Great Boulder Resources
Annual Report 2021

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ABN 70 611 695 955 2021 Annual Report Contents Key Highlights ....................................................................................................................................................................... 3 1 Review of Operations ......................................................................................................................................................... 5 2 Corporate Activities .......................................................................................................................................................... 13 3 4 Directors’ Report............................................................................................................................................................... 16 Independence Declaration ............................................................................................................................................... 26 5 6 Auditors Report ................................................................................................................................................................. 27 7 Directors’ Declaration ...................................................................................................................................................... 31 Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................. 32 8 9 Consolidated Statement of Financial Position ............................................................................................................. 33 10 Consolidated Statement of Changes in Equity ............................................................................................................ 34 11 Consolidated Statement of Cash Flows ........................................................................................................................ 35 12 Notes to the Financial Statements ................................................................................................................................. 36 13 Information Required by the Australian Securities Exchange.................................................................................. 60 14 Corporate Directory......................................................................................................................................................... 61 Great Boulder Resources Limited – Annual Report 2021 2 1 Key Highlights The Directors of Great Boulder Resources Ltd (Great Boulder, GBR or the Company) are pleased to present the Annual Report for the Financial Year to 30 June 2021. The past year has been transformational for Great Boulder. The Blue Poles discovery at Whiteheads was confirmed by reverse circulation (RC) drilling in late 2020, followed by the discovery of high-grade zones at the Mulga Bill prospect at Side Well. Mulga Bill is shaping up as a company-making opportunity, with indications of significant size potential and extremely high-grade gold zones. Mineralisation is open along strike in both directions. Highlights during the year include:  Very high grade RC intersections in early drilling at Side Well o 3m @ 34.5g/t Au from 32m (21MBAC022) o 6m @ 31.2g/t Au from 130m (21BPRC002) o 8m @ 7.51g/t Au from 68m (21MBRC016)  The Blue Poles gold discovery at Whiteheads, with gold mineralisation defined in a broad, shallow zone over 600m of strike with drill hits such as o 40m @ 1.18g/t Au from 40m (21BPRC004) o 40m @ 1.15g/t Au from 44m, including 24m @ 1.54g/t Au (21BPRC014) o 36m @ 1.09g/t Au from 28m, including 8m @ 2.20g/t Au (21BPRC008) Subsequent to the end of financial year the Company reported a spectacular intersection of 3m @ 149.89g/t Au at Side Well within a broader zone of 14m @ 36.12g/t Au from 91m (21MBRC034). That hole also intersected a second, lower zone assaying 6m @ 24.33g/t Au. In light of the ongoing success at both gold projects the Directors decided to exercise the Company’s option to acquire a 75% interest in the Whiteheads and Side Well tenements from Zebina Minerals Pty Ltd. The results achieved at both projects this year are the result of methodical exploration using all available geophysical and geochemical information to define gold targets as discretely as possible prior to RC drilling. This process allows the Company to maximise exploration efficiency and its success is spectacularly demonstrated with the second RC hole at Mulga Bill intersecting 6m @ 31.2g/t Au from 132m in 21MBRC002. In April the Company pegged tenements over a very large area of the Earaheedy Basin in Western Australia, a region which has the potential to become a world-class zinc-lead province. The new Wellington Project covers 1,134km2 including a 60km strike extent of the prospective Frere Formation. The tenements are expected to be granted during the coming year. Subsequent to the end of the reporting year the Company announced its intention to demerge the Yamarna base metals projects into a new stand-alone entity, Cosmo Metals Ltd, which will be dedicated to advancing the discoveries at Mt Venn, Eastern Mafic and also Winchester. Cosmo Metals is expected to be listed on the ASX in late 2021. Great Boulder Resources Limited – Annual Report 2021 3 Hole Type AC RC Soil samples Auger AC RC Auger Soil samples All RC & AC Holes 163 46 1,016 641 220 60 518 82 486 Metres 13,358 7,341 9,938 6,954 37,591 Project Side Well Whiteheads Total Drilled Projects Great Boulder’s key projects are the Side Well and Whiteheads gold projects, both of which have yielded gold discoveries in the past year. The Wellington base metals project is a large greenfields project in the Earaheedy Basin, northeast of Wiluna in Western Australia. Figure 1: Great Boulder’s projects as at 30 June 2021. Great Boulder Resources Limited – Annual Report 2021 4 2 Review of Operations SIDE WELL GOLD PROJECT The Side Well project consists of a single tenement E51/1905, located east-northeast of Meekatharra in Western Australia. Side Well covers an area of 132km2 including approximately 25km of strike coverage over the Meekatharra-Wydgee greenstone belt. The Meekatharra region is a highly prospective goldfield, having produced around 4 million ounces of gold with more than 2.7 million ounces remaining in published resources1. Gold production has mainly focused on the western side of the greenstone belt, where gold is often hosted in banded iron formation (BIF). is an area dominated by The Polelle Syncline intermediate volcaniclastics. Side Well lies within the eastern limb of the syncline and is partially blanketed by a thin layer of alluvial cover. As a result, the project remains vastly under-explored relative to its gold potential. After acquiring an option to explore Side Well in July 2020 the Company commenced drilling the following month, with a 12-hole RC validation program testing grade continuity around previous intersections drilled by Doray Minerals. Immediately after this an Air-Core (AC) rig was mobilised to site to commence the first of three large campaigns of infill drilling. Much of the historic drilling is on drill lines 400m apart is no detailed assay or geological and there information to confirm the strike, dip or depth extent of gold mineralisation at Mulga Bill. With a broad diffuse halo of supergene gold anomalism sitting in the weathered zone over a potential bedrock target area 3.7km long and 600m wide, targeting primary mineralisation accurately at depth was a significant challenge. This challenge was overcome by drilling a pattern of AC holes to blade refusal in order to sample the top of the fresh rock – often 90 to 110m down-hole – and assay the samples for a suite of 48 pathfinder elements. The Company was able to generate contours of pathfinder elements associated with primary gold mineralisation, narrowing down the prospect area to a series of discrete, north-south-trending gold targets. Figure 2: Side Well location map. Having completed over 160 AC holes at Side Well, mainly in the central portion of the Mulga Bill prospect, the Company commenced testing the primary targets with RC drilling in early 2021. This drilling led to immediate success, with hole 21MBRC002 intersecting a 6m zone averaging 31.2g/t Au beneath an AC hole (21MBAC022) which intersected 3m @ 24.5g/t Au. By June 30, 46 RC holes had been completed in the central area of Mulga Bill, defining two sub-parallel mineralised zones up to 1,000m long immediately south of a Proterozoic dyke which bisects the prospect. These target zones are the priority for ongoing RC drilling, while AC programs continue to extend Mulga Bill along strike to the north and south. 