NUAL REPORT
AN
Great Southern Mining Limited
30th June 2019
CORPORATE INFORMATION
GREAT SOUTHERN MINING LIMITED
ABN 37 148 168 825
Directors
John Terpu
Kathleen Bozanic
Andrew Caruso
Company Secretary
Mark Petricevic
(Executive Chairman)
(Non-executive Director)
(Non-executive Director)
Registered Office
and Principal Place of Business
Suite 4, 213 Balcatta Road
Balcatta WA 6021
Telephone:
Facsimile:
(08) 9240 4111
(08) 9240 4054
Website: www.gsml.com.au
Solicitors
Hopgood and Ganim
Level 27
Allendale Square
77 St Georges Tce
PERTH WA 6000
Telephone:
Facsimile:
(08) 9211 8111
(08) 9221 9100
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Telephone:
Facsimile:
(08) 9227 7500
(08) 9227 7533
Share Register
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
Telephone: (within Australia): 1300 554 474
Telephone: (outside Australia): +61 (02) 8280 7761
Facsimile: (02) 9287 0303
Securities Exchange Listing and domicile
Great Southern Mining Limited is an Australian Company limited by shares and listed on the Australian
Securities Exchange (ASX: GSN)
CONTENTS
Chairman’s Letter
Operating and Financial Review
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
2
4
13
22
23
Statement of Profit or Loss & Other Comprehensive Income 24
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
1
25
26
27
28
53
54
58
Chairman’s Letter
Dear Shareholders,
It is my pleasure to present to you the 2019 Annual Report.
In what has been an incredibly busy year for Great Southern Mining (the Company) we have seen the
Company transform from a pure junior exploration Company to a dynamic Company with multiple
exploration and development opportunities.
The Company’s stated aim is to create value through discoveries and capture this value for our stakeholders
through cost-effective exploration programs and subsequent development and realisation of the value
of mineral resources.
Our focus on growth through strategic acquisitions and exploration has begun to pay off.
With significant Gold resources already outlined at Mon Ami our company is well positioned to enjoy the
benefits from future improvements in the Gold bullion price. The first half of the 2019 financial year saw
us undertake detailed metallurgical work and analysis on the Mon Ami to complement the initial Mineral
Resource Estimate announced in late 2018.
Along with Mon Ami the acquisition of the Cox’s Find Gold Project provides the Company two exceptional
brownfields exploration projects with drill ready targets and potential resource growth through targeted
and effective drilling programs. We are looking to enter the field soon.
North Queensland provides the Company with its Tier One discovery potential. With over 1,000km2
of underexplored tenure we are planning detailed mapping and geochemical programs to delineate
additional targets for the 2020 field season.
Our small reconnaissance drilling program at the Rocky Ponds Breccia Pipe in early May 2019 was a
success and we have only just scratched the surface of the system when you consider the depths of
gold mineralisation in other breccia systems such as Mt Wright and the Welcome breccia pipes. We look
forward to testing our theory of similar mineralization to the Mt Carlton deposit in the first half of 2020.
On the corporate front, the new team appointed in April-May 2018 immediately set to work adding value
to the organisation with the strategic acquisition of the tenements around Mon Ami, providing the asset
with additional strike length and infrastructure space. The same transaction resulted in the Company
acquiring the rare earth tenements immediately adjacent to Lynas’ world class Mt Weld Project. These
tenements will provide great drilling opportunities in 2020 along with the successful application for the
refund of up to $150,000 in drilling costs via the governments co-funded drilling program.
We were mindful of market sentiment during the year and the executive team has worked extremely hard
to continue to identify opportunities and create value for the Company without the need to significantly
dilute the shareholder base. I am extremely proud of the results we have generated this year and the well
supported Rights Issue to Shareholders post 30 June 2019 is testament to this.
I would also like to thank my fellow directors Kathleen Bozanic and Andrew Caruso for their support and
encouragement in setting the Company on an exciting pathway to success.
2
Chairman’s Letter
We are well positioned to capitalise on the positive market sentiment moving into the second half of
2019 and I am excited to be entering the field again with drill rigs at two promising, WA based gold
projects, situated so close to exiting mills and infrastructure. As shareholders of the Company I thank you
for your support and I truly believe Great Southern Mining is at the beginning of an accelerated growth
momentum period and the next year will be one to look forward to.
Yours sincerely.
John Terpu
Executive Chairman
3
Operating and Financial Review
The Company’s 2019 strategy involved undertaking exploration programs on its Projects utilising the
available resources and working capital to improve the knowledge of each mineral deposit and identify
future targets.
A summary of the main exploration activities during the period is below:
WESTERN AUSTRALIA:
COX’S FIND GOLD PROJECT
In June 2019 the Company executed a binding term sheet to acquire a 100% interest in the Cox’s Find
Gold Mine 65km north of Laverton. This Project will provide the Company opportunity to apply modern
exploration techniques to advance a historical high-grade gold project with significant potential. Having
reviewed the exploration potential of the project, GSN believe the Project will provide a significant
opportunity to grow the resource base given the gold deposit is currently poorly understood and
ultimately underexplored.
Highlights of the Cox’s Find Gold Project
The Project consists of 3 granted Mining Leases hosting the historical high-grade Cox’s Find Gold
Mine. Some highlights include:
•
•
•
•
Project is located in the world class
gold district, 65km north of Laverton and
in close proximity to multiple gold
operations and infrastructure.
Historical production of approximately
77,000 ounces of gold at a grade
>21 g/t.
Last significant exploration conducted in
the 1990’s and held under private
ownership for 30 years.
Though the acquisition, GSN will be the
first company to apply modern
exploration techniques to the historical
workings.
On 26 August 2019, the Company concluded
its due diligence procedures and the Directors
resolved to proceed with the transaction
to acquire the Cox’s Find Gold Project. The
Completion Payment ($150,000) was paid on this
date and funded via the short-term loan funds
provided to the Company on 30 July 2019.
4
Operating and Financial Review
MT WELD PROJECT – RARE EARTHS AND SCANDIUM
In September 2018 the Company entered into an agreement to acquire a 100% interest in a tenement
package from Central Australian Rare Earths Pty Ltd (CARE), an Australian registered entity. The Company
acquired the rights to licences E38/2829, E38/2442; E38/2587 and E38/2856. Consideration payable for
the transaction consisted of a cash payment of $99,240 and 1,000,000 fully paid GSN shares (at an issue
price of $0.035 per share).
As part of the purchase, GSN was able to acquire the previous owner’s exploration data from the drill
program undertaken in 2018. A detailed desktop review of the data, together with information available in
the public domain in the form of reports lodged on the Project consists of exploration licenses E38/2442;
E38/2587 and E38/2856.
Highlights of the Mt Weld Project
•
•
GSN analysis of reconnaissance aircore drilling undertaken by the previous tenement holders
has identified thick mineralised horizons of scandium (Sc) and cobalt (Co) over extensive
areas within a well-developed laterite.
4m composite assay samples from drilling have returned up to 252 g/t Sc and 0.35% Co.
As announced to the market on 30 May 2019, GSN was successful in its application to receive up to
$150,000 refund on its direct drilling costs as part of the exploration incentive scheme.
The co-funded drilling program is being planned for late 2019.
5
Operating and Financial Review
MON AMI GOLD PROJECT
Following the acquisition of the Mon Ami Project
in early 2018, a tailored and targeted drill
campaign was undertaken which produced some
exciting results with a maiden JORC 2012 Maiden
Mineral Resource estimate (MRE) of 59,000oz at
1.7 g/t. This provides the Company a solid base
to undertake extensional infill drilling to rapidly
expand the resource.
Drilling completed by the Company during
the 2018 field season produced a number of
exceptionally high grade gold intersections which
confirmed previous drilling results eluding to a
number of moderately to steeply plunging high-
grade ore shoots.
•
•
•
•
8m at 4.17 g/t Au from 136m (MLRC020)
10m at 4.60 g/t Au from 128m (ML029)
2m at 29.85 g/t Au from 173m (MLRC036)
3m at 22.71 g/t Au from 72m (MLRC024)
Refer ASX announcement dated 16 July 2018 for
further details on this phase 1 of drilling.
The Resource is constrained by the current level of
drilling. A number of holes from the initial drilling
programme finished in mineralisation below 150m
which were not included in the MRE. A second
stage drilling program and Estimated Exploration
Target was released to the market on 21 February
2019.
Mon Ami shows good potential to develop into
a similar deposit plunging northward within the
Barnicoat shear. Historical underground mining
at Mon Ami targeted a number of ‘high-grade
quartz reefs’ producing 311 ounces of ore at
an average grade of 48 g/t Au (GSWA, 1906).
Deeper downhole and at depth drilling is planned
to test this theory and explore the underground
potential of the deposit.
6
Operating and Financial Review
MON AMI GOLD PROJECT - (CONTINUED)
Highlights of the Mon Ami Gold Project
•
•
•
•
•
•
In November 2018 the Company announced the maiden Mineral Resource estimate on its
100% owned Mon Ami Gold Project in Laverton, Western Australia of 1.1 Mt @ 1.7 g/t for
59,000 ounces of contained gold.
The Project is well situated close to several active gold processing plants (in some cases less
than 15km’s).
Preliminary gold recovery testwork on 10 Mon Ami Gold Project oxide, transitional and fresh
composite samples demonstrated excellent gold recoveries, up to 97% using conventional
cyanide leaching and gravity concentration.
Low reagent requirements and coarse grind, expected to result in low processing costs.
Confirms that a conventional gold processing flowsheet is suitable for treating the Mon Ami
Gold Project ores.
Potential to rapidly add ounces via extensional and infill drilling in the second stage drilling
program announced 21 February 2019.
7
containing up to 30% sulphide mineralization
with high silver content being 1 g/t - 50 g/t with
elevated base metals of zinc and copper (0.1% to
0.8%). This shallow part of the system also carried
gold mineralization of 0.22 – 0.64 g/t which is
encouraging for deeper drill programs currently
being planned.
HIGHLIGHTS:
•
•
•
The program was designed to test
potential mineralization of the breccia
pipe, understand the system and
identify similar analougues.
The encouraging results have identified
a well-developed, high-sulphidation
system similar to tier 1 gold systems in
the region (e.g.; Mt Carlton (Evolution
Mining Limited)).
Follow up exploration work and drill
programs being designed for execution
in the second half of 2019.
Operating and Financial Review
EDINBURGH PARK PROJECT – NORTH QUEENSLAND
On 11 February 2019 GSN announced the
discovery of a new breccia hosted Intrusive Related
Gold System (IRGS) mineralized system located at
its Edinburgh Park Project in North Queensland.
The discovery followed a detailed geoglogical
mapping and geochemical program undertaken
through late 2018 and early 2019. The Rocky
Ponds breccia was considered to be an immediate
“drill ready” target with excellent logistical access
and exciting rock chip results at surface returning
up to 0.38 g/t gold and 6.9 g/t Ag silver confirming
associated gold and silver mineralisation.
Following a placement of shares raising $100,000
in April 2019 the Company decided to fast
track a small RC drill program to test potential
mineralization and understand more of the
geology and hydrothermal system to progress
exploration methods.
The sighter holes intersected a significant and
well developed sulphiric hydrothermal system.
in excess of 30m were noted
Intersections
8
Operating and Financial Review
EDINBURGH PARK PROJECT – NORTH QUEENSLAND - (CONTINUED)
The next steps will be to extract more information
from the drilling data collected to understand
the controls on the mineralisation in terms of
alteration mineralogy, multi-element zoning and
vectors to ore. This will involve some petrology
and the use of a Hylogger spectral scanner.
geophysics campaign and continued geological
mapping and geochemistry programs to run in
tandem to delineate structures and define size
potential - particularly ground magnetics and
electrical methods.
The steps will provide solid drilling targets aimed
at targeting the potentially Au-rich core.
The Company is also considering an extensive
9
Operating and Financial Review
CORPORATE
The following significant matters and changes
during the period have occurred:
1.
2.
3.
4.
5.
6.
The Company completed a placement
of 31,846,669 fully paid ordinary shares to
sophisticated investors raising $1,115,429
net of costs.
At the General Meeting of Shareholders
held 7 March 2019, shareholders approved
the issue of 10,000,000 fully paid ordinary
shares to an entity related to John Terpu
in satisfaction for a $300,000 short-term
loan provided to the Company on 31
December 2018. The shares were issued
on 11 March 2019.
$250,000 raised through issue of 8,333,333
fully paid ordinary shares on 22 March
2019.
$100,000 raised through issue of 3,333,333
fully paid ordinary shares on 30 April 2019.
$60,000 was raised through the exercise
of 3,000,000 options at $0.02 on 31
December 2018 and 29 March 2019. The
options were issued under the Company’s
long-term incentive plan.
In September 2018 the Company entered
into an agreement to acquire a 100%
interest in a tenement package from
Central Australian Rare Earths Pty Ltd
(CARE), an Australian registered entity.
The Company acquired the rights to
licences E38/2829, E38/2442; E38/2587
and E38/2856. Consideration payable
for the transaction consisted of a cash
payment of $99,240 and 1,000,000 fully
paid GSN shares (at an issue price of
$0.035 per share), subject to voluntary
escrow until 30 December 2018 (500,000
shares) and 30 June 2019 (500,000 shares).
7.
The Company completed due diligence
on the Cox’s Find Gold Project and paid
$150,000 cash on 26 August 2019.
FINANCIAL POSITION AND
PERFORMANCE
The Company’s net assets increased 12% from
the year ended 30 June 2018 predominately due
10
to investment in exploration and the acquisition
of the Mt Weld Project. Following the successful
capital raising activities during the year the
Company advanced exploration activities
in
North Queensland and undertook metallurgical
work on the Mon Ami Gold Project. In early 2019
the Company raised additional capital to fund
reconnaissance drilling at the Rock Ponds Breccia
Pipe.
The Company held $0.2 million as cash and cash
equivalents at 30 June 2019.
Operating cash outflows for the period totalled
$1.4 million with cash outflows from investing
activities totalling $0.9 million.
The Company has performed
in a manner
consistent with that of a junior exploration
company. The focus during the period was on
undertaking drilling and exploration programs.
