Limited (AIM: LEX, appointed 23 November 2020)
Former Directorships in listed
entities in last 3 years:
Aldoro Resources Limited (ASX: ARN, appointed 20 November 2019,
resigned 25 November 2020) Okapi Resources Limited (ASX: OKR,
appointed 30 June 2020, resigned 13 May 2021).
Interests in Shares and
options:
524,750 fully paid ordinary shares
1,000,000 Unlisted options exercisable $0.092, expiring 26 August 2023
285,791 Listed options exercisable at $0.10, expiring 23 September
2023.
James Merrillees
Managing Director (appointed 25 November 2020)
Experience and qualifications Mr Merrillees is a professional geologist with more than 20 years’
experience in minerals exploration and development. He has wide-
ranging experience leading teams exploring for and evaluating precious
and base metals globally. Mr Merrillees, experience includes senior
technical and corporate roles for ASX listed major and junior gold and
base metals explorers and producers. He is a member of the AusIMM
and holds Bachelor of Science (Geology) and Bachelor of Commerce
(Accounting and Finance) degrees and a Graduate Diploma in Applied
Finance
Other directorships in listed
entities
None
Former Directorships in listed
entities in last 3 years:
Cygnus Gold Limited (ASX: CY5, appointed 15 January 2018, resigned
30 June 2020)
Interests in Shares and
options:
200,000 fully paid ordinary shares
133,333 Listed options exercisable at $0.10, expiring 23 September 2023
1,000,000 Unlisted options exercisable at $0.088, expiring 24 August
2024.
1,000,000 Unlisted options, expiring 24 August 2024, not yet vested or
issued. Exercise price to be determined on issue.
23
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Mr Phillip Grundy
Non-Executive Director
Experience and qualifications Phillip Grundy is a partner at Moray & Agnew Lawyers, specialising in
Corporate law and Mergers & Acquisitions.
Phillip has acted as a legal advisor to many ASX-listed public companies
across a broad range of industry sectors. He has advised several
Australian and international companies in relation to ASX-listings, initial
public offerings, backdoor listings, capital raisings, corporate takeovers,
continuous
governance,
requirements,
Corporations Act and ASX Listings Rules compliance and general
commercial transactions.
disclosure
corporate
In addition, Phillip advises a number of international companies in relation
to inbound Australian investment, mergers and acquisitions, capital
raisings in the Australian market, and cross-border transactions.
Phillip holds a Masters of Laws (Commercial Law) from Monash
University, a Bachelor of Laws (Hons) and Bachelor of Arts from Deakin
University.
Other Directorships in listed
entities:
Former Directorships in listed
entities in last 3 years:
None
None
Interests in shares and
options:
225,000 fully paid ordinary shares
500,000 Unlisted options exercisable $0.092, expiring 26 August 2023
133,333 Listed options exercisable $0.10, expiring 23 September 2023.
Dr Caedmon Marriott
Non-Executive Director (Appointed 7 January 2020, resigned 2 August
2021)
Experience and qualifications Caedmon Marriott has more than 18 years experience in the international
mining and exploration sector,
in various roles across mineral
exploration, fund management, mining project evaluation and corporate
finance. Caedmon is currently Managing Director at Aldoro Resources
Limited, an ASX listed Western Australia nickel and gold exploration
company. Caedmon’s previous experience includes establishing and
managing exploration programs in West Africa.
Caedmon also has significant experience as an mining analyst and
management of public and private equity investments in the resources
sector with JP Morgan Natural Resources Fund, Och-Ziff Capital
Management and GLG Global Mining Fund, as well as establishing
Firefinch Capital, a research, corporate finance and corporate broking
firm.
Caedmon graduated with MSci (Geological Sciences) and MA (Natural
Sciences – Geology) from University of Cambridge, has obtained a PhD
in Earth Sciences from University of Oxford and is also a Chartered
Financial Analyst.
Other directorships in listed
entities
Western Mines Group Ltd (ASX: WMG, appointed 26 March 2021)
Former Directorships in listed
entities in last 3 years:
Aldoro Resources Limited (ASX: ARN, appointed 20 November 2019,
resigned 25 November 2020)
Interests in Shares and
options:
Nil fully paid ordinary share.
1,000,000 Unlisted share options exercisable $0.092, expiring 26 August
2023.
24
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Mr Frank Cannavo
Non-Executive Director (appointed 2 August 2021)
Experience and qualifications Mr Cannavo is an experienced public company director with significant
business and investment experience working with companies operating
across various industries, including in particular mining exploration
companies, and has been instrumental in assisting several listed and
unlisted companies achieve their growth strategies through the raising of
investment capital and the acquisition of assets.
Mr Cannavo is an entrepreneur with a strong network of investors and
industry contacts in the public company sector throughout the Asia-
Pacific region and has extensive experience in capital raisings,
investment activities and IPOs.
Other Directorships in listed
entities:
Western Mines Group Ltd (ASX: WMG, appointed 6 November 2020)
Stemcell United Ltd (ASX: SCU, appointed 21 July 2021)
I-Global Holdings Limited (NSX: IGH, appointed 1 September 2017)
Former Directorships in listed
entities in last 3 years:
Interests in shares and
options:
WONHE Multimedia Commerce Ltd (ASX: WMC, resigned 1 September
2018)
Magnum Mining and Exploration Limited (ASX: MGU, resigned 10 March
2021)
10,100,000 fully paid ordinary shares
2,066,667 Listed options exercisable $0.10, expiring 23 September 2023
500,000 Unlisted options exercisable $0.15, expiring 24 January 2023
1,000,000 Unlisted options exercisable $0.092, expiring 26 August 2023
1,000,000 Unlisted options exercisable $0.10, expiring 30 September
2023.
Mr Grant Button
Non-Executive Director (appointed 2 August 2021)
Experience and qualifications Mr Button is a qualified accountant and has significant and other
commercial management and transactional experience. He has over 30
years of experience at a senior management level in the resource
industry. He has acted as a Managing Director, Execuive Director,
Finance Director, CFO and Company secretary for a range of publicly
listed companies. Most recently Mr Button has been Managing Director
of Magnum Mining & Exploration Limited, and previously held the position
of Executive Director of Sylvania Platinum Limited.
Other Directorships in listed
entities:
None
Former Directorships in listed
entities in last 3 years:
Magnum Mining and Exploration (ASX: MGU, resigned 10 March 2021)
Interests in shares and
options:
Nil
Other Key Management Personnel
Mr Lachlan Reynolds
Chief Executive Officer (Resigned 31 August 2020)
Experience and
qualifications
Mr Reynolds had a broad base of experience in resources both
internationally and in Australia. Mr Reynolds resigned as a director on 20
March 2020 and remained working with the Company until August 2020 on
a part-time basis as CEO.
25
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Company Secretary
Mr J Stedwell
Experience and
qualifications:
Company Secretary
Justyn Stedwell is a professional Company Secretary, with over 12 years’
experience as a Company Secretary of ASX-listed companies in various
industries including biotechnology, agriculture, mining and exploration,
information technology and telecommunications. Justyn’s qualifications
include a Bachelor of Commerce (Economics and Management) from
Monash University, a Graduate Diploma of Accounting at Deakin University
and a Graduate Diploma in Applied Corporate Governance at the
Governance Institute of Australia. He is currently Company Secretary at
several ASX-listed companies.
Meeting of Directors
The following table sets out the number of meetings of the Company’s Directors during the year ended 30 June
2021 and the number of meetings attended by each Director.
DIRECTOR
Mr Rhoderick Grivas
Mr Caedmon Marriott
Mr Phillip Grundy
Mr James Merrillees (Appointed 25 November 2020)
Principal Activities
BOARD
MEETING
Held
6
6
6
4
Attended
6
6
6
4
The Company owns several resource tenements in Western Australia and are actively exploring the tenements
for gold, nickel and cobalt and related resources.
Operating Results and Financial Position
During the year, the Company made a loss $1,229,773 (2020: $4,441,053). During the year the Company
appointed a Managing Director, James Merrillees, who undertook a review of existing projects in order to target
development of the projects The Company's activities are detailed in the Review of Operations prior to the
Directors’ Report.
During the year, the Company spent cash of $1,262,815 (2020: $802,317) on exploration activities and a net
outflow of $782,079 (2020: $746,932) on operational expenditure. The Company’s exploration assets are
recorded at $1,890,593 (2020: 604,792), with net assets at $2,731,639 (2020: $1,295,905). The Company’s
cash position at 30 June 2021 was $966,860 (2020: $624,725).
The Company acquired the Yarrambee Project in the Narndee Indignous Complex during the period, issuing
1,000,000 ordinary shares, plus 1,000,000 share options exercisable at $0.10 and expiring 2 years after issue,
and paid $60,000 as consideration.
The Company raised $2,553,191 from the issue of fully paid ordinary shares and share options before costs of
$257,878 ($146,716 paid by the issue of share options).
Dividends
During the year, the Company did not pay, or propose to pay, any dividends.
Significant Change in State of Affairs
On 23 July 2020 the Company announced that it had entered into a farm-in agreement granting Gateway Mining
Limited (ASX: GML) the right to acquire an interest of up to 80% in the Gidgee Project. The agreement is subject
to conditions precedent that are expected to be completed after the date of this report. The agreement removes
the current obligations for the Company to expend resources on the project, whilst ensuring the project is
advanced. Gateway Mining Ltd already operate tenements in the Gidgee area.
On 26 August the Company issued of 2.5 million share options to directors, as approved at an EGM on 13
August 2019, and 1.5 million share options to consultants under the Company’s Employee Option Plan. At the
26
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
EGM the issue of 3 million share options was also approved. The share options were issued to Sanlam Private
Wealth Pty Ltd for corporate advisory and capital raising services. The expense was recorded in the 2020
financial report.
On 1 September 2020 the Company announced the completion of the placement of ordinary shares to
sophisticated and professional investors. As a result, 22,295,665 ordinary shares were issued at $0.05 per
share, raising $1,114,783 before costs. Sanlam Wealth Pty Ltd provided capital raising services and received
4 million share options as part of their service fees.
On 25 September the Company announced completion of its Share Purchase Plan, raising 577,000 through the
issue of 11,540,000 shares at $0.05 (before costs).
On 11 March 2021 the Company announced the completion of a capital raising of $800,000 before costs, with
the issue of 16 million fully paid ordinary shares at $0.05 per share. One free attaching option was issued with
every 2 ordinary shares issued. The options are exercisable at $0.10 and expire on 23 September 2023.
In March 2021 the Company announced a Loyalty Options Entitlement Issue. The issue entitled shareholders
to subscribe $0.005 for 1 share option for every 6 shares held. The Loyalty Options raised $61,408 after costs.
