Great Northern Minerals
A N N U A L R E P O R T
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals2020 Great Northern Minerals
Great Northern Minerals Limited
(previously Greenpower Energy Limited)
ABN 22 000 002 111
Consolidated Annual Report
For the Year Ended 30 June 2020
Contents
Chairman’s Letter
Directors’ Report
Consolidated Financial Statements
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
Additional Information for Public Listed Companies
Interest in Mining Tenements
Page
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74
DIRECTORS
SHARE REGISTRY
Mr Cameron McLean (CEO & Managing Director)
Computershare Investor Services Pty Ltd
Mr Simon Coxhell (Technical Director)
Level 11, 172 St Georges Terrace
Mr Kim Robinson (Non-Executive Chairman)
Perth WA 6000
Mr Simon Peters (Non-Executive Director)
Telephone: 1300 787 272
COMPANY SECRETARY
Miss Aida Tabakovic
REGISTERED OFFICE & PRINCIPAL PLACE OF
BUSINESS
Level 1, 33 Colin Street
WEST PERTH WA 6005
AUSTRALIA
Website: www.greatnorthernminerals.com.au
AUDITORS
William Buck Audit (WA) Pty Ltd
Level 3, 15 Labouchere Road
South Perth WA 6151
LEGAL ADVISORS
Nova Legal
Level 2, 50 Kings Park Road
West Perth WA 6005
STOCK EXCHANGE
Australian Securities Exchange Limited
ASX Code: GNM, GNMOA, GNMOB, GNMOF
Annual Report 2020 | Chairman’s Letter
Chairman’s Letter
On behalf of the Directors I am pleased to present Great
Northern Minerals 2020 Annual Report to shareholders
and would like to take this opportunity to welcome all new
shareholders and to thank our longer standing shareholders for
their support as the Company transitions to a successful gold
explorer.
The last 12 months has seen the Company strengthened at both
a corporate and technical level and this will continue to be an
key focus of the company as these underexplored and exciting
projects develop. In addition, after raising capital throughout
the year, your company now has the balance sheet to fund its
exploration programs at Camel Creek, Golden Cup and Big Rush
with the objective of expanding resources at all projects.
The addition of Simon Coxhell earlier in the year to the position
of Technical Director adds significant experience to the team.
Simon has already built an extremely capable team on site and
introduced a great deal of operational rigour.
Post financial year end your company completed a significant
reverse circulation drilling campaigns at Camel Creek and Big
Rush in what was the biggest program yet undertaken by your
company. The impressive results highlighted the significant
potential of these two projects with no shortage of follow up
targets both along strike and at depth.
Also of significant importance has been the early payout of the
remaining consideration to the vendor for 100% ownership of the
three assets, a transaction that was achieved at a 50% discount
for the Company.
Finally I would like to thank you all for your ongoing support
and again welcome aboard our new shareholders at an
exciting time for Great Northern Minerals. I wish to thank the
staff, management, contractors and my fellow directors for
their ongoing efforts. We are all committed to progressing the
company through prudent commercial activities and high quality
exploration for the benefit of all shareholders.
Kim Robinson
Chairman
1
Great Northern Minerals
Directors’ Report
Your directors present their Report on Great
Northern Minerals Limited (previously Greenpower
Energy Limited) (the “Company” or “GNM”) and
its controlled entities (the “Group”) for the financial
year ended 30 June 2020.
Directors
The names of Directors who held office during or
since the end of the year:
Mr Kim Robinson
Non-Executive Chairman
(Appointed 1 April 2020)
Mr Cameron McLean
CEO & Managing Director
Mr Simon Coxhell
Mr Simon Peters
Mr Gerard King
Mr Alistair Williams
Technical Director
(Appointed 1 April 2020)
Non-Executive Director
Non-Executive Chairman
(Resigned 1 April 2020)
Non-Executive Director
(Resigned 5 August 2019)
2
Annual Report 2020 | Directors’ Report Directors’ Qualifications and Experience
Kim Robinson
(Non-Executive Chairman)
Qualifications
-
Cameron McLean
(CEO & Managing Director)
Qualifications
-
Appointment Date 1 April 2020
Appointment Date 12 October
2018
Mr Robinson has over 35 years’ experience in mineral
exploration and mining having graduated from the
University of Western Australia in 1973 with a degree in
Geology. His experience is extensive including 10 years
as Executive Chairman of Forrestania Gold NL. During
Cameron McLean has more than 20 years’ experience
leading and managing a range of commercial activities,
including co-directing London business, iBase Limited in
the geo-technology sector and as CFO at Snowden Mining
Industry Consultants, Kagara Limited and Atrum Coal.
his time at Forrestania, Mr Robinson played a key role
Mr McLean has a background in accounting and finance
in the discovery and development of the Bounty Gold
with experience originating at Western Mining in Melbourne.
Mine, the development of the Mt McClure Gold Mine and
Mr McLean is the founder and major shareholder of the
the discovery of the Maggie Hays and Emily Ann nickel
mining investment platform, Mineral Intelligence. Through
sulphide deposits. Mr Robinson was also a Non-Executive
Mineral Intelligence, Mr McLean has facilitated over
Director of Jubilee Mines NL in the period leading up to the
$100M in mining transactions over the past 5 years. Mr
discovery and development of the Cosmos Nickel Mine.
McLean identified, secured and introduced the cobalt and
Mr Robinson was a founding Director of Kagara Ltd where
vanadium projects to the company through Ion Minerals Pty
he held the position of Executive Chairman for a period of
Ltd of which he is Managing Director.
12 years until February 2011. During this time, he oversaw
the development of Kagara’s North Queensland base
metal operations, the listing of Mungana Goldmines Ltd on
the ASX and the acquisition and development of the high
grade Lounge Lizard nickel deposit in Western Australia.
Mr Robinson also served as Managing Director at Energia
Minerals Ltd.
Interests in shares and options
Interest in shares and options
•
•
12,030,250 Ordinary Shares;
625,350 Listed Options exercisable at $0.022 on or
before 1 July 2023;
•
6,938,025 Listed Options exercisable at $0.01 on or
before 1 November 2022;
Other directorships in listed entities held in the previous
•
6,000,000 Listed Options exercisable at $0.01 on or
three years
before 1 November 2022.
Other directorships in listed entities held in the previous
three years
None
• Director of Pure Minerals Limited (30 November 2018 -)
3
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Simon Peters
(Non-Executive Director)
Simon Coxhell
(Technical Director)
Qualifications – BEng (Mining)
Qualifications – BSc, Masters
MAusIMM (Hons)
Appointment Date
6 December 2016
Qualifying
Appointment Date
1 April 2020
Mr Peters is a highly experienced mining executive
Simon Coxhell is a geologist with 34 years of diverse
and qualified mining engineer with more than 20 years
experience encompassing all aspects of the resource
experience in both hard and soft rock exploration, mine
sector including exploration, resource development,
development and operations. Over the past 10 years
metallurgical considerations and mining.
he has had corporate experience on ASX listed boards
in senior executive roles. He has held operational and
management positions across 3 continents (Africa,
Australia & Asia) covering all sections of the exploration &
mining development process, including large scale and
complex feasibility studies, stakeholder engagement,
permits and approvals.
Over the last 20 years he has had significant corporate
experience on ASX listed boards in senior executive
appointments and between 2016-2018 led Echo Resources
Limited (ASX: EAR) as Managing Director/CEO, elevating
and growing the company from an 8 million dollar market
capitalisation exploration focused company to an emerging
gold producer with a maximum market capitalisation of
Simon is currently a Partner of Sustainable Project Services
182 million dollars, centred on the re-establishment of the
which provides strategic & technical management
Bronzewing Gold Mine. Over a 3 year period he developed
consultancy advice to government, mining and agricultural
the gold resource base of Echo from 100,000 resource
sectors. Simon is also founding director of Murray Basin
ounces to a total resource base of 1.7 million ounces of
Resources a company focused on gold exploration in north
gold, and a maiden reserve of 800,000 ounces, for the
west Victoria.
He holds a bachelor of engineering (mining) with Honors
from Federation University Australia and an unrestricted WA
quarry managers certificate.
Interest in shares and options
2,397,461 Ordinary Shares;
•
•
Stage 1 and Stage 2 development option, in August 2018.
Northern Star purchased a 19% holding on market in late
2018 to become the largest shareholder and in August
2019 launched a successful takeover of Echo with an
implied value of $244 million.
Interests in shares and options
•
6,000,000 Listed Options exercisable at $0.01 on or
76,923 Listed Options exercisable at $0.18 on or
before 1 November 2022.
before 15 December 2021;
Other directorships in listed entities held in the previous
•
199,789 Listed Options exercisable at $0.022 on or
three years
before 1 July 2023;
• Non-Executive Director of Blaze International Limited
•
3,000,000 Listed Options exercisable at $0.01 on or
(5 April 2019 - )
before 1 November 2022;
• Managing Director of Echo Resources Limited (8
•
200,000 Unlisted Options exercisable at $0.30 on or
February 2016 - 2 October 2018)
before 27 October 2020.
Other directorships in listed entities held in the previous
three years
Managing Director of E2 Metals Limited (27 June 2017 - )
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Previous Company Directors (resigned during the financial year)
Gerard King
(Non-Executive Chairman)
Qualifications – LLB
Appointment Date 14 November 1985
Resignation Date1 April 2020
After graduating in law (LLB) from the University of Western
Alistair Williams
(Non-Executive Director)
Qualifications – BSc Economics, Diploma in Corporate
Treasury, FCA Chartered Accountant
Appointment Date 12 October 2018
Resignation Date 5 August 2019
Australia in 1963, Gerard commenced articles with (Sir)
Alistair Williams is an experienced London based finance
John Lavan (Lavan & Walsh) in Perth, being admitted as a
executive with a background in natural resources as a
solicitor in 1965, into the law firm partnership in 1966, and
result of management roles undertaken at BG Group and
became its senior partner in 1978. Under Gerard, Lavan &
Rio Tinto. His last major corporate role was Deputy CFO
Walsh eventually became Phillips Fox, Perth in 1985.
at BG Group where, in addition to running the Finance
Throughout his career, Gerard has practised in the
legal areas of commercial property, banking/finance,
revenue/tax, corporate compliance, and mining law.
He taught mortgage and other debt security drafting at
UWA law school for 5 years, joined the Taxation Institute
of Australia, and the Australian Mining and Petroleum
Lawyers Association and gave papers on revenue, strata
title, prospectuses, document drafting and other topics.
Gerard served on the Law Society of WA Council, and
its committees. He was involved in the management of
his law firm from 1968 to 1991 and attended two law firm
management courses at the University of New England.
Gerard has been a company director of Australasian
function for the Group, he was also Chair of the Investment
and Energy Trading and Risk Committees. Since leaving
the large corporate world in 2011, Mr Williams has pursued
a successful career as an entrepreneur and private investor
in early stage companies and has developed a diversified
portfolio of investments in natural resources, life sciences
and IM technology. In Australia, he has served as a Director
of Ion Minerals Pty Ltd since inception and has also been a
Director of Goldfield Argonaut Pty Ltd since 2015. Goldfield
Argonaut Pty Ltd recently concluded the sale of its
interest in the Mulwarrie gold exploration licence to Spitfire
Materials Limited.
Interest in shares and option
Shopping Centres Property Trust, 1977 to 1980, Australian
•
6,087,500 Ordinary Shares (held as at 5 August 2019)
Other directorships in listed entities held in the previous
three years
None
Mining Investments Ltd., 1983 to 2002, as well as other
public companies, and is currently Chairman of Astron
Limited, since 1985. He was Chairman of WA St. John
Ambulance Service Board 1987 to 1996, and WA State St.
John Council Chairman until 2017.
Interest in shares and options
•
•
16,578,520 Ordinary Shares (held as at 1 April 2020);
153,846 Listed Options exercisable at $0.18 on or
before 15 December 2021 (held as at 1 April 2020);
•
200,000 Unlisted Options exercisable at $0.30 on or
before 27 October 2020 (held as at 1 April 2020).
Other directorships in listed entities held in the previous
three years
Director of Astron Limited (5 November 1985 - ).
5
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Principal Activities
The principal activities of the Group during the financial year were:
•
The finalisation of an option agreement on the Golden Ant (Camel Creek and Golden Cup) and the Alphadale (Big Rush)
gold mines, which resulted in the purchase of a 100% interest (no royalty interests) in 11 mining leases comprising a
total of 3 gold projects located approximately 220 kilometres north west of Townsville in the Greenvale region of North
Queensland;
•
The acquisition of the surrounding exploration permits of the mining leases providing additional extensive exploration
ground, located along strike from the known gold deposits;
•
The completion of a maiden drilling program at Golden Cup and Big Rush leading to a number of very encouraging gold
intersections and the estimation of both longer term exploration targets and 2012 initial JORC compliant resources; and
•
Subsequent to the year end, a maiden drilling program at the Camel Creek Gold Project commenced comprising a total
of 18 RC drill holes for a total of 2,518 metres. Significant results were returned from every hole highlighting the potential
at Camel Creek and demonstrating the continuity of the gold mineralisation over an extensive strike length. Post the
drilling at Camel Creek the drill rig moved to Big Rush to follow up and expand the previous drilling program.
CAIRNS
Georgetown
CAMEL CREEK
Greenvale
BIG RUSH
TOWNSVILLE
GOLDEN CUP
QUEENSLAND
Figure 1: Camel Creek, Golden Cup and Big Rush Location Plan
NT
SA
WA
Brisbane
QLD
NSW
Vic
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
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Projects
Golden Ant Project Acquisition: North Queensland Gold Projects
During May 2019, Great Northern Minerals Limited entered into an option agreement
to acquire a 100% interest in three gold projects in North Queensland (Figure 1) which
had been previously mined by private earthmoving contractors and developers during
the mid-1980s and 1990s.
During this time period a large number of shallow oxide open pits at Camel Creek,
Golden Cup and Big Rush were mined and subject to heap leach processing (Figure
2). Estimated gold recovery from the heap leach operations was estimated at be
60-70% with the remnant heap leach pads potentially containing economic quantities
of remnant gold. Review and due diligence of the projects also outlined substantial
potential for the delineation of gold resources underneath the previously mined shallow
open pits, with a number of historical high grade gold drilling intercepts which had not
been followed up.
7
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Table 1: Historic Mining and Heap Leach Operations
Deposit
Camel Creek
Camel Creek Satellites
Golden Cup
Golden Cup Satellites
Big Rush
TOTAL
Ore Mined (tonnes)
Grade (g/t Au)
Ounces Mined
1,059,696
188,876
201,081
94,548
983,000
2,527,201
1.68
2.29
2.83
1.92
2.21
2.03
57,238
13,906
18,296
5,836
69,703
164,979
The original terms of the Heads of Agreement to acquire
12 months after the grant of Environmental Access
up to a 100% interest in the Golden Ant Project were as
in respect of the licences or 24 months after the
follows;
settlement; and
•
$20,000 cash option fee for a 60 day due diligence
• Consultancy fees of $10,000 per month for a 12 month
period;
period following the settlement.
