GREAT SOUTHERN MINING LIMITED
ABN 37 148 168 825
Annual Report
For the Year Ended 30 June 2021
TABLE OF CONTENTS
CORPORATE DIRECTORY ...................................................................................................... 1
CHAIRMAN’S LETTER ............................................................................................................. 2
REVIEW OF OPERATIONS ...................................................................................................... 3
DIRECTORS’ REPORT ............................................................................................................16
AUDITOR’S INDEPENDENCE DECLARATION ......................................................................29
CORPORATE GOVERNANCE STATEMENT ..........................................................................30
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ..................31
STATEMENT OF FINANCIAL POSITION ................................................................................32
STATEMENT OF CASH FLOWS .............................................................................................33
STATEMENT OF CHANGES IN EQUITY .................................................................................34
NOTES TO THE FINANCIAL STATEMENTS...........................................................................35
DIRECTORS’ DECLARATION .................................................................................................65
INDENEPENDENT AUDITOR’S REPORT ...............................................................................66
ASX ADDITIONAL INFORMATION ..........................................................................................70
0
CORPORATE DIRECTORY
Directors
John Terpu
(Executive Chairman)
Kathleen Bozanic
(Independent Non-executive Director)
Andrew Caruso
(Independent Non-executive Director)
Matthew Blake
(Independent Non-executive Director)
Chief Executive Officer
Sean Gregory
Company Secretary
Mark Petricevic
Registered Office and Principal Place of Business
Suite 4, 213 Balcatta Road
Balcatta WA 6021
Telephone:
Facsimile:
Email:
Website:
(08) 9240 4111
(08) 9240 4054
admin@gsml.com.au
www.gsml.com.au
Solicitors
Allion Partners Pty Ltd
863 Hay Street
Perth WA 6000
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
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) 280 7100
Email: registrars@linkmarketservices.com.au
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)
1
CHAIRMAN’S LETTER
Dear Shareholders
It is my pleasure to present to you the 2021 Annual Report.
In what has been an incredibly busy year for Great Southern Mining Limited (the Company) we have
seen the Company expand its holding in the Duketon Greenstone Belt in Western Australia from 2km2 to
over 450km2, with multiple exploration and development opportunities, and increase its holding in
Queensland to over 2,000km2 of greenfields exploration tenure.
The Company’s stated aim is to create value through discoveries and I believe this has been achieved
throughout the year with multiple drill programs at Mon Ami and Cox’s Find, the acquisition of the highly
prospective ground at our Duketon Gold Project in July 2020 and in February 2021 including the Southern
Star Gold Deposit1.
The acquisition of this highly prospective tenure provides substantial exploration upside for FY2022. The
Company is now the second largest tenure holder in the Duketon Belt behind Regis Resources Limited
with drilling just completed Southern Star and other regional targets.
In addition, an updated Mineral Resource at Mon Ami has been delivered (55,500oz @ 1.1g/t gold with
95% of the Resource in the indicated category)2. This has formed the cornerstone of all of the necessary
technical and environmental studies completed during the year to make the deposit “shovel-ready”
subject to a commercial milling solution.
Further, North Queensland provides the Company with Tier One discovery potential. With over 1,000km2
of underexplored tenure immediately surrounding the Mt Carlton Gold Mine owned by Evolution Mining
Ltd, the exploration team spent FY2021 executing detailed mapping and geochemical programs designed
to delineate drill ready targets for later Q3/Q4 FY2022.
In September 2020 we added to the executive team with the appointment of Sean Gregory as Chief
Executive Officer to lead the two full-time Heads of Exploration in Western Australia and Queensland.
What sets the Company apart from its peers is the fact that its main projects are within 30km of operating
mills. The closer to operating mills, the increased likelihood that any deposits discovered will be economic.
Major gold mill operators adjacent to our tenure include Regis Resources, Evolution and Goldfields along
with a number of smaller mill operators. This provides the Company development options and avenues
to potential asset monetisation which other companies lack.
The Company is well positioned to capitalise on the positive market sentiment moving into the second
half of 2021 and our aggressive exploration activities and programs on both sides of the country will
provide exploration results.
I would also like to thank my fellow directors Kathleen Bozanic, Andrew Caruso and Matthew Blake for
their support and encouragement in setting the Company on an exciting pathway to success.
As fellow shareholders of the Company I take this opportunity to thank you for your support. I am confident
of another successful year ahead for Great Southern Mining Limited.
Yours sincerely
John Terpu
Executive Chairman
1 Refer to ASX announcements 28/7/20, and 2/2/21. Reference to 450km2 includes tenements subject to option and grant.
2 Refer to ASX announcement 21/7/21.
2
• 12m @ 4.0 g/t Au incl. 8m @ 5.9 g/t Au
• 26m @ 1.6 g/t Au incl. 5m @ 6.3 g/t Au
REVIEW OF OPERATIONS
The year to 30 June 2021 has been incredibly busy
for Great Southern Mining Limited (the Company or
GSN) with two completed drill programs at the
Cox’s Find and Mon Ami Gold Projects in Western
Australia, baseline soil sampling and geochemistry
work undertaken at the recently acquired Duketon
Gold Project and the ongoing soil sampling and drill
target generation activities at Edinburgh Park in
North Queensland.
A summary of the main exploration activities during
the period is below:
Duketon Gold Project
further 2
to purchase a
The Company significantly expanded the Duketon
Gold Project with the acquisition of an additional
large tenements and irrevocable and exclusive
tenement
options
applications in February 2021. The tenement
package is located 60km north of Laverton on the
Duketon Greenstone Belt
(Figure 1). Major
structures running through the GSN tenure are
interpreted to be deep-seated mantle tapping
structures that act as conduits or fluid pathways for
the gold
gold mineralisation. Examination of
the
deposits
relationship of these major structures and proximal
large-scale gold deposits such as Garden Well (1.9
Moz), Rosemont
(0.8Moz), Moolart Well
(0.13Moz), Tooheys Well (0.6Moz) and Baneygo
(0.4Moz).3
the Duketon Belt highlights
in
Southern
Star
Southern Star
The Duketon Gold Project includes the highly
prospective Southern Star gold deposit which was
last drilled in 2017-2018 by Duketon Mining Limited
noting over 600m of continuous mineralised strike
length, open in all directions.
Some of the best drill intersections at Southern Star
(refer ASX announcement 21/2/21), include:
• 15m @ 6.5 g/t Au incl. 4m @ 23.3 g/t Au
• 50m @ 1.8 g/t Au incl. 5m @ 9.2 g/t Au
and 6m @ 2.9 g/t Au
• 50m @ 1.6 g/t Au incl. 17m @ 3.8 g/t Au
• 34m @ 2.3 g/t Au incl. 12m @ 5.3 g/t Au
• 25m @ 2.5 g/t Au incl. 5m @ 10.7 g/t Au
• 35m @ 1.4 g/t Au incl. 11m @ 2.9 g/t Au
Figure 1 - GSN’s recently expanded tenements in the Duketon
Belt, north of Laverton, Western Australia.
In July 2021, the Company commenced its maiden
program at the deposit and in August 2021,
announced two rounds of initial preliminary results4
noting outstanding intersections from the first 22
holes of the Reverse Circulation (RC) program
including:
• 59m @ 2.1 g/t Au incl. 9m @ 4.5 g/t Au
and 16m @ 3.2 g/t Au from 53m in
21SSRC0009
• 7m @ 13.9 g/t Au incl. 1m @ 91.7g/t Au
from 123m in 21SSRC0017
• 46m @ 1.2 g/t Au incl. 11m @ 3.4 g/t Au
from 40m in 21SSRC00011
3 All owned and operated by Regis Resources Limited,
refer Regis 2020 Annual Report).
4 Refer ASX Announcements 2/8/21, 23/8/21
3
Southern Star (continued)
• 36m @ 1.1g/t Au incl 4m @ 3.3 g/t Au from 4m in 21SSRC003
• 27m @ 1.5 g/t Au incl. 6m @ 5.0 g/t Au from 77m in 21SSRC0015
• 19m @ 1.8 g/t Au incl. 6m @ 3.9 g/t Au from 64m in 21SSRC0001
• 9m @ 3.3 g/t Au incl. 1m @ 24.9 g/t Au from 124m and 7m @ 5.3 g/t Au incl 3m @ 11.7 g/t Au from 162m in SSRC0014
Figure 2 - Long section of Southern Star with pierce points of downhole intersections displayed in gram metres, highlighting the high-grade intersections of previous and recent drill intersections with the recent
high-grade intersections at depth highlighted.
Mineralisation remains open to the north, south and down dip. The exceptional results led to the development of a wider drill program executed immediately
following the conclusion of the program at Southern Star and One Weight Wonder that will also test regional targets at Erlistoun Queen, Golden Boulder and
Ogilvie’s5.
5 Refer to further details in ASX announcement 2/8/21.
4
One Weight Wonder
The One Weight Wonder target also sits within the
Duketon Greenstone Belt Project and was identified
by a regional 340-hole Rotary Air Blast (RAB)
program undertaken by Johnson’s Well Mining NL
in 1995 which defined a coherent area of
anomalism with a strike length of 1 km (Figure 3).
High grade intersections include:
• 4m @ 2.7 g/t Au (MVDB227 – 28-32m)
• 4m @ 1.7 g/t Au (MVDB447 – 28-32m)
• 4m @ 1.5 g/t Au (MVDB232 – 12-16m).
These significant intersections corelate to the
orientation of the regional mineralised structures
(310°) that hosts all major deposits in the Duketon
Belt, such as Garden Well and Rosemont.
Amazingly, these significant intersections have not
been followed up until now, and the target remains
open.
One Weight
Wonder
Southern
Star
• Ogilvie's - 4m @ 5.0 g/t Au and 2m @ 4.9
g/t Au
• Golden Boulder - 17m @ 4.3 g/t Au incl 6m
@ 11.1 g/t Au
• Erlistoun Main Line - 6m @ 1.3 g/t Au
Including 3m @ 2.1 g/t Au
• Erlistoun East Line - 6m @ 2.5 g/t Au and
3m @ 1.8 g/t Au.
The prospects are all
tenement
E38/3518 which has been subject to minimal
exploration activity over the last decade thus
providing considerable exploration upside potential.
located on
The major regional scale structures are a key
element for large scale gold deposition with three of
these mineralised structures striking through the
one tenement. These targets are therefore highly
prospective areas for gold accumulation with RC
drilling underway at Ogilvie’s, Golden Boulder and
Erlistoun following completion of the drilling at
Southern Star and One Weight Wonder.
Figure 3 - Plan view of One Weight Wonder highlighting anomalous
RAB hole high grade gold intersection.
Additional Duketon Belt Targets
During Q4 FY2021, the Company completed soil
geochemical programs over a number of targets
identified from the review of the historic data.
Additionally, an analysis of shallow drilling identified
the following targets:
Figure 4 - Plan view of the four new drill-ready gold prospects in
GSN’s Duketon Project over magnetic imagery and maximum
downhole gold intercepts.
5
Cox’s Find
The Company started the year with drill programs
at Cox’s Find and Mon Ami. The June/July 2020
drill results at Cox’s Find not only included several
spectacular high-grade intersections of up to 5m
@ 80.0 g/t Au from 160m including 1m @ 404
g/t Au, but also a highly significant 15m @ 1.01
in hole
g/t Au
20CFRC0346.
from 167m
intercept
In December 2020 and January 2021, the
Company completed a 3,375m drill program at
the Cox’s Find Gold Project with the objective of
testing the Model Earth structural model to
investigate ‘look alike’ structural environments
along strike of Cox’s Find.
It was also directed at investigating the south-
eastern extremities at depth of the old workings.
intersected
the drilling
Whilst
targeted
lithology only wide, low-grade mineralisation was
noted including 8m @ 1.1 g/t Au from 160m
(Figure 5).
the
In August 2021 the Company made the decision
to return the project to the Vendor and pay a
$100,000 cancelation fee in satisfaction of the
$800,000 deferred payment. The GSN Board
considers this to be a disciplined allocation of
exploration capital and appropriate management
of the Company’s exploration project pipeline.
The Project no
further
exploration with the funds saved to be redirected
to higher priority targets across the broader
Duketon Gold Project.
longer warranted
Figure 5 - Plan view of the four new drill-ready gold prospects in GSN’s Duketon Project over magnetic imagery and maximum downhole gold
intercepts.
