GREAT WESTERN EXPLORATION LIMITED
AND CONTROLLED ENTITIES
ABN 53 123 631 470
ANNUAL REPORT
30 JUNE 2022
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
CORPORATE DIRECTORY
Directors
Auditor
Kevin Clarence Somes (Chairman)
Shane Pike (Managing Director)
Grey Egerton-Warburton (Director)
Ross Williams (Director)
Company Secretary
Anthony Walsh
Principal Office
Level 2, 160 St Georges Terrace
Perth, Western Australia 6005
Telephone (08) 6311 2852
Share Registry
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia 6000
Telephone: 1300 787 272
Facsimile: (08) 9323 2033
Website:
www.greatwesternexploration.com.au
Hall Chadwick WA Audit Pty Ltd (Formerly
known as Bentleys)
283 Rokeby Road
Subiaco WA 6008
Solicitors
Steinepreis Paganin
16 Milligan Street
Perth, Western Australia 6000
Stock Exchange
The Company’s shares are listed by the
Australian Securities Exchange Limited
The home exchange is Perth
ASX Code - Fully paid ordinary shares GTE
GREAT WESTERN EXPLORATION LIMITED
CONTENTS
Review of Operating and Corporate Activities
Sustainability
Directors’ Report
Consolidated Statement of Profit or Loss and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor’s Report
Additional Information
2
23
24
38
39
40
41
42
78
79
80
85
GREAT WESTERN EXPLORATION LIMITED
REVIEW OF OPERATING AND CORPORATE ACTIVITIES
Executive Summary
Great Western Exploration Limited (ASX: GTE) (“the Company”, “Great Western”) is pleased to provide a
review of its operating and corporate activities for the year ended 30 June 2022.
Summary
• Drilling commenced at the Yandal West Project, testing electromagnetic geophysical targets and
interpreted structural gold lodes, with drilling completed subsequent to the end of the June 2022
Quarter.
• Multiple drill intersections of sulphide mineralisation validated the prospectivity of Yandal West’s
electromagnetic (EM) targets, and drilling at the Company’s Harris’ Find Prospect interpreted to have
intersected a gold mineralised structure (see ASX announcement 31 August 2022).
•
A new and highly prospective Nickel-PGE Target, Ready1, was defined on Great Western’s 100%
owned Golden Corridor Project. The target has coincident Nickel-PGE geochemical and geophysical
anomalism and is located on interpreted major geological structures. Two discrete parallel anomalous
Nickel-PGE trends were identified immediately west of Ready1.
• Golden Corridor - Assay results from Ultrafine+ soil sampling defined a number of gold in soil
anomalies across the GC1 – GC4 structural targets and elsewhere across the Golden Corridor Project.
• Geological review, planning, and prioritisation of exploration continues on all Great Western’s portfolio
of projects.
•
•
Experienced geologist, Mr Shane Pike joined the Company as Managing Director in April 2022.
$3.5mil fund raised by way of a placement in May and June 2022.
Great Western looks forward to continuing to update shareholders, in what will be a period of high intensity
exploration activity.
2
GREAT WESTERN EXPLORATION LIMITED
Operating Activities
Yandal West (GTE 100% - E53/1369, GTE80% - E53/1612 & E53/1816)
The Yandal West Project is located within the world-class Yandal Greenstone Belt, approximately 55km north
of the Bronzewing Gold Mine and 60km south of the Jundee Gold Mine.
Drilling commenced during the June 2022 Quarter on several electromagnetic (EM) geophysical targets,
interpreted as potential metal rich VMS style sulphide accumulations (Figure 1). Additionally, interpreted
structural gold lodes targets at Harris’ Find were tested. Subsequent to the year ended 30 June 2022, the
Company announced that drilling of 12 holes for 1,610m (Figure 1) had been completed (see ASX
announcement 21 July 2022), with significant results returned from Harris’ Find including:
•
•
12m @ 2.09g/t Au from 35m, GYWRC009, and
3m @ 3.10g/t Au from 53m, GYWRC010 (see ASX announcement 31 August 2022).
Figure 1: Location of EM anomalies over interpreted geology, with latest drilled holes displayed in blue.
3
GREAT WESTERN EXPLORATION LIMITED
Harris’ Find is a shallow drill defined gold mineralisation system within the highly prospective Yandal
Greenstone Belt, host to the multi-million-ounce Jundee and Bronzewing Gold Deposits. Significant gold
results were returned from recent Harris’ Find drilling, where the Company tested extensions to mineralisation
below mid-1990s drilling that previously recorded 6m @ 4.91g/t Au (Great Western Exploration ASX
Announcement 11 November 2019). Three holes tested the Harris’ Find Structure, with holes GYWRC009 and
GYWRC010 recorded significant assay results, shown in Table 1, and Figure 1 and Figure 2 below.
Table 1: Significant Gold Assay Results from the Harris’ Find Prospect (see Table 2 for attributes and Appendix 1 for full
details on the assay results). Only significant results (>0.5g/t Au) have been reported in this table.
Drill hole
GYWRC009
GYWRC010
Drill Type
From
To
Drill Intercept
RC
Including
and
RC
Including
35
38
43
53
54
49
40
45
57
55
12m @ 2.1 g/t Au
2m @ 4.7 g/t Au
2m @ 3.6 g/t Au
3m @ 3.1 g/t Au
1m @ 5.0 g/t Au
GYWRC011
RC
124
125
1m @ 1.5 g/t Au
4
GREAT WESTERN EXPLORATION LIMITED
Figure 2: Location of reported drill-holes at Harris' Find and Electromagnetic targets
5
GREAT WESTERN EXPLORATION LIMITED
Drilling completed in the mid-1990s reported shall gold intercepts, with the average depth of these holes less
than 40m. The reported assays from GYWRC009 and GYWRC010 verify and extend these high-grade assays,
with significant potential to define further mineralisation at depth down plunge and along strike to the north and
south (Figure 3).
Figure 3: Harris' Find longitudinal section, with previously reported drill intercepts displayed, coloured by gold grams x
drilled metres (GTE ASX Announcement 11 November 20191). Hole GYWRC010 was designed to at least 20m below hole
GYWRC009, but unfortunately deviated significantly and intersected the structure in a similar position as hole GYWRC009.
Six follow-up drill-holes have been designed to further delineate the lode (Figure 3), with at least one of these
holes to be diamond core drilled to give a better understanding of the structural controls on mineralisation. The
Company plans to undertake this follow-up drilling program once access approvals are in place.
The Yandal West Drilling programme also tested the highly prospective EM targets Huntsman, Wolf Spider,
Redback and Daddy Long-Legs, with the intersection of sulphide mineralisation in all holes validating the XCite
EM conductor targets. Semi-massive and disseminated sulphide mineralisation was most pronounced at the
Huntsman and Wolf Spider prospects, shown in Figure 4 and Figure 5.
6
GREAT WESTERN EXPLORATION LIMITED
Figure 4: Cross-Section of Great Western drilling and associated significant sulphide intersections at the Huntsman
Prospect, displaying good correlation with the modelled EM conductor plate.
7
GREAT WESTERN EXPLORATION LIMITED
Figure 5: Cross-section of Great Western drilling and associated sulphide intercept at the Wolf Spider Prospect displaying
good correlation with the modelled EM conductor plate.
Unfortunately, no significant assays were returned from these sulphide zones, with only anomalous results
received.
Golden Corridor Project (100% Great Western)
Great Western Exploration holds 1,100 km2 of terrane immediately north of the multi-million-ounce Wiluna
gold deposit and within the “Golden Corridor”, which extends from Kambalda in the south to Plutonic in the
north. This belt is host to many of Australia’s largest gold and nickel deposits (shown in Figure 6). It is
8
GREAT WESTERN EXPLORATION LIMITED
interpreted that this Archean greenstone sequence is obscured by shallow cover and extends north into the
Company’s Golden Corridor Project, providing significant potential for substantial deposits of gold, nickel,
PGEs, and copper to be discovered.
Figure 6: The Golden Corridor is host to many of Australia’s largest gold and nickel deposits.
Several gold Ultrafine+ soil anomalies were defined during the March 2022 quarter within the project,
coincident with structural targets GC1 to GC4 (Figure 7). The gold anomalism correlates strongly with structural
breaks within the Golden Corridor trend that runs NNW from Wiluna, and areas of shallower interpreted
Proterozoic cover. The gold anomalism highlighted within the soils is significant given the interpreted cover
over the Archaean bedrock targets, and that this cover may subdue any geochemical signature of the
underlying Archaean bedrock targets.
The identification of an unexplored greenstone sequence with large regional scale faults, under relatively
shallow cover that coincides with anomalous gold in Ultrafine+ soils is a strong indication that the sequence is
highly prospective for significant gold mineralisation. The Company intends to undertake further field work
focusing on the GC1 to GC4 target areas, where the Company has already acquired detailed aeromagnetic
and preliminary passive seismic HVSR data.
9
GREAT WESTERN EXPLORATION LIMITED
Figure 7: The upgraded GC1 to GC4 aeromagnetic structural targets in relation to the anomalous gold contours. These
coincident areas will be the initial focus of follow-up work.
The Ready1 Nickel-PGE target was defined by Ultrafine+ soil sampling and an anomalous electromagnetic
response from Geoscience Western Australia’s SkyTem (AEM) survey. Interpretation of the AEM survey by
Great Western and in conjunction with geophysical consultant Newexco, revealed stacked, conductive
structures that strongly correlate to a 4km long by 1km wide NW-SE striking Ultrafine+ Ni-PGE anomaly (Figure
8).
Great Westerns’ field investigation of the Ready1 Target gives further encouragement of the target’s potential.
A mineralised basalt outcrop was identified, with a petrological study identifying the outcrop as a tholeiitic
basalt/dolerite, mineralised with minor pyrite and trace magnetite and chalcopyrite. It is interpreted that this
mineralised mafic outcrop and associated Ni-PGE anomalism is prospective for Norilsk (Siberia) style deposits,
one of the world’s largest nickel deposits.
Additionally, two parallel trending and discrete platinum anomalies were identified immediately west of Ready1,
also with coincident anomalous electromagnetic response (Figure 8). The most continuous of these anomalies
measured near 10km along strike.
10
GREAT WESTERN EXPLORATION LIMITED
Figure 8: Ready1 Anomalous Nickel-Platinum soil and electromagnetic anomaly and parallel discrete anomalism west of
this target
Exploration is being prioritised for the Ready1 target and the nearby parallel Ni-PGE anomalies. Infill Ultrafine+
soil sampling has already been completed and geophysical methods will be utilised and potentially followed
by drill testing.
Yerrida South Project (100% GTE)
Promising Ni-PGE-Cu anomalism was identified at the Yerrida South Project, located 50km south-south-east
of Sandfire’s (ASX: SFR) DeGrussa copper-gold operation (Figure 9). A total of 2,079 assays from a 3,108
Ultrafine Sampling program were received identifying several anomalous zones. Great Western anticipates
that the forthcoming further work on this anomalism will result in a number of compelling drill targets being
defined.
11
GREAT WESTERN EXPLORATION LIMITED
Figure 9: Yerrida South Ni-PGE-Cu anomalous areas of interest.
Fairbairn Base Metal Project (100% Great Western)
Great Western has a very large 960 sq.km strategic land position in the rapidly evolving Earaheedy Basin, the
100% owned “Fairbairn Base Metal Project”. Great Western has long held the view that the Fairbairn Project
on the margin of the Yilgarn Craton is highly prospective for base metals and established its initial land position
in the region prior to the discovery at Julimar by Chalice Mining Ltd (ASX.CHN). The Fairbairn Base Metal
Project is situated near the northern boundary of the Yilgarn Craton approximately 900km north-east of Perth
(see Figure 10).
The majority of previous exploration completed at the Fairbairn Project was undertaken from the late 1980s to
the mid-1990s, primarily exploring for diamonds. This exploration included magnetic surveys, surface
sampling, RC drilling, diamond drilling and petrology. Anomalous nickel results were recorded from drilling
within sheared and altered ultramafic rocks, prospective for magmatic sulphide style deposits such as Julimar.
During the June 2022 Quarter further review of previous exploration was undertaken, including interpretation
of airborne electromagnetic data completed by Geoscience Australia (AusAem). This interpretation completed
by geophysics consultants Newexco, identified a number of anomalous peaks requiring further investigation.
An airborne electromagnetic survey is planned for October 2022 to better delineate targets.
12
GREAT WESTERN EXPLORATION LIMITED
Figure 10: Fairbairn Project location is shown near to the interpreted margin of the Yilgarn Craton similar to Julimar in the
west and Nova in the south-east.
Yerrida North JV (Sandfire Resources earning 70%)
During the June Quarter 2022, Sandfire Resources Limited (ASX: SFR) (“Sandfire”) reviewed 1,583 lag and
513 magnetic lag samples in respect to lithology, structure, and potential deposit type. Two areas were
identified from this review as prospective for Zn-rich VMS mineralization and prioritised for further exploration,
Chinook and Summit, shown in Figure 11. Further soil sampling on these targets was completed on a nominal
400m x 400m pattern, with 123 samples taken (42 at Chinook, 81 at Summit); results are pending.
As previously advised, Sandfire reached its minimum expenditure commitment in late 2019, by spending $1.7
million over three years. Great Western looks forward to the continued exploration being undertaken by
Sandfire under the JV, where field works continue prior to potential drill testing.
