Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Annual Report
For the Year Ended 30 June 2022
Great Northern Minerals Limited
ABN 22 000 002 111
For the Year Ended 30 June 2022
CONTENTS
Corporate Directory
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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22
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61
Great Northern Minerals Limited
ABN 22 000 002 111
Corporate Directory
DIRECTORS
Mr Kim Robinson (Non-Executive Chairman)
Mr Cameron McLean (CEO & Managing Director)
Mr Simon Coxhell (Non-Executive Director)
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
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Telephone:
1300 787 272
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, GNMOB, GNMOF
1
Great Northern Minerals Limited
Directors' Report
30 June 2022
Your directors present their Report on Great Northern Minerals Limited (the “Company” or “GNM”) and its
controlled entities (the “Group”) for the financial year ended 30 June 2022.
Directors
The names of Directors who held office during or since the end of the year:
Name
Mr Kim Robinson
Mr Cameron McLean
Mr Simon Coxhell
Mr Simon Peters
Non-Executive Chairman
CEO & Managing Director
Non-Executive Director (Transitioned to Non-Executive Director role effective 30 June 2022)
Non-Executive Director (resigned on 30 September 2022)
Directors’ Qualifications and Experience
DIRECTOR
Kim Robinson
Qualifications
Appointment Date
Experience
Interests in shares and
options
Other directorships in
listed entities held in
the previous 3 years
Cameron McLean
Qualifications
Appointment Date
Experience
Interest in shares and
options
Other directorships in
listed entities held in
the previous 3 years
DETAILS
(Non-Executive Chairman)
-
1 April 2020
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 his time at Forrestania, Mr Robinson played a key role in the discovery
and development of the Bounty Gold Mine, the development of the Mt McClure Gold
Mine and the discovery of the Maggie Hays and Emily Ann nickel sulphide deposits. Mr
Robinson was also a Non-Executive Director of Jubilee Mines NL in the period leading
up to the discovery and development of the Cosmos Nickel Mine. Mr Robinson was a
founding Director of Kagara Ltd where he held the position of Executive Chairman for a
period of 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.
3,503,759 Fully Paid Ordinary Shares
6,000,000 Listed Options exercisable at $0.01 on or before 1 November 2022
187,970 Listed Options exercisable at $0.022 on or before 1 July 2023.
None
(CEO & Managing Director)
-
12 October 2018
Mr 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. Mr McLean has a background in accounting and finance with
experience originating at Western Mining in Melbourne. Mr McLean is the founder and
major shareholder of the mining investment platform, Mineral Intelligence. Through
Mineral Intelligence, Mr McLean has facilitated over $100M in mining transactions over
the past 5 years.
24,752,980 Fully Paid Ordinary Shares
6,938,025 Listed Options exercisable at $0.01 on or before 1 November 2022
2,009,974 Listed Options exercisable at $0.022 on or before 1 July 2023.
- Non-Executive Director of Bindi Metals Limited (since 25 May 2021)
- Non-Executive Director of Queensland Pacific Metals Limited (previously Pure Minerals
Limited) (30 November 2018 – 24 September 2021)
- Non-Executive Chairman of DC Two Limited (1 September 2020 - 31 August 2021)
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Simon Coxhell
Qualifications
Appointment Date
Experience
Interests in shares and
options
Other directorships in
listed entities held in
the previous 3 years
(Non-Executive Director)
BSc, Masters Qualifying
1 April 2020
Mr Coxhell is a geologist with 34 years of diverse experience encompassing all aspects
of the resource sector including exploration, resource development, metallurgical
considerations and mining.
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 182 million dollars, centred on the re-
establishment of the Bronzewing Gold Mine. Over a 3 year period he developed the gold
resource base of Echo from 100,000 resource ounces to a total resource base of 1.7
million ounces of gold, and a maiden reserve of 800,000 ounces, for the 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.
4,836,759 Fully Paid Ordinary Shares
6,000,000 Listed Options exercisable at $0.01 on or before 1 November 2022
187,970 Listed Options exercisable at $0.022 on or before 1 July 2023.
-Managing Director of Blaze Minerals Limited (Non-Executive Director role held from 5
April 2019 – 1 July 2022. From 1 July 2022 transitioned into Managing Director role)
Simon Peters
(Non-Executive Director)
Qualifications
Appointment Date
Resignation Date
Experience
BEng (Mining) MAusIMM (Hons)
6 December 2016
30 September 2022
Mr Peters is a highly experienced mining executive and qualified mining engineer with
more than 20 years’ experience in both hard and soft rock exploration, mine
development and operations. Over the past 10 years, 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.
Simon is currently a Partner of Sustainable Project Services, which provides strategic &
technical management consultancy advice to government, mining and agricultural
sectors. Mr Peters is also founding director of Murray Basin Resources a company
focused on gold exploration in north west Victoria.
He holds a bachelor of engineering (mining) with Honours from Federation University
Australia and an unrestricted WA quarry manager’s certificate.
Interest in shares and
options
6,265,360 Fully Paid Ordinary Shares
3,000,000 Listed Options exercisable at $0.01 on or before 1 November 2022
327,534 Listed Options exercisable at $0.022 on or before 1 July 2023.
Other directorships in
listed entities held in
the previous 3 years
None
3
Great Northern Minerals Limited
Directors' Report
30 June 2022
REVIEW OF OPERATIONS
The principal activities of the Group during the financial year were:
Great Northern Mineral’s key project is the Golden Ant Gold-Antimony Project located approximately 200km
northwest of Townsville in Northern Queensland. The Project consists of the Amanda Bell Goldfield (Camel Creek
and Golden Cup) and the Big Rush Goldfield, which were mined from 1989 to 1998 producing approximately
150,000 oz Au.
Figure 1 Camel Creek, Golden Cup and Big Rush Location Plan
The Company made significant progress during the year, with the following notable achievements:
Completed reverse circulation (RC) and diamond drilling (DD) programs at Camel Creek;
Consolidated and increased the Camel Creek Project tenement holding;
Increased the Golden Ant Project Mineral Resource to 6.1Mt @ 2.0 g/t Au (386koz Au contained) with the
completion of the Initial Camel Creek Mineral Resource (2.4Mt @ 2.6 g/t Au & 0.4% Sb; and
Announced an exciting new high grade greenfield Au-Ag-Cu discovery at Douglas Creek.
During the year, Great Northern Minerals appointed Mike Barr as the Exploration Manager. Mike is a highly
experienced geologist, with over 40 years’ experience within the mining and exploration industry and has been
involved in mine site development, brown and greenfield exploration within Australia (QLD & NSW), the Pacific
Rim (PNG, Solomon Islands, Kalimantan) and Europe (Greece & Turkey). Mike will be focusing on growing the
assets of the Company with a specific focus on the emerging Douglas Creek discovery.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
GOLDEN ANT PROJECT
During the financial year, the Company increased its Golden Ant Project Mineral Resource by 65% in overall
resource tonnes to 6.1Mt and by 111% in the contained gold to 386koz Au (refer to Table 1). This increase was
driven by the completion of the Initial Camel Creek Mineral Resource of 2.4Mt @ 2.4 g/t Au & 0.4% Sb (202koz
Au & 9,000 tonnes Sb).
Table 1 Golden Ant Project Mineral Resource at a 0.5 g/t Gold cut off
Camel Creek (1)
Big Rush (2)
Golden Cup (3)
Resource
Classification
Indicated
Inferred
Sub Total
Indicated
Inferred
Sub Total
Indicated
Inferred
Sub Total
Tonnes Gold Antimony Contained Gold Contained Antimony
(kt)
1,440
970
2,410
2,236
1,203
3,439
-
279
279
2,410
3,439
279
6,128
(tonnes)
5,700
3,300
9,000
-
-
-
-
-
-
9,000
-
-
-
(Sb %)
0.4%
0.3%
0.4%
-
-
-
-
-
-
0.4%
-
-
-
(koz)
127
75
202
99
54
153
-
30
30
202
153
30
386
(g/t)
2.7
2.4
2.6
1.7
1.8
1.8
-
3.4
3.4
2.6
1.8
3.4
2.0
Camel Creek
Big Rush
Golden Cup
Golden Ant Project Total
Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding.
(1) Widenbar & Associates 3 March 2022
(2) Great Northern Minerals ASX release dated 21 February 2021
(3) Great Northern Minerals ASX release dated 9 December 2019
A scoping study has commenced to understand the potential economics of the Golden Ant Project.
