ABN 70 611 695 955
2019 Annual Report
Contents
Key Highlights .................................................................................................................................................. 3
1
Chairmans Letter ............................................................................................................................................. 4
2
Review of Operations ...................................................................................................................................... 5
3
Corporate Activities ....................................................................................................................................... 19
4
Directors’ Report ........................................................................................................................................... 21
5
Independence Declaration ............................................................................................................................ 32
6
Auditors Report ............................................................................................................................................. 33
7
Directors’ Declaration .................................................................................................................................... 36
8
Statement of Profit or Loss and Other Comprehensive Income ................................................................... 37
9
Statement of Financial Position ..................................................................................................................... 38
10
Statement of Changes in Equity .................................................................................................................... 39
11
12
Statement of Cash Flows ............................................................................................................................... 40
13 Notes to the Financial Statements ................................................................................................................ 41
Information Required by the Australian Securities Exchange Limited .......................................................... 60
14
15 Corporate Directory ....................................................................................................................................... 62
Great Boulder Resources Limited – Annual Report 2019
2
1 Key Highlights
Corporate
Great Boulder maintained its tight capital structure, with 81.6m ordinary shares on issue as at 30 June 2019
and no debt
Subsequent to EOFY the Company has completed a placement and is undertaking a 1:3 rights issue to raise a
total of $2m
Projects
Yamarna
Tarmoola
An emerging copper-nickel-cobalt province,
located 130km east of Laverton and 25km west
of the Gruyere gold project in Western Australia
Mt Venn discovery (2017) and Eastern Mafic
discovery (2018): extensive copper-nickel-cobalt
mineralisation outlined over several kms
Metallurgical testwork is well advanced on
producing copper sulphide concentrate and
cobalt-nickel sulphate for the battery market
Located in the heart of the Leonora gold district
Nickel sulphide (vaesite) drilled in palaeochannel sands
during the June quarter
Prospective EM targets remaining to be drilled,
including a basal contact anomaly at Sturt Meadows
Whiteheads
Advanced gold project located 45km north of Kalgoorlie
Winchester
Numerous high-grade intersections in historic drilling
A known copper-nickel system located 40km
Multiple old workings of significant size
north of Mt Venn
Large-scale, coherent gold-in-soil anomalies
Great Boulder is earning a 75% interest in the
project from Ausgold Ltd, currently at 51%
First drilling scheduled for October 2019.
High-tenor nickel sulphides confirmed by drilling
in the December quarter
Mt Carlon
Located 60km south of Mt Venn
Two conceptual targets: a large magnetic and
gravity response indicating a possible mafic
intrusion; and an ultramafic unit mapped over
7km with elevated nickel and copper values
EM survey completed August 2019
Great Boulder Resources Limited – Annual Report 2019
3
2 Chairman’s Letter
Dear Shareholder
I am pleased to present the Company’s annual report for the 2019 financial year.
During the year the Company continued to progress its Copper-Nickel-Cobalt projects at Yamarna and
Winchester, with additional RC and diamond drilling at Mt Venn, initial RC and diamond drilling at Eastern Mafic
and a first-pass RC program at Winchester. In addition to this the Company tested gold targets at Tarmoola, and
regional aircore programs at Tarmoola and Winchester which added to our knowledge of the stratigraphy and
litho-geochemistry in both areas.
At the end of FY19 the Company was in the final stages of planning a regional airborne EM survey over the Mt
Carlon project, which was completed in August to complete the project earn-in from Gold Road. We are currently
assessing the results of the survey in order to plan further exploration.
The Operations Report goes into further detail on these projects.
Following a review of previous exploration at Jundee South that project was relinquished in June 2019.
In parallel to the ongoing field program, the Company also completed work on its research and development
project seeking to unlock value from the Yamarna sulphide ores through a simple metallurgical process to extract
copper, nickel and cobalt. This has resulted in defining a simple flow-sheet resulting in high recoveries of copper
sulphide, nickel sulphide and cobalt sulphate, resulting in a high value product suitable for the battery and EV
markets.
In April 2019 Great Boulder announced the resignation of inaugural Managing Director Stefan Murphy, and in
June Andrew Paterson stepped into the role to lead the Company forward.
Subsequent to the end of FY19 the Company took a significant step forward in announcing two separate
acquisitions for a combined 430km2 tenement holding over the Whiteheads Project, north of Kalgoorlie.
Whiteheads is an advanced gold project with a number of high-grade intersections in historic drilling as well as
large-scale, coherent gold-in-soil anomalies which require testing. On the western side of the project area there
is also some potential for komatiite-hosted nickel sulphide mineralisation which will be investigated in future
field programs.
As an advanced gold project with potential for nickel discoveries, Whiteheads is exactly in line with our original
strategy of being a gold and nickel explorer. The Board are excited by the potential at Whiteheads, and look
forward to seeing the results from our ongoing drilling programs.
Lastly I would like to thank our directors, officers, staff, consultants and contractors for their tireless efforts
throughout the year, and I look forward to continuing those relationships in the year ahead.
Gregory Hall
Great Boulder Resources Limited – Annual Report 2019
4
3 Review of Operations
YAMARNA PROJECT
Background
The Yamarna Project is located 130 km east of Laverton in the Eastern Goldfields District of Western Australia
and consists of six granted exploration licences and one granted prospecting license. Great Boulder holds a 75%
interest in the Mt Venn Project through a Joint Venture agreement with Eastern Goldfields Mining Company Pty
Ltd (EGMC). Both Great Boulder and EGMC are contributing to project expenditure on a pro-rata basis, equal to
their equity interest (75:25).
The Mt Venn and Eastern Mafic discoveries are both located within the project area.
Mt Venn lies immediately west of the Yamarna greenstone belt and covers the southern extensions of the Mt
Venn greenstone belt. The Eastern Mafic complex, located 7km south-east from Mt Venn, was identified in early
2018 as potentially part of the same magmatic event as Mt Venn, but formed earlier and closer to the source of
the intrusion. Exploration activities during 2018 and 2019 have confirmed the Eastern Mafic complex represents
a large sulphide bearing mafic intrusion that is most likely part of the same magmatic event as Mt Venn.
and
nickel
copper,
Extensive
cobalt
mineralisation has been discovered at the Mt
Venn and Eastern Mafic complexes. Great
Boulder has defined copper dominant
mineralisation along the western Mt Venn
trend and identified a more nickel-rich part of
the system at the Eastern Mafic.
During the reporting year, Great Boulder
continued its exploration program from FY18
testing numerous EM conductors identified in
the 2017 moving loop EM (MLEM) survey. This
consisted of ongoing RC drilling at Mt Venn
focusing on strike and dip extensions to the
central zone, while also testing the northern
extension. At the Eastern Mafic the first RC
holes were drilled into EM targets, leading to
the discovery of higher-tenor nickel sulphides
and supporting the Company’s view that the
Eastern Mafic is closer to the source of high-
grade nickel mineralisation. Further drilling
interpreted feeder zone of
targeted the
intrusions based upon 3D modelling of gravity
and magnetic data.
FIGURE 1: PROJECT LOCATIONS IN THE YAMARNA REGION
Great Boulder Resources Limited – Annual Report 2019
5
MT VENN COMPLEX
The Company continued RC and diamond drilling at Mt Venn, with holes continuing to intersect wide zones of
copper-dominant sulphide mineralisation. The mineralisation has been defined over more than 1km of strike,
and it remains open along strike and also down dip. Drilling during the September quarter defined mineralisation
down to 240m below surface. The northern extension of the system was also identified during that drilling
program, intersecting zones of sulphide 20 to 44m wide.
Significant intersections from Mt Venn announced during the year are listed in the table below.
Hole ID
18MVRCD020
18MVRCD020
From
m
152
206
18MVRC021
18MVRC021
18MVRC021
18MVRC022
18MVRC023
-including
18MVRC023
18MVRC024
18MVRC024
-including
-including
18MVRC025
-including
-including
40
67
78
43
236
245
256
102
141
142
169
141
143
155
To
m
159
211
50
72
80
49
250
249
261
103
184
153
174
161
145
158
Interval
m
7
5
10
5
2
6
14
4
5
1
43
11
5
20
2
3
18MVRCD026
-including
18MVRCD026
18MVRCD026
219.8
227.6
249.7
267.7
270.2
TABLE 1: SIGNIFICANT INTERSECTIONS AT MT VENN
233.7
230.5
258.0
277.8
273.1
-including
13.9
2.9
8.3
10.1
2.9
Cu
%
0.5
0.6
0.5
0.4
1.2
0.7
0.6
1.0
0.6
2.8
0.4
0.5
0.8
0.6
1.2
1.2
0.6
1.0
0.6
0.5
1.0
Ni
%
0.1
0.2
0.1
0.1
0.0
0.1
0.2
0.2
0.2
0.1
0.2
0.3
0.2
0.1
0.1
0.1
0.1
0.2
0.1
0.1
0.1
Co
%
0.04
0.07
0.03
0.04
0.01
0.02
0.05
0.05
0.06
0.03
0.06
0.09
0.05
0.02
0.02
0.02
0.05
0.06
0.02
0.03
0.03
Great Boulder Resources Limited – Annual Report 2019
6
FIGURE 2: MT VENN RC AND DIAMOND DRILL RESULTS OVER RTP 1VD MAGNETICS AND DHEM CONDUCTOR
PLATES
Great Boulder Resources Limited – Annual Report 2019
7
EASTERN MAFIC COMPLEX
During FY19 Great Boulder drilled the first RC and diamond holes into selected targets at the Eastern Mafic
Complex. Three distinct sulphide phases were identified in the Eastern Mafic drilling, with higher-tenor nickel
sulphide found along the feeder zone and neck of the intrusion at Zermatt considered the most prospective for
economic nickel sulphide mineralization. The nickel tenor – a theoretical measure of the nickel grade in a 100%
sulphide body within each zone – is used by the Company to vector in on areas of potentially high-grade nickel.
This theory supports the view that the Eastern Mafic is closer to the source of the nickel-rich magma, while Mt
Venn sulphides contain more copper and cobalt.
Assay and geophysical data from the drilling program was used to better define the geometry of the mafic
intrusion, successfully mapping discrete magma pulses hosting different phases of copper-nickel sulphide
mineralisation. A key conclusion drawn from this revised interpretation is that the Eastern Mafic has a vertical
plumbing system, forming at depth rather than along strike to the south-east and that drilling to date has only
intersected the top of the intrusion, leaving the main body of the intrusion untested.
The evidence of multiple magma pulses with increasing nickel tenor at depth supports the potential for further
magma pulses towards the core of the intrusion to host more nickel-rich sulphide mineralisation.
Great Boulder’s exploration strategy at the Eastern Mafic complex is to continue vectoring in to discover the
magma feeder zone or chonolith responsible for the multiple magma pulses identified in drilling to date. The
potential for the discovery of a chonolith is important because many globally-significant nickel sulphide
orebodies occur within these types of intrusions. In magmatic-hosted nickel sulphides the feeder zones are likely
to contain sulphides with the highest nickel concentration.