The net loss for the period of $1.4 million is
reflective of the corporate and overhead costs
incurred in ensuring regulatory compliance is
maintained, legal fees incurred in relation to
corporate activities during the year and a non cash
impairment charge of $0.14 million relating to the
Black Mountain Project in North Queensland.
The Company also employed a Chief Financial
Officer and Company Secretary in April 2018
along with additional corporate staff in June 2018.
Therefore the full year to 2019 included the annual
payments made rather than the three months as
was the case in 30 June 2018.
Future Prospects
As discussed elsewhere
in the Review of
Operations Report, with the capital raising
undertaken in August 2019 the Company is
looking to further drilling campaigns at the Cox’s
Find Gold Project, the Edinburgh Park Project and
the Mt Weld Project. Additional drilling programs
are also being considered at Mon Ami.
Further disclosure of information regarding likely
developments in the operations of the Company
in future financial years and the expected results of
those operations is likely to result in unreasonable
prejudice to the Company. Therefore, this
information has not been presented in this report.
Operating and Financial Review
BUSINESS RISKS
The company is subject to a number of risks that could potentially have an adverse impact on the
performance of the Company. The Company has in place policies and procedures to monitor and manage
these risks which can broadly be catergorised as:
commodity prices;
currency risks;
market risks;
liquidity risks; and
credit risks.
-
-
-
-
-
Additionally the company is subject to a number of operational risks including, but not limited to, the
following:
-
-
-
-
-
-
operational and costs;
Tenement and title;
Resource estimation;
Exploration funding and capital;
Solvency; and
Uncertainty around future development of projects and exploration risk.
The risks are considered to be common for a company which is undertaking early stage exploration
programs. GSN is not a mineral producer and the exposure to commodity risk and currency risk is
minimal. Additionally, liquidity risk is a constant focus of the directors’ being mindful of the ability of the
Company to raise additional capital to meet expenditure commitments and further drilling programs.
Further disclosure of these risks can be found in Note 20 to the Financial Statements.
COMPETENT PERSONS STATEMENT
The information in this report that relates to exploration targets and exploration results on M38/1256,
E38/2829, E38/2442, E38/2856, E38/2857, EPM26810, EPM26527, M38/578, M38/170 and M38/740 is
based on, and fairly represents, information and supporting documentation compiled by Dr Bryce Healy.
Dr Healy is an employee of Noventum Group Pty Ltd (ACN 624 875 323) and has been engaged by Great
Southern Mining Limited as Head of Exploration. He has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration. Dr Healy is a Member of the Australian Institute
of Geoscientists and as such, is a Competent Person for the Reporting of Exploration Results, Mineral
Resources and Ore Reserves under the JORC Code (2012). Dr Healy consents to the inclusion in the
report of the matters based on his information in the form and context in which they occur.
The information in this report that relates to the Mineral Resources estimation approach at the Project
is based on information compiled by Dr Michael Cunningham, GradDip, (Geostatstics) BSc honours
(Geoscience), PhD, MAusIMM, MAIG. Dr Cunningham is a Principal Consultant, full-time, of SRK
Consulting (Australasia) Pty Ltd. He has sufficient experience relevant to the assessment and of this style
of mineralisation to qualify as a Competent Person as defined by the “Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code (2012)”. Dr Cunningham
consents to the inclusion in this report of the matters based on his information in the form and context
in which it appears.
11
Operating and Financial Review
COMPETENT PERSONS STATEMENT (CONTINUED)
The information in this report that relates to Exploration Targets and Exploration Results is based on
information compiled by Dr Healy. Statements regarding the Company’s plans with respect to Mineral
Resources, exploration programs and future developments are forward-looking statements. There can
be no assurance that the Company’s plans will proceed at stated times in the future. Additionally, future
drilling programs and outcomes presented are based on current estimates using information available
at the time of the documents preparation. There is no guarantee that the programs will confirm the
presence of additional mineral resources.
The information in this review of operations has contained information that has been extracted from
a number of ASX announcements released during the year and up to the date of this report. All
announcements are available to view on the Company’s website. The Company confirms that it is not
aware of any new information or data that materially affects the information included in the original market
announcement. The Company confirms that the form and context in which the Competent Person’s
findings are presented have not been materially modified from the original market announcement.
FORWARD LOOKING STATEMENTS:
Forward- looking statements are only predictions and are not guaranteed. They are subject to known and
unknown risks, uncertainties and assumptions, some of which are outside the control of the Company.
Past performance is not necessarily a guide to future performance and no representation or warranty is
made as to the likelihood of achievement or reasonableness of any forward looking statements or other
forecast. The occurrence of events in the future are subject to risks, uncertainties and other factors that
may cause the Company’s actual results, performance or achievements to differ from those referred to in
this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward
looking statements. Any forward- looking statements in this announcement speak only at the date of
issue of this announcement. Subject to any continuing obligations under applicable law and the ASX
Listing Rules, the Company, its directors, officers, employees and agents do not give any assurance or
guarantee that the occurrence of the events referred to in this announcement will occur as contemplate.
Statements regarding the Company’s plans with respect to Mineral Resources, exploration programs and
future developments are forward-looking statements. There can be no assurance that the Company’s
plans will proceed at stated times in the future. Additionally, future drilling programs and outcomes
presented are based on current estimates using information available at the time of the documents
preparation. There is no guarantee that the programs will confirm the presence of additional mineral
resources. Any opinions expressed in the presentation are subject to change without notice.
12
Directors’ Report
Your directors submit the annual financial report
of Great Southern Mining Limited, (the Company),
for the year ended 30 June 2019.
COMPANY SECRETARY
Mark Petricevic CA, AGIA, B.Com (Acctg & C. Finance)
(Appointed 30 April 2018)
DIRECTORS AND COMPANY SECRETARY
The names of directors and the secretary who
held office during or since the end of the year and
until the date of this report are as follows.
John Terpu – Executive Chairman
(Appointed Non-executive Chairman 12 January
2011, appointed Executive Chairman 1 July 2013)
Mr Terpu has over twenty years of commercial
and management expertise gained in a broad
range of business and investment activities. He
has been involved in the mining and exploration
industry through the acquisition and investment
in a number of strategic exploration and mining
projects. Mr Terpu has a wide range of contacts
in
investment
community. Mr Terpu had no other public
company directorships in the previous three years.
the exploration and mining
Kathleen Bozanic B.Com, ACA, AICD – Non-
executive Director (Appointed 26 April 2018)
Ms Bozanic is a chartered accountant with over
twenty five years of experience in compliance,
governance,
risk, commercial and financial
management, including leadership experience
in strategic transformation and restructuring.
Ms Bozanic also has considerable experience as
an Audit Partner, Chief Financial Officer and the
General Manager of Finance in the mining and
construction sector. Ms Bozanic had no other
public company directorships in the previous
three years.
Mr Andrew Caruso B.Eng (Mining)(Hons), Grad
Dip. Applied Finance & Investment – Non-
executive Director (Appointed 26 April 2018)
Mr Caruso is a mining engineer with over twenty
five years experience in the Australian and
international mining industries with a focus on
corporate
leadership, business development,
operations and strategic planning and mine
management. His experience includes over nine
years as the chief executive for a number of iron ore
and coal operations and development companies.
Mr Caruso was a non-executive director of Ascot
Resources Ltd, resigning in April 2018 he had no
other public company directorships in the previous
three years.
13
Mark is a chartered accountant with over sixteen
years experience
in accounting, audit and
corporate finance including four years as an Audit
and Assurance Partner. Mark has had no public
company directorships in the previous three years.
DIRECTORS’ MEETINGS
The number of meetings of the Company’s Board
of Directors attended by each Director during the
year ended 30 June 2019 was as follows:
Directors
J. Terpu
K. Bozanic
A. Caruso
No of Board Meetings
Held Whilst in Office
No of Board Meetings
Attended
10
10
10
10
10
10
INTERESTS IN THE SHARES AND OPTIONS
OF THE COMPANY AND RELATED BODIES
CORPORATE
The following relevant interests in shares and
options of the company or a related body
corporate were held by the directors as at the
date of this report:
Directors
John Terpu
K. Bozanic
A. Caruso
Number of fully paid
ordinary shares
Number of fully paid
Listed Options*
117,309,351
39,103,117
1,200,000
1,200,000
400,000
400,000
* On 30 July 2019 the Company announced its
intention to undertake a significant capital raising
via a non-renounceable pro-rata Rights Issue. On
5 August 2019 a Prospectus was released for a
non-renounceable pro rata entitlement issue to
Shareholders of one (1) New Option for every three
(3) Shares held by Eligible Shareholders registered
at the Record Date at an issue price of $0.010
per New Option to raise up to approximately
$1,011,374 before costs. The New Options are
exercisable at $0.05 per New Option on or before
three (3) years from issue date. The Rights Issue
closed on the 28 August 2019 which resulted in
the issue of 83,588,449 New Options raising a
total of $835,884 before costs. The directors took
up their entitlements and were issued the options
on 4 September 2019.
Directors’ Report
UNLISTED OPTIONS
Details of options issued by the Company during
or since the end of the financial year, and ordinary
shares issued as a result of the exercise of an
option are:
-
3,300,000 unlisted options issued on 16
November 2018 under the Company’s
long-term incentive plan. No options have
been issued to Directors of the Company
during the period. 1,500,000 options
were exercised at an exercise price of
$0.02 on 31 December 2018. A further
1,500,000 options were exercised at $0.02
on 29 March 2019.
At the date of this report unissued ordinary shares
of the Company under option are:
Date options
granted
Expiry date
Exercise price
of shares ($)
Number
under
option
14-May-18
31-Dec-19
$0.02 11,800,000
16-Nov-18
31-Dec-19
$0.02
300,000
The 11.8 million options were issued to a
Senior Advisor of the Company upon entering a
consulting arrangement.
0.3 million options were issued to a consulting
geologist for services provided.
These options are unlisted and do not entitle the
holder to participate in any share issue of the
Company.
NEW OPTIONS
On 30 July 2019 the Company announced its
intention to undertake a significant capital raising
via a non-renounceable pro-rata Rights Issue. On
5 August 2019 a Prospectus was released for a
non-renounceable pro rata entitlement issue to
Shareholders of one (1) New Option for every three
(3) Shares held by Eligible Shareholders registered
at the Record Date at an issue price of $0.010
per New Option to raise up to approximately
$1,011,374 before costs. The New Options are
exercisable at $0.05 per New Option on or before
three (3) years from issue date. The Rights Issue
closed on the 28 August 2019 which resulted in
the issue of 83,588,449 New Options raising a
14
total of $835,884 before costs. The shortfall will
be placed at the director’s discretion within three
months.
DIVIDENDS
No dividends were declared since the start of the
financial year and the directors do not recommend
the payment of a dividend in respect of the
financial year.
REVIEW OF OPERATIONS
During the year, the Company carried out
exploration on its tenements with the objective of
identifying economic deposits of gold and other
metals. The full review of operations immediately
precedes this report.
Operating results for the year
The net result of operations, for the year, was a loss
after income tax of $1,435,516 (2018: $725,433).
The Operating and Financial Review can be found
immediately preceding this Directors’ Report.
PRINCIPAL ACTIVITIES
The principal activity of the Company during
the year was exploration for and evaluation of
economic deposits for gold and other minerals in
Western Australia and Queensland.
SIGNIFICANT CHANGES IN THE STATE OF
AFFAIRS
During the year, the following changes occurred:
1.
2.
In September 2018 the Company entered
into a transaction to acquire several
exploration licences from Central Australia
Rare Earths Pty Ltd, a wholly owned
subsidiary of Strategic Minerals plc, an
AIM listed company. The transaction
concluded in November 2018 and resulted
in the payment of $99,240 cash and issue
of 1 million shares in the Company.
On 6 June 2019 the Company announced
it had entered a binding term sheet
to acquire the Cox’s Find Gold Project in
Laverton, Western Australia. The
transaction was unconditional at the date
of this report. Refer to details below.
Directors’ Report
The shortfall will be placed at the director’s
discretion within three months.
In addition, the Company entered a
loan
agreement for $500,000 with a director related
entity. The loan is unsecured and on commercial
terms.
As announced by the Company on 5 June 2019,
the Company entered into an agreement with
a third party for the purchase of the Cox’s Find
Gold Project. On 26 August 2019, the Company
concluded its due diligence procedures and the
Directors resolved to proceed with the transaction
to acquire the Cox’s Find Gold Project. The
Completion Payment ($150,000) was paid on this
date and funded via the short-term loan funds
provided to the Company on 30 July 2019. Refer
to Note 18 and Note 21 for further details.
On 18 July 2019, recognising the prospective
nature of the Palmer River in North Queensland
and with the view to acquiring additional
exploration tenure at low cost the Company
lodged 2 applications for Mt Bennett and Eagle
Mountain Projects. The Project areas were not
previously pegged and the area has been subject
to little historical exploration. The Directors are
not aware of any reason that would result in the
applications not being granted to the Company.
Apart from the above, there has not been any
other matter or circumstance that has arisen after
the reporting date that has significantly affected,
or may significantly affect, the operations of the
Company, the results of those operations, or the
state of affairs of the Company in future financial
periods.
ISSUE OF SHARE CAPITAL:
1.
2.
3.
4.
5.
6.
The Company completed a placement of
31,846,669 fully paid ordinary shares to
sophisticated investors raising $1,115,429 net
of costs.
At the General Meeting of Shareholders
held 7 March 2019, shareholders approved
the issue of 10,000,000 fully paid ordinary
shares to an entity related to John Terpu in
satisfaction for a $300,000 short-term loan
provided to the Company on 31 December
2018. The shares were issued on 11 March
2019.
$250,000 raised through issue of 8,333,333
fully paid ordinary shares on 22 March 2019.
$100,000 raised through issue of 3,333,333
fully paid ordinary shares on 30 April 2019.
$60,000 was raised through the exercise of
3,000,000 options at $0.02 on 31 December
2018 and 29 March 2019. The options were
issued under the Company’s long-term
incentive plan.