1 Resource figures compiled from Westgold (ASX:WGX) announcement of 11/2/2020 and Silver Lake Resources (ASX:SLR) website. Great Boulder Resources Limited – Annual Report 2021 5 Figure 3: Recent RC drilling results from the central Mulga Bill high-grade zones. Analysis of Great Boulder’s multi-element geochemical data by consulting geochemist Dr Scott Halley led to a breakthrough in June this year. The geochemistry demonstrates a strong association between gold and the pathfinder elements bismuth, molybdenum and silver as well as copper and arsenic. This association is a classic geochemical signature of intrusive-related gold systems (IRGS), a style of deposit not previously recognised at Meekatharra. This development is an extremely positive advance in the Company’s understanding of Mulga Bill, as IRGS deposits tend to have significant depth continuity as well as size potential. St Ives in the Kambalda area of Western Australia is a well-known cluster of large IRGS deposits. However the Company is still working to better understand the scale of Mulga Bill before making any specific comparisons. Subsequent to 30 June 2021 the Company completed a detailed gravity survey over the Side Well project in order to define possible magmatic intrusions at depth beneath Mulga Bill; the theoretical “heat engines” driving the regional mineralising system. Final processing and interpretation of the gravity data is still in progress. At Mulga Bill the Company has defined gold and pathfinder anomalism over more than 5km of strike, with the system open to the north and south as well as at depth. Given the size and depth potential of the system as well as the very high-grade structures already identified in early drilling, Mulga Bill has potential to be a transformational discovery for Great Boulder. Outside of Mulga Bill the Company’s exploration strategy at Side Well is designed to identify and progress a pipeline of prospects, from conceptual targets through to discovery and definition. Current targets include Matilda, which was discovered in regional drilling by Doray Minerals with an intersection of 3m @ 35.5g/t Au from 76m in hole MNAC0463. There has been insufficient drilling to understand the mineralisation style and potential at Matilda, but this intersection remains open along strike with no effective drilling within 400m to the north or south. Great Boulder Resources Limited – Annual Report 2021 6 Elsewhere, the northern end of the Side Well project contains a number of conceptual structural target areas, where small intrusive bodies and cross-cutting faults disrupt the prospective mafic-banded iron formation stratigraphy. A broad-spaced soil sampling program completed in April 2021 on a 400m (north-south) by 50m (east-west) grid identified a number of pathfinder anomalies which are now being infilled with additional soil sampling to 200 by 50m prior to initial drill testing. Figure 4: Side Well north. Clockwise from top left: initial soil sampling contours for gold, silver, arsenic and copper. Background image is regional magnetics. Great Boulder Resources Limited – Annual Report 2021 7 WHITEHEADS GOLD PROJECT The 450km2 Whiteheads project north of Kalgoorlie is an amalgamation of tenements including a farm-in agreement with Mithril Resources Ltd on the western half of Whiteheads and a 75% joint venture with Zebina Minerals Pty Ltd in the east. Both agreements were executed in late 2019. Whiteheads is a large project with significant potential for gold and nickel. Straddling the boundary between the Kalgoorlie and Kurnalpi terranes, Whiteheads has previously been explored for komatiite-hosted nickel at the Wishbone and Drumstick prospects within the Kalgoorlie Terrane. The Carr Boyd nickel project in the Kurnalpi Terrane immediately north of Whitehead highlights untested potential for magmatic-hosted nickel sulphides. The project includes a number of small-scale historic workings dating back to the early 1900’s particularly on the trend running from Seven Leaders in the north-eastern area of Whiteheads down to the Gindalbie mining centre in the southeast. Much of the exploration conducted by previous explorers at Whiteheads has focused on gold exploration on the eastern half of the project, within the Kurnalpi terrane, and nickel exploration on the western half within the Kalgoorlie terrane. Interestingly, this means that a large portion of the western side of Whiteheads has received very little attention from gold explorers. Great Boulder’s exploration at Whiteheads has been primarily focused on the gold potential. Initial auger sampling and drilling on the Arsenal Trend in the north-eastern area of Whiteheads led to the discovery of Blue Poles, which was defined by three rounds of RC drilling from late 2020. Blue Poles is a broad, plunging cigar- shaped shoot of gold mineralisation up to 45m wide over a strike extent of approximately 600m, with recent deeper drilling to the south indicating potential for higher grade primary mineralisation to the south. A detailed gravity survey completed in early 2021 confirmed the Arsenal Trend as a significant regional structure, with a corridor of interpreted felsic intrusions plunging south and driving mineralisation along the trend. In addition to the gravity interpretation, further evidence of this system is provided by high-temperature mineral alteration seen in petrography at Blue Poles on the northern end of the trend, with low- temperature multi-element geochemistry seen in auger sampling at the southern end of the trend. This data supports Great Boulder’s model of a large-scale system driving mineralising fluids from north to south, parallel to regional stratigraphy, reflected in a temperature gradient from north to south as well as the surface gold anomalism identified in work completed to date. Figure 5: Whiteheads project location. With an overall potential strike length of approximately 22km stretching from the Gunners prospect in the north to the Four Dudes prospect in the south, much of the Arsenal Trend has not yet been tested by either soil geochemistry or drilling. The southernmost line of AC drilling situated between the cross-cutting Proterozoic dykes is less than halfway down the trend. Great Boulder is hoping to find a number of Blue Poles-type discoveries down this trend which remains a key priority for ongoing exploration at Whiteheads. Great Boulder Resources Limited – Annual Report 2021 8 Figure 6: A gravity image showing the eastern side of Whiteheads demonstrates the size potential of the Arsenal Trend. Away from the Arsenal Trend, regional target generation and auger sampling is continuing on a number of priority areas. Recent auger sampling has returned encouraging results at Jubilee North and Hillsborough, with ongoing programs further west in the Wishbone area and in the south-east near the historic Eclipse workings. At Jubilee North, a broad semi-circular magnetic feature with coincident auger anomalism in a conceptual “pressure shadow” position on the eastern side, first-pass AC drilling on two wide-spaced fences returned a best result of 4m @ 2.11g/t Au from 52m in hole 21WHAC809. This result from initial drilling on such a large target area is very encouraging and further work is planned. Great Boulder Resources Limited – Annual Report 2021 9 Figure 7: The Jubilee North prospect has previously been interpreted as a circular porphyry intrusion. Anomalous gold mineralisation occupies a possible pressure shadow position on the south-eastern side of the feature. While exploration results during the year have positioned Side Well as the number one priority for ongoing exploration, Great Boulder remains focused on continuing the systematic exploration of Whiteheads in parallel with drilling programs at Side Well. Whiteheads is an extremely prospective exploration project which remains highly under-explored relative to its potential. Great Boulder Resources Limited – Annual Report 2021 10 WELLINGTON ZINC-LEAD PROJECT The Wellington Project is located in the Earaheedy Bason in central Western Australia, an area with the potential to become a world-class zinc-lead province. A desktop study of GSWA derived geochemical data by Great Boulder's geologists in 2020 identified a large target in the Earaheedy Basin similar to Rumble Resources' recent large-scale Zn-Pb discovery at Chinook. With increased focus on the Earaheedy following significant exploration success by Rumble in early 2021, Great Boulder made the decision to peg this target in April 2021. At Wellington the Company has three tenements covering an area of 1,134km2 including 60km of prospective strike of the Frere Formation. The tenements are currently in application. Once granted, Great Boulder will commence exploration with field reconnaissance and surface sampling to identify targets for drill testing. Given the scale of Rumble's early stage discovery, Great Boulder considers the Earaheedy Basin to be potentially a world-class Mississippi Valley-type (MVT) Zn-Pb province. Figure 8: The Wellington target was identified by analysing WA Government surface geochemical data. Great Boulder Resources Limited – Annual Report 2021 11 Figure 9: Large-scale northwest-trending structures in the underlying Archaean basement are likely to be a key feature focusing mineralisation at Wellington. Great Boulder Resources Limited – Annual Report 2021 12 3 Corporate Activities During the year the Company completed a placement to raise $1,330,551 via the issue of 30,943,041 fully paid ordinary shares at an issue price of $0.043 (before costs). This was completed on 20 August 2020. As part of this capital raising, the Company completed a non-renounceable rights issue, which raised $956,418 by the issue of 22,242,278 fully paid ordinary shares at an issue price of $0.043. This was completed on 16 September 2020. A further $61,080 was raised via the issue of 1,420,457 fully paid ordinary shares at an issue price of $0.043, which was completed on 17 September 2020. A placement was completed on 4 March 2021 to raise $1,645,523 via the issue of 47,014,943 fully paid ordinary shares at an issue price of $0.035 (before costs). As part of this