Under the terms of the joint venture, Sandfire can earn a 70% interest by sole funding exploration to define a
mineral resource of at least 50,000 tonnes of contained copper or copper equivalent under the JORC 2012
code. Great Western is free carried until that time. Sandfire can then choose to earn a further 10% by sole
funding the completion of a Feasibility Study (as that term is defined in the JORC Code 2012 Edition) sufficient
to justify a decision to mine.
13
GREAT WESTERN EXPLORATION LIMITED
Pursuant to the joint venture agreement, Sandfire’s earn-in is subject to it maintaining the joint venture
tenements in good standing and meeting all statutory expenditure conditions relating to the joint venture
tenements. During the September Quarter 2021, Sandfire advised the Company that eight of the joint venture
tenements (see Appendix 1: Tenement Schedule at 30 June 2022) are the subject of a plaint application by a
third party in the Warden’s Court. The outcome of this plaint application is unknown at the date of this report.
The Company, with the support of Sandfire, intends to seek orders in the Warden’s court for the dismissal of
the plaint applications.
Figure 11: Gavin Daneel’s regional geological map overlain with soil samples taken in 2021 (brown), and those taken in
2022 shown in red.
Lake Way Potash Project (100% Great Western)
Great Western’s 100% owned Lake Way Potash Project includes the directly adjoining downstream
continuation of the main basal channel that forms the basis of Salt Lake Potash Limited (ASX: SO4) potash
project (see Figure 12).
In 2021 Quarter Great Western was granted a 26D license by the Department of Water for ‘Construction of a
Bore’ across the Company’s Lake Way Potash Project area. This license permits the Company to construct a
network of up to 40 exploratory bores, 20 monitoring bores and 10 production bores across the Project
footprint.
Great Western has been working with highly regarded industry veteran hydrogeologist Mr Kevin Morgan of KH
Morgan and Associates to assist the Company in preparing work programmes to advance the Project. In early-
July 2021, a low-cost passive seismic survey was completed on the Lake Way Potash Project (see ASX
announcement dated 8 July 2021).
While not a current priority, in due course these low-cost works and technical assessment will be completed,
and the Company looks forward to communicating those outcomes at that time.
14
GREAT WESTERN EXPLORATION LIMITED
Figure 12: Interpreted continuation of the Lake Way high grade potassium brine paleochannel into GTE’s Lake Way Potash
Project
Firebird Gold Project (GTE/Jindalee Resources Limited (JRL) JV GTE
earning 80%)
The Firebird Gold Project (“Firebird”) is located 4kms west of Western Gold’s (ASX: WGR) Gold Duke Project
and 30kms south-west of Wiluna in WA. Within Firebird is a large strong gold-in-soil anomaly located in a
prospective geological setting with a strike over 2.1km and up to 350m wide. The anomaly comprises several
higher-grade zones (Au >6 ppb with peak Au of 20ppb) that are interpreted to be co-incident with underlying
NNW-SSE trending structures. The eastern zones also display an association with arsenic which is a common
feature of Archaean lode gold deposits in general and gold deposits in the Wiluna district in particular.
In addition, a number of highly prospective structural targets were identified within the Project area along strike
to the north and south from the gold in soil anomaly. Derived from aeromagnetic data, these targets are
interpreted as ultramafic/BIF sequences similar to those observed at the Gold Duke Project. These targets will
be prioritised in the upcoming surface sampling programme.
The large untested soil anomaly was identified to sit on the boundary of 100% Great Western owned tenure.
Great Western has secured the additional tenure to the east covered by the untested soil anomaly in a joint
venture with Jindalee Resources Limited (ASX.JRL). Firebird is now made up of three granted tenements,
E53/1894 (100% GTE), E53/2027 (100% GTE) and E53/2129 (GTE earning 80%) (see Figure 13). Discussions
with the traditional owners of the land that covers the Firebird Project are ongoing.
15
GREAT WESTERN EXPLORATION LIMITED
Great Western’s initial field work programme at the Firebird Gold Project and the broader Project area will
include infill and extensional soil sampling, mapping and follow-up drilling targeting both the geochemical
anomalies and the highly prospective structural targets.
Figure 13: Firebird Gold Project in relation to the WGR’s Gold Duke Project and GTE’s Yerrida South, Golden Corridor &
Sandfire JV projects.
16
GREAT WESTERN EXPLORATION LIMITED
Thunder (100% Great Western)
During the December Quarter 2021 the Company completed a RC drilling campaign at the 100% owned
Thunder Copper-Gold Target, 40kms west of Wiluna and 112kms from Sandfire’s (ASX: SFR) DeGrussa
copper-gold operation (Figure 14).
Great Western completed 11 RC holes for 1,452 metres drilled to an average depth of 132 metres to test the
EM anomaly at Thunder and the Ultra Fine + soil anomalies.
The drilling assays did not report significant results, with only minor anomalous copper and silver at shallow
depths (<50m) associated with a sequence of partially oxidised and altered black shales and siltstones. The
minor anomalous silver (Ag) and copper (Cu) includes 1m @ 2.4g/t Ag from 23m and 1m @ 0.19% Cu from
40m in GTHR001, 2m @ 5.15g/t Ag from 10m in GTHR0006 and 1m @ 2.6g/t Ag from 13m in GTHR010.
Figure 14: Location of Thunder copper-gold target
17
GREAT WESTERN EXPLORATION LIMITED
Copper Ridge Project (100% Great Western)
The Copper Ridge Project is located within the southern portion of the Yerrida Basin and is approximately
40km west of Wiluna (Figure 15).
During the September 2021 Quarter assay results were received from Great Western’s RC drilling programme
undertaken at the Copper Ridge Project in June 2021. The geology intercepted at Copper Ridge comprised of
a mix of weathered and fresh shales, sandstones and siltstones with broad zones of disseminated sulphides
(believed to be mainly pyrite).
While significant drill results were not received, drilling did intercept a broad area of anomalous copper and
silver (refer Great Western announcement of 18 August 2021) at shallow depths (<30m) associated with a
sequence of pale and black shales.
Due to the association with anomalous copper and silver grades, hosted in the appropriate rock types within a
continental margin (Yerrida Basin) tectonic setting, the Company interprets the results indicate the potential
for sedimentary hosted stratiform copper deposits within the southern portion of the Yerrida Basin.
Figure 15: Drill holes completed at the Copper Ridge copper-gold Project.
Atley Gold Project (100% Great Western)
The Atley Gold Project is located in the Youanmi district of Western Australia, 30km southwest of Sandstone
(Figure).
The Golden Bullock gold target is a large gold surface geochemical anomaly with a strike length of 2.5km and
width of 1.5km, located within the Company’s Atley North Gold Project (Figure). The Company completed RC
drilling on the western side of the large gold-in-soil geochemical anomaly in 2021, with modest results returned.
The prospective eastern side gold anomalies have subsequently been cleared for drill testing and the
Company looks forward to drilling these targets, potentially in conjunction with the next phase of drilling at
Yandal West.
18
GREAT WESTERN EXPLORATION LIMITED
Figure 16: Location of the Atley Gold Project within the Youanmi District, WA
19
GREAT WESTERN EXPLORATION LIMITED
Figure 17: Drill holes completed at the Golden Bullock Gold Target.
20
GREAT WESTERN EXPLORATION LIMITED
Corporate
Appointment of Shane Pike as Managing Director
In April 2022 Quarter experienced geologist, Mr Shane Pike joined Great Western as Managing Director,
replacing Mr Tom Ridges. Mr Pike is a geologist with well over 20 years of successful technical and
management experience and proven track record in gold and base metals exploration, discovery, project
development and in both open pit and underground mining.
Mr Pike holds a Bachelor of Applied Science (Double Major Geology). Prior to joining the Company, Mr Pike
was Exploration Manager (East Coast) for Evolution Mining Limited (ASX: EVN) (7 years), and Senior
Exploration Geologist for Newcrest Mining Limited (ASX: NCM) (3 years) and Equigold NL (9 years). Mr Pike
also served as Chief Executive Officer of Santana Minerals.
Fund Raisings
In May and June 2022, the Company completed a fund raising of $3.5 million (before costs) by way of a
placement of 43,750,000 ordinary shares at an issue price of $0.08 per share (“Placement”) to professional
and sophisticated investors. The Placement ensures that Great Western is fully funded for its current
exploration plans.
Euroz Hartleys Limited and Peloton Capital acted as Joint Lead Managers for the Placement. Great Western
directors, Kevin Somes, Ross Williams and Grey Egerton-Warburton participated in the Placement following
shareholder approval at a General Meeting held on 20 June 2022.
Junior Mineral Exploration Incentive
Subsequent to 30 June 2022, the Company was successful in its application for participation in the Federal
Government’s Junior Mineral Exploration Incentive (“JMEI”) Scheme for the 2022/2023 tax year. Great
Western has received an allocation of up to $1,140,000 in JMEI credits for the 2022/2023 tax year.
The Federal Government’s JMEI scheme encourages investment in exploration companies that undertake
greenfields mineral exploration in Australia, by allowing these exploration companies to forgo a portion of their
carried forward tax losses that have arisen from allowable expenditure on "greenfield" exploration for potential
distribution to eligible investors. Great Western wish to acknowledge the support of the Federal Government
in making the JMEI available.
References
1. 3D Geological models of the Eastern Yilgarn Craton, Project Y2. Predictive Mineral Discovery
Cooperative Research Centre (“pmd*CRC”) 2004 (A collaborative research initiative involving CSIRO,
Geoscience Australia, AMIRA and Universities)
2. Large, Strong EM Anomaly Enhances Prospectivity of Thunder – ASX Announcement – 28/07/2021
3. Large Strong Gold Anomaly at Firebird Gold Project – ASX Announcement – 23/08/2021
4. Copper Ridge Assays Enhance Regional Prospectivity at Yerrida South – ASX Announcement -
GTE.ASX – 18/08/2021
5. Golden Bullock Assays Received, New Drill Targets Identified – ASX Announcement – GTE.ASX –
17/04/2021
21
GREAT WESTERN EXPLORATION LIMITED
Competent Person Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based
on information compiled by Mr. Shane Pike who is a member of the Australian Institute of Mining and
Metallurgy. Mr. Pike is an employee of Great Western Exploration Limited and has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Pike consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the Company’s Exploration Results is a compilation of previously
released to ASX by Great Western Exploration (11/11/2019, 16/07/2021, 21/02/2022, 3/03/2022, 21/03/2022,
9/06/2022, 21/07/2022, 29/07/2022, 31/08/22) Mr. Shane Pike consents to the inclusion of these Results in
this report. Mr. Pike has advised that this consent remains in place for subsequent releases by the Company
of the same information in the same form and context, until the consent is withdrawn or replaced by a
subsequent report and accompanying consent. The Company confirms that it is not aware of any new
information or data that materially affects the information included in the original market announcements and
that all material assumptions and technical parameters in the market announcements 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 market announcements.”
22
GREAT WESTERN EXPLORATION LIMITED
Sustainability
Great Western Exploration Limited and the Board are dedicated to being a leading and sustainable Australian
exploration company built on exploration and corporate success for the benefit of all of its stakeholders. During
the year, the Company has reviewed and updated its Sustainability policies. These policies apply to all our
personnel and implementation of these policies and their supporting standards and procedures are required
across all the Company exploration operations.
The Company’s
www.greatwesternexploration.com.au
sustainability policies
can be
viewed on
the Company’s website at:
Environment
The Company aspires to being effective environmental guardians and managing our impacts, whilst both
achieving operational excellence and fulfilling our corporate social responsibilities. The Company is committed
to positive environmental management outcomes to maintain and enhance performance.
The Company acknowledges the threat posed by climate change and will work to decarbonise our business
in a measured, proportionate and sustainable manner.
Community
The Company seeks to create enduring value for our local communities and limiting our negative impacts,
whilst both achieving operational excellence and fulfilling our corporate social responsibilities.
Health & Safety
The Company seeks to minimise the harm caused by workplace hazards whilst both achieving operational
excellence and fulfilling our corporate social responsibilities. The Company is committed to leadership in health
and safety through the use of responsible and reliable management systems to maintain and enhance
performance.
Governance
Great Western Exploration Limited and the Board are committed to achieving and demonstrating the highest
standards of corporate governance. Great Western Exploration has reviewed its corporate governance
practices against the Corporate Governance Principles and Recommendations (4th edition) published by the
ASX Corporate Governance Council.
The 2022 Corporate Governance Statement was approved by the Board on 8 September 2022 and is current
as at 8 September 2022. A description of the Group’s current corporate governance practices is set out in the
Group’s Corporate Governance Statement which along with the 2022 Appendix 4G can be viewed on the
Company’s website, www.greatwesternexploration.com.au.
23
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT
The Directors present the annual report of the Consolidated Group (“the Group) for the year ended 30 June
2022.
DIRECTORS
The names of the Directors in office during the year and until the date of this report are as below. Directors
were in office for the entire period unless otherwise stated.
Shane Pike
Thomas Ridges
Kevin Clarence Somes
Managing Director (Appointed 19 April 2022)
Managing Director (Resigned 14 April 2022)
Chairman
Grey Egerton-Warburton
Non-executive Director
Ross Williams
Non-executive Director
Mr Kevin Clarence Somes FCA
Non-executive Chairman
Experience and Expertise
Mr Somes is a fellow of the Institute of Chartered Accountants and was a partner of Somes & Cooke Chartered
Accountants for over 25 years.