Great Boulder Resources Limited – Annual Report 2019
8
18EMDD001
5.3m @ 0.6% Cu, 0.1% Ni
18EMRC001
3m @ 0.4% Cu, 0.2% Ni, 0.06% Co
12m @ 0.3% Cu, 0.3% Ni, 0.03% Co
5m @ 0.4% Cu, 0.3% Ni, 0.04% Co
18EMRC002
3m @ 0.2% Cu, 0.3% Ni, 0.04% Co
2m @ 0.5% Cu, 0.2% Ni, 0.03% Co
Zermatt
18ZERC002
33m @ 0.2% Cu, 0.3% Ni, 0.04% Co
18EMRC021
4m @ 1.3% Cu, 0.2% Ni, 0.02% Co
9m @ 0.6% Cu, 0.4% Ni, 0.04% Co
Cortina
18EMRC006
7m @ 0.2% Cu, 0.2% Ni, 0.03% Co
18EMRC019
7m @ 0.5% Cu, 0.1% Ni,
0.02% Co
18EMRC014
2m @ 0.4% Ni, 0.04% Co
7m @ 0.2% Cu, 0.3% Ni, 0.05% Co
7m @ 0.4% Cu, 0.2% Ni, 0.02% Co
18ZERC001
5m @ 0.3% Cu, 0.4% Ni, 0.03% Co
7m @ 0.2% Cu, 0.3% Ni, 0.05% Co
18EMRCD013
7.1m @ 0.7% Cu, 0.2% Ni, 0.04% Co
9.5m @ 0.6% Cu, 0.1% Ni, 0.01% Co
5.3m @ 0.2% Cu, 0.3% Ni, 0.02% Co
ML13
18BLRC002
4m @ 0.3% Cu, 0.4% Ni, 0.06% Co
3m @ 0.3% Cu, 0.3% Ni, 0.03% Co
0
0.5
1
Kilometr
e
18EMDD002
3.2m @ 0.3% Cu, 0.2% Ni, 0.04% Co
2.5m @ 1.0% Cu, 0.1% Ni, 0.04% Co
Ben Lomond
FIGURE 3: EASTERN MAFIC SIGNIFICANT INTERSECTIONS
Great Boulder Resources Limited – Annual Report 2019
9
METALLURGICAL TESTWORK
The Company has now completed metallurgical testwork on drill core from Mt Venn.
The purpose of the research was to establish a robust and viable process to extract copper, nickel and cobalt
from the sulphide material. The tests concentrated on the following basic criteria:
Produce a saleable copper concentrate with minimal loss of other key metals;
Optimise leaching conditions to extract nickel and cobalt from the bulk pyrrhotite concentrate;
Demonstrate effective impurity rejection; and
Select a preferred route for nickel and cobalt recovery.
Initial metallurgical trials have been completed
on a composite sample from diamond drill hole
17MVDD002 representing a massive nickel-
cobalt (pyrrhotite) zone at the Mt Venn deposit.
These initial trials aimed to investigate possible
metallurgical flowsheet options and
demonstrate the ability to leach the massive
pyrrhotite and produce separate nickel, cobalt
and copper products.
A clean copper flotation concentrate with no
in the
deleterious elements was produced
flotation circuit grading between 16 and 20% Cu.
This flotation concentrate is mixed with the high
purity copper sulphide (46% Cu) produced from
the hydrometallurgical circuit to generate a
combined saleable +20% Cu concentrate at over
90% overall recovery.
The bulk concentrate underwent leaching and
solution purification testing to produce high
value sulphide products that are in demand in
the battery and EV markets. Pressure oxidation
(POX) was selected in this phase of work due to
higher recoveries and improved quality of leach
solution for downstream processing.
FIGURE 4: SIMPLIFIED PROCESS FLOWSHEET.
Successful tests were carried out at 1,000 kPa oxygen pressure and 150°C temperature, with almost complete
extractions of value metals typically achieved within 60-90 minutes.
Following POX, the leached slurry is neutralised with limestone to remove residual acid and the majority of iron
from solution. Minor losses of copper occur at this stage but most of the nickel and cobalt metal is retained in
solution (>95%).
Great Boulder Resources Limited – Annual Report 2019
10
Precipitation testwork on neutralised liquor successfully produced very high-quality copper sulphide and a
combined nickel and cobalt sulphide product with no deleterious elements and at very high extraction rates of
95-99%.
SUMMARY OF RESULTS: PRECIPITATE ASSAYS
Assay (%)
Product
Copper sulphide
Mixed sulphide
Cu
45.9
0.81
Ni
2.85
25.9
Co
1.28
9.22
Fe
0.30
1.49
Al
0.20
0.29
Ca
2.10
0.22
Mg
0.36
0.31
The copper sulphide product is extremely high-grade and free of any deleterious elements. It is added back into
the copper flotation concentrate to produce an attractive +20% copper concentrate at a high overall recovery of
over 90%.
The mixed nickel-cobalt concentrate is a high-grade and very high-value intermediate product (+35% Ni+Co)
suitable for the battery and EV markets.
Solvent extraction (“SX”) and crystallisation testwork has also been successfully completed to produce a very
high purity cobalt sulphate product grading 29% Co or +99% Cobalt sulphate.
Additional nickel sulphide precipitation testwork was conducted on cobalt free liquor post cobalt removal by SX.
A very high purity nickel sulphide concentrate grading 41% Ni and 1.5% Co was produced.
While the testwork to produce a high-value and readily saleable cobalt sulphate product was successful, the
solvent extraction circuit and additional solution purification requirements add significant cost and technical risk
to the process flowsheet. Producing a copper sulphide and mixed nickel-cobalt sulphide concentrate is currently
the preferred flowsheet.
Great Boulder Resources Limited – Annual Report 2019
11
WINCHESTER PROJECT
Great Boulder is exploring the Winchester Project under an earn-in agreement with Ausgold Limited. Post the
end of FY19 the Company has a 51% interest in the project, with the aiming of moving to 75% with further work.
During the reporting year the Company drilled its first RC holes into the Winchester Prospect at Winchester, as
well as a regional aircore program designed to increase the understanding of local stratigraphy and geochemistry.
Two RC holes were drilled during the December quarter. Both intersected primary sulphide mineralisation at the
Winchester prospect previously drilled by Ausgold. Significant intersections include:
7m at 1.1% Cu, 0.2% Ni, 0.01% Co, 0.19g/t Au, 0.13g/t PGE from 120m (18WNRC001)
including 2m at 1.8% Cu, 0.2% Ni, 0.02% Co, 0.25g/t Au, 0.22g/t PGE
13m at 0.9% Cu, 0.3% Ni, 0.02% Co from 138m (18WNRC002);
including 5m at 1.1% Cu, 0.7% Ni, 0.04% Co, 0.10g/t PGE.
Sulphide mineralisation at Winchester is of higher nickel tenor than the other regional projects, demonstrating
the potential to achieve grades of 3% nickel in massive sulphide. Drilling will continue to target strike and dip
extensions to mineralization at this prospect.
During the June quarter 118 aircore holes were drilled for the purposes of mapping the regional stratigraphy and
geochemistry. Downhole assay results identified a significant zone of coincident nickel, copper and PGE
anomalism over a strike extent of almost 3km, extending from the Winchester prospect down to the southern
boundary of the tenement.
FIGURE 5: AC DRILLING OVER AEROMAGNETIC INVERSION MODEL (PINK) AND GRAVITY INVERSION MODEL
(GREEN) SURFACES. LEFT IMAGE DISPLAYS AC COLLARS CODED BY COLOUR (NI) AND CONTOUR (CU,PGE)
FOR THE MAXIMUM VALUES INTERSECTED DOWNHOLE WHILE THE RIGHT IMAGE DISPLAYS THE ASSAY VALUE
OF THE BOTTOM OF HOLE SAMPLE.
Great Boulder Resources Limited – Annual Report 2019
12
Great Boulder also completed a ground gravity survey at Winchester to assist with geological interpretation, with
station intervals of 200m on lines 400m apart. This information will be used in ongoing modelling and drill
targeting.
The Company intends to continue exploring the Winchester Project, with an emphasis on extending known
mineralisation at the namesake Winchester prospect with additional RC and diamond drilling.
FIGURE 6: CROSS-SECTION OF THE WINCHESTER PROSPECT SHOWING PROPOSED DRILLING
Great Boulder Resources Limited – Annual Report 2019
13
MT CARLON PROJECT
The Mt Carlon project, located 60km south of Mt Venn, was originally identified during a regional review to
identify potential mafic intrusions that may host magmatic nickel-copper-cobalt sulphide mineralisation. Great
Boulder entered into an earn-in agreement with Gold Road Resources to acquire 100% of the project. Post the
end of FY19 this earn-in has been successfully completed.
There are two conceptual targets within Mt Carlon. The first is an area of strong geophysical magnetic and gravity
response on the eastern side of the greenstone belt which may represent a large mafic intrusion. The second is
an ultramafic unit mapped over 7km of strike in which historic drilling has identified elevated nickel and copper
values.
Since the end of FY19 the Company has completed a regional airborne EM survey to identify conductive
anomalies as possible sulphide targets. With the data acquisition now completed, Great Boulder are assessing
the resultant images with a view to commencing drill testing shortly.
FIGURE 7: MT CARLON GEOLOGY & MAX NI PPM
FIGURE 8: MT CARLON MAGNETICS
Great Boulder Resources Limited – Annual Report 2019
14
TARMOOLA PROJECT
The Tarmoola project is located approximately 40 km northwest of Leonora and in close proximity to King of the
Hills and Thunderbox gold mines, as well as the Waterloo and Sinclair nickel mines. Great Boulder has executed
a JV agreement with EGMC to earn a 75% interest in the Tarmoola project by funding a $1,400,000 exploration
program over five years.
Tarmoola is located within the Sons of Gwalia Domain of the Leonora greenstone belt and is composed
predominantly of basalt, with lesser dolerite, komatiite, and interflow sedimentary units. A kilometre-scale
internal granitoid intrudes the central portion of the project area. Several historical gold deposits are located
around the margin of the Tarmoola project, associated with differentiated granitoid intrusions along northwest
trending regional structures (e.g. Diorite King, Victory and Mount Stirling).
During the December quarter the Company drilled 11 RC holes into structural and geochemical targets on the
eastern side of the project looking for possible mineralisation on the Ursus Fault and Marionette Shear. Although
elevated pathfinder elements were detected there was little encouragement in the gold assays.
In 2019 the Company’s focus moved to
the northern and western portions of
Tarmoola, with an aircore program of 76
holes testing three areas in the north,
northwest and eastern sides of the
project.
At the Sturt Meadows prospect on the
western contact of the internal granitoid,
aircore drilling intersected unusual nickel
sulphides near the base of a deep
palaeochannel. As announced to the
market in July 2019, the sulphides were
identified as vaesite, a nickel mineral
which may also contain cobalt. The
presence of sulphide-cemented clasts
within palaeochannel sediments may
indicate
from
supergene processes. Further drilling is
planned
the
test
to
palaeochannel in this area.
remobilised
sulphide
beneath
identified
Slightly further southwest at the same
prospect, reinterpretation of old MLEM
and FLEM data
several
conductive anomalies that have not been
previously tested. One of these is a
conductor at the stratigraphic contact
between ultramafics and basalt, a highly
prospective setting for nickel sulphide
accumulation. This target will be drilled at
the same time as the palaeochannel
intersection.