In September 2018 the Company entered
into an agreement to acquire a 100% interest
in a tenement package from Central
Australian Rare Earths Pty Ltd (CARE), an
Australian registered entity. The Company
acquired the rights to licences E38/2829,
E38/2442; E38/2587 and E38/2856.
Consideration payable for the transaction
consisted of a cash payment of $99,240 and
1,000,000 fully paid GSN shares (at an issue
price of $0.035 per share), subject to voluntary
escrow until 30 December 2018 (500,000
shares) and 30 June 2019 (500,000 shares).
SIGNIFICANT EVENTS AFTER THE REPORTING
DATE
On 30 July 2019 the Company announced its
intention to undertake a significant capital raising
via a non-renounceable pro-rata Rights Issue to
existing shareholders to raise up to $1,011,374
before costs.
The Rights Issue closed on the 28 August 2019
which resulted in the issue of 83,588,449 New
Options raising a total of $835,884 before costs.
15
Directors’ Report
LIKELY DEVELOPMENTS & EXPECTED RESULTS
KEY MANAGEMENT PERSONNEL
DIRECTORS
J. Terpu (Executive Chairman appointed 1 July
2013, Non-executive Chairman appointed 12
January 2011).
K. Bozanic (Non-executive Director appointed 26
April 2018).
A. Caruso (Non-executive Director appointed 26
April 2018).
COMPANY SECRETARY AND CFO
M. Petricevic (Company Secretary and CFO,
appointed 30 April 2018).
The following Directors were in office during the
2018 comparative period:
B. Firriolo (Non-executive Director and Company
Secretary appointed 12 January 2011, resigned
26 April 2018 and 30 April 2018 respectively).
J. Radici (Non-executive Director appointed 31
March 2015, resigned 26 April 2018).
REMUNERATION PHILOSOPHY
The performance of the Company depends
upon the quality of the directors and executives.
The philosophy of the Company in determining
remuneration levels is to:
-
set competitive remuneration packages to
attract and retain high calibre employees;
-
-
link executive rewards to shareholder value
creation; and
establish appropriate, demanding
performance hurdles for variable executive
remuneration
regarding
information
likely
Disclosure of
developments in the operations of the Company
in future financial years and the expected results of
those operations is likely to result in unreasonable
prejudice to the Company. Therefore, this
information has not been presented in this report.
ENVIRONMENTAL LEGISLATION
The Company is not subject to any significant
environmental legislation.
INDEMNIFICATION &
DIRECTORS AND OFFICERS
INSURANCE OF
The Company has agreed to indemnify all the
directors of the company for any liabilities to
another person (other than the Company or
related body corporate) that may arise from their
position as directors of the Company, except
where the liability arises out of conduct involving
a lack of good faith.
During the financial year the Company paid a
premium in respect of a contract insuring the
directors and officers of the Company against any
liability incurred in the course of their duties to the
extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of
the nature of the liability and the amount of the
premium.
REMUNERATION REPORT (AUDITED)
the
report
outlines
This
remuneration
arrangements in place for the key management
personnel (“KMP”) of the Company for the
financial year ended 30 June 2019. KMP’s being
defined as those persons having authority
and responsibility for planning, directing and
controlling the major activities of the Company,
including any director
directly or
(whether executive or otherwise). The report
also includes remuneration arrangements of the
executives in the Company receiving the higher
remuneration. The information provided in this
remuneration report has been audited as required
by Section 308(3C) of the Corporations Act 2001.
indirectly,
16
Directors’ Report
SENIOR MANAGER AND EXECUTIVE DIRECTOR
REMUNERATION
Remuneration consists of fixed remuneration and
variable remuneration (comprising short-term and
long-term incentive schemes).
FIXED REMUNERATION
Fixed remuneration is reviewed annually by the
Board of Directors. The process consists of a
review of relevant comparative remuneration in
the market and internally and, where appropriate,
external advice on policies and practices. The
Board has access to external, independent advice
where necessary.
Senior managers and executive directors are given
the opportunity to receive their fixed (primary)
remuneration in a variety of forms including cash and
fringe benefits such as motor vehicles and expense
payment plans. It is intended that the manner of
payment chosen will be optimal for the recipient
without creating undue cost for the Company.
VARIABLE REMUNERATION
A long-term incentive plan was adopted by
shareholders of the Company at the general
meeting of members held 29th June 2018.
1,500,000 options were issued to M Petricevic
during the period. These options were exercised
on 31 December 2018.
SERVICE AGREEMENTS
Remuneration and other terms of employment
for the Executive Directors and other Key
Management Personnel are formalised
in a
Service Agreement. The major provisions of the
agreements relating to remuneration are set out
below:
Employee
Base salary
($) inclusive
of superan-
nuation
Term of
agreement
Notice
period
J Terpu
219,000
2 years
6 months
M Petricevic
180,000
No fixed
term
3 months
REMUNERATION COMMITEE
Great Southern Mining Limited has not established
a Remuneration Committee. The Board of Directors
of the company is responsible for determining and
reviewing compensation arrangements for the
directors and the executive team.
The Board of Directors assesses the appropriateness
of the nature and amount of remuneration of
directors and executives on a periodic basis
by reference to relevant employment market
conditions with an overall objective of ensuring
maximum stakeholder benefit from the retention
of a high-quality Board and executive team.
REMUNERATION STRUCTURE
In accordance with best practice corporate
governance, the structure of non-executive director
and executive remuneration is separate and distinct.
NON-EXECUTIVE DIRECTOR REMUNERATION
The Board seeks to set aggregate remuneration
at a level that provides the Company with the
ability to attract and retain directors of the highest
calibre, whilst incurring a cost that is acceptable
to shareholders.
The ASX Listing Rules specify that the aggregate
remuneration of non-executive directors shall be
determined from time to time by a general meeting.
The latest determination was at a General Meeting,
prior to the Company’s listing on ASX, held on
30 March 2011 when shareholders approved an
aggregate remuneration of $300,000 per year.
The amount of aggregate remuneration sought to
be approved by shareholders and the manner in
which it is apportioned amongst directors is reviewed
annually. The Board refers to the fees paid to non-
executive directors of comparable companies, when
undertaking the annual review process.
17
Directors’ Report
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N
Directors’ Report
REMUNERATION REPORT (CONTINUED)
OPTION PLANS IN EXISTENCE DURING THE FINANCIAL YEAR:
On 29 June 2018 the Shareholders of the Company approved the long-term incentive plan to be adopted.
The following options were issued on 14 November 2018 to key management personnel during the
period under the long-term incentive plan:
Issued to M Petricevic:
Outstanding at 30 June 2018
Granted
Exercised
Outstanding and exercised at 30 June 2019
Number of Options Option Fair Value
-
1,500,000
(1,500,000)
-
$
19,878
-
19,878
The 1,500,000 options were exercised during the period at $0.02 per share raising $30,000. The weighted
average exercise price of the options was $0.02.
The fair market value of options granted during the period has been included in the statement of profit
or loss and other comprehensive income.
The fair value of options granted were determined using the Black-Scholes option pricing model. There
were no performance based, or service based vesting conditions attached to the Options.
The following principal assumptions were used in the valuation:
Valuation assumptions
Grant date
Share price at date of grant
Volatility
Expiry date
Dividend yield
Risk free investment rate
Fair value at grant date
Exercise price at date of grant
Exercisable from
Weighted average remaining contractual life
$
$
$
01-Nov-18
0.035
86%
31-Dec-19
0
1.50%
0.013
0.020
01-Nov-18
1 yr
The underlying expected volatility was determined by reference to historical data of the Company’s
shares over a period of time. No special features inherent to the options granted were incorporated into
measurement of fair value.
On 28 August 2019 the Company completed a rights issue of New Options. The Directors took up their
entitlements in full with J.Terpu being issued 39,103,118 New Options. K.Bozanic and A.Caruso were
issued 400,000 New Options each. M.Petricevic was issued 500,000 New Options. Refer to note 21.
19
Directors’ Report
REMUNERATION REPORT (CONTINUED)
SHARE-BASED COMPENSATION TO DIRECTORS AND EXECUTIVES DURING THE YEAR:
In March 2019 J. Terpu was issued 10,000,000 shares following conversion to equity of the $300,000
Director Loan received by the Company on 31 December 2018. This transaction was approved at the
General Meeting of Shareholders held 7 March 2019. The ordinary shares were not issued as part of
remuneration.
During the prior period the Company issued 15,000,000 fully paid ordinary shares to entities associated
with Mr John Terpu as consideration for the acquisition of the Mon Ami Gold Project, approved by
shareholders at a General Meeting held 29 March 2018. The ordinary shares were not issued as part of
remuneration.
OPTIONS GRANTED TO DIRECTORS AND EXERCISED OR LAPSED DURING THE YEAR:
Nil options granted or exercised to/by directors during the period or the prior period.
MOVEMENTS IN KMP SHARE HOLDINGS
Fully paid ordinary shares – directly and indirectly held
2019
J. Terpu
K. Bozanic
A. Caruso
M Petricevic*
Opening
Balance
1/7/2018
At time of
commencing/
(ceasing)
Bought
Sold
105,667,717
1,200,000
1,200,000
-
-
-
-
-
11,641,634
-
-
1,500,000
Closing Balance
30/06/2019
-
-
-
-
117,309,351
1,200,000
1,200,000
1,500,000
*1,500,000 options were issued to and exercised by M Petricevic during the period at $0.02 per option.
Note: the increase for J Terpu also includes 10,000,000 shares issued on 11 March 2019 following
conversion of Director loan to equity, approved at the General Meeting of Shareholders held 7 March
2019. All other shares were acquired on market.
2018
J. Terpu
B. Firriolo
J.Radici
K. Bozanic
A. Caruso
Opening
Balance
1/7/2017
At time of
commencing/
(ceasing)
Bought
Sold
Closing Balance
30/06/2018
-
33,273,536
-
105,667,717
(1,790,000)
(100,000)
1,200,000
1,200,000
-
-
-
-
-
-
-
-
-
-
1,200,000
1,200,000
72,394,181
1,790,000
100,000
-
-
The increase for J Terpu of 33,273,536 during 2018 includes the 15,000,000 shares issued relating to the
acquisition of the Mon Ami Gold Project, subject to 12 months escrow, as announced on the ASX on 22
February 2018. No cash consideration was payable.
All other shares were acquired on market.
20
Directors’ Report
REMUNERATION REPORT (CONTINUED)
Transactions with Key Management Personnel
The following comprises amounts paid or payable
and received or receivable applicable to entities
in which KMP have an interest.
VOTING AND COMMENTS MADE AT THE
COMPANY’S
2018 ANNUAL GENERAL
MEETING
The Company received more than 99% of “yes”
votes on its remuneration report for 2018. No
specific feedback at the AGM or throughout the
year was received.
2019
$
2018
$
100,000
300,000
PROCEEDINGS ON BEHALF OF THE COMPANY
-
No persons have applied for leave pursuant to
section 327 of the Corporation Act 2001 to bring,
or intervene in, proceedings on behalf of Great
Southern Mining Limited.
Directors
Paid/payable to:
Paid to Valleybrook In-
vestments Pty Ltd*
Valleyrose Pty Ltd**
J Terpu (as Director of
Ruby Lane Pty Ltd atf
Red Star Trust) for rental
and office services.
Amounts owed to re-
lated parties at 30 June
2019 including Ruby
Lane Pty Ltd Chelling-
tons Pty Ltd and Valley-
brook Investments Pty
Ltd:
79,294
318,768
158,630***
273,630
* During the year to 30 June 2018 $250,000 was
agreed to be paid to Valleybrook Investments
Pty Ltd relating to the acquisition of the Mon
Ami Gold Project. Consideration also included a
Royalty Deed which is further outlined in Note
17. During the period to 30 June 2019, $100,000
was paid in relation to this transaction. $150,000
remains outstanding to Valleybrook Investments
Pty Ltd. This amount has been included as a
current liability at Note 12.
** This amount represents the market value of
10,000,000 shares issued to Valleyrose Pty Ltd in
satisfaction of the Director Loan provided on 31
December 2018. 10,000,000 shares were issued
on 11 March 2019 following conversion of the
Director Loan to equity, approved at the General
Meeting of Shareholders held 7 March 2019.
*** In addition to the outstanding balance of
$150,000 owed to Valleybrook Investments Pty
Ltd $8,630 is also payable to Ruby Lane Pty Ltd at
30 June 2019.
21
AUDITOR INDEPENDENCE AND NON-AUDIT
SERVICES
Section 307C of the Corporations Act 2001 requires
our auditors, HLB Mann Judd, to provide the
directors of the Company with an Independence
Declaration in relation to the audit of the financial
report. This Independence Declaration is set out
on page 22 and forms part of this directors’ report
for the year ended 30 June 2019.
NON-AUDIT SERVICES
No amounts were paid or payable to the auditor
for non-audit services provided during the year.
Signed in accordance with a resolution of the
directors.
John Terpu
Executive Chairman
Perth WA
13 September 2019
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Great Southern Mining Limited for the year
ended 30 June 2019, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
13 September 2019
M R Ohm
Partner
Corporate Governance Statement
The Board is committed to achieving and demonstrating the highest standards of corporate governance.
As such, Great Southern Mining Limited (the “Company”) has adopted the third edition of the Corporate
Governance Principles and Recommendations which was released by the ASX Corporate Governance
Council on 27 March 2014 and became effective for the financial years beginning on or after 1 July 2014.
The Company’s Corporate Governance Statement for the financial year ended 30 June 2019
was approved by the Board on 13 September 2019. The Corporate Governance Statement is
available on the Company’s website at www.gsml.com.au.