Mr Somes has extensive experience in the management of exploration companies, with Somes & Cooke being
the auditors of a number of ASX listed mining companies during his tenure.
Other current directorships
None.
Former directorships in last three years
None.
Share and Option holding in the Company
5,517,233 Ordinary Shares
24
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
Mr Shane Pike
Managing Director
Experience and Expertise
Mr Pike is a geologist with well over 20 years’ of successful technical and management experience and a
proven track record in gold and base metals exploration, discovery, project development in both open pit and
underground mining. Mr Pike holds a Bachelor of Applied Science (Double Major Geology). Mr Pike was
Exploration Manager (East Coast) for Evolution Mining Limited (ASX: EVN) (7 years), and Senior Exploration
Geologist for Newcrest Mining Limited (ASX: NCM) (3 years) and Equigold NL (9 years). Mr Pike also served
as Chief Executive Officer of Santana Minerals.
Other current directorships
None.
Former directorships in last three years
None.
Share and Option holding in the Company
Nil Ordinary Shares
5,000,000 zero exercise priced options which expire on 20/06/2027, (subject to Mr Pike remaining in
employment during the relevant vesting period) and vesting on certain conditions.
Mr Grey Egerton Warburton
Non-executive Director
Experience and Expertise
Grey Egerton-Warburton has a strong background in corporate finance, with extensive experience in equity
capital markets, acquisitions, divestments and domestic and international change of control transactions. Grey
has led a substantial number of capital raisings and led many successful takeovers and mergers for ASX listed
companies, across many sectors. Prior to his career in corporate finance Mr Egerton-Warburton practiced as
a corporate solicitor at a tier one national law firm.
Other current directorships
None.
Former directorships in last three years
S2 Resources Limited until 3 April 2020
Share and Option holding in the Company
24,225,500 Ordinary Shares
25
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
Mr Ross Williams
Non-executive Director
Experience and Expertise
Mr Ross Williams is a highly experienced Company Director and businessman, having co-founded a Mining
Services business from start up through to ASX listing and a market capitalisation over $400m with revenues
in excess of $500m. Ross held the role of Finance Director for 12 years and during this time was responsible
for capital management, finance, financial reporting, corporate strategy and investor relations before retiring
to a Non-Executive role. Mr Williams started his career in Banking and Finance and his listed company roles
have also included Non-Executive Director of a successful Mining Company and Chairman of a listed
investment Company.
Other current directorships
None
Former directorships in last three years
Emerald Resources NL until 12 June 2020
Share and Option holding in the Company
24,255,760 Ordinary Shares
COMPANY SECRETARY
The Company Secretary is Mr Anthony Walsh. Mr Walsh was appointed company secretary on 4 June 2020.
Mr Walsh has over 30 years’ experience in dealing with listed companies, ASX, ASIC and corporate
transactions including 14 years with the ASX in Perth where he acted as ASX liaison with the JORC committee,
four years as Chairman of an ASX listed mining explorer and as a director of a London AIM listed explorer. Mr
Walsh is also currently Company Secretary of Battery Minerals Mining Ltd and Legend Mining Limited, and
was a Director of XCD Energy Limited until 22 July 2020. Mr Walsh is a member of the Australian Institute of
Company Directors, a Fellow of the Governance Institute of Australia, the Institute of Chartered Secretaries
and the Institute of Chartered Accountants in Australia. He is currently a non-executive director of the not-for-
profit Women’s and Infants Research Foundation.
26
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities during the period of the entities within the consolidated entity were exploration for gold
and base metals deposits in Australia.
RESULTS OF OPERATIONS
The loss of the consolidated entity for the year after tax was $598,504 (2021: $2,263,093 loss).
FINANCIAL POSITION
At the end of the financial year the Group had cash reserves of $4,624,561 (2021: $5,224,475) and incurred
expenditure on exploration and evaluation of $3,213,568 (2021: $1,707,481) before write offs during the year.
RISKS AND RISK MANAGEMENT
The Company attempts to mitigate risks that may affect its future performance through a systematic process
of identifying, assessing, reporting and managing risks of corporate significance. Key operational risks and
their management are recurring items for discussion at Board meetings.
The following discusses the Company’s most significant business risks.
a) Exploration
Whilst considered highly prospective, the Company’s tenements are early stage exploration
tenements with limited exploration undertaken on them to date.
Exploration is a high risk undertaking. The Company’s joint venture projects for copper, nickel and
gold prospects in Australia are in the preliminary stages of exploration and no assurance is given that
exploration of its current projects or any future projects will result in the delineation or discovery of a
significant mineral resource. Even if a significant mineral resource is identified, there can be no
guarantee that it can be economically exploited.
b) Commodity prices
As an explorer for copper, gold, nickel and potentially other minerals, any successes of the Company
are expected to be closely related to the price of those and other commodities. Fluctuating prices in
those commodities make market prices for securities in the Company more volatile than for other
investments.
Commodities prices are affected by numerous factors beyond the control of the Company. These
factors include worldwide and regional supply and demand for commodities, general world economic
conditions and the outlook for interest rates, inflation and other economic factors on both a regional
and global basis. These factors may have a positive or negative effect on the Company’s exploration,
project development and production plans and activities, together with the ability to fund those plans
and activities.
27
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
c) Environmental
The Company’s projects are subject to rules and regulations regarding environmental matters and the
discharge of hazardous wastes and materials. As with all mineral projects, the Company’s projects are
expected to have a variety of environmental impacts should development proceed. Development of
any of the Company’s projects will be dependent on the Company satisfying environmental guidelines
and, where required, being approved by government authorities.
The Company intends to conduct its activities in an environmentally responsible manner and in
accordance with all applicable laws but may still be subject to accidents or other unforeseen events
which may compromise its environmental performance and which may have adverse financial
implications.
d) Future capital needs.
The Company’s ability to raise further capital (equity or debt) within an acceptable time of a sufficient
amount and on terms acceptable to the Company will vary according to a number of factors, including
prospectivity of projects (existing and future), the results of exploration, subsequent feasibility studies,
development and mining, stock market and industry conditions and the price of relevant commodities
and exchange rates.
No assurance can be given that future funding will be available to the Company on favourable terms
(or at all). If adequate funds are not available on acceptable terms, the Company may not be able to
further develop its projects and it may impact on the Company’s ability to continue as a going concern.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There has been no significant change in the state of affairs of the Company during the financial year.
DIVIDENDS
No dividends have been recommended by the Directors.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
No matters or circumstances have arisen since the end of the year to the date of this report which have
significantly affected, or may significantly affect, the operations of the Company, the results of those operations
or the state of affairs of the Company, other than:
• On 21 July 2022, the Company announced that drilling at the Company’s Yandal West Project has
been completed with multiple drill intersections of sulphide mineralization.
• On 31 August 2022, the Company announced the results from the Yandel West Project Drilling
Program, with significant results returned from Harris’ Find.
28
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Directors are not aware of any developments that might have a significant effect on the operations of the
Company in subsequent financial years not already disclosed in this report.
ENVIRONMENTAL REGULATIONS
Great Western Exploration Limited conducts its exploration activities in an environmentally sensitive manner,
and believes it has adequate systems in place for the management of environmental requirements. The
Company is not aware of any breach of statutory conditions or obligations.
The Directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER
Act) which introduces a single national reporting framework for the reporting and dissemination of information
about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of
corporations. At the current stage of development, the Directors have determined that the NGER Act will have
no effect on the Company for the current, nor subsequent, financial year. The Directors will reassess this
position as and when the need arises.
DIRECTORS’ MEETINGS
The Directors attended the following director meetings during the year and up to the date of this report:
Shane Pike
Thomas Ridges*
Kevin Somes
Grey Egerton-Warburton
Ross Williams
Meetings Eligible to Attend
1
3
4
4
4
Meetings Attended
1
3
4
4
4
DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
The particulars of Directors’ interest in shares and options are as at the date of this report:
Shane Pike
Thomas Ridges*
Kevin Somes
Grey Egerton-Warburton
Ross Williams
Ordinary Shares
-
-
5,517,233
24,225,500
24,255,760
Options
5,000,000
1,500,000
-
-
*Thomas Ridges resigned as a director of the Company on 14 April 2022.
DIRECTORS AND OFFICERS INSURANCE
The Company has made an agreement to indemnify all the Directors and Officers against all indemnifiable
losses or liabilities incurred by each Director and Officer in their capacities as Directors and Officers of the
Company to the extent permitted by the Corporations Act 2001.
The Company has taken out an insurance policy at a premium of $23,044 before GST (2021: $20,963) in
relation to Directors and Officers indemnity.
29
GREAT WESTERN EXPLORATION LIMITED
DIRECTORS’ REPORT (continued)
OUTSTANDING OPTIONS AT DATE OF REPORT
The following series of options were outstanding at the date of this report:
Grant
Date
20/06/2022
20/06/2022
20/06/2022
12/10/2020
29/12/2020
6/04/2021
6/04/2021
No of
Options
Grant Date
Fair Value
Exercise
Price
Expiry
Date
Vesting
Date
1,500,000
1,500,000
2,000,000
1,500,000
1,200,000
2,750,000
1,250,000
$0.08
$0.08
$0.08
$0.26
$0.0124
$0.0645
$0.0442
$0.00
20/06/2027
20/06/2023
$0.00
20/06/2027
20/06/2024
$0.00
20/06/2027
20/06/2025
$0.00
12/10/2025
12/10/2021
$0.31
29/12/2023
29/12/2020
$0.37
31/3/2024
6/4/2021
$0.52
31/3/2024
6/4/2021
Total No.
11,700,000
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court 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 such proceedings during the year.
NON-AUDIT SERVICES
Hall Chadwick did not provide any non-audit services during the year ended 30 June 2022.
Details of the amounts paid or payable to the auditor for audit during the year are set out in Note 22.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration, as required under section 307C of the Corporations Act
2001, is set out on page 79.
30
GREAT WESTERN EXPLORATION LIMITED
REMUNERATION REPORT (AUDITED)
REMUNERATION POLICY
This Remuneration Report outlines the director and executive remuneration arrangements of the Company in
accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this
report Key Management Personnel (KMP) of the Company are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Company and its subsidiaries,
directly or indirectly, including any director (whether executive or otherwise) of the Company.
For the purposes of this report, the term “executive” encompasses the Chief Executive and senior executives.
i)
Directors
Shane Pike
Managing Director (Appointed 19 April 2022)
Thomas Ridges
Managing Director (Resigned 14 April 2022)
Kevin Somes
Chairman (Non-executive)
Grey Egerton-Warburton
Non-executive Director
Ross Williams
Non-executive Director
There were no other changes of key management personnel after reporting date and before the financial report
was authorised for issue.
Since the current Board was formed on 4 June 2020 with the appointment of Messrs Williams and Egerton-
Warburton, directors’ fees have not been paid to any directors other than the Managing Director, Mr Thomas
Ridges before his resignation and Mr Shane Pike since his appointment.
The Company has established a Remuneration Committee, assumed by the Board, as a whole, which is
responsible for determining and reviewing the remuneration arrangements of the directors and executives.
The Board assesses the appropriateness of the nature and amount of emoluments of such Directors and
executives on an annual basis by reference to market and industry conditions.
In order for the Company to prosper, thereby creating shareholder value, the Company must be able to attract
and retain the highest calibre executives.
Executive and non-executive directors, other key management personnel and other senior employees have
been granted options over ordinary shares under the Company’s Employee Share Option Plan. The recipients
of options are responsible for growing the Company and increasing shareholder value. If they achieve this
goal the value of the options granted to them will also increase. Therefore, the options provide an incentive to
the recipients to remain with the Company and to continue to work to enhance the Company’s value.
Due to the nature of the Company’s operations the current remuneration policy is not linked to the performance
of the Company.
31
GREAT WESTERN EXPLORATION LIMITED
REMUNERATION REPORT (AUDITED) (continued)
NON-EXECUTIVE DIRECTORS’ REMUNERATION
The Board seeks to set remuneration levels that provide the Company with the ability to attract and retain the
highest calibre professionals.
Fees and payments to non-executive Directors reflect the demands that are made on and the responsibilities
of the Directors from time to time.
REMUNERATION POLICY
Directors’ fees are determined by the Board within the aggregate Directors fee limit approved by shareholders.
The maximum currently approved by the Constitution stands at $250,000.
Remuneration in the form of share options issued under the Company’s Employee Share Option Plan is
designed to reward Directors and executives in a manner aligned to the creation of shareholder wealth.
Subject to shareholders’ approval non-executive directors may participate in the Company’s Employee Share
Option Plan. The Board considers the grant of options to be reasonable given the necessity to attract and
retain the highest calibre professionals to the Company.
Non-executive Directors receive superannuation benefits in accordance with the Superannuation Guarantee
Legislation. Non-executive directors are permitted to salary sacrifice all or part of their fees.
Due to the nature of the Company’s operation i.e. mineral exploration and development, the remuneration of
directors and executives, at present, does not include performance-based incentives.
EXECUTIVE REMUNERATION (INCLUDING EXECUTIVE DIRECTORS)
The Board aims to reward executives with a level and mix of remuneration commensurate with their position
and responsibilities to align the interests of executives with those of shareholders and to ensure that
remuneration is market competitive.
