2019 ANNUAL REPORT
MATERIALS
FOR AN
ENERGY
EFFICIENT
FUTURE
Contents
Corporate Directory
2019 Highlights
Chairman’s letter to shareholders
Operations report
Annual Financial Report
Directors’ report
Auditor’s independence declaration
Independent auditor’s report
Director’s declaration
Consolidated statement of profit or loss and
other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
1 General information
2 Significant accounting policies
3 Critical accounting estimates and judgments
4 Segmented information
5 Revenue
6 Expenditure
7
8 Cash and equivalents
9 Trade and receivables
Income tax expense
Lease liability
Issued capital
10 Other assets
11 Property plant and equipment
12 Right-of-use leased assets
13 Capitalised exploration and evaluation expenditure
14 Trade and other payables
15
16 Provisions
17
18 Reserves
19 Dividends
20 Accumulated loss
21
22 Commitments for expenditure
23 Subsidiaries
24 Notes to the statement of cash flows
25 Share based payments
26 Financial instruments
27 Key management personnel compensation
28 Key management personnel equity holdings
29 Transactions with related parties
29 Parent company information
30 Remuneration of auditors
31 Subsequent events
Loss per share
Additional stock exchange information
DIRECTORS
Anthony Ho
Non-executive Chairman
John Mair
Managing Director
Simon Cato
Non-executive Director
Xiaolei Guo
Non-executive Director
CHIEF FINANCIAL
OFFICER/COMPANY SECRETARY
Miles Guy
REGISTERED AND HEAD OFFICE
Unit 7, 100 Railway Road
Subiaco WA 6008
Greenland
Nuugaarmiunt B-847
3921 Narsaq, Greenland
HOME STOCK EXCHANGE
Australian Securities Exchange, Perth
Code: GGG
AUDITORS
Deloitte Touche Tohmatsu
SHARE REGISTRY
Advanced Share Registry
110 Stirling Highzway
Nedlands WA 6009
COMPANY WEBSITE
www.ggg.gl
ABN
85 118 463 004
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2019 HIGHLIGHTS
Greenland hits
international headlines;
rare earths in the spotlight
Outstanding optimisation
outcomes emphasize Kvanefjeld’s
global significance
Community ties
strengthened
via memorandum of
understanding and
ongoing engagement
Major permitting progress; social impact
assessment accepted for public consultation,
environmental studies advanced
1
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT Chairman's Letter
Dear Fellow Shareholder,
In 2019, Greenland hit the international headlines, boosting its profile and mainstream awareness.
This coincided with the finalization of optimization studies on the Kvanefjeld rare earth project that
demonstrated Kvanefjeld is one of, if not the most, significant emerging rare earth projects globally.
Given the recognition of key rare earths, particularly the ‘magnet metals’, as critical elements with
looming supply shortage, a new level of international interest was focused on the Kvanefjeld Project
and our Company’s future strategy and plans. Visitors to the town of Narsaq to visit the project area
included international government representatives, journalists from international media outlets, along
with documentary makers.
The excellent outcomes of the optimization program stemmed from what has been a very productive
and cooperative working relationship with Shenghe Resources Holding Co Ltd, and fulfilled a vision
of how best to maximise the Kvanefjeld projects strengths that was conceived in 2016. Under the
guidance of Shenghe’s internationally renowned metallurgical expertise, a joint technical committee
oversaw work programs in China and Australia. The outcomes of this work, along with markedly
improved civil engineering costs, led to circa 40% reductions in both capital and operating costs. This
has Kvanefjeld positioned as one of the lowest-cost emerging producers that has a unique production
profile rich in neodymium, praseodymium, terbium and dysprosium.
In parallel to optimistation studies, project permitting continued to be a key focal point of activity. It
was a significant milestone to have the social impact assessment accepted for public consultation,
and substantial progress was made toward finalizing the environmental impact assessment. A
heighted level of communication and guidance from the Greenland Government has been of great
assistance in focusing additional studies that are now being finalized. These have been conducted by
carefully selected independent specialists, and we continue to apply highly experienced consultants
to ensure the EIA is thorough, and of a high standard.
This year we aim to work in close communication with the Greenland Government to move the
project through a public consultation phase that we can then follow-up to finalise the requirements
of an exploitation license. We continue to work with Shenghe to advance our development plans,
where greater focus will shift to off-take and marketing discussions and the downstream processing
strategy. Building ties to European industry will build on positive initiatives undertaken in 2019,
which included Shenghe Chairman presenting at the Confederation of Danish Industry’s Greenland
conference in December. The COVID 19 virus will unquestionably influence global logistics through
2020, and we will look to keep shareholders informed as best as we can through this period.