CAMEL CREEK PROJECT
Camel Creek Drilling Program
A total of 64 RC holes for 9,258 metres and 4 HQ diamond holes for 484 metres were drilled between April and
December 2021 at Camel Creek with final results released to the market on 28 June 2021, 18 October 2021 and
8 February 2022 respectively.
The drilling program initially tested approximately 2,200 metres of strike of the Camel Creek known gold
mineralisation on nominal 40 metre centres, with at least one hole drilled per section. This work defined two higher
grade zones of gold and antimony mineralisation at the Hinge Zone and the North Pit area which were then
subject to closer spaced infill and deeper drilling.
In November 2021, Great Northern Minerals completed a diamond drilling program consisting of 4 HQ diamond
drill holes for holes for a total of 484 metres of HQ diamond drilling with 508 metres of RC precollars.
The Camel Creek gold and antimony mineralisation occurs in quartz veins with variable contents of gold, pyrite,
arsenopyrite and stibnite. The Camel Creek drilling program delineated a high-grade plunging Hinge Zone at
Camel Creek which remains open at depth and strike
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Figure 2 Camel Creek Long Section (Recent Diamond Drilling & High-Grade Hinge Zone)
Camel Creek Mineral Resource Estimate
In March 2022, Widenbar & Associates completed the Initial Camel Creek Mineral Resource Estimate (MRE) of
2.4Mt @ 2.6 g/t Au & 0.4% Sb (202,000 oz Au & 9,000 tonnes of antimony, refer to Table 2). The Camel Creek
MRE was based on historical drilling plus the more recent RC and DD drilling completed by the Company during
the year.
Table 2 Initial Camel Creek Mineral Resource Estimate (0.5 g/t Au cut-off grade)
Camel Creek (1)
Classification
Indicated
Inferred
Sub Total
Tonnes Gold Antimony Contained Gold Contained Antimony
(kt)
1,440
970
2,410
(tonnes)
5,700
3,300
9,000
(Sb %)
0.4%
0.3%
0.4%
(koz)
127
75
202
(g/t)
2.7
2.4
2.6
Tonnages and grades are rounded. Discrepancies in totals may exist due to rounding.
(1) Widenbar & Associates 3 March 2022
To date, the majority of the Camel Creek MRE is located within the Hinge Zone (comprising 61% of the total
resource by volume and 65% by tonnage). The resource is open at depth and along strike and pending the
development of the Golden Ant Project further drilling is required to further understand the ultimate size of the
Camel Creek mineralised system.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Figure 3 Central (Hinge Zone) Area Resource Classification Long Section
Increase in Camel Creek Project Tenement Holding
Great Northern Minerals materially increased their exploration footprint in the highly prospective Camel Creek
Project area during the year with the grant of a key tenement (EPM 26637) and a lodgement of further two
applications, EPM 28301 and EPM 28598 (refer to Figure 4).
As announced on 1 April 2020, Great Northern Minerals entered into a Heads of Agreement with Northx Pty Ltd
(‘Northx’) to earn an 80% interest in EPM 26637. During June 2022 quarter, EPM 26637 was granted and is
contiguous with Company’s existing mining leases at Camel Creek and Golden Cup (refer to Figure 4). The grant
of EPM 26637 will allow Company’s exploration activities to expand beyond the Camel Creek and Golden Cup
mining leases, targeting known historical mines and exploration targets along the highly prospective Golden Ant,
Anabelle-Red Ant, Blue Gold and Angiang Trends. Great Northern Minerals intends to follow up on the significant
targets within the tenement, where no drilling has been completed for 20 years despite several deposits within the
tenement open at depth and along strike.
Subsequent to the year end, EPM 28598 application was lodged, as initial exploration activities at Company’s
exciting Douglas Creek Au-Ag-Cu discovery had indicated the potential for the mineralisation to extend into the
application area.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Figure 4 Camel Creek Project Tenement Holding
Douglas Creek Greenfield Au-Ag-Cu Discovery
In May 2022, Great Northern Minerals carried out a reconnaissance sampling program at Douglas Creek, located
on EPM 27522 north-east of Camel Creek (refer to Figure 4). The sampling program was designed to follow up a
bulk cyanide leach gold (‘BCL’) anomaly dating from 1988.
Fifteen samples were taken from outcrop from an area approximately 900m by 170m with the majority returning
strongly anomalous gold, silver and copper grades of up to 2.0 g/t Au, 88 g/t Ag and 11.0% Cu (refer to ASX
release dated 31 May 2022 – “High Gold-Silver-Copper grades returned from reconnaissance sampling at
Douglas Creek prospect”).
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Table 3 Douglas Creek Rock Chip Assay Results
Sample No.
Easting Northing Description
Au g/t Ag g/t Cu %
GNMRC01
357930 7930291 Sandstone & qtz veining with Fe staining
GNMRC02
357942 7930320 Sandstone & qtz veining with Fe staining
GNMRC03
357905 7930411 Sandstone/mica-sericite
GNMRC04
357842 7930520 Sandstone/mica-sericite
GNMRC05
357701 7930937 Vuggy gossan
GNMRC06
357684 7930821 Qtz vein (dog tooth texture)
GNMRC07
357689 7930823 Diorite
GNMRC08
357660 7930853 Qtz malachite veining
GNMRC09
357661 7930829 Ferruginous qtz vein & gossan
GNMRC10
357644 7930856 Qtz vein
GNMRC11
357648 7930884 Limonitic qtz vein & gossan
GNMRC12
357658 7930890 Gossan with minor qtz
GNMRC13
357662 7930915 Ferruginous qtz veining
GNMRC14
357675 7930957 Bleached sandstone, minor Fe and Si
GNMRC15
357712 7931143 Aplite dyke
*bdl – below detection limit
0.0
0.1
bdl*
bdl*
0.0
0.4
0.4
2.0
0.7
0.4
1.7
1.2
1.1
0.5
0.2
67
65
1
0
6
27
19
84
19
52
33
88
20
3
21
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.1%
11.0%
0.4%
0.1%
0.2%
0.2%
0.1%
0.1%
0.1%
The mineralisation discovered at Douglas Creek is likely to be of IRGS (Intrusion Related Gold System) in nature.
Exploration carried out after the year end delineated multiple zones of extensive mineralisation, highlighting the
potential of this exciting greenfield discovery.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Figure 5 Douglas Creek Sampling Results
Competent Persons Statement – Mineral Resources
The information in this release that relates to Mineral Resources is based on information compiled by Mr. Lynn Widenbar, a Competent Person
who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Widenbar is a full-time employee of Widenbar and Associates Pty
Ltd. Mr. Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the
activity that is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Minerals Resources and Ore Reserves’. Mr. Widenbar consents to the inclusion in the report of the matters based on his
information in the form and context that the information appears.
Competent Persons Statement – Exploration Results
The information in this report that relates to Exploration Results is based on information compiled under the supervision of Simon Coxhell. 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.
10
Great Northern Minerals Limited
Directors' Report
30 June 2022
This Review of Operations contains information extracted from ASX market announcements reported in
accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves” (2012 JORC Code). Further details (including 2012 JORC Code reporting tables
were applicable) of exploration results referred to in this Review of Operations can be found in the following
announcements lodged on the ASX:
Date
Announcement
23 August 2021
Drilling Completed at Camel Creek
9 September 2021
Four Metre Assay Results at Camel Creek
18 October 2021
One Metre Assay Results Confirm Potential for Camel Creek Gold System
30 November 2021
Camel Creek Diamond Drilling Update
8 February 2022
Diamond Drilling Confirms Depth Extensions
8 March 2022
Camel Creek delivers 202,000oz Gold and 9,000t Antimony
31 May 2022
27 July 2022
High Grades from Reconnaissance Sampling at Douglas Creek
Three High Grade Zones Defined at Douglas Creek Discovery
CORPORATE
The Company undertook a $3 million placement (before costs) which closed oversubscribed. The
placement was completed in two Tranches via the issue of 300,000,000 Tranche 1 shares and
200,000,000 Tranche 2 shares. The issue of Tranche 2 shares and Lead Manager options were
contingent upon prior shareholder approval which was obtained on 14 January 2022.
On 19 January 2022, the Company issued 200,000,000 Tranche 2 placement shares and 40,000,000
GNMOB Listed Options to the Lead Manager in conjunction with the Lead Manager fee to the placement
as announced on 8 December 2021.
On 11 March 2022 the Company announced that it has established the Unmarketable Parcel Share Sale
Facility for small shareholders who hold parcels of fully paid ordinary shares in the Company valued at
less than A$500 with the Record Date of 9 March 2022. On 26 May 2022, the Company announced that
it had completed the Unmarketable Parcel Share Sale Facility with a total of 25,899,823 shares being
sold from 1,100 holders of Unmarketable Parcels, at a price of $0.005 per share. The Unmarketable share
sale process reduced the Company’s administrative costs associated with maintaining the small holdings.