A total of 13,739,944 options were issued as part of the Issue.
On 7 May 2021 the Company announced that it had completed the acquisition of the Yarrambee Project from
Nemex Pty and Legend Resources Pty Ltd. The consideration paid per the acquisition agreement was:
-
-
-
1,000,000 fully paid ordinary shares, issued on 5 May 2021;
1,000,000 options, with each option having an exercise price of $0.10 per share and which are
exercisable within 2 years of their date of issue, issued on 5 May 2021; and
$60,000 cash.
The Yarrambee Project consists of five exploration licences in the Narndee Indigenous Complex in the Eastwern
Goldfields of Western Australia. The Project licences cover a total area of 817.92km2 and was granted on 30
April 2021 for a period of 5 years.
After Balance Date Events
400,000 share options originally issued to consultants employed by the Company expired on 1 August 2021.
On 4 August 2021 Caedmon Marriott resigned as a Director of the Company, whilst Frank Cannavo and Grant
Button were appointed to the Board as Non-Executive Directors.
On 24 August 2021, the Company issued 1,000,000 fully paid ordinary shares and 500,000 share options, with
an exercise price of $0.10 and expiring on 23 September 2023. The shares were issued at $0.05, and the share
options were free attaching options to the shares subscribed. These shares were initially announced in March
2021 with the Loyalty Options Entitlement and were ratified at the Company’s Extraordinary General Meeting
(“EGM”) held on 27 July 2021.
The Directors participated in the issue, and the issue of the shares and free attaching options were subject to
the shareholder approval, which was received at the 27 July EGM. The Company also issued 166,665 listed
share options to Directors, on the same terms as the Company’s non-renounceable entitlement issue of Options
as approved by the Company’s shareholders at the 27 July EGM. The options were issued for $0.005 per option.
The directors subscribed to the issue as follows:
- Rhoderick Grivas
- Phillip Grundy
-
James Merrillees
400,000 shares, with 200,000 free attaching options. 66,666 listed share
options.
200,000 ordinary shares, with 100,000 free attaching options. 33,333 listed
share options.
200,000 ordinary shares, with 100,000 free attaching options. 33,333 listed
share options.
In addition, 1,000,000 unlisted share options, exercisable at $0.088 and expiring on 24 August 2024 were
issued. These options were issued pursuant to James Merrillees’ employment agreement and were ratified at
the 27 July 2021 EGM.
On 9 September 2021 the Company announced completion of a capital raising of $1,600,000 before costs,
issuing 32 million ordinary shares at $0.05 with one free attaching option for every four shares subscribed for.
27
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
The options are subject to approval at the next General Meeting of shareholders. Frank Cannavo, a director of
the Company subscribed for shares in the raising, and these will also be subject to approval at a General
Meeting. A further 3,500,000 share options were issued for lead manager services provided in this capital raise.
Other than the matters noted above, the Board is not aware of any matter or circumstance not otherwise dealt
with in these financial statements that has significantly or may significantly affect the operation of the Company,
the results of those operations, or the state of affairs of the Company in subsequent financial years.
Future Developments
The Company’s strategic focus remains the development of its exploration assets in Western Australia. Initial
focus is on fast-tracking exploration at the Yarrambee project. Further metallugical testing is to be carried out
at Quicksilver in order to extract value from the project that has had significant amounts of exploration work
carried out previously. The Company will continue to develop its other projects with drilling planned at Yuinmery,
and further sampling at Darlot, Ironstone Well and Benalla, with drilling to follow based on the sample results.
COVID-19 Pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had,
or may have, on the Company based on known information, with associated impacts addressed in specific notes
in the financial statements.
Indemnity and Insurance of Officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity
as a director or executive, for which they may be held personally liable, except where there is a lack of good
faith. During the financial year, the Company paid a premium in respect of a contract to insure the directors
and officers of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of liability and the amount of the premium.
Indemnity and Insurance of Auditor
The Company has not, during or since the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor. During the financial year, the Company
has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.
Environmental Issues
The Company’s activities involve exploration activities on WA mining tenements and therefore would be subject
to the WA laws and regulations relating to such activities including environmental approvals as may be required
from time to time under the Mining Act 1978.
Shares under Option or Issued on Exercise of Options
At the date of this report the Company had 37,406,609 shares under option, with a further 11,500,000 to be
issued once approved by shareholders, as follows: -
Grant Date
Date of expiry Exercise price
25/09/2019(i)
23/09/2019(ii)
24/01/2021(iii)
26/08/2020(iv)
30/09/2020(iii)
5/05/2021(v)
17/11/2020(i)
11/03/2021(vi)
26/03/2021(vii)
27/07/2021(vii)
27/07/2021(viii)
9/09/2021(ix)
29/11/2023
23/09/2022
24/01/2023
26/08/2023
30/09/2023
05/05/2023
24/08/2024
23/09/2023
23/09/2023
23/09/2023
23/09/2023
23/09/2023
$0.23
$0.10
$0.15
$0.092
$0.10
$0.10
$0.088
$0.10
$0.10
$0.10
$0.10
$0.05
Number on
issue
1,000,000
1,000,000
3,000,000
4,000,000
4,000,000
1,000,000
1,000,000
13,739,944
8,000,000
500,000
166,665
11,500,000
Number
escrowed
-
-
-
-
-
-
-
-
-
Escrow date
-
-
-
-
-
-
-
-
-
(i)
(ii)
(iii)
(iv)
Granted to Key Management Personnel as part of contracted remuneration package during the prior periods.
Issued as part of consideration for exploration asset.
Issued to Sanlam Private Wealth Pty Limited for services provided in capital raise.
Granted to Directors and consultants as part of their equity-based remuneration.
28
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
(v)
(vi)
(vii)
(viii)
(ix)
Granted to Bruce Legendre upon acquisition of project.
Loyalty options issued at $0.005 per option.
Granted as free option attaching to ordinary shares subscribed.
Director options issued at $0.05 per option.
8,000,000 share options granted as a free attaching option, 3,500,000 share options issued to the lead manager, subject to
shareholder approval.
Share options do not provide the holder with the same rights as shareholders. Share options do not provide
the rights to participate in rights issues, dividends, or enable the holder to vote at General Meetings.
Proceedings on Behalf of the Company
No person has applied for leave of the Court under Section 327 of the Corporations Act 2001 to bring
proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company
was not a party to any proceedings during the year.
REMUNERATION REPORT (AUDITED)
The remuneration report, which has been audited, outlines the Director and executive remuneration
arrangements for the Company, in accordance with the requirements of the Corporations Act 2001 and its
Regulations.
A. Principles Used to Determine the Nature and Amount of Remuneration
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the
Company must attract, motivate and retain highly skilled Directors and Executives. To that end, the Company
embodies the following principles in its remuneration framework:
•
•
•
Provide competitive rewards to attract high calibre executives;
Focus on creating sustained shareholder value;
Placing a portion of executive remuneration at risk, dependent upon meeting predetermined performance
benchmarks; and
Differentiation of individual rewards commensurate with contribution to overall results and according to
individual accountability, performance and potential.
•
The Board’s policy for determining the nature and amount of remuneration for Key Management Personnel
(“KMP”) for the Company is based on the following:
- The remuneration policy is to be developed and approved by the Board after professional advice is sought
from independent external consultants (where applicable).
- All executive KMP receive a base salary (which is based on factors such as length of service and
experience), superannuation, fringe benefits and performance incentives, where appropriate.
- Performance incentives (in the form of a cash bonus) are generally only paid once predetermined key
performance indicators (KPIs) have been met.
- Apart from those detailed in this report no other share based/options incentives have been offered to KMP
during this reporting financial year.
- The Board, which also serves as the remuneration committee, reviews the remuneration packages
annually by reference to the Company’s performance, executive performance and comparable information
from industry sectors.
All remuneration paid to KMP is valued at the cost to the Company and expensed.
KMP or closely related parties of KMP are prohibited from entering hedge arrangements that would have the
effect of limiting the risk exposure relating to their remuneration. In addition, the Board’s remuneration policy
prohibits Directors and KMP from using the company’s shares as collateral in any financial transaction.
Engagement of remuneration consultants
During the year, the Company did not engage any remuneration consultants.
29
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration Structure
The structure of Non-Executive Director, Executive Director and Senior Manager remuneration is separate and
distinct.
Non-Executive Director Remuneration
The Board’s policy is to remunerate Non-Executive Directors at market rates for time, commitment and
responsibilities. The Board determines payments to the non-executive directors and reviews their remuneration
annually, based on market practice, duties and accountability. Independent external advice is sought when
required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to
approval by shareholders.
Each Director receives a fee for being a Director of the Company.
Senior Management and Executive Director Remuneration
The Company aims to reward Executives with a level and mix of remuneration commensurate with their position
and responsibilities within the Company to:
Reward Executives for company, business unit and individual performance against targets set by
reference to appropriate benchmarks;
Align the interests of Executives with those of shareholders;
Link reward with the strategic goals and performance of the Company;
Ensure total remuneration is competitive by market standards; and
Executive remuneration is designed to support the Company’s reward philosophies and to underpin the
Company’s growth strategy. The program comprises the following available components:
•
•
Fixed remuneration component; and
Variable remuneration component including cash bonuses paid.
Fixed Remuneration
The level of fixed remuneration is set to provide a base level of remuneration which is both appropriate to the
position and is competitive in the market. The fixed (primary) remuneration is provided in cash.
Variable Remuneration
The performance of KMP is measured against criteria agreed annually with each Executive. All bonuses and
incentives must be linked to predetermined performance criteria. The policy is designed to attract the highest
calibre of executives and reward them for performance results leading to long-term growth in shareholder
wealth.
The objective of the Short-Term Incentive (“STl”) program is to link the achievement of the Company’s
operational targets with the remuneration received by the executives charged with meeting those targets. The
total potential STI available is set at a level to provide sufficient incentive to achieve the operational targets and
such that the cost to the Company is reasonable.
Actual STI payments granted depend on the extent to which specific operating targets are met. The operational
targets consist of a number of Key Performance Indicators (KPIs) covering both financial and non-financial
measures of performance.
On an annual basis, the individual performance of each executive is rated and taken into account when
determining the amount, if any, of the short-term incentive pool allocated to each executive. The aggregate of
annual STI payments available for executives across the Company are usually delivered in the form of a cash
bonus.
30
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
B. Details of Remuneration
Details of the remuneration of the Directors, other key management personnel (defined as those who have the
authority and responsibility for planning, directing and controlling the major activities of the Company) are set
out in the tables on pages 37 and 38.