•
$5,000 cash option fee to extend the due diligence
On 10 August 2020, the Company announced that a final
period for a further 30 days;
•
$50,000 in cash and $50,000 in GPP shares to be
issued upon decision to exercise the option;
•
$50,000 in cash and $100,000 in GPP shares to be
issued upon estimation of JORC compliant Measured
Mineral Resource of at least 100,000 ounces of gold at
the Project;
•
$1,500,000 in cash upon estimation of a JORC
compliant Measured Mineral Resource of at least
100,000 ounces of gold at the Project and either
settlement of a 100% ownership in the three projects
(no royalties) took place which was earlier than agreed.
The parties to the Heads of Agreement entered into a
deed of variation and mutually agreeing to reduce the
agreed deferred and further deferred consideration via
an early payment of $859,450, representing a discount
of approximately 50% to the existing deferred and further
deferred consideration totalling $1.732M and allowing
an accelerated drilling and development program to be
advanced.
8
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Figure 2: Camel Creek, Golden Cup and Big Rush Geological Location Plan
Figure 3: Golden Cup & Camel Creek Projects (325 square
Figure 4: Big Rush Project (300 square kilometres)
kilometres)
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals h
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Golden Cup and Big Rush Drilling Program: December 2019
In December 2019, a first pass reverse circulation (RC) drilling program at Golden Cup and Big Rush was completed by
Great Northern Minerals Limited. The aim of the program was to follow up and test a number of zones, where potential for
additional gold resources was predicted based on the review of historic data. A total of 8 RC holes for 1042 metres were
drilled at Big Rush targeting the Central Pit and a total of 8 RC holes for 639 metres were drilled at Golden Cup. Highlights
from the drilling program included the following significant intersections.
Big Rush: Significant Drill Results
Golden Cup: Significant Drill Results
• Hole BRRC1004: 5m @ 12.6 g/t Au from 92m
• Hole GCRC074:
7m @ 7.49 g/t Au from 38m
• Hole BRRC1006: 15m @ 2.4 g/t Au from 84m
• Hole GCRC075:
6m @ 2.9 g/t Au from 39m
• Hole BRRC1007: 28m @ 2.5 g/t Au from 83m
• Hole GCRC076:
5m @ 1.93 g/t Au from 33m
inc 15m @ 3.3 g/t Au from 83m
• Hole BRRC1008: 3m @ 14.5 g/t Au from 118m
• Hole BRRC1009: 24m @ 4.0 g/t Au from 97m and
2m @ 35.2 g/t Au from 113m
• Hole GCRC077:
6m @ 1.89 g/t Au from 29m
• Hole GCRC078:
9m @ 4.72 g/t Au from 35 m
The mineralised intercepts in general correspond to logged
intervals of quartz veining and elevated amounts of visual
• Hole BRRC1010: 7m @ 2.45 g/t Au from 88m
arsenopyrite, pyrite and stibnite. The assay results received
correspond in tenor to nearby drill holes completed by
previous holders of the project.
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
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Camel Creek Drilling
Post the reporting year end in July 2020 Great Northern
• Hole CCRC005:
4m @ 5.41 g/t Au from 63m
Minerals Limited commenced and completed its maiden
reverse circulation drilling program at Camel Creek, totalling
18 holes for 2,516 metres. This was the first systematic
deep drilling program completed under the shallow oxide
pits of the Camel Creek gold mineralized system. Previous
historic mining at Camel Creek had been conducted
over approximately 3.5 kilometres of strike and this initial
drilling program focused on an initial 700 metres of strike.
Encouragingly every drill hole intersected the interpreted
mineralized structure, with the better results summarized
below.
Camel Creek: Significant Drill Results
• Hole CCRC012:
24m @ 3.55 g/t Au from 58m
• Hole CCRC017:
8m @ 4.63 g/t Au from 85m
• Hole CCRC015:
9m @ 4.99 g/t Au from 109m
• Hole CCRC006:
4m @ 5.85 g/t Au from 88m
• Hole CCRC016:
10m @2.14 g/t Au from 69m
Encouragingly gold was encountered in every hole
establishing strike continuity over 700 metres, with
significant additional upside along strike and at depth.
The new holes drilled, the majority of which will require
follow up drilling, were all drilled into the primary zone
below the base of oxidation with hole depths ranging from
65 to 197 metres, with an average depth of 140 metres.
Two parallel zones were intersected in a number of holes
highlighting multiple opportunities for further testing. An
increase in quartz veining and sulphide content in general
accompanies the anomalous intersections. A follow up RC
drilling program is in the planning stages.
No deep drilling has ever been completed at Camel Creek
• Hole CCRC007:
8m @ 3.27 g/t Au from 147m
previously and this systematic program highlighted the
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Figure 5: Plan Display - Camel Creek Drilling
continuity of the mineralisation underneath the previously
mined shallow open pits and demonstrated considerable
additional potential.
Interpretation of the results has suggested the presence
of an untested target, termed the “Hinge Zone, where a
number of the parallel structures coalesce. No previous
mining has been conducted in this area and a plunging ore
shoot is interpreted. The location coincides with a contact
zone between sandstone and the siltstone/shale mylonite
zone and is in the vicinity (and to the south) of the higher
grades returned. This represents a new target of future drill
testing.
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
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Heap Leach Pads
In December 2019, the Company reported results from
dumps consist of uncrushed oxide ore material whilst the
sampling of heap leach dumps at the Company’s Golden
Big Rush heap leach dump material was crushed prior to
Ant Projects, including Camel Creek, Golden Cup and Big
being stacked on the heap. The grab samples were taken
Rush.
as a first pass measure to assess if any gold remained in
Fifteen grab samples were taken from the heap leach
the heap leach dumps.
dumps at Big Rush (6 samples), Camel Creek (5 samples)
These assay results from the remnant heap leach pads are
and Golden Cup (4 samples). Thirteen grab samples were
not considered necessarily representative of the estimated
hand-picked quartz vein material taken from the surface
grade of the heap leach pads, but do provide support
of the heap leach dumps while two samples (BRLPR003
for additional sampling and analytical work to assess the
& BRLPR006 from Big Rush) were non-selective samples
potential at reprocessing portions or all of the historic pads
which included siltstone and shale fragments as well as
and stockpiles.
quartz vein material. The grab samples taken ranged
between 2 – 3 kg and were analysed at ALS Laboratories in
Townsville by Fire Assay.
Ore sorting technologies may be particularly well suited
to upgrading this material, on the basis that more gold is
located in the quartz rich components (lighter coloured) of
The three heap leach dumps formed part of open pit gold
the heap leach pads and systematic drilling (or trenching)
mining operations in the late 1980s to mid-1990s with gold
and analysis is now required to fully assess their economic
recovered from the heap leach dumps by cyanidation of
potential, This work at Big Rush will commence in
oxide ore. The Golden Cup and Camel Creek heap leach
September 2020.
Table 2: Assay results from selective grab sampling of heap leach dumps, Golden Ant Projects
13
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Leach Dump Location
Sample ID
Big Rush
Big Rush
Big Rush
Big Rush
Big Rush
Big Rush
Golden Cup
Golden Cup
Golden Cup
Golden Cup
Camel Creek
Camel Creek
Camel Creek
Camel Creek
Camel Creek
BRLPR001
BRLPR002
BRLPR003
BRLPR004
BRLPR005
BRLPR006
GCLPR001
GCLPR002
GCLPR003
GCLPR004
CCLPR001
CCLPR002
CCLPR003
CCLPR004
CCLPR005
Easting
264958
264870
264875
265000
265053
265058
358580
358586
358589
358525
347826
347957
347911
347835
347794
14
Northing
7851930
Map Grid
Au g/t
GDA94 Zone 55
7851813
GDA94 Zone 55
7851818
GDA94 Zone 55
7851757
GDA94 Zone 55
7852009
GDA94 Zone 55
7852014
GDA94 Zone 55
7909440
GDA94 Zone 55
7909446
GDA94 Zone 55
7909449
GDA94 Zone 55
2.04
0.81
0.2
0.16
0.48
0.2
3.59
0.92
4.43
7909329
GDA94 Zone 55
11.35
7918085
GDA94 Zone 55
7918350
GDA94 Zone 55
7918336
GDA94 Zone 55
7918367
GDA94 Zone 55
7918423
GDA94 Zone 55
1.43
3.69
0.59
0.39
1.45
Annual Report 2020 | Directors’ ReportGreat Northern Minerals JORC 2012 Resource Estimates
Exploration Targets
During the reporting year Great Northern Minerals Limited completed work designed to evaluate “Exploration Targets” at its
three gold projects, and also following the initial drilling programs and the validation of the historic drill results was able to
release an initial inferred resource estimate at Golden Cup and Big Rush.
Table 3: Golden Ant Project – Exploration Targets from surface down to 100m vertical depth
Project
Tonnes
Grade (g/t Au)
Ounces (Gold)
Minimum
Maximum
Minimum
Maximum
Minimum
Maximum
Golden Cup
450,000
750,000
Camel Creek
500,000
1,000,000
Big Rush
1,800,000
3,600,000
3.5
2
2
5.5
3.5
3
50,643
32,154
115,756
132,637
112,540
347,267
The potential quantity and grade of the defined Exploration Target is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral
Resource.
On 10 December 2019, the Company announced a JORC resource estimate for Golden Cup of 256,000 tonnes at 3.6 g/t
Au for approximately 30,000 ounces of contained gold, using a 0.75g/t gold cut-off grade and on 7th February 2020 a gold
mineral resource at Big Rush of 558,322 tonnes at 2.62 g/t Au for 47,006 ounces of contained gold was estimated above a
0.75 g/t Au cut-off grade and below the previously mined Central Pit. Both the Golden Cup and Big Rush mineral resource
estimate were independently estimated by experienced resource geologist Andrew Beaton of AKB Mining Geology Services
Pty Ltd (“AKB”), located in Townsville.
The Company views these as initial resource estimates with additional drilling likely to increase both the size of the deposits
and to also upgrade the JORC classification of the deposits.
Table 4: Golden Ant Project: JORC 2012 Resources
Project
Golden Cup
Big Rush
TOTAL
Tonnes
256,504
558,322
814,826
Grade (g/t Au)
Ounces (Gold)
3.60
2.62
2.93
29,721
47,006
76,727
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals k
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2020 Outlook
Following the purchase of the 100% interest in the North
systematic large diameter aircore program is planned to
Queensland Gold Projects, the Company commenced a
collect representative samples of the remnant heap leach
maiden drilling program at Camel Creek (results reported
pad to assess its economic potential. Various screening
above) and following the completion of the Camel Creek
and size analysis is planned to accurately identify any
drilling the drill rig was mobilized to Big Rush.
potential size fraction which can be readily screened
and beneficiated to obtain a higher grade component of
the heap leach pad. The opportunity to use and test for
advanced ore sorting technologies to upgrade the material
into higher grade fractions is also being assessed.
A large RC program at Big Rush commenced in the first
week of August 2020, and was expected to encompass
approximately 20 RC holes for 5200 metres of drilling.
The drilling was designed to test at depth a number of
potential mineralized zones interpreted to exist below the
Central, Southern and Northern pits previously mined in
the early 1990s.These pits collectively extend over two
kilometres of strike, and the drilling is designed to test for
extensions at depth and along strike. In addition, samples
for metallurgical test work will be collected for initial sighter
tests to determine optimum processing opportunities. A
16
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Competent persons statement
The information in this report that relates to the Mineral
Resource estimate is based on information compiled
by Mr Andrew Beaton. Mr Beaton is a Member of the
Australasian Institute of Mining and Metallurgy and is a part
time consultant to Great Northern Minerals Ltd. Mr Beaton
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Beaton consents
to the inclusion in the report of the matters based on their
information in the form and context in which it appears.
The information in this report that relates to Exploration
Results is based on information compiled under the
supervision of Simon Coxhell, the Technical Director of
Great Northern Minerals Limited. Mr Coxhell is a member
of the Australasian Institute of Mining and Metallurgy and
has sufficient experience of relevance to the styles of
mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves.” Mr Coxhell
consents to the inclusion in this report of the matters based
on his information in the form and context in which they
appear.
Corporate
• On 5 August 2019, Alistair Williams resigned as a Non-
Executive Director;
• On 15 August 2019, the Company announced that it
had exercised the option to the Heads of Agreement
with Q-Generate Pty Ltd, to acquire the former gold
producing mines of the Golden Ant Project in North
Queensland;
• On 19 August 2019, David Peterson resigned
as Company Secretary and Aida Tabakovic was
appointed as the Company Secretary;
agreement of Ion Minerals Pty Ltd, for the Lincoln
Springs project was terminated.
•
Following the Company’s General Meeting held on
18 October 2019 and ASIC approval, the Company
changed its name to Great Northern Minerals Limited,
and it’s ASX ticker code to GNM, effective from 27
November 2019;
• On 28 October 2019, the Company consolidated its
issued capital on a 10:1 basis;
• On 25 November 2019, the Company announced that
it has signed a Heads of Agreement (HoA) with private
exploration company Gold Explorer Pty Ltd to earn
an 80% interest in exploration permits EPM 26632
& 26652, located 140 km Northwest of Townsville in
Queensland. In April 2020, the Company withdrew
from the Joint Venture Agreement;
• On 7 February 2020, the Company announced a
maiden JORC-compliant mineral resource estimate for
the Central Lode at the Big Rush Gold Mine in North
Queensland. A gold mineral resource of 558,322
tonnes at 2.62 g/t Au for 47,006 ounces for GNM
resource now to total 77,000 ounces;
• On 21 February 2020, the Company announced that it
has entered into a Deed of Surrender and Release with
GCC Methane Pty Ltd of its 1.5% wellhead gas royalty
to be derived from gas sales from WA Exploration
Permit EP447 for surrender consideration in the
amount of $125,000 (exclusive of GST). Both parties
have agreed to terminate the Royalty Deed and to fully
release each other from all claims, obligations and
undertakings arising under the Royalty Deed;
• During April 2020, the Company announced that it
has executed a Heads of Agreement with NorthX
Pty Ltd for an EPM application JV exploration permit
surrounding Company’s current Camel Creek and
Golden Cup Projects;
• On 1 April 2020, Mr Gerard King resigned from his
position as Non-Executive Chairman, on the same
date Mr Kim Robinson was appointed as the incoming
Non-Executive Chairman and Mr Simon Coxhell as a
Technical Director;
• During the year, Great Northern Minerals Limited
• At the 12 May 2020 General Meeting of the
(formerly Greenpower Energy Limited) acquisition
shareholders a total of 21,000,000 GNMOF Listed
17
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Directors Options to Messers McLean, Robinson,
$859,450, representing a discount of approximately
Coxhell and Peters were approved and issued with
50% to the existing deferred and further deferred
the purpose being a performance linked incentive
consideration totalling $1.732M which completes Great
component in the remuneration package (being for
Northern’s 100% ownership of the Golden Ant Project.
nil consideration) for the Board of Directors and to
motivate and reward performance in their respective
roles as Directors;
• On 4 September 2020, the Company completed
a placement via issuance of 80,521,786 fully paid
ordinary shares, raising $1.52 million. The funds raised
•
The impact of the Coronavirus (‘COVID-19’) pandemic
will be utilised to accelerate drilling at Company’s
is ongoing for the consolidated entity up to 30 June
Queensland gold projects and for general working
2020, it is not practicable to estimate the potential
capital.
impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent
on measures imposed by the Australian Government
and other countries, such as maintaining social
distancing requirements, quarantine, travel restrictions
and any economic stimulus that may be provided;
• During the financial year, the Company spent
$1,321,927 on exploration expenditure.