6 Refer to ASX announcements 29/7/20 and 8/6/20.
6
Mon Ami Gold Project
In August 2020 the company announced several
near surface high-grade hits including 11m @ 7.9
g/t gold from 26m including 4m @ 15.9g/t gold
in 20MARC011 and 4m @ 12.4 g/t gold from 80m
in 20MARC003 (4m composite sample).7 These
high-grade results are interpreted to be localised
at the intersection of cross-cutting splays along the
regional shear with drilling. Interpretation of the
results has identified opportunities to extend these
high-grade zones with shallow RC drilling which is
expected to further improve the economics of a
potential open pit development.
In March 2021, the Company announced the
results of fourteen RC holes drilled at Mon Ami for
a total of 1,601m during January 2021. The
objectives of the drilling program were two-fold:
• define and extend near-surface, high-
grade gold mineralisation to the south, for
incorporation into a targeted resource
classification upgrade; and
•
test
for possible depth extensions
analogous to the 176koz (at 22.8 g/t Au)
Ida H deposit located 8km north of Mon
Ami.
Both deep holes intersected gold mineralisation.
Gold is concentrated within quartz veining at the
lithological contact of a metasedimentary
sequence and a basalt unit within the regional
scale Barnicoat Shear Zone.
The long section of the Mon Ami deposit (Figure
6) highlights the dominant northerly plunge to the
high-grade mineralisation, which this drilling aimed
to extend. A 30m extension of hole 21MARC010
resulted in a standout wide zone of mineralisation
of 10m @ 2.7 g/t Au from 241m including 5m @
5.2 g/t Au and 21m @ 1.0 g/t Au from 255m.
21MARC010 was a significant 100m step out,
down plunge from previously identified high-grade
mineralisation in MLRC036 (2m @ 27.5 g/t Au).
The high-grade gold mineralisation at Mon Ami is
now known to extend for at least 500m and is open
along strike and at depth. This hole is regarded as
highly significant as it is the deepest hole drilled to
date at Mon Ami, with alteration and mineralisation
widening at this location. The high-grade gold
mineralisation intersected in hole 21MARC010 is
at 210m below the surface, 60m deeper than the
current Indicated Mineral Resource limited to
150m below surface.
Figure 6: Long Section highlighting the 2 target areas presently being drilled at Mon Ami
7 Refer to further details in the ASX announcement of 21/7/21.
7
In July 2021 the Company released the updated mineral resource at Mon Ami (Table 1). Importantly 95%
of the mineralisation is now in the Indicated category.8
Classification
Indicated
Inferred
Total
COG
g/t Au
0.5
0.5
0.5
Tonnage
Mt
1.41
0.15
1.56
Grade
g/t Au
1.16
0.61
1.11
Metal
Oz Au
52,500
3,000
55,500
Table 1 – Mon Ami 2021 Mineral Resource Statement.
Mineralisation is currently constrained only by drilling.
Development studies also progressed throughout the year including environmental, flora and fauna, soil
and waste characterisation and land access studies. All studies supported future mining approvals with
Mon Ami now considered to be “shovel ready” with discussions commencing with nearby mill operators.
Figure 7: Mon Ami Tenement Location Map.
8 Refer to further details in the ASX announcement of 21/7/21.
8
Queensland
Leichhardt Creek
the
The Company
extensive
continued
geochemical and mapping program at the large-
in northern
scale Edinburgh Park Project
Queensland (Figure 8). Mr Octavio Garcia was
appointed Head of Exploration – Queensland in
August 2020 with a base of operations established
during the year to fast track exploration activities
in the region.
The geochemical mapping program is the first
systematic gold focused exploration program
undertaken over the highly prospective targets,
which were identified from interpretation of the
hyperspectral data (co-funded with Evolution
Mining Limited in 2019 refer ASX release 15/4/20).
The Leichhardt Creek survey was coincident with
one of nineteen anomalies identified from the
hyperspectral survey.
The geochemical mapping program extended and
refined the earlier 2020 survey9 which had not
closed off gold anomalism. The survey area was
extended to the south and west on a wide spaced
(100m x 100m) grid. The survey area was also
infilled to a closer spacing (50m x 50m) in the
Leichhardt West - Green Ant location where
the
observations
geological
prospectivity, refer Figure 9.
heightened
These three soil surveys were designed to test the
gold-copper-molybdenum metal associations and
identify metal zonation patterns
aimed
consistent with large IRGS.
to
Figure 8: Location and geology of GSN’s Edinburgh Park Project relative to the Mt Carlton Mine.
9 Refer to ASX announcement 20/7/20.
9
Figure 9 - Extended soil survey at the Leichardt Creek Prospect showing simplified geology, metal ratio anomalies, rock chip assays and
location names referred to in the text.
The geochemical anomalies are coincident with
independent geological evidence consistent with
IRGS
in some areas and epithermal high
sulphidation deposit styles in other areas. This
evidence includes high-grade copper, gold and
silver rock chips. Interestingly, the high-grade rock
chips are
the
geochemical anomalies rather than at the newly
identified core (Figure 9). This highlights the
importance of methodically considering the overall
geological and geochemical system, rather than
individual mineralised outcrops.
the margins of
located at
Fish Creek
In addition to the Leichardt Creek Prospect a
program undertaken on a 100m x 100m grid was
completed at Fish Creek. The Fish Creek survey,
again, one of the nineteen anomalies identified
from the hyperspectral survey, was designed to
test
associations.
the
gold-silver-base-metals
metal
Fish Creek returned a very positive geochemical
signature consistent with a high-sulphidation
system like the nearby Mt Carlton Mine, owned
and operated by Evolution Mining Limited (refer
Figure 8). This result is consistent with geological
evidence that is continuing to be collected from the
field.
Figure 10 compares the metal zonation at Mt
Carlton and Fish Creek data by normalising the
data to the average metal abundance at Fish
Creek.10
The arrows track the zonation from distal to
proximal to the core. This is considered a
reasonable guide to compare the style of both
systems and shows a strong correlation between
both mineralised systems.
10 Refer to ASX announcement 14/4/21.
10
When these results are plotted spatially and importance is placed on the gold grades, there appears to
be a zonation from blue distal results to two red areas showing characteristics of core ones similar to A39
and V2 at Mt Carlton.
Figure 10 - Simplified metal anomalies at Fish Creek.
Field operations have now resumed with further
field validation and mapping, including detailed
traverses across the newly identified anomalies,
with a focus on mapping the alteration halos
associated with an IRGS that the circular metal
zonation and geological observations suggest.
This work is being conducted with the objective of
advancing several targets to the drill testing stage
later in 2021. Soil surveys have also been
conducted at Leichhardt Creek
(refer ASX
announcement 18/3/21), Spring Creek and
Edinburgh Castle.
These surveys are presently being processed.
Field operations are continuing with two separate
geological crews in the field at the Molongle and
Mt Dillon prospects with the objective of advancing
several targets to the drill testing stage later in
2021. These surveys are presently being
processed. Surveys are also being undertaken at
the Molongle and Mt Dillon prospects with the
objective of advancing several targets to the drill
testing stage later in 2021.
East Laverton Nickel Project
In April 2021 the Company released the results of
its desktop studies on the 100% owned East
Laverton Nickel Project. The Project is located
15km east from the town of Laverton in Western
Australia (Figure 7).11
The East Laverton project comprises three large
exploration licenses totalling 400km2 which were
applied for in 2018.
The East Laverton Project is dominated by the
Diorite Hill Layered Ultramafic Magmatic Intrusion
(Diorite Hill; Figure 11). Diorite Hill covers an area
of approximately 110km2 and consists of a thick
(7,000m) cumulate rock sequence of interlayered
peridotites,
and
anorthosites. The southern and eastern part of the
complex is contained within the project area.
pyroxenites,
gabbros
Diorite Hill intruded a greenstone volcanic rock
sequence indicated by the presence of non-
cumulate mafic/ultramafic hornfels xenoliths within
the complex. Diorite Hill is commonly covered by
shallow modern aeolian sands
that have
hampered previous exploration.
The East Laverton Project has not been subject to
significant amounts of exploration with the last
drilling noted in 2001. The Company believes most
historical programs were ineffective due to the
sand cover and anomalous
results where
basement rocks had outcropped.
The Company engaged numerous consultants
identify
in Nickel deposits
and experts
to
exploration opportunities. The
recommend
strategy was to explore the project for massive
nickel-sulphide accumulations using a Moving
Loop Electro-Magnetic (MLEM) survey.
The current program will test the Diorite Hill
complex using 43, 400m loops at a broad 1,200m
x 1,200m spacing with 4 high sensitivity sounds
taken 400m from the loop centers. This is
designed to detect any conductive sources of a
Nova style and scale.
They survey is being planned to occur later in
2021.
Figure 11: East Laverton Tenements with Magnetics and Maximum downhole Nickel Values.
11 Refer ASX announcement 7/4/21.
12
Corporate
The following significant corporate matters have
occurred during the period:
Placements and Fundraising
In November 2020, the Company raised $3.12
million (before costs) through a placement of 39
million ordinary Shares at $0.08 per Share with a 1
for 4 free attaching Listed Option (9.75 million
Listed Options issued). The funds were used to
accelerate exploration initiatives at the Cox’s Find
and Mon Ami gold projects in Western Australia
and continue geochemical programs across the
highly prospective Edinburgh Park project in North
Queensland. The Company also issued 2 million
Listed Options to the Lead Manager of the
placement.
The Company repaid the $500,000 loan provided
by a Director related entity.
In August 2021 the Company completed a
placement of 50 million ordinary Shares at $0.05
per Share to raise $2.5 million before costs. The
placement also attracted a 1 for 4 free attaching
Listed Option (12.5 million Listed Options) to be
issued to placement participants with 2.5 million
Listed Options to be issued to the Lead Manager
of the placement. The placement of Listed Options
is subject to Shareholder approval.
Key Personnel Appointments
On 2 September 2020, the Company announced
the appointment of Mr Sean Gregory as Chief
Executive Officer and Mr Octavio Garcia as the
Head of Exploration – Queensland. Mr Mark Major
resigned as Chief Operating Officer.
On 21 July 2021, the Company announced the
appointment of Mr Matthew Blake as Non-
Executive Director.
Ground Position Expanded
In July 2020, the Company lodged applications
over 4 highly strategic and prospective tenements
totalling 47km2 immediately adjacent to the Cox’s
Find Gold Project in Laverton.
The land tenure in the Duketon Greenstone Belt
(DGB) was further increased in February 2021
when the Company executed a irrevocable option
over three large exploration license applications.
Upon exercise of the option, GSN expects to
substantially expand its land position in the
Duketon Greenstone Belt from 47km2 to 459km2
largest
making
landholder in the DGB behind Regis Resources
Limited (ASX: RRL).
the Company
the second
the
tenements provide highly
Importantly,
prospective exploration tenure with the most
significant identifiable mineralised trends in the
DGB hosting both the Garden Well and Rosemont
gold deposits.
Safety and Sustainability
The Board of Directors of Great Southern Mining
the
Limited are committed
Company’s strategy and operations in a safe and
responsible manner. Pleasingly, drilling activities
were productive and safe with nil reportable
incidents during the year.
to executing
Financial Position and Performance
The Company’s net assets decreased 10.80%
from the year ended 30 June 2020, predominately
due to the impairment charge recognised on the
Cox’s Find Gold Project as a result of the return of
the tenements in August 202112. The Company
held $1.38 million in cash and cash equivalents at
30 June 2021.
Operating cash outflows for the period totalled
$1.29 million with cash outflows from investing
activities totaling $3.18 million reflecting the
significant exploration activities undertaken in
Western Australia and Queensland during the
period.
We note the emphasis of matter paragraph
regarding the going concern assumption included
in the auditor’s report, refer to Note 1(u) for further
disclosure. The Auditors Report on the Financial
Statements
this Annual Report
in
includes an emphasis of matter related to going
concern. The audit opinion is not modified in
relation to this matter.
included
12 Refer to ASX announcement 23/8/21.
13
Financial Position and Performance
(continued)
that of a
in a manner
The Company has performed
consistent with
junior exploration
company. The net loss for the period of $4.56
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
charges such as the $2.46 million impairment
charge on the Cox’s Find Gold Project and $0.32
million share based payment expense on the issue
of securities under the Company’s long-term
incentive plan.