Key Management Personnel - Directors and Executives
The key management personnel (“KMP”) of the Company consisted of the following Directors and executives
during the year:
Non-Executive Directors
Rhoderick Grivas
Phillip Grundy
Caedmon Marriott
Executive Director
James Merrilles
Other KMP
Lachlan Reynolds
Non-Executive Chairman
Non-Executive Director
Non-Executive Director (Appointed 7 January 2021, resigned 2 August 2021)
Chief Executive Officer and Director (Appointed 25 November 2020)
Chief Executive Office (Resigned August 2020)
Key Management Personnel – Service Agreements
Employment contracts – James Merrillees
The key terms of the contract are as follows:
-
-
-
-
-
-
Position of Executive Managing Director;
Salary of $220,000 per annum, plus superannuation and other benefits;
1,000,000 share options vesting six months after commencement, exercisable at a price that is 150% of
the 20 day VWAP prior to date of issue of the Options;
1,000,000 share options vesting 18 months from commencement, exercisable at a price that is 175% of
the 20 day VWAP prior to date of issue of the Options;
Vesting of all options dependent upon continued employment with the Company at vesting date;
Commenced on 25 November 2020 with no fixed term.
Employment contracts – Lachlan Reynolds
The key terms of the contract are as follows:
-
-
-
Position of Chief Executive Officer (part-time);
Salary of $110,000 per annum, plus superannuation and other benefits;
Initial contract commenced on 23 September 2018 with no fixed term, varied on 31 March 2020 to insert
a notice period to 31 August 2020 working on a part time basis.
- Mr Reynolds’ contract was terminated at the end of the notice period on 31 August 2020.
Non-Executive Director Service Agreement – Rhoderick Grivas
The key terms of the contract are as follows:
Position of Non-Executive Chairman;
Salary of $65,700 per annum, inclusive of superannuation;
Commenced on date Company admitted to the ASX, being 19 June 2017 with no fixed term; and
Agreement can be terminated in writing by either party or by mutual consent.
-
-
-
-
Non-Executive Director Service Agreement – Phillip Grundy
The key terms of the contract are as follows:
-
-
-
-
Position of Non-Executive Director;
Salary of $40,000 per annum, inclusive of superannuation;
Commenced on date Company admitted to the ASX, being 19 June 2017 with no fixed term; and
Agreement can be terminated in writing by either party or by mutual consent.
Non-Executive Director Service Agreement – Caedmon Marriott
The key terms of the contract are as follows:
-
-
-
-
Position of Non-Executive Director;
Salary of $40,000 per annum, inclusive of superannuation;
Commenced on 7 January 2020 with no fixed term;
Agreement terminated 2 August 2021
31
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Details of Remuneration for the year ended 30 June 2021
The individual remuneration for key management personnel of the Company during the year was as follows:
SHORT TERM EMPLOYMENT BENEFITS
Leave
Cash Salary
provision
and Fees
$
$
Cash
Bonus
POST
EMPLOYMENT
Superannuation
Contributions
$
EQUITY BASED
PAYMENTS
TOTAL
Shares
$
Options
$
$
Non – Executive
Directors
Rhoderick Grivas (i)
Phillip Grundy
Caedmon Marriott (i)
Sub-Total
Executive
Directors
James Merrillees (ii)
Lachlan Reynolds
(iii)
Sub-Total
74,989
41,996
42,000
158,985
131,825
18,667
150,492
-
-
-
-
9,493
1,608
11,101
309,477
11,101
-
-
-
-
-
-
-
-
-
-
-
12,523
2,612
15,135
15,135
-
-
-
-
-
-
-
-
33,973
16,985
33,973
84,931
39,488
-
108,962
58,981
75,973
243,916
193,329
22,887
39,488
216,216
124,419
460,132
Total
(i)
(ii)
(iii)
Rhoderick Grivas invoiced all fees through Goodheart Pty Ltd. Fees for the year include an additional $6,000 consulting
fees that were capitalised into exploration and evaluation assets during the year.
Caedmon Marriott invoiced Director fees through Nomad Exploration Pty Ltd, a company he is a director of.
James Merrillees was appointed during the year. Share based payments relate to shares and share options granted as part
Mr Merrillees’ employment contract and contain vesting conditions relating to service periods.
(iv)
Lachlan Reynolds ceased employment with the Company during the year.
Details of Remuneration for the period ended 30 June 2020
The individual remuneration for key management personnel of the Company during the period was as follows:
SHORT TERM EMPLOYMENT BENEFITS
Leave
Cash Salary
provision
and Fees
$
$
Cash
Bonus
POST
EMPLOYMENT
Superannuation
Contributions
$
EQUITY BASED
PAYMENTS
TOTAL
Shares
$
Options
$
$
Non – Executive
Directors
Rhoderick Grivas
Phillip Grundy
Caedmon Marriott (i)
Sub-Total
Executive
Directors
Lachlan Reynolds
Sub-Total
Total
(i)
62,419
37,997
17,355
117,771
-
-
-
-
192,500
192,500
(1,447)
(1,447)
310,271
(1,447)
-
-
-
-
-
-
-
-
-
-
18,288
18,288
18,288
-
-
-
-
-
-
-
-
-
-
-
62,419
37,997
17,355
117,771
18,688
18,688
228,029
228,029
18,688
345,800
Caedmon Marriott invoiced Director fees through Nomad Exploration Pty Ltd, a company he is a Director of. Payments
include additional fees for geological services.
32
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Bonuses included in remuneration
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed
remuneration
2021
At risk -
STI
At risk – LTI
Fixed
remuneration
At risk - STI
At risk – LTI
2020
Non-Executive
Directors
Rhoderick Grivas
Phillip Grundy
Caedmon Marriott
Executive
Directors
James Merrillees
Lachlan Reynolds
69%
71%
55%
80%
100%
-
-
-
-
31%
29%
45%
20%
-
100%
100%
100%
92%
-
-
-
-
-
-
-
8%
C. Share Based Compensation
During the year the Company granted share options to the CEO under the terms of the employment contract.
The share options granted were as follows:
No. of options
Exercise Price
Vesting period
Expiry
Tranche 1 Options
1,000,000
$0.088 per option*
Tranche 2 Options
1,000,000
$0.103 per option**
6 months from the date
of issue of the
Incentive Options
18 months from date of
issue of the Incentive
Options
24 August 2024
24 August 2024
* Exercise price is 150% 20-day VWAP prior to date of issue of the Options. Options have vested and been issued at the date of this report.
** Exercise price is 175% 20-day VWAP prior to date of issue of the Options. Exercise price may vary on date of issue.
In addition, share options were granted to Non-Executive Directors during the year, with the following terms:
No. of options
Exercise Price
Vesting period
Expiry
R Grivas
1,000,000
$0.092 per option*
Immediate
26 August 2023
P Grundy
500,000
$0.092 per option*
Immediate
26 August 2023
C Marriott
1,000,000
$0.092 per option*
Immediate
26 August 2023
* Exercise price is 150% 30-day VWAP prior to date of issue of the Options
Issue of the options was approved by shareholders at an Extraordinary General Meeting held 13 August 2020.
33
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
D. Additional Information
Relationship between remuneration policy and Company performance
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The chosen method to achieve this aim is providing shares and share options to link future benefits
to the performance of the Company’s share price. The Company believes this policy will be effective in
increasing shareholder’s wealth. The earnings of the Company for the reporting periods to 30 June 2021 are
summarised below, along with details that are considered to be factors in shareholder returns:
Income
Net profit /(loss) after tax $
30 June
2017
1,085
(412,719)
30 June
2018
47,508
(835,995)
30 June
2019
14,648
(964,005)
30 June
2020
54,376
(4,441,053)
30 June
2021
434
(1,229,773)
Share price at year end $
Net tangible assets per share $
0.18
0.08
0.45
0.08
0.05
0.07
0.059
0.02
0.050
0.02
E. Additional Information in relation to key management personnel shareholdings
Ordinary shares held in Golden Mile Resources Limited (number) 30 June 2021
Balance 1
July 2020
Granted as
payment of
Remuneration
On-market
changes
Off-market
changes
Other
changes
Balance
30 June 2021
Directors
James Merrillees (i)
Rhoderick Grivas
Phillip Grundy
Caedmon Marriott
Lachlan Reynolds (ii)
-
124,750
25,000
-
107,483
257,233
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(107,483)
(107,483)
-
124,750
25,000
-
-
149,750
(i)
(ii)
Appointed during the year
Resigned as a director during the previous year, but remained as Key Management Personnel until 31 August 2020.
Share options held in Golden Mile Resources Limited (number) 30 June 2021
Balance 1
July 2020
Granted as
Remuneration
Options
converted
Other
changes
Balance
30 June
2021
Directors
James Merrillees1
Rhoderick Grivas
Phillip Grundy
Caedmon Marriott
Lachlan Reynolds2
-
-
-
-
1,000,000
1,000,000
2,000,000
1,000,000
500,000
1,000,000
-
4,500,000
1. Appointed during the year
2. Resigned during the year
F. LOANS FROM KMP
There are no loans to or from KMP.
-
-
-
-
-
-
- 2,000,000
- 1,000,000
-
500,000
- 1,000,000
(1,000,000)
-
(1,000,000) 4,500,000
Vested
1,000,000
1,000,000
500,000
1,000,000
-
3,500,000
34
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
G. OTHER TRANSACTIONS WITH KMP
Other than the Key Management Personnel disclosures noted above, the following transactions were completed
with related parties during the year: -
Moray and Agnew (i)
Nomad Exploration Pty Ltd (ii)
Aldoro Resources Limited (iii)
Western Mines Group Ltd (iv)
Expenses
during
year
26,258
40,740
-
-
Invoiced
during year
Balance
receivable
at 30 June
-
-
8,599
2,550
-
-
-
935
Balance
payable at
30 June
1,100
4,063
-
-
(i)
(ii)
(iii)
(iv)
Phillip Grundy is a partner at Moray and Agnew. Moray & Agnew provided legal and consulting services
related to compliance matters.
Caedmon Marriott is a Director of Nomad Exploration Pty Ltd, who provided exploration and support services
during the year. The balance payable at 30 June 2021 related to an outstanding invoice for Director fees, plus
a reimbursement of fees for storage rental, and included GST.
Caedmon Marriott and Rhod Grivas were directors of Aldoro Resources Limited. During the year Aldoro
Resources Ltd shared office space with the company and were recharged rent.
Caedmon Marriott is a director of Western Mines Group Limited. During the year Western Mines Group Ltd
shared office space with the company and was recharged rent.
This concludes the remuneration report, which has been audited.