Governance Arrangements
•
The Company also received commitments and support
from Company Directors who collectively subscribed
for $100,000 worth of New Shares, which are subject
to shareholder approval at Company’s upcoming
2020 Annual General Meeting to be convened in due
course.
•
The impact of the Coronavirus (‘COVID-19’) pandemic
is ongoing for the consolidated entity up to 30 June
2020, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent
The Company seeks to ensure the reporting of Mineral
on measures imposed by the Australian Government
Resources and Ore Reserves is in accordance with
and other countries, such as maintaining social
Industry best practice and Listing Rules. All current Mineral
distancing requirements, quarantine, travel restrictions
Resources and Ore Reserves have been compiled by
and any economic stimulus that may be provided.
independent consultants recognised for their expertise
in the estimation of coal resources and reserves. The
estimates have been reviewed by an independent
consultant considered to be a Competent Person under
the JORC Code 2012 to ensure that the resource reports
comply with the listing rules.
Matters Subsequent to the end of the Financial Year
Likely developments and expected results of operations
Further information, other than as disclosed in this
report, about likely developments in the operations of the
Company and the expected results of those operations
in future periods has not been included in this report as
disclosure of this information would be likely to result in
There are no matters or circumstances which have arisen
unreasonable prejudice to the Group.
since the end of the year which will significantly affect, or
may significantly affect, the state of affairs or operations of
Non Audit Services
the reporting entity in future financial years other than the
There were no non audit services provided by the auditors
following:
• On 10 August 2020, the Company announced that
it had signed a deed of variation to the Heads of
during the year (2019: Nil).
Auditors Independence Declaration
Agreement to accelerate the completion of 100%
The lead auditors’ independence declaration for the year
ownership of the North Queensland gold projects.
ended 30 June 2020 has been received and can be found
The Parties to the Heads of Agreement have mutually
on page 25 of the financial report. The auditor William Buck
agreed to reduce the agreed deferred and further
Audit (WA) Pty Ltd continues in office in accordance with
deferred consideration via an early cash payment of
Section 327 of the Corporations Act 2001.
18
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Environmental Regulations
The Group’s operations to date are not regulated by any
significant environmental regulation under the law of
the Commonwealth or of a state or territory. The Group
must abide by the Environmental Protection Act 1994 of
Queensland under which there are a number of regulations
relevant to mining operations in that state. The Directors
The Directors are committed to carefully utilising current
resources, reviewing potentially markets for output, partners
and other funding initiatives.
Meeting of Directors
During the financial year, 11 directors’ meetings were held.
Attendances by each director during the year were as
have considered compliance with the National Greenhouse
follows:
and Energy Reporting Act 2007 which requires entities to
report on annual greenhouse gas emissions and energy
use. For the measurement period 1 July 2019 to 30 June
2020 the directors have assessed that there are no current
reporting requirements but may be required to do so in the
future.
Dividends Paid or Declared
No dividends were paid or declared since the start of the
financial year (2019: Nil).
Company Secretary
Directors’ Meetings
Eligible to
attend
Number
attended
Mr Gerard King
Mr Cameron McLean
Mr Simon Peters
Mr Simon Coxhell
Mr Kim Robinson
Mr Alistair Williams
8
11
11
3
3
1
8
11
11
3
3
1
The key management personnel of the Group consisted of
Mr David Peterson was appointed as the Company
the following directors and other persons:
Secretary on 1 January 2019 and resigned on 19 August
• Gerard King (Non-Executive Chairman) Resigned 1
2019.
April 2020
Miss Aida Tabakovic was appointed as the Company
• Simon Peters (Non-Executive Director)
Secretary on 19 August 2019. Miss Tabakovic has over
11 years’ experience in the accounting profession. She
holds a double degree in Accounting and Finance and
• Kim Robinson (Non-Executive Chairman) Appointed 1
April 2020
a Postgraduate Degree in Business Law. Miss Tabakovic
• Alistair Williams (Non-Executive Director) Resigned 5
provides services to a number of ASX listed companies
August 2019
specialising in financial accounting and reporting and
corporate compliance. Miss Tabakovic has also been
involved in listing a number of junior exploration companies
• Cameron McLean (CEO & Managing Director)
• Simon Coxhell (Technical Director) Appointed 1 April
on the ASX.
Business Review
Operating Results
During the financial year, the Group recorded a
consolidated loss of $3,336,423 (2019: $3,052,814) after
providing for income tax. The expenditure reflected the
exploration activities during the year at the Group’s Golden
2020
Remuneration Report (AUDITED)
The information provided in this remuneration report
has been audited as required by Section 308(3C) of the
Corporations Act 2001. This report details the nature and
amount of remuneration for each director of Great Northern
Minerals Limited, and for the executives of the Group.
Remuneration Policy
Ant Project and its Deed of Surrender and Release of its
Remuneration levels for the executives are competitively set
wellhead Gas Royalty.
to attract the most qualified and experienced candidates,
taking into account prevailing market conditions and the
19
Annual Report 2020 | Directors’ ReportGreat Northern Minerals individual’s experience and qualifications. During the
of their salary to increase payments towards
period, the Group did not have a separately established
superannuation.
remuneration committee. The Board is responsible for
determining and reviewing remuneration arrangements
for the executive and non-executive Directors.
• All remuneration paid to directors and executives
is valued at the cost to the Group and expensed.
Shares allocated to directors and executives are
The remuneration policy of Great Northern Minerals
valued as the difference between the market price
Limited has been designed to align director and
of those shares and the amount paid by the director
executive objectives with shareholder and business
or executive. Options are valued using appropriate
objectives by providing a fixed remuneration component
methodologies.
for short-term incentives and offering specific long term
incentives, based on key performance areas affecting
the Group’s financial results. The board of Great Northern
Minerals Limited believes the remuneration policy to be
appropriate and effective in its ability to attract and retain
the best executives and directors to run and manage
the Group, as well as create goal congruence between
directors, executives and shareholders.
•
The board policy is to remunerate non-executive
directors at market rates for comparable companies
for time, commitment and responsibilities. The
board determines payments to the non-executive
directors and reviews their remuneration annually,
based on market practice, duties and accountability.
Independent external advice is sought when
required. No such advice was obtained during
The board’s policy for determining the nature and amount
the year. Fees for non-executive directors are not
of remuneration for the board members and senior
linked to the performance of the Group. However, to
executives of the Group is as follows:
align directors’ interests with shareholder interests,
•
The remuneration policy, setting the terms and
the directors are encouraged to hold shares in the
conditions for the executive directors and other
Company and can participate in the employee
senior executives was developed by the board
option plan.
and legal advisors. All executives receive a base
salary (which is based on factors such as length of
Non-Executive Directors Remuneration
service and experience) and superannuation where
applicable. The board reviews executive packages
annually by reference to the Group’s performance,
executive performance and comparable information
from industry sectors and other listed companies in
similar industries.
•
The board may exercise discretion in relation
to approving incentives, bonuses and options.
The policy is designed to attract and retain the
high calibre of executives and reward them for
performance that results in long term growth in
shareholder wealth.
•
Executives will also be entitled to participate in future
employee share and option arrangements.
•
The executive directors and executives receive a
superannuation guarantee contribution required
by the government, which is currently 9.5%, and
do not receive any other retirement benefits.
Some individuals may choose to sacrifice part
All Non-Executive Directors are entitled to receive
$40,000 per annum for their roles as Directors of the
Company. During the year the Chairman’s remuneration
was amended to $50,000 per annum (2019: $120,000
per annum).
The Company’s Constitution provides that the
remuneration of Non-Executive Directors will not be more
than the aggregate fixed sum determined by a general
meeting. Before a determination is made by the Company
in a general meeting, the aggregate sum of fees payable
by the Company to the Non-Executive Directors is a
maximum of $200,000 per annum, as approved at
the 2018 Annual General Meeting. Summary details of
remuneration of the Non-Executive Directors are provided
in the table below. The remuneration is not dependent on
the satisfaction of a performance condition.
Directors are entitled to be paid reasonable travelling,
accommodation and other expenses incurred in
consequence of their attendance at meetings of Directors
20
Annual Report 2020 | Directors’ ReportGreat Northern Minerals and otherwise in the execution of their duties as Directors.
Share Based Compensation
During the year, a total of 21,000,00 listed options (2019:
nil) were granted to directors of Great Northern Minerals
Limited as approved by shareholders, as a cost effective
and efficient way to incentivise and reward the directors as
opposed to alternative forms of incentives. No additional
options over shares in Great Northern Minerals Limited
were granted during the year. The options issued during
the 2020 financial year were issued to provide long term
incentives for executives and consultants to deliver long
term shareholder returns.
During the year no ordinary shares in the Company (2019:
Nil) were issued as a result of the exercise of remuneration
options to directors of Great Northern Minerals Limited or
other key management personnel of the group.
Additional information
No performance-based bonuses have been paid to key
management personnel during the financial year. It is the
intent of the board to include performance bonuses as
part of remuneration packages when mine production
commences.
A Director may also be paid additional amounts as fees
or as the Directors determine where a Director performs
extra services or makes any special exertions, which in the
option of the Directors are outside the scope of the ordinary
duties of a Director.
Other Executives Remuneration
Mr Cameron McLean
CEO & Managing Director (appointed 12 October 2018)
Mr McLean’s employment terms are governed by a Service
Agreement. The terms of the agreement can be terminated
by either party providing three months written notice. Mr
McLean is entitled to receive Director’s Fee of $200,000
per annum (exclusive of statutory superannuation).
Mr Simon Coxhell
Technical Director (appointed 1 April 2020)
Mr Coxhell’s employment terms are governed by a Service
Agreement. The terms of the agreement can be terminated
by either party providing three months written notice. Mr
Coxhell is entitled to receive Director’s Fee of $200,000 per
annum (exclusive of statutory superannuation).
On termination, the Executives are entitled to be paid those
outstanding amounts owing to the Executives for the period
up until the Termination Date. The Executives do not have
any entitlement to any payment relating to any period after
the Termination Date.
Subject to the ASX Listing Rules and the Corporations Act
2001, if the appointment of the Executive is terminated as a
result of a change in control of the Company, the Company
will pay to the Executive three months’ worth of Executive
Service Fees as liquidated damages for the Executive’s
loss of engagement. If the Corporations Act 2001 or the
ASX Listing Rules restricts the amount that can be paid
to the Executive on termination to an amount less than
that calculated, then the amount can be paid under the
Corporations Act 2001 and the ASX Listing Rules without
approval of the Company’s shareholders.
21
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Details of Remuneration
Details of remuneration of the directors and key management personnel of the group are set out below:
Post-
Short-term
employment
Benefits
Benefits
Share-based Payments
Cash fees
Super-
and salary
annuation
Equity
Options/
Rights (vi)
Share-based
Payments as
a percent-
age of Re-
Total
muneration
Year
$
$
$
$
$
%
Perfor-
mance
Related
%
Non-Executive Directors
Gerard King (i)
2020
Kim Robinson (ii)
Simon Peters
Alistair Williams (iii)
Matthew Suttling (iv)
Sub-Total Non-
Executive Directors
Executive Directors
Cameron McLean
Simon Coxhell (v)
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
65,753
120,000
12,500
-
50,000
48,658
9,167
35,416
-
66,500
137,420
270,574
187,500
150,000
37,500
-
Sub-Total Executives
2020
225,000
2019
2020
2019
150,000
362,420
420,574
6,247
-
-
-
-
-
-
-
-
-
6,247
-
17,812
14,250
3,562
-
21,374
14,250
27,621
14,250
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
72,000
120,000
13,080
25,580
-
6,540
-
-
-
-
-
-
56,540
48,658
9,167
35,416
-
66,500
-
-
51.13
-
11.57
-
-
-
-
-
19,620
163,287
-
-
270,574
-
13,080
218,392
-
164,250
13,080
54,142
-
-
5.99
-
24.16
-
26,160
272,534
-
-
164,250
-
45,780
435,821
-
434,824
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Mr King resigned as a Non-Executive Chairman on 1 April 2020.
Mr Robinson was appointed as a Non-Executive Chairman on 1 April 2020.
Mr Williams resigned as a Non-Executive Director on 5 August 2019.
Mr Suttling resigned as a Non-Executive Director on 12 October 2018.
Mr Coxhell was appointed as a Technical Director on 1 April 2020.
Value of options were calculated using Black-Scholes Model.
22
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
The following table provides employment details of
Energy Limited) acquisition of Ion Minerals Pty Ltd.
persons who were, during the financial year, members of
On 13 November 2019, the Company fully settled
key management personnel of the Group. The table also
the balance outstanding of $13,395. The terms of the
illustrates the proportion of remuneration that was fixed and
transaction were on a no interest basis. Balance owing
at risk.
to Alistair Williams as at 30 June 2019 was Nil.
• During the financial year, Mineral Intelligence Pty Ltd, a
Company which Managing Director, Cameron McLean
has an interest in, loaned $11,000 to Ion Minerals Pty
Ltd. The terms of the transaction were on a no interest
basis. The balance outstanding and payable to Mineral
Intelligence Pty Ltd by Ion Minerals Pty Ltd as at 30
June 2019 is $11,000. Subsequent to the year end, the
funds are yet to be repaid to Mineral Intelligence Pty
Ltd.
• During the financial year, Mineral Intelligence Pty
Ltd, a Company which Managing Director Cameron
McLean has an interest in, was loaned by Great
Northern Minerals Limited (previously Greenpower
Energy Limited) an amount of $2,594. The terms of the
transaction were on a no interest basis. The balance
payable by Mineral Intelligence as at 30 June 2019 was
$2,594. Subsequent to the year end, the funds are yet
to be repaid from Mineral Intelligence Pty Ltd.
Directors
Fixed
At Risk
Remuneration
Long Term
Gerard King
Cameron McLean
Alistair Williams
Simon Peters
Simon Coxhell
Kim Robinson
%
100
100
100
100
100
100
Remuneration %
-
-
-
-
-
-
Other transactions with Key Management Personnel
There were no Key Management personnel related party
transactions during the current financial year except for:
2020
• During the financial year, Mineral Intelligence Pty Ltd, a
Company which Managing Director Cameron McLean
has an interest in, was loaned by Great Northern
Minerals Limited an amount of $2,873. The terms of the
transaction were on a no interest basis. The balance
payable by Mineral Intelligence to Great Northern
Minerals Limited as at 30 June 2020 was $5,467.
Subsequent to the year end, the funds are yet to be
repaid from Mineral Intelligence Pty Ltd.
• During 2019 financial year, Mineral Intelligence Pty
Ltd, a Company which Managing Director, Cameron
McLean has an interest in, loaned $11,000 to Ion
Minerals Pty Ltd. The terms of the transaction were on a
no interest basis. The balance outstanding and payable
to Mineral Intelligence Pty Ltd by Ion Minerals Pty Ltd
as at 30 June 2020is $11,000. The funds are yet to be
repaid to Mineral Intelligence Pty Ltd.