Remuneration consists of:
•
Fixed Remuneration.
Being base salary, non-monetary benefits and superannuation. Fixed remuneration is reviewed
annually.
•
Variable remuneration – Long term incentives.
Being share options issued under the Company’s Employee Share Option Plan. The options do not
have any vesting conditions other than service conditions.
Remuneration issued in the form of share options issued under the Company’s Employee Share
Option Plan is designed to reward directors and executives in a manner aligned to the creation of
shareholder wealth.
Due to the nature of the Company’s operation i.e. mineral exploration and development, the remuneration of
directors and executives, at present, does not include performance-based incentives.
The Company has entered into standard contracts with Directors, the details of which are set out below.
32
Great Western Exploration Limited
REMUNERATION REPORT (AUDITED) (continued)
REMUNERATION OF KEY MANAGEMENT PERSONNEL
Short
term
benefits
Salary &
Wages
Other
long term
employee
benefits
Superannuation
Remuneration/
entitlements
relinquished
Total
Performance
related %
$58,423
$250,034
$54,627
$111,123
$5,669
$25,003
-
($449,064)
$118,719
($62,904)
0.0%
0.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2022
Name of
Director
Executive
director
Shane Pike(1)
Thomas
Ridges(2)
Non-
executive
director
Kevin Somes
Ross Williams
Grey Egerton-
Warburton
Totals $308,457
$165,750
$30,672
($449,064)
$55,815
Short
term
benefits
Salary &
Wages
Other
long term
employee
benefits
Superannuation
Remuneration/
entitlements
relinquished
Total
Performance
related %
$193,537
$542,260
$18,386
-
$754,183
0.0%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
Name of
Director
Executive
director
Thomas
Ridges
Non-
executive
director
Kevin Somes
Ross Williams
Grey Egerton-
Warburton
Totals $193,537
$542,260
$18,386
-
$754,183
(1) Shane Pike was appointed on 19 April 2022 with a salary of $310,000 per annum plus superannuation and a notice period of three (3)
months by either the Company or Mr Pike.
(2) Thomas Ridges was appointed on 10 October 2020 with a salary of $273,973 per annum plus superannuation. Mr Ridges resigned
from the Company on 14th April 2022. Options not vested at date of resignation lapsed on their terms, being the date Mr Ridges ceased
to be a director of the Company.
33
Great Western Exploration Limited
REMUNERATION REPORT (AUDITED) (continued)
OPTIONS GRANTED AS PART OF REMUNERATION
The following options were issued to directors during the year ended 30 June 2022.
Grant Date
No. of
Options
Exercise
price
Vesting Date
Expiry Date
Value of
Options
Granted
Shane Pike
20 June 2022
1,500,000
$0.00
20 June 2023
20 June 2027
$120,000
Shane Pike
20 June 2022
1,500,000
$0.00
20 June 2024
20 June 2027
$120,000
Shane Pike
20 June 2022
2,000,000
$0.00
20 June 2025
20 June 2027
$160,000
The following options were issued to directors during the year ended 30 June 2021.
Grant Date
No. of
Options
Exercise
price
Vesting Date
Expiry Date
Value of
Options
Granted
Thomas Ridges
12 October 2020
1,500,000
$0.00 12 October 2021
12 October 2025
$390,000
Thomas Ridges
12 October 2020 1,500,000*
$0.00 12 October 2022
12 October 2025
$390,000
Thomas Ridges
12 October 2020 2,000,000*
$0.00 12 October 2023
12 October 2025
$520,000
*Due to the resignation of Mr Thomas Ridges on 14 April 2022, 3,500,000 unvested options lapsed on their terms on 14 April 2022. Note:
vested options remain on issue until the earlier of their expiry or exercise.
For details on the valuation of options, including models and assumptions used, refer to Note 17.
There were no alterations to the terms and conditions of options granted as remuneration since their grant
date.
34
Great Western Exploration Limited
REMUNERATION REPORT (AUDITED) (continued)
OPTION HOLDING OF KEY MANAGEMENT PERSONNEL
30 June 2022
Balance at
1 July 2021
Granted
Expired
Lapsed
Balance at
30 June
2022
Vested
Directors
Shane Pike(1)
Thomas Ridges(2)
Kevin Somes
Grey Egerton-
Warburton
Ross Williams
30 June 2021
Directors
Thomas Ridges(2)
Kevin Somes
Grey Egerton-
Warburton
Ross Williams
-
5,000,000
-
-
5,000,000
-
-
-
-
-
5,000,000 5,000,000
-
-
-
-
-
-
-
(3,500,000)
-
-
5,000,000
Nil
1,500,000 1,500,000
n/a
n/a
-
-
-
-
n/a
(3,500,000)
6,500,000 1,500,000
Balance at
1 July 2020 Granted
Expired
Lapsed
-
211,234
-
5,000,000
-
-
-
(211,234)
-
-
-
-
211,234 5,000,000
(211,234)
Balance at
30 June
2021
Vested
-
-
-
-
-
5,000,000
-
-
-
5,000,000
Nil
n/a
n/a
n/a
35
Great Western Exploration Limited
REMUNERATION REPORT (AUDITED) (continued)
SHAREHOLDINGS OF KEY MANAGEMENT PERSONNEL
30 June 2022
Directors
Shane Pike(1)
Thomas Ridges(2)
Kevin Somes
Grey Egerton-
Warburton
Ross Williams
30 June 2021
Directors
Thomas Ridges(2)
Kevin Somes
Grey Egerton-
Warburton
Ross Williams
Balance
1 July
2021
Granted as
Remuneration
On
exercise
of Options
Net Change
Other
Balance
30 June 2022
-
-
4,267,233
20,000,000
20,030,260
44,297,493
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,250,000
4,225,500
4,225,500
9,701,000
-
-
5,517,233
24,225,500
24,255,760
53,998,493
Balance
1 July
2020
Granted as
Remuneration
On
exercise
of Options
Net Change
Other
Balance
30 June 2021
-
1,267,395
8,000,000
8,012,104
17,279,499
-
-
-
-
-
-
-
-
-
-
-
2,999,838
12,000,000
-
4,267,233
20,000,000
12,018,156
27,017,994
20,030,260
44,297,493
(1) Shane Pike was appointed on 19 April 2022.
(2) Thomas Ridges was appointed on 10 October 2020 and resigned from the Company on 14th April 2022. Options not vested at date
of resignation lapsed on their terms, being the date Mr Ridges ceased to be a director of the Company.
TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
There were no transactions with Key Management Personnel during the year (2021: Nil).
END OF REMUNERATION REPORT (AUDITED)
36
Great Western Exploration Limited
DIRECTORS’ REPORT (continued)
This Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of
the Directors.
Dated this 8th day of September 2022
Shane Pike
Managing Director
37
Great Western Exploration Limited
ABN 53 123 631 470
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Interest revenue
Other income – Government Grant
Employee benefits expense
Administration costs
Depreciation
Compliance and regulatory
Share based payments
Mineral exploration written off
Loss before income tax
Income tax expense
Loss for the period
Note
Consolidated
Consolidated
30 JUNE 2022
30 JUNE 2021
$
$
16
17
11
592
-
(274,592)
(336,147)
(10,150)
(63,009)
97,634
(12,832)
713
80,284
(219,784)
(343,279)
(6,532)
(85,556)
(1,009,418)
(679,520)
(598,504)
(2,263,093)
-
-
(598,504)
(2,263,093)
Other comprehensive income
-
-
Total comprehensive income for the period attributable
to members
(598,504)
(2,263,093)
Earnings per share
From continuing operations:
Basic earnings per share (cents)
6
(0.43)
(2.81)
The accompanying notes form part of this consolidated financial report.
38
Great Western Exploration Limited
ABN 53 123 631 470
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Mineral exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
Consolidated
Note
30 JUNE 2022
30 JUNE 2021
$
$
7
8
9
10
11
12
13
13
4,624,561
400,498
400
5,224,475
212,544
400
5,025,459
5,437,418
30,069
13,719,581
13,749,650
27,225
10,518,845
10,546,070
18,775,109
15,983,488
424,637
22,365
447,002
194,894
28,330
223,224
447,002
223,224
18,328,107
15,760,264
41,432,354
1,810,650
38,168,373
1,908,284
(24,914,897)
(24,316,393)
18,328,107
15,760,264
The accompanying notes form part of this consolidated financial report.
39
Great Western Exploration Limited
ABN 53 123 631 470
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Issued
Capital
Option
Reserves
Accumulated
Losses
$
$
Total
$
Consolidated
Balance at 1 JULY 2021 Note
38,168,373
1,908,284
(24,313,393)
15,760,264
Loss for the period
Other comprehensive income for the
period
Total comprehensive
Income for the period
-
-
-
-
-
-
(598,504)
(598,504)
-
-
(598,504)
(598,504)
Share issue 13
Options issued
Options lapsed
Issue costs 13
3,500,000
-
-
(236,019)
-
54,627
(152,261)
-
-
-
-
-
3,500,000
54,627
(152,261)
(236,019)
Balance at 30 JUNE 2022
41,432,354
1,810,650
(24,914,897)
18,328,107
Consolidated
Balance at 1 JULY 2020
30,580,106
898,866
(22,053,300)
9,425,672
Loss for the period
Other comprehensive income for the
period
Total comprehensive
Income for the period
Share issue
Options issued
Issue costs
-
-
-
-
-
-
(2,263,093)
(2,263,093)
-
-
(2,263,093)
(2,263,093)
7,966,904
-
(378,637)
-
1,009,418
-
-
-
-
7,699,904
1,009,418
(378,637)
Balance at 30 JUNE 2021
38,168,373
1,908,284
(24,316,393)
15,760,264
The accompanying notes form part of this consolidated financial report.
40
Great Western Exploration Limited
ABN 53 123 631 470
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Government grant received
Interest received
Consolidated
Consolidated
30 JUNE 2022
30 JUNE 2021
$
$
(559,413)
(687,443)
-
592
80,284
713
Net cash (used in) operating activities 14
(558,821)
(606,446)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits paid on exploration tenements
Refund on withdrawal of applications
Purchase of property, plant and equipment
Payments for mineral exploration expenditure
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and options
Securities issue costs
Net cash provided by financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes form part of this consolidated financial report.
(290,413)
(176,772)
17,864
(12,994)
-
(22,228)
(2,995,929)
(1,691,347)
(3,281,472)
(1,890,347)
3,500,000
(259,621)
3,240,379
(599,914)
5,224,475
4,624,561
7,966,904
(378,636)
7,588,268
5,091,475
133,000
5,224,475
41
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
These financial statements and notes represent those of Great Western Exploration Limited (‘the Company’)
and its controlled entities (‘the Group’).
The financial statements were authorised for issue on 8 September 2022 by the Directors of the Company.
NOTE 1: BASIS OF PREPARATION
The financial statements are general purpose financial statements that have been prepared in accordance with
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of
the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Group is a for-profit
entity for financial reporting purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in
financial statements containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted
in the preparation of these financial statements are presented below and have been consistently applied unless
stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accruals basis and are
based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities.
a) Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity, and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Group incurred a loss for the year of $598,504 (2021: $2,263,093). The Group has a working capital surplus
of $4,578,457 at 30 June 2022 (2021: $5,214,194). The Group has ongoing expenditures in respect of
administration costs and exploration and evaluation expenditure on its Australian exploration projects.
The Directors believe that at the date of signing of the financial statements that the Group has sufficient funds
to meet its obligations as and when they fall due and continue to proceed with the Group’s objectives beyond
the currently committed expenditure for the 12-month period from the date of signing this financial report.
The financials do not include any adjustments relating to the recoverability and classification of recorded asset
amounts and classification of liabilities that might be necessary, should the Group not continue as a going
concern and meet its debts as and when they fall due.
b) Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Great
Western Exploration Limited at the end of the reporting period. A controlled entity is any entity over which Great
Western Exploration Limited has the ability and right to govern the financial and operating policies so as to
obtain benefits from the entity’s activities.
Where controlled entities have entered or left the Group during the year, the financial performance of those
entities is included only for the period of the year that they were controlled. A list of controlled entities is
contained in Note 19 to the financial statements.
42
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
In preparing the consolidated financial statements, all intragroup balances and transactions between entities in
the consolidated group have been eliminated in full on consolidation.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are
reported separately within the equity section of the consolidated statement of financial position and statement
of comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of
the original business combination and their share of changes in equity since that date.
c) Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination involving
entities or businesses under common control. The business combination will be accounted for from the date
that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including
contingent liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from
a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability is remeasured in each reporting period to fair
value, recognising any change to fair value in profit or loss, unless the change in value can be identified as
existing at acquisition date.
All transaction costs incurred in relation to business combinations are expensed to the Statement of Profit or
Loss and Other Comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
d) Goodwill
i.
ii.
The consideration transferred;
Any non-controlling interest, and
iii.
The acquisition date fair value of any previously held equity interest over the acquisition date fair
value of net identifiable assets acquired.
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition
date fair value of any previously held equity interest shall form the cost of the investment in the separate financial
statements.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive
income. Where changes in the value of such equity holdings had previously been recognised in other
comprehensive income, such amounts are recycled to profit or loss.