Finally, I’d like to acknowledge the diligent and committed efforts of our staff in Greenland and
Australia, our Shenghe colleagues, and our key consultants.
Yours sincerely
Anthony Ho
Non-executive Chairman
2
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT KVANEFJELD IS ONE OF, IF
NOT THE MOST, SIGNIFICANT
EMERGING RARE EARTH
PROJECTS GLOBALLY.
3
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT Operations Report
2019 OVERVIEW AND REVIEW OF OPERATIONS
In 2019, Greenland’s international profile was boosted substantially, on the back of
heightened interest from the United States that reflected Greenland’s natural resource
endowment and strategic location. Rare earth elements are central to the growing wave
of interest in Greenland’s resources sector owing to their criticality to clean energy
generation and efficient energy use, coupled with limited global supply networks.
Rare earth permanent magnets will see drastic
increases in demand in the coming years
due to the roll out of electric vehicles, wind
turbines, amongst an ever-growing list of other
applications. These magnets utilise the properties
of neodymium, praseodymium, terbium and
dysprosium that will all see unprecedented
demand increases as a result.
Greenland Minerals Ltd’s 100% owned Kvanefjeld
rare earth project is one of the most significant
emerging rare earth projects globally. Favourably
located in southern Greenland, a region which
features a mild climate and the benefits of
existing infrastructure, Kvanefjeld is well-placed
to be developed as a major new supplier of
critical rare earth materials. The Project is
underpinned by one of the largest code-compliant
(JORC, CIM) resources and reserves of rare
earths globally. The unique rare earth minerals
at Kvanefjeld can be effectively processed with a
simple, highly efficient methodology that has been
rigorously developed and tested in conjunction
major shareholder and specialist international
rare earth supplier Shenghe Resources Holding
Co Ltd (Shenghe).
In 2019, GML finalised project optimisation that
delivered exceptional results which included
major reductions to both capital and operating
costs, and a highly competitive cost structure.
Project optimisation drew on metallurgical
studies that were jointly undertaken with
Shenghe through 2017-2019, as well as civil
engineering studies based on field investigations
in southern Greenland by a collective of specialist
engineering firms. This has Kvanefjeld positioned
to be one of the lowest cost, largest producers of
all key rare earths (Nd, Pr, Tb, Dy), over an initial
37 year mine life.
Substantial progress was also made in finalising
the Environmental Impact Assessment (EIA), a
key component of project permitting. EIA reviews
were received in October, and subsequent
meetings with Greenland’s Environmental Agency
for Mineral Resource Activities EAMRA resulted in
a clear and structured approach to finalising the
EIA. Many areas of the EIA are closed out and
additional work programs are set for completion
in the first quarter of 2020. The EIA for Kvanefjeld
draws on many technical studies by a cross
section of specialist independent consultants
that have been carefully selected based on their
reputation and competency. The process has
been designed to be thorough and rigorous in
understanding and investigating risks associated
with project development, operation and closure.
Growing Geopolitical Interest
In May, the Company was an invited participant
in the ‘Future Greenland’ conference, held in
Nuuk, where GML’s Managing Director Dr John
Mair presented in the mining session. During this
period Dr Mair had the opportunity to meet with
4
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT
the US Ambassador to Denmark Carla Sands
and her aids to discuss Greenland’s emerging
mining sector, the rare earth industry, and the
status and outlook of the Kvanefjeld Project.
Through early July, GML participated in a joint
research program conducted by Greenland’s
Department of Geology and the US Geological
Survey that aimed to produce updated geological
and geophysical data over southern Greenland’s
rare metal province. As part of this initiative, the
research team spent several days studying the
geology of the Kvanefjeld Project area through
visiting outcropping ore zones and examining
drill cores at the Company’s operations base in
Narsaq. Datasets along with study outcomes are
to be made freely available and aim to continue
to build the profile of one of Greenland’s most
significant mineral provinces. Following the
USGS field work, Ambassador Sands visited
southern Greenland and GML’s operations
base in Narsaq. The US Greenlandic Affairs
Officer Mr Sung Choi also visited the Kvanefjeld
Project where Ib Laursen, GML’s operations
manager based in Narsaq, provided a tour
of the Kvanefjeld mine area and the planned
infrastructure layout.