On 22 March 2022 the Company appointed Mr Donald Garner as an advisor to the Board. Mr Garner is
a geologist with over 25 years’ experience in the resources industry. In return for his services, Mr Garner
was granted 3,000,000 GNMOF Listed Options and 3,000,000 GNMOB Listed Options on 30 March 2022.
On the 2 May 2022, the Company announced that the exploration tenement EPM 26637 had been
granted at GNM’s Camel Creek Gold-Antimony Project in Northern Queensland. The grant of EPM 26637
allowed GNM’s exploration activities to expand beyond the Camel Creek and Golden Cup mining leases,
targeting known historical mines and exploration targets along the highly prospective Golden Ant,
Anabelle-Red Ant,Blue Gold and Angiang Trends. The Company entered into a Heads of Agreement with
Northx Pty Ltd (“Northx”) to earn an 80% interest in EPM26637 tenement in April 2020. With the grant of
EPM 26637, the Company is now responsible for managing all aspects of the tenement.
On the 30 May 2022, the Company appointed Mike Barr as Exploration Manager. Mr Barr has over 40
years’ experience within the mining and exploration industry as an explorationist, project manager and
consultant. In addition to his consultancy fee, Mr Barr was granted 3,000,000 GNMOF Listed Options and
3,000,000 GNMOB Listed Options on 2 June 2022.
On 31 May 2022, the Company announced the results of a reconnaissance sampling program at the
Douglas Creek prospect discovered high-grade gold-silver-copper mineralisation. The Company plans to
complete a systematic soil sampling grid with a more extensive rock chip sampling program to better
understand the extent of the mineralisation in June.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Significant changes in the state of affairs
Mr Simon Coxhell transitioned from Executive Technical Director role to a Non-Executive Director in order to
focus on his other business interests effective close of business 30 June 2022.
On 15 December 2021, Company’s 18,578,678 Listed Options (ASX: GNMOA) exercisable at $0.18 each expired
unexercised.
No other significant changes in the state of affairs of the Company occurred during the financial year.
Governance Arrangements
The Company seeks to ensure the reporting of Mineral Resources and Ore Reserves is in accordance with
Industry best practice and Listing Rules. All current Mineral Resources and Ore Reserves have been compiled
by 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
Mr Simon Peters tendered his resignation as Non-Executive Director, effective from 30 September 2022.
On 30 September 2022, the Company provided an update to the market in respect of its going forward strategy
and the focus on growth and expansion of its Camel Creek and Golden Cup Projects including the Douglas Creek
as well. In addition, the Company advised that as part of its strategy, that it will be proceeding to divest its interest
in the Big Rush Project with the considerations to the Company’s recent results from activities at Douglas Creek
and Camel Creek, the physical location of Big Rush Project being in proximity to Camel Creek and Golden Cup
Projects and future logistical concerns and the increased surety to the estimated environmental rehabilitation costs
(‘ERC’) for the historic mine workings in respect of Alphadale, being the 100% subsidiary, which owns the Big
Rush Project from the current level of $175,536 to approximately $4.3million. Given the time for payment of the
Alphadale ERC had been extended by the Scheme Manager until 24 January 2023, this has provided a window
of opportunity for the Board to divest Alphadale via a sale. The Group is thus proceeding with a sales campaign
with the intent of completing the sale such that the purchaser would assume the liability for payment of the surety
or liquidation of the subsidiary. In the event that the Group is unable to complete a sale of the subsidiary prior to
24 January 2023, the directors may elect to place Alphadale Pty Ltd into liquidation or alternatively, seek an
extension of time to make payment for the Alphadale ERC. Whilst the Company remains confident on the
divestment opportunity for the Big Rush Project, as part of good governance the Company has estimated and
recognised the increased environmental surety amount of approximately $4.1million in its 2022 accounts.
Reassessment of the environmental surety amount will occur during Company’s 2022 half year reporting.
The impact of Coronavirus (‘COVID-19’) pandemic is ongoing and while it has not significantly impacted the Group
up to 30 June 2022, 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.
There are no other 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.
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 unreasonable prejudice to the Group.
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Great Northern Minerals Limited
Directors' Report
30 June 2022
Non-Audit Services
There were no non-audit services provided by the auditors during the year (2021: Nil).
Auditors Independence Declaration
The lead auditors’ independence declaration for the year ended 30 June 2022 has been received and can be
found on page 21 of the financial report. The auditor William Buck Audit (WA) Pty Ltd continues in office in
accordance with Section 327 of the Corporations Act 2001.
Environmental Regulations
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 have considered compliance with the
National Greenhouse and Energy Reporting Act 2007 which requires entities to report on annual greenhouse gas
emissions and energy use. For the measurement period 1 July 2021 to 30 June 2022 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 (2021: Nil).
Company Secretary
Miss Aida Tabakovic was appointed as the Company 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 a
Postgraduate Degree in Business Law. Miss Tabakovic provides services to a number of ASX listed companies
specialising in financial accounting and reporting and corporate compliance. Miss Tabakovic has also been
involved in listing a number of junior exploration companies on the ASX.
Business Review
Operating Results
During the financial year, the Group recorded a consolidated loss of $6,927,148 (2021: $3,515,446) after providing
for income tax. The expenditure reflected the exploration activities during the year at the Group’s Golden Ant
Project and the Group’s recognition of an impairment loss in respect of the Big Rush project of $4.6 million.
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, 6 directors’ meetings were held. Attendances by each director during the year were as
follows:
Mr Cameron McLean
Mr Kim Robinson
Mr Simon Peters
Mr Simon Coxhell
13
Directors' Meetings
Eligible to
attend
Number
attended
6
6
6
6
6
5
6
6
Great Northern Minerals Limited
Directors' Report
30 June 2022
The key management personnel of the Group consisted of the following directors and other persons:
- Kim Robinson (Non-Executive Chairman)
- Cameron McLean (CEO & Managing Director)
- Simon Coxhell (Technical Director)
- Simon Peters (Non-Executive Director) Resigned effective 30 September 2022
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
Remuneration levels for the executives are competitively set to attract the most qualified and experienced
candidates, taking into account prevailing market conditions and the individual’s experience and qualifications.
During the period, the Group did not have a separately established remuneration committee. The Board is
responsible for determining and reviewing remuneration arrangements for the executive and non-executive
Directors.
The remuneration policy of Great Northern Minerals Limited has been designed to align director and executive
objectives with shareholder and business objectives by providing a fixed remuneration component 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's policy for determining the nature and amount of remuneration for the board members and senior
executives of the Group is as follows:
- The remuneration policy, setting the terms and conditions for the executive directors and other senior
executives was developed by the board and legal advisors. All executives receive a base salary (which is
based on factors such as length of 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 10%, and do not receive any other retirement benefits. Some individuals may
choose to sacrifice part of their salary to increase payments towards superannuation.
- All remuneration paid to directors and executives is valued at the cost to the Group and expensed. Shares
allocated to directors and executives are valued as the difference between the market price of those shares
and the amount paid by the director or executive. Options are valued using appropriate methodologies.
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 year. Fees for non-executive directors are not
linked to the performance of the Group. However, to align directors’ interests with shareholder interests, the
directors are encouraged to hold shares in the Company and can participate in the employee option plan.
14
Great Northern Minerals Limited
Directors' Report
30 June 2022
Remuneration Report (AUDITED)
Non-Executive Directors Remuneration
All Non-Executive Directors are entitled to receive up to $50,000 per annum for their roles as Directors of the
Company and the Chairman is entitled to receive up to $50,000 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 and otherwise in the execution of their duties as
Directors. 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
Non-Executive Director (appointed 1 April 2020 as Technical Director. Transitioned to Non-Executive
Director position effective 30 June 2022)
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. In his capacity as the Technical Director, Mr
Coxhell was entitled to receive Director’s Fee of $200,000 per annum (exclusive of statutory superannuation). Mr
Coxhell transitioned from his position as the Technical Director into a position of Non-Executive Director effective
30 June 2022. As a Non-Executive Director, Mr Coxhell’s remuneration as a Non-Executive Director will be in line
with Non-Executive Director’s fee disclosed at Non-Executive Director Remuneration section above.
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.
Share-Based Compensation
During the year, no listed options (2021: Nil) were granted to directors of Great Northern Minerals Limited or
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.
During the year no ordinary shares in the Company (2021: 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.
15
Great Northern Minerals Limited
Directors' Report
30 June 2022
Remuneration Report (AUDITED)
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.