Future Prospects
As discussed elsewhere
the Review of
Operations Report, the Company will be looking to
undertake additional exploration programs on its
Western Australian and Queensland projects.
in
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
this
prejudice
information has not been presented in this report.
the Company. Therefore,
to
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.
The Company, as an exploration company, faces
inherent risks in its activities including tenement
and title, exploration funding, project exploration
risk, environmental and social sustainability risks,
which may materially impact the Company’s
operations. The Company has in place procedures
for reporting and monitoring of such risks which
are continually being reviewed and updated to
help manage these risks.
the
The Board also believes
management
thorough
understanding of the Company’s key risks in these
areas and are managing them appropriately.
it and
team
have
that
a
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 undertake further
drilling programs. Further disclosure of these
financial risks can be found in Note 24 to the
Financial Statements.
The impact of the COVID-19 pandemic continues
to pose a number of global socio-political,
economic and health risks that may cause an
impact on
the Company’s operations. The
potential for the pandemic to be ongoing with
unforeseen impacts is high. The Company has
implemented procedures to protect the wellbeing
of staff and contractors and ensure business
continuity. The Company continues to monitor and
respond to the risk of the pandemic commensurate
with the risks in accordance with the Government
recommendations and health advice.
14
Competent Person and Forward-Looking Statements
Deposit
Competent
Person
Employer
Professional
Institute
Edinburgh Park Exploration Results
(2021)
Octavio
Garcia
Great Southern Mining
Ltd
MAIG
Southern Star, Duketon Targets, Mon
Ami 2020-2021 Exploration Results
and Geological Interpretation
Simon
Buswell-Smith
Great Southern Mining
Ltd
MAIG
Mon Ami 2019 Exploration Results
incl. metallurgy
Dr Bryce
Healy
Noventum Group Pty Ltd MAIG
Mon Ami Mineral Resource
Dr Michael
Cunningham
SRK Consulting
(Australasia) Pty Ltd
MAusIMM,
MAIG
Competent Person’s Statement
Forward Looking Statements
in
information
this report
the JORC Code (2012).
The
that relates
Exploration Results and Mineral Resources is
based on the information of the Competent
Persons listed in the table above. Each of the
Competent Persons have sufficient experience
relevant to the style of mineralisation and type of
deposit under consideration and to the activity they
are undertaking to qualify as Competent Persons
under
For new
information each consent to the inclusion in the
report of the matters based on his information in
the form and context in which they occur.
Previously announced
is cross
referenced to the original announcements. In
these cases, the Company is not aware of any new
information or data that materially affects the
information presented and that the technical
parameters underpinning the estimates continue
to apply and have not materially changed. The
Company confirms that the form and context in
which
findings are
presented have not been materially modified from
the original market announcements.
the Competent Persons
information
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 contemplated.
15
DIRECTORS’ REPORT
Your directors submit the annual financial report of
Great Southern Mining Limited, (the Company), for the
year ended 30 June 2021.
Mr Andrew Caruso B.Eng (Mining)(Hons), Grad Dip.
Applied Finance & Investment – Non-executive
Director
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 of a number of strategic
exploration and mining projects. Mr Terpu has a wide
range of contacts in the exploration and mining
investment community. No other public company
directorships were held in the previous three years.
Kathleen Bozanic B.Com, CA ANZ, 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 was appointed to the
board of IGO Limited as a non-executive director on 3
October 2019. Ms Bozanic was also appointed to the
Board of DRA Global Limited in January 2020 which
listed on the ASX on 7 July 2021. No other public
company directorships were held in the previous three
years.
(Appointed 26 April 2018)
Mr Caruso is a mining engineer with over twenty-six
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 appointed to
the board of Atrum Coal Limited as Managing Director
on 12 August 2020. No other public company
directorships were held in the previous three years.
Mr Matthew Blake B.Com, Grad Dip. Applied Finance
& Investment – Non-executive Director
(Appointed 21 July 2021)
Mr Blake has twenty-five years’ experience in the
financial services industry and with ASX companies. He
joined DJ Carmichael Pty Limited in 1999 as an
Investment Adviser,
later becoming an Executive
Director of the company until the sale of the business to
Shaw and Partners Limited in 2019. Mr Blake has a
Bachelor of Commerce degree from the University of
Western Australia and a Graduate Diploma in Applied
Finance and Investment with the Financial Services
Institute of Australasia.
Mr Blake also serves as Executive Director of Victory
Mines Limited and non-executive director of Crowd
Media Limited. Both companies are listed on the ASX.
No other public company directorships were held in the
previous three years.
16
Mark Petricevic B.Com, CA ANZ, AGIA, GAICD - Company Secretary
(Appointed 30 April 2018)
Mark is a Chartered Accountant with over eighteen years’ extensive experience in accounting, financial reporting,
governance, risk management and audit and corporate advisory services 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 2021 was as follows:
Number of
Board Meetings
Held Whilst in
Office
11
11
11
Number of
Board Meetings
Attended
11
11
11
J. Terpu
K. Bozanic
A. Caruso
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.
Fully Paid Ordinary Shares (Ordinary Shares)
Balance at the
start of the year
Bought
Sold/transferred/
exercised
Balance at the end
of the year
J. Terpu
K. Bozanic
A. Caruso
M. Blake*
125,309,351
1,200,000
1,200,000
15,000,000
6,440,245
-
-
-
-
-
-
-
131,749,596
1,200,000
1,200,000
15,000,000
* Mr Blake was appointed in July 2021 and is included in the table for completeness only.
No Ordinary Shares were granted during the period as compensation.
Listed Options
Bought
Balance at the
start of the year
39,103,118
400,000
400,000
3,750,000
The 6,000,000 Listed Options were exercised in November 2020.
J. Terpu
K. Bozanic
A. Caruso
M. Blake*
-
-
-
-
Sold/transferred/exercised
Balance at the
end of the year
33,103,118
400,000
400,000
3,750,000
(6,000,000)
-
-
-
* Mr Blake was appointed in July 2021 and is included in the table for completeness only.
No Listed Options were granted during the period as compensation.
17
Unlisted Options
No Unlisted Options were held or issued to the Directors during the current or prior period.
Details of Unlisted Options issued by the Company to Key Management Personnel and employees during or since
the end of the financial year are:
Opening Balance
Issued during the period (Table a)
Cancelled / Lapsed During the period
Exercised during the period
Closing Balance
30 June 2021
No.
8,000,000
5,900,000
(2,000,000)
(1,000,000)
10,900,000
30 June 2020
No.
12,100,000
13,000,000
(12,100,000)
(5,000,000)
8,000,000
In July 2020, 1,000,000 Ordinary Shares were issued on the exercise of Unlisted Options. No other Ordinary Shares
have been issued as a result of the exercise of Unlisted Options during the period.
Table (a)
Unlisted Options
Tranche No.
Exercise
Price
Vesting Condition
Expiry
Date
-
Head of Exploration
Western Australia (issued
10 July 2020)
Head of Exploration –
Queensland
(issued 2 September 2020)
Chief Executive Officer
(issued 2 September 2020)
Company
(issued
2020)
Secretary
11 September
Total
1
2
1
2
1
2
3
1
2
600,000
$0.05
600,000
$0.05
Employee remains with
Company as at 30 June 2021.* 30-Jun-22
Employee remains with
Company as at 30 June 2022.
30-Jun-23
1,000,000
$0.10
1,000,000
$0.20
500,000
$0.10
500,000
$0.15
500,000
$0.20
600,000
$0.05
600,000
5,900,000
$0.10
Employee remains with
Company as at 30 June 2022.
Vest on discovery and
resource development of a
500,000-ounce gold equivalent
prospect withing the
Queensland project portfolio.
Vest after 12 months of
service.*
Vest after 24 months of
service.
Vest after 36 months of
service.
Employee remains with
Company as at 31 December
2020.*
Employee remains with
Company as at 31 December
2021.
30-Jun-23
30-Jun-25
30-Jun-23
30-Jun-24
30-Jun-25
31-Dec-22
31-Dec-23
* Unlisted Options have vested during or since the end of the financial year. During the year to 30 June 2020,
13,000,000 Unlisted Options were issued.
The Unlisted Options do not entitle the holder to participate in any share issue of the Company.
18
Performance Rights
Details of Performance Rights issued by the Company during or since the end of the financial year, and Ordinary
Shares issued as a result of the exercise are:
Performance Rights
Tranche No.
Exercise
Price
Chief Executive Officer
(issued 2 September 2020)
1
2
3
2,000,000
2,000,000
2,000,000
nil
nil
nil
Vesting Condition
Expiry Date
Share price of $0.25 based on
20-trading day VWAP.
Share price of $0.35 based on
20-trading day VWAP.
Share price of $0.45 based on
20-trading day VWAP.
Note 1
Note 1
Note 1
Note 1:
Performance Rights are convertible into shares on a one for one basis for no consideration upon exercise by the
holder on or before the date which is 2 years after issue being 2 September 2022.
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.
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. There were no significant changes in
these activities during the financial period.
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,
this Annual Report,
included within
immediately precedes this Directors’ Report.
Operating results for the year
The net result of operations for the year was a loss after
income tax of $4,565,273 (2020: $1,878,292).
The Operating and Financial Review, included in the full
review of operations, can be
immediately
preceding this Directors’ Report.
found
Significant changes in the state of affairs
tenement
The Company acquired a number of
packages during the period with tenements granted and
pending grant increasing it’s the prospective landholding
in the Duketon Greenstone Belt from 2km2 to over
450km2.
Share capital increased by $3.12 million (before issue
costs) as a result of the placement of 39 million Ordinary
in November 2020. The placement also
Shares
attracted a 1 for 4 free attaching Listed Option (9.75
million Listed Options issued). The Company also
issued 2 million Listed Options to the Lead Manager of
the placement. A reconciliation of movements in
Ordinary Shares and Listed Options can be found in the
following tables.
In August 2021 the Company negotiated the return of
the Cox’s Find Gold Project to the original Vendor in
satisfaction of the $0.8 million deferred payment due in
August 2021. This resulted in an impairment charge
being recognised of $2.46 million for the year ended 30
June 2021.
Apart from the above, there have been no significant
changes in the state of affairs of the Company and
Group during or since the end of the financial period
other than as stated in this report.
19
Issue of securities during the period:
Fully Paid Ordinary Shares issued during the period and up until the date of this report.
Issued capital comprises Fully Paid Ordinary Shares
Movement in issued Shares for the year
Balance at beginning of the year
Issued
Exercise of Unlisted Options
Issue of Shares to senior advisor
Placement
Securities issued under Long Term Incentive Plan
Cancellation of Shares issued to senior advisor
Issue of Shares to advisers
Shares issued under a cleansing prospectus
Placement of Shares
Exercise of Listed Options
Exercise of Unlisted Options
Exercise of Listed Options
Issue of Shares to advisers
Exercise of Listed Options
Exercise of Listed Options
Placement of Shares
Exercise of Listed Options
Share issue costs
Balance at the end of the year
Note
2021
2020
No.
455,020,420
$
31,291,441
No.
408,095,772
$
28,112,639
Date
20-Sep-19
16-Oct-19
25-Oct-19
05-Nov-19
27-Nov-19
10-Mar-20
01-Apr-20
08-May-20
05-Jun-20
11-Jun-20
20-Jul-20
02-Oct-20
28-Oct-20
09-Nov-20
27-Nov-20
21-Jan-21
(a)
(b)
408,095,772
28,112,639
303,412,338
23,611,759
-
-
-
-
-
-
-
-
-
-
1,000,000
124,648
750,000
6,000,000
39,000,000
50,000
-
455,020,420
-
-
-
-
-
-
-
-
-
-
50,000
15,000
37,500
300,000
3,120,000
2,500
(346,198)
31,291,441
300,000
1,000,000
27,000,000
1,450,000
(1,000,000)
800,000
100
70,000,000
133,334
5,000,000
-
-
-
-
-
-
-
408,095,772
6,000
60,000
1,215,000
80,910
(60,000)
20,400
3
3,150,000
6,667
300,000
-
-
-
-
-
-
(278,100)
28,112,639
a) Shares issued on the exercise of Listed Options by John Terpu, Executive Chairman.
b) On 20 November 2020, GSN announced it completed a successful placement raising of A$3.12 million before costs. The placement involved issuing
39,000,000 Fully Paid Ordinary Shares at A$0.08 each, plus 1 free attaching Listed Option (GSNOA) for every 4 placement shares.