Non-Audit Services
During the prior year HLB Mann Judd, the Company’s auditor, performed certain other services in addition to
their statutory duties. The Directors were satisfied that the provision of these non-audit services by the auditor
(or by another person or firm on the auditor’s behalf) was compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001. Details of amounts paid or payable are as follows:
Auditing the financial report
Non-audit services
- Tax compliance services
2021
$
28,653
6,000
34,653
2020
$
34,188
-
34,188
The Directors were of the opinion that the services as disclosed above did not compromise the external auditor’s
independence for the following reasons:
• All non-audit services were reviewed and approved by the Board to ensure that they did not impact the
integrity and objectivity of the auditor, and
• None of the services undermined the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants issued by the Accounting Profession and Ethical
Standards Board, including reviewing or auditing the auditor’s own work, acting in a management or
decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing
economic risks and rewards.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
is included at page 43 of the Annual Report.
Auditor
HLB Mann Judd continues in accordance with section 327 of the Corporations Act 2001. There are no officers
of the Company who are former audit partners of HLB Mann Judd.
35
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ REPORT
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors
support the principles of Corporate Governance. The Company continued to follow best practice
recommendations as set out by the ASX Corporate Governance Council. Where the Company has not followed
best practice for any recommendation, explanation is given in the Corporate Governance Statement. The
Company’s Corporate Governance
the Company’s website at
https://www.goldenmileresources.com.au/.
is available on
statement
Signed in accordance with a resolution of the Directors made pursuant to s.298 (2) of the Corporations Act
2001.
On behalf of the Directors
Mr R Grivas
Non-Executive Chairman
30 September 2021
36
Auditor’s independence declaration
As lead auditor for the audit of the financial report of Golden Mile Resources Limited for the year
ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation
to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
HLB Mann Judd
Chartered Accountants
Melbourne
30 September 2021
Jude Lau
Partner
37
GOLDEN MILE RESOURCES LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Continuing operations
Interest income
Government income
Exploration expenditure expensed
Loss on disposal of exploration assets
Impairment of exploration assets
Directors’ fees and salaries and wages
General and administrative expenses
Corporate expenses
Other expenses
Loss before income tax
Income tax expense
Net Loss for the year
Other Comprehensive income/(loss)
Other comprehensive loss net of tax
Total comprehensive loss
Note
2021
$
2020
$
4
2(a)
8(b)
8(b)
9
434
-
892
53,484
(286,003)
-
(80,135)
(454,132)
(133,536)
(239,477)
(36,924)
(1,229,773)
-
(1,229,773)
(31,489)
(71,787)
(3,687,379)
(345,800)
(142,744)
(190,327)
(25,903)
(4,441,053)
-
(4,441,053)
-
-
(1,229,773)
(4,441,053)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
14
14
(1.02)
(1.02)
(6.58)
(6.58)
The above statement should be read in conjunction with the accompanying notes.
38
GOLDEN MILE RESOURCES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
STATEMENT OF FINANCIAL POSITION
Current Assets
Cash and cash equivalents
Trade and other receivables
Prepayment
Total Current Assets
Non-Current Assets
Exploration and evaluation assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
Note
3(a)
4
2021
$
2020
$
966,860
71,297
18,737
624,725
52,049
19,636
1,056,894
696,410
2
1,890,593
604,792
1,890,593
604,792
2,947,487
1,301,202
5
6
7
206,355
9,493
215,848
215,848
32,694
8,603
41,297
41,297
2,731,639
1,259,905
9,619,308
(7,753,330)
865,661
2,731,639
7,459,602
(6,545,487)
345,790
1,259,905
The above statement should be read in conjunction with the accompanying notes.
39
GOLDEN MILE RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF CHANGES IN EQUITY
At 1 July 2019
6,497,235
303,635
(2,212,967)
4,587,903
Issued capital Reserves Accumulated
Total
$
$
losses
$
$
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners in
their capacity as owners:
Issue of shares, net of costs
Share based payments
Issue of shares for purchase of
exploration assets
Expiry of share options
-
-
-
-
-
(4,441,053)
-
(4,441,053)
-
-
(4,441,053)
(4,441,053)
6
7
882,367
-
120,000
18,688
-
-
1,002,367
18,688
80,000
-
12,000
(108,533)
-
108,533
92,000
-
As at 30 June 2020
7,459,602
345,790
(6,545,487)
1,259,905
At 1 July 2020
7,459,602
345,790
(6,545,487)
1,259,905
Issued capital Reserves Accumulated
Total
$
$
losses
$
$
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners in
their capacity as owners:
Issue of shares, net of costs
Issue of share options
Issue of shares for purchase of
exploration assets
Share based payments
Expiry of share options
-
-
-
-
-
(1,229,773)
-
(1,229,773)
-
-
(1,229,773)
(1,229,773)
6
6
6, 7
7
7
2,070,706
-
91,715
224,608
-
-
2,162,421
224,608
89,000
-
-
50,100
175,378
(21,930)
-
-
21,930
139,100
175,378
-
As at 30 June 2021
9,619,308
865,661
(7,753,330)
2,731,639
The above statement should be read in conjunction with the accompanying notes.
40
GOLDEN MILE RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
STATEMENT OF CASH FLOWS
Cash flows from operating activities
Government grants received
Payments to suppliers and employees
Interest received
Note
2021
$
2020
$
35,957
(818,470)
434
24,207
(772,031)
892
Net cash (used in) operating activities
3(d)
(782,079)
(746,932)
Cash flows from investing activities
Receipts for disposal of exploration and evaluation
assets
Exploration and evaluation expenditure
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Cost of issuing shares
Proceeds from issue of share options
Net cash provided by financing activities
-
(1,262,815)
45,000
(802,317)
(1,262,815)
(757,317)
2,328,583
(166,162)
224,608
1,073,550
(71,183)
-
2,387,029
1,002,367
Net increase / (decrease) in cash held
342,135
(501,882)
Cash and cash equivalents at the beginning of the
year
624,725
1,126,607
Cash and cash equivalents at the end of the year
3(a)
966,860
624,725
The above statement should be read in conjunction with the accompanying notes.
41
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
1.
BASIS OF PREPARATION
These financial statements are general purpose financial statements that have been prepared in
accordance with Australian Accounting Standards, Australian Accounting Interpretations and the
Corporations Act 2001, as appropriate for-profit oriented entities.
The financial statements cover the Company for the year ended 30 June 2021. The Company is a
company limited by shares, incorporated and domiciled in Australia.
Except for the Statement of Cash Flows, the financial statements have been prepared on the accruals
basis.
The financial statements were authorised for issue by the Directors on 30 September 2021.
The Company’s principle activities are the exploration for and evaluation gold and other related resources
in Western Australia.
(a) Basis of Preparation of the Financial Statements
Compliance with IFRS
The financial statements comply with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Historical Cost Convention
The financial statements have been prepared under the historical cost convention, modified where
appropriate by the measurement of fair value of selected non-current assets. All amounts are
presented in Australian dollars unless otherwise noted.
(b) Comparatives
Where necessary, comparative information has been reclassified and repositioned for consistency
with current year disclosures.
(c) Going Concern
During the year the Company made losses of $1,229,733 (2020: $4,441,053) and spent a net $2,044,894
(2020: $1,504,249) on exploration and corporate activities. At 30 June 2021 the Company had cash
reserves of $966,860 (2020: $624,725) and net current assets, being current assets less current liabilities,
of $841,046 (2020: $655,113). The Company also has exploration commitments in the next 12 months
of $865,676 (2020: $703,550).
The financial report has been prepared on a going concern basis which assumes the realisation of assets
and discharge of liabilities in the normal course of business at the amounts stated in the financial report,
for the following reasons:
- Subsequent to the year end the Company has completed a share placement raising $1.6 million
before costs.
- The Company will seek shareholder approval at the upcoming AGM to refresh its capacity to raise
additional capital without shareholder approval under ASX Listing Rules 7.1 and 7.1A. The Company
has a history of successfully raising funds.
- The Company has established exploration programs and have budgeted for cash flow requirements
for the 12 months from the date of this report. The cash available at the date of the report are sufficient
to meet the cash flows forecast. Where necessary, the Company can reduce or redirect planned
project expenditure to manage its cash flows to ensure it meets its obligations as and when they fall
due, as well as progress its projects effectively.
In preparing the cash flow forecasts the directors have considered the current and on-going disruption
arising from state and federal government actions in relation to the COVID-19 pandemic. COVID-19
safety protocols have been implemented, and operations in Western Australia have largely been
unaffected and management will continue to monitor the situation. The directors are confident they are
equipped to meet the challenges presented as they arise.
42
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Notwithstanding the above, the directors have prepared the financial statements on a going concern
basis, which contemplates the continuity of normal business activity, the realisation of assets and the
settlement of liabilities through the normal course of business and are confident that the Company will
achieve the necessary funding to meet the Company’s financial requirements over the next 12 months.
On the basis that sufficient funding is available to meet the Company’s expenditure forecast for the next
12 months, the directors consider that the Company remains a going concern and these financial
statements have been prepared on this basis.
Should the Company be unable to continue as a going concern it may be required to realise its assets
and discharge its liabilities other than in the normal course of business and at amounts different to those
stated in the financial statements. The financial statements do not include any adjustments relating to
the recoverability and classification of asset carrying amounts or the amount of liabilities that might be
necessarily incurred should the Company be unable to continue as a going concern and meet its debts
as and when they fall due.
2.
EXPLORATION AND EVALUATION ASSETS
(a) Reconciliation of movements during year
Costs carried forward in respect of areas of interest
at cost
Assets acquired
Exploration and evaluation expenditure capitalised
during the year
Disposals
Funds received
Impairment (e)
Costs carried forward in respect of areas of interest
(b) New Projects
2021
$
2020
$
604,792
1,704
3,625,402
116,581
1,364,232
-
-
(80,135)
666,975
(101,787)
(15,000)
(3,687,379)
1,890,593
604,792
During the year the Company acquired the rights to apply for 5 tenements in the Narndee-Igneous
Complex, the “Yarrambee Project”. The key terms of the Sale and Purchase Agreement were:
- Payment of $60,000 in cash consideration;
-
-
- Granting a 1.0% smelting royalty to the vendors.
Issuing 1,000,000 ordinary shares to the vendors on completion;
Issuing 1,000,000 share options to the vendors; and
The acquisition was settled in May 2021. As the acquisition was for the right to apply for the permits within
the project, the costs were expensed through profit or loss, in accordance with the Company’s accounting
policy and AASB 6. The total expense for the acquisition was $199,100, with application costs of $7,900
incurred in applying for the licences.
(c) Significant Accounting Policies
Exploration and evaluation expenditures incurred are accumulated in respect of each identifiable area of
interest. These costs are only capitalised to the extent that they are expected to be recouped through
the successful development of the area or sale, or where exploration and evaluation activities in the area
have not yet reached a stage which permits reasonable assessment of the existence of economically
recoverable reserves and active and significant operations in, or in relation to, the area of interest are
continuing.