In early December, GML’s Managing Director
joined a delegation from Shenghe, GML’s
largest shareholder and strategic partner, to
participate in the Confederation of Danish
Industry’s Greenland-focussed conference, held
in Copenhagen. Shenghe were represented by
Mr Hu Zesong (Chairman and CEO), Mr Guo
Xiaolei (Secretary to the Board, Shenghe, GML
Director), and Ms Jean Fan (Assistant Manager,
Investment and Development, Shenghe).
This was an excellent opportunity for Shenghe’s
Chairman, Mr Hu Zesong, to present an overview
to a cross section of industry, government and
media representatives from Greenland and
Denmark on the outlook for the rare earth sector,
Shenghe’s international growth strategy and
significant role the Kvanefjeld Project can play.
The visit to Denmark allowed for a productive
meeting of the Shenghe/GML delegation with
Greenland’s Minister for Mineral Resources,
Mr Vittus Qujaukitsoq, to discuss the forward
strategy for the Kvanefjeld Project, and its
importance to future rare earth supply. Meetings
were also held with Mr Brian Buss, head of
Greenland’s business association, as well as
Danish government representatives.
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT
5
Operations Report (continued)
Permitting Update
Project permitting remains a key point of
Company focus. Over the last couple of years
GML has worked through a guidance, or review
phase, that is aimed at preparing social and
environmental impact assessments for public
consultation, and the subsequent production
and approval of a white paper. The scope of the
impact assessments is framed by the ‘terms of
reference’, which were approved after public
consultation in late 2015.
Changes to the administrative structure in 2019
that relates to mineral resources have aimed to
centralise responsibilities with areas of Social
Impact Assessments (SIA) and Impact Benefit
Agreements (IBA) shifting from the Ministry of
Industry and Energy, back to the Ministry for
Mineral Resources and Labour.
A new minerals strategy has also been put
forward for consultation by the Greenland
Government to streamline the permitting process
and make it faster, simpler and more transparent.
This reflects a growing awareness that more can
be done to improve the regulatory conditions for
the minerals industry, and that improvements are
required. In the Company’s view, it is positive to
see industry feedback taken on board.
For GML, a lot of progress was made in 2019
on finalising the Kvanefjeld mining license
application for public consultation. The SIA
and Maritime Safety Study (MSS) have been
accepted for public consultation. The latest
feedback on the EIA, received in mid-October,
has been presented in a considerably more
structured approach with feedback focussed on
isolating a small number of priority areas (Type
1 issues) where further information has been
requested prior to a public consultation. This
presents a much clearer and more structured
path forward.
Social Impact
Assessment
In late March, GML announced an important
permitting milestone, with the SIA review and
guidance period coming to completion and the
SIA accepted for public consultation.
Greenland’s Mineral Resources Act requires
that applicants for mining exploitation licences
submit a Social Impact Assessment, and
a complementary Environmental Impact
Assessment (“EIA”), as part of their applications.
Both assessments must be made available
for public consultation once they have been
reviewed and accepted by the relevant
Greenlandic authorities.
An SIA is reviewed by the Ministry of Industry
and Energy (“MIE”) and an EIA is reviewed by
Greenland’s Environmental Agency for Mineral
Resource Activities (EAMRA).
The purpose of public consultation is to allow an
opportunity for stakeholders to provide feedback
on impact assessments thereby helping to
ensure that the all impacts and potential issues
are described and addressed to the satisfaction
of local communities.
Importantly, GML has conducted consistent
stakeholder meetings such that the SIA and
EIA have been developed with considerable
stakeholder input.
The Company’s SIA was prepared by Shared
Resources Pty Ltd, an independent Australian
consultant specialising in international social
impact assessments for natural resources
projects incorporating best practice benchmarks
and the International Finance Corporation’s
“Performance Standards”. The SIA has been
translated to Greenlandic and Danish and is
standing by for the public consultation phase
when the EIA has been finalised.
THE PURPOSE OF PUBLIC CONSULTATION IS TO ALLOW
AN OPPORTUNITY FOR STAKEHOLDERS TO PROVIDE
FEEDBACK ON IMPACT ASSESSMENTS THEREBY
HELPING TO ENSURE THAT THE ALL IMPACTS AND
POTENTIAL ISSUES ARE DESCRIBED AND ADDRESSED
TO THE SATISFACTION OF LOCAL COMMUNITIES.