20
Listed Options issued during the period and up until the date of this report.
Listed Options on issue
157,484,222
1,521,915
132,004,212
1,357,375
Note
2021
2020
No.
$
No.
$
Movement in Listed Options for the year
Balance at beginning of the year
Balance at beginning of the period
Issued under rights issue
Placement of shortfall
Placement
Securities issued Under Long Term Incentive
Plan
Issue of Listed Options to advisers
Cleansing prospectus
Exercise of Listed Options
Issue of Listed Options following placement
Lead manager Listed Options on placement
Exercise of Listed Options
Exercise of Listed Options
Issue of Listing Options following placement
Lead manager Listed Options on placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options to advisers
132,004,212
1,357,375
-
Date
05-Sep-19
25-Oct-19
25-Oct-19
05-Nov-19
10-Mar-20
31-Mar-20
05-Jun-20
06-Jul-20
06-Jul-20
23-Sep-20
09-Nov-20
20-Nov-20
20-Nov-20
21-Jan-21
19-Mar-21
09-Apr-21
(a)
(a)
(b)
(c)
(c)
(d)
(d)
-
-
-
-
-
-
-
17,500,000
2,500,000
(750,000)
(6,000,000)
9,750,010
2,000,000
(50,000)
500,000
30,000
-
-
-
-
-
-
-
-
50,000
-
-
-
100,000
-
14,000
540
-
83,588,449
17,548,997
27,000,000
2,000,000
2,000,000
100
(133,334)
-
-
-
-
-
-
-
-
-
-
-
835,884
175,490
270,000
60,000
22,667
1
(6,667)
-
-
-
-
-
-
-
-
-
Balance at the end of the year
157,484,222
1,521,915
132,004,212
1,357,375
All Listed Options on issue have an exercise price of $0.05 on or before 4 September 2022.
a)
In May 2020 the Company placed 70 million Fully Paid Ordinary at $0.045 each with 1 free attaching Listed Option (GSNOA) for every 4 placement shares.
Following the General Meeting of Shareholders held on 3 July 2020, 17,500,000 Listed Options (GSNOA) were issued participants in the placement with
2,500,000 Listed Options issued to the Lead Manager.
b) Listed Options exercised by John Terpu, Executive Chairman in November 2020.
c) On 20 November 2020, GSN announced it completed a successful placement raising A$3.12 million before costs. The placement involved issuing 39,000,000
Fully Paid Ordinary Shares at A$0.08 each, plus 1 free attaching Listed Option (GSNOA) for every 4 placement shares. The Lead Manager was paid a fee
of 6% of the gross proceeds and issued 2,000,000 Listed Options on the same terms as those above.
d) The Listed Options issued to advisers were issued on the same terms as those already on issue.
21
Significant events after the reporting date
Likely developments and expected results
Capital Raising
In August 2021 the Company completed a placement
of 50 million ordinary Shares at $0.05 per Share to
raise $2.5 million before costs. The placement also
attracted a 1 for 4 free attaching Listed Option (12.5
million Listed Options) to be issued to placement
participants with 2.5 million Listed Options to be issued
to the Lead Manager of the placement. The placement
of Listed Options is subject to Shareholder approval at
a meeting of shareholders to be held on 29 September
2021.
Appointment of Non-executive Director
On 21 July 2021 the Company appointed Mr Matthew
Blake as a Non-executive Director of the Company.
Return of assets
In August 2021 the Company successfully negotiated
with the Vendor to return the Cox’s Find Gold Project
through the payment of a $0.1 million cancellation fee.
The effect of the transaction is to release the Company
of the obligation to pay Deferred Payment 1 being $0.8
million disclosed in Note 10 and Note 12.
Coronavirus impact
The impact of the Coronavirus (COVID-19) pandemic
is ongoing and whilst it has little financial impact on the
Company up to 30 June 2021, it is not practicable to
estimate the potential impact, positive or negative,
after the reporting date. The situation is rapidly
developing and is dependent on measures imposed by
the Australian Government and other countries, such
requirements,
as maintaining social distancing
quarantine, travel restrictions and any economic
stimulus that may be provided.
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.
The Company will continue to undertake drilling and
exploration activities on its Western Australian and
Queensland assets.
Environmental legislation
to minimising
is committed
impacts of
the
The Company
its exploration and
environmental
operations of each project with an appropriate focus
placed on compliance with environmental regulation.
No significant environmental breaches have occurred
or have been notified by any Government agencies
during the year ended 30 June 2021.
Indemnification and insurance of Directors and
Officers
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. No liability has
arisen under the indemnity as at the date of this report.
Voting and comments made at the Company’s
2020 Annual General Meeting
The Company received more than 97% of “yes” votes
from eligible shareholders on its remuneration report
for 2020. No specific feedback at the AGM or
throughout the year was received.
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.
22
Auditor Independence and Non-Audit Services
Company Secretary and Chief Financial Officer
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 29
and forms part of this directors’ report for the year
ended 30 June 2021.
Non-Audit Services
No amounts were paid or payable to the auditor for
non-audit services provided during the year.
Remuneration Report (audited)
This report outlines the remuneration arrangements in
place for the key management personnel (“KMP”) of
the Company for the financial year ended 30 June
2021. KMP’s being defined as those persons having
authority and responsibility for planning, directing and
controlling the major activities of the Company, directly
or indirectly, including any director (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.
Key Management Personnel
Directors
M. Petricevic (appointed 30 April 2018).
Remuneration philosophy
The performance of the Company depends upon the
quality of
The
in determining
philosophy of
remuneration levels is to:
the Directors and Executives.
the Company
-
-
-
set competitive remuneration packages to
attract and retain high calibre employees;
link executive rewards to shareholder value
creation; and
establish
demanding
performance hurdles for variable executive
remuneration in line with the Company’s
corporate strategy and operationally critical
matters.
appropriate,
Remuneration Committee
The Company has not established a Remuneration
Committee. The Board of Directors of the Company is
responsible
reviewing
determining
compensation arrangements for the Directors and the
Executive team.
and
for
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.
J. Terpu (Executive Chairman appointed 1 July 2013;
Non-executive Chairman appointed 12 January 2011).
Remuneration Structure
K. Bozanic (Non-executive Director appointed 26 April
2018).
corporate
In accordance with best practice
governance, the structure of non-executive director
and executive remuneration is separate and distinct.
A. Caruso (Non-executive Director appointed 26 April
2018).
Non-executive Director remuneration
M. Blake (Non-executive Director appointed 21 July
2021).
Chief Executive Officer
S. Gregory (appointed 2 September 2020).
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.
23
Remuneration report (continued)
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.
Each Non-executive Director receives a fee of $35,000
per annum exclusive of statutory superannuation for
being a Director of the Company.
Should the Company establish a Board committee, an
additional fee would be paid for each committee on
which a Non-executive Director sits. The payment of
additional fees for serving on a committee recognises
the additional time commitment required by Non-
executive Directors who serve on one or more sub
committees. During the financial year ended 30 June
2021, no such committees were in place.
Senior Manager and Executive Remuneration
Remuneration consists of fixed remuneration and
variable remuneration (comprising short-term and
long-term incentive schemes).
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.
Variable Remuneration
A long-term incentive (LTI) plan was adopted by
shareholders of the Company at the general meeting
of members held 29 June 2018 and updated 3 July
2020.
the performance
As an exploration company, the Board does not
consider the profit/(loss) attributable to shareholders
as one of
indicators when
implementing STI payments. In addition to technical
and economic exploration success (including the
publication of JORC compliant resources), the Board
considers
effective
management of safety, environmental and operational
matters and the acquisition and consolidation of high
quality landholdings, as more appropriate indicators of
management performance.
exploration
success,
the
No STI’s are payable to Executives where it is
considered that the actual performance has fallen
below the minimum requirement.
During the year to 30 June 2021, the Company entered
an agreement with the Chief Executive Officer and
Chief Financial Officer which contained the ability to
pay short-term incentives (STI) aligned to the success
of operationally critical matters. The STI was capped
at 40% and 20% of the base salary respectively. No
STI was paid to any KMP’s during or since the end of
period.
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
to
remuneration are set out below:
the agreements relating
Base salary
($) inclusive
of
superannuati
on
J. Terpu
219,000
M. Petricevic
180,000
S. Gregory
290,175
M. Major*
247,744
Term of
agreement
Notice
period
Until
termination
Until
termination
Until
termination
Until
termination
6 months
3 months
3 months
3 months
* Resigned in September 2020.
24
Fixed Remuneration
Employee
Remuneration report (continued)
The details of the remuneration of each member of Key Management Personnel is as follows:
Short-term employee benefits
Post-
employment
benefits
Other
long-term
benefits
Equity
Cash
Salary
& Fees Bonuses
$
$
Non-
Monetary
Benefits
$
Annual
Leave*
$
Superan-
nuation
$
Long-
service
Leave*
$
Share
Options
Total
$
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
200,000
200,000
35,000
37,400
35,000
43,400
270,000
280,800
219,135
-
164,996
164,996
61,998
112,372
716,129
558,168
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,649
7,531
-
-
-
-
4,649
7,531
-
-
-
-
-
-
4,649
7,531
17,778
6,739
-
-
-
-
17,778
6,739
13,874
-
4,528
9,381
-
-
36,181
16,120
19,000
19,000
3,325
3,325
3,325
3,325
25,650
25,650
20,818
-
15,675
15,675
8,067
-
70,209
41,325
1,533
1,093
-
-
-
-
1,533
1,093
371
-
2,202
432
-
-
4,106
1,526
-
-
-
-
-
-
-
-
114,075
-
76,673
-
-
8,518
242,960
234,364
38,325
40,725
38,325
46,725
319,610
321,814
368,273
-
264,074
190,484
70,065
120,890
167,553
8,518
1,022,022
633,187
Perfor
mance
Relate
d
%
-
-
-
-
-
-
-
31%
-
28%
-
-
7%
16%
1%
Directors
J Terpu
K. Bozanic (a)
A. Caruso (b)
Total
Executive
Chairman
Non-Executive
Director
Non-Executive
Director
S Gregory (d)
Other Key Management Personnel
Chief Executive
Officer
Company
Secretary/CFO
Chief Operating
Officer
M Petricevic
M Major (c)
Total to KMP
* The amounts disclosed in this column represent the movements in the associated provisions. They may be negative where a KMP has taken more
leave than accrued during the period.
a) During FY2020, an additional $2,400 was paid to K. Bozanic for consulting services. This amount has been included in the Cash Salary and
Fees column above.
b) During FY2020, an additional $8,400 was paid to A. Caruso for consulting services. This amount has been included in the Cash Salary and
Fees column above.
c) Represents fees paid to MMJB Family Trust, an entity associated with M Major. M Major resigned 2 September 2020.
d) Mr Gregory was appointed 2 September 2020 and was therefore not remunerated by the Company during the prior period.
25
Remuneration report (continued)
Unlisted Options
The following Unlisted Options were issued to Key Management Personnel during the period:
Unlisted Options
Tranche
No.
Exercise
Price
Vesting Condition
Expiry
Date
Chief Executive Officer
(issued 2 September 2020)
Company Secretary
(issued 11 September 2020)
1 (a)
2
3
1 (a)
500,000
500,000
500,000
600,000
$0.10 Vest after 12 months of service.
$0.15 Vest after 24 months of service.
$0.20 Vest after 36 months of service.
$0.05 Employee remains with Company as
30-Jun-23
30-Jun-24
30-Jun-25
31-Dec-22
2
600,000
$0.10 Employee remains with Company as
31-Dec-23
at 31 December 2020.
at 31 December 2021.
Total
2,700,000
(a) Options vested and became exercisable during or since the end of the period.
During the year to 30 June 2020 the Company issued 3,000,000 Unlisted Options to the previous Chief Operating Officer.
Of this balance, 1,000,000 Unlisted Options vested and were immediately exercised on 17 July 2020. The remaining
balance of 2,000,000 Unlisted Options lapsed on the individual’s termination of engagement with the Company in
September 2020. The Unlisted Options do not entitle the holder to participate in any share issue of the Company.