capital raising, the Company completed a non- renounceable rights issue, which raised $1,462,687 by the issue of 41,791,060 at an issue price of $0.035. This was completed on 23 March 2021. On 19 May 2021, the Company’s Managing Director Andrew Paterson was issued 571,429 fully paid ordinary shares following shareholder approval at the Company’s general meeting held on 11 May 2021. These shares were issued at $0.035 to raise $20,000. On 19 May 2021, the Company issued 5,714,286 fully paid ordinary shares at an issue price of $0.035 and 5,714,286 options at an exercise price of $0.542 expiring 19 May 2024 as consideration for 75% of the Whiteheads Gold Project. The Company also completed a placement on 26 May 2021 to raise $5,531,815 via the issue of 69,216,443 fully paid ordinary shares at an issue price of $0.08 (before costs). On 1 June 2021, 598,030 options were exercised at a price of $0.0525 to issue 598,030 fully paid ordinary shares and raise $73,977. Subsequent to year end, on 16 July 2021, the Company issued, 2,194,403 fully paid ordinary shares, and 2,194,403 options at an exercise price of $0.1108 expiring 12 July 2024 as consideration for 75% interest in the Side Well Gold Project. On 16 July 2021, the Company issued 110,676 fully paid ordinary shares to a creditor in lieu of cash. The fair value of the shares issued was $10,000. On 16 July 2021, the Company issued 4,000,000 options with an exercise price of $0.12 expiring 31 May 2024 to a broker for capital raising services provided during the year ended 30 June 2021. During the period 3-16 September 2021, the Company issued 1,964,769 fully paid ordinary shares upon the exercise of 1,964,769 options. Proceeds received upon the exercise of these options totalled $193,498. Great Boulder Resources Limited – Annual Report 2021 13 The issued share capital of the Company at the date of this report is: Class of Securities Ordinary fully paid shares Unlisted Options (exercisable at $0.20 and expire 18/03/2022) Unlisted Options (exercisable at $0.10 and expire 30/06/2022) Unlisted Options (exercisable at $0.04 and expire 30/06/2022) Unlisted Options (exercisable at $0.075 and expire 28/08/2023) Unlisted Options (exercisable at $0.10 and expire 30/09/2023) Unlisted Options (exercisable at $0.074 and expire 30/06/2023) Unlisted Options (exercisable at $0.0525 and expire 31/03/2024) Unlisted Options (exercisable at $0.0542 and expire 19/05/2024) Unlisted Options (exercisable at $0.12 and expire 31/05/2024) Unlisted Options (exercisable at $0.1108 and expire 16/07/2024) Issued Capital 357,235,809 250,000 4,000,000 2,000,000 799,000 600,000 4,000,000 4,565,515 5,714,286 3,010,000 2,194,403 Competent Person’s Statement 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 2021 14 Appendix 2 – Tenement Schedule as at reporting date Project Mirra Well Side Well Whiteheads Whiteheads Whiteheads Whiteheads Whiteheads Whiteheads Whiteheads Winchester Winchester Yamarna Yamarna Yamarna Yamarna Yamarna Yamarna Yamarna Wellington Wellington Wellington Tenement Number E51/1974 E51/1905 E27/538 E27/544 E27/582 E27/584 E27/588 E27/622 E27/636 E38/3340 E38/2129 E38/2320 E38/2685 E38/2952 E38/2953 E38/2957 E38/2958 P38/4178 E53/2172 E38/3621 E38/3622 Status Interest Comments Application Granted Granted Granted Granted Granted Granted Granted Application Granted Granted Granted Granted Granted Granted Granted Granted Granted Application Application Application JV with Zebina Minerals In application JV with Zebina Minerals 100% 75% 0% Option to acquire 80% 75% 0% Option to acquire 80% 0% Option to acquire 80% 75% 75% 75% JV with Zebina Minerals JV with Zebina Minerals In application 100% Demerging to Cosmo Metals 75% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% Demerging to Cosmo Metals 100% 100% 100% Great Boulder Resources Limited – Annual Report 2021 15 4 Directors’ Report Your directors have pleasure in presenting their report, together with the financial statements, on the Group (referred to hereafter as the “Group”), consisting of Great Boulder Resources Limited (referred to hereafter as the “Company” or “Parent Entity”) and the entity it controlled at the end of the year ended 30 June 2021. 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) Melanie J Leighton (Non-Executive Director) Murray E Black (Non-Executive Director) (ceased 18 November 2020) 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 Honours) in 1973. Andrew G Paterson, Managing Director 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. 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. Great Boulder Resources Limited – Annual Report 2021 16 Company Secretary – Melanie Ross Ms Ross was appointed on 28 March 2018 and is an accounting and corporate governance professional with over 20 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. Principal Activities During the year, the Group was principally involved in mineral exploration in Western Australia. Results of Operations The results of the Group for the year ended 30 June 2021 was a loss of $752,371 (2020: loss $2,312,943). 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 12. 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. Likely Developments and Expected Results of Operations Further information on the likely developments in the operations of the Group and the expected results of operations have been included in the review of operations. Environmental Issues The directors advise that during the year ended 30 June 2021 no claim has been made by any competent authority that any environmental issues, condition of license or notice of intent has been breached. 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 2020 to 30 June 2021, the Directors have assessed that there are no current reporting requirements but may be required to do so in the future. Great Boulder Resources Limited – Annual Report 2021 17 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. Matters Subsequent to the End of the Financial Year On 13 July 2021, the Company announced that it had exercised its option to acquire a 75% interest in the Side Well Project. Under the terms of the agreement, the Company paid total consideration of $350,000 to Zebina Minerals Pty Ltd, comprising of $175,000 cash, 2,194,403 fully paid ordinary shares, and 2,194,403 options at an exercise price of $0.1108 expiring 12 July 2024. The shares and options were issued on 16 July 2021. On 16 July 2021, the Company issued 110,676 fully paid ordinary shares to a creditor in lieu of cash. The fair value of the shares issued was $10,000. On 16 July 2021, the Company issued 4,000,000 options ($0.12 expiring 31 May 2024) to a broker for capital raising services provided during the year ended 30 June 2021. On 23 July 2021, the Group incorporated a wholly-owned subsidiary, GBR Side Well Pty Ltd. During the period 3-16 September 2021, the Company issued 1,964,769 fully paid ordinary shares upon the exercise of 1,964,769 options. Proceeds received upon the exercise of these options totalled $193,498. The details of which are included below: Option Details Exercise Date Number Exercised Exercise Price Proceeds Received ($) 5.25c options expiring 31/03/2024 7.5c options expiring 28/08/2023 10c options expiring 30/09/2023 12c options expiring 31/05/2024 10c options expiring 30/09/2023 12c options expiring 31/05/2024 03/09/2021 08/09/2021 08/09/2021 10/09/2021 16/09/2021 16/09/2021 373,769 201,000 350,000 760,000 50,000 230,000 1,964,769 $0.0525 $0.075 $0.10 $0.12 $0.10 $0.12 19,623 15,075 35,000 91,200 5,000 27,600 193,498 On 14 September 2021, the Group announced it intends to demerge its 100% owned Yamarna Copper-Nickel- Cobalt Project into a dedicated ASX-listed battery metal focused vehicle, Cosmo Metals. More details about the demerger timetable and additional information will be announced to the market in due course. The impact of Coronavirus (COVID-19) pandemic is ongoing. It is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the State and Federal Governments, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. 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. Great Boulder Resources Limited – Annual Report 2021 18 Security Holding Interests of directors as at the date of this report Directors Gregory C Hall Andrew G Paterson Melanie J Leighton Directors’ Meetings Ordinary Shares 1,996,296 855,704 1,450,000 Options Over Ordinary Shares 2,000,000 6,000,000 2,000,000 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 Eligible Meetings while in office 5 5 5 1 Eligible Meetings attended 5 5 5 1 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 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: Great Boulder Resources Limited – Annual Report 2021 19 2021 Name Gregory C Hall (Non- Executive Chairman) Melanie J Leighton (Non- Executive Director) Andrew G Paterson (Managing Director) Murray E Black (Non- Executive Director)* Short Term Post- Employment Share based Payments Performance Linked Salary $ - Fees $ 54,750 - 40,000 240,000 - - 15,333 240,000 110,083 Other Benefits $ - Superannuation $ - Options $ 43,800 Total $ 98,550 - - - - 3,800 43,800 87,600 22,800 1,457 - - 262,800 16,790 28,057 87,600 465,740 % 44% 50% - - * Ceased 18 November 2020 2020 Name Gregory C Hall (Non- Executive Chairman) Melanie J Leighton (Non- Executive Director) Andrew G Paterson (Managing Director) Murray E Black (Non- Executive Director) Salary $ - Fees $ 54,750 - 40,000 240,000 - - 40,000 240,000 134,750 Short Term Post- Employment Share based Payments Performance Linked Other Benefits $ - Superannuation $ - Options $ - Total $ 54,750 % - - - - - - 3,800 - 43,800 22,800 146,200 409,000 36% 3,800 - 43,800 - 30,400 146,200 551,350 In accordance with the requirement of AASB2 Share based payments, the value disclosed is the portion of the fair value of the options 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 options vest. 