Details of Remuneration
Details of remuneration of the directors and key management personnel of the group are set out below:
Short-term
Benefits
Post-
employment
Benefits
Share-based
Payments
Cash fees
and salary
$
Super-
annuation
$
Equity
Options/
Rights
$
$
Total
$
Share-based
Payments as a
percentage of
Remuneration
%
Performance
Related
%
50,000
50,000
40,000
40,000
90,000
90,000
200,000
200,000
195,867
200,000
395,867
400,000
485,867
490,000
-
-
-
-
-
20,000
19,000
19,587
19,000
39,587
38,000
39,587
38,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,000
50,000
40,000
40,000
90,000
90,000
-
-
-
-
-
-
220,000
219,000
215,454
219,000
435,454
438,000
525,454
528,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Year
2022
2021
2022
2021
2022
2021
Non-Executive
Directors
Kim Robinson
Simon Peters
Sub-Total Non-
Executive Directors
Executive Directors
Cameron McLean
Simon Coxhell (i)
2022
2021
2022
2021
Sub-Total Executives 2022
2021
2022
2021
TOTAL
(i)
Mr Coxhell transitioned from Executive Technical Director role to a Non-Executive Director role effective close of business 30
June 2022.
Mr Coxhell reduced his salary as he took one week off in November 2021.
16
Great Northern Minerals Limited
Directors' Report
30 June 2022
Remuneration Report (AUDITED)
Details of Remuneration (continued)
The following table provides employment details of persons who were, during the financial year, members of key
management personnel of the Group. The table also illustrates the proportion of remuneration that was fixed and
at risk.
Directors
Kim Robinson
Cameron McLean
Simon Coxhell
Simon Peters
Fixed
Remuneration
%
At Risk Long
Term
Remuneration
%
100
100
100
100
-
-
-
-
Other transactions with Key Management Personnel
There were no Key Management personnel related party transactions during the current financial year except for:
2022
- During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron McLean
has an interest in, repaid to Great Northern Minerals Limited an amount of $3,124 of the loan from previous period.
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 2022 was $2,343. Subsequent to the year end, Mineral Intelligence Pty
Ltd repaid the full outstanding balance to Great Northern Minerals.
- 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
2022 is $11,000. The funds are yet to be repaid to Mineral Intelligence Pty Ltd.
2021
- During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron McLean
has an interest in, repaid to Great Northern Minerals Limited an amount of $3,124. 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 2021 was $2,343. 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
2021 is $11,000. The funds are yet to be repaid to Mineral Intelligence Pty Ltd.
17
Great Northern Minerals Limited
Directors' Report
30 June 2022
Remuneration Report (AUDITED)
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 2022
Directors
Cameron McLean
Simon Peters
Simon Coxhell
Kim Robinson
Balance at
beginning of
year
Other changes during
the period (i)
Balance at
resignation date Balance at end
of year
17,256,980
2,932,360
1,503,759
3,503,759
25,196,858
7,496,000
3,333,000
3,333,000
-
14,162,000
-
-
-
-
-
24,752,980
6,265,360
4,836,759
3,503,759
39,358,858
(i)
On-market acquisitions, participation in Shareholder approved Placement.
Options over Equity Instruments Granted as Compensation
No Options over ordinary shares in the Company were granted as compensation to Key Management Personnel
during the year ended 2022 (2021 Nil).
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
Acquired
during the
period
Exercised
during the
period
Other
changes
during the
period (i)
Balance at
end of
period
Vested and
Exercisable
Vested and
Un-
exercisable
Cameron McLean
Simon Peters
Simon Coxhell
Kim Robinson
8,947,999
3,365,996
6,187,970
6,187,970
24,689,935
-
-
-
-
-
-
-
-
-
-
-
(38,462)
-
-
8,947,999
3,327,534
6,187,970
6,187,970
8,947,999
3,327,534
6,187,970
6,187,970
(38,462) 24,651,473 24,651,473
-
-
-
-
-
(i)
Expired unexercised during the period.
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.
18
Great Northern Minerals Limited
Directors' Report
30 June 2022
Remuneration Report (AUDITED)
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 2022:
Income
Net loss before tax
Net loss after tax benefit
Share Price at end of year (cents)
Basic and diluted loss per share (cents)
2022
$
2021
$
21,998
2020
$
315,861
2019
$
498,997
2018
$
4,259
290,357
(6,927,148) (3,515,446) (3,336,423) (3,052,814) (5,026,320)
(6,927,148) (3,515,446) (3,336,423) (3,052,814) (5,026,320)
0.5
(4.50)*
0.1
(1.57)*
0.019
(0.76)*
0.011
(0.37)
0.004
(0.47)
*Calculated on a post-consolidation basis. On 28 October 2019, the Company consolidated its issued capital on 10:1 basis.
End of Audited Remuneration Report
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 2022 has been received and can be
found on page 21 of the financial report.
Proceedings on Behalf of Company
No person has applied for leave of Court under s237 of the Corporations Act 2001 to bring proceedings on behalf
of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the period.
19
Great Northern Minerals Limited
Directors' Report
30 June 2022
Options
Unissued shares under option
At the date of this report, the unissued ordinary shares of Great Northern Minerals Limited under option are as
follows:
Details
Unlisted
Unlisted
Unlisted
Listed
Listed
Expiry
Date
19/11/2023
19/11/2023
19/11/2023
01/11/2022
01/07/2023
Exercise
Price
Number under
Option
Number of
Option Holders
$0.024
$0.029
$0.033
$0.01
$0.022
22,262,414
22,262,414
22,262,414
244,528,099
469,653,803
780,969,144
1
1
1
200
518
721
Shares issued on the exercise of options
There were no ordinary shares of the Company issued from the exercise of options during the financial year
ended 30 June 2022. No further shares were issued up to the date of this report from the exercise of options.
This report is signed in accordance with a resolution of the Board of Directors:
.................................................................................
Kim Robinson
Non-Executive Chairman
Dated this 21st October 2022
20
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 2022 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
Amar Nathwani
Director
Dated this 21st day of October 2022
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 2022
Other income
Interest income
Depreciation
Corporate and administration expenses
Finance expenses
Exploration and tenement costs
Impairment on exploration & evaluation expenditure
Net Loss before income tax
Income tax (expense)/benefit
Net Loss after income tax
Other comprehensive income:
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
Note
4
10,11
5
5
13
2022
$
1,800
2,459
(41,816)
(1,095,144)
(3,259)
(1,195,393)
(4,595,795)
2021
$
39,712
2,286
(44,213)
(1,202,733)
(10,801)
(2,299,697)
-
(6,927,148)
(3,515,446)
-
(6,927,148)
(3,515,446)
-
-
(6,927,148)
(3,515,446)
(6,925,387)
(1,761)
(3,505,941)
(9,505)
(6,927,148)
(3,515,446)
Total comprehensive loss for the year attributable to Owners of Great
Northern Minerals Limited
(6,925,388)
(3,505,941)
Total comprehensive loss for the year attributable to Non-Controlling
Interest
(1,761)
(9,505)
Attributable to owners of Great Northern Minerals Limited:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(0.47)
(0.47)
(0.368)
(0.368)
The above consolidated income statement should be read in conjunction with the accompanying notes.
22
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Financial Position
As at 30 June 2022
Note
2022
$
2021
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Prepayments
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Right of Use asset
Exploration and evaluation assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Lease liabilities
Provision
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Lease liabilities
Provision
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
15
11
15
16
17
18
18
2,748,871
71,437
29,125
1,896,387
174,266
198,780
2,849,433
2,269,433
78,297
40,415
3,231,691
91,133
69,395
1,491,475
3,350,403
1,652,003
6,199,836
3,921,436
179,310
33,319
4,345,852
120,983
30,260
-
4,558,481
151,243
11,669
44,977
2,218,108
229,450
2,229,777
274,427
6,788,258
425,670
(588,422)
3,495,766
86,341,207
702,511
83,498,248
702,511
(86,405,545) (79,480,158)
4,720,601
(1,224,835)
638,173
(1,226,595)
TOTAL EQUITY
(588,422)
3,495,766
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
23
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
2022
Balance at 1 July 2021
Loss for the year
Other comprehensive income:
Contributed Equity
$
Share Based
Payments
Reserve
$
Accumulated
Losses
$
Non-controlling
Interest
$
Total
$
83,498,248
-
-
702,511
-
-
(79,480,158)
(6,925,387)
-
(1,224,834)
(1,761)
-
3,495,766
(6,927,148)
-
Total comprehensive income for the year
-
Transaction with owners, recorded directly in equity
Shares issued during the year (net of costs)
2,842,560
Issue of Options during the year
Options expired during the year
Balance at 30 June 2022
400
-
-
-
-
-
(6,925,387)
(1,761)
(6,927,148)
-
-
-
-
-
-
2,842,560
400
-
86,341,207
702,511
(86,405,545)
(1,226,595)
(588,422)
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
24
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2022
2021
Balance at 1 July 2020
Loss for the year
Other comprehensive income:
Contributed Equity
$
Share Based
Payments Reserve
$
Accumulated
Losses
$
Non-controlling
Interest
$
Total
$
79,834,625
-
295,056
-
-
(76,158,094)
(3,505,941)
-
(1,215,329)
(9,505)
-
2,756,258
(3,515,446)
-
Total comprehensive income for the year
-
Transaction with owners, recorded directly in
equity
Shares issued during the year (net of costs)
3,663,623
-
-
Issue of Options during the year
Options expired during the year
Balance at 30 June 2021
-
-
591,332
(183,877)
(3,505,941)
(9,505)
(3,515,446)
-
-
183,877
-
-
-
3,663,623
591,331
-
83,498,248
702,511
(79,480,158)
(1,224,835)
3,495,766
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
25
Great Northern Minerals Limited
ABN 22 000 002 111
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
Payments for exploration and evaluation
Interest received
Interest paid
R&D refund received
Note
2022
$
2021
$
(455,862)
(1,500,306)
2,459
(3,259)
-
(794,454)
(3,335,257)
2,286
(4,761)
155,720
Net cash outflow from operating activities
19(a)
(1,956,968)
(3,976,466)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of exploration assets/tenements
Acquisition of property, plant and equipment
Net cash outflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares and options
Transaction costs
Repayment of lease liabilities
Net cash inflows from financing activities
-
-
-
(849,450)
(4,377)
(853,827)
3,000,000
(157,040)
(33,508)
4,641,703
(392,924)
(32,158)
2,809,452
4,216,621
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
852,484
1,896,387
(613,671)
2,510,058
8
2,748,871
1,896,387
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
26
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
1 Corporate Information
The consolidated financial report of Great Northern Minerals Limited for the year ended 30 June 2022 was
authorised for issue in accordance with a resolution of the Directors on 21 October 2022 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 2022. 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.