2019
• During the financial year, Ion Minerals Pty Ltd repaid
the outstanding loan balance it had owing to Director,
Alistair Williams, which was the balance brought over
from previous period and was still owing upon Great
Northern Minerals Limited’s (previously Greenpower
23
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Key Management Personnel Shareholdings
The number of ordinary shares in Great Northern Minerals Limited held by each key management person of the Group during
the financial year is as follows:
30 June 2020
Balance at begin-
ning of year
Consolidation of
issued capital (iv)
Other changes
during the
period (v)
Balance at resig-
nation date
Balance at end of
year
Directors
Gerard King (i)
Cameron McLean
Alistair Williams (ii)
Simon Peters
Simon Coxhell (iii)
Kim Robinson (iii)
165,785,208
(149,206,688)
-
16,578,520
-
62,535,000
(56,281,500)
5,776,750
-
12,030,250
51,500,000
-
1,228,846
(17,980,962)
9,375,000
19,149,577
-
-
-
-
-
-
60,875,000
-
-
-
-
2,397,461
-
-
281,049,054
(223,469,150)
34,301,327
77,453,520
14,427,711
(i)
(ii)
(iii)
(iv)
(v)
Mr King resigned on 1 April 2020.
Mr Williams resigned on 5 August 2019.
Messrs Coxhell and Robinson were appointed on 1 April 2020.
On 28 October 2019, the Company consolidated its issued capital on 10:1 basis.
On-market acquisitions, participation in Share Purchase Plan (’SPP) and Non-Renounceable Rights Issues.
Options over Equity Instruments Granted as Compensation
Details of Options over ordinary shares in the Company that were granted as $Nil consideration compensation to Key
Management Personnel during the 2020 (2019: Nil) financial year are as follows:
Directors
Grant Date
Number
Fair Value per
Exercise Price
Expiry Date
Granted
Option ($)
($)
Number
Vested
Cameron McLean
12/05/2020
6,000,000
Simon Peters
12/05/2020
3,000,000
Kim Robinson
12/05/2020
6,000,000
Simon Coxhell
12/05/2020
6,000,000
0.00218
0.00218
0.00218
0.00218
0.01
0.01
0.01
0.01
01/11/2022
6,000,000
01/11/2022
3,000,000
01/11/2022
6,000,000
01/11/2022
6,000,000
The options have been valued using Black Scholes methodology, the Black Scholes assumptions and details are outlined
below:
Options
Number of options in series
21,000,000
Underlying share price ($)
0.005
Exercise price ($)
Expected volatility (%)
Option life
Expiry date
0.01
100
2 years
1 November 2022
Dividend yield (%)
Risk free interest rate (%)
Nil
0.54
24
Annual Report 2020 | Directors’ ReportGreat Northern Minerals Key Management Personnel Options Holdings
The number of options over ordinary shares held during the year by each Key Management Personnel is as follows:
Opening
Balance
Granted
during the
period
Exercised
during the
period
Other chang-
es during the
period
Balance
at end of
period
Vested and
Exercisable
Vested and
Un-exercis-
able
Gerard King (i)
2,769,230
-
Cameron McLean
Alistair Williams (ii)
-
-
6,000,000
-
Simon Peters
2,769,230
3,000,000
Simon Coxhell (iii)
Kim Robinson (iii)
-
-
6,000,000
6,000,000
5,538,460
21,000,000
(i) Mr King resigned on 1 April 2020.
(ii) Mr Williams resigned on 5 August 2019.
-
-
-
-
-
-
-
(2,415,384)(iv)
353,846
353,846
1,563,375(v)
7,563,375
7,563,375
-
-
-
(2,292,518)(iv)
3,476,712
3,476,712
-
-
6,000,000
6,000,000
6,000,000
6,000,000
(3,144,527)
23,393,933
23,393,933
-
-
-
-
-
-
(iii) Messrs Coxhell and Robinson were appointed on 1 April 2020.
(iv) On 28 October 2019, the Company consolidated its issued capital on 10:1 basis.
(v) Participation in Non-Renounceable Rights Issue per Prospectus dated 1 November 2019; participation in Non-
Renounceable Rights Issue per Prospectus dated 25 March 2020; Directors’ Options as approved at General Meeting
held 12 May 2020.
No options have been granted to the directors or KMP since the end of the financial year. Options granted carry no dividend
or voting rights. When exercisable, each option is convertible into one fully paid ordinary share. Refer to the above tables for
the exercise price of the options.
Performance-based Remuneration
The Group currently has no performance-based remuneration component built into director and executive remuneration
packages due to the stage of the Group’s development, as such no link between remuneration and financial performance
currently exists.
The table below sets out summary information about the Group’s earnings and movement in share price for the five years to
30 June 2020:
Income
Net loss before tax
2020
$
2019
$
2018
$
2017
$
2016
$
315,861
498,997
290,357
49,659
12,418
(3,336,423)
(3,052,814)
(5,026,320)
(2,411,036)
(2,873,530)
Net loss after tax benefit
(3,336,423)
(3,052,814)
(5,026,320)
(2,320,120)
(2,873,530)
Share Price at end of year (cents)
Basic and diluted loss per share (cents)*
0.019
(0.76)
0.1
(1.57)
0.5
(4.50)
0.2
(2.50)
0.5
(8.70)
*Calculated on a post-consolidation basis.
End of Audited Remuneration Report
25
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Indemnifying Officers or Auditors
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person
who is or has been an officer or auditor of the Group.
Auditors’ Independence Declaration
The lead auditors’ independence declaration for the year ended 30 June 2020 has been received and can be found on
page 23 of the financial report.
Great Northern Minerals Limited
Proceedings on Behalf of Company
ABN 22 000 002 111
No person has applied for leave of Court under s237 of the Corporations Act 2001 to bring proceedings on behalf of the
Directors' Declaration
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 period.
In accordance with a resolution of the directors of Great Northern Minerals Limited, the directors of the company
declare that:
Options
1.
the financial statements, notes and the remuneration report in the Directors’ Report are in accordance with
the Corporations Act 2001, including:
Unissued shares under option
At the date of this report, the unissued ordinary shares of Great Northern Minerals Limited under option are as follows:
giving a true and fair view of the financial position of the Consolidated Group as at 30 June 2020 and of
its performance for the year ended on that date; and
a.
Details
b.
complying with Australian Accounting Standards (including International Financial Reporting Standards)
and the Corporations Regulations 2001;
Number of Option
Holders
Number under
Option
Exercise Price
Expiry Date
Unlisted
2.
Listed
Listed
27/10/2020
$0.30
1,600,000
in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
15/12/2021
18,578,678
$0.18
172
8
01/11/2022
$0.01
238,528,099
192
Listed
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with sections of 295A of the Corporations Act 2001.
102,522,431
01/07/2023
$0.022
150
This declaration is made in accordance with a resolution of the Board of Directors.
361,229,208
522
This report is signed in accordance with a resolution of the Board of Directors:
.................................................................................
..................................................................
Kim Robinson
Chairman
Kim Robinson
Chairman
Dated this 29 September 2020
Dated: 29 September 2020
26
59
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF GREAT NORTHERN
MINERALS LIMITED
I declare that, to the best of my knowledge and belief during the year ended 30 June
2020 there have been:
— no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the
audit.
William Buck Audit (WA) Pty Ltd
ABN 67 125 012 124
Robin Judd
Director
Dated this 29th day of September 2020
27
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Financial
Report
28
Annual Report 2020 | Financial ReportGreat Northern Minerals Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2020
Other income
Interest income
Occupancy costs
Depreciation and amortization
Corporate and administration expenses
Exploration and tenement costs
Impairment of tenements
Fair value change in equity instruments
Impairment loss on financial assets
Impairment on investment accounted for using equity method
Impairment of receivables
Write down in net assets of associates
Net Loss before income tax
Income tax (expense)/benefit
Net Loss after income tax
Note
4
10,11
5
13
2020
$
314,487
1,375
-
(56,834)
(1,196,391)
(1,321,927)
(948,133)
-
-
-
(129,000)
-
2019
$
484,144
14,853
(52,107)
(14,454)
(1,631,159)
(1,258,720)
(125,000)
(16,666)
(16,667)
(21,036)
-
(416,002)
(3,336,423)
-
(3,052,814)
-
(3,336,423)
(3,052,814)
Net Loss attributable to owners of Great Northern Minerals Limited
(3,336,423)
(3,052,814)
Other comprehensive income:
Items that will not be subsequently recognised in profit or loss
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Loss for the year is attributable to:
Owners of Great Northern Minerals Limited
Non-controlling interest
Total comprehensive loss for the year
Total comprehensive loss for the year attributable to Owners of Great
Northern Minerals Limited
Total comprehensive loss for the year attributable to Non-Controlling
Interest
-
-
(3,336,423)
(3,052,814)
(2,722,903)
(613,520)
(2,451,005)
(601,809)
(3,336,423)
(3,052,814)
(2,722,903)
(2,451,005)
(613,520)
(601,809)
Attributable to owners of Great Northern Minerals Limited:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(0.76)
(0.76)
(1.57)
(1.57)
The above consolidated income statement should be read in conjunction with the accompanying notes.
26
29
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Financial Position
As at 30 June 2020
Note
2020
$
2019
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Intangible assets
Right of Use asset
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Deferred consideration
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
Equity attributable to owners of the Parent Entity
Non-controlling interest (60% Ion Minerals)
8
9
10
11
13
14
11
13
11
15
16
17
17
2,510,058
259,440
20,308
222,277
486,412
17,017
2,789,806
725,706
101,951
39
98,375
562,076
123,930
2,774
-
948,133
762,441
1,074,837
3,552,247
1,800,543
543,352
27,397
150,000
470,817
-
-
720,749
470,817
75,240
75,240
-
-
795,989
470,817
2,756,258
1,329,726
79,834,625
295,056
75,182,850
349,212
(76,158,094) (73,600,527)
1,931,535
(601,809)
3,971,587
(1,215,329)
TOTAL EQUITY
2,756,258
1,329,726
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
30
27
Annual Report 2020 | Financial ReportGreat Northern Minerals
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32
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
Payments for exploration and evaluation
Interest received
Interest paid
R&D refund received
Proceeds from sale/release of royalty
Note
2020
$
2019
$
(1,043,771)
(1,532,836)
3,397
(6,129)
223,835
159,500
(2,989,377)
-
14,853
-
281,754
125,000
Net cash outflow in operating activities
18(a)
(2,196,004)
(2,567,770)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of exploration assets/tenements
Acquisition of exploration assets as part of Ion Minerals acquisition
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Other – Cash on acquisition of subsidiary
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares and options
Transaction costs
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
Net cash inflows from financing activities
(85,000)
-
(4,407)
800
-
(647,460)
(510,000)
(134,854)
-
210,021
(88,607)
(1,082,293)
5,189,820
(588,345)
8,000
(8,000)
(29,083)
604,539
(153,777)
100,000
(100,000)
-
4,572,392
450,762
Net increase (decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
2,287,781
222,277
(3,199,301)
3,421,578
8
2,510,058
222,277
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
33
30
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
1 Corporate Information
The consolidated financial report of Great Northern Minerals Limited (previously Greenpower Energy Limited)
for the year ended 30 June 2020 was authorised for issue in accordance with a resolution of the Directors on
29 September 2020 and covers Great Northern Minerals Limited as an individual entity as well as the
consolidated entity consisting of Great Northern Minerals Limited and its subsidiaries (‘Group’) as required
by the Corporations Act 2001.
The financial report is presented in the Australian currency.
Great Northern Minerals Limited is a for profit company limited by shares incorporated in Australia whose
shares are publicly traded on the Australian Securities Exchange.
2 Summary of Significant Accounting Policies
(a) Basis of Preparation
The financial report is a general purpose financial statement that has been prepared in accordance
with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result
in a financial report containing relevant and reliable information about transactions, events and
conditions. The financial statements and notes comply with International Financial Reporting
Standards. Material accounting policies adopted in the preparation of this financial report are presented
below and have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified,
where applicable, by the measurement at fair value of financial assets.
(b) Principles of Consolidation
Subsidiaries
The Group financial statements consolidate those of Great Northern Minerals Limited (‘Parent’), and
all of its subsidiaries as of 30 June 2020. The Parent controls a subsidiary if it is exposed, or has rights,
to variable returns from its involvement with the subsidiary and has the ability to affect those returns
through its power over the subsidiary.
All transactions and balances between Group companies are eliminated on consolidation, including
unrealised gains and losses on transactions between Group companies. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with
the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year
are recognised from the effective date of acquisition, or up to the effective date of disposal, as
applicable.
Subsidiaries are accounted for in the Parent financial statements at cost. A list of subsidiary entities is
contained in Note 12 to the financial statements. All subsidiaries have a 30 June financial year end.
31
34
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(c)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
Directors. The Directors are responsible for allocating resources and assessing the performance of the
operating segments.
(d)
Income Tax
The income tax expense for the period is the tax payable on the current period's taxable income based
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax base of assets and liabilities and their
carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying
amounts of assets and liabilities for financial reporting purposes and their respective tax bases, at the
tax rates expected to apply when the assets are recovered or liabilities settled, based on those tax
rates which are enacted or substantively enacted for each jurisdiction. Exceptions are made for certain
temporary differences arising on initial recognition of an asset or a liability if they arose in a transaction,
other than a business combination, that at the time of the transaction did not affect either accounting
profit or taxable profit.
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
Deferred tax assets and liabilities are not recognised for temporary differences between the carrying
amount and tax bases of investments in subsidiaries, associates and interests in joint ventures where
the parent entity is able to control the timing of the reversal of the temporary differences and it is
probable that the differences will not reverse in the foreseeable future.
Great Northern Minerals Limited and its wholly owned subsidiaries have implemented the tax
consolidation legislation. As a consequence, these entities are taxed as a single entity and the deferred
tax assets and liabilities of these entities are set off in the consolidated financial statements. Current
and deferred tax is recognised in profit or loss except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity.
(e)
Impairment of Assets
At each reporting date the Group assesses whether there is any indication that individual assets are
impaired. Where impairment indicators exist, the recoverable amount is determined, and impairment
losses are recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive
Income where the asset's carrying value 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 purpose of assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset.
Where it is not possible to estimate the recoverable amount for an individual asset, recoverable amount
is determined for the cash generating unit to which the asset belongs.
32
35
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(f)
Cash and Cash Equivalents
For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand
and at bank, deposits held at call with financial institutions, other short term, highly liquid investments
with 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.
(g) Property, Plant and Equipment
Each class of plant and equipment is carried at cost as indicated less, where applicable, any
accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable
to the asset.
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 asset's employment and subsequent
disposal. The expected net cash flows have not been discounted to their present values in determining
recoverable amounts.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset's useful
life to the Group commencing from the time the asset is held ready for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
Depreciation on other assets is calculated on a straight-line basis over the estimated useful life of the
asset as follows:
Class of Asset
Office Equipment
(h) Right-of-Use Assets
3-10 Years
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 consolidated 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 right-of-use asset will be depreciated on a straight-line basis over the unexpired period of the lease.
The asset will be subjected to impairment or adjusted for any remeasurement of lease liabilities.