43
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
The amount of goodwill recognised on acquisition of each subsidiary in which the Company holds less than a
100% interest will depend on the method adopted in measuring the non-controlling interest. The Company can
elect in most circumstances to measure the non-controlling interest in the acquire either at fair value (full
goodwill method) or at the non-controlling interest’s proportionate share of the subsidiary’s identifiable net
assets (proportionate interest method). In such circumstances, the Company determines which method to
adopt for each acquisition and this is stated in the respective notes to these financial statements disclosing the
business combination.
Under the full goodwill method, the fair value of the non-controlling interests is determined using valuation
techniques which make the maximum use of market information where available. Under this method, goodwill
attributable to the non-controlling interests is recognised in the consolidated financial statements.
Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is
included in investments in associates.
Goodwill is tested for impairment annually and is allocated to the Company’s cash-generating units or groups
of cash-generating units, representing the lowest level at which goodwill is monitored not larger than an
operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill
related to the entity disposed of.
e) Application of New and Revised Accounting Standards
i.
New, revised or amending Accounting Standards and Interpretations adopted
The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The
adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the company during the financial year.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted.
ii.
Accounting Standards that are mandatorily effective for the current reporting year
The company has adopted all of the new and revised Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant to its operations and effective for an accounting
period that begins on or after 1 July 2021.
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2022, the directors have reviewed all the new and revised Standards and
Interpretations issued by the AASB that are relevant to the company’s operations and effective for annual
reporting periods beginning on or after 1 July 2021. As a result of this review, the Directors have determined
that there is no material impact of any new and revised Standards and Interpretations issued by the AASB.
Standards and Interpretations in issue not yet adopted
44
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet
adopted for the year ending 30 June 2022. As a result of this review, the Directors have determined that there
is no material impact of the new and revised Standards and Interpretations in issue not yet adopted on the
company and therefore no material change is necessary to company accounting policies.
f) Cash and Cash Equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-
term deposits with an original maturity of six months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.
g) Trade and Other Receivables
Trade receivables, which generally have 30-day terms, are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less an allowance for impairment. Collectability
of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off
when identified. An impairment provision is recognised when there is objective evidence that the Company will
not be able to collect the receivable.
h) Financial Instruments
i.
Classification of financial instruments
The Group classifies its financial assets into the following measurement categories:
•
•
those to be measured at fair value (either through other comprehensive income, or through profit or
loss); and
those to be measured at amortised cost.
The classification depends on the Group’s business model for managing financial assets and the contractual
terms of the financial assets' cash flows.
The Group classifies its financial liabilities at amortised cost unless it has designated liabilities at fair value
through profit or loss or is required to measure liabilities at fair value through profit or loss such as derivative
liabilities.
ii.
Financial assets measured at amortised cost
Debt instruments
Investments in debt instruments are measured at amortised cost where they have:
•
•
contractual terms that give rise to cash flows on specified dates, that represent solely payments of
principal and interest on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash
flows.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and
subsequently measured at amortised cost. The measurement of credit impairment is based on the three-stage
expected credit loss model described below in note (i) Impairment of financial assets.
45
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
iii.
Financial assets measured at fair value through other comprehensive income
Equity instruments
Investment in equity instruments that are neither held for trading nor contingent consideration recognised by
the Group in a business combination to which AASB 3 "Business Combination" applies, are measured at fair
value through other comprehensive income, where an irrevocable election has been made by management.
Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. Dividends
on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of
the cost of the investment.
Items at fair value through profit or loss Items at fair value through profit or loss comprise:
•
•
•
items held for trading;
items specifically designated as fair value through profit or loss on initial recognition; and
debt instruments with contractual terms that do not represent solely payments of principal and interest.
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with transaction
costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any
gains or losses are recognised in the income statement as they arise.
Where a financial asset is measured at fair value, a credit valuation adjustment is included to reflect the credit
worthiness of the counterparty, representing the movement in fair value attributable to changes in credit risk.
Financial instruments held for trading
A financial instrument is classified as held for trading if it is acquired or incurred principally for the purpose of
selling or repurchasing in the near term, or forms part of a portfolio of financial instruments that are managed
together and for which there is evidence of short-term profit taking, or it is a derivative not in a qualifying hedge
relationship.
Financial instruments designated as measured at fair value through profit or loss
Upon initial recognition, financial instruments may be designated as measured at fair value through profit or
loss. A financial asset may only be designated at fair value through profit or loss if doing so eliminates or
significantly reduces measurement or recognition inconsistencies (i.e. eliminates an accounting mismatch) that
would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly reduces
an accounting mismatch or:
•
•
if a host contract contains one or more embedded derivatives; or
if financial assets and liabilities are both managed and their performance evaluated on a fair value basis
in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value attributable
to changes in the Group’s own credit quality is calculated by determining the changes in credit spreads above
observable market interest rates and is presented separately in other comprehensive income.
46
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
i)
Impairment of Financial Assets
The Group applies a three-stage approach to measuring expected credit losses (ECLs) for the following
categories of financial assets that are not measured at fair value through profit or loss:
• debt instruments measured at amortised cost and fair value through other comprehensive income;
•
•
loan commitments; and
financial guarantee contracts.
No ECL is recognised on equity investments.
Determining the stage for impairment
At each reporting date, the Group assesses whether there has been a significant increase in credit risk for
exposures since initial recognition by comparing the risk of default occurring over the remaining expected life
from the reporting date and the date of initial recognition. The Group considers reasonable and supportable
information that is relevant and available without undue cost or effort for this purpose. This includes quantitative
and qualitative information and also, forward-looking analysis.
An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent period, asset
quality improves and also reverses any previously assessed significant increase in credit risk since origination,
then the provision for doubtful debts reverts from lifetime ECL to 12-months ECL. Exposures that have not
deteriorated significantly since origination are considered to have a low credit risk. The provision for doubtful
debts for these financial assets is based on a 12-months ECL. When an asset is uncollectible, it is written off
against the related provision. Such assets are written off after all the necessary procedures have been
completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously
written off reduce the amount of the expense in the income statement.
The Group assesses whether the credit risk on an exposure has increased significantly on an individual or
collective basis. For the purposes of a collective evaluation of impairment, financial instruments are Grouped
on the basis of shared credit risk characteristics, taking into account instrument type, credit risk ratings, date of
initial recognition, remaining term to maturity, industry, geographical location of the borrower and other relevant
factors.
j) Recognition and derecognition of financial instruments
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the
contractual provisions of the instrument, which is generally on trade date. Loans and receivables are recognised
when cash is advanced (or settled) to the borrowers.
Financial assets at fair value through profit or loss are recognised initially at fair value. All other financial assets
are recognised initially at fair value plus directly attributable transaction costs.
The Group derecognises a financial asset when the contractual cash flows from the asset expire or it transfers
its rights to receive contractual cash flows from the financial asset in a transaction in which substantially all the
risks and rewards of ownership are transferred.
47
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate
asset or liability.
A financial liability is derecognised from the balance sheet when the Group has discharged its obligation or the
contract is cancelled or expires.
k) Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the Group
has a legal right to offset the amounts and intends to settle on a net basis or to realise the asset and settle the
liability simultaneously.
l) Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment
losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and Equipment – over 6 to 15 years
Motor Vehicles – over 4 years
Computer Equipment – over 3 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
m) Exploration and Evaluation Expenditure
Exploration and evaluation costs are capitalised as exploration and evaluation assets on a project by project
basis pending determination of the technical feasibility and commercial viability of the project. The capitalised
costs are presented as either tangible or intangible exploration and evaluation assets according to the nature
of the assets acquired.
When a licence is relinquished or a project abandoned, the related costs are recognised in the Statement of
Comprehensive Income immediately.
Exploration and evaluation assets shall be assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts
and circumstances suggest that the carrying amount exceeds the recoverable amount an impairment loss is
recognised in the Statement of Comprehensive Income.
48
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
n) Interests in Joint Ventures
The Company’s shares of the assets, liabilities, revenue and expenses of jointly controlled operations have
been included in the appropriate line items of the consolidated financial statements.
o) Impairment of Assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount exceeds its recoverable amount. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds it recoverable amount. Recoverable amount is the higher of an asset’s fair value less
costs to sell and value in use. For the purposes of assessing impairment, assets are Group at the lowest levels
for which there are separately identifiable cash inflows that are largely independent of the cash inflows from
other assets or Group of assets (cash –generating units). Non-financial assets other than goodwill that suffered
an impairment are tested for possible reversal of the impairment whenever events or changes in circumstances
indicate that the impairment may have reversed.
p) Trade and other Payables
Trade and other payables are carried at amortised cost; due to their short term nature they are not discounted.
They 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. The amounts are unsecured and are usually paid within 30 days of
recognition.
q) Provisions and Employee Leave Benefits
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of the provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of
any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the balance sheet date. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks specific
to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
Employee Leave Benefits
i. Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the
rates paid or payable.
49
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
ii.
Long service leave
The liability for long service leave is recognised and measured as the present level of expected future payments
to be made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee departures,
and periods of service. Expected future payments are discounted using market yields at the reporting date on
national government bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows.
r) Share Based Payment Transactions
(i) Equity settled transaction:
The Company provides benefits to its employees (including key management personnel) in the form of share-
based payments, whereby employees render services in exchange for shares or rights over shares (equity-
settled transactions).
The Company has in place the Great Western Exploration Limited Employee Share Option Plan to provide
benefits to directors and senior executives.
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by an external valuer
using a binomial model.
In valuing equity-settled transactions, no account is taken of any vesting conditions other than conditions linked
to price of the shares of the Company (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled (the vesting period), ending on the date
on which the relevant employees become fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting the cumulative charge to the Statement of Comprehensive
Income is the produce of:
i.
ii.
the grant date fair value of the award;
the current best estimate of the number of awards that will vest, taking into account such factors as
the likelihood of employee turnover during the vesting period and the likelihood of non-market
performance conditions being met; and
iii.
the expired portion of the vesting period.
The charge to the Statement of Comprehensive Income for the year is the cumulative amount as calculated
above less the amounts already charged in previous years. There is a corresponding credit to equity.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards
vest than were originally anticipated to do so. Any award subject to a market condition is considered to vest
irrespective of whether or not that market condition is fulfilled, provided that all other conditions are satisfied.
50
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms
had not been modified. An additional expense is recognised for any modification that increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the
date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for
the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and
new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
diluted earnings per share.
s)
Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
t) Revenue Recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent
it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
The following specific recognition criteria must also be met before revenue is recognised.
i.
Interest Income
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant year using the
effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
u)
Income Tax and other Taxes
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be
recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet
date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in the transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
51
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses
can be utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not
•
a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable
entity and the same taxation authority.
Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the Statement of Financial Position.
52
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is
classified as part of operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
v) Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude
any costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
•
•
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares; and
• other non-discretionary changes in revenues or expenses during the year that would result from the
dilution of potential ordinary shares;
Divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for
any bonus element.
w) Fair Value of Assets and Liabilities
The Company measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Company would receive to sell an asset or would have to pay to transfer a liability in
an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at
the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques maximise, to the extent
possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability
(i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such
a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market
that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability,
after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to use
the asset in its highest and best use or to sell it to another market participant that would use the asset in its
highest and best use.
53
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer of
such financial instruments, by reference to observable market information where such instruments are held as
assets. Where this information is not available, other valuation techniques are adopted and, where significant,
are detailed in the respective note to the financial statements.
Valuation Techniques
In the absence of an active market for an identical asset or liability, the Company selects and uses one or more
valuation techniques to measure the fair value of the asset or liability, The Company selects a valuation
technique that is appropriate in the circumstances and for which sufficient data is available to measure fair
value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the
asset or liability being measured. The valuation techniques selected by the Company are consistent with one
or more of the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated by market
transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and expenses into
a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service
capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the
Company gives priority to those techniques that maximise the use of observable inputs and minimise the use
of unobservable inputs. Inputs that are developed using market data (such as publicly available information on
actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the
asset or liability are considered observable, whereas inputs for which market data is not available and therefore
are developed using the best information available about such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly
54
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. BASIS OF PREPARATION (continued)
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data. If all significant inputs required to measure fair value are observable, the asset or liability is included
in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is
included in Level 3.
The Company would change the categorisation within the fair value hierarchy only in the following
circumstances:
i.
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
ii.
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice
versa.
When a change in the categorisation occurs, the Company recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in
circumstances occurred.
55
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Estimates and assumptions are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances. Equally,
the Company continually employs judgement in the application of its accounting policies.
Management has identified the following critical accounting policies for which significant judgements, estimates
and assumptions are made. Actual results may differ from these estimates under different assumptions and
conditions. Those which may materially affect the carrying amounts of assets and liabilities reported in future
years are discussed below.
a) Significant accounting estimates and judgements
i.
Impairment of non-financial assets
The Company assesses impairment on all assets at each reporting date by evaluating conditions specific to the
Company and to the particular asset that may lead to impairment. These include technology and economic
environments. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves
value-in-use calculations, which incorporate a number of key estimates and assumptions.
ii.
Share-based payment transactions
The Company measures the cost of equity settled transactions with directors and employees by reference to
the fair value of the equity instruments at the date at which they are granted. Equity settled transactions
comprise only options. Their fair value is determined using the Binomial Options Pricing model. The accounting
estimates and assumptions relating to equity settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting year but may impact expenses and
equity.
iii.
Estimation of useful lives of assets
The estimation of useful lives of assets has been based on historical experience. Adjustments to useful lives
are made when considered necessary. Depreciation and amortisation charges as well as estimated useful lives
are included in Note 1(l).
iv.