27
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(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) Government Grants
Assistance received from the government by way of grant or other forms of assistance designed to
provide an economic benefit to the Group, is presented in the statement of financial position as deferred
income, in instances where the grant is related to assets. In all other cases, grant money is presented
in the profit and loss as other income. Grants are recognised when there is reasonable assurance that
conditions will be complied with and the grant will be received.
(e)
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. Consequently, 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.
(f)
Impairment of Non-Financial 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.
28
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(g) 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.
(h) 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
(i)
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 re-measurement
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 re-measurement of lease liabilities.
29
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(j)
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.
(k)
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.
30
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(l)
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, its 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.
(m) 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.
31
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(n) 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.
(o)
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.
(p) 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.
(q) 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.
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.
32
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(r) 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.
(s) 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.
Exploration and evaluation costs
Exploration and evaluation costs relating to acquisition of tenements 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.
Rehabilitation provision
Upon finalisation of the acquisition of the Golden Ant Project (refer to Notes 13 and 15), the Group
assumed the rehabilitation obligations in respect to the tenements and a $229,450 bond for
rehabilitation costs held by Queensland’s Department of Environment and Science (‘DES’). The
Queensland Government has recently undergone the process of redesigning its rehabilitation
requirements and implemented a new Estimated Rehabilitation Cost scheme. The Group is currently
reviewing its obligations under the revised scheme. As a result, the Group estimated and recognised
a larger provision (refer to note 15 for details) for which the Group may need to raise additional capital
to fund. Rehabilitation provision requires significant estimates and assumptions as there are many
transactions and other factors that will ultimately affect this liability to rehabilitate the exploration sites.
Factors that will affect this liability include changes in regulations, prices fluctuations, changes in
technology, changes in timing of cash flows which are based on life of the site or the term of the
exploration licence and changes to discount rates. When these factors change or are known in the
future, such differences will impact rehabilitation provision in the period in which it becomes known or
becomes certain.
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.
33
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(s) Critical accounting estimates and judgements (continued)
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 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.
(t)
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.
(u) Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result
of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account
the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions
are discounted using a current pre-tax rate specific to the liability. The increase in the provision
resulting from the passage of time is recognised as a finance cost.
(v) New accounting standards for application in the current period
The following Accounting Standards and Interpretations are most relevant to the Group:
During the year ended 30 June 2022, the Company has adopted all of the new or amended Standards
and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant and
mandatory for the current reporting period. Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been early adopted.
The Directors have determined that there is no material impact of the new and revised Standards and
Interpretations on the Company and, therefore, no material change.
New Accounting Standards and Interpretations Not Yet Mandatory or Early Adopted
At the date of authorisation of the financial statements, the Company has not applied the new and
revised Australian Accounting Standards, Interpretations and amendments that have been issued but
are not yet effective. Based on a preliminary review of the standards and amendments, the Directors
do not anticipate a material change to the Company’s accounting policies, however further analysis
will be performed when the relevant standards are effective.
34
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
(w) Going Concern
For the year ended 30 June 2022 the Group recorded a consolidated loss of $6,927,148 (2021:
$3,515,446) and at that date the net operating cash out flows were $1,956,968 (2021: $3,976,466).
The Group had net current liabilities of $1,709,048 (2021 net current assets: $2,118,190). The
expenditure reflected the Group’s acquisition of tenements 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. Furthermore, the Group recognised a rehabilitation provision of $6.4 million relating to
the estimated environmental rehabilitation cost increase in respect of its Big Rush, Golden Cup and
Camel Creek Projects. On 12 September 2022, Alphadale Pty Ltd, the 100% owned subsidiary which
owns the Big Rush Project received a notice for an additional payment of $4.1m from Queensland
Treasury to bring the surety for the estimated rehabilitation costs for the historic mine workings at Big
Rush to $4.3m. Following approaches to the Scheme Manager by the Board, the date for payment of
the Alphadale ERC has now been extended by the Scheme Manager to 24 January 2023. The Group
has advised of its strategy going forward and focus on the growth and expansion of its Camel Creek
and Golden Cup Projects including its recently granted Douglas Creek Project. Given the time for
payment of the Alphadale ERC had been extended by the Scheme Manager until 24 January 2023,
this has provided a window of opportunity for the Board to divest Alphadale via a sale. The Group is
thus proceeding with a sales campaign with the intent of completing the sale such that the purchaser
would assume the liability for payment of the surety or liquidation of the subsidiary. The Company’s
directors have received advice that under the Environmental Protection Act 1994 (QLD) the liability for
payment of the surety attaches directly to Alphadale and not to the Company or its other controlled
entities. Under the Act the Department of Environment and Science (QLD) has powers to issue an
environmental protection order to Great Northern Minerals Limited subject to formal guidelines which
must be met. The directors have received advice that it is not a power commonly exercised by the
Department. The directors have no knowledge of the DES expressing an intent to issue an EPO to
GNM. In the event that the Group is unable to complete a sale of the subsidiary prior to 24 January
2023, the directors may elect to place Alphadale Pty Ltd into liquidation or alternatively, seek an
extension of time to make payment for the Alphadale ERC. Should a decision be made to place
Alphadale Pty into liquidation, Great Northern Minerals may be required to provide a limited indemnity
to the liquidator as a condition of their appointment for the liquidator’s fees.
These conditions indicate a material uncertainty exists 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 2022 the Group had cash on hand of $2,748,871 to continue the exploration of its assets
and meet its commitments. Based on a cashflow forecast prepared by management, the Directors have
forecasted that a capital raising will be required to be undertaken by the Company over the coming 12
months.
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.
35
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
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
- Covid-19 ATO Cash Boost
- Other income(i)
(i) Rental income.
5 Corporate and administration costs
- Interest expense*
- Marketing expenses
- Compliance & regulatory fees
- Employee benefit expenses
- Legal fees
- Consultants fees
- 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
36
2022
$
33,643
33,643
2022
$
-
1,800
1,800
2021
$
30,037
30,037
2021
$
39,712
-
39,712
2022
$
3,259
91,703
276,445
525,454
14,088
37,965
149,489
2021
$
10,801
103,590
252,064
632,740
18,428
67,500
128,411
1,098,403
1,213,534
2022
$
-
-
2021
$
-
-
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
6 Income Tax Expense / (Benefit) (continued)
(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
(6,927,148)
(3,515,446)
Prima facie tax benefit on loss from ordinary activities before income
2022
$
2021
$
tax at 30% (2021: 30%)
- the Group
Add/Less tax effect of:
-non-deductible expenses
-losses not brought to account
-derecognition of previously recognised tax losses
-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
(2,078,144)
(1,054,634)
(2,078,144)
(1,054,634)
1,379,396
2,455
703,712
1,110,802
18,659
-
-
(11,944)
17,390
(14,640)
(41,013)
(32,039)
-
-
130,644
5,124,494
3,209,831
186,831
4,391,444
3,209,831
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.