33
36
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(i)
Exploration and Evaluation Assets
Exploration and evaluation expenditure is generally written off in the year it is incurred, except for
acquisition costs which are carried forward where right to tenure of the area of interest (i.e. tenement)
is current and is expected to be recouped through sale or successful development and exploitation of
the area of interest, or where exploration and evaluation activities in the area of interest have not
reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to the area of interest. The carrying value of any capitalised
expenditure is assessed by the Directors each year to determine if any provision should be made for
the impairment of the carrying value. The appropriateness of the Group’s ability to recover these
capitalised costs has been assessed at year end and the Directors are satisfied that the value is
recoverable. The carrying value of exploration and evaluation expenditure assets are assessed for
impairment at an overall level whenever facts and circumstances suggest that the carrying amount of
the assets may exceed recoverable amount. An impairment exists when the carrying amount of the
assets exceed the estimated recoverable amount. The assets are then written down to their
recoverable amount. Any impairment losses are recognised in the income statement.
(j)
Fair Value Measurement
When an asset or liability, financial or non-financial is measures at fair value for recognition or
disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement date;
and assumes that the transaction will take place either; in the principal market; or in the absence of a
principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability assuming they act in their economic best interests. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to measure fair value, are used,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy
based on the lowest level of input that is significant to the entire fair value measurement, being; level
1, quoted prices in active markets for identical assets or liabilities that the entity can access at the
measurement date; level 2, inputs other than quoted prices included within level 1 that are observable
for the assets or liabilities, either directly or indirectly; and level 3, unobservable inputs for the assets
and liabilities. Classifications are reviewed at each reporting date and transfers between levels are
determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value
of an asset or liability from one period to another, an analysis is undertaken, which includes a
verification of the major inputs applied in the latest valuation and a comparison, where applicable, with
external sources of data.
34
37
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(k)
Investments and Other Financial Assets
Investments and other financial assets are initially measured at fair value. Transaction costs are
included as part of the initial measurement, except for financial assets at fair value through profit or
loss. Such assets are subsequently measured at either amortised cost or fair value depending on their
classification. Classification is determined based on both the business model within which such assets
are held and the contractual cash flow characteristics of the financial asset unless, an accounting
mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows
have expired or have been transferred and the Group has transferred substantially all the risks and
rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial
asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income
are classified as financial assets at fair value through profit or loss. Typically, such financial assets will
be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with
an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where
permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which
the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the Group's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based
on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a
12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The
amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective
interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance
is recognised within other comprehensive income. In all other cases, the loss allowance is recognised
in profit or loss.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a
12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The
amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective
interest rate. For financial assets measured at fair value through other comprehensive income, the loss
allowance is recognised within other comprehensive income. In all other cases, the loss allowance is
recognised in profit or loss.
38
35
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(l) Trade and Other Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method, less any allowance for expected credit losses. Trade receivables
are generally due for settlement within 30 days.
The Company has applied the simplified approach to measuring expected credit losses, which uses a
lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
(m) 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
consolidated 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.
(n)
Trade and Other Payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the
year end 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.
(o) Contributed Equity
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares are
shown as a deduction from the equity proceeds, net of any income tax benefit. Costs directly
attributable to the issue of new shares associated with the acquisition of a business are included as
part of the purchase consideration.
(p) Earnings per Share
Basic Earnings per Share
Basic earnings per share is calculated by dividing the profit attributable to owners of Great Northern
Minerals Limited by the weighted average number of ordinary shares outstanding during the financial
year, adjusted for bonus elements in ordinary shares during the year.
36
39
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(p) Earnings per Share (continued)
Diluted Earnings per Share
Earnings used to calculate diluted earnings per share are calculated by adjusting the basic earnings
by the after-tax effect of dividends and interest associated with dilutive potential ordinary shares. The
weighted average number of shares used is adjusted for the weighted average number of ordinary
shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary
shares.
(q) Revenue
The Company recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the relevant
period using the effective interest rate, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Other income
Other revenue is recognised when it is received or when the right to receive payment is established.
(r)
Critical accounting estimates and judgements
The directors evaluate estimates and judgments incorporated into the financial report based on
historical knowledge and best available current information. Estimates assume a reasonable
expectation of future events and are based on current trends and economic data, obtained both
externally and within the Group.
Asset Acquisition vs Business Combination
AASB 3 Business Combination defines a business being ‘an integrated set of activities and assets that
is capable of being conducted and managed for the purpose of providing a return in the form of
dividends, lower costs or other economic benefits directly to investors or other owners, members of
participants.’ A business usually consists of Inputs, Processes and Outputs. Inputs and Processes are
the essential elements that have to be present in order to be classified as a business. Although a
business usually has outputs, outputs are not required for an integrated set of assets to qualify as a
business.
For the acquisition of a 40% share in Ion Minerals Pty Ltd, as noted above, the Directors have
determined that this transaction does not meet the requirements of AASB 3 Business Combination
and, thus, has been treated as an Asset Acquisition.
As at 30 June 2020, Great Northern Minerals Limited was in negotiations of finalising an option
agreement on the North Queensland Gold Projects acquisition, which was to result in the 100%
acquisition by Great Northern Minerals Limited. The Directors have determined that this transaction
does not meet the requirements of AASB 3 Business Combination, and thus, has treated the
acquisition as an Asset Acquisition. Refer to note 25 for details.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised and are only carried forward to the extent that
they are expected to be recouped through the successful development of the area or where activities
in the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
37
40
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(r)
Critical accounting estimates and judgements (continued)
Key judgements are applied in considering the costs to be capitalised which includes determining
expenditures directly related to these activities and allocating overheads between those that are
expensed and capitalised.
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 consolidated
entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-
19) pandemic.
(s) Goods and Services Tax (GST)
Revenues and expenses are recognised net of GST except where GST incurred on a purchase of
goods and services is not recoverable from the taxation authority, in which case the GST is recognised
as part of the cost of acquisition of the asset or as part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST
recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the statement of financial position. Cash flows are included in the Statement of Cash Flows on a gross
basis and the GST component of cash flows arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(t) New accounting standards for application in the current period
The consolidated entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for
the current reporting period.
Any new or amended Accounting Standards or Interpretations that are yet not mandatory have not
been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117
'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except
for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease
liabilities are recognised in the statement of financial position. Straight-line operating lease expense
recognition is replaced with a depreciation charge for the right-of-use assets (included in operating
costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the
earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher
when compared to lease expenses under AASB 117. However, EBITDA (Earnings Before Interest,
Tax, Depreciation and Amortisation) results improve as the operating expense is now replaced by
interest expense and depreciation in profit or loss.
38
41
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(t) New accounting standards for application in the current period (continued)
For classification within the statement of cash flows, the interest portion is disclosed in operating
activities and the principal portion of the lease payments are separately disclosed in financing activities.
For lessor accounting, the standard does not substantially change how a lessor accounts for leases.
Impact of adoption
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have
not been restated. Below is a reconciliation of total operating lease commitments as at 30 June 2019,
as disclosed in the annual financial statements for the year ended 30 June 2019, and the lease
liabilities recognised on 1 July 2019.
Operating lease commitments as at 30 June 2019 (AASB 117)
Additional operating lease
Operating lease commitments discount based on the weighted average
incremental borrowing rate of 5.4% (AASB 16)
Lease Liabilities as at 1 July 2019 (AASB 16)
(u) New accounting standards for application in the future periods
1 July 2019
$
-
143,208
(17,617)
125,591
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the company for the annual reporting period
ended 30 June 2020. The Group’s assessment of the impact of these new or amended Accounting
Standards and Interpretations, most relevant to the company, is set out below.
Reference/ Title
Summary
IASB amends the
definition of material
to
IASB has made amendments
The
IAS 1
Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates
and Errors and consequential amendments to other
IFRSs which: i) use a consistent definition of materiality
throughout IFRSs and the Conceptual Framework for
Financial Reporting; ii) clarify when information is
material; and iii) incorporate some of the guidance in
IAS 1 about immaterial information.
Application
date of
standard
Application
date for
Group
1 January
2020
1 July 2020
IASB amends the
definition of a
business (IFRS 3)
Sale or contribution
of assets between an
investor and its
associate or joint
venture (AASB 2014-
10)
The IASB has issued amendments to the guidance in
IFRS 3 Business Combinations that revises the
definition of a business.
1 January
2020
1 July 2020
The amendments clarify the accounting treatment for
sales or contribution of assets between an investor and
its associates or joint ventures. They confirm that the
accounting depends on whether the contributed assets
constitute a business or an asset.
1 January
2022
1 July 2022
The Group has considered what impact these accounting standards will have on the financial
statements, when applied next year, and have concluded that they will have no material impact.
39
42
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
(v) Going Concern
For the year ended 30 June 2020 the Group recorded a consolidated loss of $3,336,423 (2019:
$3,052,814) and at that date the net operating cash out flows were $2,196,004 (2019: $2,567,770).
The Group had net current assets of $2,069,057 (2019: $254,889). The expenditure reflected the
Group’s acquisition of and funding of its exploration programme at the Company’s Gold Projects at
Golden Cup, Camel Creek and Big Rush Gold Mines in North Queensland.
These conditions indicate a material uncertainty that may cast significant doubt about the Group’s
ability to continue as a going concern, however notwithstanding this the accounts have been prepared
on a going concern basis.
The Directors have assessed the Group’s operating and research costs along with future commitments
for tenement exploration costs in order to establish the future funding requirements for the Group.
As at 30 June 2020 the Group had cash on hand of $2,510,058. Subsequent to the financial year end,
the Group has announced via the market released dated 31 August 2020, that it had secured
Placement commitments totalling $1.5 million (before costs) to enable it to accelerate the drilling
programme at the Company’s Queensland Gold Projects. The capital raising successfully completed
during the first week of September 2020. In addition to the above and subject to a shareholder approval
to be obtained at Company’s Annual General Meeting, to be convened in due course, the Directors
have advised their support by collectively subscribing for $100,000 worth of new shares under the
Placement.
Should the Group be unable to continue as a going concern it may be required to realise its assets and
extinguish its liabilities other than in the normal course of business and at the amounts stated in the
financial report. The financial report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts or to the amounts and classification of liabilities that might be
necessary should the Group not continue as a going concern.
3 Auditors' Remuneration
Remuneration of the auditor of the parent entity for:
- Audit or review - William Buck Audit (WA) Pty Ltd
Total remuneration for audit services
4 Other Income
- Income from sale/release of royalty (i)
- R&D Refund
- Other income
2020
$
2019
$
28,862
29,740
28,862
29,740
2020
$
125,000
155,720
33,767
2019
$
260,000
223,835
309
314,487
484,144
40
43
Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
4 Other Income (continued)
(i) On 19 March 2019, Great Northern Minerals (previously Greenpower Energy Limited) announced that it
entered into a binding Deed of Assignment of Royalty (‘DAR’) with Gasfields Limited, to sell its 1.5% wellhead
royalty over 50% of any production from EP447 tenement to Gasfields Limited. Great Northern will receive
an initial cash payment of $250,000 and two further instalments of $125,000 each. As a consideration for
Great Northern agreeing to the amendment Deed of Agreement, Gasfields will pay Great Northern $10,000
in cash in addition to the initially agreed consideration. As at 30 June 2019, outstanding receivable amount
is per Tranche 1 of the Deed of Assignment of Royalty agreement.
On 21 February 2020, the Company announced that it has entered into a Deed of Surrender and Release
with GCC Methane Pty Ltd of its 1.5% wellhead gas royalty to be derived from gas sales from WA Exploration
Permit EP447 for surrender consideration in the amount of $137,500 (inclusive of GST) which has been
received during the financial year.
5 Corporate and administration costs
- Interest expense
- Marketing expenses
- Compliance & regulatory fees
- Employee benefit expenses
- Legal fees
- Consultants fees
- Share based payment expenses
- Other corporate & administration expenses
*Includes lease liability interest expense per AASB 16
6 Income Tax Expense / (Benefit)
(a) The major components of tax expense (benefit) comprise:
Income tax expense
2020
$
32,291*
39,231
303,986
299,809
55,637
191,000
111,180
163,256
2019
$
2,610
67,525
226,225
437,200
42,107
310,659
-
544,833
1,196,391
1,631,159
2020
$
-
-
2019
$
-
-
(b) The prima facie tax benefit/(expense) from the loss before income tax is reconciled to the
income tax as follows:
Net Profit/(Loss) before tax
Prima facie tax benefit on loss from ordinary activities before income
tax at 30% (2019: 27.5%)
- the Group
(3,336,423)
(3,052,814)
(1,000,927)
(839,524)
(1,000,927)
(839,524)
41
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Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
6 Income Tax Expense / (Benefit) (continued)
(b) The prima facie tax benefit/(expense) from the loss before income tax is reconciled to the
2020
$
2019
$
income tax as follows (continued):
Add/Less tax effect of:
-non-deductible expenses
-losses not brought to account
-non-assessable income
-movement in unrecognisable temporary differences
-deductible equity raising costs
Income tax attributable to parent entity
(c) Unrecognised temporary differences
Deductible temporary differences
Tax revenue losses
Tax capital losses
368,728
714,978
(56,357)
(16,428)
(9,994)
-
839,524
-
-
-
-
-
88,580
3,347,052
3,209,831
96,257
2,412,735
2,942,345
Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Availability of losses is subject to passing the required tests under the ITAA 1997/1936.
7 Loss per Share
(a) Reconciliation of Loss used to calculate Loss per share
Loss
Loss used to calculate basic and diluted EPS
(b) Weighted average number of ordinary shares (diluted):
Weighted average number of ordinary shares outstanding during the year
number used in calculating:
Basic EPS
Diluted EPS
2020
$
2,722,903
2019
$
2,451,005
2,722,903
2,451,005
2020
number
2019
number
359,994,638
155,896,443*
359,994,638
155,896,443
*Post-consolidation basis. On 28 October 2019, the Company consolidated its issued capital on a 10:1 basis.
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of
the Parent as the numerator (ie no adjustments to loss were necessary in 2020 or 2019).
As the Company is in a loss position, the options outstanding at 30 June 2020 have no dilutive effects on the
earnings per share calculation.
42
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Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
8 Cash and Cash Equivalents
Cash at bank
Short-term bank deposits
Reconciliation of Cash
Note
8(a)
Cash at the end of the financial year as shown in the Statement
of Cash Flows is reconciled to items in the Statement of Financial
Position as follows:
Cash and cash equivalents
2020
$
2019
$
2,442,428 60,390
161,887
67,630
2,510,058
222,277
2020
$
2019
$
2,510,058
222,277
2,510,058
222,277
As at 30 June 2020 there is a restriction on available cash of $67,630 (20019: $161,887). The Group has a
number of short term deposits held as a security for various Victorian exploration licenses on released
tenements and active North Queensland exploration licences. The Group is currently working with the
Department of Mines and anticipates that the term deposit securities over Victorian exploration licenses over
the released tenements should be released in due course.
(a)
Short term deposit
Short term deposits are held as a security for various bank guarantees.