Accumulated costs in relation to an abandoned area are written off in full against profit/(loss) in the year
in which the decision to abandon the area is made. In addition, a provision is raised against exploration
and evaluation expenditure where the directors are of the opinion that the carried forward cost may not
be recoverable. Any such provision is charged against the results for the year.
When production commences, the accumulated costs for the relevant area of interest are amortised over
the life of the area according to the rate of depletion of the economically recoverable reserves.
43
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest. Expenditure is not carried forward in respect of
any area of interest/mineral resource unless the Company’s rights of tenure to that area of interest are
current.
Costs of site restoration are provided over the life of the facility from when exploration commences and
are included in the costs of the relevant stage. Provisions are made for the estimated costs of restoration
relating to areas disturbed during the mines operation up to reporting date but not yet rehabilitated. 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 relevant clauses of the
mining permits. Such costs have been determined using estimates of future costs, current legal
requirements and technology on a discounted basis.
Any changes in the estimates of the costs are accounted for on a prospective basis. In determining the
costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly, the costs have been determined on the
basis that any restoration will be completed within one year of abandoning the site.
(d) Critical Judgements
The ultimate recoupment of capitalised expenditure in relation to each area of interest is dependent on
the successful development and commercial exploitation or, alternatively, sale of the respective areas
the results of which are still uncertain.
(e) Commitments for expenditure
To maintain current rights of tenure to the exploration tenements, the Company is required to meet the
minimum expenditure requirements of the Department of Mines and Petroleum. Minimum expenditure
commitments may otherwise be avoided by sale, farm out or relinquishment. These obligations are not
provided in the accounts. The Company has committed to spend a total of $2,628,790 (2020: $703,550)
over the years of the granted permit areas in respect of these exploration programs. Expenditure
commitment is for the term of the permit renewal. The total commitment in relation to the permits is as
follows: -
Expenditure commitments within 1 year
Expenditure commitments 2 – 5 years
(f) Impairment
2021
$
865,676
1,763,114
2,628,790
2020
$
453,130
250,420
703,550
At 30 June 2021 the Company reviewed its projects and its available resources. The planned focus
remains on the Yuinmery, Darlot, Ironstone Well and Leonora East projects, as well as the Yarrambee
project acquired during the year. Accordingly, all expenditure on other projects has been written off to
profit or loss.
The Directors have considered the on-going impact of the COVID-19 pandemic. Based on information
currently available the Directors believe there is no further impact on the impairment of the assets.
3.
CASH AND CASH EQUIVALENTS
(a) Cash and cash equivalents
Cash at bank
(b) Significant Accounting Policies
2021
$
966,860
2020
$
624,725
Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original
maturity of three months or less held at call with financial institutions, and bank overdrafts.
44
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(c) Financial Instrument Risk Management
The Company manages its exposure to key financial risks relating to cash and cash equivalents in
accordance with its financial risk management policy. The objective of the policy is to support the delivery
of the Company’s financial targets whilst protecting future financial security.
The main risks arising from cash and cash equivalents is interest rate risk. The Directors manage risk by
monitoring levels of exposure to interest rate and consider cash requirements in relation to ongoing cash
flow budgets.
Interest Rate Risk
Exposure to interest rate risk arises on financial instruments whereby a future change in interest rates
will affect future cash flows of variable rate financial instruments. At 30 June 2021, the Company had
variable rate deposits of $948,943 earning interest of 0.01% per annum (2020: $585,673 at 0.05%). The
risk attached to the interest income for the year ended 30 June 2021 was not significant.
Credit Risk
The Company banks with Westpac and considers the bank’s credit worthiness appropriate to mitigate
credit risk associated to the bank deposits. Westpac’s credit rating is A+ (previously AA-). Credit risk is
managed by the Board in accordance with its policy. The Board is satisfied that banking with an institution
with A+ credit rating sufficiently mitigates credit risk attached to cash deposits.
Fair value
The fair value of the cash balances approximates fair value due to the short-term nature of the deposits.
(d) Reconciliation of operating cash flows to operating
result
Operating loss after income tax:
Share based payments
Impairment of non-current assets
Loss on disposal of non-current assets
Change in net operating assets and liabilities:
(Increase) in receivables
Decrease in prepayments
Increase / (decrease) in trade and other payables relating to
operating expenditure
Increase / (decrease) in provisions
Net cash inflow/(outflow) from operating activities
4.
TRADE AND OTHER RECEIVABLES
Government grant (i)
Rent recharge
GST recoverable
Other
GST recoverable
(i) Government Grants
2021
$
2020
$
(1,229,773)
(4,441,053)
314,478
80,135
-
18,688
3,687,379
71,787
(19,248)
899
(21,580)
23,839
70,540
890
(84,545)
(1,447)
(782,079)
(746,932)
2021
$
-
935
63,103
7,259
2020
$
35,957
1,287
12,192
2,613
71,297
52,049
The Company received the remaining Cash Flow Boost contributions as part of the Government’s
stimulus package in response to the COVID-19 pandemic during the year. The total amount of the cash
flow boost income for the year ended 30 June 2020 was $53,484 with $35,957 received during the current
year.
45
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(a) Significant Accounting Policies
Other receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any provision for impairment. Receivables expected to collected within
12 months are classified as current assets. All other receivables are classified as non-current assets.
(b) Financial Instrument Risk management
Amounts are recoverable from the ATO and credit risk is considered low. No risk management policy is
in place.
5.
TRADE AND OTHER PAYABLES
Trade payables
Accruals and other payables
(a) Significant Accounting Policies
2021
$
90,313
116,042
206,355
2020
$
5,930
26,764
32,694
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Company prior to the end of the financial year that are unpaid and arise when
the Company becomes obliged to make future payments in respect of the purchase of these goods and
services.
(b) Financial Instrument Risk Management
The main risks arising from trade and other payables is liquidity risk. The Directors manage risk by
monitoring levels of obligations arising from liabilities and commitments and consider cash requirements
in relation to ongoing cash flow budgets.
Liquidity Risk
All payables are current and payable within 30 days. Accordingly, management has ensured that the
Company has sufficient cash resources to meet the liabilities as and when they are due.
Amounts due are unsecured and non-interest bearing.
6.
ISSUED CAPITAL
(a) Issued capital
2021
Ordinary shares – fully paid (no par value)
Number of
shares
140,018,268
(b) Reconciliation of issued capital – ordinary shares
$
2020
Number of
shares
$
9,619,308 89,182,603
7,459,602
As at 30 June 2019
Issue of shares to acquire exploration asset
Issue of shares
Issue of shares to acquire exploration asset
Issue of shares
Cost of issuing equity
Issue of shares
Share purchase plan
Issue of shares
Issue of shares to acquire the interest in exploration
asset (g)
Cost of issuing shares
Shares
issued
57,899,977
1,000,000
12,474,933
307,693
17,500,000
-
89,182,603
22,295,665
11,540,000
16,000,000
1,000,000
-
Price
$
0.06
0.058
0.065
0.02
-
0.05
0.05
0.05*
0.089
$
6,497,235
60,000
723,550
20,000
350,000
(191,183)
7,459,602
1,114,783
577,000
636,800
89,000
(257,877)
As at 30 June 2021
* Shares were issued at $0.05 per share. The shares were issued with a free attaching option for every 2 shares purchased.
Accordingly a value of $0.0204 was applied to each share option, and $163,200 allocated to Issued share options (below)
140,018,268
9,619,308
46
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
(c) Significant Accounting Policies
Issued capital is recognised at the fair value of the consideration received by the Company. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction
of the share proceeds received. Ordinary share capital bears no special terms or conditions affecting
income or capital entitlements of the shareholders.
(d) Terms and conditions of issued capital
Ordinary shares
Fully paid ordinary shares carry one vote per share and carry rights to dividends.
Ordinary shareholders are entitled to participate in dividends and the proceeds on winding up of
the Company in proportion to the number of and amounts paid on the shares held. Every ordinary
shareholder present at a meeting in person or by proxy is entitled to one vote on a show of hands
or by poll.
At 30 June 2021, there were no partly paid shares outstanding. Ordinary shares have no par value.
The Company does not have a limit on number of shares authorised.
(e) Escrow
At 30 June 2021, there were no ordinary shares in voluntary escrow (2020: nil).
(f) Capital Management
The Company considers its capital to comprise its ordinary share capital and accumulated losses.
In managing its capital, the Company’s primary objective is to ensure its continued ability to provide
a consistent return for its equity shareholders through capital growth. To achieve this objective, the
Company seeks to maintain a gearing ratio that balances risks and returns at an acceptable level and
to maintain a sufficient funding base to enable the Company to meet its working capital and strategic
investment needs. During the exploration and evaluation phase of operations the Company does not
anticipate utilising any loan funding and will rely upon capital raisings. The capital risk management
policy remains unchanged from 30 June 2020.
(g) Share based payments
During the year, the Company entered into a share-based payment through a contractual arrangement
with vendors of the Yarrambee exploration project. The shares were issued upon on settlement of the
contracts.
7.
RESERVES
Option reserve (a)
Share based payment reserve (b)
Reserves
(a) Option reserve
Movement in reserve
As at 1 July 2020
Loyalty options issued
Listed options (G88O) *
As at 30 June 2021
2021
$
224,608
641,053
865,661
Price
$
0.005
0.0204
Share
options
issued
-
13,739,944
8,000,000
21,739,944
2020
$
-
345,790
345,790
$
-
61,408
163,200
224,608
47
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
* Options issued attached to shares purchased with 1 option for every 2 shares purchased. Accordingly, a value of $0.0204 was
applied to each share option, and $163,200 allocated to Issued share options.
Nature and Purpose of Reserves
The reserve is used to record cash received and allocated to the issue of share options.
Option Details
Option series
G88O
Expiry date
23 September 2023
Exercise price
$0.10
Option valuation inputs
As noted in the table above 8 million share options were issued as free attaching options to shares issued
for cash. Accordingly, $163,200 of the share proceeds was allocated to the cost of the options issued.
The basis of the share option valuation was as follows:
Issue date
Expiry date
Share price at issue date
Exercise price $
Risk free rate
Volatility
Fair value at grant date $/option
26 March 2021
23 September 2023
$0.052
$0.10
0.08%
94%
$0.0204
(b) Share based payments reserve
Movement in reserve
Opening balance
Share based payments – services received
Acquisition of exploration interests
Equity raising costs
Expiry of options
2021
$
345,790
175,378
50,100
91,715
(21,930)
2020
$
303,635
18,688
12,000
120,000
(108,533)
(i)
(ii)
(ii)
Closing balance
641,053
345,790
Nature and Purpose of Reserves
The reserve is used to record the value of equity instruments issued to employees, directors and service
providers as part of their remuneration, and other parties as part of compensation for their services.