37
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
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):
2022
$
6,925,388
2021
$
3,505,941
6,925,388
3,505,941
2022
number
2021
number
Weighted average number of ordinary shares outstanding during the year
number used in calculating:
Basic EPS
Diluted EPS
1,459,735,908
1,459,735,908
951,869,979
951,869,979
*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 2022 or 2021).
As the Company is in a loss position, the options outstanding at 30 June 2022 have no dilutive effects on the
earnings per share calculation.
8 Cash and Cash Equivalents
Cash at bank
Short-term bank deposits
Reconciliation of Cash
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
Note
8(a)
2022
$
2,700,675
48,196
2021
$
1,849,224
47,163
2,748,871
1,896,387
2022
$
2021
$
2,748,871
1,896,387
2,748,871
1,896,387
As at 30 June 2022 there is a restriction on available cash of $48,196 (2021: $47,163). The Group has a
number of short term deposits held as a security for various active North Queensland exploration licences.
(a)
Short term deposit
Short term deposits are held as a security for various bank guarantees.
38
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
9 Trade and Other Receivables
CURRENT
Other receivables
.
Other Receivables
Note
2022
$
2021
$
9
71,437
174,266
71,437
174,266
Other receivables represent receivables due from the Australian Taxation Office for BAS Quarterly Returns
in the total amount of $35,044, office bond in the amount of $23,687, and other immaterial receivable
amounts totalling $12,706, 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
(a) Movements in Carrying Amounts
2022
$
2021
$
133,323
(55,027)
78,297
78,297
133,323
(42,190)
91,133
91,133
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
2022
$
2021
$
91,133
-
-
(12,835)
78,297
101,951
4,377
-
(15,195)
91,133
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Balance at the end of the year
39
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
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
2022
$
69,395
-
(28,980)
2021
$
98,375
-
(28,980)
40,415
69,395
2022
$
75,237
-
3,259
(33,508)
44,988
2021
$
102,637
-
4,761
(32,158)
75,237
33,319
11,669
30,260
44,977
28,980
3,259
32,239
28,980
4,761
33,741
Balance at the beginning of period
Right-of-use asset additions
Depreciation expense
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
40
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
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
GREENPOWER GROUP PTY LTD
GREENPOWER GOLD PTY LTD
NORTHERN EXPLORATION PTY
LTD
SAWELLS PTY LTD
GREENGROWTH ENERGY PTY
LTD
GREENPOWER CHEMICALS PTY
LTD
GREENPOWER GUYANA PTY LTD
ION MINERALS PTY LTD
GOLDEN ANT PTY LTD
ALPHADALE PTY. LTD
Investment
Investment
Exploration
Exploration
Non-trading
Non-trading
Investment
Exploration
Exploration
Exploration
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
PERCENTAGE
OWNED
2022
100%
100%
100%
PERCENTAGE
OWNED
2021
100%
100%
100%
100%
95%
100%
100%
40%
100%
100%
100%
95%
100%
100%
40%
100%
100%
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.
Summarised Statement of Financial Position
2022
$
7,750
(967,755)
(960,005)
2021
$
8,375
(965,446)
(957,071)
-
-
-
-
-
-
-
(15,841)
-
(15,841)
(9,505)
Current
Assets
Liabilities
Total Current Net Assets
Non-Current
Assets
Liabilities
Total Non-Current Net Assets
Summarised Statement of Profit or Loss and Other Comprehensive Income
Revenue
Loss before income tax
-
(2,935)
Income tax
Total comprehensive loss for the year
Total comprehensive loss attributable to NCI
-
(2,935)
(1,761)
41
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
13 Exploration and Evaluation Assets
Exploration and evaluation permits
Exploration expenditure capitalised
A reconciliation of the carrying amount of exploration and evaluation
expenditure is set out below:
Carrying amount at the beginning of the year
Acquisition/security costs incurred during the year
Impairment of exploration and evaluation expenditure
Rehabilitation Provision Asset
Exploration Expenditure Consideration Capitalised*
Deferred (Reversal of) consideration capitalised*
Carrying amount at the end of the year
2022
$
2021
$
3,231,691
1,491,475
1,491,475
1,500
(4,595,795)
6,334,511
-
-
3,231,691
562,076
-
-
229,450
849,950
(150,000)
1,491,475
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 $849,950, 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 $849,950 during
August 2020. In assessing the carrying values of the Golden Ant Project during the 2022 year, the Group
impaired a total $425,479 of its previously capitalised exploration expenditure carrying value attributable to
the Golden Ant Projects. The assessment was measured against Company’s ounces per tonne for each
project area and in line with the JORC 2012 Report.
Upon finalisation of the acquisition of the Golden Ant Project, the Group assumed the rehabilitation
obligations in respect to the tenements and a $229,450 bond for rehabilitation costs held by Queensland’s
Department of Environment and Science (‘DES’). The Queensland Government has recently undergone the
process of redesigning its rehabilitation requirements and implemented a new Estimated Rehabilitation Cost
scheme. The Group is currently reviewing its obligations under the revised scheme and its forward looking
strategy to focus on the growth and expansion of the Camel Creek and Golden Cup Project and divestment
of its Big Rush Project. Given the time for payment of the Alphadale ERC had been extended by the Scheme
Manager until 24 January 2023, this has provided a window of opportunity for the Board to divest Alphadale
via a sale. The Group is thus proceeding with a sales campaign with the intent of completing the sale such
that the purchaser would assume the liability for payment of the surety or liquidation of the subsidiary. As at
the 2022 financial year the Group has estimated and recognised a larger rehabilitation provision, totalling
$6,563,961 for which the Group may need to raise additional capital to fund. As there has been a significant
increase in the rehabilitation provision relating to the Golden Ant Project, and as part of the impairment
assessment undertaken pursuant to AASB 136, the Company has impaired $4,170,316.42 of its the Big
Rush Project as at 30 June 2022. The recoverability of the carrying amount is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
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.
42
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
14 Trade and Other Payables
CURRENT
Trade payables
Other payables
15 Provision
CURRENT
Provision for exploration asset rehabilitation
NON-CURRENT
Provision for exploration asset rehabilitation
2022
$
2021
$
119,954
59,355
179,310
91,283
29,700
120,983
2022
$
2021
$
4,345,852
4,345,852
-
-
2,218,108
2,218,108
229,450
229,450
The movement in the provision for exploration asset rehabilitation is set out below:
CURRENT
Balance at beginning of period
Arising during the year
Acquired rehabilitation (Golden Ant Project)
Reclassification to / (from) current provision
Balance at the end of period
NON-CURRENT
Balance at beginning of period
Arising during the year
Acquired rehabilitation (Golden Ant Project)
Reclassification to / (from) non-current provision
Balance at the end of period
2022
$
2021
$
-
4,170,316
-
175,536
4,345,852
229,450
2,164,194
-
(175,536)
2,218,108
-
-
-
-
-
-
-
229,450
-
229,450
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
Provisions are made for the estimated cost of rehabilitation, restoration and dismantling relating to areas
disturbed during the mine’s construction up to the reporting date, but not yet rehabilitated. The provision has
been made in full for all the disturbed areas at the reporting date based on current estimates of costs to
rehabilitate such areas, discounted to their present value based on expected future cash flows. Changes in
estimates are dealt with on a prospective basis as they arise. Changes in the liability relating to rehabilitation
provision are added to or deducted from the related assets, other than the unwinding of discount on
provisions, which is recognised in the statement of profit and loss.
43
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
15 Provision (continued)
There is some uncertainty as to the extent of rehabilitation obligations that will be incurred due to the impact
of potential changes in environmental legislation and many other factors (including future developments,
changes in technology and price increases). Rehabilitation provisions are adjusted for changes in estimates.
Changes in estimates are dealt with on a prospective basis as they arise. Adjustments to the estimates
amount and timing of future rehabilitation and restoration cashflows are a normal occurrence in light of the
significant judgements and estimates involved.
16
Issued Capital
Movements in ordinary share capital
No. of shares
$
Year ended 30 June 2022
At the beginning of year
Shares issued during the year
Cost of issuing shares
Balance at 30 June 2022
Year ended 30 June 2021
At the beginning of year
Shares issued during the year
Cost of issuing shares
Balance at 30 June 2021
1,209,050,976
500,000,000
1,709,050,976
83,498,248
3,000,000
(157,440)
86,340,808
822,087,117
386,963,859
-
1,209,050,976
79,834,625
4,641,705
(978,082)
83,498,248
The Company has no authorised share capital or par value in respect of its issued shares.
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 2022 financial year, the Group's strategy,
which was unchanged from 2021, was to maintain minimum borrowings outside of trade and other payables.