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 2021, 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 2021 Gregory C Hall Andrew G Paterson Murray E Black* Melanie Leighton * Ceased 18 November 2020 Balance at the start of the year 1,400,000 - 4,166,667 1,450,000 7,016,667 Granted as compensation - - - - - Other changes during the year 596,2961 855,7042 (4,166,667) - (2,714,667) Balance at the end of the year 1,996,296 855,704 - 1,450,000 4,302,000 1. During the year, Gregory Hall purchased 596,296 shares on market, on the same terms as the rest of the market. Great Boulder Resources Limited – Annual Report 2021 20 2. During the year, Andrew Paterson purchased 855,704 shares on market, on the same terms as the rest of the market. 2020 Gregory C Hall Andrew G Paterson Murray E Black Melanie Leighton Options 2021 Gregory C Hall Andrew G Paterson Murray E Black* Melanie Leighton * Ceased 18 November 2020 2020 Gregory C Hall Andrew G Paterson Murray E Black Melanie Leighton Share based compensation Shares Balance at the start of the year 1,400,000 - 3,000,000 1,450,000 5,850,000 Granted as compensation - - - - - Other changes during the year - - 1,166,667 - 1,166,667 Balance at the end of the year 1,400,000 - 4,166,667 1,450,000 7,016,667 Balance at the start of the year 2,000,000 6,000,000 3,500,000 2,000,000 13,500,000 Granted as compensation 2,000,000 - - 2,000,000 4,000,000 Other changes during the year (2,000,000) - (3,500,000) (2,000,000) (7,500,000) Balance at the end of the year 2,000,000 6,000,000 - 2,000,000 10,000,000 Balance at the start of the year 2,000,000 - 3,500,000 2,000,000 7,500,000 Granted as compensation - 6,000,000 - - 6,000,000 Other changes during the year Balance at the end of the year 2,000,000 6,000,000 3,500,000 2,000,000 13,500,000 - - - - - No shares were issued to key management personnel as compensation during the year ended 30 June 2021 (2020: nil). Options During the year ended 30 June 2021 4,000,000 options were granted (2020: 6,000,000) to key management personnel. The fair value of the options granted during the financial year was $87,600 (2020: $146,000). 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 options recognised as expense in each reporting period in accordance with the requirement of AASB 2. The terms and conditions of options affecting remuneration granted to key management personnel in this and future reporting years are as follows: Great Boulder Resources Limited – Annual Report 2021 21 Employee Andrew Paterson Andrew Paterson Gregory Hall Melanie Leighton No. of Options granted 4,000,000 2,000,000 2,000,000 2,000,000 Grant date 21/11/2019 21/11/2019 02/12/2020 02/12/2020 Vesting conditions Note 1 Note 2 Note 3 Note 3 Expiry date 30/06/2022 30/06/2022 30/06/2023 30/06/2023 Exercise price $0.10 $0.04 $0.074 $0.074 Fair value per option at grant date $0.0236 $0.0259 $0.0219 $0.0219 Value $ 94,400 51,800 43,800 43,800 Note 1. Vest immediately on the date of issue of the options. Note 2. Vest on 30 June 2020, subject to remaining as an employee of the Company. Note 3. The non-executive director options vest immediately on the date of issue and are not subject to any vesting conditions or exercise conditions. 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: Mr Paterson is employed as the Managing Director. (a) (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). 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 * Ceased 18 November 2020 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 (2020: $54,750) in directors and consulting fees as part of his remuneration. No amounts were owing as at 30 June 2021 (2020: $nil). Great Boulder Resources Limited – Annual Report 2021 22 A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, was paid $265,991 (2020: $432,363) for drilling services during the period to 18 November 2020, the date at which Mr Black ceased to be a director of Great Boulder. 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 $nil from EGMC (2020: $19,510). EGMC withdrew as a Joint Venture partner during the prior year. No amounts were receivable as at 30 June 2021 (2020: $nil). All payments were made at recognised commercial rates. Additional information The earnings of the Group for the three years since incorporation to 30 June 2021 are summarised below: Revenue EBITDA EBIT Loss after income tax 2021 2020 2019 86,586 (682,170) (738,527) (752,371) 69,945 18,540 (2,263,141) (1,353,836) (2,308,610) (1,353,836) (2,312,943) (1,353,836) The factors that are considered to affect total shareholders return ('TSR') are summarised below. Share price at financial year end ($) Basic earnings per share (cents per share) 0.091 (0.35) 0.028 (1.92) 0.0525 (1.68) 2021 2020 2019 [End of Remuneration Report] Shares under Option There were 22,903,570 ordinary shares under option at 30 June 2021 (2020: 40,879,893). Shares Issued on the Exercise of Options There were 598,030 options were exercised during the year ended 30 June 2021 (2020: 0). Options Lapsed/ Forfeited During the Year 34,629,893 options lapsed during the year (2020: 0). No options were forfeited during the year (2020: 0). 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. Great Boulder Resources Limited – Annual Report 2021 23 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. 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 19. Great Boulder Resources Limited – Annual Report 2021 24 Auditors Independence Declaration The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and is included within this annual report. 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 Statement which is available on the Company’s website at: http://www.greatboulder.com.au/corporate-governance/ 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 29 September 2021 Great Boulder Resources Limited – Annual Report 2021 25 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 2021, 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: 29 September 2021 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) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2021 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 Group 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. 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. Key Audit Matter How our audit addressed this matter Carrying value of exploration and evaluation expenditure Refer to Note 10 in the financial statements The Group has capitalised a significant amount of exploration and evaluation expenditure, with a carrying value of $9,613,815 as at 30 June 2021. We determined 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 included:  Obtaining evidence that the Group has valid rights to explore in the specific area;  Agreeing a sample of additions to supporting documentation and ensuring the amounts are capital in nature and relate to the area of interest;  Assessing and evaluating management’s assessment that no indicators of impairment existed for those tenements where the Group has current rights of tenure;  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 management and reviewing budgets and plans to test that the Group 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 Group had not resolved to discontinue activities in the specific area. Key Audit Matter How our audit addressed this matter Share-based payment Refer to Note 17(b) in the financial statements During the year, the Company granted 21,251,600 options. The fair value of options granted during the year was:  $864,377 of which $106,127 was expensed in the consolidated statement of profit or loss and other comprehensive income;  $605,714 capitalised as exploration and evaluation expenditure in the consolidated statement of financial position, and  $348,963 recognised as share issue costs in the statement of changes in equity. have these Management arrangements in accordance with AASB 2 Share- based Payment and used an option pricing model to value the options issued during the year. accounted for We considered this to be a key audit matter due to the complex and significant judgement involved in assessing the share-based payments fair value of the Our audit procedures included:  Reviewing the key terms and conditions of the share-based payments arrangements;  Obtaining the valuation models prepared by management and assessing whether the models were appropriate for valuing the options granted during the year;  Checking the mathematical accuracy of the computation;  Challenging the reasonableness key assumptions used by management relative to the including valuation on measurement date assessing the volatility rate applied and the risk- free interest rate used; and of  Reviewing the adequacy and accuracy of the relevant disclosures in the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2021, 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 Group 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 Group 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: https://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 2021. In our opinion, the Remuneration Report of Great Boulder Resources Limited, for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. RSM AUSTRALIA PARTNERS Perth, WA Dated: 29 September 2021 ALASDAIR WHYTE Partner 7 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 Group's financial position as at 30 June 2021 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 29 September 2021 Perth Great Boulder Resources Limited – Annual Report 2021 31 8 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2021 Other income Depreciation Corporate fees Legal and professional fees Employee benefits expense Administration expenses Project evaluation costs Travel costs Impairment of exploration and evaluation expenditure Finance costs Share based payments Loss before income tax Income tax expense Loss after income tax Other comprehensive income Total comprehensive income attributable to the members of Great Boulder Resources Limited Note 2021 $ 2020 $ 4 5 10 17 6 86,586 86,586 (56,357) (36,971) (139,751) (226,951) (262,722) (83,769) (13,215) 100,750 (13,844) (106,127) 69,945 69,945 (45,469) (28,936) (119,661) (231,183) (222,857) (25,193) (13,105) (1,534,421) (4,333) (157,730) (752,371) (2,312,943) - - (752,371) (2,312,943) - - (752,371) (2,312,943) Basic and diluted loss per share (cents) 18 (0.35) (1.92) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes Great Boulder Resources Limited – Annual Report 2021 32 9 Consolidated Statement of Financial Position As at 30 June 2021 Current Assets Cash and cash equivalents Trade and other receivables Total current assets Non-Current Assets Plant and equipment Exploration and evaluation expenditure Right-of-use assets Total non-current assets Total Assets Current Liabilities Trade and other payables Provisions Lease liabilities Total current liabilities Non-Current Liabilities Lease liabilities Total non-current liabilities Total Liabilities Net Assets Equity Contributed equity Reserves Accumulated losses Total Equity Note 2021 $ 2020 $ 7 8 9 10 11 12 13 14 14 6,761,129 426,103 7,187,232 716,970 47,782 764,752 221,073 9,613,815 104,501 9,939,389 181,112 5,482,468 126,696 5,790,276 17,126,621 6,555,028 496,871 35,446 15,763 548,080 241,553 21,857 13,330 276,740 98,329 98,329 114,092 114,092 646,409 390,832 16,480,212 6,164,196 15 16 16 21,705,412 11,486,407 369,684 (5,691,895) 1,012,066 (6,237,266) 16,480,212 6,164,196 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes Great Boulder Resources Limited – Annual Report 2021 33 10 Consolidated Statement of Changes in Equity For the year ended 30 June 2021 Contributed Equity Reserves Accumulated Losses Total Equity $ 11,486,407 - $ 369,684 - $ (5,691,895) (752,371) $ 6,164,196 (752,371) - - (752,371) (752,371) Balance at 1 July 2020 Loss for the year Total Comprehensive Income for the Year Shares issued (net of costs) Exercise of options Expiry of options Share based payments 9,976,186 42,819 - 200,000 348,963 (11,422) (207,000) 511,841 - - 207,000 - 10,325,149 31,397 - 711,841 Balance at 30 June 2021 21,705,412 1,012,066 (6,237,266) 16,480,212 Balance at 1 July 2019 Loss for the year Total Comprehensive Income for the Year 9,526,164 - 211,954 - (3,378,952) (2,312,943) 6,359,166 (2,312,943) - - (2,312,943) (2,312,943) Shares issued (net of costs) Share based payments 1,960,243 - - 157,730 - - 1,960,243 157,730 Balance at 30 June 2020 11,486,407 369,684 (5,691,895) 6,164,196 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes Great Boulder Resources Limited – Annual Report 2021 34 11 Consolidated Statement of Cash Flows For the year ended 30 June 2021 Cash Flows from Operating Activities Payments to suppliers and employees Other receipts Interest paid Interest received Note 2021 $ 2020 $ (406,426) 107,260 (13,844) 826 (635,823) 47,210 (4,333) 1,235 Net cash used in operating activities 22(b) (312,184) (591,711) 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) Proceeds from the exercise of options Repayments of lease liabilities Net cash provided by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year (3,857,515) (1,694,984) (40,679) 463,854 (79,636) - 20,982 (3,937,151) (1,250,827) - 10,275,427 31,397 (13,330) 10,293,494 6,044,159 1,910,243 - (5,747) 1,904,496 61,958 716,970 655,012 Cash and cash equivalents at the end of the financial year 22(a) 6,761,129 716,970 The above Consolidated Statement of Cash Flows should be read on conjunction with the accompanying notes Great Boulder Resources Limited – Annual Report 2021 35 12 Notes to the Financial Statements 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Great Boulder Resources Limited (the “Company”) and its legal subsidiaries together are referred to in this financial report as the Group. 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. Great Boulders Resources Limited is a for profit public Company, limited by shares and domiciled in Australia. New, revised or amending Accounting Standards and Interpretations adopted The Group 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. 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 Group for the annual reporting period ended 30 June 2021. The Group's has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. (a) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australia Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with the International Financial Reporting Standards (IFRS). 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 29 September 2021 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. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Great Boulder Resources Limited (‘Company' or 'Parent Entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Great Boulder Resources Limited and its subsidiaries together are referred to in these financial statements as the 'Group'. Great Boulder Resources Limited – Annual Report 2021 36 Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non- controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. (b) Income tax The Group 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. 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 Group 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. Great Boulder Resources Limited – Annual Report 2021 37 Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. (d) Government grants Government grants relating to costs are deferred and recognised in profit or less over the period necessary to match them with the costs that they are intended to compensate. (e) 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. (f) 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 decision is made. (g) 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. Great Boulder Resources Limited – Annual Report 2021 38 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 Group 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. (h) Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The entity has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. (i) Trade and other payables These amounts represent liabilities for goods and services provided to the Group 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. Great Boulder Resources Limited – Annual Report 2021 39 (j) 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. 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. (k) Earnings per share i. Basic earnings per share Basic earnings per share is determined by dividing the profit attributable to equity holders of the Group, 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. (l) 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. (m) 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). (n) 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. Great Boulder Resources Limited – Annual Report 2021 40 (o) Provisions Provisions are recognised when the Group 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. (p) 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 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. (q) Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. (r) 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. (s) 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. Great Boulder Resources Limited – Annual Report 2021 41 (t) 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. (u) 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 Group 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. (v) 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 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. (w) Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in Note 28. Great Boulder Resources Limited – Annual Report 2021 42 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 Group 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 Group 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. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the consolidated entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. 