(i) Key Management Personnel payments – options
During the year the Company appointed James Merrillees as Managing Director. His service contract
included the issue of share options vesting over a period of service. The details of the share options were
as follows:
Tranche No.
of
options
Exercise
Price
Vesting Period
Option
value
Total
expense
Expense
recorded for
the period
$28,670
1
2
1,000,000 0.088c *
1,000,000 0.103c *
from
6 months
the
date of issue of the
incentive options
18 months from date
of issue of incentive
options
2.87c per
option
$28,670
2.72c per
option
$27,170
$10,818
* Option condition stipulated that the exercise price will be 150% of the 20 day Volume Weighted Average Price (“VWAP”) from
the date of issue of the Options.
** Option condition stipulated that the exercise price will be 175% of the 20 day VWAP. Exercise price may vary on issue.
48
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Director and Consultant Options
At the 13 August 2021 Extraordinary General Meeting shareholders approved the issue of share options
to the directors. In addition share options were granted to consultants on the same terms. The share
options vested immediately upon issue and details were as follows:
Tranche
Rhoderick Grivas
No. of
options
1,000,000
Exercise
Price *
9.2c
Caedmon Marriott
1,000,000
9.2c
Phil Grundy
Consultants
500,000
9.2c
1,500,000
9.2c
Option
value
3.397c per
option
3.397c per
option
3.397c per
option
3.397c per
option
Total
expense
$33,973
$33,973
$16,985
$50,959
* Option condition stipulated that the exercise price will be 150% of the 30 day Volume Weighted Average Price (“VWAP”) from
the date of issue of the Options.
(ii) Other share-based payments
(1)
(2)
In May 2021 the Company settled on the acquisition of the rights to the Yarambee Project
tenements. Part of the consideration was the issue of 1,000,000 share options with an exercise
price of $0.10 and expiry date of 5 May 2023. The value of each option was estimated at $0.0501.
The total cost of $50,100 was expensed during the year as it was an expense incurred prior to
gaining control of a tenement in accordance with AASB 6.
In September 2020 the Company completed a share placement. The Company issued 4,000,000
share options to the Broking firm as part of the capital raising costs in addition to the 6% cash paid
in commission. The share options had an exercise price of $0.10 and expiry date of 30 September
2023. The share options were valued at $0.023 cents per share option and the total cost of $91,715
was capitalised costs of issued capital.
Movements in share based payment options during the year
2021
Tenement
options
KMP Share
options
Broker Share
options
1,425,000
1,000,000
(425,000)
4,150,000
4,500,000
(2,000,000)
3,000,000
4,000,000
-
Founder and
Consultant
options
2,000,000
1,500,000
(2,000,000)
Total
10,575,000
11,000,000
(4,425,000)
At 1 July 2020
Granted
Expired
Outstanding at
30 June 2021
Exercisable at
30 June 2021
2020
At 1 July 2019
Granted
Expired
Outstanding at
30 June 2021
Exercisable at
30 June 2020
2,000,000
6,650,000
7,000,000
1,500,000
17,150,000
2,000,000
5,950,000
7,000,000
1,500,000
16,150,000
Tenement
options
425,000
1,000,000
-
KMP Share
options
5,566,666
-
(1,416,666)
Broker Share
options
1,433,334
3,000,000
(1,433,334)
Founder share
options
2,000,000
-
-
Total
9,425,000
4,000,000
(2,850,000)
1,425,000
4,150,000
3,000,000
2,000,000
10,575,000
1,425,000
4,150,000
3,000,000
2,000,000
10,575,000
500,000 share options had not vested at 30 June 2020 and will be cancelled as Mr Reynolds has left the
Company prior to the vesting date of the share options.
49
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Option valuation inputs
The options issued during the current year were valued using the following inputs:
Input
Grant date
Expiry date
Share price at grant date
Exercise price $
Risk free rate
Volatility
Fair value at grant date $/option
Tenement
options
5 May 2021
5 May 2023
$0.089
$0.10
0.08%
116%
$0.0501
Broker options
4 September
2020
30 September
2023
$0.052
$0.10
0.11%
97%
$0.0229
Director and
consultant
options
13 August 2020
26 August 2023
$0.055
$0.092
0.27%
119%
$0.0340
The options granted to James Merrillees consisted of 2 tranches with the following inputs used to
determine the fair value of the options:
Input
Grant date
Expiry date
Share price at grant date
Exercise price $
Risk free rate
Volatility
Fair value at grant date $/option
Tranche 1
20/11/2019
17/11/2023
$0.051
$0.088
0.11%
110%
0.0287
Tranche 2
20/11/2019
17/11/2023
$0.051
$0.103
0.11%
110%
0.0272
(c) Significant Accounting Policies - share based payments
Equity-settled share-based payments to employees and others providing similar services are measured
at the fair value of the equity instruments at the grant date.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Company's estimate of equity instruments that
will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the
Company revises its estimate of the number of equity instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense
reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits
reserve.
Equity-settled share-based payment transactions with parties other than employees are measured at the
fair value of the goods or services received, except where that fair value cannot be estimated reliably, in
which case they are measured at the fair value of the equity instruments granted, measured at the date
the entity obtains the goods or the counterparty renders the service.
For cash-settled share-based payments, a liability is recognised for the goods or services acquired,
measured initially at the fair value of the liability. At the end of each reporting period until the liability is
settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair
value recognised in profit or loss for the year.
(d) Conditions
Share options do not entitle the holder to participate in dividends and the proceeds on winding up of the
Company. The holder is not entitled to vote at General Meetings. During the year no share options were
converted to ordinary shares. As at 30 June 2021 there were 37,889,944 share options outstanding,
including 16,150,000 share options issued for share based payments, and 21,739,944 listed options. The
weighted average life of the options on issue at 30 June 2021 was 698 days (2020: 557 days) and the
weighted average exercise price of $0.13 (2020: $0.23).
(e) Escrow
At 30 June 2021, there were no share options in escrow. (2020: Nil ).
50
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
8.
ITEMS INCLUDED IN PROFIT AND LOSS
(a)
Interest Income
Significant Accounting Policies
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
(b)
Items included in profit or loss
Included in profit or loss are the following specific items: -
Share based payments expense
Directors’ fees
Consultant fees
Exploration expense
Payroll costs
Wages and salaries
Superannuation
Exploration expenses
2021
$
124,419
50,959
139,100
314,478
161,594
15,136
176,730
2020
$
18,688
-
-
18,688
191,053
18,288
209,341
During the year exploration and evaluation expenses incurred that were expensed were general in
nature and not attributable to individual areas of interest.
General & administrative expenses
Audit, accounting and other professional fees
Insurance
Rent and office related costs
Subscriptions
Other expenses
Corporate expenses
Advertising
ASX fees
Consultants fees
Consultants fees – share based payments
Legal fees
Share registry fees
Other expenses
2021
$
66,653
19,535
27,930
2,277
17,141
2020
$
62,188
39,968
25,875
5,623
9,090
133,536
142,744
2021
$
10,520
26,818
87,844
50,959
29,161
34,175
-
2020
$
22,500
17,576
102,800
-
32,760
14,162
529
239,477
190,327
51
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
9.
INCOME TAX EXPENSE
(a) Income tax expense
Current tax expense
Deferred tax movements
(b) Reconciliation of income tax expense to
prima facie tax on accounting loss
Loss before income tax expense
Tax expense at Australian tax rate of 26% (2020:
27.5%)
Tax effect of amounts relating to
-
-
-
-
-
-
- Other
Share based payments
Impairment
Loss on disposal of non-current assets
Exploration expenditure
Capitalised share issue costs
Adjustment re previous year losses
Unused deferred tax losses not recognised
Income Tax Expense
(c) Tax Losses
Unused tax losses for which no deferred tax asset
has been recognised
2021
$
2020
$
-
-
-
-
-
-
(1,229,773)
(4,441,053)
(319,741)
(1,221,289)
81,764
20,835
-
(356,174)
(61,649)
-
21,142
5,139
1,014,029
19,741
(181,860)
(36,803)
-
(13,437)
(613,823)
(414,480)
613,823
414,480
-
-
9,536,101
7,175,243
Potential tax benefit at 26% (2020: 27.5%)
2,479,386
1,972,917
The benefit of these losses has not been brought to account at 30 June 2021 because the directors
do not believe it is appropriate to regard realisation of the deferred tax asset as being probable at
30 June 2021. These tax losses are also subject to final determination by the Taxation authorities
when the Company derives taxable income. The benefits will only be realised if:
(a) The Company derives future assessable income of a nature and of an amount sufficient to
enable the benefit of the deduction for the losses to be realised;
(b) The Company continues to comply with the conditions for the deductibility imposed by law; and
(c) No changes in the tax legislation adversely affect the Company in realising the benefit of the
losses.
Australian tax losses are subject to further review by the Company to determine if they satisfy the
necessary legislative requirements under the Income Tax legislation for the carry forward and
recoupment of tax losses.
(d) Significant Accounting Policies
Current income tax expense is the tax payable on the current year’s taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian
Taxation Office (ATO) and other fiscal authorities relating to the current or prior reporting years that are
unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in
the financial statements. Calculation of current tax is based on tax rates and tax laws that have been
enacted or substantively enacted by the end of the reporting year.
52
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to
apply to their respective year of realisation, provided they are enacted or substantively enacted by the
end of the reporting year.
A balance sheet approach is adopted under which deferred tax assets and liabilities are recognised for
temporary differences between the tax bases of assets and liabilities and their carrying amounts in the
financial statements. No deferred tax asset or liability is recognised if it arose in a transaction, other than
a business combination, that at the time of the transaction did not affect either accounting or taxable profit
or loss.
Deferred tax assets are recognised for temporary differences and unused tax losses only when it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Current and deferred tax balances attributable to amounts recognised directly in equity are also
recognised directly in equity.
10. RELATED PARTY DISCLOSURES
(a) Key Management Personnel Compensation
The aggregate compensation of the key management personnel of the Company is set out below:
Short term employment benefits
Post-employment benefits
Share based payments
2021
$
320,579
15,135
124,419
460,133
2020
$
308,824
18,288
18,688
345,800
Refer to the Remuneration Report in the Directors’ Report for detailed compensation disclosures on key
management personnel.