FIGURE 9: 2019 AIRCORE COLLARS
Great Boulder Resources Limited – Annual Report 2019
15
WHITEHEADS PROJECT
In late August 2019 the Company announced the acquisition of an option to acquire a 75% interest in the
Whiteheads Gold Project from Zebina Minerals Pty Ltd. Under the terms of the agreement, Great Boulder can
earn a 75% interest in the project by spending $200,000 on exploration. The consideration for the option was a
value of $100,000 and the consideration to exercise the option is a further $400,000, with both payments being
50% cash and 50% GBR shares.
The Whiteheads project consists of three Exploration Licences covering an area of approximately 230km2
between 45km and 70km north of Kalgoorlie. Whiteheads is an advanced gold project with numerous high-grade
intersections in historic drilling, as well as several large, coherent gold-in-soil anomalies up to 6.5km long.
in
Subsequent to that announcement, in early
September the Company announced an
agreement with Mithril Resources Ltd to
acquire an 80% interest in the adjacent
two stages:
Lignum Dam project
acquiring 51% by spending $400,000 on
exploration over two years; and then
moving to 80% by spending an additional
$600,000 over the next two years. The
agreement has a minimum commitment of
$120,000 in expenditure if GBR elects not
to proceed with the farm-in.
These two contiguous areas will be jointly
known as the Whiteheads Project.
is a highly
The Whiteheads project
attractive area
for gold exploration
because, in spite of the amount of work
done by previous explorers, its recent
history has been one of fragmented
ownership by multiple companies. As a
result, Great Boulder has a unique
opportunity to optimise the potential of
Whiteheads as an advanced gold project
with walk-up drill targets and multiple
other untested surface gold anomalies.
FIGURE 10: WHITEHEADS LOCATION MAP SHOWING THE ZEBINA
AND MITHRIL ACQUISITIONS.
Great Boulder Resources Limited – Annual Report 2019
16
Previous drilling intersections at Whiteheads include:
8m @ 7.19g/t Au from 74m in SL083 (Seven Leaders prospect)
23m @ 2.920g/t Au from 87m to EOH in SL068 (Seven Leaders)
7m @ 5.91g/t Au from 64m in LBRC013 (Lady Betty prospect)
3m @ 6.62g/t Au from 60m in LBRC007 (Lady Betty)
3m @ 11.90g/t Au from 75m in LBRC008 (Lady Betty).
a
in
zone
extending
Seven Leaders and Lady Betty are both
on the Whiteheads mineralised corridor,
a
south-
southeasterly direction for over 9km
from the northern tenement boundary
before disappearing under an area of
transported cover, and characterized by
multiple old gold shafts, high-grade
drilling
intersections such as those
highlighted above, and a large coherent
gold-in-soil anomaly stretching for over
6.5km at over 25ppb Au.
Lignum Dam
On the western side of the project within
area previous
the
exploration has mainly focused on nickel
sulphide potential within ultramafic
(peridotites and komatiites).
rocks
Drilling by Hemisphere Resources in 2008 returned a best
intersection of 2m @ 1.55% Ni from 44m at the Drumstick
prospect. There is also potential for gold in this area,
structurally-controlled
particularly
mineralization along strike from the Lindsays Gold Project
owned by KalNorth Gold Mines Ltd, which is surrounded by
the Whiteheads tenement package.
extensions
of
Geologically the Whiteheads project straddles the terrane
boundary between rocks of the Kalgoorlie Terrane to the
west, and the Kurnalpi Terrane to the east. The presence of
deep crustal structures such as this, as well as other large-
scale structures striking north-northwest through the project,
is significant for the potential for these features to act as a
conduit for mineralising fluids, particularly for structurally-
controlled gold deposits.
in Figure 11 shows the gold-in-soil
The map shown
geochemistry on the eastern portion of Whiteheads. The
significant size of the Whiteheads mineralised corridor stands
out, terminating under creek drainage at the south end, with
the Arsenal trend another obvious target for drilling.
FIGURE 11: WHITEHEADS SOIL GEOCHEMISTRY
Great Boulder Resources Limited – Annual Report 2019
17
FIGURE13: WHITEHEADS PROSPECTS OVER
REGIONAL AIRMAG GEOPHYSICS
FIGURE 12: 1:500,000 INTERPRETED GEOLOGY (GSWA)
Great Boulder Resources Limited – Annual Report 2019
18
4 Corporate Activities
There were no capital raising events during the 2019 financial year. On 16 July 2018 an additional 250,000
options were exercised and shares allotted. After issuing 1.5m shares to Ausgold Limited in consideration for
the Winchester option, the Company ended the year with 81.6m shares on issue.
Subsequent to the FY19 year end, in September 2019 the company placed 17,500,000 shares at $0.04 to raise
$700,000 and issued 980,392 shares to Zebina Minerals Pty Ltd as consideration for the Whiteheads option.
The issued share capital of the Company at the date of this report is:
Class of Securities
Ordinary fully paid shares
Quoted on the ASX
Escrowed (12/12/2019)
Escrowed (09/01/2020)
Issued Capital
100,090,509
98,610,117
500,000
980,392
Unlisted Options (exercisable at $0.20 and expire 18/11/2020)
34,629,893
Unlisted Options (exercisable at $0.20 and expire 18/03/2022)
Unlisted Performance Rights
Competent Person’s Statement
250,000
Nil
Exploration information in this Annual Report is based upon work undertaken by Andrew Paterson who is a Member of the Australasian
Institute of Geoscientists (AIG). Mr Paterson has sufficient experience that 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’ (JORC Code). Mr Paterson is Managing
Director of Great Boulder and consents to the inclusion in the report of the matters based on their information in the form and context
in which it appears.
Forward Looking Statements
This Annual Report is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as
to the accuracy, reliability, relevance or completeness of the material contained in the Annual Report and nothing contained in the Annual
Report is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby
excludes all warranties that can be excluded by law. The Annual Report contains material which is predictive in nature and may be affected
by inaccurate assumptions or by known and unknown risks and uncertainties, and may differ materially from results ultimately achieved.
The Annual Report contains “forward-looking statements”. All statements other than those of historical facts included in the Annual
Report are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to
risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or
implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility,
currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well
as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to
release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Annual Report,
or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should
consider seeking appropriate professional advice in reviewing the Annual Report and all other information with respect to the Company
and evaluating the business, financial performance and operations of the Company. Neither the provision of the Annual Report nor any
information contained in the Annual Report or subsequently communicated to any person in connection with the Annual Report is, or
should be taken as, constituting the giving of investment advice to any person.
Great Boulder Resources Limited – Annual Report 2019
19
Appendix 2 – Tenement Schedule
Project
Tenement
Number
Yamarna
Yamarna
Yamarna
Yamarna
Yamarna
Yamarna
Yamarna
E38/2320
E38/2685
E38/2952
E38/2953
E38/2957
E38/2958
P38/4178
Status
Granted
Granted
Granted
Granted
Granted
Granted
Granted
% Held % Earning
GBR Status
75%
75%
75%
75%
75%
75%
75%
Mt Carlon
E38/2902
Granted
100%
100%
Option completed
Winchester South E38/3340
Granted
100%
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
Tarmoola
P37/8935
E37/1241
E37/1242
P37/8667
P37/8668
P37/8669
P37/8670
P37/8671
P37/8672
P37/8673
P37/8674
P37/8675
P37/8676
P37/8677
P37/8678
P37/8679
P37/8680
P37/8681
P37/8682
P37/8683
P37/8684
P37/8685
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Winchester
Winchester
E38/2129
E38/3311
Granted
Application
51%
0%
Whiteheads
Whiteheads
Whiteheads
Whiteheads
Whiteheads
Whiteheads
Whiteheads
E27/538
E27/582
E27/584
E27/544
E27/588
E27/622
P27/2430
Granted
Granted
Granted
Granted
Application
Application
Application
0%
0%
0%
0%
0%
0%
0%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
75%
80%
80%
80%
75%
75%
75%
75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 80%
Option to acquire 80%
Option to acquire 80%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Option to acquire 75%
Great Boulder Resources Limited – Annual Report 2019
20
5 Directors’ Report
Your directors have pleasure in presenting their report, together with the financial statements, for the year
ending 30 June 2019 and the auditor’s report thereon.
Directors
The names of the directors of Great Boulder Resources Limited during the financial period and to the date of this
report are:
Gregory C Hall (Non-Executive Chairman)
Andrew G Paterson (Managing Director) (appointed 24 June 2019)
Murray E Black (Non-Executive Director)
Melanie J Leighton (Non-Executive Director)
Stefan K Murphy (Managing Director) (resigned 3 May 2019)
Directors have been in office since the start of the financial period to the date of this report unless otherwise
stated.
Directors’ Information
Gregory C Hall Non-Executive Chairman
Greg Hall is a director of Golden Phoenix International Pty Ltd a geological consulting company. Greg was Chief
Geologist for the Placer Dome Group from 2000 to 2006. He managed Placer Dome’s exploration activity in China
from 1993 to 2001. Before joining Placer Dome in 1988, he managed exploration in Western Australia for CSR
Limited. He made significant contributions to the discovery of Rio Tinto’s Yandi iron ore mine in the Pilbara region
of Western Australia and to Gold Field's Granny Smith gold mine in WA including Keringal, Wallaby and Sunrise
satellite gold mines. He was educated at the University of New South Wales and graduated with Bachelor of
Applied Science (First Class Honors) in 1973.
Andrew G Paterson, Managing Director (appointed 24 June 2019)
Andrew is a geologist with more than 25 years’ experience in mining and exploration in Australia and Papua New
Guinea. Andrew’s career has encompassed the gold, nickel, iron ore and lithium sectors, ranging from project
identification and grassroots exploration through to surface and underground operations.
Andrew has a Bachelor of Engineering (mining Geology and Mineral Exploration) and a Graduate Diploma in
Mining from Curtin University. He is also a Member of the Australian Institute of Geoscientists and a Graduate
member of the Australian Institute of Company Directors.
Murray Edward Black, Non-Executive Director
Mr Black has over 40 years’ experience in the mineral exploration and mining industry and has served as an
Executive Director and Chairman for several listed Australian exploration and mining companies. He owns and
manages a substantial private Australian drilling business, has interests in several commercial developments and
has significant experience in capital financing. Mr Black has acquired and managed the exploration projects
described in this document over a 20 year period. Mr Black was a founding director and is currently the Non-
executive chairman of ASX listed company Hot Chili Limited.
Great Boulder Resources Limited – Annual Report 2019
21
Melanie J Leighton, Non-Executive Director
Melanie Leighton holds a degree in Geology from the University of Western Australia is a Member of the AIG and
has greater than 18 years’ experience within the mineral exploration industry. She currently holds the position
of General Manager- Technical Services with Hot Chili Limited. Since 2011 Mrs Leighton has managed and
coordinated resource estimation, land management, systems development, data integration, and stakeholder
relations for Hot Chili. Prior to her time with Hot Chili, Melanie held senior geological roles with Northwest
Resources, Hill 50 Gold and Terra Gold gaining practical and management experience within the areas of
exploration, mining and resource development. Mrs. Leighton has extensive experience in mineral exploration,
resource development and project feasibility studies.