9 Trade and Other Receivables
CURRENT
Gasfields Royalty receivable
R&D Refund receivable
Other receivables
Note
9(a)
9(b)
9(c)
2020
$
2019
$
-
155,720
103,720
151,000
223,835
111,577
259,440
486,412
(a) Gasfields Royalty Receivable
On 19 March 2019, Great Northern Minerals (previously Greenpower Energy Limited) announced that
it entered into a binding Deed of Assignment of Royalty (‘DAR’) with Gasfields Limited, to sell its 1.5%
wellhead royalty over 50% of any production from EP447 tenement to Gasfields Limited. Great
Northern will receive an initial cash payment of $250,000 and two further instalments of $125,000 each.
As a consideration for Great Northern agreeing to the amendment Deed of Agreement, Gasfields will
pay Great Northern $10,000 in cash in addition to the initially agreed consideration. As at 30 June
2019, outstanding receivable amount is per Tranche 1 of the Deed of Assignment of Royalty
agreement.
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Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
9 Trade and Other Receivables
(a) Gasfields Royalty Receivable (continued)
On 21 February 2020, the Company announced that it has entered into a Deed of Surrender and
Release with GCC Methane Pty Ltd of its 1.5% wellhead gas royalty to be derived from gas sales from
WA Exploration Permit EP447 for surrender consideration in the amount of $137,500 (inclusive of GST)
which has been received during the financial year.
(b) R&D Refund Receivable
R & D Refund due from the Australian Taxation Office for 2019 financial year over Company’s OHD
Project (2018: $223,835).
(c) Other Receivables
Other receivables represent receivables due from the Australian Taxation Office for BAS Quarterly
Returns in the total amount of $52,790, office bond in the amount of $23,687, tenement bond in the
amount of $1,500, credit card security bond of $20,000 and other immaterial receivable amounts
totalling $5,743 which are not impaired and will be receivable.
10 Plant and Equipment
Office equipment & furniture
At cost
Accumulated depreciation
Total office equipment & furniture
Total plant and equipment
2020
$
2019
$
128,947
(26,996)
138,100
(14,170)
101,951
123,930
101,951
123,930
(a) Movements in Carrying Amounts
Movement in the carrying amounts for each class of plant and equipment between the beginning and
the end of the current financial year:
Office Equipment
2019
$
2020
$
123,930
4,407
(800)
(25,586)
101,951
757
134,854
-
(11,681)
123,930
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Balance at the end of the year
47
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Annual Report 2020 | Financial ReportGreat Northern Minerals
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
11 Right-of-use asset
The Company entered into a rental lease for their office premises in September 2018. The term of the lease
is five years, with the option to extend for another three years. The value of the right-of-use asset was
calculated based on the particulars of the lease. Variables which were taken into account include the lease
term, rent per annum, clauses for rent increases, rent abatements, and the option to extend (the option to
extend was not taken into account, as the Company has not made a firm decision on this matter). The right-
of-use asset will be depreciated over the lease term, the depreciation expense and lease liability will be
expensed. In subsequent reporting periods, the right-of-use asset will be revalued to reflect the remaining
life of the lease.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the
period:
Right-of-Use Assets
Balance at the beginning of period
Right-of-use asset additions
Accumulated depreciation
Balance at the reporting date
Lease Liabilities
Balance at beginning of period
Lease liabilities additions
Accretion of interest
Payments
Balance at the reporting date
Lease liabilities – current
Lease liabilities – non current
Depreciation expense for right-of-use assets
Interest expense on lease liabilities
Total amount recognised in profit or loss
48
45
2020
$
-
125,591
(27,216)
98,375
2020
$
-
125,591
6,129
(29,083)
102,637
27,397
75,240
27,216
6,129
33,345
2019
$
-
-
-
-
2019
$
-
-
-
-
-
-
-
-
-
Annual Report 2020 | Financial ReportGreat Northern Minerals
49
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 46 12 Controlled Entities The consolidated financial statements incorporate the assets, liabilities and the results of the following subsidiary in accordance with the accounting policy described in note 1: Controlled Entities Principal Activity Country of Incorporation Percentage Owned 2020 Percentage Owned 2019 Greenpower Group Pty Ltd Investment Australia 100% 100% Greenpower Gold Pty Ltd (previously GCC Asset Holdings Pty Ltd) Investment Australia 100% 100% Northern Exploration Pty Ltd Exploration Australia 100% 100% Sawells Pty Ltd Exploration Australia 100% 100% Greengrowth Energy Pty Ltd (previously Greengrowth Bio-Stimulants Pty Ltd) Non-trading Australia 95% 95% Greenpower Chemicals Pty Ltd Non-trading Australia 100% 100% Greenpower Guyana Pty Ltd Investment Australia 100% 100% Ion Minerals Pty Ltd Exploration Australia 40% 40% 12(a) Summarised financial information on subsidiaries with material non-controlling interest Set out below is the summarised financial information for Ion Minerals Pty Ltd which has a non-controlling interest material to Great Northern Minerals Limited (previously Greenpower Energy Limited). Summarised Statement of Financial Position Current 2020 $ 2019 $ Assets 7,729 66,757 Liabilities (948,958) (944,910) Total Current Net Assets (941,229) (878,153) Non-Current Assets - 959,458 Liabilities - - Total Non-Current Net Assets - 959,458 Revenue - 324 Loss before income tax (1,022,534) (1,003,701) Income tax - - Total comprehensive loss for the year (1,022,534) (1,003,701) Total comprehensive loss attributable to NCI (613,520) (601,809) Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
13 Exploration and Evaluation Assets
Exploration expenditure capitalised
Exploration and evaluation permits
A reconciliation of the carrying amount of exploration and evaluation
expenditure is set out below:
Carrying amount at the beginning of the year
Acquisition costs incurred during the year
Impairment of exploration and evaluation expenditure*
Deferred consideration capitalised**
Carrying amount at the end of the year
2020
$
2019
$
562,076
948,133
948,133
412,076
(948,133)
150,000
562,076
-
1,073,133
(125,000)
-
948,133
* On 23 October 2018, Great Northern Minerals Limited (formerly Greenpower Energy Limited) completed
Phase 1 of Ion Minerals Pty Ltd acquisition. The initial acquisition was 40%, with the option to earn in a further
30% through a Phase 2 Earn-in and the remaining 30% in Phase 3 Earn-In. On 30 October 2019, the
Company made an announcement to the Australian Stock Exchange (ASX), that it will discontinue
involvement in the project to focus on other core assets. As a result an impairment loss of $948,133 in relation
to this asset has been recognised in the year ended 30 June 2020.
** On 15 August 2019, Great Northern Minerals announced that it had exercised the option to the Heads of
Agreement with Q-Generate Pty Ltd to acquire the former gold producing mines of Camel Creek, Golden
Cup and Big Rush (“The Golden Ant Project”) in North Queensland. Management have accounted for this
transaction as an acquisition of assets and not as a business combination since, at the date of acquisition,
the Golden Ant Project did not have the processes and outputs expected of an operating business. The
Consideration for the acquisition comprised of:
Upfront Consideration consisting to be paid at settlement, of $20,000 for the grant of Exclusive Option
fee, $50,000 cash payment and $50,000 worth of fully paid ordinary shares in GNM (formerly GPP)
to be issued to the owner (or its nominee, on behalf of the vendors), the issue price was calculated
on the basis of a 30 day VWAP prior to the date of the Options Exercise Notice being issued (with a
minimum floor price of $0.03 per share);
Deferred Consideration to be paid post settlement and subject to achievement of Milestones as
follows:
-$50,000 in cash and $100,000 in GNM shares to be issued upon estimation of JORC compliant
Measured Mineral Resource of at least 100,000 ounces of gold at the Project. The amount of
$150,000 has been capitalised as deferred consideration as at 30 June 2020; and
-$1,500,000 in cash or GNM shares (subject to shareholder approval) upon estimation of JORC
compliant Measured Mineral Resource of at least 100,000 ounces of gold at the Project and either
12 months after the grant of Environmental Access in respect of the licences or 24 months after the
settlement. The amount of $1,500,000 has been recognised as a contingent liability as at 30 June
2020 (refer to Note 21).
50
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Annual Report 2020 | Financial ReportGreat Northern Minerals
51
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 48 13 Exploration and Evaluation Assets (continued) Subsequent to the financial year end, on 10 August 2020, Great Northern Minerals Limited announced that it had entered into a deed of variation to the Heads of Agreement with Q-Generate Pty Ltd to accelerate the completion of 100% ownership of the North Queensland gold projects. The parties to the agreement have mutually agreed to reduce the agreed deferred and further deferred consideration via an early cash payment of $859,450, representing a discount of approximately 50% to the existing deferred and further deferred consideration per Heads of Agreement, totalling $1.732M, which resulted in completion of Great Northern Minerals’ 100% ownership of the Queensland gold projects. Great Northern Minerals Limited made the early cash payment of $859,450 during August 2020. Exploration permits Refer to Interests in Exploration Tenements section at the end of this consolidated financial report for the list of exploration licences held by the Group. 14 Trade and Other Payables 2020 $ 2019 $ CURRENT Trade payables 489,353 381,140 Other payables 53,999 89,677 543,352 470,817 15 Issued Capital Movements in ordinary share capital No. of shares $ Year ended 30 June 2020 At the beginning of year 1,943,207,165 75,182,850 Shares issued during the year 949,234,267 5,195,826 Part Consideration Shares issued for North Queensland Projects (i) 1,666,666 50,000 Cost of issuing shares - (594,051) Consolidation of issued capital on 10:1 basis (2,072,020,981) - Balance at 30 June 2020 822,087,117 79,834,625 (i) Refer to note 13 for details. Year ended 30 June 2019 At the beginning of year 1,455,370,361 74,126,524 Shares issued during the year 377,836,804 660,102 Shares issued for acquisition of Ion Minerals 110,000,000 550,000 Cost of issuing shares - (153,776) Balance at 30 June 2019 1,943,207,165 75,182,850 The Company has no authorised share capital or par value in respect of its issued shares. Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
15
Issued Capital (continued)
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to
the number of shares held. At the shareholders meetings, each ordinary share is entitled to one vote when a
poll is called, otherwise each shareholder has one vote on a show of hands.
Capital Risk Management
The Group's and the Parent’s objectives when managing capital are to safeguard their ability to continue as
a going concern, so that they can continue to provide returns for 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 pay dividends to shareholders, return
capital to shareholders, issue new shares or sell assets. During 2020 financial year, the Group's strategy,
which was unchanged from 2019, was to maintain minimum borrowings outside of trade and other payables.
During the 2020 financial year a loan was received on commercial terms from a Director. This loan was repaid
during 2020 financial year.
Cash and cash equivalents
Less: payables
Net cash
Total equity
Total capital
16 Reserves
Share Based Payments Reserve
Financial Assets Reserve
Total Reserves
Share Based Payments Reserve
Opening balance
Options expired
Options issued during the year
Financial Assets Reserve
Opening balance
Equity instruments reclassified as financial assets at FVTPL
Total Reserves
52
49
2020
$
2,510,058
(543,352)
2019
$
222,277
(470,817)
1,966,706
3,971,587
(248,539)
1,931,774
2,004,881
2,180,313
2020
$
295,056
-
2019
$
349,212
-
295,056
349,212
2020
$
2019
$
349,212
(165,336)
111,180
716,857
(367,645)
-
295,056
349,212
-
-
-
14,666
(14,666)
-
295,056
349,212
Annual Report 2020 | Financial ReportGreat Northern Minerals
53
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 50 16 Reserves (continued) Share Based Payments Reserve The share-based payments reserve records items recognised as expenses on valuation of employee share options. Share options are issued for nil consideration. The exercise price of the share options is determined by the Directors in their absolute discretion and set out in the Offer provided that the exercise price is not less than the average Market Price on ASX on the five trading days prior to the day the Directors resolve to grant the Options. Any options that are not exercised by their expiry date will lapse. Upon exercise, these options will be settled in ordinary fully paid shares of the Company. The Options can be exercised in whole or part at any time up to and including the Expiry Date by lodging and Option Exercise Notice accompanied by the payment of the exercise price. 2020 $ 2019 $ Options at 1 July 349,212 716,857 Options issued during the year 111,180 - Expiry of options during the year (165,336) (367,645) Options at 30 June 295,056 349,212 Summary of options granted as share based payments The following table illustrates the number and movements in share options under share based payments: 2020 Number 2019 Number Outstanding at the beginning of the year 8,000,000 31,000,000 Granted during the year 21,000,000 - Vested during the year - - Exercised during the year - - Lapsed/cancelled during the year - (23,000,000)1 Forfeited during the year - - Consolidation of issued capital on 10:1 basis (7,200,000) - Outstanding at the year end 21,800,000 8,000,000 Exercisable at the year end 21,800,0000 8,000,000 1. Options expired on 1 January 2019. Weighted average remaining contractual life of share options The weighted average remaining contractual life for the share options outstanding as at 30 June 2020 is 1.33 years (2019: 1.2 years). Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
16 Reserves (continued)
Range of exercise price of share options
The exercise price for options outstanding at the end of the year is $0.01 to $0.30 (2019: $0.03).
Weighted average fair value of share options
The weighted average fair value of options granted during the year is $111,180 (2019: $nil).
Share option valuation
The fair value of the equity-settled share options granted under the share based payments is estimated at
the date of grant using a Black Scholes model, which takes into account factors including the options exercise
price, the volatility of the underlying share price, the risk-free interest rate, the market price of the underlying
shares at grant date, historical and expected dividends and the expected life of the option.
The options were valued using Black Scholes with the below assumptions:
Number of options in series
Underlying share price ($)
Exercise price ($)
Expected volatility (%)
Option life
Expiry date
Dividend yield (%)
Risk free interest rate (%)
Number of options in series
Underlying share price
Exercise price
Expected volatility
Option life
Expiry date
Dividend yield
Interest rate
Listed Options
21,000,000
0.005
0.01
100
2 years
1 November 2022
Nil
0.54
Unlisted Options
8,000,000
$0.021
$0.03
99.20%
3 years
27 October 2020
0.00%
1.64%
54
51
Annual Report 2020 | Financial ReportGreat Northern Minerals
55
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 52 17 Accumulated Losses 2020 $ 2019 $ Accumulated losses Opening balance (73,600,527) (71,531,883) Net loss for the period attributable to Owners of Parent (2,722,903) (2,451,005) Reclassification adjustments: - Options lapsed transferred from reserves 165,336 367,645 - Available for sale assets reserve transferred - 14,666 Total (76,158,094) (73,600,527) 18 Cash Flow Information (a) Reconciliation of Cash Flow from Operations with Loss after Income Tax 2020 $ 2019 $ Net loss for the year (3,336,423) (3,052,814) Cash flows excluded from loss attributable to operating activities Non-cash flows in loss Amortisation 27,216 2,773 Depreciation 29,618 11,681 Impairment loss on financial assets - 16,667 Share based payments (111,180) - Fair value adjustment - 16,666 Impairment of exploration assets 948,133 125,000 Impairment of receivables 129,000 - Write down in net assets of associate - 416,002 Impairment on investment accounted for using equity method - 21,036 Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries Decrease/(Increase) in receivables 223,681 (152,266) (Decrease)/Increase in trade payables and accruals (106,049) 27,487 Net cash (outflow) from operating activities (2,196,004) (2,567,768) (b) Non-Cash Financing and Investing Activities During the year the Group had the following non-cash financing and investing activities: - Part consideration payment for the acquisition The Golden Ant Project in North Queensland. The part purchase consideration was settled by issuance of 1,666,666 shares at deemed issue price $0.03 for consideration of $50,000. The deemed issue price was calculated on the basis of a 30 day VWAP prior to the date of the Option Exercise Notice being issued. – refer to note 13. Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
19 Project Expenditure Commitments
Planned project expenditure commitments contracted for:
Exploration Permits
Payable:
- not later than 12 months*
- between 12 months and 5 years
- more than 5 years
2020
$
1,458,687
1,458,687
317,158
964,889
176,640
1,458,687
2019
$
855,297
855,297
115,831
739,466
-
855,297
*During 2020 financial year, the Group spent $708,859 on granted tenement licences and $20,038 on application licences.