In addition to the above, the following options were granted to employees who are not considered to be Key Management
Personnel and hence not disclosed in the remuneration report:
Grant
Date
Expiry Date
Exercise
Price ($)
Balance
at start
of
reporting
period
10-07-20 30-06-22 (a) $ 0.05
$ 0.05
10-07-20 30-06-23
$ 0.10
04-09-20 30-06-23
04-09-20 30-06-25
$ 0.20
Total
-
-
-
-
Granted
during
the
period
600,000
600,000
1,000,000
1,000,000
3,200,000
Converted
during the
period
Cancelled
during
the
period
Balance at
period end
Vested at
period
end
-
-
-
-
-
-
-
-
-
-
600,000 -
600,000 -
1,000,000 -
1,000,000 -
3,200,000 -
(a) Options vested and became exercisable during the period.
26
Remuneration report (continued)
Performance Rights
Details of Performance Rights issued by the Company during or since the end of the financial year, and Ordinary
Shares issued as a result of the exercise are:
Performance Rights
Tranche No.
Chief Executive Officer
(issued 2 September 2020)
1
2
3
2,000,000
2,000,000
2,000,000
Exercise
Price
nil
nil
nil
Vesting Condition
Expiry Date
Share price of $0.25 based on 20-
trading day VWAP.
Share price of $0.35 based on 20-
trading day VWAP.
Share price of $0.45 based on 20-
trading day VWAP.
Note 1
Note 1
Note 1
Note 1:
Performance Rights are convertible into shares on a one for one basis for no consideration upon exercise by the holder
on or before the date which is 2 years after issue being 2 September 2022.
For both Unlisted Options and Performance Rights issued to Key Management Personnel, if the Executive
resigns or gives notice of resignation or the Company terminates the Executive’s employment for cause or gives
notice of termination for cause, any unvested Unlisted Options or Performance Rights will automatically lapse.
Fully paid Ordinary Shares – directly and indirectly held
The table below shows a reconciliation of fully paid Ordinary Shares held by Directors and Key Management
Personnel from the beginning to the end of the period.
J. Terpu
K. Bozanic
A. Caruso
M. Petricevic
Opening Balance
1 July 2020
125,309,351
1,200,000
1,200,000
1,500,000
Bought
6,440,245
-
-
-
Sold /transferred
-
-
-
-
Closing Balance
30 June 2021
131,749,596
1,200,000
1,200,000
1,500,000
Listed Options - directly and indirectly held
J. Terpu
K. Bozanic
A. Caruso
M. Petricevic
Opening Balance
1 July 2020
Bought
39,103,118
400,000
400,000
500,000
Sold /exercised
(6,000,000)
-
-
-
-
-
Closing Balance
30 June 2021
33,103,118
400,000
400,000
500,000
6,000,000 Listed Options were exercised by J. Terpu on 9 November 2020.
Note that no securities have been granted to or exercised by Directors during the year in relation to remuneration.
No Listed Options, Unlisted Options or Performance Rights were granted to the Directors, officers or KMP’s of the
Company since the end of the financial year.
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.
27
Remuneration report (continued)
Directors and related parties
Paid/payable to:
Rent and service charges paid to Ruby Lane Pty Ltd atf the Terpu Trust
Amount payable at balance date
Amounts owing to related parties at balance date:
Loan provided by Valleyrose Pty Ltd in July 2019
Loan repaid to Valleyrose Pty Ltd during the period
Interest charges on loan provided by Valleyrose Pty Ltd
Note
21
2021
$
2020
$
88,334
5,739
76,371
-
12
- 500,000
-
41,549
500,000
9,863
The loan provided by Valleyrose Pty Ltd in July 2019 attracted interest charged on commercial terms. The full
balance owing was repaid during the year.
Reliance on external remuneration consultants
In February 2021, the Directors engaged BDO Reward Pty Ltd (Consultant) to review its existing remuneration
policies and to provide recommendations on executive short-term and long-term incentive plan design. BDO was
paid $14,000 for these services.
The Company confirms the remuneration recommendations were made free from undue influence by members of
the group’s Key Management Personnel.
The following arrangements were made to ensure that the remuneration recommendations were free from undue
influence:
• The Consultant was engaged by, and reported directly to, the Chair of the Board.
• The report containing the remuneration recommendations was provided by the Consultant directly
to the chair; and
• The Consultant was permitted to speak to management throughout the engagement to understand
company processes, practices and other business issues and obtain management perspectives.
However, the Consultant was not permitted to provide any member of management with a copy
of their draft or final report that contained the remuneration recommendations.
As a consequence, the Board is satisfied that the recommendations were made free from undue influence from
any members of the key management personnel. At the date of this report, the Board is considering the
recommendations made by the Consultant in relation to the remuneration policies and practices of the Company.
No changes have been made to those policies and procedures included in the Remuneration Report. No other
services were provided by the Consultant to the Company during the period.
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
.......................................................................................
John Terpu
Executive Chairman
Perth WA
21 September 2021
28
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 2021, 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
21 September 2021
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 fourth
edition of the Corporate Governance Principles and Recommendations which was released by the
ASX Corporate Governance Council and became effective for the financial years beginning on or
after 1 January 2020.
The Company’s Corporate Governance Statement for the financial year ended 30 June 2021 was
approved by the Board on 21 September 2021.
The Corporate Governance Statement
www.gsml.com.au .
is available on
the Company’s website at
30
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
INTEREST AND OTHER INCOME
EXPENSES
Administration expenses
Consulting fees
Directors’ benefits
Employee benefits expense
Legal fees
Marketing fees
Finance costs
Depreciation expense
Exploration and evaluation expenditure not capitalised
Impairment of exploration expenditure
Share based payment expense
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
Income tax expense
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
Year ended
30 June
2021
$
Year ended
30 June
2020
$
Notes
2
2
2
2
2
10
16
4
84,553
1,341
(497,517)
(31,487)
(295,650)
(584,018)
(107,862)
(143,193)
(21,708)
(65,436)
(115,548)
(2,460,049)
(327,358)
(4,649,826)
(4,565,273)
-
(4,565,273)
(351,622)
(97,774)
(285,247)
(235,304)
(127,705)
(145,742)
(41,549)
(74,379)
(245,710)
-
(274,601)
(1,879,633)
(1,878,292)
-
(1,878,292)
-
(4,565,273)
-
(1,878,292)
BASIC AND DILUTED LOSS PER SHARE (CENTS PER SHARE)
5
(1.09)
(0.56)
The accompanying notes form part of these financial statements.
31
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Other assets
Total Current Assets
NON-CURRENT ASSETS
Other receivables
Plant and equipment
Right of use asset
Exploration and evaluation expenditure
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Deferred consideration
Borrowings
Lease liability
Employee benefits
Total Current Liabilities
NON-CURRENT LIABILITIES
Borrowings
Lease liability
Deferred consideration
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Notes
2021
$
2020
$
6
7
8
9
20
10
11
12
13
20
14
13
20
12
15
16
1,382,875
30,237
1,413,112
30,665
177,309
167,068
7,300,529
7,675,571
9,088,683
452,786
800,000
20,000
56,677
146,151
1,475,614
110,000
114,955
-
224,955
1,700,569
7,388,114
3,067,264
65,401
3,132,665
13,500
84,551
222,124
7,187,818
7,507,993
10,640,658
662,616
-
511,691
52,887
94,984
1,322,178
64,239
171,634
800,000
1,035,873
2,358,051
8,282,607
31,291,441
2,123,954
(26,027,281)
7,388,114
28,112,639
1,631,976
(21,462,008)
8,282,607
The accompanying notes form part of these financial statements.
32
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Interest on motor vehicle leases
Interest paid on related party loan
Net cash (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration and evaluation expenditure
Net cash (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and listed options (net of costs)
Payment of amount owing to Director related entity
Proceeds from Director Loan
Net cash provided by financing activities
Net increase in cash held
Cash at beginning of period
Cash at end of period
Year ended
30 June 2021
Year ended
30 June 2020
Note
$
$
(1,260,861)
186
(23,892)
(7,570)
(1,292,137)
(1,276,627)
1,341
-
(41,549)
(1,316,835)
(100,569)
(3,083,863)
(3,184,432)
(30,637)
(1,817,587)
(1,848,224)
3,292,180
(500,000)
-
2,792,180
(1,684,389)
3,067,264
1,382,875
5,674,279
(150,000)
500,000
6,024,279
2,859,220
208,044
3,067,264
25
6
The accompanying notes form part of these financial statements.
33
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued
Capital
$
Accumulated
Losses
$
Notes
Unlisted
Option
Reserve
$
Performance
Rights
Reserve
$
Listed Option
Reserve
$
Total
$
Company
Balance at 1 July 2019
Loss for the year
Total Comprehensive Loss
Transaction recorded directly in equity
Unlisted Options Issued During the Period
Listed Options Issued During the Period
Issue of Share Capital
Capital Raising costs
18
15
15
23,611,759
-
-
-
-
-
4,778,980
(278,100)
(19,664,472)
(1,878,292)
(1,878,292)
80,756
-
-
-
-
80,756
-
-
(80,756)
274,601
-
-
-
4,500,880
80,756
193,845
Balance at 30 June 2020
28,112,639
(21,462,008)
274,601
Balance at 1 July 2020
Loss for the year
Total Comprehensive Loss
Transaction recorded directly in equity
Issue of Share Capital
Unlisted Options Issued During the Period
Performance Rights Issued during the
period
Listed Options Issued During the Period
Capital Raising costs
15
18
19
17
15
28,112,639
-
-
-
3,525,000
-
-
-
(346,198)
3,178,802
(21,462,008)
(4,565,273)
(4,565,273)
-
-
-
-
-
-
-
274,601
-
-
-
-
263,542
-
-
-
263,542
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63,896
-
-
63,896
-
-
-
1,357,375
-
-
4,028,043
(1,878,292)
(1,878,292)
-
274,601
1,357,375
4,778,980
(278,100)
1,357,375
6,132,857
1,357,375
8,282,607
1,357,375
-
-
-
-
-
-
164,541
-
8,282,607
(4,565,273)
(4,565,273)
-
3,525,000
263,542
63,896
164,541
(346,198)
164,541
3,670,780
Balance at 30 June 2021
31,291,441
(26,027,281)
538,143
63,896
1,521,916
7,388,114
The accompanying notes form part of these financial statements.
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES
(a)
Reporting entity
Your Directors’ present their report on the Company
for the financial year ended 30 June 2021. The
Company is a listed public company registered 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.
(b)
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 Accounting Standards and other
authoritative pronouncements of the Australian
Accounting Standards Board (AASB). Compliance
with Australian Accounting Standards results in full
compliance with
International Financial
Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
Great Southern Mining Limited is a for-profit entity
for
financial
statements.
the purpose of preparing
the
the
The accounting policies detailed below have been
consistently applied to all of the years presented
unless otherwise stated.
financial statements are presented
The
Australian dollars.
in
The financial statements for the year ended 30
June 2021 were approved and authorised for issue
by the Board of Directors on 21 September 2021.
(c)
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 (g),
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, no
amounts were written off. Refer to Note 10 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 to Note 4.
issued
instruments
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
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 or
Monte-Carlo 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.
During the period a number of equity instruments were
issued to key management personnel and advisers of
the Company. The valuation of these instruments
involved a number of estimates and assumptions.
35
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES
Inputs to pricing models may require an estimation of
reasonable expectations about achievement of future
vesting conditions. Vesting conditions must be satisfied
for the counterparty to become entitled to receive cash,
other assets or equity instruments of the entity, under a
share-based payment arrangement.
Vesting conditions include service conditions, which
require the other party to complete a specified period of
service, and performance conditions, which require
specified performance targets to be met (such as a
specified increase in the entity's profit over a specified
period of time) or completion of performance hurdles.
The Company recognises an amount for the goods or
services received during the vesting period based on
the best available estimate of the number of equity
instruments expected to vest and shall revise that
information
estimate,
Indicates
instruments
expected to vest differs from previous estimates. On
vesting date, the entity shall revise the estimate to equal
the number of equity instruments that ultimately vested
The achievement of
is
reassessed each reporting period.
if subsequent
the number of equity
if necessary,
that
future vesting conditions
(d) Segment reporting
reported
Operating segments are
in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief operating
decision maker, who is responsible for allocating
resources and assessing performance of the operating
segments, has been identified as the Board of Great
Southern Mining Limited. The Company’s activities
included the exploration and evaluation of projects in
North Queensland and Western Australia.
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.
(e) Revenue recognition
Revenue is measured at fair value of the consideration
received or 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.
(f) 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 differences 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.