Corporate Information
Great Boulder Resources Limited is a company limited by shares and is domiciled in Australia.
Principal Activities
During the year, the company was principally involved in mineral exploration in Western Australia.
Results of Operations
The results of the company for the year ended 30 June 2019 was a loss of $1,353,836 (2018: loss $1,372,170).
Dividends
No dividends were paid or declared since the end of the previous year. The directors do not recommend the
payment of a dividend.
Review of Operations
Refer to Operations Report on pages 5 to 18.
Significant Changes in the State of Affairs
There were no significant changes to the state of affairs, during or subsequent to the end of the reporting period,
other than what has been reported in other parts of this report.
Matters Subsequent to the End of the Financial Year
On 30 August 2019 the Company announced a capital raising, comprising of a placement of this issue of
17,500,000 fully paid ordinary shares at an issue price of $0.04 per share to raise $700,000 and a non-
renounceable entitlement offer of 1 share for every 3 shares held at an issue price of $0.04 per share to raise
$1,334,540. The placement was completed with funds received and shares issued by 9 September 2019. The
rights issue prospectus was lodged on the ASX on 9 September 2019, opened on 18 September 2019 and is
expected to close on 27 September 2019. Shares are expected to be quoted on a deferred settlement basis on
30 September 2019.
On 30 August 2019, the Company announced it had an option to acquire a 75% interest in an advanced gold
project from Zebina Minerals Pty Ltd (Zebina). To acquire a 12-month option to explore the project, the Company
paid $50,000 and issued 980,392 fully paid ordinary shares at an issue price of $0.51 per share on 9 September
2019. During the option period the Company has committed to a minimum on-ground expenditure of $200,000.
To exercise the option, the Company must pay Zebina $200,000 cash and $200,000 in fully paid ordinary shares
(based on a 10% discount to the 20-day vwap at the date of exercise of the option) plus a non-for-one free
Great Boulder Resources Limited – Annual Report 2019
22
attaching 3 year option valued at 125% of the 20-day vwap at the date of exercise.
On 9 September 2019 the Company announced it had signed an earn-in agreement with Mithril Resources Ltd
(ASX: MTH) (Mithril) under which the Company can earn up to 80% of the Lignum Dam Project in WA. Stage 1 of
the earn-in agreement takes the Company to 51% ownership by spending a minimum of $400,000 on exploration
over two years. Stage 2 takes the Company to 80% by spending an additional $600,000 over the next two years.
Mithril’s 20% interest is free-carried to a decision to mine. The Company has a minimum exploration
commitment of $120,000 if it decides not to proceed with the farm-in.
There were no other significant changes to the state of affairs, during or subsequent to the end of the reporting
period, other than what has been reported in other parts of this report.
Likely Developments and Expected Results of Operations
Further information on the likely developments in the operations of the company and the expected results of
operations have been included in the review of operations.
Corporate Governance Statement
The Board is responsible for the overall corporate governance of the company, and it recognises the need for the
highest standards of ethical behaviour and accountability. It is committed to administering its corporate
governance structures to promote integrity and responsible decision making.
The company’s corporate governance structures, policies and procedures are described in its Corporate
Governance
at
available
http://www.greatboulder.com.au/corporate-governance/
company’s
Statement
website
which
the
on
is
Security Holding Interests of directors
Directors
Gregory C Hall
Andrew G Paterson
Murray E Black
Melanie Leighton
Shares under Option
Ordinary
Shares
1,400,000
-
3,000,000
1,450,000
Options Over
Ordinary
Shares
2,000,000
-
3,500,000
2,000,000
There were 34,879,893 ordinary shares under option at 30 June 2019 (2018: 35,879,893).
Shares Issued on the Exercise of Options
There were 250,000 ordinary shares of Great Boulder Resources Limited issued during the year ended 30 June
2019 from the exercise of options (2018: 2,206,857).
Options Lapsed/ Forfeited During the Year
1,000,000 options were forfeited during the year (2018: nil).
Great Boulder Resources Limited – Annual Report 2019
23
Directors’ Benefits
Since 30 June 2019, no director of the company has received or become entitled to receive a benefit (other than
a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in
the financial statements) by reason of a contract made by the company with the director or with a firm of which
he is a member, or with a company in which he has a substantial financial interest.
Company Secretary – Melanie Ross
Ms Ross was appointed on 28 March 2018 and is an accounting and corporate governance professional with over
19 years’ experience in financial accounting and analysis, audit, business and corporate advisory services in public
practice, commerce and state government. She has a Bachelor of Commerce and is a member of the Institute of
Chartered Accountants in Australia and New Zealand and an associate member of the Governance Institute of
Australia.
Ms Ross is currently a director of a corporate advisory company based in Perth that provides corporate and other
advisory services to public listed companies.
Indemnification and Insurance of Directors and Officers
During the financial year, the company maintained an insurance policy which indemnifies the Directors and
Officers of Great Boulder Resources Limited in respect of any liability incurred in connection with the
performance of their duties as Directors or Officers of the company. The company's insurers have prohibited
disclosure of the amount of the premium payable and the level of indemnification under the insurance contract.
Indemnification and Insurance of Auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of
the company or related entity.
Directors’ Meetings
The number of directors’ meetings attended by each of the directors of the company during the year were:
Director
Gregory C Hall
Andrew G Paterson
Melanie J Leighton
Murray E Black
Stefan K Murphy
Environmental Issues
Eligible Meetings while in
office
4
nil
4
4
4
Eligible Meetings attended
4
nil
4
4
4
The directors advise that during the year ended 30 June 2019 no claim has been made by any competent
authority that any environmental issues, condition of license or notice of intent has been breached.
Great Boulder Resources Limited – Annual Report 2019
24
The directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. For the measurement period, 1 July
2018 to 30 June 2019, the directors have assessed that there are no current reporting requirements but may be
required to do so in the future.
Occupational Health and Safety
Health and Safety actions are framed within the “Quality, Environment, Safety and Occupational Health
Integrated Policy” that states people´s health and safety is safeguarded within the different fields of our activity.
Great Boulder Resources Limited strictly follows. The plan covers specific areas such as the Compliance of Legal
and Other Standards, Risk Assessment and Control, Occupational Health, Emergency Response, Training,
Incidents - Corrective and Preventive Action, Management of Contractors and Suppliers, Audit and Management
Review.
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
The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied
that the services disclosed below did not compromise the external auditor’s independence for the following
reasons:
all non-audit services are reviewed and approved by the directors prior to commencement to ensure
they do not adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
Non-audit services that have been provided by the entity’s auditor, RSM Australia Partners, have been disclosed
in Note 15.
Auditors Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2019 has been received and is included
within this annual report.
Great Boulder Resources Limited – Annual Report 2019
25
REMUNERATION REPORT (AUDITED)
The information provided in this remuneration report has been audited.
Principles used to determine amount and nature of remuneration
The objective of the company’s executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The Board ensures that executive reward satisfies the following key
criteria for good reward governance practises:
competitiveness and reasonableness
acceptability to shareholders
transparency
The current base remuneration pool of $300,000 for non-executive directors was set and reported in the
Prospectus dated 12 September 2016. All director fees are will be periodically recommended for approval by
shareholders.
The company’s policy regarding executive’s remuneration is that the executives are paid a commercial salary and
benefits based on the market rate and experience.
Details of Remuneration of the Key Management Personnel of the Company
Details of the nature and amount of each element of remuneration of the Key Management Personnel of the
company for the financial year are as follows:
2019
Name
Gregory C Hall (Non-
Executive Chairman)
Melanie J Leighton (Non-
Executive Director)
Stefan K Murphy *
(Managing Director)
Andrew G Paterson **
(Managing Director)
Murray E Black (Non-
Executive Director)
Short Term
Salary
$
-
Fees
$
54,750
Post-
Employment
Superannuation
$
-
Share based
Payments
Performance
Rights
$
-
Other
Benefits
$
-
Performance
Linked
Total
$
54,750
%
-
40,000
-
3,800
-
43,800
178,037
4,615
-
-
-
40,000
15,091
17,843
(18,348)***
192,623
-
-
438
3,800
-
-
5,054
43,800
182,652
134,750
15,091
25,882
(18,348)
340,027
-
-
-
-
-
-
* Resigned 3 May 2019
** Appointed 24 June 2019
*** In accordance with the requirement of AASB2 Share based payments, the value disclosed is the portion of
the fair value of the performance rights recognised as an expense in the reporting period discounted for the
probabilities of not meeting the specific performance conditions. The amount included as remuneration is not
related to nor indicative of the benefit (if any) that may ultimately be realised should the performance rights
vest.
Great Boulder Resources Limited – Annual Report 2019
26
2018
Name
Gregory C Hall (Non-
Executive Chairman)
Melanie J Leighton (Non-
Executive Director)
Stefan K Murphy
(Managing Director)
Murray E Black (Non-
Executive Director)
John Sendziuk ****
(Company Secretary)
Melanie Ross *****
(Company Secretary)
Short Term
Salary
$
-
Fees
$
54,750
-
40,000
225,000
-
-
40,000
45,000
-
-
19,500
270,000
154,250
**** Resigned 28 March 2018
***** Appointed 28 March 2018
Post-
Employment
Superannuation
$
-
Share based
Payments
Performance
Rights
$
-
Other
Benefits
$
-
Performance
Linked
Total
$
54,750
%
-
-
3,800
-
43,800
21,375
47,948***
294,323
16.3%
3,800
4,275
-
-
-
-
43,800
49,275
19,500
-
-
-
33,250
47,948
505,448
9.4%
-
-
-
-
-
-
Key Management Personnel Interests in the Shares and Options of the Company
The number of shares and options in the company held during the financial year, and up 30 June 2019, by each
Key Management Personnel of Great Boulder Resources Limited, including their personally related parties, is set
out below. There were no shares granted as compensation during the year.
Shares
2019
Gregory C Hall
Andrew G Paterson *
Murray E Black
Melanie Leighton
Stefan K Murphy **
Balance at the
start of the year
1,400,000
-
3,000,000
1,450,000
314,286
6,164,286
Granted as
compensation
-
-
-
-
-
-
Other changes
during the year
Balance at the
end of the year
1,400,000
-
3,000,000
1,450,000
314,286
6,164,286
-
-
-
-
-
-
* Opening balance is as at appointment on 24 June 2019
** Closing balance is as at resignation on 3 May 2019
2018
Gregory C Hall
Stefan K Murphy
Murray E Black
Melanie Leighton
John Sendziuk ***
Balance at the
start of the year
1,400,000
314,286
3,500,000
1,450,000
1,150,000
7,814,286
Granted as
compensation
-
-
-
-
-
-
Other changes
during the year
Balance at the
end of the year
1,400,000
314,286
3,500,000
1,450,000
1,150,000
7,814,286
-
-
-
-
-
-
*** Closing balance as at resignation on 28 March 2018
Great Boulder Resources Limited – Annual Report 2019
27
Options
2019
Gregory C Hall
Andrew G Paterson *
Murray E Black
Melanie Leighton
Stefan K Murphy **
Balance at the
start of the year
2,000,000
-
3,500,000
2,000,000
1,057,143
8,557,143
Granted as
compensation
-
-
-
-
-
-
Other changes
during the year
-
-
-
-
(1,000,000)
(1,000,000)
Balance at the
end of the year
2,000,000
-
3,500,000
2,000,000
57,143
7,557,143
* Opening balance is as at appointment on 24 June 2019
** Closing balance is as at resignation on 3 May 2019
2018
Gregory C Hall
Stefan K Murphy
Murray E Black
Melanie Leighton
John Sendziuk***
Balance at the
start of the year
2,000,000
1,057,143
3,500,000
2,000,000
1,000,000
9,557,143
Granted as
compensation
-
-
-
-
-
-
Other changes
during the year
Balance at the
end of the year
2,000,000
1,057,143
3,500,000
2,000,000
1,000,000
9,557,143
-
-
-
-
-
-
*** Closing balance is as at resignation on 28 March 2018
Share based compensation
Shares
No shares were issued to key management personnel as compensation during the year ended 30 June 2019.