3. SEGMENT INFORMATION The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group operates as a single segment which is mineral exploration and in a single geographical location which is Australia. Great Boulder Resources Limited – Annual Report 2021 43 4. OTHER INCOME Interest income Government grant 5. EXPENSES Depreciation Plant and equipment Office right-of-use assets Leases Short term lease payments Superannuation expense Defined contribution superannuation expense 6. INCOME TAX EXPENSE 2021 $ 826 85,760 86,586 2021 $ 34,162 22,195 56,357 3,287 3,287 45,888 45,888 2021 $ 2020 $ 1,235 68,710 69,945 2020 $ 38,996 6,473 45,469 54,120 54,120 45,213 45,213 2020 $ (a) Reconciliation of income tax expense to prima facie tax payable Loss before income tax Prima facie income tax at 30% (2020: 30%) Tax loss not recognised Income tax expense (b) Tax losses: (752,371) (225,711) 225,711 - (2,312,943) (693,883) 693,883 - Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 30% (2020: 30%) 9,109,897 8,530,310 2,732,969 2,559,093 (c) The directors estimate that the potential deferred tax asset at 30 June 2021 in respect of tax losses not brought to account is $2,732,969 (2020: $2,559,093). The benefit for tax losses will only be obtained if: i. ii. The Group 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. Great Boulder Resources Limited – Annual Report 2021 44 7. CASH AND CASH EQUIVALENTS Cash at Bank 8. TRADE AND OTHER RECEIVABLES GST receivable Other receivables (i) Prepayments 2021 $ 6,761,129 6,761,129 2021 $ 181,292 225,211 19,600 426,103 2020 $ 716,970 716,970 2020 $ 20,631 21,500 5,651 47,782 (i) Other receivables includes a research and development grant receivable of $225,211 as at 30 June 2021. The Group incurs expenditure on research and development and is eligible to receive a refundable tax offset under the Research and Development Tax Incentive. The expected refund is offset against the exploration and evaluation expenditure previously capitalised. In the prior year, other receivables included government grants. 9. 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 Depreciation Carrying amount at the end of the year 2021 $ 373,472 (152,399) 221,073 181,112 74,123 (34,162) 221,073 2020 $ 299,349 (118,237) 181,112 179,429 40,679 (38,996) 181,112 Great Boulder Resources Limited – Annual Report 2021 45 10. EXPLORATION AND EVALUATION EXPENDITURE Exploration and evaluation – at cost Carrying amount at the beginning of the year Acquisitions during the year (i) Capitalised mineral exploration and evaluation expenditure Impairment and write-off of exploration and evaluation costs (ii) Carrying amount at the end of the year 2021 $ 9,613,815 5,482,468 955,714 3,074,883 2020 $ 5,482,468 5,588,496 110,000 1,318,393 100,750 (1,534,421) 9,613,815 5,482,468 (i) The Company incurred acquisition costs relating to the following projects: a. Whiteheads Project: In the prior year, on 23 August 2019, the Company had entered into an agreement with Zebina Minerals Pty Ltd (“Zebina”) granting the Company with the exclusive right to acquire a 75% legal and beneficial interest in exploration licences E27/544, E27/588 and E27/622 (together the “Whiteheads Project”). Total consideration in the prior year of $100,000 comprised of;  $50,000 cash, and  980,392 fully paid ordinary shares with a fair value of $50,000 (refer to note 17). On 23 February 2021, the Company exercised its option to acquire a 75% legal and beneficial interest in the Whiteheads Project. Total consideration of $805,714 comprised of;  $200,000 cash,  5,714,286 fully paid ordinary shares with a fair value of $200,000 (refer to note 17), and  5,714,286 options exercisable at $0.0542 each expiring 19 May 2024 with a fair value of $405,714 (refer to note 17). In addition to the above, cash payments totalling $50,000 were also capitalised during the year, representing extensions to the option term. b. Side Well Project On 14 July 2020, the Company entered into an agreement with Zebina granting the Company with the exclusive right to acquire a 75% legal and beneficial interest in exploration licence E51/1905 (the “Side Well Project”). Total consideration of $100,000 was paid in cash. Refer to note 26 for the subsequent exercise of this option. c. Mt Jewell Project In the prior year, on 6 February 2020, the Company entered into an agreement with Simon Buswell-Smith granting the Company with the exclusive right to acquire a 75% legal and beneficial interest in exploration licence E27/566 (the “Mt Jewell Project”). Total consideration in the prior year was $10,000 in cash. Great Boulder Resources Limited – Annual Report 2021 46 (ii) In the prior year, the Company relinquished the Tarmoola Joint Venture ($1,069,714), Mt Carlon Project ($365,621) and Mt Jewell Project ($99,086). As such, the capitalised mineral exploration and evaluation expenditure in relation to these areas of interest has been impaired. In the current year, the Company recognised a receivable under the Research and Development Tax Incentive, of which $109,918 related to areas of interest that were previously impaired. The ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful development and commercial exploration or, alternatively, sale of the respective areas. 11. RIGHT OF USE ASSETS Right-of-use asset at cost – office Accumulated depreciation – office Reconciliations: Lease asset Carrying amount at the beginning of the year Additions Depreciation Carrying amount at the end of the year 12. TRADE AND OTHER PAYABLES Trade payables and accruals 13. PROVISIONS Employee entitlements 14. LEASE LIABILITIES Current Non-Current Refer to Note 25 for further information on financial instruments. 2021 $ 133,169 (28,668) 104,501 126,696 - (22,195) 104,501 2021 $ 496,871 496,871 2021 $ 35,446 35,446 2021 $ 15,763 98,329 114,092 2020 $ 133,169 (6,473) 126,696 - 133,169 (6,473) 126,696 2020 $ 241,553 241,553 2020 $ 21,857 21,857 2020 $ 13,330 114,092 127,422 Great Boulder Resources Limited – Annual Report 2021 47 15. CONTRIBUTED EQUITY (a) Ordinary Shares - fully paid Date Details Issue Price ($) No. of Shares Value ($) For the financial year ended 30 June 2021: 1 Jul 2020 20 Aug 2020 16 Sep 2020 17 Sep 2020 4 Mar 2021 23 Mar 2021 19 May 2021 19 May 2021 26 May 2021 1 Jun 2021 Balance 1 July – Ordinary Shares Shares issued under placement Shares issued under non-renounceable entitlements offer Shares issued under placement Shares issued under placement Shares issued under non-renounceable entitlements offer Shares issued under placement Shares issued under option agreement (i) Shares issued under placement Exercise of options Less costs of issue Balance 30 June 2021 – Ordinary Shares 30 Jun 2021 For the financial year ended 30 June 2020: 1 Jul 2019 9 Sep 2019 9 Sep 2019 3 Oct 2019 17 Oct 2019 Balance 1 July – Ordinary Shares Shares issued under option agreement (i) Shares issued under placement Shares issued under rights issue Shares issued under rights issue shortfall Less cost of issue Balance 30 June 2020 – Ordinary Shares 30 Jun 2020 0.043 0.043 0.043 0.035 0.035 0.035 0.035 0.080 0.0525 - 0.051 0.040 0.040 0.040 - 133,453,994 30,943,041 22,242,278 1,420,457 47,014,943 11,486,407 1,330,551 956,418 61,080 1,645,523 41,791,060 1,462,687 571,429 5,714,286 69,216,443 598,030 - 352,965,961 81,610,117 980,392 17,500,000 10,935,588 22,427,897 - 133,453,994 20,000 200,000 5,531,815 42,819 (1,031,888) 21,705,412 9,526,164 50,000 700,000 437,424 897,116 (124,297) 11,486,407 (i) Refer to note 17 for shares issued as share based payments. (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 Group, 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 Group. (c) Capital Risk Management The Group’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 Group may issue new shares, pay dividends or return capital to shareholders. Great Boulder Resources Limited – Annual Report 2021 48 Capital is calculated as ‘equity’ as shown in the statement of financial position, and is monitored on the basis of funding exploration activities. 16. 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 2021 $ 2020 $ (5,691,895) (752,371) 207,000 (6,237,266) (3,378,952) (2,312,943) - (5,691,895) (b) Reserves Options reserve The options reserve is used to recognise the fair value of options issued. Balance at the beginning of the year Share based payment expense Options issued for capital raising costs Options issued for acquisition of exploration & evaluation assets Transfer to issued capital upon exercise of options Transfer to accumulated losses upon expiry of options Balance at the end of the year Movement in Unlisted Options Balance at beginning of financial year Options issued during the year Options exercised during the year Options expired during the year Balance at end of financial year Listed Options 2021 $ 369,684 106,127 348,963 405,714 (11,422) (207,000) 1,012,066 2020 $ 211,954 157,730 - - - - 369,684 2021 Options 2020 Options 40,879,893 34,879,893 17,251,600 (598,030) (34,629,893) 22,903,570 6,000,000 - - 40,879,893 There were no listed options over ordinary shares in the Group at 30 June 2021 (2020: Nil). Great Boulder Resources Limited – Annual Report 2021 49 17. SHARE BASED PAYMENTS Below are details of share based payments made during the current year and prior financial years. (a) Options granted Set out below is a summary of options granted as at 30 June 2021 Issue date Expiry date Exercise Price Balance at start of year Granted 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 18/11/2016 18/03/2022 18/03/2019 30/06/2022 21/11/2019 30/06/2022 21/11/2019 28/08/2023 28/08/2020 30/09/2023 17/09/2020 30/06/2023 02/12/2020 31/03/2024 11/05/2021 19/05/2024 11/05/2021 31/05/2024 16/07/2021 $0.20 $0.20 $0.20 $0.20 $0.20 $0.10 $0.04 $0.075 $0.10 $0.074 $0.0525 $0.0542 $0.12 Weighted average exercise price ($) 26,500,000 5,094,179 1,535,714* 1,500,000 250,000 4,000,000 2,000,000 - - - - - - 40,879,893 0.182 - - - - - - - 1,000,000 1,000,000 