23
Great Southern Mining Limited
Statement of Profit or Loss and Other Comprehensive
Income for the year ended 30 June 2019
Revenue and other income
Expenses
Administration expenses
Consulting fees
Directors’ Benefits
Employee Benefits expense
Legal Fees
Depreciation expense
Impairment of exploration expenditure
Exploration and evaluation expenditure not capitalised
Share Based Payment Expense
Total expenses
Loss before income tax expense
Income tax expense
Net loss for the year
Other comprehensive income, net of income tax
Items that may be reclassified to profit or loss
Net loss on equity instruments designated at fair value through
other comprehensive income
Transfer of fair value of available-for-sale investments
Income tax expense
Notes
2
2
11
23
4
2019
$
2018
$
3,156 15,348
(439,528)
(454,806)
(77,193)
(85,000)
(295,650)
(98,619)
(240,120)
(59,537)
(109,830)
(40,491)
(5,295)
(2,328)
(146,471)
(78,830)
(45,756)
-
-
-
(1,438,673)
(740,782)
(1,435,517)
(725,433)
-
-
(1,435,517)
(725,433)
(25,729)
-
-
-
42,000
-
Total comprehensive (loss)/income for the year
(1,461,246)
(683,433)
Basic and diluted loss per share (cents per share)
5
(0.51)
(0.35)
The accompanying notes form part of these financial statements.
24
Great Southern Mining Limited
Statement of Financial Position As at 30 June 2019
CURRENT ASSETS
Cash and cash equivalents
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other receivables - non current
Available-for-sale listed securities
Plant and equipment
Exploration and evaluation expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefits
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
2019
$
2018
$
6
7
8
9
10
11
12
13
14
15
208,044
748,423
31,409
13,244
239,453
761,667
12,500
-
14,913
10,000
180,000
19,518
4,363,187
3,455,352
4,390,600
3,664,870
4,630,053
4,426,537
523,836
810,403
78,172
34,014
602,008
844,416
602,008
844,416
4,028,045
3,582,121
23,611,759
21,750,349
80,756
128,470
(19,664,471)
(18,296,697)
4,028,045
3,582,121
The accompanying notes form part of these financial statements.
25
Great Southern Mining Limited
Statement of Cash Flow For the year ended 30 June 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Notes
2019
$
2018
$
(1,422,891)
(649,041)
3,156
18,364
NET CASH USED IN OPERATING ACTIVITIES
16
(1,419,735)
(630,676)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration and evaluation expenditure
Proceeds from sale of available-for-sale investments
NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of Shares (net of costs)
Proceeds from Director Loan
NET CASH PROVIDED BY FINANCING ACTIVITIES
-
(7,972)
(1,101,775)
(584,154)
154,721
-
(947,054)
(592,127)
1,526,410 1,100,846
300,000
-
1,826,410 1,100,846
NET DECREASE IN CASH HELD
Cash at beginning of year
CASH AT END OF YEAR
(540,379)
(121,957)
748,423
870,380
6
208,044
748,423
The accompanying notes form part of these financial statements.
26
Great Southern Mining Limited
Statement of Changes in Equity
For the year ended 30 June 2019
30 June 2018
Balance at 31 July 2017
Options Issued During the Period
Issue of Share Capital
Capital Raising costs
Issue of Shares under share-based
payment
Loss for the year
Change in the fair value of equity
instruments designated at FVOCI
Total Comprehensive Loss
Notes
Issued
Capital
$
Accumulated
Losses
$
Financial
Asset
Reserve $
Share Option
Reserve
$
Total
$
20,169,503
(17,571,264)
51,470
- 2,649,709
14
14
-
1,118,416
(17,570)
480,000
-
-
-
-
-
-
-
-
35,000
35,000
- 1,118,416
(17,570)
480,000
-
-
21,750,349
(17,571,264)
51,470
35,000 4,265,555
-
-
-
(725,433)
-
-
(725,433)
-
42,000
-
42,000
(725,433)
42,000
-
(683,433)
Balance at 30 June 2018
21,750,349
(18,296,697)
93,470
35,000 3,582,122
30 June 2019
Balance at 1 July 2018
21,750,349
(18,296,697)
93,470
35,000 3,582,122
Options Issued During the Period
-
-
-
45,756
45,756
Issue of Share Capital
Capital Raising costs
14
14
1,939,250
(77,840)
-
-
-
-
- 1,939,250
-
(77,840)
23,611,759
(18,296,697)
93,470
80,756 5,489,288
Loss for the year
- Change in Fair value of equity
instruments designated at FVOCI
Total Comprehensive Loss
- Transfer of fair value reserve of
equity instruments designated at
FVOCI
-
-
-
(1,435,516)
-
-
(25,729)
67,741
(67,741)
-
-
-
(1,435,516)
(25,729)
-
Balance at 30 June 2019
23,611,759
(19,664,471)
-
80,756 4,028,045
The accompanying notes form part of these financial statements.
27
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES
(a)
(b)
registered
Reporting entity
Your directors present their report on the
Company for the financial year ended 30
June 2019. The Company is a listed public
company
in Australia. The
principal activities are the exploration for
and evaluation of economic deposits for gold
and other minerals in North Queensland
and Western Australia. The address of the
Company’s registered office is Suite 4, 213
Balcatta Rd, Balcatta WA 6021.
and
results
Basis of preparation and statement
of compliance
The general-purpose financial statements
of the Company have been prepared
in accordance with the requirements of
the Corporations Act 2001, Australian
other
Accounting
Standards
authoritative pronouncements of
the
Australian Accounting Standards Board
(AASB). Compliance with Australian
Accounting Standards
full
compliance with the International Financial
Reporting Standards (IFRS) as issued by the
International Accounting Standards Board
(IASB). Great Southern Mining Limited is a
for-profit entity for the purpose of preparing
the financial statements
The accounting policies detailed below have
been consistently applied to all of the years
presented unless otherwise stated.
The financial report is presented in Australian
dollars. The financial statements for the
year ended 30 June 2019 were approved
and authorised for issue by the Board of
Directors on 13 September 2019.
in
(c)
Adoption of new and revised standards
Changes in accounting policies on initial
application of Accounting Standards
A number of new and revised standards
became effective for the first time to
annual periods beginning on or after 1 July
2018. Information on the more significant
28
standard(s) relevant to the Company is
presented below.
AASB 9 Financial Instruments – resulted
in gains and losses reclassified from OCI
as a result of a reclassification of financial
assets from the fair value through OCI
measurement category to fair value through
profit or loss.
AASB 9 Financial Instruments replaces AASB
139 Financial Instruments: Recognition and
Measurement. It makes major changes to
the previous guidance on the classification
and measurement of financial assets and
introduces an ‘expected credit loss’ model
for impairment of financial assets.
The
investment classifications available-
for-sale financial assets and Held-to-
maturity investment’ are no longer used
and Financial assets at fair value through
other comprehensive income (FVOCI) was
introduced. The Company had $180,000
of available-for-sale financial assets at 30
June 2018. These have been reclassified
to Financial assets at fair value through
other comprehensive
(FVOCI).
When adopting AASB 9, the Group has
applied transitional relief and opted not to
restate prior periods. Differences arising
from the adoption of AASB 9 in relation to
classification, measurement, and impairment
are recognised in opening retained earnings
as at 1 July 2018.
income
AASB 15 Revenue from Contracts with
Customers – no impact on the Company.
AASB 2016-5 Amendments to Australian
Accounting Standards - Classification and
Measurement of Share-based Payment
Transactions.
AASB 2018-1 Amendments to Australian
Accounting
Annual
-
Standards
Improvements 2015-2017 Cycle.
Most of the other amendments listed above
did not have any impact on the amounts
recognised in prior periods and are not
expected to significantly affect the current
or future periods.
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c)
Adoption of new and revised standards (continued)
Changes in accounting policies on initial application of Accounting Standards
The directors have also reviewed all new Standards and Interpretations that have been issued but
are not yet effective for the year ended 30 June 2019. A summary of the impact is contained in the
table below:
New /revised
Pronouncement
Superseded
Pronouncement
AASB 16 Leases AASB 117 Leas-
es, Int. 4 Deter-
mining whether
an Arrangement
contains a Lease,
Int. 115 Oper-
ating Leases—
Lease Incentives,
Int. 127 Evalu-
ating the Sub-
stance of Trans-
actions Involving
the Legal Form
of a Lease
Effective
Date
01-Jul-
19
Nature of Change
AASB 16:
a. replaces AASB
117 Leases and
some lease-related
Interpretations
b. requires all leases
to be accounted for
‘on-balance sheet’
by lessees, other
than short-term
and low value asset
leases
c. provides new
guidance on the
application of the
definition of lease
and on sale
and lease back
accounting
d. largely retains the
existing lessor
accounting
requirements in
AASB 117
e. requires new
and different
disclosures about
leases.
Likely impact on initial
application
Based on the entity’s assessment, it is expected
that the first-time adoption of AASB 16 for the
year ending 30 June 2020 will have a material
impact on the transactions and balances
recognised in the financial statements, in
particular:
- At the time of the assessment the Company is
a junior exploration Company. As exploration
leases are excluded from AASB 16 the only
material lease which may impact the financial
statements is the lease over the premises.
- lease assets and financial liabilities on the
statement of financial position will increase
by approximately $0.16 million respectively
(based on the facts at the date of the
assessment).
-
there will be a reduction in the reported
equity as the carrying amount of lease assets
will reduce more quickly than the carrying
amount of lease liabilities.
- EBIT in the statement of profit or loss and
other comprehensive income will be higher
as the implicit interest in lease payments
for former off-balance sheet leases will be
presented as part of finance costs rather than
being included in operating expenses.
-
operating cash outflows will be lower
and financing cash flows will be higher in
the statement of cash flows as principal
repayments on all lease liabilities will now
be included in financing activities rather
than operating activities. Interest can also be
included within financing activities.
There are no other standards that are not yet effective and that would be expected to have a material impact on
the entity in the current or future reporting periods and on foreseeable future transactions.
29
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
(d)
Critical accounting estimates and
judgements
The application of accounting policies
requires the use of judgements, estimates
and assumptions about carrying values of
assets and liabilities that are not readily
apparent from other sources. The estimates
and associated assumptions are based on
historical experience and other factors that
are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
are recognised in the period in which the
estimate is revised if it affects only that
period, or in the period of the revision and
future periods if the revision affects both
current and future periods.
Exploration and evaluation expenditure
carried forward
In accordance with accounting policy Note 1
(q), management determines when an area
of interest should be abandoned. When a
decision is made that an area of interest is
not commercially viable, all costs that have
been capitalised in respect of that area of
interest are written off. In determining this,
assumptions including the maintenance of
title, ongoing expenditure and prospectivity
are made. During the year, $146,471 (2018:
nil) of expenditure was written off. See Note
11 for disclosure of carrying values.
Recovery of deferred tax assets
Deferred tax assets are currently not
recognised in the financial statements. The
extent to which deferred tax assets can
be recognised is based on an assessment
of the probability of the Company’s future
taxable income against which the deferred
tax assets can be utilised. Given the current
stage of the Company’s exploration and
development cycle, the
likelihood and
timeline of future taxable income cannot be
reliably estimated. Refer Note 4.
30
Share based payments
The Company measures the cost of equity-
settled transactions with employees by
reference to the fair value of the equity
instruments at the date at which they are
granted. For security instruments issued
to consultants, consideration of the fair
value of services received (if available) or
fair value of the equity instruments granted
as consideration is used. The fair value is
determined by using the Black-Scholes
model taking into account the terms and
conditions upon which the instruments were
granted. The accounting estimates and
assumptions relating to equity-settled share-
based payments would have no impact on
the carrying amounts of assets and liabilities
within the next annual reporting period but
may impact profit or loss and equity. (Refer
to Note 23).
(e)
Segment reporting
reported
in
Operating segments are
a manner consistent with the
internal
reporting provided to the chief operating
decision maker. The chief operating decision
maker, who is responsible for allocating
resources and assessing performance of the
operating segments, has been identified
as the Board of Great Southern Mining
Limited. The Company’s activities included
the exploration and evaluation of projects
in North Queensland and Western Australia.
The Western Australian tenements were
acquired during the current financial year
and hence are deemed to be a new segment.
In addition, corporate assets which are not
directly attributable to the business activities
of the operating segment are not allocated
to a segment. In the financial periods under
audit, this primarily applies to the Company’s
registered office and administrative duties.
There have been no changes from prior
periods in the measurement methods used
to determine reported segment profit or
loss.
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
(f)
Revenue recognition
received or
Revenue is measured at fair value of the
consideration
receivable.
Revenue is recognised to the extent that it
is probable that the economic benefits will
flow to the Company and the revenue can
be reliably measured. The following specific
recognition criteria must also be met before
revenue is recognised:
Interest income
Interest revenue is recognised on a time
proportionate basis that takes into account
the effective yield on the financial asset.
(g)
Income tax
The income tax expense or benefit 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 difference and to unused tax
losses.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the end of the
reporting period in the countries where the
company operates and generates taxable
income. Management periodically evaluates
positions taken in tax returns with respect to
situations in which applicable tax regulation
is subject to interpretation. It establishes
provisions where appropriate on the basis
of amounts expected to be paid to the tax
authorities.
Current tax assets and liabilities for the
current and prior periods are measured
at the amount expected to be recovered
from or paid to the taxation authorities.
The tax rates and tax laws used to compute
the amount are those that are enacted or
substantively enacted by the reporting date.
31
Deferred income tax is provided on all
temporary differences at the reporting
date between the tax bases of assets and
liabilities and their carrying amounts for
financial reporting purposes.
Deferred income tax liabilities are recognised
for all taxable temporary differences except:
• when the deferred income tax liability
arises from the initial recognition of goodwill
or of an asset or liability in a transaction that
is not a business combination and that, at
the time of the transaction, affects neither
the accounting profit nor taxable profit or
loss; or
• when the taxable temporary difference is
associated with investments in subsidiaries,
associates or interests in joint ventures, and
the timing of the reversal of the temporary
difference can be controlled and it is
probable that the temporary difference will
not reverse in the foreseeable future.
Deferred income tax assets are recognised
for all deductible temporary differences,
carry-forward of unused tax assets and
unused tax losses, to the extent that it is
probable that taxable profit will be available
against which the deductible temporary
differences and the carry-forward of unused
tax credits and unused tax losses can be
utilised, except:
income tax asset
• when the deferred
relating
temporary
the deductible
to
difference arises from the initial recognition
of an asset or liability in a transaction that
is not a business combination and, at the
time of the transaction, affects neither the
accounting profit nor taxable profit or loss;
or
• when the deductible temporary difference
is associated with investments in associates
or interests in joint ventures, in which case a
deferred tax asset is only recognised to the
extent that it is probable that the temporary
difference will reverse in the foreseeable
Notes to the Financial Statements
For the year ended 30 June 2018
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
• receivables and payables, which are stated
with the amount of GST included.
future and taxable profit will be available
against which the temporary difference can
be utilised.