(b) Director related entities
During the year, the Company entered into the following arrangements and transactions with entities
related to directors:
- The Company engaged Moray & Agnew in providing legal services during the year. Phillip Grundy
is a partner of Moray & Agnew. Legal expenses of $26,258 (2020: $24,148) were incurred during
the year for general legal services. $nil (2020: $nil) was unpaid at the year end.
- Caedmon Marriott is a director of Nomad Exploration Pty Ltd (“Nomad”). Mr Marriott’s director fees
were invoiced by Nomad. In addition, expenses amounting to $40,740 (2020: $18,180) were
invoiced for exploration services by Nomad. There were no outstanding amounts at 30 June 2021.
- The Company shared office space for part of the year with Aldoro Resources Limited, a company
that Caedmon Marriott and Rhod Grivas are directors of. As the Company paid the full rental cost
costs were recharged to Aldoro Resources Limited. The amount recharged was $8,599
(2020:$9,082), with $nil outstanding at 30 June 2021 (2020: $1,287).
- The Company also shared office space for part of the year with Western Mines Group Limited, a
company that Caedmon Marriott is a director of. As the Company paid the full rental cost costs were
recharged to Western Mines Group Limited. The amount recharged was $2,550 (2020:$nil), with a
receivable of $935 outstanding at 30 June 2021 (2020: $nil).
- Altilium Metals Limited provided consulting services in the acquisition of the Yuinmery Project, and
the Company paid $nil (2020: $30,000) for the service. Rhod Grivas is a director of Altilium Metals
Limited. No amounts were outstanding at 30 June 2021.
All transactions with related parties were undertaken on commercial terms, unless otherwise stated.
53
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
11. REMUNERATION OF AUDITORS
Remuneration for audit and review of the financial reports of the Company:
Auditors of the Company:
Auditing the financial report (a)
Non-audit services (b)
2021
$
28,653
6,000
34,653
2020
$
34,188
-
34,188
(a) HLB Mann Judd (“HLB”) are the auditors of Golden Mile Resources Limited.
(b)
It is the Company’s policy to engage HLB on assignments additional to their statutory audit
duties where HLB’s expertise and experience with the Company are important. During the year,
HLB provided no additional services.
12. COMMITMENTS FOR EXPENDITURE
(a) Capital Commitments
Other than the exploration commitments set out in note 2(e) the Company has no other capital
commitments.
(b) Operating leases
The Company has entered a rental lease for rolling 12 month period, commencing 1 April 2021. Rent is
set at $2,250 per month, providing a commitment of $20,250.
(c) Significant Accounting policies
In applying AASB 16 the company has elected not to recognise a right-of-use asset and corresponding
lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease
payments on these assets are expensed to profit or loss as incurred.
13. SEGMENT INFORMATION
The Company has adopted AASB 8 Operating Segments whereby segment information is presented
using a ‘management approach’. Management has determined the operating segments based on the
reports reviewed by the Board of Directors that are used to make strategic decisions. The principal
business and geographical segment of the Company is mineral exploration within Western Australia.
The Board of Directors reviews internal management reports at regular intervals that are consistent
with the information provided in the statement of profit or loss and other comprehensive income,
statement of financial position and statement of cash flows. As a result, no reconciliation is required
because the information as presented is what is used by the Board of Directors to make strategic
decisions including assessing performance and in determining allocation of resources.
14. LOSS PER SHARE
Basic loss per share
Diluted loss per share
Net loss from continuing operations attributable to the owners of
Golden Mile Resources Limited used in calculation of basic and
diluted earnings per share.
Basic
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic loss per share
2021
CENTS
2020
CENTS
1.02
1.02
$
6.58
6.58
$
(1,229,773)
(4,441,053)
Number
Number
120,904,646
67,471,069
54
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Diluted
Weighted average number of ordinary shares and convertible
redeemable cumulative preference shares outstanding and
performance rights during the year used in the calculation of basic
loss per share
120,904,646
67,471,069
The Company made losses during the year. Consequently, any outstanding equity instruments would not
have a dilutive in effect.
15. DIVIDENDS
No dividends were proposed or paid during the year.
16. EVENTS OCCURRING AFTER REPORTING DATE
400,000 share options originally issued to consultants employed by the Company expired on 1 August
2021.
On 4 August 2021 Caedmon Marriott resigned as a Director of the Company, whilst Frank Cannavo and
Grant Button were appointed to the Board as Non-Executive Directors.
On 24 August 2021, the Company issued 1,000,000 fully paid ordinary shares and 500,000 share options,
with an exercise price of $0.10 and expiring on 23 September 2023. The shares were issued at $0.05,
and the share options were free attaching options to the shares subscribed. These shares were initially
announced in March 2021 with the Loyalty Options Entitlement and were ratified at the Company’s
Extraordinary General Meeting (“EGM”) held on 27 July 2021.
The Directors participated in the issue, and the issue of the shares and free attaching options were subject
to the shareholder approval, which was received at the 27 July EGM. The Company also issued 166,665
listed share options to Directors, on the same terms as the Company’s non-renounceable entitlement
issue of Options as approved by the Company’s shareholders at the 27 July EGM. The options were
issued for $0.005 per option. The directors subscribed to the issue as follows:
- Rhoderick Grivas
- Phillip Grundy
-
James Merrillees
400,000 shares, with 200,000 free attaching options. 66,666 listed
share options.
200,000 ordinary shares, with 100,000 free attaching options. 33,333
listed share options.
200,000 ordinary shares, with 100,000 free attaching options. 33,333
listed share options.
In addition, 1,000,000 unlisted share options, exercisable at $0.088 and expiring on 24 August 2024 were
issued. These options were issued pursuant to James Merrillees’ employment agreement and were
ratified at the 27 July 2021 EGM.
On 9 September 2021 the Company announced completion of a capital raising of $1,600,000 before
costs, issuing 3.2 million ordinary shares at $0.05 with one free attaching option for every four shares
subscribed for. The options are subject to approval at the next General Meeting of shareholders. Frank
Cannavo, a director of the Company subscribed for shares in the raising, and these will also be subject
to approval at a General Meeting. A further 3,500,000 share options were issued for lead manager
services provided in this capital raise.
The Board is not aware of any other matter or circumstance not otherwise dealt with in these financial
statements that has significantly or may significantly affect the operation of the Company, the results of
those operations, or the state of affairs of the Company in subsequent financial years.
55
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
17. CONTINGENT LIABILITIES
Within the sale and purchase agreements for the projects the Company owns, there is a clause granting
a Net Smelter Royalty to the vendors of the projects. The royalty varies in rate between agreements and
is either 0.5% or 1.0%. The royalty applies to any products derived from the projects. These will only
provide obligations the projects are developed to production stage.
There are no other matters which the Company considers would result in a contingent liability as at the
date of this report.
18. FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES
Financial Instruments
Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions to the instrument. For financial assets, this is the date that the company commits
itself to either the purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments 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. The Company has no financial instruments classified as “at fair value through
profit or loss”.
Classification and subsequent measurement
The Company classifies its financial instruments based on the purpose for which the instruments were
acquired. Management determines the classification of its financial instruments at the time of initial
recognition. The Company’s principal financial instruments comprise receivables, payables, cash and
short-term deposits.
At the reporting date, the Company’s financial instruments were classified within the following categories.
Cash and cash equivalents – financial assets at amortised cost.
See note 3.
Receivables at amortised cost
See note 4.
Financial Liabilities at amortised cost
Financial liabilities include trade payables and other creditors.
All of the Company’s financial liabilities are recognised and subsequently measured at amortised cost,
using the effective interest rate method.
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.
Impairment of financial assets at amortised cost
The Company considers all financial assets for recoverability and impairment. Where there are indicators
of impairment the Company will review the carrying amount of the financial asset and estimate its
recoverable amount. The Company will take all available action to recover the full amounts of financial
assets, and once all efforts are exhausted the Company will record an impairment. Any impairment is
recorded in a separate allowance account. Any amounts subsequently written off are offset against the
impairment allowance.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
56
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Financial liabilities are derecognised when it is extinguished (ie when the obligation in the contract is
discharged, cancelled or expires). 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.
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 of the following criteria need to be satisfied for derecognition of 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 Company no longer controls the asset (ie the Company has no practical ability to make a
unilateral decision 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.
Financial Risk Management
The Company manages its exposure to key financial risks, including interest rate and currency risk in
accordance with the Company’s financial risk management policy. The objective of the policy is to support
the delivery of the Company’s financial targets whilst protecting future financial security.
The main risks arising from the Company’s financial instruments are interest rate risk, credit risk and
liquidity risk. The Company manages its risk informally at Board level. The Board monitors levels of
exposure to interest rate and credit risk by banking with reputable banks. Liquidity risk is monitored
through the development of future rolling cash flow forecasts.
The Board reviews and agrees policies for managing each of these risks informally.
Primary responsibility for identification and control of financial risks rests with the Board of Directors (‘the
Board’). The Board reviews and agrees policies for managing each of the risks identified below, including
interest rate risk, credit allowances, and future cash flow forecast projections. The company does not
hedge its risks.
The carrying amounts and net fair values of the Company’s financial assets and liabilities at balance date
are:
2021
2020
Carrying
Value
Fair Value
Carrying
Value
Fair Value
Financial Assets
$
$
$
$
Cash and cash equivalents
966,860
966,860
624,725
624,725
Trade and other receivable
71,297
71,297
52,049
52,049
Non-Traded Financial Assets
1,038,157
1,038,157
676,774
676,774
Financial Liabilities at amortised cost
Trade and other payables
206,355
206,355
Non-Traded Financial Liabilities
206,355
206,355
32,694
32,694
32,694
32,694
Risk Exposures and Responses
Interest Rate Risk
Exposure to interest rate risk arises on financial instruments whereby a future change in interest rates
will affect future cash flows or the fair value of the fixed rate financial instruments. The Company is also
57
GOLDEN MILE RESOURCES LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
exposed to earnings volatility on floating rate instruments. At balance date, the Company’s exposure to
interest rate risk was wholly related to cash and cash equivalents and is disclosed in note 3.
Interest rate risk is managed by monitoring the level of floating rate which the Company is able to secure.
It is the policy of the Company to keep the majority of its cash in accounts with floating interest rates.
Sensitivity Analysis
During the current year the interest received was $892. The directors do not consider this material to the
result or the overall financial statements and have not disclosed a sensitivity analysis.
Foreign Exchange Risk
The Company is not exposed to foreign exchange risk.
Liquidity Risk
Liquidity Risk is the risk that the Company, although balance sheet solvent, cannot meet or generate
sufficient cash resources to meet its payment obligations in full as they fall due, or can only do so at
materially disadvantageous terms. The Company’s liquidity risk relates to its trade and other payables.
All payables are due within 30 days of the year end.