The amounts detailed above is the minimum expenditure required to maintain ownership of the current
tenements held. An obligation may be cancelled if a tenement is surrendered.
20 Related Party Transactions
(a)
Parent entity
The ultimate parent entity within the Group is Great Northern Minerals Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in note 12.
(c) Compensation
The aggregate compensation made to directors and other members of key management personnel of
the consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
2020
$
362,420
27,621
45,780
2019
$
420,574
14,250
-
435,821
434,824
(d)
Transactions and balances with related parties
All transactions between related parties are on normal commercial terms and conditions no more
favourable than those available to other parties unless otherwise stated.
2020
- During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron
McLean has an interest in, was loaned by Great Northern Minerals Limited an amount of $2,873. The
terms of the transaction were on a no interest basis. The balance payable by Mineral Intelligence to
Great Northern Minerals Limited as at 30 June 2020 was $5,467. Subsequent to the year end, the
funds are yet to be repaid from Mineral Intelligence Pty Ltd.
56
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Annual Report 2020 | Financial ReportGreat Northern Minerals
57
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 54 20 Related Party Transactions (d) Transactions and balances with related parties (continued) -During 2019 financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director, Cameron McLean has an interest in, loaned $11,000 to Ion Minerals Pty Ltd. The terms of the transaction were on a no interest basis. The balance outstanding and payable to Mineral Intelligence Pty Ltd by Ion Minerals Pty Ltd as at 30 June 2020 is $11,000. The funds are yet to be repaid to Mineral Intelligence Pty Ltd. 2019 - During the financial year, Ion Minerals Pty Ltd repaid the outstanding loan balance it had owing to Director, Alistair Williams, which was the balance brought over from previous period and was still owing upon Great Northern Minerals Limited’s (previously Greenpower Energy Limited) acquisition of Ion Minerals Pty Ltd. On 13 November 2019, the Company fully settled the balance outstanding of $13,395. The terms of the transaction were on a no interest basis. Balance owing to Alistair Williams as at 30 June 2019 was Nil. - During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director, Cameron McLean has an interest in, loaned $11,000 to Ion Minerals Pty Ltd. The terms of the transaction were on a no interest basis. The balance outstanding and payable to Mineral Intelligence Pty Ltd by Ion Minerals Pty Ltd as at 30 June 2019 is $11,000. Subsequent to the year end, the funds are yet to be repaid to Mineral Intelligence Pty Ltd. - During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron McLean has an interest in, was loaned by Great Northern Minerals Limited (previously Greenpower Energy Limited) an amount of $2,594. The terms of the transaction were on a no interest basis. The balance payable by Mineral Intelligence as at 30 June 2019 was $2,594. Subsequent to the year end, the funds are yet to be repaid from Mineral Intelligence Pty Ltd. There were no other Key Management personnel related party transactions during the year. 21 Contingent liabilities and contingent assets Contingent Liabilities The Group had contingent liabilities at 30 June 2020 in respect of: - The Group has provided bank guarantees in favour of the Minister of Energy and Resources with respect to a security deposit and in favour of Minister of Energy and Resources Victoria with respect to a contract performance at 30 June 2020. The total of these guarantees at 30 June 2020 was $32,533 with a financial institution (30 June 2019: $20,000). - On 15 August 2019, Great Northern Minerals announced that it had exercised the Option Agreement with Q-Generate Pty Ltd to acquire the former gold producing mines of Camel Creek, Golden Cup and Big Rush (“The Golden Ant Project”) in Northern Queensland. Upon estimation of JORC compliant Measured Mineral Resource of at least 100,000 ounces of gold at the Golden Ant Project and; either 12 months after the grant of Environmental Access in respect of the licences; or 24 months after the settlement Great Northern Minerals Limited will need to pay $1,500,000 in cash or GNM shares to Q-Generate Pty Ltd or it’s nominee. Contingent Assets The Group had no contingent assets at 30 June 2020. Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
22 Financial Risk Management
(a)
Financial Risks
The main risks the Group is exposed to through its financial instruments are interest rate risk and
liquidity risk.
Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group’s business.
The Group does not hold or issue derivative financial instruments.
The Group uses different methods as discussed below to manage risks that arise from these financial
instruments. The objective is to support the delivery of the financial targets while protecting future
financial security. Primary responsibility for the identification and management of financial risks rests
with the Board.
(a) Liquidity risk
The Company manages liquidity risk by maintaining sufficient cash facilities to meet the operating
requirements of the business. The responsibility for liquidity risk management rests with the Board of
Directors. The Company manages liquidity risk by monitoring forecast cash flows and ensuring that
adequate working capital is maintained. The Company’s policy is to ensure that it has sufficient cash
reserves to carry out its planned exploration activities over the next 12 months.
(b) Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows
or the fair value of financial instruments.
The Company’s exposure to market risk for changes to interest rate risk relates primarily to its earnings
on cash.
(b) Credit Risk
The Group has no significant concentrations of credit risk other than cash at bank which is held with
the Commonwealth Bank of Australia and Westpac Bank both AA- rated Australian banks. The
maximum exposure to credit risk at reporting date is the carrying amount (net of provision of expected
credit losses) of those assets as disclosed in the statement of financial position and notes to the
financial statements.
As the Group does not presently have any debtors, lending, significant stock levels or any other credit
risk, a formal credit risk management policy is not maintained. Credit risk represents the risk that the
counterparty to the financial instrument will fail to discharge an obligation and cause the Group to incur
a financial loss. During 2019 financial year, the Group had a credit risk exposure within the sale of
royalty, which as at 30 June 2019 owed to the Group $151,000. On 21 February 2020, the Company
announced that it has entered into a Deed of Surrender and Release with GCC Methane Pty Ltd of its
1.5% wellhead gas royalty to be derived from gas sales from WA Exploration Permit EP447 for
surrender consideration in the amount of $137,500 (inclusive of GST) which has been received during
the financial year.
(c) Liquidity Risk
Liquidity risk is the risk that the Group may encounter difficulties raising funds to meet commitments
associated with financial instruments (e.g. borrowing repayments). The Group manages liquidity risk
by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are
maintained.
58
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Annual Report 2020 | Financial ReportGreat Northern Minerals
59
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 56 23 Events after the Reporting Period There are no matters or circumstances which have arisen since the end of the year which will significantly affect, or may significantly affect, the state of affairs or operations of the reporting entity in future financial years other than the following: On 10 August 2020, the Company announced that it had signed a deed of variation to the Heads of Agreement to accelerate the completion of 100% ownership of the North Queensland gold projects. The Parties to the Heads of Agreement have mutually agreed to reduce the agreed deferred and further deferred consideration via an early cash payment of $859,450, representing a discount of approximately 50% to the existing deferred and further deferred consideration totalling $1.732M which completes Great Northern’s 100% ownership of the Golden Ant Project. On 4 September 2020, the Company completed a placement via issuance of 80,521,786 fully paid ordinary shares, raising $1.52 million. The funds raised will be utilised to accelerate drilling at Company’s Queensland gold projects and for general working capital. The Company also received commitments and support from Company Directors who collectively subscribed for $100,000 worth of New Shares, which are subject to shareholder approval at Company’s upcoming 2020 Annual General Meeting to be convened in due course. The impact of the Coronavirus ('COVID-19') pandemic is ongoing for the consolidated entity up to 30 June 2020, 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 Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. 24 Segment Reporting AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The Group predominantly operates in one segment, being exploration activities throughout Australia. The Group via a heads of agreement was funding exploration in Guyana undertaken by Great Northern Minerals (previously Greenpower Energy Limited) exploration partner and operator Guyana Strategic Metals Inc., a Canadian registered entity. The Company has fully impaired all the costs incurred and funded for operations in Guyana over the last financial years, as its focus is on its Australian Projects. Information regarding the non-current assets by geographical location is reported for Australian exploration assets only, being $1,261,526. Refer to note 13. 25 Asset Acquisition – Golden Ant Project On 15 August 2019, Great Northern Minerals Limited announced that it had exercised the option to the Heads of Agreement with Q-Generate Pty Ltd to acquire the former gold producing mines of Camel Creek, Golden Cup and Big Rush (“The Golden Ant Project”) in North Queensland. Management have accounted for this transaction as an acquisition of assets and not as a business combination since, at the date of acquisition, the Golden Ant Project did not have the processes and outputs expected of an operating business. The Consideration for the acquisition comprised of: Upfront Consideration consisting to be paid at settlement, of $20,000 for the grant of Exclusive Option fee, $50,000 cash payment and $50,000 worth of fully paid ordinary shares in GNM (formerly GPP) to be issued to the owner (or its nominee, on behalf of the vendors), the issue price was calculated on the basis of a 30 day VWAP prior to the date of the Options Exercise Notice being issued (with a minimum floor price of $0.03 per share); Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2020
25 Asset Acquisition – Golden Ant Project (continued)
Deferred Consideration to be paid post settlement and subject to achievement of Milestones as
follows:
-
-
$50,000 in cash and $100,000 in GNM shares to be issued upon estimation of JORC compliant
Measured Mineral Resource of at least 100,000 ounces of gold at the Project; and
$1,500,000 in cash or GNM shares (subject to shareholder approval) upon estimation of JORC
compliant Measured Mineral Resource of at least 100,000 ounces of gold at the Project and either
12 months after the grant of Environmental Access in respect of the licences or 24 months after
the settlement.
Subsequent to the financial year end, on 10 August 2020, Great Northern Minerals Limited announced that
it had entered into a deed of variation to the Heads of Agreement with Q-Generate Pty Ltd to accelerate the
completion of 100% ownership of the North Queensland gold projects. The parties to the agreement have
mutually agreed to reduce the agreed deferred and further deferred consideration via an early cash payment
of $859,450, representing a discount of approximately 50% to the existing deferred and further deferred
consideration per Heads of Agreement, totalling $1.732M, which resulted in completion of Great Northern
Minerals’ 100% ownership of the Queensland gold projects. Great Northern Minerals Limited made the early
cash payment of $859,450 during August 2020.
26 Parent Entity
The following information has been extracted from the books and records of the parent, Great Northern
Minerals Limited and has been prepared in accordance with Accounting Standards.
The financial information for the parent entity, Great Northern Minerals Limited has been prepared on the
same basis as the consolidated financial statements.
Investments in subsidiaries
Investments in subsidiaries, are accounted for at cost in the financial statements of the parent entity.
2020
$
2019
$
2,915,765
1,458,390
550,988
115,379
4,374,155
666,367
1,392,760
75,240
293,706
-
1,468,000
293,706
2,906,155
372,661
Consolidated Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
60
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Annual Report 2020 | Financial ReportGreat Northern Minerals
61
Annual Report 2020 | Financial ReportGreat Northern MineralsGreat Northern Minerals Limited ABN 22 000 002 111 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2020 58 26 Parent Entity (continued) 2020 $ 2019 $ Equity Issued capital 79,834,619 75,182,850 Accumulated losses (77,223,520) (75,159,401) Share Based Payments Reserve 295,056 349,212 Total Equity 2,906,155 372,661 Consolidated Income Statement Total loss for the year (2,064,119) (3,493,011) Total comprehensive loss (2,064,119) (3,493,011) Guarantees entered into by the parent entity in relation to the debts of its subsidiaries Pursuant to ASIC Instrument 2017/785 Great Northern Minerals Limited and its wholly owned subsidiaries (refer note 12) entered into a deed of cross guarantee. The effect to the deed is that Great Northern Minerals Limited has guaranteed to pay any deficiency in the event of winding up of any controlled entity or if they do not meet their obligations under the terms of any debt subject to the guarantee. The controlled entities have given a similar guarantee in the event that Great Northern Minerals Limited is wound up or if it does not meet its obligations under the terms of any debt subject to the guarantee. Contingent liabilities of the parent entity The Directors are not aware of any contingent liabilities at reporting date, except for already disclosed contingent liabilities at note 21 of this financial report. Great Northern Minerals Limited
ABN 22 000 002 111
Directors' Declaration
In accordance with a resolution of the directors of Great Northern Minerals Limited, the directors of the company
declare that:
1.
the financial statements, notes and the remuneration report in the Directors’ Report are in accordance with
the Corporations Act 2001, including:
a.
b.
giving a true and fair view of the financial position of the Consolidated Group as at 30 June 2020 and of
its performance for the year ended on that date; and
complying with Australian Accounting Standards (including International Financial Reporting Standards)
and the Corporations Regulations 2001;
2.
in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with sections of 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
..................................................................
Kim Robinson
Chairman
Dated: 29 September 2020
59
62
Annual Report 2020 | Financial ReportGreat Northern Minerals 63
Annual Report 2020 | Financial ReportGreat Northern Minerals Great Northern Minerals Limited Independent auditor’s report to members Report on the Audit of the Financial Report Opinion We have audited the financial report of Great Northern Minerals Limited (the Company and its subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30 June 2020, 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 other explanatory information, 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 2020 and of its financial performance for the year ended on that date; 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 (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 2(v) in the financial report, which indicates that the Group incurred a net loss of $3,336,423 and incurred net operating cash outflows of $2,196,004 during the year ended 30 June 2020. As stated in Note 2(v), these events or conditions indicate that a material uncertainty exists that may cast significant doubt on Independent auditor’s report to members (cont’d.)
the Group’s ability to continue as a going concern. Our opinion is not modified in respect
of this matter.
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 as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. In addition to the
matter described in the Material Uncertainty Related to Going Concern section, we have
determined the matters described below to be the key audit matters to be
communicated in our report.
ACQUISITION OF THE GOLDEN ANT PROJECT LICENCES
Area of focus
Refer also to note 2(r) & 25
How our audit addressed it
Our audit procedures included:
— A review of the term sheet for the
acquisition of Golden Ant Project to
evaluate the nature of the acquisition.
— An evaluation of the Directors assessment
that Golden Ant Project does not meet the
definition of a Business under AASB 3
Business Combinations and the resulting
conclusion to treat the acquisition as an
Asset Acquisition.
— An assessment of the adequacy of the
Group’s disclosures in respect of the
acquisition.
We concluded that the treatment of the Golden
Ant Project acquisition as an Asset Acquisition
was appropriate and in accordance with the
relevant Australian Accounting Standards.
The Group acquired 100% of the licenses that
make up the Golden Ant Project (Camel Creek
Mine, Golden Cup Gold Mine and Big Rush
Gold Mine) in North Queensland. The
Directors determined that this transaction did
not meet the requirements of AASB 3
Business Combinations and, thus, it has been
treated it as an Asset Acquisition.