44
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
17 Reserves
Share Based Payments Reserve
Total Reserves
Share Based Payments Reserve
Opening balance
Options expired
Options issued during the year
Total Reserves
Share Based Payments Reserve
2022
$
702,511
2021
$
702,511
702,511
702,511
$
702,511
-
-
295,056
(183,877)
591,332
702,511
702,511
702,511
702,511
The share-based payments reserve records items recognised as expenses on valuation of share options
issued to employees and advisers for capital raising purposes. 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.
During the year no unlisted options and 52,000,000 listed options were issued and vested to advisors in
respect of the capital raisings which have been treated as a cost of equity and the listed options issued to the
contractors have been treated as a cost for services rendered.
Options at 1 July
Options issued during the year
Expiry of options during the year
Options at 30 June
2022
$
2021
$
702,511
295,056
-
-
591,332
(183,877)
702,511
702,511
45
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
17 Reserves (continued)
Summary of options granted as share based payments
The following table illustrates the number and movements in share options under share based payments:
Outstanding at the beginning of the year
Granted during the year
Exercised during the year
Lapsed/cancelled during the year
Consolidation of issued capital on 10:1 basis
Outstanding at the year end
Exercisable at the year end
2022
Number
2021
Number
137,787,242 52,600,000
- 86,787,242
-
-
-
-
-
(1,600,000)
-
-
137,787,242 137,787,242
Weighted average remaining contractual life of share options
The weighted average remaining contractual life for the share options outstanding as at 30 June 2022 is 0.75
years (2021: 1.24 years).
Range of exercise price of share options
The exercise price for options outstanding at the end of the year is $0.01 to $0.033 (2021: $0.01 to $0.033).
Weighted average fair value of share options
The weighted average fair value of options granted during the year is $nil (2021: $591,332).
Share option valuation
The fair value of the equity-settled listed share options granted under the share based payments is valued
at the date of grant as the market price of the listed options as at grant date
The fair value of the equity-settled unlisted 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.
46
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
18
Accumulated Losses
Accumulated losses
Opening balance
Net loss for the period attributable to Owners of Parent
Reclassification adjustments:
- Options lapsed transferred from reserves
Total
2022
$
2021
$
(79,480,158)
(6,925,387)
(76,158,094)
(3,505,941)
-
183,877
(86,405,545)
(79,480,158)
19 Cash Flow Information
(a) Reconciliation of Cash Flow from Operations with Loss after Income Tax
Net loss for the year
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss
Depreciation
Share based payments
Impairment of exploration assets
Impairment of receivables
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries
Decrease/(Increase) in receivables
(Decrease)/Increase in trade payables and accruals
Net cash (outflow) from operating activities
(b) Non-Cash Financing and Investing Activities
During the year the Group had no non-cash financing and investing activities
2022
$
(6,927,148)
2021
$
(3,515,446)
41,816
-
4,595,795
-
44,213
-
-
-
272,484
60,085
85,174
(590,407)
(1,956,968)
(3,976,466)
47
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
20 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
2022
$
2021
$
1,569,923
1,270,934
1,569,923
1,270,934
501,408
964,475
104,040
1,569,923
370,721
758,018
142,195
1,270,934
*During 2022 financial year, the Group spent $1,098,403 on granted tenement licences and $4,273 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.
21 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
2022
$
485,867
39,587
-
2021
$
594,740
38,000
-
525,454
632,740
(d)
Transactions and balances with related parties
2022
- During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron
McLean has an interest in, repaid to Great Northern Minerals Limited an amount of $3,124 of the loan
from the previous period. 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 2021 was $2,343.
Subsequent to the year end, Mineral Intelligence Pty Ltd repaid the full balance to Great Northern
Minerals.
- 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 2022 is $11,000. The funds are yet to be repaid to
Mineral Intelligence Pty Ltd.
48
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
21 Related Party Transactions (continued)
2021
- During the financial year, Mineral Intelligence Pty Ltd, a Company which Managing Director Cameron
McLean has an interest in, repaid to Great Northern Minerals Limited an amount of $3,124. 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 2021 was $2,343. 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 2021 is $11,000. The funds are yet to be repaid to Mineral
Intelligence Pty Ltd.
22 Contingent liabilities and contingent assets
Contingent Liabilities
The Group had contingent liabilities at 30 June 2022 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 2022 was $32,660 with a financial
institution (30 June 2021: $32,660);
Contingent Assets
The Group had no contingent assets at 30 June 2022.
23 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.
49
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
23 Financial Risk Management (continued)
(a)
Financial Risks
(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.
(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. The Group did not have any undrawn facilities at its disposal as at
reporting date. The table below reflects the Group’s undiscounted contractual maturity analysis for
financial liabilities and receivables. Balances due within 12 months equal their carrying balances as
the impact of discounted cashflows is not significant.
Contractual maturities of financial liabilities and financial assets
Details
30 June 2022
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Accrued expenses
Provision (ERC surety)
Net Financial Liability
30 June 2021
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Accrued expenses
Net Financial Assets
<1 Year
$
1-2
Years
$
2-5
Years
$
>5
Years
$
Total
$
Carrying
Amount
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,748,871
71,437
2,748,871
71,437
(119,955)
(59,355)
(4,345,852)
(1,704,874)
(119,955)
(59,355)
(4,345,852)
(1,704,874)
1,896,387
174,266
1,896,387
174,266
(91,283)
(29,700)
1,949,670
(91,283)
(29,700)
1,949,670
2,748,871
71,437
(119,955)
(59,355)
(4,345,852)
(1,704,874)
1,896,387
174,266
(91,283)
(29,700)
1,949,670
50
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
24 Events after the Reporting Period
Mr Simon Peters tendered his resignation as Non-Executive Director, effective from 30 September 2022.
On 30 September 2022, the Company provided an update to the market in respect of its going forward
strategy and the focus on growth and expansion of its Camel Creek and Golden Cup Projects including the
Douglas Creek as well. In addition, the Company advised that as part of its strategy, that it will be proceeding
to divest its interest in the Big Rush Project with the considerations to the Company’s recent results from
activities at Douglas Creek and Camel Creek, the physical location of Big Rush Project being in proximity to
Camel Creek and Golden Cup Projects and future logistical concerns and the increased environmental surety
in respect of the Big Rush Project from the current level of $175,536 to approximately $4.3million. Given the
time for payment of the Alphadale ERC had been extended by the Scheme Manager until 24 January 2023,
this has provided a window of opportunity for the Board to divest Alphadale via a sale. The Group is thus
proceeding with a sales campaign with the intent of completing the sale such that the purchaser would
assume the liability for payment of the surety or liquidation of the subsidiary. In the event that the Group is
unable to complete a sale of the subsidiary prior to 24 January 2023, the directors may elect to place
Alphadale Pty Ltd into liquidation or alternatively, seek an extension of time to make payment for the
Alphadale ERC. Whilst the Company remains confident on the divestment opportunity for the Big Rush
Project, as part of good governance the Company has estimated and recognised the increased
environmental surety amount of approximately $4.1million in its 2022 accounts. Reassessment of the
environmental surety amount will occur during Company’s 2022 half year reporting.
The impact of Coronavirus (‘COVID-19’) pandemic is ongoing and while it has not significantly impacted the
Group up to 30 June 2022, 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.
There are no other 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.
25 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 $1,492,976. Refer to note 13.
51
Great Northern Minerals Limited
ABN 22 000 002 111
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2022
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.
Consolidated Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Share Based Payments Reserve
Total Equity
Consolidated Income Statement
Total loss for the year
Total comprehensive loss
2022
$
2021
$
2,774,238
4,010,896
1,958,877
1,898,011
6,785,134
3,856,888
367,746
11,669
86,695
274,427
379,416
361,122
6,405,719
3,495,766
86,341,201
83,498,241
(80,637,994) (80,704,986)
702,511
702,511
6,405,719
3,495,766
(2,087,208)
(1,327,266)
(2,087,208)
(1,327,266)
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 22 of this financial report.
52
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. giving a true and fair view of the financial position of the Consolidated Group as at 30 June 2022 and of
its performance for the year ended on that date; and
b. 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
Non-Executive Chairman
Dated: 21st October 2022
53
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 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and 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 2022 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(w) in the financial report, which indicates the Group incurred a net loss of
$6,927,148 and net operating cash out flows $1,956,968 during the year ended 30 June 2022 and as of
that date the Group had net current liabilities of $1,709,048. As stated in Note 2(w), these events or
conditions indicate that a material uncertainty exists that may cast significant doubt on 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.
REHABILITATION PROVISION
Area of focus
Refer also to notes 2(s) & 15
How our audit addressed it
On 12 September 2022, the Queensland
Government issued an invoice to increase the
Estimated Rehabilitation Cost (ERC) scheme
surety by $4.1m to $4.3m for the Big Rush project
held by the Group's subsidiary Alphadale Pty Ltd.