Options
No options were issued to key management personnel as compensation during the year ended 30 June 2019.
Performance Rights
During the year ended 30 June 2019 500,000 performance rights were granted (2018: 2,000,000). During the
year ended 30 June 2019, no performance rights were vested (2018: nil). 1,250,000 performance rights expired
on 15 November 2018. Due to the resignation of Stefan Murphy on 3 May 2019 the remaining 1,250,000 were
forfeited.
The fair value of the performance rights granted during the financial year was $62,710 (2018: $209,600). Expense
is recognised on a straight-line basis over the vesting period.
The value disclosed in the remuneration of key management personnel is the portion of the fair value of the
performance rights recognised as expense in each reporting period in accordance with the requirement of
AASB 2.
The terms and conditions of performance rights affecting remuneration granted to key management personnel
in this and future reporting years are as follows:
Great Boulder Resources Limited – Annual Report 2019
28
Employee
Stefan Murphy – Class A
Stefan Murphy – Class B
Stefan Murphy – Class C
No. of
Performance
Rights
granted
1,250,000
750,000
500,000
Grant date
24/10/2017
24/10/2017
5/11/2018
Vesting
conditions
Note 1
Note 2
Note 3
Expiry date
15/11/2018
23/10/2019
10/1/2020
Exercis
e price
Nil
Nil
Nil
Fair value
per option
at grant
date
$0.02368
$0.24
$0.1254
Value
$
29,600
180,000
62,710
Note 1. Within the first 24 months of the company’s admission to the official list of ASX (being from 16 November
2016) the volume weighted average price (VWAP) of Shares traded on ASX over any consecutive 3 month period
is $0.50 or more.
Note 2. Within the first 36 months of the company’s admission to the official list of ASX (being from 16 November
2016), the company delineates and announces to ASX a ‘mineral resource’ (compliant with JORC Code 2012 of
greater than 500,000 ounces of contained gold equivalent, reported at or above 0.5g/t gold equivalent.
Gold equivalent will be calculated based on the following formula:
Aueq_oz = Gm + ((Cm x Cp)/Gp)) + ((Nm x Np)/Gp)
Where:
Aueq_oz = Gold equivalent ounces
Gm = Contained gold (ounces)
Cm = Contained copper (tonnes)
Nm = Contained nickel (tonnes)
Gp = US$1,250 per ounce of gold
Cp = US$6,000 per tonne of copper
Np = US$10,000 per tonne of nickel
Any mineral resource reported to ASX by the company may either be defined from within the company’s
mineral exploration projects or acquired.
Note 3. Within 12 months from issue date, when the volume weighted average price (“VWAP”) of Shares traded
on the ASX over any consecutive 1 month period is $0.30 or more.
Service Contracts
Andrew Paterson - Managing Director
The company has entered into an Executive Services Agreement with its Managing Director, Mr Andrew
Paterson, in relation to his employment by the company.
The material terms of this agreement are as follows:
(a)
Mr Paterson is employed as the Managing Director.
(b) Mr Paterson will be paid an annual salary of $240,000 plus statutory superannuation.
(c) Mr Paterson’s employment may be terminated by the company giving 6 months’ notice. The company
may otherwise terminate his employment immediately for cause (e.g. serious misconduct).
Great Boulder Resources Limited – Annual Report 2019
29
Non-Executive Directors
The company has entered into a letter of engagement with each Non-Executive Director confirming their
appointment and terms of the engagement.
Each Non-Executive Director is entitled to be paid an annual director's fee as follows:
Mr Hall
Mr Black
Ms Leighton
$50,000
$40,000
$40,000
The director’s fees are exclusive of statutory superannuation.
Related Party Transactions
A company associated with Mr Hall, a director, Golden Phoenix International Limited was paid $54,750 (2018:
$54,750) in directors and consulting fees. No amounts were owing as at 30 June 2019 (2018: nil).
A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, was paid $1,990,929 (2018: $1,105,629) for
drilling services. No amounts were owing as at 30 June 2019 (2018: nil)
A company in which Mr Black is a director, Eastern Goldfields Mining Company Pty Ltd (EGMC), became a Joint
Venture partner in the Yamarna project from 1 July 2018. During the year Great Boulder received $727,081 from
EGMC (2018: nil). Great Boulder owed EGMC $4,960 at 30 June 2019 (2018: nil).
All payments were made at recognised commercial rates.
Additional information
The earnings of the company for the three years since incorporation to 30 June 2019 are summarised below:
Revenue
EBITDA
EBIT
Loss after income tax
2019
2018
2017
18,540
(1,353,836)
(1,353,836)
(1,353,836)
70,676
(1,354,619)
(1,372,170)
(1,372,170)
56,871
(694,015)
(697,578)
(697,578)
The factors that are considered to affect total shareholders return ('TSR') are summarised below.
Share price at financial year end ($)
Basic earnings per share (cents per share)
0.0525
(1.68)
0.45
(1.94)
0.15
(1.24)
2019
2018
2017
[End of Remuneration Report]
Great Boulder Resources Limited – Annual Report 2019
30
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations
Act 2001.
On behalf of the directors
Andrew Paterson
Managing Director
Perth
28th September 2019
Great Boulder Resources Limited – Annual Report 2019
31
Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
RSM Australia Partners
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Great Boulder Resources Limited for the year ended 30
June 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 September 2019
ALASDAIR WHYTE
Partner
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RSM Australia Partners
Level 32 Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
GREAT BOULDER RESOURCES LIMITED
Opinion
We have audited the financial report of Great Boulder Resources Limited (the Company), which comprises the
statement of financial position as at 30 June 2019, the statement of profit or loss and other comprehensive income,
the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
(i) giving a true and fair view of the Company's financial position as at 30 June 2019 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial statements, which indicates that the Company incurred a net loss of
$1,353,836 and had total net cash outflows from operating activities and investing activities of $565,598 and
$2,521,384 respectively for the year ended 30 June 2019. These conditions, along with other matters as set forth
in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Carrying value of exploration and evaluation expenditure
Refer to Note 9 in the financial statements
The Company has capitalised a significant amount
of exploration and evaluation expenditure, with a
carrying value of $5,588,496 as at 30 June 2019.
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the assets including:
Determination of whether the exploration and
evaluation expenditure can be associated with
finding specific mineral resources, and the
basis on which that expenditure is allocated to
an area of interest;
Assessing whether
any
impairment are present; and
indicators
of
Assessing whether exploration activities have
reached a stage at which the existence of an
economically recoverable reserves may be
concluded.
Our audit procedures in relation to the carrying value
of the exploration and evaluation asset included:
Obtaining evidence that the Company has valid
rights to explore in the specific area;
Enquiring with and assessing management’s
basis on which they have determined that the
exploration and evaluation of mineral resources
has not yet reached the stage where it can be
concluded that no commercially viable quantities
of mineral resources exists;
Enquiring with and assessing management’s
basis on which they have determined that the
exploration and evaluation of mineral resources
at Jundee South are impaired;
Enquiring with management and reviewing
budgets and plans to test that the Company will
incur substantive expenditure on
further
exploration
for and evaluation of mineral
resources in the specific area; and
Reviewing minutes of director meetings and ASX
announcements to ensure that the Company had
not resolved to discontinue activities in the
specific area.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company's annual report for the year ended 30 June 2019, but does not include the financial report and
the 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 preparing the financial report, the directors are responsible for assessing the ability of the Company to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with 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.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description
forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Great Boulder Resources Limited, for the year ended 30 June 2019,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 28 September 2019
ALASDAIR WHYTE
Partner
8 Directors’ Declaration
In the directors' opinion:
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in note 1 to the financial
statements;
the attached financial statements and notes give a true and fair view of the company's financial position
as at 30 June 2019 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act
2001.
On behalf of the directors
Andrew Paterson
Managing Director
Dated this 28th September 2019
Perth
Great Boulder Resources Limited – Annual Report 2019
36
9 Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2019
Interest income
Depreciation
Corporate fees
Legal and professional fees
Employee benefits expense
Administration expenses and rent
Project evaluation costs
Travel costs
Impairment and write-off of exploration and evaluation
expenditure
Share based payments
Loss before income tax
Income tax expense
Loss after income tax
Other comprehensive income
Total comprehensive income attributable to
members of Great Boulder Resources Limited
Note
4
9
23
5
2019
$
2018
$
18,540
18,540
(39,345)
(56,079)
(121,963)
(242,364)
(238,114)
(13,333)
(27,170)
(647,402)
13,394
70,676
70,676
(17,551)
(43,538)
(63,359)
(285,260)
(279,153)
(6,148)
(20,620)
(679,269)
(47,948)
(1,353,836)
(1,372,170)
-
-
(1,353,836)
(1,372,170)
-
-
(1,353,836)
(1,372,170)
Basic and diluted loss per share (cents)
14
(1.68)
(1.94)
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes
Great Boulder Resources Limited – Annual Report 2019
37
10 Statement of Financial Position
As at 30 June 2019
Current Assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-Current Assets
Plant and equipment
Exploration and evaluation expenditure
Total non-current assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total current liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
2019
$
2018
$
6
7
8
9
10
11
655,012
16,321
671,333
3,693,878
132,714
3,826,592
179,429
5,588,496
5,767,925
89,213
3,876,500
3,965,713
6,439,258
7,792,305
72,595
7,497
80,092
313,833
10,192
324,025
80,092
324,025
6,359,166
7,468,280
12
13
13
9,526,164
211,954
(3,378,952)
9,268,048
290,768
(2,090,536)
6,359,166
7,468,280
The above Statement of Financial Position should be read in conjunction with the accompanying notes
Great Boulder Resources Limited – Annual Report 2019
38
11 Statement of Changes in Equity
For the year ended 30 June 2019
Contributed
Equity
Option
Reserve
$
9,268,048
-
$
242,820
-
Share
Based
Payments
Reserve
$
Accumulated
Losses
Total Equity
$
$
47,948
-
(2,090,536)
(1,353,836)
7,468,280
(1,353,836)
-
-
-
(1,353,836)
(1,353,836)
Balance at 1 July 2018
Loss for the year
Total Comprehensive Income for
the Year
Shares issued (net of costs)
Share based payments
Expiry of performance rights
Balance at 30 June 2019
258,116
-
-
9,526,164
-
4,954
(35,820)
211,954
Balance at 1 July 2017
6,473,451
242,820
Loss for the year
Total Comprehensive Income for
the Year
-
-
Shares issued (net of costs)
Share based payments
2,794,597
-
-
-
-
-
-
(18,348)
(29,600)
-
-
-
-
-
-
65,420
258,116
(13,394)
-
(3,378,952)
6,359,166
(718,366)
5,997,905
(1,372,170)
(1,372,170)
(1,372,170)
(1,372,170)
-
47,948
-
-
2,794,597
47,948
Balance at 30 June 2018
9,268,048
242,820
47,948
(2,090,536)
7,468,280
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes
Great Boulder Resources Limited – Annual Report 2019
39
12 Statement of Cash Flows
For the Year Ended 30 June 2019
Note
2019
$
2018
$
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
(596,277)
30,679
(684,023)
98,361
Net cash used in operating activities
17(b)
(565,598)
(585,662)
Cash Flows from Investing Activities
Payments for exploration and evaluation
Payments for plant and equipment
Proceeds from grants received for exploration and
evaluation expenditure
Receipts from Joint Venture partners
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from issue of shares (net of costs)
Net cash provided by financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial year
(4,048,796) (3,006,677)
(70,034)
305,387
(132,056)
956,157
703,311
-
(2,521,384) (2,771,324)
48,116
2,794,597
48,116
(3,038,866)
2,794,597
(562,389)
3,693,878
4,256,267
Cash and cash equivalents at the end of the financial
year
17(a)
655,012
3,693,878
The above Statement of Cash Flows should be read on conjunction with the accompanying notes
Great Boulder Resources Limited – Annual Report 2019
40
13 Notes to the Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
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.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted.