The carrying amount of deferred income tax
assets is reviewed at each reporting date
and reduced to the extent that it is no longer
probable that sufficient taxable income
will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets
are reassessed at each reporting date and
are recognised to the extent that it has
become probable that future taxable profit
will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities
are measured at the tax rates that are
expected to apply to the year when the
asset is realised, or the liability is settled,
based on tax rates (and tax laws) that have
been enacted or substantively enacted at
the reporting date.
Income taxes relating to items recognised
directly in equity are recognised in equity
and not in profit or loss.
if a
Deferred tax assets and deferred tax
liabilities are offset only
legally
enforceable right exists to set off current
tax assets against current tax liabilities and
the deferred tax assets and liabilities relate
to the same taxable entity and the same
taxation authority.
Other taxes
Revenues, expenses and assets are
recognised net of the amount of GST except:
• when the GST incurred on a purchase
of goods and services is not recoverable
from the taxation authority, in which case
the GST is recognised as part of the cost
of acquisition of the asset or as part of the
expense item as applicable; and
32
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.
and
contingencies
Commitments
are
disclosed net of the amount of GST
recoverable from, or payable to, the taxation
authority.
(h)
IMPAIRMENT OF ASSETS
The Company assesses at each reporting
date whether there is an indication that an
asset may be impaired. If any such indication
exists, or when annual impairment testing for
an asset is required, the Company makes an
estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher
of its fair value less costs to sell and its value-
in-use and is determined for an individual
asset, unless the asset does not generate
cash inflows that are largely independent
of those from other assets or groups of
assets and the asset’s value-in-use cannot
be estimated to be close to its fair value. In
such cases the asset is tested for impairment
as part of the cash-generating unit to which
it belongs. When the carrying amount of
an asset or cash-generating unit exceeds
its recoverable amount, the asset or cash-
generating unit is considered impaired and
is written down to its recoverable amount.
In 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. Impairment losses relating to
continuing operations are recognised in
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
those expense categories consistent with
the function of the impaired asset unless
the asset is carried at revalued amount (in
which case the impairment loss is treated as
a revaluation decrease).
An assessment
is also made at each
reporting date as to whether there is
any indication that previously recognised
impairment losses may no longer exist or
may have decreased. If such indication
exists, the recoverable amount is estimated.
A previously recognised impairment loss is
reversed only if there has been a change in
the estimates used to determine the asset’s
recoverable amount since the last impairment
loss was recognised. If that is the case the
carrying amount of the asset is increased
to its recoverable amount. That increased
amount cannot exceed the carrying amount
that would have been determined, net of
depreciation, had no impairment loss been
recognised for the asset in prior years. Such
reversal is recognised in profit or loss unless
the asset is carried at revalued amount,
in which case the reversal is treated as a
revaluation increase. After such a reversal
the depreciation charge is adjusted in
future periods to allocate the asset’s revised
carrying amount, less any residual value, on
a systematic basis over its remaining useful
life.
(i)
CASH AND CASH EQUIVALENTS
in
Cash comprises cash at bank and
hand. Cash equivalents are short term,
highly liquid investments that are readily
convertible to known amounts of cash and
which are subject to an insignificant risk of
changes in value. Bank overdrafts are shown
within borrowings in current liabilities in the
statement of financial position.
For the purposes of the statement of cash
flows, cash and cash equivalents consist of
cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
33
(j)
TRADE AND OTHER RECEIVABLES
receivables are measured on
Trade
initial recognition at fair value and are
subsequently measured at amortised cost
using the effective interest rate method, less
any allowance for impairment for expected
credit losses. Trade receivables are generally
due for settlement within periods ranging
from 15 days to 30 days.
Impairment of trade receivables is continually
reviewed and those that are considered to
be uncollectible are written off by reducing
the carrying amount directly. An allowance
account is used when there is objective
evidence that the Company will not be
able to collect all amounts due according
to the original contractual terms. Factors
considered by the Company in making this
determination
include known significant
financial difficulties of the debtor, review
information and significant
of financial
delinquency in making contractual payments
to the Company. The impairment allowance
is set equal to the difference between the
carrying amount of the receivable and the
present value of estimated future cash flows,
discounted at the original effective interest
rate. Where receivables are short-term
discounting is not applied in determining
the allowance.
the
the
impairment
in
income within
loss
The amount of
statement of
recognised
is
comprehensive
other
expenses. When a trade receivable for
which an impairment allowance had been
recognised becomes uncollectible
in a
subsequent period, it is written off against
the
Subsequent
recoveries of amounts previously written off
are credited against other expenses in the
statement of comprehensive income.
allowance
account.
(k)
FINANCIAL ASSETS
Recognition and derecognition
Financial assets and financial liabilities are
recognised when the Group becomes a
party to the contractual provisions of the
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
financial instrument. Financial assets are
derecognised when the contractual rights to
the cash flows from the financial asset expire,
or when the financial asset and substantially
all the risks and rewards are transferred. A
financial liability is derecognised when it
is extinguished, discharged, cancelled or
expires.
Classification and initial measurement of
financial assets
Except for those trade receivables that
do not contain a significant financing
component and are measured at the
transaction price in accordance with IFRS
15, all financial assets are initially measured
at fair value adjusted for transaction costs
(where applicable). Financial assets, other
than those designated and effective as
hedging instruments, are classified into the
following categories:
• amortised cost
• fair value through profit or loss (FVTPL)
• fair value through other comprehensive
income (FVOCI).
In the periods presented the Company has
financial assets categorised as FVOCI.
The classification is determined by both:
• the entity’s business model for managing
the financial asset
• the contractual cash flow characteristics of
the financial asset.
Subsequent measurement of financial assets
Financial assets at fair value through other
comprehensive income (FVOCI)
The Group accounts for financial assets
at FVOCI if the assets meet the following
conditions:
• they are held under a business model
whose objective it is “hold to collect” the
associated cash flows and sell; and
34
• the contractual terms of the financial
assets give rise to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.
Any gains or losses recognised in other
comprehensive income (OCI) will not be
recycled upon derecognition of the asset.
Classification and measurement of financial
liabilities
liabilities
The Group’s financial
include
borrowings, trade and other payables. The
Company does not have any derivative
any period
financial
presented.
instruments
in
Financial liabilities are initially measured at
fair value, and, where applicable, adjusted
for transaction costs unless the Group
designated a financial liability at fair value
through profit or loss.
liabilities
interest method except
Subsequently,
are
financial
measured at amortised cost using the
effective
for
derivatives and financial liabilities designated
at FVTPL, which are carried subsequently at
fair value with gains or losses recognised
in profit or loss (other than derivative
financial instruments that are designated
and effective as hedging instruments). All
interest-related charges and, if applicable,
changes in an instrument’s fair value that are
reported in profit or loss are included within
finance costs or finance income.
(l)
PLANT AND EQUIPMENT
Plant and equipment is stated at cost
less accumulated depreciation and any
accumulated impairment losses. Such cost
includes the cost of replacing parts that are
eligible for capitalisation when the cost of
replacing the parts is incurred. Similarly,
when each major inspection is performed, its
cost is recognised in the carrying amount of
the plant and equipment as a replacement
only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line
basis over the estimated useful life of the
assets as follows:
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Plant and equipment – over 3 to 5 years
The assets’ residual values, useful lives and
amortisation methods are reviewed, and
adjusted if appropriate, at each financial
year end.
(i) Impairment
for
The carrying values of plant and equipment
are reviewed
impairment at each
reporting date, with recoverable amount
being estimated when events or changes
in circumstances indicate that the carrying
value may be impaired.
The recoverable amount of plant and
equipment is the higher of fair value less
costs to sell and value in use. In 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.
For an asset that does not generate largely
recoverable
independent cash
amount
the cash-
generating unit to which the asset belongs,
unless the asset’s value in use can be
estimated to approximate fair value.
inflows,
for
is determined
An impairment exists when the carrying
value of an asset or cash-generating units
exceeds its estimated recoverable amount.
The asset or cash-generating unit is then
written down to its recoverable amount.
For plant and equipment,
impairment
losses are recognised in the statement of
comprehensive income in a separate line
item.
(ii) Derecognition and disposal
An
is
item of plant and equipment
derecognised upon disposal or when
no further future economic benefits are
expected from its use or disposal.
Any gain or loss arising on derecognition
of the asset (calculated as the difference
between the net disposal proceeds and the
35
carrying amount of the asset) is included
in profit or loss in the year the asset is
derecognised.
(m) TRADE AND OTHER PAYABLES
Trade payables and other payables are
carried at amortised cost and represent
liabilities for goods and services provided to
the Company prior to the end of the financial
year that are unpaid and arise when the
Company becomes obliged to make future
payments in respect of the purchase of
these goods and services. Trade and other
payables are presented as current liabilities
unless payment is not due within 12 months.
(n) EMPLOYEE LEAVE BENEFITS
Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including
non-monetary benefits, annual leave and
accumulating sick leave expected to be
settled within 12 months of the reporting
date are recognised in other payables or in
employee benefits, in respect of employees’
services up to the reporting date. They
are measured at the amounts expected
to be paid when the liabilities are settled.
Liabilities for non-accumulating sick leave
are recognised when the leave is taken and
are measured at the rates paid or payable.
Other long-term employee benefits
The Company’s liabilities for annual leave
and long service leave are included in other
long-term benefits as they are not expected
to be settled wholly within 12 months
after the end of the period in which the
employees render the related service. They
are measured at the present value of the
expected future payments to be made to
employees. The expected future payments
incorporate anticipated future wage and
salary
levels, experience of employee
departures and periods of service, and are
discounted at rates determined by reference
to market yields at the end of the reporting
period on high quality corporate bonds that
have maturity dates that approximate
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
the timing of the estimated future cash
outflows. Any re-measurements arising from
experience adjustments and changes in
assumptions are recognised in profit or loss
in the periods in which the changes occur.
The Company presents employee benefit
in the
liabilities
obligations as current
statement of financial position
the
if
Company does not have an unconditional
right to defer settlement for at
least
12 months after the reporting period,
irrespective of when the actual settlement is
expected to take place.
(o)
ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to
the issue of new shares or options are shown
in equity as a deduction, net of tax, from
the proceeds. Incremental costs directly
attributable to the issue of new shares or
options for the acquisition of a new business
are not included in the cost of acquisition as
part of the purchase consideration.
(p) EARNINGS PER SHARE
Basic earnings per share is calculated as net
profit/loss adjusted to exclude any costs
of servicing equity (other than dividends)
and preference share dividends, divided by
the weighted average number of ordinary
shares, adjusted for any bonus element.
Diluted earnings per share is calculated as
net profit/loss adjusted for:
• costs of servicing equity
dividends) and preference share dividends;
(other than
• the after-tax effect of dividends and
interest associated with dilutive potential
ordinary shares that have been recognised
as expenses; and
non-discretionary
• other
in
revenues or expenses during the period that
would result from the dilution of potential
ordinary shares; divided by the weighted
changes
36
average number of ordinary shares and
dilutive potential ordinary shares, adjusted
for any bonus element.
(q) EXPLORATION AND EVALUATION
EXPENDITURE
Exploration and evaluation expenditure in
relation to each separate area of interest are
recognised as an exploration and evaluation
asset in the year in which they are incurred
where the following conditions are satisfied:
(i)
interest are current; and
the rights to tenure of the area of
(ii) at least one of the following conditions
is also met:
expected
recouped
(a) the exploration and evaluation
to
are
expenditures
be
successful
through
development and exploitation of the
area of interest, or alternatively, by its
sale; or
(b) exploration and evaluation activities
in the area of interest have not at the
reporting date reached a stage which
permits a
reasonable assessment
of the existence or otherwise of
economically
reserves,
and active and significant operations
in, or in relation to, the area of interest
are continuing.
recoverable
Exploration and evaluation assets are
initially measured at cost and
include
acquisition of rights to explore, studies,
exploratory drilling, trenching and sampling
and associated activities and an allocation
of depreciation and amortised of assets
used in exploration and evaluation activities.
General and administrative costs are only
included in the measurement of exploration
and evaluation costs where
they are
related directly to operational activities in a
particular area of interest.
Exploration and evaluation assets are
assessed for impairment when facts and
circumstances suggest that the carrying
amount of an exploration and evaluation
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
the best available estimate of the number of
share options expected to vest.
asset may exceed its recoverable amount.
The recoverable amount of the exploration
and evaluation asset (for the cash generating
unit(s) to which it has been allocated being
no larger than the relevant area of interest)
is estimated to determine the extent of
the impairment loss (if any). Where an
impairment loss subsequently reverses, the
carrying amount of the asset is increased
to the revised estimate of its recoverable
amount, but only to the extent that the
increased carrying amount does not exceed
the carrying amount that would have been
determined had no impairment loss been
recognised for the asset in previous years.
Where a decision has been made to proceed
with development in respect of a particular
area of interest, the relevant exploration and
evaluation asset is tested for impairment
and the balance is then reclassified to
development.
(r)
SHARE BASED PAYMENTS
The Company operates equity-settled share-
based remuneration plans for its employees.
None of the Company’s plans feature any
options for a cash settlement.
All goods and services received in exchange
for the grant of any share-based payment
are measured at their fair values. Where
employees are rewarded using share-based
payments, the fair values of employees’
services are determined
indirectly by
reference to the fair value of the equity
instruments granted. This fair value
is
appraised at the grant date and excludes
the impact of non-market vesting conditions
(for example profitability and sales growth
targets and performance conditions).
All share-based remuneration is ultimately
recognised as an expense in profit or loss
with a corresponding credit to the share
option reserve. If vesting periods or other
vesting conditions apply, the expense is
allocated over the vesting period, based on
revised
Non-market vesting conditions are included
in assumptions about the number of options
that are expected to become exercisable.
if
Estimates are subsequently
there is any indication that the number
of share options expected to vest differs
from previous estimates. Any cumulative
adjustment prior to vesting is recognised in
the current period. No adjustment is made
to any expense recognised in prior periods
if share options ultimately exercised are
different to that estimated on vesting.