4,000,000 5,537,314 5,714,286 4,000,000 21,251,600 0.073 (26,500,000) (5,094,179) (1,535,714) (1,500,000) - - - - - - - - - (34,629,893) 0.200 - - - - - - - - - - (598,030) - - (598,030) 0.053 - - - - 250,000 4,000,000 2,000,000 1,000,000 1,000,000 4,000,000 4,939,284 5,714,286 4,000,000 26,903,570 0.076 *Options were granted as free attaching options as part of a share placement. Number exercisable at end of year - - - - 250,000 4,000,000 2,000,000 - 1,000,000 4,000,000 4,939,284 5,714,286 4,000,000 25,903,570 0.076 The weighted average remaining contractual life of options outstanding at the end of the financial year is 2.14 years (2020: 0.63 years). (b) Recognised share based payment expense Options issued to directors and employees as incentive Options issued to brokers and advisors in lieu of cash for services provided Less amounts recognised within equity as a cost of capital raised Options issued for acquisition of exploration & evaluation assets Shares issued for acquisition of exploration & evaluation assets Less amounts capitalised within exploration & evaluation expenditure (i) (ii) (iii) (iii) 2021 $ 106,127 348,963 (348,963) 405,714 2020 $ 157,730 - - - 200,000 50,000 (605,714) (50,000) 106,127 157,730 Great Boulder Resources Limited – Annual Report 2021 50 (i) Options issued to directors and employees as incentive During the year, 5,000,000 options (2020: 6,000,000) were granted to directors and employees as incentive for services provided and expensed in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. The fair value of the services could not be reliably measured and therefore, a Lattice ESO model was used to determine the value of the options issued during the year ended 30 June 2021 and a Black-Scholes option pricing model for those issued during the year ended 30 June 2020. The inputs have been detailed below for each issue: Input Number of options Grant date Vesting date Expiry date (years) Underlying share price Exercise price Volatility Risk free rate Early exercise multiple Dividend yield Value per option Total fair value of options Share based payment expense recognised for the year ended 30 June 2020 Share based payment expense recognised for the year ended 30 June 2021 Tranche 1 (2019) 250,000 12/03/2019 12/03/2020 3.02 $0.14 $0.20 87.6% 1.60% N/A 0% $0.0659 $16,484 Tranche 2 (2020) 4,000,000 21/11/2019 02/12/2019 2.61 $0.056 $0.10 93.7% 0.72% N/A 0% $0.0236 $94,400 Tranche 3 (2020) 2,000,000 21/11/2019 30/06/2020 2.61 $0.056 $0.084 93.7% 0.72% N/A 0% $0.0259 $51,800 Tranche 4 (2021) 1,000,000 28/08/2020 28/08/2021 3.00 $0.047 $0.075 075 100% 0.29% 2.5 0% $0.0221 $22,100 Tranche 5 (2021) 4,000,000 18/11/2020 18/11/2020 2.62 $0.05 $0.074 100% 0.11% 2.5 0% $0.0219 $87,600 Total 11,250,000 $272,384 $11,530 $94,400 $51,800 - - $157,730 - - - $18,527 $87,600 $106,127 Tranche 4 – 1,000,000 options were issued to Daniel Doran, an employee of the Company. The options will vest 12 months from date of issue (28 August 2021) and are not subject to any vesting conditions or exercise conditions. Tranche 5 – 2,000,000 options were granted each to non-executive directors Melanie Leighton and Gregory Hall. The non-executive director options vest immediately on the date of issue and are not subject to any vesting conditions or exercise conditions. (ii) Options issued to brokers and advisors in lieu of cash for services provided During the year, 6,537,314 options (2020: nil) were issued to brokers and advisors in lieu of cash for capital raising services provided. An additional 4,000,000 options were issued subsequent to year end for services provided during the year ended 30 June 2021. Where the fair value of the services could not be reliably measured, a Lattice ESO model was used to determine the value of the options issued. Great Boulder Resources Limited – Annual Report 2021 51 The inputs have been detailed below for each issue: Input Number of options Grant date Vesting date Expiry date (years) Underlying share price Exercise price Volatility Risk free rate Early exercise multiple Dividend yield Value per option Total fair value of options *Issued subsequent to year end, on 16 July 2021. Tranche A (2021) 1,000,000 20/08/2020 20/08/2020 3.11 $0.053 $0.10 100% 0.27% 2.5 0% $0.0228 $22,800 Tranche B (2021) 5,537,314 23/03/2021 23/03/2021 3.02 $0.04 $0.0525 100% 0.11% 2.5 0% $0.0191 $105,763 Tranche C (2021*) 4,000,000 26/05/2021 26/05/2021 3.01 $0.11 $0.12 100% 0.10% 2.5 0% $0.0551 $220,400 Total 10,537,314 $348,963 Tranche A – On 28 August 2020, 1,000,000 options ($0.10, 30/09/2023) were issued for capital raising services provided to the Group. These options vested immediately. An expense of $22,800 was recognised within equity as a cost of raising. Tranche B – On 11 May 2021, 5,537,314 options ($0.0525, 31/03/2024) were issued for capital raising services provided to the Group. These options were subject to completion of the 23 March 2021 rights issue, so were valued on that date. These options vested immediately. An expense of $105,763 was recognised within equity as a cost of raising. Tranche C – On 16 July 2021, 4,000,000 options ($0.12, 31/05/2024) were issued for capital raising services provided to the Group. These options were subject to completion of the 26 May 2021 placement, so were valued on that date. These options vested immediately. An expense of $220,400 was recognised within equity as a cost of raising. (iii) Shares and options issued for acquisition of exploration & evaluation assets As disclosed in note 10, during the year the Company issued 5,714,286 fully paid ordinary shares and 5,714,286 attaching options to Zebina Minerals Pty Ltd (“Zebina”) as part-consideration for acquiring a 75% legal and beneficial interest in exploration licences E27/544, E27/588 and E27/622 (together the “Whiteheads Project”). The shares were issued at $0.035 per share, to the value of $200,000. A Lattice ESO model was used to determine the value of the options issued. The inputs have been detailed below: Input Number of options Grant date Vesting date Expiry date (years) Underlying share price Exercise price Volatility Risk free rate Early exercise multiple Dividend yield Value per option Total fair value of options Zebina Options 5,714,286 11/05/2021 11/05/2021 3.02 $0.12 $0.0542 100% 0.10% 2.5 0% $0.071 $405,714 Great Boulder Resources Limited – Annual Report 2021 52 In the prior year, 980,392 fully paid ordinary shares were issued to Zebina for the exclusive right to acquire the Whiteheads Project. The shares were issued at $0.051 per share, to the value of $50,000. 18. 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 19. REMUNERATION OF AUDITORS Remuneration of the auditor for: - Auditing and reviewing of financial reports - Tax services 20. KEY MANAGEMENT PERSONNEL DISCLOSURES (a) Directors 2021 $ 2020 $ (752,371) (0.35) (2,312,943) (1.92) 212,070,147 120,492,831 212,070,147 120,492,831 2021 $ 27,500 25,219 52,719 2020 $ 26,250 29,413 55,663 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 (Chairman) (Managing Director) (Non-Executive Director) (Non-Executive Director) (ceased 18 November 2020) (b) Company Secretary Melanie Ross (c) Details of Remuneration of Key Management Personnel: Short-term benefits Post-employment benefits Share based payments 2021 $ 350,083 28,057 87,600 465,740 2020 $ 374,750 30,400 146,200 551,350 Great Boulder Resources Limited – Annual Report 2021 53 21. RELATED PARTIES A company associated with Mr Hall, a director, Golden Phoenix International Limited was paid $54,750 (2020: $54,750) in directors and consulting fees as part of his remuneration. No amounts were owing as at 30 June 2021 (2020: $nil). A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, was paid $265,991 (2020: $432,363) for drilling services during the period to 18 November 2020, the date at which Mr Black ceased to be a director of Great Boulder. 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 $nil from EGMC (2020: $19,510). EGMC withdrew as a Joint Venture partner during the prior year. No amounts were receivable as at 30 June 2021 (2020: $nil). All payments were made at recognised commercial rates. 22. CASH FLOW INFORMATION (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 2021 $ 6,761,129 6,761,129 2020 $ 716,970 716,970 (b) Reconciliation of Net Cash used in Operating Activities to Operating Loss for the year Depreciation Share based payments Impairment of exploration and evaluation costs (excluding R&D tax incentive) Net cash flows from operating activities before change in assets and liabilities Change in assets and liabilities during the financial year: Trade and other receivables Trade and other payables Provisions Net cash outflow from operating activities 2021 $ (752,371) 56,357 106,127 2020 $ (2,312,943) 45,469 157,730 (16,982) 1,534,421 (606,869) (575,323) 234,907 46,188 13,590 (312,184) (31,461) 713 14,360 (591,711) Great Boulder Resources Limited – Annual Report 2021 54 (c) Non cash investing and financing activities During the current year, the Group issued 5,714,286 fully paid ordinary shares and 5,714,286 attaching options under an Option agreement. This has been recognised as exploration and evaluation with a value of $605,714 as disclosed in Note 10. During the prior year, 980,392 shares were issued under an Option agreement. This has been recognised as exploration and evaluation with a value of $50,000 as disclosed in Note 10. During the prior year, the Group entered into an office lease agreement which has been recognised as a right-of-use asset – office with a value of $133,169 as disclosed in Note 11. There were no other non-cash investing and financing activities during the year. 23. COMMITMENTS FOR EXPENDITURE Exploration Commitments Within one year Later than one year but not later than five years 24. CONTINGENT ASSETS AND LIABILITIES The Group has no contingent assets or contingent liabilities. 