The adoption of these Accounting Standards and Interpretations did not have a significant impact on the financial
performance or position of the company.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory have not been early adopted by the company for the year ended 30 June 2019. The company’s
assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to
the company, are set out below.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard
replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases.
Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured as
the present value of the unavoidable future lease payments to be made over the lease term. The exceptions
relate to short -term leases of 12 months or less and leases of low-value assets (such as personal computers and
small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised
or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease
will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred
and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense
recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an
interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease,
the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) results will be
improved as the operating expense is replaced by interest expense and depreciation in profit or loss under AASB
16. For classification within the statement of cash flows, the lease payments will be separated into both a
principal (financing activities) and interest (either operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor accounts for leases. The company will adopt
this standard from 1 July 2019. The impact of the new leases standard is that leased asset will be capitalised in
the statement of financial position, measured as the present value of the unavoidable future lease payments to
be made over the lease term and a liability corresponding to the capitalised lease will also be recognised,
adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any
future restoration, removal or dismantling costs. The company will adopt this standard from 1 July 2019 but the
impact of its adoption is expected to be minimal.
Great Boulder Resources Limited – Annual Report 2019
41
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and discharge of liabilities in the normal course of
business.
As disclosed in the financial statements, the Company incurred a loss of $1,353,836 and had net cash outflows
from operating and investing activities of $565,598 and $2,521,384 respectively for the year ended 30 June
2019. The ability of the Company to continue as a going concern is principally dependent upon the ability of the
Company to secure funds by raising additional capital from equity markets and managing cash flows in line with
available funds.
These factors indicate a material uncertainty which may cast significant doubt as to whether the Company will
continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the
normal course of business and at the amounts stated in the financial report.
The Directors believe that there are reasonable grounds to believe that the Company will be able to continue as
a going concern, it plans to issue additional equity securities, to raise further working capital. The Directors are
confident the Company will be successful in sourcing further capital to fund the ongoing operations of the
Company.
Accordingly, the Directors believe that the Company will be able to continue as a going concern and that it is
appropriate to adopt the going concern basis in the preparation of the financial report.
The financial report does not include any adjustments relating to the amounts or classification of recorded assets
or liabilities that might be necessary if the Company does not continue as a going concern.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian equivalents to
International Financial Reporting Standards (AIFRS), other authoritative pronouncements of the Australian
Accounting Standards Board, Australian Accounting Interpretations and the Corporations Act 2001.
These financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The financial report was authorised for issue on 28th September 2019 by the Board of Directors.
The functional and presentation currency of Great Boulder Resources Limited is Australian Dollars.
The directors have prepared the financial statements on a going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and extinguishment of liabilities in the normal course
of business.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets.
(b)
Income tax
The company adopts the liability method of tax-effect accounting whereby the income tax expense is based on
the profit adjusted for any non-assessable or disallowed items.
Great Boulder Resources Limited – Annual Report 2019
42
Deferred tax is accounted for using the statement of balance sheet liability method in respect of temporary
differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. No deferred income tax will be recognised from the initial recognition of an asset or liability,
excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the company will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
(c)
Revenue recognition
Interest revenue
Interest 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 period
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.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
(d)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating
cycle; it is held primarily for the purpose of trading; it is expected to be realised within twelve months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose
of trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional
right to defer the settlement of the liability for at least twelve months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(e)
Exploration and evaluation expenditure
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are
current is carried forward as an asset in the statement of financial position where it is expected that the
expenditure will be recovered through the successful development and exploitation of an area of interest, or by
its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits
a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or
an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the
Great Boulder Resources Limited – Annual Report 2019
43
decision is made.
(f)
Plant and equipment
Plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the company and
the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement
of comprehensive income during the financial period in which they are incurred.
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Depreciation
The depreciable amount of all plant and equipment is depreciated on a diminishing value over their useful lives
to the company commencing from the time the asset is held ready for use.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and Equipment
Depreciation Rate
10-33%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the statement of comprehensive income.
(g)
Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and
are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
(h)
Equity-based payments
Equity-based compensation benefits can be provided to suppliers and employees.
The fair value of options granted is recognised as an employee benefit expense with a corresponding increase in
contributed equity. The fair value is measured at grant date and recognised over the period during which the
recipient becomes unconditionally entitled to the options.
Great Boulder Resources Limited – Annual Report 2019
44
The fair value at grant date is independently determined using an option pricing model that takes into account
the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-
tradeable nature of the option, the share price at grant date and expected price volatility of the underlying share,
the expected divided yield and the risk-free interest rate for the term of the option.
(i)
Earnings per share
i.
Basic earnings per share
Basic earnings per share is determined by dividing the profit attributable to equity holders of the company,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
year.
ii.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
(j)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the board of directors.
(k)
Impairment of assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment.
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset’s carrying amount exceeds its recoverable amount. The 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 grouped at the lowest levels for which there are separately identifiable cash flows (cash generating
units).
(l)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
(m)
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past
events, it is more likely than not that an outflow of resources will be required to settle the obligation and the
amount has been reliably estimated.
(n)
GST
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxation. In this case it is recognised as part of the cost of acquisition of the asset or as
Great Boulder Resources Limited – Annual Report 2019
45
part of the expense.
Receivables and payables are stated as inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
(o)
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting
date, the loans or borrowings are classified as non-current.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the
statement of financial position, net of transaction costs.
(p)
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred, including interest on short-term and long-term borrowings.
(q)
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.
(r)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 days.
The company has applied the simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on
days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(s)
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid
when the liabilities are settled.
Other long-term employee benefits
Great Boulder Resources Limited – Annual Report 2019
46
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value 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 corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
Share based payments
Equity-settled compensation benefits are provided to employees. Equity-settled transactions are awards of
shares, or options over shares, that are provided to employees in exchange for the rendering of services.
2. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates
its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events; management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the company will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the
mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are expensed and
capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial production
at the mine include the level of reserves and resources, future technology changes, which could impact the cost
of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are
determined not to be recoverable in the future, they will be written off in the period in which this determination
is made.
Share based payment transactions
The company measures the cost of equity-settled transactions with suppliers and employees by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is determined by using
either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the
instruments were granted. 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
period but may impact profit or loss and equity.
Great Boulder Resources Limited – Annual Report 2019
47
3. SEGMENT INFORMATION
The company 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 company operates as a single segment which is mineral exploration and in a single geographical location
which is Australia.
4.
INTEREST INCOME
Interest income
5.
INCOME TAX EXPENSE
(a) Reconciliation of income tax expense to prima
facie tax payable
Loss before income tax
Prima facie income tax at 30% (2018: 30%)
Tax loss not recognised
Income tax expense
(b) Tax losses:
2019
$
18,540
18,540
2018
$
70,676
70,676
2019
$
2018
$
(1,353,836)
(406,151)
406,151
-
(1,372,170)
(411,651)
411,651
-
Unused tax losses for which no deferred tax asset has been
recognised
5,191,388
3,498,347
Potential tax benefit @ 30% (2018: 30%)
1,557,416
1,049,504
(c) The directors estimate that the potential deferred tax asset at 30 June 2019 in respect of tax losses not
brought to account is $1,557,416 (2018: $1,049,504).
The benefit for tax losses will only be obtained if:
i.
ii.
The company derives income, sufficient to absorb tax losses.
There is no change to legislation to adversely affect the company and its subsidiaries in realising
the benefit from the deduction of the losses.
6. CASH AND CASH EQUIVALENTS
Cash at Bank
2019
$
655,012
655,012
2018
$
3,693,878
3,693,878
Great Boulder Resources Limited – Annual Report 2019
48
7. TRADE AND OTHER RECEIVABLES
GST refund
Other receivables
8. PLANT AND EQUIPMENT
Plant and equipment at cost
Less provision for depreciation
Reconciliations:
Plant and equipment
Carrying amount at the beginning of the year
Additions
Plant and equipment written off
Depreciation
Carrying amount at the end of the year
2019
$
16,321
-
16,321
2019
$
244,970
(65,541)
179,429
89,213
129,561
-
(39,345)
179,429
2018
$
120,575
12,139
132,714
2018
$
115,409
(26,196)
89,213
39,317
67,447
-
(17,551)
89,213
9. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation – at cost
Carrying amount at the beginning of the year
Mining tenements purchased at cost
Capitalised mineral exploration and evaluation expenditure
Impairment and write-off of exploration and evaluation
costs (i)
2019
$
5,588,496
3,876,500
210,000
2,149,398
2018
$
3,876,500
1,719,701
-
2,836,068
(647,402)
(679,269)
Carrying amount at the end of the year
5,588,496
3,876,500
(i)
As the company has relinquished the Jundee South project (2018: Balagundi and
Broadwood Joint Ventures), the capitalised mineral exploration and evaluation
expenditure in relation to these areas of interest has been impaired.
The future realisation of these non-current assets is dependent on further exploration and funding
necessary to the resources or realisation through sale.
Great Boulder Resources Limited – Annual Report 2019
49
10. TRADE AND OTHER PAYABLES
Trade payables and accruals
11. PROVISIONS
Employee entitlements
2019
$
72,595
72,595
2018
$
313,833
313,833
2019
$
7,497
7,497
2018
$
10,192
10,192
12. CONTRIBUTED EQUITY
(a) Ordinary Shares -fully paid
No. Shares
2019
2018
2019
$
2018
$
At the beginning of the financial year
Shares issued on 28 May 2018 under
placement
Shares issued on 12 March 2019 under Joint
Venture agreement
Shares issued on exercise of options
Less cost of issue
At the end of the financial year
79,860,117
68,394,000
9,268,048
6,473,451
-
9,259,260
-
2,500,000
1,500,000
-
210,000
-
250,000
-
81,610,117
2,206,857
-
79,860,117
50,000
(1,884)
9,526,164
441,372
(146,775)
9,268,048
(b) Terms and Conditions of Contributed Equity
Ordinary Shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the
company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of
and amounts paid up on shares held.
Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.
Restricted Shares
As at 30 June 2019 1,000,000 ordinary shares were in escrow.
(c) Capital Risk Management
The company’s objectives when managing capital are to safeguard their ability to continue as a going concern,
so that they can continue to provide returns to shareholders and benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the company may issue new shares, pay dividends or return
capital to shareholders.
Great Boulder Resources Limited – Annual Report 2019
50
Capital is calculated as ‘equity’ as shown in the statement of financial position, and is monitored on the basis of
funding exploration activities.
13. RESERVES AND ACCUMULATED LOSSES
(a) Accumulated losses
Accumulated losses at the beginning of the year
Net loss for the year
Expiry of performance rights and forfeiture of options
Accumulated losses at the end of the year
(b) Reserves
Options reserve
The options reserve is used to recognise the fair value of options
issued.
As at 30 June 2019, no options to which the reserve relates have
been exercised.
2019
$
2018
$
(2,090,536)
(1,353,836)
65,420
(3,378,952)
(718,366)
(1,372,170)
-
(2,090,536)
Balance at the beginning of the year
Share based payment expense
Share based payment - capital raising costs
Transfer to accumulated loss upon forfeiture of options
Balance at the end of the year
242,820
4,954
-
(35,820)
211,954
242,820
-
-
-
242,820
Share based payments reserve
The share based payments reserve is used to recognise the fair value of performance rights issued.
As at 30 June 2019, no performance rights to which the reserve relates have been exercised.
Balance at the beginning of the year
Share based payment expense
Transfer to accumulated loss upon expiry of performance rights
Balance at the end of the year
47,948
(18,348)
(29,600)
-
-
47,948
-
47,948
Movement in Unlisted Options
Balance at beginning of financial year
Options issued during the year
Options exercised during the year
Options forfeited due to resignation
Balance at end of financial year
Listed Options
2019
Options
2018
Options
35,879,893
38,086,750
250,000
(250,000)
(1,000,000)
34,879,893
-
(2,206,857)
-
35,879,893
There were no listed options over ordinary shares in the company at 30 June 2019 (2018: Nil).
Great Boulder Resources Limited – Annual Report 2019
51
14. LOSS PER SHARE
Loss after tax attributable to the owners of Great Boulder
Resources Limited
Basic and diluted loss per share (cents)
Unexercised options are not dilutive.
The weighted average number of ordinary shares on issue used in
the calculation of basic loss per share
The weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted loss
per share
15. REMUNERATION OF AUDITORS
Remuneration of the auditor for:
- Auditing and reviewing of financial reports
- Tax services
- Other
16. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Directors
2019
$
2018
$
(1,353,836)
(1.68)
(1,372,170)
(1.94)
80,551,213
70,581,915
80,551,213
70,581,915
2019
$
24,000
29,594
-
53,594
2018
$
22,000
22,605
2,650
47,255
The following persons were directors of Great Boulder Resources Limited during the financial
year and up to the date of this report unless otherwise stated:
Gregory C Hall
Andrew G Paterson
Melanie J Leighton
Murray E Black
Stefan K Murphy
(Chairman)
(Managing Director) (appointed 24 June 2019)
(Non-Executive Director)
(Non-Executive Director)
(Managing Director) (resigned 3 May 2019)
(b) Company Secretary
Melanie Ross
(c) Details of Remuneration of Key Management Personnel for the year ended 30 June 2019:
Short-term benefits
Post-employment benefits
Share based payments
2019
$
332,493
25,882
(18,348)
340,027
2018
$
424,250
33,250
47,948
505,448
Great Boulder Resources Limited – Annual Report 2019
52
17. NOTES TO STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and
investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of
the financial year as shown in the statement of cash flows is reconciled to the related items in the
statement of financial position as follows:
Cash and cash equivalents
(b) Reconciliation of Net Cash used in Operating Activities to Operating
2019
$
2018
$
655,012 3,693,878
655,012 3,693,878
Loss for the year
Depreciation
Share based payments
Impairment of exploration and evaluation costs
Net cash flows from operating activities before change
in assets and liabilities
(1,353,836)
39,345
(13,394)
647,402
(1,372,170)
17,551
47,948
679,269
(680,483)
(627,402)
Change in assets and liabilities during the financial year:
Trade and other receivables
Trade and other payables
Provisions
Net cash outflow from operating activities
116,393
1,187
(2,695)
(565,598)
27,685
19,403
(5,348)
(585,662)
(c) Non cash investing and financing activities
On 12 March 2019, 1,500,000 shares were issued under a Joint Venture agreement. This has been
recognised as exploration and evaluation with a value of $210,000 as disclosed in Note 9.
There were no non cash investing and financing activities during the year.
Great Boulder Resources Limited – Annual Report 2019
53
18. COMMITMENTS FOR EXPENDITURE
Exploration Commitments
On 13 June 2016, the company signed the Tarmoola Joint Venture Agreement with Eastern Goldfields
Mining Company Pty Ltd, which grants the company the rights to earn a 75% interest in the tenements
by sole funding certain Joint Venture expenditure upon the terms and conditions set out in the
agreement.
Over a five year period from the commencement date, the company must fund all outgoings payments
required to keep the tenements in good standing and all other Joint Venture expenditure, or pay amount
to Eastern Goldfields Mining Company Pty Ltd, or a combination of the two to the amounts disclosed
below. These obligations are not provided for in the financial statements.
Within one year
Later than one year but not later than five years
Operating Leases
2019
$
916,080
368,810
1,284,890
2018
$
450,840
718,306
1,169,146
The company previously entered into a Licence Deed with Hot Chili Limited whereby the company is
granted a licence to co-occupy the office located at 768 Canning Highway Applecross. The material terms
of the Deed are:
The company will pay 50% of the rent and variable outgoings otherwise payable by Hot Chili under
the Head Lease;
The Deed will operate until terminated by either party giving three months' notice of termination of
the Head Lease;
The Head Lease is currently due to expire on 29 February 2020.
The minimum lease obligations are not provided for in the financial statements:
Within one year
Later than one year but not later than five years
2019
$
37,167
-
37,167
2018
$
55,750
37,167
92,917
19. EVENTS OCCURRING AFTER REPORTING DATE
On 30 August 2019 the Company announced a capital raising, comprising of a placement of this issue of
17,500,000 fully paid ordinary shares at an issue price of $0.04 per share to raise $700,000 and a non-
renounceable entitlement offer of 1 share for every 3 shares held at an issue price of $0.04 per share to raise
$1,334,540. The placement was completed with funds received and shares issued by 9 September 2019. The
rights issue prospectus was lodged on the ASX on 9 September 2019, opened on 18 September 2019 and is
expected to close on 27 September 2019. Shares are expected to be quoted on a deferred settlement basis on
30 September 2019.
Great Boulder Resources Limited – Annual Report 2019
54
On 30 August 2019, the Company announced it had an option to acquire a 75% interest in an advanced gold
project from Zebina Minerals Pty Ltd (Zebina). To acquire a 12-month option to explore the project, the Company
paid $50,000 and issued 980,392 fully paid ordinary shares at an issue price of $0.51 per share on 9 September
2019. During the option period the Company has committed to a minimum on-ground expenditure of $200,000.
To exercise the option, the Company must pay Zebina $200,000 cash and $200,000 in fully paid ordinary shares
(based on a 10% discount to the 20-day vwap at the date of exercise of the option) plus a non-for-one free
attaching 3 year option valued at 125% of the 20-day vwap at the date of exercise.
On 9 September 2019 the Company announced it had signed an earn-in agreement with Mithril Resources Ltd
(ASX: MTH) (Mithril) under which the Company can earn up to 80% of the Lignum Dam Project in WA. Stage 1 of
the earn-in agreement takes the Company to 51% ownership by spending a minimum of $400,000 on exploration
over two years. Stage 2 takes the Company to 80% by spending an additional $600,000 over the next two years.
Mithril’s 20% interest is free-carried to a decision to mine. The Company has a minimum exploration
commitment of $120,000 if it decides not to proceed with the farm-in.
There were no other significant changes to the state of affairs, during or subsequent to the end of the reporting
period, other than what has been reported in other parts of this report.
20. RELATED PARTIES
A company associated with Mr Hall, a director, Golden Phoenix International Limited was paid $54,750 (2018:
$54,750) in directors and consulting fees. No amounts were owing as at 30 June 2019 (2018: nil).
A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, was paid $1,105,629 (2018: $1,105,629) for
drilling services. No amounts were owing as at 30 June 2019 (2018: nil).
A company in which Mr Black is a director, Eastern Goldfields Mining Company Pty Ltd (EGMC), became a Joint
Venture partner in the Yamarna project from 1 July 2018. During the year Great Boulder received $727,081 from
EGMC (2018: nil). Great Boulder owed EGMC $4,960 at 30 June 2019 (2018: nil).
All payments were made at recognised commercial rates.
21. CONTINGENT LIABILITIES
The company has no contingent liabilities.
22. FINANCIAL RISK MANAGEMENT
The company’s principal financial instruments comprise receivables, payables, cash and short-term deposits. The
company manages its exposure to key financial risks in accordance with the company’s financial risk management
policy. The objective of the policy is to support the delivery of the company’s financial targets while protecting
future financial security.
The main risks arising from the company’s financial instruments are interest rate risk, credit risk and liquidity risk.
The company uses different methods to measure and manage different types of risks to which it is exposed.
These include monitoring levels of exposure to interest rates and assessments of market forecasts for interest
rates. Ageing analysis of and monitoring of receivables are undertaken to manage credit risk, liquidity risk is
monitored through the development of future rolling cash flow forecasts.
The Board reviews and agrees policies for managing each of these risks as summarized below.
Great Boulder Resources Limited – Annual Report 2019
55
Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and
agrees policies for managing each of the risks identified below, including for interest rate risk, credit allowances
and cash flow forecast projections.
Risk Exposures and Responses
(a)
Interest rate risk exposure
The company's is not exposed to interest rate risk.
(b)
Credit risk exposure
Credit risk arises from the financial assets of the company, which comprise deposits with banks and trade and
other receivables. The company’s exposure to credit risk arises from potential default of the counter party, with
the maximum exposure equal to the carrying amount of these instruments. The carrying amount of financial
assets included in the statement of financial position represents the company’s maximum exposure to credit risk
in relation to those assets.
The company does not hold any credit derivatives to offset its credit exposure.
The company trades only with recognised, credit worthy third parties and as such collateral is not requested nor
is it the company’s policy to securities it trades and other receivables.
Receivable balances are monitored on an ongoing basis with the result that the company does not have a
significant exposure to bad debts.
There are no significant concentrations of credit risk within the company.