6
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT Environmental Impact
Assessment
In June, GML lodged the revised EIA with the
Greenland Government. The EIA included
additional background studies that were updated
by independent specialist consultants following
ongoing guidance by the Greenland Government
and their advisory groups. This did not change
the outcomes of the EIA but continued to build
an in-depth understanding of the project and all
potential impacts and associated risks.
The EIA for Kvanefjeld was reviewed through
August – September 2019, with feedback received
from Greenland’s Environmental Agency for
Mineral Resource Activities (EAMRA) in October.
In the review feedback EAMRA separated
outstanding environmental issues into two
categories: Type 1; those where EAMRA require
more information before the EIA can be accepted
for public consultation; and Type 2; which can
be answered after the process of formal public
consultation has been completed and finalised
before exploitation plans are approved. This
represents an important step as it brings further
work down to a small subset of areas in order to
see the EIA accepted for public consultation.
Through November and early December GML
conducted a series of constructive meetings with
EAMRA and their advisors, to discuss Type 1
issues and the approach to finalising the EIA.
Scopes of work for additional studies were
reviewed, and additional work programs were
commissioned.
Most of the supplemental work relates to tailings
storage facilities: more detailed modelling of
scenarios for embankment failure; more detailed
review of seismic conditions to validate long
term stability of tailings structures; and a request
to investigate the viability of an alternative “dry
closure” option for the planned tailings facility.
Independent specialist consultant Klohn Crippen
Berger (KCB) have been engaged to perform
the supplemental tailings studies. Work by KCB
will build on existing tailings studies conducted
by AMEC Foster Wheeler (now Wood Group).
KCB are a new consultant to contribute to the
project and will provide an external assessment
of existing environmental designs. Their work on
the tailings-related Type 1 issues was completed
in March 2020.
Arcadis, who have conducted several studies on
the Kvanefjeld Project on radiation, were retained
by GML to conduct supplemental work and
further clarify the outcomes of existing studies.
The supplemental studies will add further detail
to the EIA and is an important step in developing
the EIA to the highest standards possible.
Through this rigorous approach GML will
provide confidence to Greenland stakeholders
that the environmental impact of the Kvanefjeld
Project has been investigated rigorously. The
supplemental studies will build upon previous
assessments and are not addressing any gap or
any new environmentally critical issues.
All supplemental studies are scheduled to
be completed in Q1, 2020, and an updated
EIA incorporating the supplemental studies to
address all Type 1 issues will be lodged with the
Greenland Government around end of Q1 2020.
7
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT Operations Report (continued)
Participation Agreement with
South Greenland Community
In early March, GML entered a Memorandum
of Understanding with Kommune Kujalleq and
Kujalleq Business Council establishing the
three parties’ intention to conclude a Participation
Agreement supporting and supplementing the
Impact Benefit Agreement (IBA) which will be part
of a successful mining licence application for the
Company’s Kvanefjeld Project.
Kommune Kujalleq, headquartered in Qaqortoq,
is the municipal authority for the region of
southern Greenland which includes Narsaq and
the Kvanefjeld Project areas. Kujalleq Business
Council is the energetic local organisation
representing the local workforce and businesses.
In the Memorandum of Understanding, signed at
the PDAC Conference in Toronto on 4th March
2019, the three Parties have agreed to a timeframe
and a process for negotiating a Participation
Agreement which will cover community capacity
development in terms of needs identification and
skills development for the local workforce and
businesses. The parties have also agreed on
the importance of sharing knowledge about local
culture and land use practices with the projected
influx of Project workers.
The Memorandum is a demonstration of
community support for the Project, and a
familiarity with the Company that reflects many
years of stakeholder engagement. It marks an
important step in increased dialogue, as GML
works to establish clear toward project timelines
with the Greenland Government, which benefits
planning for local businesses and stakeholders.
8
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT COMMUNITY TIES
STRENGTHENED VIA
MEMORANDUM OF
UNDERSTANDING AND
ONGOING ENGAGEMENT
Technical Work – Laboratory
Metallurgical test work continued in Q1 and
Q2 with a main focus on the development of
a simple single stage leach for the recovery
of rare earths. The simplified leach process
significantly reduces capital and operating costs
and process complexity. The leach process
results in better overall rare earth recoveries with
the simultaneous dissolution of rare earths and
uranium. Vendor filtration test work confirmed
good filterability of the leach residues and high
wash efficiencies.