Exploration and evaluation costs
Acquisition, exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area
of interest. These costs are carried forward in respect of an area that has not at balance sheet date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active and significant operations in or relating to, the area of interest are continuing.
v.
Environmental issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted
environmental legislation, and the Directors understanding thereof. At the current stage of the Company’s
development and its current environmental impact, the Directors believe such treatment is reasonable and
appropriate.
56
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 2. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued)
vi
Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, and are based on the
best estimates of Directors. These estimates take into account both the financial performance and position of
the Company as they pertain to current income taxation legislation, and the Directors understanding thereof.
No adjustment has been made for pending or future taxation legislation. The current income tax position
represents that Directors best estimate, pending an assessment by the Australian Taxation Office.
The Company’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.
57
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the
accounting policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Receivables
Financial assets
Financial Liabilities
Trade and payables
Provisions
Note
30 JUNE 2022
$
30 JUNE 2021
$
7
8
9
12
4,624,561
5,224,475
400,498
212,544
400
400
5,025,459
5,437,418
424,637
22,365
447,002
194,894
28,330
223,224
Financial Risk Management Policies
The Company attempts to mitigate risks that may affect its future performance through a systematic process of
identifying, assessing, reporting and managing risks of corporate significance.
The management and the Board discuss the principal risks of our businesses, particularly during the strategic
planning and budgeting processes. The board sets policies for the implementation of systems to manage and
monitor identifiable risks. The Board Risk Committee is responsible for the oversight of risk management.
The Company’s principal financial instruments comprise cash and short-term deposits. The Company has
various other financial assets and liabilities such as trade receivables and trade payables, which arise directly
from its operations.
The main purpose of these financial assets and liabilities is to raise finance for the Company’s operations. It is,
and has been throughout the entire year under review, the Company’s policy that no trading in financial
instruments shall be undertaken.
The main risks arising from the Group’s financial instruments are cash flow interest rate risk. Other minor risks
are either summarised below or disclosed in Note 8 in the case of credit risk and Note 13 in the case of capital
risk management. The Board reviews and agrees policies for managing each of these risks.
a) Credit Risk
The Company minimises credit risk by undertaking a review of its potential customers’ financial position
and the viability of the underlying project prior to entering into material contracts.
58
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Financial instruments other than receivables that potentially subject the Company to concentrations of credit
risk consist principally of cash deposits. The Company places its cash deposits with high credit-quality financial
institutions, being in Australia only the major Australian (big four) banks. The Company’s cash deposits all
mature within twelve months and attract a rate of interest at normal short-term money market rates.
The maximum amount of credit risk the Company considers it would be exposed to would be $4,624,561 (2021:
$5,224,475) being the total of its cash and cash equivalents and financial assets.
b) Cash Flow Interest Rate Risk
The Company’s exposure to the risks of changes in market interest rates relates primarily to the Company’s
short-term deposits with a floating interest rate. All other financial assets and liabilities
in the form of receivables and payables are non-interest bearing. The Company does not engage in any hedging
or derivative transactions to manage interest rate risk.
The following table sets out the Company’s exposure to interest rate risk and the effective weighted average
interest rate for each class of these financial instruments.
Floating Interest
Rate
Non-Interest
Bearing
Note
2022
$
2021
$
2022
$
2021
$
Total Carrying
Amount
2022
2021
Financial Assets
Cash and cash
equivalents
Trade and other
Receivables
Other Financial
assets
Weighted average
interest rate
7
8
9
1,307,385
5,208,362
3,317,176
16,112
4,624,561
5,224,475
400,498
212,544
400,498
212,544
400
400
400
400
-
-
-
-
0.01
0.01
The effect on profit and equity, after tax, if interest rates at that date had been 10% higher or 10% lower with all
other variables held constant as a sensitivity analysis would be a +/- change to profit and equity of nil (2021:
nil).
A sensitivity of 10% has been selected as this is considered by management to be reasonable in the current
environment. The Company constantly analyses its interest rate exposure to ensure the appropriate mix of fixed
and variable rates.
The Company has not entered into any hedging activities to cover interest rate risk. In regard to its interest rate
risk, the Company continuously analyses its exposure. Within this analysis consideration is given to potential
renewals of existing positions, alternative investments and the mix of fixed and variable interest rates.
59
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
c) Price Risk
The Company is not exposed to equity securities price risk. There is no active market for available for sale
investments.
d) Liquidity Risk
The Company’s objective is to match the terms of its funding sources to the terms of the assets or operations
being financed. The Company uses a combination of trade payables and operating leases to provide its
necessary debt funding.
The Company aims to hold sufficient reserves of cash or cash equivalents to help manage the fluctuations in
working capital requirements and provide the flexibility for investment into long-term assets without the need to
raise debt.
Contracted maturities of payables at balance date
Payable
- Less than 6 months
- 6 to 12 months
- 1 to 5 years
e) Commodity Price Risk
30 JUNE 2022
$
30 JUNE 2021
$
424,637
194,894
-
-
-
-
424,637
194,894
Due to the early stage of the Company’s operations its exposure is considered minimal. Risk arises as its
operations are involved in exploration and development of mineral commodities, changes in the price of
commodities for which the Group is exploring and developing may result in changes to the Company’s market
price. The Company entity does not hedge any of its exposures.
f) Foreign currency exchange rate
A risk arises when future commercial transactions and recognised assets and liabilities are denominated in a
currency other than the Company’s functional currency. At present, the Company is not considered to be
exposed to any significant foreign currency risk.
g) Net fair values
The Company has no financial assets or liabilities where the carrying value amount exceeds fair value at
balance date. The directors consider that the carrying amounts of financial assets and financial liabilities
recognised in the consolidated financial statements approximate their fair value.
The Company’s financial assets at fair value through profit or loss are listed investments (Note 9) and are
categorised as Level 1, meaning fair value is determined from quoted prices in active markets for identical
assets.
60
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4: OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors (chief operating decision makers) in assessing performance and determining the
allocation of resources.
The Group’s principal activities are mineral exploration. Reportable segments disclosed are based on
aggregating operating segments where the segments are considered to have similar economic characteristics.
Types of products and services by segment
The Group’s exploration projects consist of:
• Mineral exploration
• Finance and administration
Basis of accounting for purposes of reporting by operating segments
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect
to operating segments are determined in accordance with accounting policies that are consistent to those
adopted in the annual financial statements of the Group.
Segment assets
Segment assets are clearly identifiable on the basis of their nature and physical location.
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets and
intangible assets have not been allocated to operating segments.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the
operations of the segment. Segment liabilities include trade and other payables and certain direct borrowings.
Unallocated items
Items of revenue, expense, assets and liabilities are not allocated to operating segments if they are not
considered part of the core operations of any segment.
61
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4: OPERATING SEGMENTS (continued)
(i)
Segment performance
30 JUNE 2022
Interest received
Other income – Government Grant
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Net profit/ (loss) before tax from
operations
Mineral
Exploration ($)
-
-
-
-
Finance and
Administration ($)
592
-
-
592
-
-
-
-
-
(12,832)
(274,592)
(336,147)
(10,150)
(63,009)
97,634
-
Total ($)
592
-
-
592
(274,592)
(336,147)
(10,150)
(63,009)
97,634
(12,832)
(12,832)
(585,672)
(598,504)
30 JUNE 2021
Interest received
Other income – Government Grant
Other income
Total segment revenue
Employee benefit expense
Administration expenses
Depreciation
Compliance and regulatory expenses
Share based payments
Mineral exploration written-off
Net profit/ (loss) before tax from
operations
Mineral
Exploration ($)
-
-
-
-
Finance and
Administration ($)
713
80,284
-
80,997
Total ($)
713
80,284
-
80,997
-
-
-
-
-
(679,520)
(219,784)
(343,279)
(6,532)
(85,556)
(1,009,418)
-
(219,784)
(343,279)
(6,532)
(85,556)
(1,009,418)
(679,520)
(679,520)
(1,583,573)
(2,263,093)
62
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4: OPERATING SEGMENTS (Continued)
Mineral Exploration
($)
Finance and
Administration ($)
(ii)
Segment assets
30 JUNE 2022
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Non-current assets
Exploration and evaluation
expenditure
Plant & Equipment
Total assets from operations
30 JUNE 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Non-current assets
Exploration and evaluation
expenditure
Plant & Equipment
Total assets from operations
(iii)
Segment liabilities
30 JUNE 2022
Current liabilities
Trade and other payables
Provisions
Total liabilities from operations
30 JUNE 2021
Current liabilities
Trade and other payables
Provisions
Total liabilities from operations
-
331,258
-
13,719,581
20,118
14,070,957
-
183,631
-
10,518,845
7,357
10,709,833
Total ($)
4,624,561
400,498
400
4,624,561
69,240
400
-
9,951
4,704,152
13,719,581
30,069
18,775,109
Total ($)
5,224,475
212,544
400
5,224,475
28,913
400
-
19,868
5,273,655
10,518,845
27,225
15,983,488
Mineral Exploration
($)
Finance and
Administration ($)
Mineral
Exploration ($)
Finance and
Administration ($)
329,813
-
329,813
94,824
22,365
117,189
Mineral
Exploration ($)
Finance and
Administration ($)
128,346
-
128,346
66,548
28,330
94,878
Total ($)
424,637
22,365
447,002
Total ($)
194,894
28,330
223,224
63
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 5: INCOME TAX
30 JUNE
2022
$
30 JUNE
2021
$
a) The prima facie tax on profit/(loss) from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Accounting loss before income tax
(598,504)
(2,263,093)
Income tax benefit at the statutory income tax rate of 25% (2021:
26%)
(149,626)
(588,404)
Expenditure not allowable for income tax purposes
(22,481)
446,213
Capitalised mineral exploration expenditure
(800,184)
(443,945)
Other deductible expenditure/non-assessable income
4,806
(15,638)
Capital raising costs
Under/over from prior year
(30,733)
(98,445)
3,953
27,190
Benefit of tax losses not brought to account as an asset
994,265
673,030
Income Tax expense reported in the Statement of Profit or Loss and
Other Comprehensive Income
-
-
b) As at 30 June 2022, the Company has estimated tax losses of approximately $32,158,235 (2021:
$28,181,172), which may be available to be offset against deferred tax liabilities and taxable income in
future years. The availability of these losses is subject to satisfying Australian taxation legislative
requirements. The deferred tax asset attributable to tax losses has not been brought to account in these
financial statements as the Directors believe it is not presently appropriate to regard realisation of the
future income tax benefits as probable.
c) Deferred Tax Liability
With regard to Mineral Exploration Expenditure of $13,719,581 (2021: $10,518,845) the tax liability in respect
of the book value has not been brought to account as it is offset by the tax losses set out in 5(b) above.
NOTE 6: EARNINGS PER SHARE
Loss used in the calculation of basic EPS
30 JUNE 2022
$
30 JUNE 2021
$
(598,504)
(2,263,093)
Weighted average number of ordinary shares used in calculation
of basic earnings per share
140,488,695
80,519,854
Basic earnings per share (cents)
(0.43)
(2.81)
64
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 7: CASH AND CASH EQUIVALENTS
Cash at bank
Cash on deposit
30 JUNE 2022
$
30 JUNE 2021
$
3,317,176
1,307,385
4,624,561
16,112
5,208,362
5,224,475
The effective interest rate on short term bank deposits on average was 0.01% (2021: 0.01%), with an average
maturity of 6 months.
NOTE 8: TRADE AND OTHER RECEIVABLES
Current
Tenement applications and deposits
GST receivable
Prepayments
Allowance for impairment loss
30 JUNE 2022
$
30 JUNE 2021
$
275,349
111,819
13,330
400,498
156,330
54,602
1,612
212,544
Trade and other receivables do not contain impaired assets and are not past due. It is expected that these
other balances will be received when due.
Fair value and credit risk
Due to the short-term nature of the receivables, their carrying value is assumed to approximate their fair value.
Given the nature of the receivables the Company’s exposure to risk is not considered material.
NOTE 9: OTHER FINANCIAL ASSETS
Financial assets
Other
30 JUNE 2022
$
30 JUNE 2021
$
400
400
400
400
Changes in fair value are included in the statement of comprehensive income.
65
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 10: PROPERTY, PLANT AND EQUIPMENT
Plant and Equipment – at cost
Less: accumulated depreciation
30 JUNE 2022
$
30 JUNE 2021
$
54,229
(24,160)
30,069
41,235
(14,010)
27,225
Reconciliation of the carrying amount of property, plant and
equipment
30 JUNE 2022
$
30 JUNE 2021
$
Carrying amount at beginning of year
Additions
Disposals
Depreciation for the year
Carrying amount at end of financial year
NOTE 11: MINERAL EXPLORATION EXPENDITURE
Balance at beginning of the year
Acquisition of tenements
Capitalised exploration expenditure1
Mineral expenditure written off2
Balance at end of financial year
27,225
12,994
-
(10,150)
30,069
11,528
22,229
-
(6,532)
27,225
30 JUNE 2022
$
30 JUNE 2021
$
10,518,845
9,490,884
-
3,213,568
(12,832)
-
1,707,481
(679,520)
13,719,581
10,518,845
1 After writing off $12,832 mineral application expenditures on tenement applications not granted.
2This relates to expenditure on tenements relinquished during the year.