Upon exercise of share options, the proceeds
received net of any directly attributable
transaction costs are allocated to share
capital.
(s)
PROVISIONS, CONTINGENT LIABILITIES
AND CONTINGENT ASSETS
recognised when
Provisions are
the
Company has a present legal or constructive
obligation as a result of a past event, it is
probable that an outflow of economic
resources will be required from the Company
and amounts can be estimated reliably. The
timing or amount of the outflow may still be
uncertain.
Restructuring provisions are recognised only
if a detailed formal plan for the restructuring
has been developed and implemented, or
management has at least announced the
plan’s main features to those affected by
it. Provisions are not recognised for future
operating losses.
Provisions are measured at the estimated
expenditure required to settle the present
obligation, based on the most reliable
evidence available at the reporting date,
including
risks and uncertainties
associated with the present obligation.
Where there are a number of similar
obligations, the likelihood that an outflow
will be required in settlement is determined
by considering the class of obligations as
the
37
Notes to the Financial Statements
For the year ended 30 June 2019
• T h e C o m p a n y h a s h i s t o r i c a l l y
b e e n able
raise capital via
to
equity placements and rights issues
to shareholders. Given the strong
support of shareholders and
the
prospectivity of the Company’s current
projects the directors are confident
that any future capital raisings will be
successful. Subsequent to reporting
date the Company has also announced
its intention to undertake a significant
capital raising via a Prospectus.
The Company also maintains a significant
number of shares available to issue under
the ASX Listing Rule capacity.
The Company also has the support of the
its significant shareholder and Executive
Chairman John Terpu. In July 2019 an entity
associated with Mr Terpu entered a loan
agreement with the Company and advanced
$500,000 on a short term, unsecured basis
to fund working capital.
In addition, the Company announced on
30 July 2019 that it was proceeding with
a Rights Issue of 1 New Option for every 3
Shares held at $0.010 per New Option to
raise up to $1.01 million before costs. The
funds raised will be used to fund working
capital and future exploration programs.
The Rights Issue closed on the 28 August
issue of
2019 which resulted
83,588,449 New Options raising a total of
$835,884 before costs. The shortfall will be
placed at the director’s discretion within
three months.
in the
The directors believe that the above funding
strategies will be achieved and the going
concern basis is appropriate.
NOTE 1: STATEMENT OF SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
a whole. Provisions are discounted to their
present values, where the time value of
money is material.
Any reimbursement that the Company
can be virtually certain to collect from a
third party with respect to the obligation is
recognised as a separate asset. However,
this asset may not exceed the amount of the
related provision.
No liability is recognised if an outflow of
economic resources as a result of present
obligation is not probable. Such situations
are disclosed as contingent liabilities, unless
the outflow of resources is remote in which
case no liability is recognised.
(t) GOING CONCERN
the working
capital
Notwithstanding
deficiency of $362,555 (30 June 2018:
deficiency of $82,749),
the financial
statements have been prepared on the
going concern basis, which contemplates
continuity of normal business activities and
the realisation of assets and settlement of
liabilities in the ordinary course of business.
During the period the Company incurred
a net loss of $1,435,516 (2018: loss of
$725,433). Net cash outflows from operating
and investing activities during the period
were $2,366,789 (2018: cash outflows of
$1,222,803).
The ability of the Company to continue to
pay its debts as and when they fall due is
dependent upon:
• Continued cash management and
monitoring of operating cashflows
success.
according
to exploration
Future exploration expenditure
is
generally discretionary in nature and
exploration activities may be slowed
or suspended as part of the Company’s
cash management strategy;
38
Notes to the Financial Statements
For the year ended 30 June 2019
Should the Company be unable to obtain sufficient future funding there is a material uncertainty
which may cast significant doubt as to whether the Company will be able to continue as a going
concern and whether it will realise its assets and extinguish its liabilities in the normal course of
business and at the amounts stated in the financial statements. The financial statements do not
include any adjustments relating to the recoverability and classification of recorded asset amounts
nor to the amounts and classification of liabilities that might be necessary should the Company not
continue as a going concern.
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
2019
$
2018
$
The following revenue and expense items are relevant in explaining the financial performance for the year.
Revenue
- Interest income – other parties
Expense
- Administration and rental services fees
- Employee benefits expense
- Share based payment expense (Note 24)
- Non-refundable consideration paid – Cox’s Find Gold Project
3,156
15,348
79,294
240,120
35,000
50,000
318,768
34,295
35,000
-
The administration services fee is paid to a related party, refer Note 17.
Of the Employee benefits expense above, $17,031 related to superannuation (2018: $2,975).
NOTE 3: AUDITOR’S REMUNERATION
The auditor of Great Southern Mining Limited is HLB Mann Judd.
Amounts received or due and receivable by HLB Mann Judd for:
2019
$
2018
$
Audit and review of financial reports
25,564
21,500
NOTE 4: INCOME TAX EXPENSE
(a) Recognised in the statement of comprehensive income
Current income tax expense on net loss for the year
Deferred tax expense relating to the origination and
reversal of temporary differences
Total income tax benefit
2019
$
2018
$
-
-
-
-
-
-
(b) Reconciliation between income tax expense and pre-tax profit/(loss)
Loss before tax
Income tax using the domestic small business corporation tax rate of
30% (2018: 30%).
(1,435,516)
(725,433)
(430,655)
(217,325)
Tax effect of:
Non-deductible expenses
Other assessable income
Effect of temporary differences recognised directly in equity
Unused tax losses and temporary differences not recognised as deferred
tax assets
Income tax expense on pre-tax loss
39
14,889
20,322
(51,393)
446,837
-
2,763
-
-
214,561
-
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 4: INCOME TAX EXPENSE (continued)
(c) Tax expense/(benefit) relating to items of other comprehensive income.
2019
$
2018
$
Revaluation of available-for-sale investments
Disposal available-for-sale investments
Income tax applicable thereto
(d) Unrecognised deferred tax balances
Deferred tax assets and (liabilities) calculated at 30% (2018: 30%) have
not been recognised in respect of the following:
Income tax losses
Temporary differences
-
-
-
-
-
-
2,643,500
2,045,053
(966,522)
(815,217)
1,676,978
1,229,835
Deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets
(and deferred tax liabilities relating to (i) capitalised exploration expenditure for which immediate tax write-off is
available and (ii) revaluation of financial assets have not been recognised in the financial statements.)
Refer Note 1(d).
NOTE 5: (LOSS) PER SHARE
Basic and diluted loss per share
Weighted average number of ordinary shares used in
calculation of loss per share
2019
Cents per share
2018
Cents per share
(0.51)
(0.35)
282,193,959
208,661,685
Loss used in calculation of basic and diluted (loss) per share
(1,435,516)
(725,433)
Given the Company is in a loss position for the year ended 30 June 2019 the options that have been issued
during the period are anti-dilutive in nature and therefore do not impact the diluted earnings per share
calculation.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash on hand and at bank
The Company does not have any funds on short-term deposit.
NOTE 7: OTHER ASSETS
Prepaid expenses
NOTE 8: OTHER RECEIVABLES – NON-CURRENT
Exploration tenement guarantees
2019
$
2018
$
208,044
748,423
208,044
748,423
2019
$
2018
$
31,409
13,244
2019
$
2018
$
12,500
10,000
40
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 9: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
Listed securities – opening balance
Fair value movement through other comprehensive income
Disposal of securities during the period
Total Financial Assets at period end.
2019
$
180,000
(25,729)
(154,271)
2018
$
138,000
42,000
-
-
180,000
On 1 July 2018, being the date of initial application of AASB 9 Financial Instruments, the Company has elected
to designate all available-for-sale financial assets as Fair Value through Other Comprehensive In come (FVOCI).
The financial assets above were measured at fair value in the statement of financial position up until the date
of sale. The fair value was determined with reference to the quoted prices (unadjusted) in active markets for
identical assets (Level 1). The balance of the reserve of $67,741 included within equity was transferred to
accumulated losses on disposal.
The Company has a number of financial instruments which are not measured at fair value in the statement of
financial position.
The Directors consider that the carrying amounts of receivables, current payables and current liabilities are
considered to be a reasonable approximation their fair values.
NOTE 10: PLANT AND EQUIPMENT
Plant and equipment at cost
Less: Accumulated depreciation
Movement schedule for plant and equipment
Opening written down value
Additions
Sale
Depreciation
2019
$
2018
$
93,925
(79,012)
14,913
19,518
690
-
(5,295)
93,236
(73,718)
19,518
11,546
13,268
-
(5,296)
Closing written down value
14,913
19,518
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
Cost brought forward in respect of areas of interest in the exploration and
evaluation stage
Expenditure incurred during the year
Acquisition of Mt Weld Tenement Package (a)
Impairment recognised for the period (e)
Acquisition of Mon Ami Gold Project (b)
Cost carried forward
2019
$
2018
$
3,455,352
1,668,573
920,066
1,056,779
134,240
(146,471)
-
-
-
730,000
4,363,187
3,455,352
41
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE (continued)
(a)
In September 2018 the Company entered into an agreement to acquire a 100% interest in a tenement
package from Central Australian Rare Earths Pty Ltd (CARE), an Australian registered entity. The
Company acquired the rights to licences E38/2829, E38/2442; E38/2587 and E38/2856. Consideration
payable for the transaction consisted of a cash payment of $99,240 and 1,000,000 fully paid GSN shares (at
an issue price of $0.035 per share), subject to voluntary escrow until 30 December 2018 (500,000 shares)
and 30 June 2019 (500,000 shares). The shares were issued during the period and have been valued under
AASB 2: Share Based Payments as an acquisition of assets. All shares issued have been released from
escrow.
(b) The Company acquired the Mon Ami Gold Project in March 2018. The acquisition was deemed to be an
asset acquisition. The consideration payable for the transaction and the relevant market values have been
determined as follows:
Cash Consideration payable (c)
Value of 15 million Ordinary Shares in the Company
issued as consideration (d)
Consideration payable
250,000
480,000
730,000
(c) The cash consideration is to be paid to a Company related to John Terpu (Executive Chairman). This was
approved by shareholders at the General Meeting held 29 March 2018. During the year the Company paid
$100,000 in cash to the Vendor. The remaining balance of $150,000 has been deferred until such time that
the Company has sufficient cash reserves or undertakes a significant capital raising. In the absence of a
definitive repayment date, the amount payable has been classified as a current liability. Refer Note 12.
(d) The value of the Ordinary Shares issued was determined by reference to the Fair Value of the Equity
Instruments granted as consideration at the date of the shares were issued and control of the project
passed to the Company.
(e) During the period the Company decided to cease further expenditure on the Black Mountain Project in
North Queensland that was not considered to be a core asset the subject to future exploration activities.
The amount has been impaired and is recognised in the statement of profit or loss and other
comprehensive income.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases
is dependent on successful development and commercial exploitation or sale of respective areas.
NOTE 12: TRADE AND OTHER PAYABLES
Trade and other payables (a)
Related party payables (Note 17)
Deferred Consideration - Mon Ami Gold Project (b)
2019
$
2018
$
365,206
8,630
150,000
535,922
24,481
250,000
523,836 810,403
(a) All trade and other payables are non-interest bearing and are normally settled on 30 – 60 day terms. All
amounts are short-term. The carrying values of trade payables and other payables are considered to be a
reasonable approximation of fair value.
(b) Deferred consideration is payable to an entity related to the Executive Chairman. The amount is considered
to be current given there is no set repayment date. An offsetting amount has been capitalised to Exploration
and Evaluation Expenditure as part of the acquisition costs of the Mon Ami Gold Project, refer to Note 11.
42
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 13: EMPLOYEE BENEFITS
Current employee entitlements
Annual Leave
Long-Service Leave
2019
$
2018
$
47,388
30,784
8,759
25,255
78,172
34,014
The significant movement in the annual leave liability is based on the full year accrual for M Petricevic, who
commenced in April 2018 and the increase in rate of pay to J Terpu effective 1 July 2018.
NOTE 14: ISSUED CAPITAL
2019
2018
No.
$
No.
$
Issued capital comprises:
Fully Paid Ordinary Shares
303,412,338
23,611,759 245,899,003
21,750,349
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Movement in issued shares for the year
2019
2018
No.
$
No.
$
Balance at beginning of the financial year
245,899,003
21,750,349 179,078,187
20,169,503
Issued for cash
- 3 August 2018
31,846,669
1,194,250
35,420,816
708,416
- 1 November 2018 - acquisition of Mt Weld Project
(Note 11)
- 31 December 2018 - Exercise of options
- 11 March 2019 - Settlement of director loan
- 22 March 2019 - Placement
- 29 March 2019 - Exercise of options
- 30 April 2019 - Placement
1,000,000
35,000
-
1,500,000
10,000,000
30,000
300,000
8,333,333
250,000
1,500,000
3,333,333
30,000
100,000
-
-
-
-
-
-
-
-
-
-
-
- 5 April 2018 - Acquisition of Mon Ami Gold Project
(a)
-
-
15,000,000
480,000
- 19 April 2018 - Placement
Costs associated with the issue of shares
-
-
-
(77,840)
16,400,000
410,000
-
(17,570)
Balance at end of the financial year
303,412,338
23,611,759 245,899,003
21,750,349
(a)
The 15,000,000 shares issued as part of the acquisition of the Mon Ami Gold Project are subject to
escrow. The amount has been capitalised as exploration and evaluation expenditure as part of the
acquisition costs of the project – refer Note 11.
43
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 15: RESERVES
Reconciliation of Movements:
Financial Asset Reserve
Share Option Reserve
2019
$
2018
$
2019
$
2018
$
Balance at beginning of the financial year
93,470
51,470
35,000
-
Change during the period
(93,470)
42,000
45,756
35,000
Balance at end of the financial year
-
93,470
80,756
35,000
The financial assets reserve records the revaluation financial assets at fair value through other comprehensive
income. During the period the Company disposed of its financial assets. These financial assets were measured
at Fair Value with movements recognised in the Reserve. On derecognition the remaining balance in the reserve
has been transferred within equity to accumulated losses.