Following the completion of technical studies
in Q1 and Q2 that focussed on metallurgical
flowsheet optimisation, laboratory work shifted to
further improve radionuclide removal. This has
been highly successful with the elimination of
thorium and residual uranium from intermediate
rare earth concentrate, without rare earth
losses. This process also removes other non-
radioactive species to improve the overall purity
of intermediate rare earth concentrates. Test
work in this area is ongoing and will ensure
that intermediate products can be exported to
a number of facilities for further processing to
produce individual rare earth oxides and metals.
SGS Oretest Laboratories (Perth) has also
been successful in producing uranium oxide
(non-commercial quantities) from Kvanefjeld
ore utilising the optimised flowsheet. A detailed
chemical analysis was performed on the
resulting uranium precipitate which confirmed
that it meets all relevant specifications for a
commercial uranium oxide product (meets all
the specifications of the Orano and ConverDyn
converters). SGS Oretest Laboratories is
an independent laboratory which has full
accreditation in radiation testing and as a
storage facility.
9
GREENLAND MINERALS LIMITED – 2019 ANNUAL REPORT Operations Report (continued)
Kvanefjeld Project – Optimised Feasibility
Outcomes
The optimisation of the Kvanefjeld Project, which
has been underway since 2017, has focused
on metallurgical performance and civil design
and engineering. These studies built on the
2016 Kvanefjeld Feasibility Study, following the
commencement of cooperation with Shenghe.
The outcomes of these studies were finalised
during Q2, 2019. The reduction in the capital
cost estimate is the result of optimisation studies
covering all elements of the Project from the
flowsheet to civil construction. The results of
individual optimisation studies have been the
subject of progressive updates to the market
since 2016.
Key Outcomes:
Capital cost reduced by 40% to
US$505M
Operating costs reduced by 40%,
resulting in unit costs of 5
Years
$' 000
Total
$' 000
-
-
-
-
-
-
-
-
-
-
8,599
714
9,313
6,702
54
6,756
Dec 2019
Cash and equivalents
Trade and receivables - current
Dec 2018
Cash and equivalents
Trade and receivables - current
66
Page | 61
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Notes to the accounts
26: Financial instruments (cont’d)
credit risk.
the prior year.
(iii)
Liquidity Risk
Liquidity risk refers to maintaining sufficient cash and equivalents to meet on going
commitments, as and when they occur. The primary source of liquid funds for the
Consolidated Group, are funds the Consolidated Group holds on deposit with varying
maturity dates.
The Consolidated Group monitors its cash flow forecast and actual cash flow to
ensure that present and future commitments are provided for. As well as matching
the maturity date of funds invested with the timing of future commitments.
There was no change in managing credit risk or the method of measuring risk from
the prior year.
(iv)
Foreign Currency Risk
The Consolidated Group’s risk from movements in foreign currency exchange rates,
relates to funds transferred by the Company to the Greenland subsidiary and the
funds are held in Danish Krone (DKK). This risk exposure is minimised by only
holding sufficient funds in DKK, to meet the immediate cash requirements of the
subsidiary. Once funds are converted to DKK they are only used to pay expenses in
DKK.
(d) Liquidity risk
The following table details the Consolidated Group’s expected maturity for its non-derivative financial
assets. The tables below have been drawn up based on the undiscounted contractual maturities of
the financial assets including interest that will be earned on those assets except where the
Company/Consolidated Group anticipates that the cash flow will occur in a different period.
Weighted
Average
Effective
interest
rate
%
1.2
-
1.2
-
< 6
6 – 12
Months
Months
$' 000
$' 000
1 - 5
Years
$' 000
> 5
Years
$' 000
Total
$' 000
8,347
714
9,061
6,482
54
6,536
252
-
252
220
-
220
-
-
-
-
-
-
-
-
-
-
8,599
714
9,313
6,702
54
6,756
Dec 2019
Cash and equivalents
Trade and receivables - current
Dec 2018
Cash and equivalents
Trade and receivables - current
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Notes to the accounts
26: Financial instruments (cont’d)
The carrying amount of financial assets recorded in the financial statements, net of
any provisions for losses, represents the Consolidated Group’s maximum exposure to
There was no change in managing credit risk or the method of measuring risk from
The following table details the Consolidated Group’s remaining contractual maturity for its non-
derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows
of financial liabilities based on the earliest date on which the Group can be required to pay. The table
includes both interest and principal cash flows.