25. FINANCIAL RISK MANAGEMENT 2021 $ 763,920 - 763,920 2020 $ 635,395 - 635,395 The Group’s principal financial instruments comprise receivables, payables, cash and short-term deposits. The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management policy. The objective of the policy is to support the delivery of the Group’s financial targets while protecting future financial security. The main risks arising from the Group’s financial instruments are interest rate risk, credit risk and liquidity risk. The Group 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. 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. Great Boulder Resources Limited – Annual Report 2021 55 Risk Exposures and Responses (a) Interest rate risk exposure The Group is not exposed to interest rate risk. (b) Credit risk exposure Credit risk arises from the financial assets of the Group, which comprise deposits with banks and trade and other receivables. The Group’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 Group’s maximum exposure to credit risk in relation to those assets. The Group does not hold any credit derivatives to offset its credit exposure. The Group 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 Group 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 Group and the Group’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 Group 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 Group'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 2021 56 Weighted average interest rate 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ Remaining contractual maturities $ 2021 Non-derivatives Non-interest bearing Trade and other payables % - 496,871 - - Interest bearing Lease liability 12% 15,763 20,188 78,141 Total non-derivatives 512,634 20,188 78,141 - - - 496,871 114,092 610,963 2020 Non-derivatives Non-interest bearing Trade and other payables Interest bearing Lease liability - 241,553 - - - 241,553 12% 13,330 15,763 77,095 21,234 127,422 Total non-derivatives 254,883 15,763 77,095 21,234 368,975 26. EVENTS OCCURRING AFTER REPORTING DATE On 13 July 2021, the Company announced that it had exercised its option to acquire a 75% interest in the Side Well Project. Under the terms of the agreement, the Company paid total consideration of $350,000 to Zebina Minerals Pty Ltd, comprising of $175,000 cash, 2,194,403 fully paid ordinary shares, and 2,194,403 options at an exercise price of $0.1108 expiring 12 July 2024. The shares and options were issued on 16 July 2021. On 16 July 2021, the Company issued 110,676 fully paid ordinary shares to a creditor in lieu of cash. The fair value of the shares issued was $10,000. On 16 July 2021, the Company issued 4,000,000 options ($0.12 expiring 31 May 2024) to a broker for capital raising services provided during the year ended 30 June 2021. On 23 July 2021, the Group incorporated a wholly-owned subsidiary, GBR Side Well Pty Ltd. During the period 3-16 September 2021, the Company issued 1,964,769 fully paid ordinary shares upon the exercise of 1,964,769 options. Proceeds received upon the exercise of these options totalled $193,498. The details of which are included below: Option Details Exercise Date Number Exercised Exercise Price Proceeds Received ($) 5.25c options expiring 31/03/2024 7.5c options expiring 28/08/2023 10c options expiring 30/09/2023 12c options expiring 31/05/2024 10c options expiring 30/09/2023 12c options expiring 31/05/2024 03/09/2021 08/09/2021 08/09/2021 10/09/2021 16/09/2021 16/09/2021 373,769 201,000 350,000 760,000 50,000 230,000 1,964,769 $0.0525 $0.075 $0.10 $0.12 $0.10 $0.12 19,623 15,075 35,000 91,200 5,000 27,600 193,498 Great Boulder Resources Limited – Annual Report 2021 57 On 14 September 2021, the Group announced that it intends to demerge its 100% owned Yamarna Copper- Nickel-Cobalt Project into a dedicated ASX-listed battery metal focused vehicle, Cosmo Metals. More details about the demerger timetable and additional information will be announced to the market in due course. The impact of Coronavirus (COVID-19) pandemic is ongoing. It is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the State and Federal Governments, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. 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. 27. SUBSIDIARIES (a) Ultimate Controlling Entity Great Boulder Resources Limited is the ultimate controlling entity for the Group. (b) Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following wholly- owned subsidiary in accordance with the accounting policy described in Note 1. Name of entity GBR Whiteheads Pty Ltd (i) Principal place of business / Country of Incorporation Australia Class of shares Percentage ownership Ordinary 2021 % 100 2020 % - (i) GBR Whiteheads Pty Ltd was incorporated on 17 June 2021. The proportion of ownership interest is equal to the proportion of voting power held. There are no significant restrictions over the Group’s ability to access or use assets and settle liabilities. Great Boulder Resources Limited – Annual Report 2021 58 28. PARENT ENTITY INFORMATION Statement of Profit or Loss Loss after income tax Total Comprehensive Loss Statement of Financial Position Total current assets Total Assets Total current liabilities Total Liabilities Equity Contributed equity Reserves Accumulated losses Total Equity 2021 $ 2020 $ 752,371 752,371 2,312,943 2,312,943 7,187,232 17,126,621 548,080 646,409 764,752 6,555,028 276,740 390,832 21,705,412 11,486,407 369,684 1,102,066 (5,691,895) (6,237,266) 6,164,196 16,480,212 Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2021 (2020: nil). Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (2020: nil). Significant accounting policies The accounting policies of the parent entity are consistent with those of the Group, as disclosed in Note 1. Great Boulder Resources Limited – Annual Report 2021 59 13 Information Required by the Australian Securities Exchange SHAREHOLDER INFORMATION AS AT 24 SEPTEMBER 2021 (a) Spread of Holdings 1 1,001 5,001 10,001 100,001 & Over 1,000 5,000 10,000 100,000 - - - - Shareholders Units 54 231 358 1,098 498 2,239 15,210 826,455 2,918,007 47,511,364 305,964,773 357,235,809 (b) Less than marketable parcels Minimum $500.00 parcel at $0.205 per unit – 92 holders, holding 78,262 shares (total of 0.02% of issued capital). (c) The names of the twenty largest shareholders as at 24 September 2021 who between them held 35.01% of the issued capital are listed below: Number of Ordinary Shares % 3 1 2 CITICORP NOMINEES PTY LIMITED SYNDICATE MINERALS PTY LTD BLACK INTERNATIONAL PTY LTD BNP PARIBAS NOMINEES PTY LTD RETZOS HOLDINGS ZEBINA MINERALS PTY LTD MR RICHARD THOMAS HAYWARD DALY & MRS SARAH KAY DALY HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 4 5 M NARDO INVESTMENTS PTY LTD 6 7 8 MR DAVID ROTHWELL 9 10 11 MR MARK FRANCALANZA 12 MR MICHAEL KIPLING MAZALEVSKIS 13 MR SALVATORE DI VINCENZO SHAYDEN NOMINEES PTY LTD 14 15 MR DANIEL BERNARD CLOUGH "JAMELL CAPITAL PTY LTD 16 " 17 18 MASALAI HOLDINGS PTY LIMITED SAM GOULOPOULOS PTY LTD 19 20 MGL CORP PTY LTD 21,421,395 16,407,367 8,926,747 6,681,266 5,923,863 5,718,787 5,508,929 4,000,000 4,000,000 3,844,928 3,450,000 3,325,004 3,276,284 3,103,152 3,000,000 2,990,000 2,515,000 2,500,000 2,423,079 2,239,938 111,255,739 6.00% 4.59% 2.50% 1.87% 1.66% 1.60% 1.54% 1.12% 1.12% 1.08% 0.97% 0.93% 0.92% 0.87% 0.84% 0.84% 0.70% 0.70% 0.68% 0.63% 31.14% (d) Unquoted equity securities on issue as at 24 September 2021 was as follows: - - - - - - - - - - 1 Optionholder holding 250,000 options, exercise price $0.20, expiring 18 March 2022 1 Optionholder holding 4,000,000 options, exercise price $0.10, expiring 30 June 2022 1 Optionholder holding 2,000,000 options, exercise price $0.04, expiring 30 June 2022 2 Optionholders holding 4,000,000 options, exercise price $0.074, expiring 30 June 2023 1 Optionholder holding 1,000,000 options, exercise price $0.075, expiring 28 August 2023 1 Optionholder holding 1,000,000 options, exercise price $0.10, expiring 30 September 2023 3 Optionholders holding 4,565,515 options, exercise price $0.0525, expiring 31 March 2024 1 Optionholder holding 5,714,286 options, exercise price $0.0542, expiring 19 May 2024 3 Optionholders holding 3,010,000 options, exercise price $0.12, expiring 31 May 2024 1 Optionholder holding 2,194,403 options, exercise price $0.1108, expiring 16 July 2024. Great Boulder Resources Limited – Annual Report 2021 60 14 Corporate Directory Directors Gregory C Hall (Non-Executive Chairman) Andrew G Paterson (Managing Director) Melanie J Leighton (Non-Executive Director) Company Secretary Melanie Ross Principal Place of Business Level 1, 51 Colin Street West Perth WA 6005 Telephone: 08 9321 6037 08 9315 5004 Facsimile: Registered Office Level 1, 51 Colin Street West Perth WA 6005 Telephone: 08 9321 6037 08 9315 5004 Facsimile: Solicitors Blackwall Legal Level 26, 140 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 2021 61

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