The share-based payments reserve records the value of options issued and vested during the period.
NOTE 16: STATEMENT OF CASH FLOWS
2019
$
2018
$
Reconciliation of operating loss after income tax to net cash used in operating activities
Loss after income tax
(1,435,516)
(725,433)
Add: Non-cash items
Depreciation - PPE
Share based Payment expense
Impairment of exploration expenditure
Change in assets and liabilities
(Increase)/decrease in other current assets
(Increase)/decrease in other current operating receivables
Increase/(decrease) in operating payables
Increase/(decrease) in employee entitlements
Net cash used in operating activities
5,295
5,296
45,756
146,471
35,000
-
(18,165)
10,608
-
4,100
(207,735)
14,511
44,158
25,242
(1,419,735)
(630,676)
44
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 17: RELATED PARTY DISCLOSURES
Transactions with key management personnel
2019
$
2018
$
The following comprises amounts paid or payable and received or receivable applicable to entities in which key
management personnel (KMP) have an interest.
Paid/payable to:
J Terpu (as Director of Chellingtons Pty Ltd atf Red Star Trust) for
administration services)
-
318,768
Share based payment paid to Valleybrook Investments Pty Ltd - Note 12
-
480,000
Rent and service charges paid to Ruby Lane Pty Ltd atf the Terpu Trust
79,294
-
10,000,000 Fully paid ordinary shares issued to Valleyrose Pty Ltd in
satisfaction for the $300,000 loan provided to the Company in December
2018.
Amounts owing to related parties at balance date:
J Terpu (as Director of Chellingtons Pty Ltd atf Red Star Trust) for adminis-
tration services)
Mon Ami Acquisition - April 2018 - Refer note 12.
300,000
-
8,630
23,630
150,000
250,000
The totals of remuneration paid to KMP of the Company during the
year are as follows:
2019
$
2018
$
Short-term employee benefits
Post-employment benefits
Share Based Payments
Total KMP compensation
488,155
47,756
19,878
555,789
98,140
59,038
-
157,178
As part of the acquisition of the Mon Ami Gold Project during 2018 the Company has entered a Royalty Deed with
Valleybrook Investments Pty Ltd (“Valleybrook”), being a company related to J Terpu. The royalty entitles Valleybrook
to a net smelter return of 2.75% on revenue produced from sales of ore extracted. The term of the Royalty is for the
life of the mining lease on the Mon Ami Gold Project, subject to the availability of ore to be extracted. At the date of
this report the Company is not in a position to reliably estimate the amount, if any, that would be paid to Valleybrook
as a result of successful economic extraction of Ore from the project given its exploration stage and as such this
amount has not been recognised in the accounts of the Company at balance date.
45
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 18: COMMITMENTS AND CONTINGENT LIABILITIES
(a)
Exploration Expenditure Commitments
The Company has certain obligations to perform exploration work and expend minimum amounts of money on
such works on mineral exploration tenements.
These obligations will vary from time to time, subject to statutory approval and capital management. The terms
of the granted licences and those subject to relinquishment will alter the expenditure commitments of the Com-
pany as will change to areas subject to licence.
(b)
Native Title
Native title claims have been made with respect to areas which include tenements in which the Company has
interests. The Company is unable to determine the prospects for success or otherwise of the claims and, in any
event, whether or not and to what extent the claims may significantly affect the Company or its projects.
(c)
Contingencies
The Company entered a Royalty Deed on the acquisition of the Mon Ami Gold Project in April 2018 (refer Note
17).
In June 2019 the Company entered a binding term sheet to acquire the Cox’s Find Gold Project. The material
terms of the transaction are outlined below:
REMAINING PAYMENTS UNDER THE AGREEMENT
Deferred Payment 1
Deferred Payment 2
$800,000 cash payment to be made within twelve (12) months of comple-
tion of the formal sale and purchase agreement.
$1,000,000 cash payment if the Company declares a JORC 2012 Mineral
Resource of at least 500,000 ounces of gold. The exploration work
required to be undertaken to trigger Deferred Payment 2 is entirely at
GSN’s discretion. The timing of the payment is not yet known. Deferred
Payments 1 and 2 will be secured against the Project via a registered
mortgage.
Royalty
1.5% Net Smelter Return (NSR) on gold.
Also refer to further commentary in Note 21.
NOTE 19: SEGMENT INFORMATION
The Company undertakes mineral exploration and evaluation work on a number of tenements located in
Western Australia and North Queensland.
Management currently identifies the Company’s assets in each location as separate operating segments.
These operating segments are monitored by the Company’s chief operating decision maker and strategic
decisions are made on the basis of available cash reserves and exploration results.
The items included in the statement of profit or loss and other comprehensive income equate to the Corporate
Segment. Segment assets and liabilities are disclosed in the table below:
46
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 19: SEGMENT INFORMATION (continued)
Western Australia
Queensland
Corporate
Total
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
2019
$
2018
$
Assets
Exploration and
Evaluation
Expenditure
Cash and Cash
Equivalents
Financial
Instruments
Other assets
Group assets
Liabilities
1,981,082
1,227,874
2,382,105
2,227,477
-
-
4,363,187
3,455,351
-
-
-
-
-
-
-
-
-
-
-
-
208,044
748,423
208,044
748,423
-
180,000
-
180,000
58,822
42,762
58,822
42,762
1,834,611 1,227,874 2,528,576 2,227,477
266,866
971,186 4,630,053 4,426,537
220,214
724,898
224,902
-
156,892
119,519
602,008
844,416
The Company’s corporate assets, consisting of its corporate office headquarters are not allocated to any
exploration segment’s assets.
An impairment charge of $146,471 has been recognised in 2019 in relation to the Company’s Queensland
exploration assets.
NOTE 20: FINANCIAL RISK MANAGEMENT
Overview
This note presents information about the Company’s exposure to credit, liquidity and market risks, its
objectives, policies and processes for measuring and managing risk, and the management of capital.
The Company does not use any form of derivatives as it is not at a level of exposure that requires the use of
derivatives to hedge its exposure. Exposure limits are reviewed by management on a continuous basis. The
Company does not enter into or trade financial instruments, including derivative financial instruments, for
speculative purposes.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Management monitors and manages the financial risks relating to the operations of the Company
through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations and arises principally from the Company’s receivables from customers
and investment securities. Given the Company is not generating sales nor has significant receivable balances
apart from GST payments to be received from the ATO, at the reporting date there were no significant
concentrations of credit risk.
(i)
Cash and cash equivalents
The Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties
that have an acceptable credit rating. The Company has limited its risk to only holding bank accounts with two
Australian financial institutions.
47
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 20: FINANCIAL RISK MANAGEMENT (continued)
(ii)
Trade and other receivables
As the Company operates primarily in exploration activities, it does not have trade receivables and therefore is
not exposed to credit risk in relation to trade receivables.
The Company where necessary establishes an allowance for impairment that represents its estimate
of expected losses in respect of other receivables and investments. Management does not expect any
counterparty to fail to meet its obligations.
(iii)
Exposure to credit risk
The carrying amount of the Company’s financial assets represents the maximum credit exposure. The
Company’s maximum exposure to credit risk at the reporting date was:
Carrying Amount
Cash and cash equivalents
Other receivables
(iv)
Impairment Losses
2019
$
2018
$
208,044
748,423
12,500
10,000
None of the Company’s other receivables are past due (2018: nil).
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.
The Company manages liquidity risk by maintaining adequate cash reserves from funds raised in the market
and by continuously monitoring forecast and actual cash flows. The Company does not have any external
borrowings.
The following are the Company’s contractual maturities of financial liabilities, including estimated interest
payments and excluding the impact of netting agreements:
30 June 2019
($)
Carrying
amount
Contractual
cash flows
6 mths or less
6-12 mths
1-2 years
2-5 years
Non-interest
bearing
523,836
523,836
523,836
-
-
-
30 June 2018
($)
Carrying
amount
Contractual
cash flows
6 mths or less
6-12 mths
1-2 years
2-5 years
Non-interest
bearing
810,403
810,403
534,921
274,482
-
-
For additional commentary refer to the Going Concern note at 1(t).
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return. The Company no longer holds investments in listed securities.
Currency Risk
The Company is not exposed to currency risk and at the reporting date the Company holds no financial assets
or liabilities which are exposed to foreign currency risk.
48
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 20: FINANCIAL RISK MANAGEMENT (continued)
Commodity Price Risk
The Company operates primarily in the exploration and evaluation phase of gold projects and accordingly the
Company’s financial assets and liabilities are subject to minimal commodity price risk.
Interest Rate Risk
The Company is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that a
financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest-bearing
financial instruments. The Company does not use derivatives to mitigate these exposures.
At balance date the Company did not have any cash held in term deposits. During the prior period, excess cash
and cash equivalents were held in short term deposit at interest rates maturing over 90 day rolling periods.
(i)
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or
loss or through equity, therefore a change in interest rates at the reporting date would not affect profit or loss
or equity.
(ii)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
The analysis is performed on the same basis for 2019 and 2018.
Profit or loss
Equity
100bp increase
$
100bp decrease
$
100bp increase
$
100bp decrease
$
1,978
(1,978)
7,384
(7,384)
1,978
7,384
(1,978)
(7,384)
30 June 2019 Variable
rate instruments
30 June 2018 Variable
rate instruments
Fair Values
(i)
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position are as follows:
Cash and cash equivalents
Other receivables
Listed securities
Trade and other payables
Employee benefits
30 June 2019
30 June 2018
Carrying
amount
$
Fair value
$
Carrying
amount
$
Fair value
$
208,044
208,044
12,500
12,500
-
-
(523,837)
(78,172)
(381,464)
(523,837)
(78,172)
(381,464)
748,423
10,000
180,000
(810,403)
(34,014)
748,423
10,000
180,000
(810,403)
(34,014)
94,007
94,007
49
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 20: FINANCIAL RISK MANAGEMENT (continued)
(ii)
Fair value measurement of financial instruments
Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:
-
-
-
Level 1: quoted prices (unadjusted) in active markets for identical assets or liability.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
The following table shows the levels within the hierarchy of financial assets and liabilities measured at fair value
on a recurring basis at 30 June 2019 and 30 June 2018:
30 June 2019
Financial assets
Listed securities
Net Fair Value
30 June 2018
Financial assets
Listed securities
Net Fair Value
Level 1
$
Level 1
$
Level 2
$
Level 3
$
-
-
-
-
-
-
Level 2
$
Level 3
$
Total
$
Total
$
-
-
180,000
-
-
180,000
180,000
-
-
180,000
The Company performs valuations of financial items for financial reporting purposes. Valuation techniques
are selected based on the characteristics of each instrument, with the overall objective of maximising the use
of market-based information. Valuation processes and fair value changes are discussed regularly at Board
meetings.
Fair value of investment’s at FVOCI is subject to movements in the share price. A summary of a movement in
the share price of the listed investment is below:
30 June 2019
200bp increase
$
200bp decrease
$
200bp increase
$
200bp decrease
$
Profit or loss
Equity
Listed securities and
debentures
30 June 2018
Listed securities and
debentures
Capital Management
-
-
-
-
200bp increase
$
200bp decrease
$
200bp increase
$
200bp decrease
$
36,000
(36,000)
36,000
(36,000)
Capital is defined as the equity of the Company.
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of its
projects. Refer to Note 1(t) for additional commentary.
The Company’s focus has been to raise sufficient funds through equity to fund exploration and evaluation
activities. The Company monitors capital requirements regularly and there are no external borrowings as at
reporting date and is not subject to externally imposed capital requirements. There were no changes in the
Company’s approach to capital management during the year. The Board considers capital management at each
Board meeting and mitigates risks when identified.
50
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 21: EVENTS AFTER REPORTING DATE
As announced by the Company on 5 June 2019, the Company entered into an agreement with a third party for
the purchase of the Cox’s Find Project Under the terms of the Agreement, the Company must:
-
Following a four week due diligence period, pay a non-refundable cash deposit of $50,000 (Deposit) to
the vendor, which has now been paid by the Company.
Pay a non-refundable cash payment of $150,000 to the vendor following completion of an additional
period of 8 weeks from the payment of the Deposit and on both parties entering a formal agreement
(Completion Payment).
Pay an amount of $800,000 to the vendor within 12 months from the date of completion of the
transaction (Deferred Payment 1).
Pay an amount of $1,000,000, or issue shares to the value of $1,000,000, to the vendor on declaration
of a mineral resource of 500,000 ounces of gold on the Tenements (Deferred Payment 2);
Pay a 1.5% net smelter return royalty (NSR) on all gold extracted and recovered from the Tenements
including from any stockpiles currently on the mining tenements.
-
-
-
-
On 26 August 2019, the Company concluded its due diligence procedures on the Cox’s Find Gold Project and
the Directors resolved to proceed with the transaction. The Completion Payment ($150,000) was funded via
the short-term loan funds provided to the Company on 30 July 2019. Deferred Payment 1 and 2 have been
recognised as Contingent Liabilities in Note 18 in the Financial Statements.
On 18 July 2019, recognising the prospective nature of the Palmer River and with the view to acquiring
additional exploration tenure at low cost the Company lodged 2 applications for Mt Bennett and Eagle
Mountain Projects. The Project areas were not previously pegged and the area has been subject to little
historical exploration. The Directors are not aware of any reason that would result in the applications not being
granted to the Company.
On 30 July 2019 the Company announced its intention to undertake a significant capital raising via a non-
renounceable pro-rata Rights Issue. On 5 August 2019 a Prospectus was released for a non-renounceable
pro rata entitlement issue to Shareholders of one (1) New Option for every three (3) Shares held by Eligible
Shareholders registered at the Record Date at an issue price of $0.010 per New Option to raise up to
approximately $1,011,374 before costs. The New Options are exercisable at $0.05 per New Option on or
before three (3) years from issue date. The Rights Issue closed on the 28 August 2019 which resulted in the
issue of 83,588,449 New Options raising a total of $835,884 before costs. The shortfall will be placed at the
director’s discretion within three months.