Weighted
Average
Effective
interest
rate
%
-
-
-
-
< 6
Months
$' 000
6 – 12
Months
$' 000
1 – 5
Years
$' 000
> 5
Years
$' 000
Total
$' 000
941
-
941
655
-
655
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
941
-
941
655
-
655
Dec 2019
Trade and other payables
Other liabilities
Dec 2018
Trade and other payables
Other liabilities
(e) Interest rate risk
The Consolidated Group is exposed to interest rate risk because it places funds on deposit at variable
rates. The risk is managed by the Consolidated Group by monitoring interest rates.
The Consolidated Group’s exposures to interest rates on financial assets and financial liabilities are
detailed in the liquidity risk management section of this note.
The Group has performed sensitivity analysis relating to its exposure to interest rate risk at balance
date. This sensitivity analysis demonstrates the effect on the current year results and equity post tax
which could result from a change in these risks. In the analysis a 1% or 100 basis points movement
has been applied on the assumption that interest rates are unlikely to move up more than that and
less likely to fall. This is taking into account the current interest rate levels and general state of the
economy.
There has been no change in managing credit risk or the method of measuring risk from the prior
year.
Interest Rate Sensitivity Analysis
At 31 December 2019, the effect on profit and equity as a result of changes in the interest rate, with
all other variables remaining constant would be as follows:
Change in profit
Increase in interest rate by 1% (100 basis points)
Decrease in interest rate by 1% (100 basis points)
Dec
2019
$' 000
Dec
2018
$' 000
64
(64)
61
(61)
A 1% or 100 basis points variable has been applied to the interest rate sensitivity analysis, after giving
consideration to the current interest rate levels and general state economy.
Page | 61
Page | 62
67
67
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Notes to the accounts
26: Financial instruments (cont’d)
Fair value of financial instruments
The carrying value of all financial instruments is the approximate fair value of the instruments. This is
based on the fact that all financial instruments have either a short term date of maturity or are loans to
subsidiaries.
27: Key management personnel compensation
The aggregate compensation made to key management personnel of the Consolidated Group is set
out below:
Short-term employee benefits
Bonus payments
Other benefits (i)
Post-employment benefits
Other long-term benefits – provision for
long service leave
Share-based payment
Year ended
31 Dec
2019
$
760,000
200,000
38,109
68,398
Year ended
31 Dec
2018
$
736,666
-
37,074
66,181
9,525
(178,623)
897,409
9,374
207,700
1,056,995
(i) Recognition of increase in annual leave provision resulting from the accrual of statutory
annual leave being great than the annual leave taken by the respective KMP
Refer to the remuneration report included in pages 22 to 29 of the Directors report for more detailed
remuneration disclosures.
68
Page | 63
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
The carrying value of all financial instruments is the approximate fair value of the instruments. This is
based on the fact that all financial instruments have either a short term date of maturity or are loans to
27: Key management personnel compensation
The aggregate compensation made to key management personnel of the Consolidated Group is set
Notes to the accounts
26: Financial instruments (cont’d)
Fair value of financial instruments
subsidiaries.
out below:
Short-term employee benefits
Bonus payments
Other benefits (i)
Post-employment benefits
Other long-term benefits – provision for
long service leave
Share-based payment
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Year ended
Year ended
31 Dec
2019
$
760,000
200,000
38,109
68,398
31 Dec
2018
$
736,666
-
37,074
66,181
9,525
(178,623)
897,409
9,374
207,700
1,056,995
(i) Recognition of increase in annual leave provision resulting from the accrual of statutory
annual leave being great than the annual leave taken by the respective KMP
Refer to the remuneration report included in pages 22 to 29 of the Directors report for more detailed
remuneration disclosures.
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GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
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71
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Notes to the accounts
29: Transactions with related parties
Simon Cato is a Non-executive Director and Chairman of Advanced Share Registry Limited. Advanced
Share Registry Limited provides share registry services to Greenland Minerals Limited. These services
are supplied on normal commercial terms and Mr Cato does not receive any remuneration from
Advanced Share Registry Limited based on the supply of share registry services to the Consolidated
Group. For the year ended 31 December 2019 $42,814 was paid to Advance Share Registry Limited for
services provided (Dec 2018: $47,304).
30: Parent Company information
Financial position
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated Losses
Total Equity
Financial Performance
Profit (Loss) for the year
Total comprehensive income
Parent
Dec
2019
$' 000
Dec
2018
$' 000
9,260
85,922
95,182
1,238
709
1,947
93,235
6,738
84,296
91,034
902
160
1,062
89,972
371,808
20,439
(299,012)
93,235
365,247
20,160
(295,435)
89,972
(3,577)
(3,577)
641
641
Contingent liabilities
The parent company has no contingent liabilities as at 31 December 2019 or 2018.