The Board manages liquidity risk by maintaining adequate reserves and by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Credit Risk
Credit risk arises from the financial assets of the Company, which comprise cash and cash equivalents
and trade and other receivables. The Company’s exposure to credit risk arises from potential default of
the counter party, with maximum exposure equal to the carrying amount of these instruments. Exposure
at balance date in relation to cash and cash and cash equivalents is discussed in note 3. Exposure in
relation to trade and other receivables is considered very low as a significant portion ($70,362) balance
relates to GST recoverable and PAYG/cash flow boost where the counter-party is the Australian Tax
Office. The remaining receivables are not considered significant or a significant credit risk.
Fair Value
The Company does not carry any of its financial assets at fair value after initial recognition.
19. APPLICABLE ACCOUNTING STANDARDS
(a) New, Revised or Amending Accounting Standards and Interpretations Adopted
The Company has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (“AASB”) that are relevant to its operations and effective
for the year.
(b) New, Revised or Amending Accounting Standards and Interpretations Not Yet 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.
58
GOLDEN MILE RESOURCES LIMITED
DIRECTORS’ DECLARATION
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Golden Mile Resources Limited (the “Company”):
(a)
The financial report of the Company is in accordance with the Corporations Act 2001, including:
i. Giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its
performance for the year ended on that date; and
ii. Complying with the Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements;
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable, based on the factors disclosed in note 1(c) of the financial
statements;
2.
3.
The financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board, as described in Note 1(a) to the financial statements; and
This declaration has been made after receiving the declarations required by section 295A of the
Corporations Act 2001 from the Chief Executive Officer for the financial year ended 30 June 2021.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations
Act 2001. This declaration is made in accordance with a resolution of the Directors.
Mr R Grivas
Non-Executive Chairman
30 September 2021
Melbourne
59
Independent Auditor’s Report to the Members of Golden Mile Resources Limited
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Golden Mile Resources Limited (“the Company”) which
comprises the statement of financial position as at 30 June 2021, the statement of profit or loss
and other comprehensive income, the statement of changes in equity and the statement of
cash flows for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company is 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 financial performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Company in accordance with
the auditor independence requirements of the Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of
Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Company, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Material Uncertainty Regarding Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Company incurred
a net loss of $1,229,773 (2020: $4,441,053) during the year ended 30 June 2021. As stated in
Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that
a material uncertainty exists that may cast significant doubt on the Company’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
60
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters were
addressed in the context of our audit of the financial report as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. In addition to the
matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be communicated in our
report.
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of exploration and evaluation asset
Refer to Note 2 of the Financial Report
In accordance with AASB 6
Exploration for and Evaluation of
Mineral Resources (“AASB 6”), for
each area of
the
Company capitalises expenditure
incurred in the exploration for and
evaluation of mineral resources.
These capitalised assets are
recorded using the cost model.
interest,
this
is one of
Our audit
focussed on
the
the
Company’s assessment of
carrying amount of the capitalised
exploration and evaluation asset,
because
the
significant assets of the Company.
There is a risk that the capitalised
expenditure no longer meets the
recognition criteria of AASB 6. In
addition, we
it
necessary to assess whether facts
and circumstances existed
to
suggest that the carrying amount
of an exploration and evaluation
asset may exceed its recoverable
amount.
considered
Our procedures included but were not limited to:
•
testing the capitalised exploration expenditures
incurred in respect of the Company’s areas of
interest by evaluating supporting documentation
for consistency to the capitalisation requirements
of the Company’s accounting policies and the
requirements of AASB 6;
• obtaining an understanding of the key processes
associated with management’s review of the
exploration and evaluation asset carrying values;
considering and assessing
the Directors’
assessment of potential indicators of impairment;
• obtaining evidence that the Company has current
•
rights to tenure of its areas of interest;
• examining the exploration budget for 2021/22 and
the nature of
discussing with management
planned ongoing activities;
• enquiring with management,
reading ASX
announcements and minutes of Directors’
meetings to ensure that the Company had not
decided to discontinue exploration and evaluation
at its areas of interest; and
• examining the disclosures made in the financial
report against the requirements of applicable
Australian Accounting Standards.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s annual report for the year ended 30 June 2021, but
does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
61
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Company to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a
whole is free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
62
• Evaluate the overall presentation, structure and content of the financial report, including
the disclosures, and whether the financial report represents the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of
most significance in the audit of the financial report of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 29 to 35 of the directors’ report
for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Golden Mile Resources Limited for the year ended
30 June 2021 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Melbourne
30 September 2021
Jude Lau
Partner
63
GOLDEN MILE RESOURCES LIMITED
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 28 September 2021.
A.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
SPREAD OF HOLDINGS
NUMBER OF
HOLDERS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
NUMBER OF
UNITS
45,723
550,009
1,848,239
24,441,356
144,133,001
% OF TOTAL
ISSUED CAPITAL
0.03%
0.32%
1.08%
14.29%
84.28%
103
188
228
639
241
1,399
171,018,328
100.00%
Based on the price per security, number of holders with an unmarketable holding: 531, with total 2,566,294,
amounting to 1.50% of Issued Capital.
B.
Distribution of Equity Securities – Share Options
Analysis of numbers of equity security holders by size of holding:
SPREAD OF HOLDINGS
NUMBER OF
HOLDERS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
TOTAL
45
120
42
98
43
348
C.
Equity Security Holders
Twenty largest quoted equity security holders.
NUMBER OF
UNITS
25,222
318,343
321,872
4,039,395
17,701,777
% OF TOTAL
SHARE OPTIONS
0.11%
1.42%
1.44%
18.03%
79.00%
22,406,609
100.00%
The names of the twenty largest holders of quoted equity securities are listed below:
NAME
APERTUS CAPITAL PTY LTD
CITICORP NOMINEES PTY LIMITED
CHOO KOON LIP
MR DAVID ANDREW GOWANLOCK
CLELAND PROJECTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
EST MR ROBERT ADDISON RAMSAY
MRS LUYE LI
SANCOAST PTY LTD
BNP PARIBAS NOMS PTY LTD
VA BEN CAPITAL PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR GEORGE LERANTGES & MS THEODOSIA
BAXANIS
SCINTILLA STRATEGIC INVESTMENTS LIMITED
ORDINARY SHARES
NUMBER HELD
10,100,000
6,419,975
6,100,000
4,899,297
4,257,000
4,239,151
4,067,459
4,056,539
4,000,000
2,721,262
2,638,000
2,334,745
2,250,000
2,200,000
% OF ISSUED
SHARES
5.91%
3.75%
3.57%
2.86%
2.49%
2.48%
2.38%
2.37%
2.34%
1.59%
1.54%
1.37%
1.32%
1.29%
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GOLDEN MILE RESOURCES LIMITED
SHAREHOLDER INFORMATION
CJC & GC PTY LTD
MR MARK ANDREW TKOCZ
BURRWOOD
MUNCHA CRUNCHA PTY LTD
YEO LEE WAH
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
INVESTMENTS
PTY
LTD
1,880,000
1,800,000
1,615,213
1,600,000
1,400,000
1,373,647
1.10%
1.05%
0.94%
0.94%
0.82%
0.80%
As at 28 September 2021, the 20 largest shareholders held ordinary shares representing 40.90% of the issued
share capital.
D.
Equity Security Holders – Share options
Largest quoted equity security holders. The names of the largest holders of quoted equity securities are listed
below:
NAME
APERTUS CAPITAL PTY LTD
MRS LUYE LI
DR ROSEMARY ELIZABETH ANNE GREEN
SCINTILLA STRATEGIC INVESTMENTS LIMITED
M & K KORKIDAS PTY LTD
CLELAND PROJECTS PTY LTD
EST MR ROBERT ADDISON RAMSAY
WILGUS INVESTMENTS PTY LTD
MR MARK ANDREW TKOCZ
VA BEN CAPITAL PTY LTD
M & K KORKIDAS PTY LTD
PAUL THOMSON FURNITURE PTY LTD
ROGUE INVESTMENTS PTY LTD
TALEX INVESTMENTS PTY LTD
SINS OF TIME PTY LTD
MUNCHA CRUNCHA PTY LTD
TOLTEC HOLDINGS PTY LTD
RIYA INVESTMENTS PTY LTD
BNP PARIBAS NOMS PTY LTD
MR GEOFF DE GRAAFF
MR MARTIN NICHOLAS KLOOSTER
XCEL CAPITAL PTY LTD
SHARE OPTIONS
NUMBER HELD
2,066,667
1,229,742
1,075,100
950,000
% OF ISSUED
SHARE
OPTIONS
9.22%
5.49%
4.80%
4.24%
826,675
784,500
677,910
666,667
616,667
573,000
546,326
528,000
500,000
425,000
408,334
360,000
333,334
317,931
310,206
300,000
300,000
300,000
3.69%
3.50%
3.03%
2.98%
2.75%
2.56%
2.44%
2.36%
2.23%
1.90%
1.82%
1.61%
1.49%
1.42%
1.38%
1.34%
1.34%
1.34%
As at 28 September 2021, there were 348 share option holders.
Substantial Shareholders
Substantial holders in the Company are set out below:
NAME
APERTUS CAPITAL PTY LTD
E.
Voting Rights
ORDINARY
SHARES
NUMBER HELD
10,100,000
% OF ISSUED
SHARES
5.91%
The voting rights attached to ordinary shares are set out below:
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
65
GOLDEN MILE RESOURCES LIMITED
SHAREHOLDER INFORMATION
F.
Share buy back
There is no current on-market share buy-back.
66
GOLDEN MILE RESOURCES LIMITED
CORPORATE DIRECTORY
CORPORATE DIRECTORY
Board of Directors
Mr Rhoderick Grivas (Non-Executive Chairman)
Mr James Merrillees (Managing Director)
Mr Phillip Grundy (Non-Executive Director)
Mr Francesco Cannvo (Non-Executive Director)
Mr Grant Button (Non-Executive Director)
Company Secretary
Mr Justyn Stedwell
Registered Office
Suite 103 Level 1 2 Queen Street
Melbourne, VIC 3000 AUSTRALIA
Share Registry
Automic Registry Services
Level 3, 30 Holt Street
Surry Hills, NSW 2012, AUSTRALIA
Telephone: 1300 288 664 (local) +61 2 9698 5414 (international)
Auditor
HLB Mann Judd
Level 9, 575 Bourke Street
Melbourne VIC 3000 AUSTRALIA
Solicitors to the Company
Moray & Agnew Lawyers
Level 6, 505 Little Collins Street
Melbourne, VIC 3000, AUSTRALIA
Stock Exchange Listing
Golden Mile Resources Limited shares are listed on the Australian Securities Exchange, code G88.
67