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
taxable
temporary difference
is
the
associated with
in subsidiaries,
investments
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
the
foreseeable future.
in
• 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
36
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
differences and the carry-forward of unused tax
credits and unused tax losses can be utilised,
except:
• when the deferred income tax asset relating to the
deductible temporary 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 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.
tax
laws)
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
that have been enacted or
substantively enacted at the reporting date. Income taxes
relating
in equity are
recognised in equity and not in profit or loss. Deferred tax
assets and deferred tax liabilities are offset only if a 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.
items recognised directly
to
•
receivables and payables, which are stated with
the amount of GST included.
The net amount of GST recoverable from, or payable
to, the taxation authority is included as part of
receivables or payables in the statement of financial
position.
Cash flows are included in the statement of cash flows
on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority
are classified as operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
(g) 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
reflects current market
assessments of the time value of money and the risks
specific to the asset.
rate
that
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
Impairment losses relating to continuing operations are
recognised in those expense categories consistent with
the function of the impaired asset unless the asset is
carried at a 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.
37
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
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
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.
increase. After such a
reversal
(h) Cash and cash equivalents
Cash comprises cash at bank and in 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.
(i) Trade and other receivables
Trade receivables are measured on 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
financial
difficulties of the debtor, review of financial information
and significant delinquency
in making contractual
payments to the Company.
include known significant
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 amount of the impairment loss is recognised in the
statement of comprehensive
income within 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 allowance account. Subsequent recoveries
of amounts previously written off are credited against
other expenses in the statement of comprehensive
income.
(j) Financial Instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the 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:
through other comprehensive
•
fair value
income (FVOCI).
• amortised cost fair value through profit or loss
(FVTPL).
The classification is determined by both:
•
the entity’s business model for managing the
financial asset; and
the contractual cash flow characteristics of the
financial asset.
•
Subsequent measurement of financial assets
Financial assets at
comprehensive income (FVOCI).
value
fair
through other
The Company 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
38
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
•
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
(i) Impairment
The carrying values of plant and equipment are
reviewed for 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 Company’s financial liabilities include borrowings,
trade and other payables. The Company does not have
any derivative
in any period
presented.
instruments
financial
Financial liabilities are initially measured at fair value,
and, where applicable, adjusted for transaction costs
unless the Company designated a financial liability at fair
value through profit or loss.
financial
Subsequently,
liabilities are measured at
amortised cost using the effective interest method except
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.
(k) 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.
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
reflects current market
assessments of the time value of money and the risks
specific to the asset.
rate
that
that does not generate
For an asset
largely
independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the
asset belongs, unless the asset's value in use can be
estimated to approximate fair value.
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 item of plant and equipment is 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 carrying amount of the asset) is
included in profit or loss in the year the asset is
derecognised.
Depreciation is calculated on a straight-line basis over
the estimated useful life of the assets as follows:
(l) Trade and other payables
- Plant and equipment – over 3 to 5 years
- Motor Vehicles – over 3 years
residual values, useful
The assets’
lives and
amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
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.
39
NOTE
ACCOUNTING POLICIES (CONTINUED)
STATEMENT OF
1:
SIGNIFICANT
(m) Employee leave benefits
(o) Earnings per share
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 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 obligations
as current liabilities in the statement of financial
position
the 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.
if
(n)
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
the proceeds.
tax,
deduction, net of
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.
from
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 (other than dividends)
and preference share dividends;
the after-tax effect of dividends and interest
associated with dilutive potential Ordinary
Shares that have been recognised as expenses;
and
•
• other non-discretionary changes in revenues or
expenses during the period that would result
from the dilution of potential Ordinary Shares;
divided by the weighted average number of
Ordinary Shares and dilutive potential Ordinary
Shares, adjusted for any bonus element.
(p) 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)
the rights to tenure of the area of interest are
current; and
(ii) at least one of the following conditions is also
met:
(a) the exploration and evaluation expenditures
are expected to be recouped through
successful 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
recoverable
reserves, and active and significant
operations in, or in relation to, the area of
interest are continuing.
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 of assets used in exploration and
evaluation activities.
40
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
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 asset may exceed its recoverable amount.
Refer to Note 10 for more details relating to the current
year’s impairment charge.
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.
(q) 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.
The Company measures the cost of equity-settled
transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The
fair value is determined using a Black and Scholes or
Monte-Carlo model taking into account the details in
this note and Note 15 to Note 19.
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 the best available
estimate of the number of share options expected to
vest.
included
Non-market vesting conditions are
in
assumptions about the number of options that are
expected
to become exercisable. Estimates are
subsequently revised if there is any indication that the
number of share options expected to vest differs from
previous estimates. Any cumulative adjustment prior to
vesting
the current period. No
in
adjustment is made to any expense recognised in prior
periods if share options ultimately exercised are different
to that estimated on vesting.
is recognised
Inputs to pricing models may require an estimation of
reasonable expectations about achievement of future
vesting conditions. Vesting conditions must be satisfied
for the counterparty to become entitled to receive cash,
other assets or equity instruments of the entity, under a
share-based payment arrangement.
Vesting conditions include service conditions, which
require the other party to complete a specified period of
service, and performance conditions, which require
specified performance targets to be met (such as a
specified Increase in the entity's profit over a specified
period of time) or completion of performance hurdles.
The Company recognises an amount for the goods or
services received during the vesting period based on the
best available estimate of the number of equity
instruments expected to vest and shall revise that
information
estimate,
indicates
instruments
expected to vest differs from previous estimates. On
vesting date, the entity shall revise the estimate to equal
the number of equity instruments that ultimately vested.
if subsequent
the number of equity
if necessary,
that
future vesting conditions
The achievement of
is
reassessed each reporting period. Upon exercise of
share options, the proceeds received net of any directly
attributable transaction costs are allocated to share
capital.
41
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(t) Leases
(r) Provisions, contingent liabilities and contingent
assets
Provisions are recognised when 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
mounts 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 the 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 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.
(s) Subsidiary
During the prior year the Company incorporated a wholly
owned subsidiary, East Laverton Exploration Pty Ltd. No
transactions have been incurred by this entity since
incorporation and therefore the entity has not been
consolidated into the results of the Company. The
Statement of Financial Position, Statement of Profit or
Loss and Other Comprehensive Income, Statement of
Changes in Equity and Statement of Cashflows for the
year then ended as shown in these Financial statements
are considered to constitute those of the Group.
Right of Use Assets
A right of use asset is recognised at the commencement
date of a lease. The right of use asset is measured at
cost, which comprises the initial amount of the lease
liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any
initial direct costs
lease
incurred, and, except where included in the cost of
inventories, an estimate of costs expected to be incurred
for dismantling and removing the underlying asset, and
restoring the site or asset.
incentives received, any
Right of use assets are depreciated on a straight-line
basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the
shorter. Where
to obtain
ownership of the leased asset at the end of the lease
term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
the Company expects
The Company has elected not to recognise a right of use
asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of
low-value assets. Lease payments on these assets are
expensed to profit or loss as incurred.
Lease Liabilities
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made
over the term of the lease, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Company’s incremental borrowing rate.
Lease payments comprise of fixed payments less any
lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to
be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the
period in which they are incurred.
Lease liabilities are measured at amortised cost using
the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future
lease payments arising from a change in an index or a
rate used; residual guarantee; lease term; certainty of a
purchase option and termination penalties. When a
lease liability is remeasured, an adjustment is made to
the corresponding right-of use asset, or to profit or loss
if the carrying amount of the right of use asset is fully
written down.
42
NOTE
ACCOUNTING POLICIES (CONTINUED)
STATEMENT
OF
1:
SIGNIFICANT
to
relating
financial statements do not
include any
The
recoverability and
adjustments
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.
the
(v)
Impact of COVID-19 pandemic
The impact of the COVID-19 pandemic continues to
pose a number of global socio-political, economic and
health risks that may cause an impact on the
Company’s operations. The potential for the pandemic
to be ongoing with unforeseen impacts is high. The
Company has implemented procedures to protect the
wellbeing of staff and contractors and ensure business
continuity. The Company continues to monitor and
respond to the risk of the pandemic commensurate
with the risks in accordance with the Government
recommendations and health advice.
(u) Going Concern
During the year the Company incurred a net loss of
$4,565,273 (2020: loss of $1,878,292). Net cash
outflows from operating and investing activities during
the period were $4,476,569 (2020: cash outflows of
$3,165,059).
the potential
Given
funding options and cash
management initiatives noted below, the Directors
believe the going concern basis is appropriate:
•
•
•
•
cash management
The Company will continue to exercise
and
appropriate
monitoring of operating cashflows according
to exploration success. Future exploration
expenditure is generally discretionary in
nature and exploration activities may be
the
slowed or suspended as part of
Company’s cash management strategy.
The Company has demonstrated its ability
to raise capital via equity placements to
shareholders during the period. Given the
strong support of substantial shareholders
and the prospectivity of the Company’s
current projects the Directors are confident
that any future capital raisings will be
successful.
In August 2021 the Company announced a
successful capital raising of $2.5 million
(before costs) by way of share placement.
fund planned
The
exploration activities and meet working
capital commitments.
In August 2021 the Company announced
the return of the Cox’s Find tenements to the
Vendor for a cancellation fee of $0.1 million.
The transaction releases the Company of
the obligation
the $0.8 million
disclosed in Note 10 and 12.
funds will used
to pay
to
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.
43
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
Note
2021
$
2020
$
The following revenue and expense items are relevant in
explaining the financial performance for the year.
Interest and other income
Interest income – other parties
Government COVID-19 Pandemic cash boost
Expense
Included in administration expenses are the following
material items:
- Rent and outgoings paid
- Accounting and audit fees
- ASX listing fees
- Subscriptions
- Share registry
- Conferences, travel and accommodation
Finance costs
Employee benefits expense
Exploration and evaluation expenditure not capitalised
(a)
(b)
(c)
(d)
441
84,112
84,553
94,639
32,743
77,867
23,385
20,695
64,273
21,708
584,018
115,548
1,341
-
1,341
66,127
35,464
88,638
5,210
18,474
12,616
41,549
235,304
245,710
a) The Company rents properties in Perth, Laverton and Townsville. Of this balance, $88,959 was paid to a
Director related entity during 2021 (2020: $76,371).
b)
In 2021 $9,863 was paid in interest payments on loan provided by a Director related entity (2020:
$41,549). The balance of the loan was repaid during the period. Refer Note 13 for further details.
c) During the year to 2021 the Company hired a full-time head of exploration for its Queensland operations
to compliment the head of exploration for Western Australia. These costs were not incurred in the prior
period. Of the employee remuneration expenses for the year to 30 June 2021 above $105,663 was paid
in superannuation contributions (2020: $51,191). In addition, the balance includes $50,034 (2020: nil) of
geologists’ time that was not directly attributable to exploration activities and has therefore been expensed
as incurred.
d) These costs relate to expenditure for tenement applications and other incidental costs that are not directly
attributable to exploration activities and have therefore been expensed as incurred.
The Company also recognised an impairment loss during the year of $2,460,049 on the Cox’s Find and Mt
Weld tenements. Refer to Note 10 for more details.
NOTE 3: AUDITOR’S REMUNERATION
The auditor of Great Southern Mining Limited is HLB Mann
Judd.
Amounts paid or due and payable to HLB Mann Judd for:
Audit and review of financial reports
Other non-assurance services
2021
$
31,378
-
31,378
2020
$
24,250
-
24,250
44
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
2021
$
2020
$
-
-
-
-
-
-
(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%
(2020: 30%).
(4,565,273)
(1,878,292)
(1,369,582)
(563,488)
Tax effect of:
Non-deductible expenses
Share based payments
Unused tax losses and temporary differences not recognised as deferred tax
assets
Income tax expense on pre-tax loss
(17,294)
98,207
1,288,669
-
86,881
(82,380)
558,987
-
(c) Tax expense/(benefit) relating to items of other comprehensive
income
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% (2020: 30%) have not
been recognised in respect of the following:
Income tax losses
Temporary differences
-
-
-
-
-
-
3,927,586
(1,751,006)
2,176,580
3,751,800
(1,506,531)
2,245,269
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 available-for-sale investments) have not been recognised in the financial statements.