Guarantees
Greenland Minerals Limited has guaranteed the provision of funding and support to the Company’s
100% held subsidiary, Greenland Minerals A/S). This funding forms part of the Consolidated Group’s
approved budgeted expenditure.
Greenland Minerals Limited placed $220,000 into a deposit account with the Company’s bank. This
deposit is held by the bank as security over the Company’s corporate credit cards on issue.
A deposit of $32,604 is held as a bank guarantee on the Company’s leased office in Perth.
72
Page | 67
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Notes to the accounts
29: Transactions with related parties
Simon Cato is a Non-executive Director and Chairman of Advanced Share Registry Limited. Advanced
Share Registry Limited provides share registry services to Greenland Minerals Limited. These services
are supplied on normal commercial terms and Mr Cato does not receive any remuneration from
Advanced Share Registry Limited based on the supply of share registry services to the Consolidated
Group. For the year ended 31 December 2019 $42,814 was paid to Advance Share Registry Limited for
services provided (Dec 2018: $47,304).
30: Parent Company information
Financial position
Total Current Assets
Total Non-Current Assets
Total Assets
Total Current Liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Issued Capital
Reserves
Accumulated Losses
Total Equity
Financial Performance
Profit (Loss) for the year
Total comprehensive income
Contingent liabilities
Guarantees
Parent
Dec
2019
$' 000
Dec
2018
$' 000
9,260
85,922
95,182
1,238
709
1,947
93,235
6,738
84,296
91,034
902
160
1,062
89,972
371,808
20,439
(299,012)
93,235
365,247
20,160
(295,435)
89,972
(3,577)
(3,577)
641
641
The parent company has no contingent liabilities as at 31 December 2019 or 2018.
Greenland Minerals Limited has guaranteed the provision of funding and support to the Company’s
100% held subsidiary, Greenland Minerals A/S). This funding forms part of the Consolidated Group’s
approved budgeted expenditure.
Greenland Minerals Limited placed $220,000 into a deposit account with the Company’s bank. This
deposit is held by the bank as security over the Company’s corporate credit cards on issue.
A deposit of $32,604 is held as a bank guarantee on the Company’s leased office in Perth.
Notes to the accounts
31: Remuneration of auditors
Auditor of the parent entity
Audit or review of the financial report
Other assurance services
Related practice of the parent entity auditor
Audit or review of the financial report
Non-audit services – taxation
Non-audit services – other
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Dec
2019
$
Dec
2018
$
90,825
8,400
99,225
90,825
8,400
99,225
Dec
2019
$
Dec
2018
$
30,801
1,830
2,261
34,892
29,750
1,806
1,806
33,362
The auditor of Greenland Minerals Limited is Deloitte Touche Tohmatsu.
32: Subsequent Events
Subsequent to the end of the financial year there have been considerable economic disruptions arising
from the outbreak of COVID-19 virus. The Group considers this to be a non-adjusting post balance
sheet event. At the date of signing the financial report the Group is unable to determine what financial
effects the outbreak of the virus could have on the Group in the coming financial period. The Groups
has clear lines of communications in place with Greenland Government departments and has been
informed that they are structured and positioned to be able to coordinate the review of updated EIA
material.
Once outstanding Kvanefjeld Project EIA issues have been satisfied, the Group will be working with
Greenland to plan a public consultation period. At the point of commencement of public consultation, the
impact assessments and non-technical summaries are made available on the Government of Greenland
website. Public meetings are typically part of this process. The Group will communicate with Greenland
on the logistics of conducting public meetings, primarily in southern Greenland, when the government is
satisfied that they are ready to present the Project for consultation. The Group will look to keep the
market informed of developments concerning the status of the EIA, the scheduling of a public
consultation period, and how this important process will be conducted.
No financial effects arising from the economic impacts of the virus have been included in the financial
results for the year ended 31 December 2019.
The Company has already implemented a number of actions, with a range of expenditure containment
measures designed to deal with prolonged economic and logistical impacts of the COVID19 outbreak.
Further contingency measures have been considered and will be implemented as is deemed necessary.
Given the inherent unpredictability associated with the COVID-19 outbreak and any further contingency
measures that may be put in place by the relevant governments and corporate entities combined with
customer behaviours, the actual financial impact of the COVID-19 outbreak, if any, on the Group’s 2020
financial statements could be significantly different from the estimates disclosed above depending on
how the situation evolves.