The value of the Company’s interest in exploration expenditure is dependent upon:
•
•
the continuance of the Company’s rights to tenure of the areas of interest;
the results of future exploration; and
• The recoupment of costs through successful development and exploitation of the areas of interest or,
alternatively, by their sale.
66
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 12: TRADE AND OTHER PAYABLES
Current
Trade payables
Sundry payables and accruals
PAYG Withholding
30 JUNE 2022
$
30 JUNE 2021
$
300,370
98,220
26,047
424,637
93,352
33,969
67,573
194,894
Due to the short-term nature of these payables, their carrying value is assumed to approximate fair value.
Trade payables are non-interest bearing and are generally settled within 30 days.
NOTE 13: EQUITY
ISSUED CAPITAL
Ordinary shares on issue
Movements in Ordinary Shares
Balance at the beginning of the year 1/7/21
Issued during the year
Issue costs
Balance at year end 30/06/22
Options Reserve
Unlisted
Balance at the beginning of the year 1/7/21
Amount recognised during the year
Expired or lapsed during the year
Balance at the end of the period 30/06/22
Listed
Balance at the beginning of the year 1/7/21
Expired or exercised during the year
Balance at the end of the period 30/06/22
67
30 JUNE 2022
No. on issue
$
179,948,117
41,432,354
No. on issue
$
136,198,117
43,750,000
-
179,948,117
10,466,667
5,000,000
(3,500,000)
11,966,667
-
-
-
38,168,373
3,500,000
(236,019)
41,432,354
1,908,284
54,628
(152,261)
1,810,651
-
-
-
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 13: EQUITY (Continued)
ISSUED CAPITAL
Ordinary shares on issue
Movements in Ordinary Shares
Balance at the beginning of the year 1/7/20
Issued during the year
Issue costs
Balance at year end 30/06/21
Options Reserve
Unlisted
Balance at the beginning of the year 1/7/20
Options issued during the year
Expired during the year
Balance at the end of the period 30/06/21
Listed
Balance at the beginning of the year 1/7/20
Expired or exercised (1) during the year
Balance at the end of the period 30/06//21
30 JUNE 2021
No. on issue
$
136,198,117
38,168,373
No. on issue
$
40,879,063
95,319,054
-
136,198,117
516,667
10,200,000
(250,000)
10,466,667
4,791,789
(4,791,789)
-
30,580,106
7,966,904
(378,637)
38,168,373
898,866
1,009,418
-
1,908,284
-
-
-
(1) 56 options were exercised on the expiry of the quoted options in June 2021
The Company at 30 June 2022 has issued share capital amounting to 179,948,117 (2021:136,198,117)
ordinary shares with no par value.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to
the number of shares held.
At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands.
68
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 14: CASH FLOW STATEMENT RECONCILIATION
Reconciliation of net loss after tax to net cash flows from
operations
Loss for the year
Depreciation
Share based payments
Mineral exploration expenditure written off
Changes in assets and liabilities:
(Increase)/Decrease in trade and other receivables and
prepayments
Increase/(Decrease) in trade and other payables
Increase /(Decrease) in provisions
30 JUNE 2022
$
30 JUNE 2021
$
(598,504)
(2,263,093)
10,150
(97,634)
12,832
6,532
1,009,418
679,520
(109,444)
(127,774)
229,744
(5,965)
117,281
(28,330)
(558,821)
(606,446)
NOTE 15: RELATED PARTY DISCLOSURE
There were no related party transactions with Directors and Directors related entities during the year ended
30 June 2022 or 30 June 2021.
NOTE 16: KEY MANAGEMENT PERSONNEL
(a)
Remuneration for Key Management Personnel
Short term employee benefits
Post-employment benefits
Share based payments
Entitlements lapsed(1)
16 (b)
16 (b)
30 JUNE 2022
$
30 JUNE 2021
$
308,457
30,672
165,750
(449,064)
193,537
18,386
542,260
-
55,815
754,183
. (1) Options granted in 2020 to Mr Thomas Ridges lapsed on their terms at the date of his resignation from the Company and were
relinquished.
69
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 16: KEY MANAGEMENT PERSONNEL (Continued)
(b)
Reconciliation of Directors’ Remuneration
Cash component of remuneration
Portion capitalised in mineral exploration expenditure
30 JUNE 2022
$
30 JUNE 2021
$
331,129
(189,828)
211,923
(66,018)
Directors’ remuneration included in Employee Benefits Expense
141,301
145,905
30 JUNE 2022
$
30 JUNE 2021
$
(c)
Reconciliation of Employee Benefits Expense
Directors’ remuneration included in employee benefits expense
Other employees’ remuneration expense
141,301
133,291
145,905
73,859
Total Employee Benefits Expense
274,592
219,764
NOTE 17: SHARE BASED PAYMENTS
(a) Recognised share-based payment
The share-based payment expense recognised for employee services, consultants and tenement acquisition
received during the year is shown in the table below:
Expense arising from equity share-based payment transactions
settled via options
Lapsed equity share-based payment transactions settled during
period
Total expense arising from
share-based payment transactions
30 JUNE 2022
$
30 JUNE 2021
$
54,627
1,009,418
(152,261)
-
(97,634)
1,009,418
The share-based payment plans are described below. There have been no cancellations or modifications to
any of the plans during 2022 and 2021.
70
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: SHARE BASED PAYMENTS (Continued)
(b)
Types of Share based payment plans
Great Western Exploration Limited, Employee Share Option Plan
Share options are granted to senior executives and designed to provide executives an incentive and participate
along with shareholders by increasing the value of the Company’s shares. The options are issued by the
Board having regard, in each case to:
i.
ii.
the contribution to the Company which has been made by the Participant;
the period of employment of the Participant with the Company, including (but not limited to) the years
of service by that Participant;
iii.
the potential contribution of the Participant to the Company; and
any other matters which the Board considers in its absolute discretion, to be relevant.
The options are issued to participants at a price the Board considers appropriate, but in any event, no more
than nominal consideration. Details of options expiry date and exercise price are set out in Note 17 (c) below.
71
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: SHARE BASED PAYMENTS (Continued)
(c)
Summary of Options on issue
Outstanding at
beginning of financial year
Granted during the year:
- unlisted options expiring 12 Oct 2025
- unlisted options expiring 12 Oct 2025
- unlisted options expiring 12 Oct 2025
- unlisted options expiring 29 Dec 2023
- unlisted options expiring 31 Mar 2024
- unlisted options expiring 31 Mar 2024
- unlisted options expiring 19 Apr 2027
- unlisted options expiring 19 Apr 2027
- unlisted options expiring 19 Apr 2027
Lapsed during the year(1)
Expired during the year(2)
Exercised during the year
30 JUNE 2022
30 JUNE 2021
No.
Exercise
Price
No.
Exercise
Price
10,466,667
5,308,456
-
-
-
-
-
-
1,500,000
1,500,000
2,000,000
(3,500,000)
(266,667)
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
1,500,000
2,000,000
1,200,000
1,250,000
2,750,000
-
-
-
-
(5,041,733)
(56)
10,466,667
-
-
-
$0.31
$0.52
$0.37
-
-
-
-
-
-
Outstanding at end of financial year
11,700,000
(1)Includes unlisted options issued to Mr Thomas Ridges that lapsed on their terms on his resignation from the Company on 14th April
2022.
(2)Includes listed options that expired on 31 December 2021 and on 30 June 2021.
The following share-based payment arrangements were in existence during the current and prior reporting
periods:
Grant
Date
No of
Options
Grant
Date
Fair
Value
30 JUNE
2022
Exercise
Price
Expiry
Date
Vesting
Date
Value
recognized
during the
year
Value
recognized
in future
years
12/10/2020
1,500,000
$0.26
$0.00
12/10/2025 12/10/2021 $111,123
-
20/06/2022
1,500,000
$0.080
$0.00
20/06/2027 20/06/2023 $28,110
$114,390
20/06/2022
1,500,000
$0.080
$0.00
20/06/2027 20/06/2024 $14,036
$128,464
20/06/2022
2,000,000
$0.080
$0.00
20/06/2027 20/06/2025 $12,482
$177,518
6/4/2021
2,750,000 $0.0645
$0.37
31/3/2024
6/4/2021
6/4/2021
1,250,000 $0.0442
$0.52
31/3/2024
6/4/2021
29/12/2020
1,200,000
$0.0124
$0.31
29/12/2023 29/12/2020
-
-
-
-
-
-
Total
11,700,000
$165,751
$420,372
72
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: SHARE BASED PAYMENTS (Continued)
Grant
Date
No of
Options
Grant
Date
Exercise
Price
Expiry
Date
Vesting
Date
Fair
Value
30 JUNE
2021
Value
recognized
during the
year
Value
recognized
in future
years
12/10/2020 1,500,000
$0.26
$0.00
12/10/2025 12/10/2021 $278,877
$111,123
12/10/2020 1,500,000
$0.26
$0.00
12/10/2025 12/10/2022 $139,438
$250,562
12/10/2020 2,000,000
$0.26
$0.00
12/10/2025 12/10/2023 $123,673
$396,055
29/12/2020 1,200,000 $0.0124
$0.31
29/12/2023 29/12/2020 $148,807
-
6/4/2021
2,750,000 $0.0645
$0.37
31/3/2024
6/4/2021
$265,997
$166,909
6/4/2021
1,250,000 $0.0442
$0.52
31/3/2024
6/4/2021
$52,355
$126,238
14/12/2018
266,667 $0.00216
$1.20
31/12/2021 14/12/2019
-
-
(d)
Option pricing model
Equity-settled transactions
The fair value of the equity-settled share options granted under the Employee Share Option Plan is estimated
as at the date of the grant using a Monte Carlo Pricing Model as part of the term of the issued options, the
options will vest immediately when the Share Price Equals or exceeds the Exercise Price of the respective
shares after the date of issues of the options.
Binomial Model Pricing Model and Black and Scholes Model taking into account the terms and conditions upon
which the options were granted options included in relation to acquisition of tenements and corporate advisory
services during the period.
Binomial Model Pricing Model
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Weighted average share price at measurement
date ($)
12/10/20
20/06/22
-
54
0.08
5.0
0.00
0.26
-
131.5
3.82
5.0
0.00
0.08
73
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17: SHARE BASED PAYMENTS (Continued)
BlackScholes Model
Grant Date
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of options (yrs)
Option exercise price ($)
Grant Date Share Price
(e)
Share issued in lieu of services
06/04/2021
06/04/2021
29/12/20
-
117
0.08
3.0
0.37
0.25
-
117
0.08
3.0
0.52
0.25
-
117
0.08
3.0
0.31
0.2
No shares were issued in lieu of services during the years ended 30 June 2022 or 30 June 2021.
74
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 18: PARENT INFORMATION
The following information has been extracted from the books and
records of the parent and has been prepared in accordance with
Australian Accounting Standards.
STATEMENT OF FINANCIAL POSITION
ASSETS
Current Assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
30 JUNE 2022
$
30 JUNE 2021
$
5,024,691
13,744,814
18,769,505
5,436,650
10,550,901
15,987,551
441,398
-
441,398
217,619
-
217,619
18,328,107
15,769,932
41,147,188
1,810,650
(24,629,731)
37,883,207
1,908,285
(24,021,560)
18,328,107
15,769,932
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
Total loss
(598,504)
(2,264,392)
Total comprehensive income
(598,504)
(2,264,392)
Guarantees
Great Western Exploration Limited has not entered into any guarantees, in the current or previous financial
year, in relation to the debts of its subsidiaries.
Contingent Liabilities
At 30 June 2022, there were no contingent liabilities in relation to the subsidiaries (2021: Nil).
Contractual commitments
At 30 June 2022, Great Western Exploration Limited had not entered into any contractual commitments for the
acquisition of property, plant and equipment (2021: Nil).
75
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 19: CONTROLLED ENTITIES
Interests are held in the following:
Name
Principal
Activity
Country of
Incorporation Shares
Ownership Interest
30 JUNE
2022
30 JUNE
2021
Vanguard Exploration Limited
Mineral
Exploration Australia
Ordinary
100%
100%
NOTE 20: COMMITMENTS AND CONTINGENCIES
COMMITMENTS
a) Exploration Tenement Leases
In order to maintain rights of tenure to exploration tenements currently
granted, the Group is required to outlay lease rentals and to meet the
minimum expenditure requirements of the Western Australian
Department of Mines, Industry Regulation & Safety.
Within one year
CONTINGENCIES
There were no contingencies at the end of the financial year (2021: Nil).
30 JUNE
2022
$
30 JUNE
2021
$
2,248,500
1,337,500
NOTE 21: EVENTS AFTER BALANCE DATE
The Directors are not aware of any matter or circumstance that has arisen since 30 June 2022 which has
significantly affected or may significantly affect the operations of the Group, the results of those operations, or
the state of affairs of the Group, in future financial years, other than:
• On 21 July 2022, the Company announced that drilling at the Company’s Yandal West Project has
been completed with multiple drill intersections of sulphide mineralization.
• On 31 August 2022, the Company announced the results from the Yandel West Project Drilling
Program, with significant results returned from Harris’ Find.
76
Great Western Exploration Limited
ABN 53 123 631 470
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 22: AUDITORS’ REMUNERATION
The Auditor of Great Western Exploration Limited is Hall Chadwick WA
Audit Pty Ltd (previously known as Bentleys).