45
NOTE 5: (LOSS) PER SHARE
Basic and diluted loss per share (cents per share)
Weighted average number of Ordinary Shares used in calculation of loss
per share
Loss used in calculation of basic and diluted (loss) per share
2021
2020
(1.09)
(0.56)
418,624,459
326,650,738
(4,565,273)
(1,878,292)
Given the Company is in a loss position for the year ended 30 June 2021 and 30 June 2020 the options that have
been issued during the period are considered to be 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
Cash at bank earns interest at floating rates on daily bank deposit rates.
NOTE 7: OTHER ASSETS
Prepaid expenses
NOTE 8: OTHER RECEIVABLES
Exploration tenement guarantees
NOTE 9: PLANT AND EQUIPMENT
Plant and equipment at cost
Less: Accumulated depreciation
Movement schedule for plant and equipment
Opening written down value
Additions
Disposals
Depreciation
Depreciation allocated to exploration expenditure
Closing written down value
2021
$
2020
$
1,382,875
3,067,264
2021
$
2020
$
30,237
65,401
2021
$
2020
$
30,665
13,500
2021
$
2020
$
354,070
(176,761)
177,309
184,764
(100,213)
84,551
84,551
14,913
169,720
-
(10,793)
(66,169)
177,309
90,424
-
(20,786)
-
84,551
During the period the Company financed the purchase of a motor vehicle for use on site. A second vehicle was
purchased with cash.
46
NOTE 10: EXPLORATION AND EVALUATION EXPENDITURE
Cost brought forward in respect of areas of interest in the
exploration and evaluation stage
Expenditure capitalised during the year
Acquisition of Cox's Find Gold Project
(a)
Impairment of exploration expenditure
Cost carried forward
2021
$
2020
$
6,387,818 4,363,186
2,572,760 1,874,632
150,000
-
(2,460,049)
-
6,500,529 6,387,818
Deferred Consideration relating to Cox's Find Gold Project
(b)
800,000
800,000
7,300,529 7,187,818
The expenditure capitalised during the period is net of a $135,618 Exploration Incentive Scheme (EIS) payment
received during the period in relation to the diamond drilling program at Cox's Find.
In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project
through the payment of a $100,000 cancellation fee. The effect of the transaction is to release the Company of
the obligation to pay Deferred Payment 1. An impairment charge has therefore been recognised against the
Cox’s Find Gold Project.
(a)
In September 2019 the Company completed the acquisition of the Cox’s Find Gold Project. The
material terms of the transaction are outlined below:
Transaction Terms
Consideration
Deferred Payment 1
(b)
Initial $200,000 cash payment made in 2019.
$150,000 was capitalised during the comparative period. $50,000 was expensed as
incurred in the prior period, prior to the transfer of the Project to the Company.
$800,000 cash payment was to be made on or before 23 August 2021. On 23
August 2021 the Company announced the return of the Cox’s Find Gold Project to
the Vendor. The consideration is no longer payable however was in place at 30
June 2021 and has therefore been classified as a current liability. Refer to Note 12.
Deferred Payment 2
$1,000,000 payable in cash or shares (to be determined) subject to the declaration
of a JORC 2012 Mineral Resource of at least 500,000 ounces of gold.
Royalty
1.5% Net Smelter Return (NSR).
Deferred Payment 2 has not been recognised at balance date as it is not possible to reliably estimate the timing
of the payment to be made, or the amount of any payment required, if any. The payment no longer needs to be
made following the return of the Project announced 23 August 2021.
Under the Sale and Purchase agreement the Vendor has registered a mortgage over the project and tenements
M38/578, M38/170 and M38/740 in relation to Deferred Payment 1 and 2. These mortgages are to be
discharged following the return of the tenements to the Vendor in August 2021.
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.
47
NOTE 11: TRADE AND OTHER PAYABLES
Trade creditors
Accruals and other payables
2021
$
2020
$
179,620
273,166
452,786
486,958
175,658
662,616
All trade and other payables are non-interest bearing and are normally settled on 30-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.
NOTE 12: DEFERRED CONSIDERATION
2021
$
2020
$
Deferred consideration - Current - Cox's Find Acquisition
800,000
-
Deferred consideration - Non-Current - Cox's Find
Acquisition
-
800,000
Refer to Note 10 for further information on the Deferred Consideration payable.
NOTE 13: BORROWINGS
Current
Director Loan
Financial Liability
Non-current
Financial Liability
2021
$
2020
$
(a)
(b)
(b)
-
20,000
20,000
500,000
11,691
511,691
110,000
64,239
a) On 30 July 2019 an entity associated with Director John Terpu provided a $500,000 loan to the Company.
The loan was repaid during the current period. Interest of $9,863 was paid during the year.
b) During the period the Company financed the purchase of a site motor vehicle. As at 30 June 2021, two
vehicles have been financed. The facilities are secured with each vehicle used as collateral / security. The
term of each facility is three years (2.0 years remaining) with interest being 3.32%. 100% of each facility
has been utilised at the end of the period. Interest paid on the facilities during the period totaled $3,894.
(2020: nil).
NOTE 14: EMPLOYEE BENEFITS
Current employee entitlements
Annual Leave
Long-Service Leave
Opening balance
Accrued during the period
Taken during the period
Closing balance
2021
$
2020
$
106,288
39,863
146,151
62,675
32,310
94,984
Annual Leave Long Service Leave
32,310
7,553
-
39,863
62,675
70,091
(26,478)
106,288
48
NOTE 15: ISSUED CAPITAL
Note
Issued capital comprises Fully Paid Ordinary Shares
2021
2020
No.
455,020,420
$
31,291,441
No.
408,095,772
$
28,112,639
Movement in issued shares for the year
Balance at beginning of the year
Issued
Exercise of Unlisted Options
Issue of shares to senior advisor
Placement
Securities issued under Long Term Incentive Plan
Cancellation of shares issued to senior advisor
Issue of shares to advisers
Shares issued under a cleansing prospectus
Placement
Exercise of Listed Options
Exercise of Unlisted Options
Exercise of Listed Options
Issue of shares to advisers
Exercise of Listed Options
Exercise of Listed Options
Placement of shares
Exercise of Listed Options
Share issue costs
Balance at the end of the year
Date
20-Sep-19
16-Oct-19
25-Oct-19
05-Nov-19
27-Nov-19
10-Mar-20
01-Apr-20
08-May-20
05-Jun-20
11-Jun-20
20-Jul-20
02-Oct-20
28-Oct-20
09-Nov-20
27-Nov-20
21-Jan-21
(a)
(b)
408,095,772
28,112,639
303,412,338
23,611,759
-
-
-
-
-
-
-
-
-
-
1,000,000
124,648
750,000
6,000,000
39,000,000
50,000
-
455,020,420
-
-
-
-
-
-
-
-
-
-
50,000
15,000
37,500
300,000
3,120,000
2,500
(346,198)
31,291,441
300,000
1,000,000
27,000,000
1,450,000
(1,000,000)
800,000
100
70,000,000
133,334
5,000,000
-
-
-
-
-
-
-
408,095,772
6,000
60,000
1,215,000
80,910
(60,000)
20,400
3
3,150,000
6,667
300,000
-
-
-
-
-
-
(278,100)
28,112,639
a) Shares issued on the exercise of Listed Options by John Terpu, Executive Chairman.
b) On 20 November 2020, the GSN announced it completed a successful placement raising A$3.12 million before costs. The placement involved issuing
39,000,000 Fully Paid Ordinary Shares at A$0.08 each plus 1 free attaching Listed Option (GSNOA) for every 4 placement shares.
49
17 - Listed Option Reserve
18 - Unlisted Option Reserve
18 - Performance Rights Reserve
NOTE 16: RESERVES
2021
$
2020
$
2021
$
2020
$
Balance at beginning of the year
Change during the period
Balance at end of the year
1,357,375
164,541
1,521,916
-
1,357,375
1,357,375
274,601
(a) 263,542
538,143
80,756
193,845
274,601
2021
$
-
(a) 63,896
63,896
2020
$
-
-
-
Total balance of reserves at balance date is:
Total share-based payments expense
incurred for the period - items (a) above:
2,123,954
1,631,975
327,438
274,601
The change during the period records the fair value of securities issued during the period using valuation models as described in Note 1 and the assumptions in
Note 17 to Note 19.
NOTE 17: LISTED OPTION RESERVE
Note
2021
2020
Listed Options on issue
157,484,222
1,521,915
132,004,212
1,357,375
No.
$
No.
$
Movement in issued shares for the year
Balance at beginning of the year
Balance at beginning of the period
Issued under rights issue
Placement of shortfall
Placement
Securities issued Under LTIP
Issue of shares to advisers
Cleansing prospectus
Exercise of Listed Options
Issue of Listed Options following placement
Lead Manager Listed Options on placement
Exercise of Listed Options
Exercise of Listed Options
Issue of Listed Options following placement
Lead Manager Listed Options on placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options to advisers
132,004,212
1,357,375
-
Date
05-Sep-19
25-Oct-19
25-Oct-19
05-Nov-19
10-Mar-20
31-Mar-20
05-Jun-20
06-Jul-20
06-Jul-20
23-Sep-20
09-Nov-20
20-Nov-20
20-Nov-20
21-Jan-21
19-Mar-21
09-Apr-21
(a)
(a)
(b)
(c)
(c)
(d)
(d)
-
-
-
-
-
-
-
17,500,000
2,500,000
(750,000)
(6,000,000)
9,750,010
2,000,000
(50,000)
500,000
30,000
-
-
-
-
-
-
-
-
50,000
-
-
-
100,000
-
14,000
541
-
83,588,449
17,548,997
27,000,000
2,000,000
2,000,000
100
(133,334)
-
-
-
-
-
-
-
-
-
-
-
835,883
175,490
270,000
60,000
22,668
1
(6,667)
-
-
-
-
-
-
-
-
-
Balance at the end of the year
157,484,222
1,521,916
132,004,212
1,357,375
50
NOTE 17: LISTED OPTION RESERVE – CONTINUED
All Listed Options on issue have an exercise price of $0.05 on or before 4 September 2022.
a) Following the General Meeting of Shareholders held on 3 July 2020, 20,000,000 Listed Options (GSNOA) were issued to the Lead Manager of the
placement of May 2020.
b) Listed Options exercised by John Terpu, Executive Chairman in November 2020.
c) On 20 November 2020, the GSN announced it completed a successful placement raising A$3.12 million before costs. The placement involved issuing
39,000,000 Fully Paid Ordinary Shares at A$0.08 each plus 1 free attaching Listed Option (GSNOA) for every 4 placement shares. The Lead Manager
was paid a fee of 6% of the gross proceeds and issued 2,000,000 Listed Options on the same terms as those above.
d) Listed Options issued to advisers. The Listed Options were issued on the same terms as those already on issue.
NOTE 18: UNLISTED OPTION RESERVE
2021
2020
No.
$
No.
$
Balance at the beginning of the year
Issued during the period (a)
Cancelled / Lapsed during the period (b)
Exercised during the period (b)
Balance at the end of the year
8,000,000
5,900,000
(2,000,000)
(1,000,000)
10,900,000
274,601
263,542
-
-
538,143
12,100,000
13,000,000
(12,100,000)
(5,000,000)
8,000,000
80,756
274,601
(80,756)
-
274,601
a) Movement in the Unlisted Options during the period includes the following:
Grant Date
10-07-20
10-07-20
02-09-20
02-09-20
02-09-20
02-09-20
02-09-20
06-10-20
06-10-20
Total
Expiry
Date
30-06-22
30-06-23
30-06-23
30-06-24
30-06-25
30-06-23
30-06-25
31-12-22
31-12-23
Exercise
Price ($)
$ 0.05
$ 0.05
$ 0.10
$ 0.15
$ 0.20
$ 0.10
$ 0.20
$ 0.05
$ 0.10
Balance at
beginning
of reporting
period
-
-
-
-
-
-
-
-
-
Granted
during the
period
600,000
600,000
500,000
500,000
500,000
1,000,000
1,000,000
600,000
600,000
5,900,000
Converted
during the
period
-
-
-
-
-
-
-
-
-
-
Cancelled
during
the
period
Vested at
Balance
period
at period
end
end
600,000
600,000
-
-
600,000
-
-
500,000
-
-
500,000
-
-
-
500,000
-
- 1,000,000
-
- 1,000,000
600,000
600,000
-
-
-
600,000
- 5,900,000 1,200,000
FV at
Grant
Date ($
cents per
option)
0.12
0.12
0.07
0.07
0.07
0.07
0.08
0.10
0.09
Note
A
A
B
C
D
B
D
E
E
Amount
recognised
during the
period
70,970
36,542
27,762
13,379
9,038
28,486
691
45,419
31,255
263,542
51
NOTE 18: UNLISTED OPTION RESERVE - CONTINUED
Assumptions used in valuation of Unlisted Options issued during the period includes the following:
Valuation assumptions
Grant date
Share price at date of grant
Volatility
Expiry date
A
10-Jul-20
$0.16
84%
B
02-Sep-20
$0.12
84%
C
02-Sep-20
$0.12
84%
D
02-Sep-20
$0.12
84%
between 30/6/22 and
30/6/23)
30-Jun-23
30-Jun-24
30-Jun-25
E
06-Oct-20
$0.105
106%
between
31/12/22 and
31/12/23)
Dividend yield
Risk free investment rate
Vesting probability
Weighted average remaining contractual life (yrs)
b) During the year to 30 June 2020 the Company issued 3,000,000 Unlisted Options to the previous Chief Operating Officer. Of this balance, 1,000,000
Unlisted Options vested and were immediately exercised on 17 July 2020. The remaining balance of 2,000,000 lapsed on termination of engagement
with the Company in September 2020.