There have been no other matters or circumstances occurring subsequent to the financial year that has
significantly affected, or may significantly affect, the operations of the Consolidated Group, the results of
those operations, or the state of affairs of the Consolidated Group in future years.
Page | 67
Page | 68
73
73
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Additional stock exchange information as at 19th February 2020
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Consolidated Group secretary
Miles Guy
Registered office
Unit 7, 100 Railway Road, Subiaco
Western Australia, 6008
Share registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia, 6009
Principal administration office
Unit 7, 100 Railway Road, Subiaco
Western Australia, 6008
Table of exploration licences
Exploration Licence
EL 2010/02
Location
Southern Greenland
Ownership
100% held by Greenland Minerals A/S
Number of holders of equity securities
Ordinary share capital
1,190,982,530 fully paid ordinary shares are held by 5,348 individual shareholders.
74
Page | 69
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
Additional stock exchange information as at 19th February 2020
Additional stock exchange information as at 19th February 2020
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Greenland Minerals Limited
And Controlled Entities
31 December 2019 Financial Report
Substantial Shareholders
Shareholder
1.
2.
3.
4.
Citicorp Nominees Pty Limited
JP Morgan Nominees Pty Limited
Le Shan Shenghe Rare Earth Company Limited
HSBC Custody Nominees (Australia) Limited
Number
198,743,205
160,859,117
125,000,000
77,568,717
Percentage
16.9%
13.5%
10.5%
6.5%
Distribution of holders of quoted shares
Share Spread
Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
382
958
898
2,331
779
5,348
Units
139,781
3,343,102
7,383,586
92,153,533
1,087,962,528
1,190,982,530
Percentage
0.012%
0.281%
0.620%
7.738%
91.350%
100%
Twenty largest holders of quoted shares
Consolidated Group secretary
Miles Guy
Registered office
Unit 7, 100 Railway Road, Subiaco
Western Australia, 6008
Share registry
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia, 6009
Principal administration office
Unit 7, 100 Railway Road, Subiaco
Western Australia, 6008
Table of exploration licences
Exploration Licence
Location
Ownership
EL 2010/02
Southern Greenland
100% held by Greenland Minerals A/S
Number of holders of equity securities
Ordinary share capital
1,190,982,530 fully paid ordinary shares are held by 5,348 individual shareholders.
BNP Paribas Noms Pty Limited
Peto Pty Ltd <1953 Super Fund A/C>
Simon Millington
Tadea Pty Ltd
JP Morgan Nominees Australia Limited
Le Shan Shenghe Rare Earth Company Limited
Ordinary shareholders
1. Citicorp Nominees Pty Limited
2.
3.
4. HSBC Custody Nominees (Australia) Limited
5.
6.
7. Merrill Lynch (Australia) Nominees Pty Limited
8.
9.
10. John Mair
11. M & H Andrusiewicz
12. Jiahuang Zhang
13. Melda Super Pty Ltd
14. Simon Cato
15. Adonis Kiritsopoulos & Jennifer Ford
16. Sie Lung Kwee
17. Catchpole Investments Pty Ltd
18. G, D & D Iessini
19. Yu Jing Cheing
20. Anthony Ho
Fully paid ordinary shares
Percentage
16.9%
13.5%
10.5%
6.5%
3.8%
2.9%
2.4%
0.8%
0.7%
0.7%
0.6%
0.6%
0.6%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.3%
62.6%
Number
198,743,205
160,859,117
120,000,000
77,568,717
44,993,635
35,000,000
28,960,076
10,000,000
8,550,000
8,364,062
7,000,000
6,900,000
6,580,000
6,389,594
5,000,000
4,756,779
4,175,000
3,931,505
3,900,000
3,875,610
745,547,300
Page | 69
Page | 70
75
75
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT
76
GREENLAND MINERALS LIMITED – 2019 ANNUAL FINANCIAL REPORT THE COMPANY’S APPROACH CONTINUES
TO BE ONE OF PRODUCING EXTREMELY
RIGOROUS IMPACT ASSESSMENTS
THAT CAN PROVIDE CONFIDENCE TO
REGULATORS AND TO STAKEHOLDERS.
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GREENLAND MINERALS
LIMITED
Registered Office & Principal
Place of Business
Unit 7, 100 Railway Road,
Subiaco, Western Australia, 6008
Postal Address
PO Box 2006,
Subiaco, Western Australia, 6904
Tel: +61 8 9382 2322
Fax: +61 8 9382 2788
www.ggg.gl