Amounts received or due and receivable for
•
•
an audit or review of the financial report of the Group
other services in relation to the Group – other services
30 JUNE
2022
$
30 JUNE
2021
$
39,321
35,283
-
-
39,321
35,283
77
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Great Western Exploration Limited, the Directors of the
Company declare that:
1.
the financial statements and notes, as set out on pages 38 to 77, are in accordance with the
Corporations Act 2001 and:
a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to
the financial statements, constitutes compliance with International Financial Reporting
Standards (IFRS); and
b. give a true and fair view of the financial position as at 30 June 2022 and of the performance
for the year ended on that date of the Company;
2.
in the Directors’ opinion, subject to the matters mentioned in Note 1(a) to the financial statements,
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable; and
3.
the Directors have been given the declarations required by s 295A of the Corporations Act 2001 for
the financial year ended 30 June 2022.
Dated this 8th day of September 2022
Shane Pike
Managing Director
78
To the Board of Directors,
Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
As lead audit Director for the audit of the financial statements of Great Western Exploration Limited for
the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
•
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated Perth, Western Australia this 8th day of September 2022
79
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GREAT WESTERN EXPLORATION
LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Great Western Exploration Limited (“the Company”) and its
subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of financial
position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2022
and of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1.
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 Consolidated Entity in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
80
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
As disclosed in note 11 to the financial statements,
Our review procedures included but were not limited
to:
•
•
•
during the year ended 30 June 2022 the Company
capitalised exploration and evaluation expenditure
was carried at $13,719,581.
Mineral exploration expenditure is a focus area due
to:
•
•
•
The significance of the balance to the
Consolidated Entity’s financial position;
The level of judgement required in evaluating
management’s application of the requirements
of AASB 6 Exploration for and Evaluation of
Mineral Resources (“AASB 6”). AASB 6 is an
industry specific accounting standard requiring
the application of significant judgements,
estimates and industry knowledge. This
includes specific requirements for expenditure
to be capitalised as an asset and subsequent
requirements which must be complied with for
capitalised expenditure to continue to be
carried as an asset; and
The assessment of impairment of mineral
exploration expenditure being inherently
difficult.
Assessing management’s determination of its
areas of interest for consistency with the definition
in AASB 6 Exploration and Evaluation of Mineral
Resources (“AASB 6”);
Assessing the Consolidated Entity’s rights to
tenure for a sample of tenements;
By reviewing the status of the Consolidated
Entity’s tenure and planned future activities,
reading board minutes and discussions with
management we assessed each area of interest
for one or more of the following circumstances
that may indicate impairment of the mineral
exploration expenditure:
• The licenses for the rights to explore expiring
in the near future or are not expected to be
renewed;
• Substantive expenditure for further exploration
in the area of interest is not budgeted or
planned;
• Decision or intent by the Consolidated Entity
to discontinue activities in the specific area of
interest due to lack of commercially viable
quantities of resources; and
• Data indicating that, although a development in
the specific area is likely to proceed, the
carrying amount of the exploration asset is
unlikely to be recorded in full from successful
development or sale; and
• We also assessed the appropriateness of the
related disclosures in note 11 to the financial
statements.
81
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2022, but does not include
the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the
Consolidated Entity or to cease operations, or has 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 the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
82
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 Consolidated Entity’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 Consolidated Entity’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 Consolidated Entity to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Consolidated Entity to express an opinion on the financial report.
We are responsible for the direction, supervision and performance of the Consolidated Entity
audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
83
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2022. The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of Great Western Exploration Limited, for the year ended 30
June 2022, complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated in Perth, Western Australia this 8th day of September 2022
84
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
ADDITIONAL INFORMATION
1.
SHAREHOLDER INFORMATION
1.1
VOTING RIGHTS
Every member has one vote for every fully paid ordinary share held.
1.2
SUBSTANTIAL SHAREHOLDERS AS AT 18 August 2022
Shareholder
Seascape Capital Pty Ltd
Budworth Capital Pty Ltd
No of Shares
24,255,760
24,225,500
1.3
DISTRIBUTION OF HOLDERS AS AT 18 August 2022
1 – 1000
1001 – 5,000
5001 – 10,000
10,001 – 100,000
100,001 – and over
`Total number of holders
Fully Paid Ordinary Shares
No. of Ordinary Shares
776
289
123
304
171
1,663
168,670
749,406
913,504
11,524,239
168,092,298
181,448,117
At 18 August the Company had 1,125 unmarketable parcels
1.4
TOP TWENTY HOLDERS:
Ordinary Shares fully paid: The names of the twenty largest shareholders as at 18 August 2022 are as
follows:
Name
1 SEASCAPE CAPITAL PTY LTD
2 BUDWORTH CAPITAL PTY
3 WESTGATE CAPITAL PTY LTD
4 NINAN PTY LTD
5
SIMON LEE
6 MRS J E SOMES + MS A J SOMES
7 MR JORDAN LUCKETT
8 QUICKSILVER ASSET PTY LTD
9 PORTCULLIS HOUSE PTY LTD
10 AGILIS PTY LTD
11 WOMBAT SUPER INVESTMENTS PTY LTD
12 COVENTINA HOLDINGS PTY LTD
13 P & L CAPITAL INVESTMENTS PTY LTD
85
%
13.36
13.35
No. of Shares
24,236,820
24,225,500
3.88
3.00
2.30
1.51
1.51
1.38
1.32
1.27
1.22
1.21
1.17
7,033,334
5,450,000
4,166,667
2,741,120
2,739,087
2,495,290
2,400,000
2,300,000
2,211,250
2,199,645
2,120,000
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
14 MR GEOFF BARNES
15 NARRAWALLEE CAPITAL PTY LTD
16 MRS GEORGINA MUNRO
17 SUNDEN PTY LTD
18 TAZGA TWO PTY LTD
19 SIMORE PTY LTD
20 ESM LIMITED
1.10
1.10
1.10
1.08
0.99
0.88
0.83
2,000,000
2,000,000
1,990,000
1,953,162
1,793,056
1,603,749
1,500,000
53.56
97,158,680
At 30 June 2022, the Company had no quoted options (GTEOA) outstanding.
1.5
Unlisted option holders:
Class of Unlisted Option
No. of unlisted options on
issue
No of
holders
Exercisable at $0.31 and expiring 29 December 2023
Zero Exercise price expiring 12 Oct 2025 s.t.
milestones
Zero Exercise price expiring 19 Apr 2027 s.t.
milestones
Exercisable at $0.37 and expiring 31 March 2024
Exercisable at $0.52 and expiring 31 March 2024
1,200,000
1,500,000
5,000,000
2,750,000
1,250,000
1
1
1
4
3
1.6
Restricted Securities:
The Company has no restricted securities on issue.
86
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
2.
SCHEDULE OF MINERAL TENEMENTS
Tenement Schedule at 30 June 2022
Project
Tenement
Status
Holder
Ownership
Comments
Atley
Atley
Atley
Atley
Atley
Atley
Atley
Atley
Atley
E 57/1130
Live
Great Western Exploration Limited
100%
E 57/1131
Live
Great Western Exploration Limited
100%
E 57/1160
Live
Great Western Exploration Limited
100%
E 57/1161
Live
Great Western Exploration Limited
100%
E 57/1162
Live
Great Western Exploration Limited
100%
E 57/1164
Live
Great Western Exploration Limited
100%
E 57/1165
Live
Great Western Exploration Limited
100%
E 57/1166
Live
Great Western Exploration Limited
100%
E 57/1204
Pending
Great Western Exploration Limited
100%
Fairbairn
E 69/3443
Live
Vanguard Exploration Ltd
100%
100% Owned Subsidiary
Fairbairn
E 69/3810
Pending
Great Western Exploration Limited
100%
Fairbairn
E 69/3899
Live
Great Western Exploration Limited
100%
Fairbairn
E 69/3903
Pending
Great Western Exploration Limited
100%
Fairbairn
E 69/3906
Live
Great Western Exploration Limited
100%
Forrestania South
E 74/603
Live
Western Areas Ltd
10%
Free Carried To PFS
Three Springs
E51/2010
Live
Great Western Exploration Limited
90%
Firebird
E 53/2129
Live
Jindalee Resources Limited
0%
Westex Resources Free Carried to
BFS
JV with Jindalee Resource Ltd, GTE
Earning 80%
Golden Corridor
E 51/1855
Live
Great Western Exploration Limited
100%
Golden Corridor
E 51/2046
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/1983
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/2124
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/2138
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/2139
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/2141
Live
Great Western Exploration Limited
100%
Golden Corridor
E 53/2142
Live
Great Western Exploration Limited
100%
Lake Way Potash
E 53/1949
Live
Great Western Exploration Limited
100%
Lake Way Potash
E 53/2017
Live
Great Western Exploration Limited
100%
Lake Way Potash
E 53/2026
Live
Great Western Exploration Limited
100%
Lake Way Potash
E 53/2146
Live
Great Western Exploration Limited
100%
87
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
Project
Tenement
Status
Holder
Ownership
Comments
Lake Way Potash
E 53/2206
Pending
Great Western Exploration Limited
100%
Competing Application, second
drawn in ballot.
Yandal West
E 53/1369
Live
Vanguard Exploration Ltd
100%
100% Owned Subsidiary
Yandal West
E 53/1612
Live
Diversified Asset Holdings Pty Ltd
Yandal West
E 53/1816
Live
Diversified Asset Holdings Pty Ltd
80%
80%
Diversified Free Carried To BFS,
Diversified Free Carried To BFS
Copper Ridge
E 51/1727
Live
Great Western Exploration Limited
100%
Copper Ridge
E 51/1734
Live
Great Western Exploration Limited
100%
Copper Ridge
E 51/1856
Live
Great Western Exploration Limited
100%
Copper Ridge
E 53/1894
Live
Great Western Exploration Limited
100%
Extension of Term pending
Copper Ridge
E53/2156
Pending
Great Western Exploration Limited
100%
Yerrida South
E 51/1732
Live
Great Western Exploration Limited
100%
Yerrida South
E 51/1733
Live
Great Western Exploration Limited
100%
Yerrida South
E 51/1993
Live
Great Western Exploration Limited
100
Yerrida South
E51/2062
Live
Great Western Exploration Limited
100%
Yerrida South
E51/2063
Live
Great Western Exploration Limited
100%
Yerrida South
E 53/2027
Live
Great Western Exploration Limited
100%
Yerrida South
E 53/2077
Live
Great Western Exploration Limited
100%
Yerrida South
E 53/2196
Live
Great Western Exploration Limited
100%
Yerrida South
E 51/2078
Pending
Great Western Exploration Limited
100%
Calyerup
E 70/6032
Live
Great Western Exploration Limited
100%
Weld Spring
E 69/4021
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4022
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4023
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4024
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4025
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4026
Pending
Great Western Exploration Limited
100%
Weld Spring
E 69/4027
Pending
Great Western Exploration Limited
100%
Joint Venture with
Sandfire Resources
Limited (1)
Yerrida North JV
E 51/1324
Live
Great Western Exploration Limited
100%
Sandfire Earning 70%
Yerrida North JV
E 51/1330
Live (2)
Great Western Exploration Limited
100%
Sandfire Earning 70%, Extension of
Term pending
Yerrida North JV
E 51/1560
Live (2)
Great Western Exploration Limited
100%
Sandfire Earning 70%
88
GREAT WESTERN EXPLORATION LIMITED
ABN 53 123 631 470
Project
Tenement
Status
Holder
Ownership
Comments
Yerrida North JV
E 51/1712
Live (2)
Great Western Exploration Limited
100%
Yerrida North JV
E 51/1723
Live (2)
Great Western Exploration Limited
100%
Yerrida North JV
E 51/1724
Live (2)
Great Western Exploration Limited
100%
Yerrida North JV
E 51/1728
Live (2)
Great Western Exploration Limited
100%
Yerrida North JV
E 51/1746
Live (2)
Great Western Exploration Limited
100%
Yerrida North JV
E 51/1747
Live (2)
Great Western Exploration Limited
100%
Sandfire Earning 70%, Extension of
Term pending
Sandfire Earning 70%, Extension of
Term pending
Sandfire Earning 70%. Extension of
Term pending
Sandfire Earning 70%, Extension of
Term pending
Sandfire Earning 70%, Extension of
Term pending
Sandfire Earning 70%, Extension of
Term pending
Yerrida North JV
E 51/1819
Live
Great Western Exploration Limited
100%
Sandfire Earning 70%
Yerrida North JV
E 51/1827
Live
Great Western Exploration Limited
100%
Sandfire Earning 70%
Yerrida North JV
E 51/2033
Live
Great Western Exploration Limited
100%
Sandfire Earning 70%
Yerrida North JV
E 51/2068
Pending
Great Western Exploration Limited
100%
Sandfire Earning 70%
Notes
(1)
(2)
Pursuant to clause 3 (e) of the Farm-in Letter Agreement between Sandfire and the Company dated 10 April 2017, Sandfire’s earn-
in is subject to it maintaining the joint venture tenements in good standing and it meeting all statutory expenditure conditions relating
to the joint venture tenements.
These eight tenements are the subject of a plaint application by a third party in the Warden’s Court. The outcome of this plaint
application is unknown at the date of this report. The Company, with the support of Sandfire, intends to seek orders in the Warden’s
court for the dismissal of the plaint applications.
89