(c)
Liquidity risk
Liquidity risk arises from the financial liabilities of the company and the company’s subsequent ability to meet
their obligations to repay their financial liabilities as and when they fall due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and, the
availability of funding through the ability to raise further equity or through related party entities. Due to the
dynamic nature of the underlying businesses, the Board aims at maintaining flexibility in funding through
management of its cash resources. The company has no financial liabilities at the year-end other than normal
trade and other payables incurred in the general course of business.
Remaining contractual maturities
The following tables detail the company's remaining contractual maturity for its financial instrument liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the financial liabilities are required to be paid. The tables include both interest and principal cash
flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying
amount in the statement of financial position.
Great Boulder Resources Limited – Annual Report 2019
56
Weighted
average
interest rate
%
-
Weighted
average
interest rate
%
-
1 year or less
$
Remaining contractual
maturities
$
72,595
72,595
72,595
72,595
1 year or less
$
Remaining contractual
maturities
313,833
313,833
313,833
313,833
2019
Non-derivatives
Non-interest bearing
Trade and other payables
Total non-derivatives
2018
Non-derivatives
Non-interest bearing
Trade payables
Seed Capital Refunds
Total non-derivatives
23. SHARE BASED PAYMENTS
Below are details of share based payments made during the current year and prior financial years.
(a) Performance Rights issued
Set out below is a summary of performance rights on issue as at 30 June 2019
Class
Grant date
Expiry date
Exercise
Price
Balance at
start of year
A 20/02/2018 15/11/2018
23/10/2019
B
10/01/2020
C
20/02/2018
5/11/2018
nil
nil
nil
1,250,000
750,000
-
2,000,000
Issued
during
the year
-
-
500,000
500,000
Expired/
forfeited
during
the year
(1,250,000)
(750,000)*
(500,000)*
(2,500,000)
Exercised
during
the year
Balance at
end of year
-
-
-
-
-
-
-
-
The fair value of the Class A Performance Rights at issue date was determined by the valuer using a using a hybrid
up and in single barrier pricing model. The model takes into consideration that the Rights will vest at any time
during the performance period, given that the 3-month VWAP exceeds the barrier price. The model incorporates
a trinomial option valuation.
The fair value of the Class B Performance Rights at issue date was determined by using a Black Scholes option
pricing model.
The fair value of the Class C Performance Rights at issue date was determined by the valuer using a using a hybrid
up and in single barrier pricing model. The model takes into consideration that the Rights will vest at any time
during the performance period, given that the 1-month VWAP exceeds the barrier price. The model incorporates
a trinomial option valuation.
* The performance rights included a service condition. As the Managing Director resigned on 3 May 2019 the
Class B and Class C performance rights were forfeited.
Great Boulder Resources Limited – Annual Report 2019
57
The model inputs for each class of performance rights granted during the year ended 30 June 2019 included:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
Consideration for performance rights
Underlying security price
Exercise price
Valuation date
Commencement of measurement period
Measurement date/expiry date
Measurement period (years)
Risk free rate
Volatility
Class C
Nil
$0.18
Nil
5/11/2018
5/11/2018
10/01/2020
1.18
2.05%
96%
The fair value of the performance rights granted during the financial year was $62,710. Expense is recognised
on a straight-line basis over the vesting period.
The value disclosed in share based payment expense is the portion of the fair value of the performance rights
recognised as expense in each reporting period in accordance with the requirement of AASB 2.
(b) Options issued
Set out below is a summary of options on issue as at 30 June 2019
Issue date
Expiry date
Exercise
Price
Balance at
start of year
Issued
during
the year
Expired
during
the year
Exercised
during
the year
Balance at
end of year
13/05/2016 17/11/2020
30/06/2016 17/11/2020
17/11/2020
07/07/2016
17/11/2020
25/08/2016
17/11/2020
18/11/2016
18/03/2022
18/03/2019
$0.20
$0.20
$0.20
$0.20
$0.20
$0.20
26,500,000
5,094,179
1,785,714*
1,000,000
1,500,000
-
35,879,893
-
-
-
-
-
250,000***
250,000
-
-
-
(1,000,000)
**
-
-
(1,000,000)
-
-
(250,000)
-
-
-
(250,000)
26,500,000
5,094,179
1,535,714
-
1,500,000
250,000
34,879,893
Number
exercisable
at end of
year
26,500,000
5,094,179
1,535,714
-
1,500,000
-
34,629,893
*Options were granted as free attaching options as part of the share placement.
**Due to the resignation of the Managing Director on 3 May 2019, these were forfeited.
***The options vest 12 months after issue, subject to the optionholder remaining employed by the Company
on the vesting date.
(c) Fair value of options issued
The fair value at issue date was determined using a Black-Scholes option pricing model that takes into account
the exercise price, the share price at issue date and expected price volatility of the underlying share, and the risk
free interest rate for the term of the loan.
The model inputs for options granted during the year ended 30 June 2019 included:
(i) Options are granted for no consideration.
(ii) Exercise price - $0.20
(iii) Expected price volatility of the company’s shares: 87.6%
(iv) Risk-free interest rate: 1.60%
Great Boulder Resources Limited – Annual Report 2019
58
(v) Spot price at date of valuation: $0.14
The fair value of the options issued during the financial year was $16,484. Expense is recognised on a straight-
line basis.
The weighted average exercise price for options issued during the year was $0.20 (2018: $0.20).
The weighted average share price of exercised options during the financial year was $0.475 (2018: nil).
The weighted average remaining contractual life of options outstanding at the end of the financial year is 1.4
years (2018: 2.4 years).
(d) Expenses arising from share based payment transactions:
Total transactions arising from share based payment transactions recognised during the year were as follows:
SBP – transaction costs within contributed
equity
SBP – expenses
2019
$
-
(13,394)
(13,394)
2018
$
--
-
47,948
47,948
Great Boulder Resources Limited – Annual Report 2019
59
14 Information Required by the Australian Securities Exchange Limited
SHAREHOLDER INFORMATION AS AT 23 SEPTEMBER 2019
(a) Spread of Holdings
1
1,001
5,001
10,001
100,001 & Over
1,000
5,000
10,000
100,000
-
-
-
-
Shareholders
Units
37
145
129
346
165
822
12,520
427,269
1,141,301
13,292,283
85,217,136
100,090,509
(b) Less than marketable parcels
Minimum $500.00 parcel at $0.045 per unit – 321 holders, holding 1,687,307 shares (total of1.69% of issued capital).
(c) The names of the twenty largest shareholders as at 23 September 2019 who between them held 38.3% of the issued capital
are listed below:
Number of Ordinary Shares
%
1
2
3
4
5
RETZOS FAMILY PTY LTD
MR DAVID ROTHWELL
BLACK INTERNATIONAL PTY LTD
EXPLORATION CAPITAL PARTNERS 2014 LIMITED PARTNERSHIP
MR GEORGE SCOTT MILLING & MS STEPHANIE MAY MILLING
R & L LEIGHTON PTY LTD
6
7 WILLROTH PTY LTD
MR FREDERICK CHARLES SAUNDERS
8
GECKO RESOURCES PTY LTD
9
AUSGOLD LIMITED
10
LEIGHTON CROSSING PTY LTD
11
OMAROO PTY LTD
12
CAIRNGLEN INVESTMENTS PTY LTD
13
DOUBLE DJ ENTERPRISES PTY LTD
14
MR SCOTT WILLIAM HALLEY & MRS SHARON MAREE HALLEY
15
LEYBOURNE INVESTMENTS PTY LTD
16 MR JOHN BEESON
17
18 MR WILLIAM ROBERT CARTER & MS SARAH VICTORIA WILLIAMS
19 MR RAYMOND FRANCIS
20
UNAVAL NOMINEES PTY LTD UNAVAL MANAGEMENT RETIREMENT
3,875,000
3,208,600
3,000,000
2,803,337
2,750,000
2,500,000
2,288,914
2,025,000
2,000,000
1,500,000
1,450,000
1,400,000
1,322,208
1,300,000
1,300,000
1,300,000
1,250,000
1,078,150
1,000,000
1,000,000
3.87%
3.21%
3.00%
2.80%
2.75%
2.50%
2.29%
2.02%
2.00%
1.50%
1.45%
1.40%
1.32%
1.30%
1.30%
1.30%
1.25%
1.08%
1.00%
1.00%
38,351,209
38.32%
Great Boulder Resources Limited – Annual Report 2019
60
(d)
The names of the twenty largest optionholders as at 23 September 2019 who between them held 91.57% of the options
are listed below:
BLACK INTNL PL < BLACK INTNL A/C >
HALLEY SCOTT W + S M
DOUBLE DJ ENTPS PL
BEESON JOHN
OMAROO PL
LEIGHTON CROSSING PL
EXPL CAP PTNRS 2014 LTD P
R & L LEIGHTON PL < ROSS LEIGHTON FAM>
1
OSTERTAG HLDGS PL < EASTERDAY FAM A/C>
2
3 MILLING GEORGE S + S M < MILLING S/F A/C >
4
5
6
7
8
9
10
11 QOC FOUNDERS NOM PL
12 O'DONNELL PATRICK W
13
14
15
16
17
18 WOOLFORD GRAHAM
19
20
ROMULUS PL
BROOMHEAD JAMES
PISTACHIO PL
FRANCIS RAYMOND
STEPHENS B O + E J
GRIFFINC PL
DORAN DS + SL
Number of Options
3,500,000
3,500,000
3,500,000
3,500,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,785,714
1,071,429
1,000,000
1,000,000
642,500
571,429
500,000
500,000
357,143
262,500
250,000
31,940,715
%
10.03%
10.03%
10.03%
10.03%
5.73%
5.73%
5.73%
5.73%
5.73%
5.12%
3.07%
2.87%
2.87%
1.84%
1.64%
1.43%
1.43%
1.02%
0.75%
0.72%
91.57%
(e)
Unquoted equity securities on issue as at 23 September 2019 was as follows:
-
49 Optionholders holding 34,879,893 options
(f)
The number of restricted equity securities on issue as at 23 September 2019 was:
-
1 shareholder holding 500,000 shares escrowed to 12 December 2019
Great Boulder Resources Limited – Annual Report 2019
61
15 Corporate Directory
Directors
Gregory C Hall (Non-Executive Chairman)
Andrew G Paterson (Managing Director)
Murray E Black (Non-Executive Director)
Melanie J Leighton (Non-Executive Director)
Company Secretary
Melanie Ross
Principal Place of Business
First Floor, 768 Canning Highway
Applecross WA 6153
Telephone: 08 6323 7800
08 9315 5004
Facsimile:
Registered Office
First Floor, 768 Canning Highway
Applecross WA 6153
Telephone: 08 6323 7800
08 9315 5004
Facsimile:
Solicitors
Jackson McDonald
Level 17, 225 St George’s Terrace
PERTH WA 6000
Auditors
RSM Australia Partners
Level 32 Exchange Tower
2 The Esplanade
PERTH WA 6000
Share Registry
Automic Registry Services
Level 2
267 St Georges Terrace
PERTH WA 6000
Telephone: 1300 288 664
Bankers
Westpac Banking Corporation
Hannan Street
Kalgoorlie W A 6430
Stock Exchange
Securities are listed on the Australian
Securities Exchange (ASX Code: GBR)
Great Boulder Resources Limited – Annual Report 2019
62