On 30 July 2019 the Company entered a short-term loan agreement for $500,000 with a director related entity.
The loan is unsecured and on commercial terms.
Apart from the above, there has not been any other matter or circumstance that has arisen after the reporting
date that has significantly affected, or may significantly affect, the operations of the Company, the results of
those operations, or the state of affairs of the Company in future financial periods.
NOTE 22: LEASES
Operating leases as lessee
The Company has entered a lease agreement to lease an office building. The lease has been assessed to be an
operating lease. The future minimum lease payments are as follows:
Minimum lease payments due
Within 1 year
$
1-5 years
$
After 5 years
$
Total
$
30-Jun-19
30-Jun-18
70,104
182,612
-
252,716
66,924
247,929
-
314,853
The rental contract has a remaining non-cancellable term of 2 years.
The lease charges are payable to a related party – refer note 17.
51
Notes to the Financial Statements
For the year ended 30 June 2019
NOTE 23: SHARE BASED PAYMENTS
During the period, options were issued to employees and consultants in line with the approved long-term
incentive plan.
Share options and weighted average exercise prices are as follows for the reporting periods presented:
Outstanding at 30 June 2018
Granted
Exercised
Outstanding and exercisable
at 30 June 2019
Weighted average
exercise price ($)
Option Fair Value
$
11,800,000
3,300,000
(3,000,000)
12,100,000
35,000
45,756
-
80,756
1,500,000 options were exercised at an exercise price of $0.02 on 31 December 2018. A further 1,500,000
options were exercised at $0.02 on 29 March 2019.
The fair market value of options granted during the period of $45,756 has been included in the statement of
profit or loss and other comprehensive income.
The fair value of options granted were determined using the Black-Scholes option pricing model. There was no
performance based, nor vesting conditions attached to the Options.
The following principal assumptions were used in the valuation:
Valuation assumptions
Grant date
Share price at date of grant
Volatility
Expiry date
Dividend yield
Risk free investment rate
Fair value at grant date
Exercise price at date of grant
Exercisable from
Weighted average remaining contractual life
01-Nov-18
$ 0.035
86%
31-Dec-19
0
1.50%
$ 0.014
$ 0.020
01-Nov-18
1 yr
The underlying expected volatility was determined by reference to historical data of the Company’s shares over
a period of time. No special features inherent to the options granted were incorporated into measurement of
fair value.
The underlying expected volatility was determined by reference to historical data of the Company’s shares over
a period of time. No special features inherent to the options granted were incorporated into measurement of
fair value.
52
Notes to the Financial Statements
For the year ended 30 June 2019
1.
In the opinion of the Directors of Great Southern Mining Limited (the “Company”):
(a)
the accompanying financial statements and notes of the Company are in
accordance with the Corporations Act 2001 including:
(i)
(ii)
giving a true and fair view of the Company’s financial position at 30 June 2019
and of its performance for the year then ended; and
complying with Australian Accounting Standards, the Corporations Regulations
2001, professional reporting requirements and other mandatory requirements.
there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
(b)
(c)
2.
This declaration has been made after receiving the declarations required to be made to the
Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year
ended 30 June 2019.
This declaration is signed in accordance with a resolution of the Board of Directors.
John Terpu
Executive Chairman
Perth WA
13 September 2019
53
INDEPENDENT AUDITOR’S REPORT
To the members of Great Southern Mining Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Great Southern Mining Limited (“the Company”) which
comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and
other comprehensive income, the statement of changes in equity and the statement of cash flows
for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Company in accordance with
the auditor independence requirements of the Corporations Act 2001 and the ethical requirements
of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(t) in the financial report, which indicates that a material uncertainty
exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our
opinion is not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. In addition to the matter described in the
Material Uncertainty Related to Going Concern section, we have determined the matter described
below to be the key audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of exploration and evaluation
expenditure
(Note 11)
The Company has capitalised exploration and
evaluation expenditure of $4,363,187 as at 30
June 2019.
that
Our audit procedures determined
the
carrying value of exploration and evaluation
expenditure was a key audit matter as it was an
area which required the most audit effort,
required the most communication with those
charged with governance and was determined to
be of key importance to the users of the financial
statements.
Our procedures included but were not limited to
the following:
- We obtained an understanding of the key
processes associated with management’s
review of the carrying value of exploration
and evaluation expenditure;
- We considered the Directors’ assessment
of potential indicators of impairment;
- We obtained evidence that the Company
has current rights to tenure of its areas of
interest;
- We substantiated a sample of additions to
exploration expenditure during the year;
- We enquired with management and
reviewed ASX announcements and
minutes of Directors’ meetings to ensure
that the Company had not decided to
discontinue exploration and evaluation at
its areas of interest; and
- We examined the disclosures made in the
financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s annual report for the year ended 30 June 2019 but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Company to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the remuneration report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2019.
In our opinion, the Remuneration Report of Great Southern Mining Limited for the year ended 30
June 2019 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
13 September 2019
M R Ohm
Partner
ASX Additional Information
Additional information as required by the Australian Stock Exchange Limited Listing Rules and not disclosed
elsewhere in this report is set out below.
1.
1.1
Shareholder Information – all information is as at 3 September 2019
The Company had 297 holders of Ordinary Fully Paid Shares, 2 holders of Unlisted Options and
100 holders of Listed Options (issued as part of the Pro-Rate non renounceable Rights Issue
completed 28 August 2019).
Voting Rights
Subject to any rights or restrictions for the time being attached to any class or classes (at present there are
none) at general meetings of shareholders or classes of shareholders:
(a)
(b)
(c)
each shareholder entitled to vote, may vote in person or by proxy, attorney or representative;
on a show of hands, every person present who is a shareholder or a proxy, attorney or representative
of a shareholder has one vote; and
on a poll, every person present who is a shareholder or a proxy, attorney or representative of a
shareholder shall, in respect of each Fully Paid Share held, or in respect of which he/she has appointed
a proxy, attorney or representative, have one vote for the share, but in respect of partly paid Shares
shall have a fraction of a vote equivalent to the proportion which the amount paid up bears to the total
issue price for the Share.
There are no voting rights attached to the listed and unlisted options.
1.2
Distribution of Securities
Fully Paid Shares
Unlisted Options
Listed Options
No. Shares
No. Holders
No. Unlisted
Options
No. Holders
No. Listed
Options
No. Holders
Holding
Between
1-1,000
1,001-5,000
5,001-10,000
1,711
23,520
515,442
10,001-100,000
5,661,326
100,001-over
297,210,339
Total
303,412,338
14
7
52
126
98
297
0
0
0
0
12,100,000
12,100,000
0
0
0
0
2
2
2,582
24,407
89,522
1,590,466
81,881,472
83,588,449
9
7
12
33
39
100
The number of shareholders holding less than a marketable parcel is 26 totalling 33,931 shares based on the
closing market price at 3 September 2019.
There are no securities on issue subject to escrow.
1.3
Substantial Holders
The following holders of securities are recorded as substantial holders of securities:
Name
VALLEYBROOK INVESTMENTS PTY LTD
& OTHERS
PTY LTD & OTHERS
DANNY TAK TIM CHAN & OTHERS
BNP PARIBAS NOMS PTY LTD
Total
Fully Paid Shares
Listed Options
Number
%
Number
%
117,309,351
39
39,103,118
62,756,323
15,454,188
195,519,862
20.70
19,668,775
5
*
47
24
*
* Shareholder is not a substantial holder of Listed Options.
58
ASX Additional Information
1.4 Twenty Largest Holders of Listed Shares and Listed Options
Rank
Name
Shares
Rank
Name
Listed
Options
%
Holding
MR MARK BARNABA
4,375,000
1%
10
MR ADAM ANDREW
MACDOUGALL
4,125,000
1%
11
KIWI BATTLER PTY LTD
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
%
Holding
25%
19%
VALLEYROSE PTY LTD
74,601,536
DANNY TAK TIM CHAN 59,006,323
VALLEYBROOK
INVESTMENTS PTY LTD
BNP PARIBAS NOMS
PTY LTD
BNP PARIBAS NOMS
PTY LTD
42,707,815
14%
15,454,188
5%
13,947,635
5%
ANYSHA PTY LTD
12,500,105
4%
BNP PARIBAS
NOMINEES PTY LTD
GETMEOUTOFHERE
PTY LTD
NAUTICAL HOLDINGS
WA PTY LTD
7,179,221
2%
4,559,474
2%
4,547,488
1%
SUNSET CAPITAL
MANAGEMENT PTY LTD
4,000,000
1%
MR CONNOR MARK
ROBINSON
2,965,388
KIWI BATTLER PTY LTD
2,452,089
1%
1%
HSBC CUSTODY
NOMINEES
(AUSTRALIA) LIMITED
MRS CARMELA
FIRRIOLO
2,420,000
1%
2,212,500
1%
17
KAY BAY SUPER PTY LTD 2,000,000
1%
18
19
20
MR YULIANG FAN
1,800,000
1%
ORBIT DRILLING PTY
LTD
PLEASANT BANKS (WA)
PTY LTD
1,770,226
1%
1,700,000
1%
1.6 Share Buy-Backs
There is no current on-market buy-back scheme.
59
1
2
3
4
5
6
7
8
9
12
13
14
15
16
17
17
18
19
20
20
VALLEYROSE PTY LTD
24,867,179
DANNY TAK TIM CHAN 19,668,775
30%
24%
VALLEYBROOK
INVESTMENTS PTY LTD
14,235,939
17%
ANYSHA PTY LTD
4,166,702
5%
BNP PARIBAS NOMS
PTY LTD
GETMEOUTOFHERE
PTY LTD
NAUTICAL HOLDINGS
WA PTY LTD
MR ADAM ANDREW
MACDOUGALL
1,649,211
2%
1,519,825
2%
1,515,830
2%
1,375,000
2%
SUNSET CAPITAL
MANAGEMENT PTY LTD
MR CONNOR MARK
ROBINSON
1,333,334
2%
1,005,130
1%
HSBC CUSTODY
NOMINEES
(AUSTRALIA) LIMITED
BNP PARIBAS NOMS
PTY LTD
KAY BAY SUPER PTY LTD
666,667
MR YULIANG FAN
600,000
1%
ORBIT DRILLING
PTY LTD
NOVENTUM GROUP
PTY LTD
RED TWIN HOLDINGS
PTY LTD
PLEASANT BANKS (WA)
PTY LTD
ADMARK INVESTMENTS
PTY LTD
KATHLEEN BOZANIC
400,000
ANDREW JAMES PAUL
CARUSO
400,000
817,363
1%
806,666
1%
793,127
1%
1%
590,076
1%
500,000
1%
500,000
1%
462,758
1%
415,360
0%
0%
0%
ASX Additional Information
1.7
Securities Purchased On-market
On 29 June 2018 the Shareholders of the Company approved the Long-Term Incentive Plan (LTIP) to be adopted.
Details of ordinary shares issued by the company during or since the end of the financial year as a result of the
exercise of an option are:
3,300,000 unlisted options issued on 16 November 2018 under the Company’s long-term incentive
plan. No options have been issued to Directors of the Company during the period. 1,500,000 options
were exercised at an exercise price of $0.02 on 31 December 2018. A further 1,500,000 options were
exercised at $0.02 on 29 March 2019.
Unlisted Options
At the date of this report unissued ordinary shares of the Company under option are:
Date options granted Expiry date
Exercise price of shares ($)
Number under option
14-May-18
16-Nov-18
31-Dec-19
31-Dec-19
The 11.8 million options are held by Mr Mark Barnaba.
2.
Other Information
$0.02
$0.02
11,800,000
300,000
Great Southern Mining Limited, incorporated and domiciled in Australia, is a public listed Company limited by Shares.
3.
Tenement Schedule
Tenement
% Interest
Grant date
Expiry date
Location
Western Australia
M38/1256
E38/2829
M38/170
M38/578
M38/740
E38/2442
E38/2856
E38/2587
E38/3362
E38/3363
E38/3364
Queensland
EPM 18986
EPM 25196
EPM 25755
EPM 2652
EPM 26810
EPM 27130
EPM 27131
EPM 27291
EPM 27305
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
02-09-33
22-12-23
09-10-30
03-08-25
23-07-29
16-02-21
22-02-20
14-10-19
02-07-24
12-12-22
02-03-20
07-04-20
22-08-22
16-07-23
03-09-12
23-12-13
10-10-88
04-08-04
24-07-08
17-02-11
23-02-15
15-10-14
03-07-19
Pending grant
Pending grant
13-12-12
03-03-14
08-04-15
23-08-17
17-07-18
Pending grant
Pending grant
Pending grant
Pending grant
60
Mon Ami
Mon Ami
Cox's Find *
Cox's Find *
Cox's Find *
Mt Weld
Mt Weld
Mt Weld
East Laverton
East Laverton
East Laverton
Johnnycake
McArea
Black Mountain
Johnnycake North
Beaks Mountain
Reedy Range
Strathalbyn
Mt Bennett *
Eagle Mountain *
ASX Additional Information
* In July 2019 the Company lodged 2 applications for Mt Bennett and Eagle Mountain Projects. The tenements
are under application. The Directors are not aware of any reason that would result in the applications not being
granted to the Company. On 26 August 2019, the Company concluded its due diligence procedures and
proceeded with the transaction to acquire the Cox’s Find Gold Project. The acquisition will result in the Company
acquiring 100% interest in M38/170, M38/578 and M38/740.
4.
Other Additional Information
Corporate Governance:
The Company’s Corporate Governance Statement for 30 June 2019 as approved by the Board can be viewed as
www.gsml.com.au
Company Secretary:
The name of the Company Secretary is Mark Petricevic.
Address and telephone details of the Company’s Registered Office:
Suite 4, 213 Balcatta Rd
Balcatta WA 6021
T: 08 9240 4111
Share Register:
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
Telephone: (within Australia): 1300 554 474
Telephone: (outside Australia): +61 (02) 8280 7761
Facsimile: (02) 9287 0303
Review of Operations:
A review of operations is contained in the Directors Report.
61
ABN 37 148 168 825
Great Southern Mining Limited