The Directors performed their assessment in
line with AASB 3 Business Combinations
which defines a business as being ‘an
integrated set of activities and assets that is
capable of being conducted and managed for
the purpose of providing a return in the form of
dividends, lower costs or other economic
benefits directly to investors or other owners,
members or participants.’
A business usually consists of inputs,
processes, and outputs. Inputs and processes
are the essential elements that must be
present in order to be classified as a business.
Although a business usually has outputs,
outputs are not required for an integrated set
of assets to qualify as a business.
This was a key matter because of the
significance of the value of acquisition costs
capitalised at 30 June 2020.
64
Annual Report 2020 | Financial ReportGreat Northern Minerals
65
Annual Report 2020 | Financial ReportGreat Northern Minerals Independent auditor’s report to members (cont’d.) CARRYING VALUE OF EXPLORATION COSTS CAPITALISED Area of focus Refer also to note 2(i) & 13 How our audit addressed it The Group has incurred exploration costs in relation to the Group's exploration programs. There is a risk that the capitalisation of exploration and evaluation expenditure may exceed the value in use. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. One or more of the following facts and circumstances indicate that an entity should test exploration and evaluation assets for impairment: — the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future and is not expected to be renewed. — substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned. — exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area. — sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full, from a successful development or by sale. This was a key matter because of the significance of the capitalised Exploration and evaluation assets at 30 June 2020. Our audit procedures included: — A review of the directors’ assessment of the criteria for the capitalisation of exploration expenditure costs and evaluation as to whether there are any indicators of impairment of capitalised costs. — An assessment of viability of the tenements and whether there were any indicators of impairment of those costs capitalised in the current period. — An assessment of the adequacy of the Group’s disclosures in respect of the transactions. We concluded that recognition treatment and impairment assessment were in accordance with the relevant Australian Accounting Standards. Independent auditor’s report to members (cont’d.)
Other Information
The directors are responsible for the other information. The other information comprises
the information in the Group’s annual report for the year ended 30 June 2020 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 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 has no realistic alternative
but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as
a whole is free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with the
Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
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Annual Report 2020 | Financial ReportGreat Northern Minerals
67
Annual Report 2020 | Financial ReportGreat Northern Minerals Independent auditor’s report to members (cont’d.) A further description of our responsibilities for the audit of these financial statements is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf This description forms part of our independent auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included on pages 18 to 23 of the directors’ report for the year ended 30 June 2020. In our opinion, the Remuneration Report of Great Northern Minerals Limited, for the year ended 30 June 2020, 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. William Buck Audit (WA) Pty Ltd ABN 67 125 012 124 Robin Judd Director Dated this 29th day of September 2020 Annual Report 2020 | Additional Information
Great Northern Minerals Limited
Additional Information for Public Listed Companies
For the Year Ended 30 June 2020
ASX Additional Information
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set
out below. This information is effective as at 28 August 2020.
Voting Rights
Ordinary Shares
On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
Options
No voting rights.
Distribution of Equity Security Holders
Holding Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,000 and over
Total Holders
49
253
324
1,004
484
Number of
Shares
10,082
986,267
2,647,576
39,889,784
778,600,951
2,114
822,134,660
Unmarketable Parcel of Ordinary Shares
Minimum $500 parcel at $0.0210 per unit
23,810
994
9,768,693
Minimum Parcel Size
Holders
Units
65
68
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Annual Report 2020 | Additional Information
69
Annual Report 2020 | Directors’ ReportGreat Northern MineralsGreat Northern Minerals Limited Additional Information for Public Listed Companies For the Year Ended 30 June 2020 66 Top 20 Largest Shareholders Rank Name Units % Units 1 JETOSEA PTY LTD 151,665,574 18.45 2 PAPILLON HOLDINGS PTY LTD 31,785,716 3.87 3 XCEL CAPITAL PTY LTD 28,809,484 3.50 4 MR ERNST KOHLER 28,517,003 3.47 5 METECH SUPER PTY LTD 23,000,000 2.80 6 MR ALISTAIR WILLIAMS 21,897,024 2.66 7 BASS FAMILY FOUNDATION PTY LTD 19,500,000 2.37 8 PANDORA NOMINEES PTY LTD 13,565,384 1.65 9 KALCON INVESTMENTS PTY LTD 13,472,024 1.64 10 BUSHWOOD NOMINEES PTY LTD 12,380,901 1.51 11 EXERTUS CAPITAL PTY LTD 11,166,667 1.36 12 RADROB PTY LTD 10,590,710 1.29 13 MR STEPHEN TOMSIC 10,198,205 1.24 14 DAVANNA PTY LTD 10,000,000 1.22 14 HUNG CAPITAL GROUP PTY LTD 10,000,000 1.22 14 LOMACOTT PTY LTD 10,000,000 1.22 14 MRS ANGELA MAREE ROWE 10,000,000 1.22 18 CITICORP NOMINEES PTY LIMITED 9,822,155 1.19 19 MAD FISH MANAGEMENT PTY LTD 8,500,000 1.03 20 BORA BORA RESOURCES LIMITED 8,000,000 0.97 20 THE MEHMET AND MARCKATOS FUND PTY LTD 8,000,000 0.97 Top holders of FULLY PAID ORDINARY SHARES (Total) 450,870,847 54.84 Securities exchange listing The Company is listed on the Australian Securities Exchange under GNM ASX code. The Company has listed options on the Australian Securities Exchange under GNMOA, GNMOB and GMOF. Address The address of the registered office and principal place of business in Australia is Level 1, 33 Colin Street, West Perth WA 6005. Telephone (08) 6214 0148. Register of securities Registers of securities are held at the following address: Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth WA 6000 Annual Report 2020 | Additional Information
Great Northern Minerals Limited
Additional Information for Public Listed Companies
For the Year Ended 30 June 2020
20 Largest Option holders for ‘GNMOA’ Listed Options exercisable at $0.18 on 15 December 2021
Rank
Name
1
2
3
4
5
6
7
8
9
10
10
10
13
14
15
16
17
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
MR NICHOLAS DERMOTT MCDONALD
MS FURONG ZHANG + MR VICTOR ZHOU
MR RALPH MANNO + MRS CHRISTINE ANNE
D'AHREMBERG
EXPANZ AGENCIES LIMITED
MS CHUNYAN NIU
KALCON INVESTMENTS PTY LTD
GOLDEN DAWN LIMITED
MRS CHRISTINA MARIE HIRRELL
ROTHERWOOD ENTERPRISES
CHELMSLEY PROPRIETARY LIMITED
QUID CAPITAL PTY LTD
MR DAVID JAMES WALL
BUSHWOOD NOMINEES PTY LTD
BARROSEVEN PTY LIMITED
T T NICHOLLS PTY LTD
MIRADOR CORPORATE PTY LTD
RED MOUNTAIN MINING LTD
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD
MR DAMIAN FRANCIS BRIZZI & MR JAMES LEE
CHERUBIN & MR VINCENZO BRIZZI
MRS MARY BRODERICK & DR JOHN BRODERICK
MR MARK LANGLEY BURCHNALL
MR MATTHEW BURFORD
BURNAL PTY LTD
MR STACEY HUBERT CARTER
CRIVE PTY LTD
DANLAMB PTY LTD
MR JEFFREY ALLAN DUNN
FIRESTONE INVESTMENTS PTY LTD
FIRST INVESTMENT PARTNERS
MR GREGORY WALLACE FOX & MRS CHERYL ANN FOX
G & P REDFEARN INVESTMENTS P/L
MR ROGER CLIVE GILBEY &
GLM KOPPA PTY LTD
GRAZING PROPER PTY LTD
MR DEREK HA
MR ALEXANDER JOHN HARRISON
HOWSER PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C
2
Units
8,907,713
616,666
600,000
500,000
376,899
300,000
256,410
247,435
200,000
166,666
166,666
166,666
154,000
150,000
130,000
100,000
96,000
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
76,923
67
70
% Units
47.95
3.32
3.23
2.69
2.03
1.61
1.38
1.33
1.08
0.90
0.90
0.90
0.83
0.81
0.70
0.54
0.52
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
0.41
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Annual Report 2020 | Additional Information
71
Annual Report 2020 | Directors’ ReportGreat Northern MineralsGreat Northern Minerals Limited Additional Information for Public Listed Companies For the Year Ended 30 June 2020 68 Rank Name Units % Units 18 MR WERNER KUFFER & MRS GLENYS ANNE KUFFER 76,923 0.41 18 M & K KORKIDAS PTY LTD 76,923 0.41 18 MR ROBERT MCDOWELL 76,923 0.41 18 MR NON HUYNH NGUYEN 76,923 0.41 18 MR TAMUKA NUNGIRAYI & MISS SARAH NUNGIRAYI 76,923 0.41 18 P & N KALAMVOKIS INVESTMENTS PTY LTD 76,923 0.41 18 PANDORA NOMINEES PTY LTD 76,923 0.41 18 MS JOAN EVELYNE PEREIRA 76,923 0.41 18 MR SIMON ANDREW PETERS + MS EMMA FRANCES VOGEL 76,923 0.41 18 MR ANTHONY ROBERT REECE & 76,923 0.41 18 MRS KATIE ELIZABETH REECE 76,923 0.41 18 STOJ INVEST PTY LTD 76,923 0.41 18 T T NICHOLLS PTY LTD 76,923 0.41 18 MR IAN THOMPSON & MR PETER RANDAL THOMPSON 76,923 0.41 18 MR MARK ANDREW TKOCZ 76,923 0.41 18 TOWNACE HOLDINGS PTY LTD 76,923 0.41 18 TREGEARE PTY LTD 76,923 0.41 18 MS ROSILYN MAY WATSON 76,923 0.41 18 WESTWIZE ENTERPRISES PTY LTD 76,923 0.41 18 MR YING KIT WONG & 76,923 0.41 18 MR THEAM HUAH YEOH 76,923 0.41 18 MS YAFEN ZHU 76,923 0.41 Top holders of ‘GNMOA’ LIST OPT EXP 15/12/21 @$0.18 (Total) 16,442,810 88.50 Annual Report 2020 | Additional Information
Great Northern Minerals Limited
Additional Information for Public Listed Companies
For the Year Ended 30 June 2020
20 Largest Option holders for ‘GNMOB’ Listed Options exercisable at $0.022 on 1 July 2023
Rank
Name
1
2
3
4
5
6
7
8
8
10
11
12
13
14
15
16
17
18
19
20
JETOSEA PTY LTD
KALCON INVESTMENTS PTY LTD
MS CHUNYAN NIU
ILLUMINATION HOLDINGS PTY LTD
XCEL CAPITAL PTY LTD
MR NICHOLAS DERMOTT MCDONALD
JETOSEA PTY LTD
GECKO RESOURCES PTY LTD
WHEAD PTY LTD
MR JOSEPH ALLEN TREACY + MRS KAYE LYNETTE
TREACY
MR BILAL AHMAD
BUSHWOOD NOMINEES PTY LTD
ALITIME NOMINEES PTY LTD
GOFFACAN PTY LTD
RIMOYNE PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MAVERICK EXPLORATION PTY LTD
MR CHRISTOPHER JAMES COWAN
MR STEVEN DAVID BURNETT
MISS HUONG THI VANG
Units
28,749,996
12,750,000
12,420,406
10,000,000
8,749,980
3,000,000
2,383,333
2,000,000
2,000,000
1,500,000
1,450,000
1,250,000
1,230,000
1,200,000
1,000,000
964,370
960,022
900,000
600,000
580,000
% Units
28.04
12.44
12.11
9.75
8.53
2.93
2.32
1.95
1.95
1.46
1.41
1.22
1.20
1.17
0.98
0.94
0.94
0.88
0.59
0.57
Top 20 holders of ‘GNMOB’ LISTED OPTIONS EXPIRING
01/07/2023 @ $0.022 (Total)
93,688,107
91.38
69
72
Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Annual Report 2020 | Additional Information
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Annual Report 2020 | Directors’ ReportGreat Northern MineralsGreat Northern Minerals Limited Additional Information for Public Listed Companies For the Year Ended 30 June 2020 70 20 Largest Option holders for ‘GNMOF’ Listed Options exercisable at $0.01 on 1 November 2022 Rank Name Units % Units 1 JETOSEA PTY LTD 61,530,119 25.80 2 HUNG CAPITAL GROUP PTY LTD 16,516,667 6.92 3 MS CHUNYAN NIU 14,449,450 6.06 4 KALCON INVESTMENTS PTY LTD 13,000,000 5.45 5 PAPILLON HOLDINGS PTY LTD 8,200,312 3.44 6 NIGHTFALL PTY LTD 8,000,000 3.35 7 XCEL CAPITAL PTY LTD 7,833,333 3.28 8 MR ALISTAIR WILLIAMS 6,833,333 2.86 9 MR NICHOLAS DERMOTT MCDONALD 6,600,000 2.77 10 CALE CONSULTING PTY LTD 6,000,000 2.52 10 COXSROCKS PTY LTD 6,000,000 2.52 10 KIM ROBINSON 6,000,000 2.52 13 EXERTUS CAPITAL PTY LTD 5,583,334 2.34 14 BORA BORA RESOURCES LIMITED 4,000,000 1.68 14 ILLUMINATION HOLDINGS PTY LTD 4,000,000 1.68 14 MR SAMUEL SPEER 4,000,000 1.68 17 NAEN PTY LIMITED 3,500,000 1.47 18 KALCON INVESTMENTS PTY LTD 3,333,334 1.40 19 MR SIMON ANDREW PETERS 3,000,000 1.26 19 MR COLIN WEEKES 3,000,000 1.26 Top 20 holders of ‘GNMOF’ LISTED OPTIONS EXPIRING 01/11/2022 @ $0.01 (Total) 191,379,882 80.23 Option Equity Securities as at 28 August 2020 Total options on issue 822,134,660 Total listed options on issue 359,629,208 Total unlisted options on issue 1,600,000 Great Northern Minerals
Annual Report 2020 | Additional Information
Great Northern Minerals Limited
Interest in Mining Tenements
For the Year Ended 30 June 2020
Interest in Exploration Tenements
Region
Project
Tenement
Interest Held
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Queensland
Golden Ant – Camel Creek
EPM27207
Golden Ant – Big Rush
EPM27283
Golden Ant – Big Rush
Golden Ant – Big Rush
Golden Ant – Big Rush
Golden Ant – Golden Cup
Golden Ant – Camel Creek
Golden Ant – Camel Creek
Golden Ant – Camel Creek
Golden Ant – Camel Creek
Golden Ant – Camel Creek
Golden Ant – Camel Creek
Golden Ant – Camel Creek
ML10168
ML10175
ML10192
ML4536
ML4522
ML4523
ML4524
ML4525
ML4534
ML4540
ML6952
Western Australia
Ashburton
Guyana
Queensland
Queensland
Queensland
Turesi PGGS
Big Rush
Black Mountain
Camel Creek**
E52/3612
Guyana – Turesi
EPM27500
EPM27522
EPM26637
**Joint venture with NorthX Pty Ltd (refer to ASX announcement dated 1 April 2020).
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
*Application only
*Application only
*Application Only
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Annual Report 2020 | Directors’ ReportGreat Northern Minerals
Great Northern Minerals
Level 1, 33 Colin Street
WEST PERTH WA 6005
AUSTRALIA
www.greatnorthernminerals.com.au