Management has consequently increased the
project rehabilitation provision by the same amount
as at 30 June 2022. As a result, the ERC for
Golden Cup and Camel Creek have also been
reassessed in the current period resulting in an
$2.1m increase in the related rehabilitation
provision as at 30 June 2022.
This was a key audit matter because of the
significance of the ERC provision as at 30 June
2022.
Our audit procedures included:
— Discussing the basis of the assessment by the
Queensland Department of Environment and
Science with the directors and the
environmental expert engaged by the Group.
— Obtaining and evaluating a report from the
environmental expert.
— Evaluating and challenging management’s
assessment as to the basis for the
measurement of the rehabilitation provision.
— Reviewing copies of the most recent
correspondence between the Group and the
Department of Environment and Science.
— Assessing the adequacy of the Group’s
disclosure in the annual financial report in
respect of the rehabilitation provision.
CARRYING VALUE OF EXPLORATION COSTS CAPITALISED
Area of focus
Refer also to notes 2(j), 2(s) & 13
How our audit addressed it
The Group has capitalised the costs of the
acquisition of the Group's exploration projects.
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
Our audit procedures included:
— Assessing management’s plans for the Group’s
exploration projects
— Evaluating the directors’ assessment as to
whether there are any indicators of impairment
of capitalised costs.
— Assessing the planned level of exploration
expenditure in respect of the Group’s projects to
a cash flow forecast prepared by management.
— An assessment of the adequacy of the Group’s
disclosures in respect of capitalised exploration
expenditure.
2
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 audit matter because of the
significance of the capitalised exploration and
evaluation assets at 30 June 2022.
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 2022 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.
3
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.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 in pages 14 to 19 of the directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Great Northern Minerals Limited, for the year ended 30 June
2022, 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
Amar Nathwani
Director
Dated this 21st day of October 2022
4
Great Northern Minerals Limited
ABN 22 000 002 111
Additional Information for Public Listed Companies
For the Year Ended 30 June 2022
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 27 September 2022.
Distribution of Shareholders
Holding Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of
Holders
22
26
38
339
1,151
Number of
Shares
4,883
88,002
310,840
24,974,452
1,683,672,799
1,576
1,709,050,976
The number of shareholders holding less than a marketable parcel is 504.
Top 20 Largest Shareholders
Rank
Holder Name
Securities
%
1
2
3
4
5
6
7
8
9
9
11
12
13
14
15
16
17
18
19
20
20
20
JETOSEA PTY LTD
MR GAVIN JEREMY DUNHILL
EQUITY TRUSTEES LIMITED
MR ERNST KOHLER
ROOKHARP CAPITAL PTY LIMITED
MR POH SENG TAN
MR ALISTAIR WILLIAMS
SUNSET CAPITAL MANAGEMENT PTY LTD
MS NICOLE GALLIN + MR KYLE HAYNES
BUSHWOOD NOMINEES PTY LTD
PANDORA NOMINEES PTY LTD
GLM KOPPA PTY LTD
MR CHRISTOPHER MACKO
MR DAMIAN ROBERT WARD
STOJ INVEST PTY LIMITED
MRS YAN WANG
SILVER CAPITAL PTY LTD
CITICORP NOMINEES PTY LIMITED
DEVELOPMENT AND FINANCE PTY LTD
GRANT + SONIA PTY LTD
MR AGOSTINO ARMANDO GUIZZO
MR GRANT MORRIS
84,198,113
84,000,000
63,991,229
57,816,599
33,496,732
33,000,000
30,163,691
26,598,963
25,000,000
22,370,726
13,565,384
12,000,000
12,000,000
11,785,385
11,660,434
11,398,693
10,950,000
10,448,949
10,085,715
10,000,000
10,000,000
10,000,000
4.93
4.92
3.74
3.38
1.96
1.93
1.76
1.56
1.46
1.31
0.79
0.70
0.70
0.69
0.68
0.67
0.64
0.61
0.59
0.59
0.59
0.59
Top holders of FULLY PAID ORDINARY SHARES (Total)
594,530,613
34.79
58
Great Northern Minerals Limited
ABN 22 000 002 111
Additional Information for Public Listed Companies
For the Year Ended 30 June 2022
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 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
20 Largest Option holders for ‘GNMOB’ Listed Options exercisable at $0.022 on 1 July 2023
Rank
Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
10
10
13
14
15
16
17
18
19
20
JETOSEA PTY LTD
CELTIC CAPITAL PTY LTD
EQUITY TRUSTEES LIMITED
KALCON INVESTMENTS PTY LTD
MS CHUNYAN NIU
STOJ INVEST PTY LIMITED
MR MALCOLM WILLIAM GREEN
SUNSET CAPITAL MANAGEMENT PTY LTD
MR ERNST KOHLER
MS NICOLE GALLIN + MR KYLE HAYNES
MAVERICK EXPLORATION PTY LTD
RHYD-Y-FELIN PTY LTD
MR DANIEL AARON HYLTON TUCKETT
ZAMAN PERAK PTY LTD
GOFFACAN PTY LTD
MR DALE MAURICE RAYNES
ROOKHARP CAPITAL PTY LIMITED
MR PHENG HONG CHUA
MR ANDREW EDWARD BARON
MR PETER ALEXANDER FRIEDRICH
36,516,683
24,269,000
20,000,000
16,750,000
12,420,406
12,000,000
11,571,429
11,000,000
10,070,561
10,000,000
10,000,000
10,000,000
9,753,401
8,750,000
8,500,000
8,091,320
8,000,000
7,426,857
6,253,290
5,595,237
7.78
5.17
4.26
3.57
2.64
2.56
2.46
2.34
2.14
2.13
2.13
2.13
2.08
1.86
1.81
1.72
1.70
1.58
1.33
1.19
Top 20 holders of LISTED OPTIONS EXPIRING 01/07/2023 @ $0.022
(Total)
246,968,184
52.59
59
Great Northern Minerals Limited
ABN 22 000 002 111
Additional Information for Public Listed Companies
For the Year Ended 30 June 2022
20 Largest Option holders for ‘GNMOF’ Listed Options exercisable at $0.01 on 1 November 2022
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
13
13
16
17
18
19
20
JETOSEA PTY LTD
MR SIMON FRANZ COHN
MR PAUL SIMON HALLION + MR PATRICK
MICHAEL HALLION + MISS BRIDGET ANNE
HALLION
MS CHUNYAN NIU
ESOTERIC WEALTH MANAGMENT PTY LTD
MR MARK ANDREW WING YOUNG + MS NOREEN
HALLION + MR PAUL SIMON HALLION
KALCON INVESTMENTS PTY LTD
GOFFACAN PTY LTD
MR SCOTT GREGORY RAE + MRS FIONA MARIA
RAE
MR PAUL HALLION
M & K KORKIDAS PTY LTD
MR ALISTAIR WILLIAMS
CALE CONSULTING PTY LTD
COXSROCKS PTY LTD
KIM ROBINSON
MS FURONG ZHANG
MR WILLIAM MARK PALMER + MRS PATRICIA
DAWN GREGORY
GOLDEN SUNRISE (AUST) PTY LTD
MR YANG YE
MR ALFREDO VARELA
Units
31,528,441
17,000,000
16,000,000
14,449,450
11,582,733
10,860,303
10,000,000
9,052,599
8,410,735
7,000,000
6,900,000
6,833,333
6,000,000
6,000,000
6,000,000
5799,900
4,283,832
3,599,900
3,500,000
3,200,000
% Units
12.89
6.95
6.54
5.91
4.74
4.44
4.09
3.70
3.44
2.86
2.82
2.79
2.45
2.45
2.45
2.37
1.75
1.47
1.43
1.31
Totals: Top 25 holders of LISTED OPTIONS EXPIRING 01/11/2022
@ $0.01 (Total)
188,001,226
76.88
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
- Each ordinary share is entitled to one vote when a poll is called, otherwise each
member present at a meeting or by proxy has one vote on a show of hands.
Unquoted Securities
The Company has the following unquoted securities on issue as at the date of this report.
-
-
-
22,262,414 options exercisable at $0.024 on or before 19 November 2023
22,262,414 options exercisable at $0.029 on or before 19 November 2023
22,262,414 options exercisable at $0.033 on or before 19 November 2023
60
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
Queensland
Guyana
Queensland
Golden Ant – Big Rush
Golden Ant – Big Rush
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
Camel Creek*
Turesi PGGS
Red Mountain
EPM27522
EPM27283
ML10168
ML10175
ML10192
ML4536
ML4522
ML4523
ML4524
ML4525
ML4534
ML4540
ML6952
EPM26637
Guyana – Turesi
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
EPM28249
Application Only
*Joint venture with NorthX Pty Ltd (refer to ASX announcements dated 1 April 2020 and 2 May 2022 respectively).
61