Nil
0.26%
n/a
1.50
Nil
0.26%
n/a
2.00
Nil
0.26%
n/a
4.00
Nil
0.26%
n/a
3.00
Nil
0.26%
n/a
2.00
NOTE 19: PERFORMANCE RIGHTS
Balance at beginning of the year
Change during the period
Balance at end of the year
30 June 2021
30 June 2020
No
-
6,000,000
6,000,000
$
-
63,896
63,896
No
-
-
-
$
-
-
-
Movement in the performance rights for the current period is shown below:
Tranche
Grant
Date
Expiry
Date
Exercise
Price
Balance
at start of
reporting
period
Granted
during the
period
Converted
during the
period
Cancelled
during the
period
Balance at
period end
Vested
at
period
end
FV at
grant
date ($)
Amount
recognised
during the
period
1
2
3
Total
02-09-20
02-09-20
02-09-20
(a)
(a)
(a)
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
6,000,000
-
-
-
-
-
-
-
-
2,000,000
2,000,000
2,000,000
6,000,000
88,500
-
48,000
-
-
19,500
- 156,000
36,248
19,660
7,988
63,896
a) Performance Rights are convertible into Shares on a one for one basis for no consideration upon exercise by the holder on or before the date which is 2 years
after issue being 2 September 2022.
52
NOTE 19: PERFORMANCE RIGHTS – CONTINUED
The weighted average remaining contractual life of performance rights outstanding at 30 June 2021 was 1.18 years (30
June 2020: nil years).
The achievement of future vesting conditions is reassessed each reporting period.
Each performance right will vest as an entitlement to one Fully Paid Ordinary Share upon achievement of certain
performance milestones. If the performance milestones are not met, the performance rights will lapse and the eligible
participant will have no entitlement to any shares. Performance rights are not listed and carry no dividend or voting
rights. Upon exercise each performance right is convertible into one Fully Paid Ordinary Share to rank pari passu in all
respects with existing Fully Paid Ordinary Shares.
Valuation assumptions (per Tranche)
Share price at date of grant
Time to maturity (yrs)
Volatility (%)
Dividend yield (%)
Risk free interest rate (%)
Vesting probability (%)
Fair value at grant date (cents per security)
NOTE 20: LEASE ASSETS AND LEASE LIABILITIES
LEASE ASSETS
COST
Opening Balance
Additions
Accumulated depreciation
Opening Balance
Charge for the year
Carrying Amount
Amounts recognised in the Profit and loss
Depreciation expense on right of use asset
Interest expense on lease liabilities
Expense relating to short term leases
Total cash outflow for leases
1
$0.12
2.0
90.90%
0%
0.26%
75%
5.90
2
$0.12
2.0
90.90%
0%
0.26%
50%
4.80
3
$0.12
2.0
90.90%
0%
0.26%
25%
3.90
2021
$
2020
$
275,303
-
275,303
275,303
-
275,303
(53,179)
(55,056)
(108,235)
167,068
-
(53,179)
(53,179)
222,124
(55,056)
(7,951)
(16,383)
(79,390)
(53,179)
(10,058)
(16,800)
(80,037)
The Company leases its registered head office premises. The remaining lease term is 3yrs. (2020: 4yrs).
The Company leases a base of operations, including a shed and office, in Laverton, Western Australia and Townsville,
Queensland. At balance date, the leases have a term of less than one year. These leases are either short-term or low-
value, so have been expensed as incurred and not capitalised as right of use assets.
53
NOTE 20: LEASE ASSETS AND LEASE LIABILITIES - CONTINUED
LEASE LIABILITIES
LEASE LIABILITIES
Current
Non-Current
2021
$
2020
$
56,677 52,887
114,955 171,634
171,632 224,521
The Company does not face a significant liquidity risk with regard to its lease liabilities.
NOTE 21: RELATED PARTY DISCLOSURES
Transactions with key management personnel
The following comprises amounts paid or payable and received or receivable applicable to entities in which key
management personnel (KMP) have an interest.
Directors and related parties
Note
2021
$
2020
$
Paid/payable to:
Rent and service charges paid / payable to Ruby Lane Pty Ltd atf
the Terpu Trust
Amount paid to Valleybrook Investments Pty Ltd for the Acquisition of Mon Ami
during the period
Amounts owing to related parties at balance date
Loan provided by Valleyrose Pty Ltd in July 2019
Loan repaid during the period
Interest charges on loan provided by Valleyrose Pty Ltd in July 2019
13
13
Total remuneration paid to KMP of the Company during the
year:
Short-term employee benefits
Post-employment benefits
Share Based payments
Total KMP compensation
NOTE 22: COMMITMENTS AND CONTINGENT LIABILITIES
(a) Exploration Expenditure Commitments
88,334
76,371
-
5,739
-
500,000
9,863
150,000
-
500,000
-
41,549
761,065
70,209
190,748
1,022,022
501,643
49,392
-
551,035
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 licenses and those subject to relinquishment will alter the expenditure commitments of the Company as
will any change to areas subject to licence.
54
NOTE 22: COMMITMENTS AND CONTINGENT LIABILITIES - CONTINUED
(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) Lease Commitments
The Company leases its head office premises. Previously the lease commitments were classified as an
operating lease. Under AASB16, these have been recognised as a right of use asset and a lease liability.
(c) Royalties
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.
(d) Deferred Payment
In September 2019 the Company completed the acquisition of the Cox’s Find Gold Project. Deferred Payment 2
for Cox’s Find, whilst a contingent liability at 30 June 2021, the Deferred Payment is no longer a contingent liability
following the return of the Cox’s Find Gold Project to the Vendor in August 2021.
NOTE 23: SEGMENT INFORMATION
The Company undertakes mineral exploration and evaluation work on a number of tenements located in Western
Australia and Queensland. Management currently identifies the Company’s assets in each location as separate
operating segments. The accounting policies adopted for internal reporting are consistent with those adopted for the
financial statements.
These operating segments are monitored by the Company’s chief operating decision maker and based on internal
reports that are reviewed and used by the Board of Directors in making strategic decisions on the basis of available
cash reserves and exploration results.
The items which are not capitalised to exploration and evaluation expenditure, and included in the statement of profit
or loss and other comprehensive income, relate to the Corporate Segment.
The Company’s corporate assets, consisting of its corporate office headquarters are not allocated to any exploration
segment’s assets and are therefore disclosed separately.
55
NOTE 23: SEGMENT INFORMATION
Segment assets and liabilities are disclosed in the table below:
Western Australia
2020
2021
$
$
Queensland
Corporate
2021
$
2020
$
2021
$
2020
$
Total
2021
$
2020
$
Assets
Exploration and
Evaluation Expenditure 3,697,489 4,228,057 3,603,040 2,959,761
Cash and Cash
Equivalents
Other assets
Assets
- 1,382,875
253,822
-
3,789,461 4,228,057 3,653,527 2,959,761 1,636,697
-
100,972
-
50,487
-
-
-
-
7,300,529
7,187,818
3,067,264
385,576
3,452,840
1,382,875
405,279
3,067,264
385,576
9,088,683 10,640,658
Liabilities
1,069,329
718,797
101,304
39,879
495,168
1,599,373
1,665,801
2,358,049
Other assets include the motor vehicles acquired. Two have been allocated to Western Australia, one is allocated to
Queensland.
In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project through
the payment of a $100,000 cancellation fee. The effect of the transaction is to release the Company of the obligation
to pay Deferred Payment 1 (Note 12 and (b) above). A total impairment charge of $2,460,049 has been recognised in
the statement of profit or loss and other comprehensive income against the Cox’s Find Gold Project.
NOTE 24: 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. 21: FINANCIAL RISK MANAGEMENT (CONTINUED)
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.
NOTE 24: FINANCIAL RISK MANAGEMENT
56
NOTE 24: 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
2021
$
2020
$
1,382,875
3,067,264
30,665
13,500
(iv)
Impairment Losses
None of the Company’s other receivables are past due (2020: 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’s interest-bearing liabilities include the motor
vehicle finance. In 2020 the amount also included the $500,000 loan payable.
The following are the Company’s contractual maturities of financial liabilities, including estimated interest payments
and excluding the impact of netting agreements:
30 June 2021 ($)
Interest Bearing
Non-interest bearing
Carrying
amount
Contractual
cash flows
6 mths or
less
130,000
139,780
11,947
6-12
mths
13,938 113,894
1-2
years
1,252,788
1,382,788
1,252,788
1,392,568
1,252,788
1,264,735
-
-
13,938 113,894
2-5 years
-
-
-
In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project through
the payment of a $100,000 cancellation fee. The effect of the transaction is to release the Company of the obligation
to pay Deferred Payment 1 being $800,000 of the Non-interest bearing amount disclosed above.
57
NOTE 24: FINANCIAL RISK MANAGEMENT (CONTINUED)
30 June 2020 ($)
Interest Bearing
Carrying
amount
Contractual
cash flows
575,930
575,930
6 mths or
less
505,856
6-12
mths
5,835
1-2
years
22,433
2-5
years
40,160
Non-interest bearing
1,462,614
2,038,544
1,466,803
2,042,733
662,614
1,168,470
- 800,000
5,835 822,433
-
40,160
The weighted average interest rate on the motor vehicle facilities is 3.32%. 100% of the facility has been utilised at the
end of the financial year.
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.
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)
(ii)
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.
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 2021 and 2020.
58
NOTE 24: FINANCIAL RISK MANAGEMENT - CONTINUED
30 June 2021
Variable rate instruments
30 June 2020
Variable rate instruments
Profit or loss
100bp
increase
$
100bp
decrease
$
Equity
100bp
increase
$
100bp
decrease
$
13,727
30,574
-
-
13,727
30,574
-
-
Decrease in rate assumes that the interest rate on the variable rate instruments declines to nil.
Fair Values
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
Trade and other payables
Loan from director related entity
Deferred Consideration (a)
Borrowing - Vehicle Finance
Employee benefits
30 June 2021
30 June 2020
Carrying
amount
$
1,382,875
30,665
(452,786)
-
(800,000)
(130,000)
(146,151)
(115,397)
Fair value
$
1,382,875
30,665
(452,786)
-
(800,000)
(130,000)
(146,151)
(115,397)
Carrying
amount
$
3,067,264
13,500
(662,614)
(500,000)
(800,000)
(75,930)
(94,984)
947,236
Fair value
$
3,067,264
13,500
(662,614)
(500,000)
(800,000)
(75,930)
(94,984)
947,236
(a) In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project
through the payment of a $100,000 cancellation fee. The effect of the transaction is to release the Company of
the obligation to pay Deferred Payment 1 being $800,000 of the Non-interest bearing amount disclosed above.
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.
All financial assets carrying amount is equal to their fair values. Financial liabilities carrying value and fair values are
determined using Level 3 inputs.
59
NOTE 24: FINANCIAL RISK MANAGEMENT - CONTINUED
Capital Management
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.
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 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.
NOTE 25: STATEMENT OF CASH FLOWS
Reconciliation of operating loss after income tax to net cash
used in operating activities
2021
$
2020
$
Loss after income tax
(4,565,273)
(1,878,291)
Add: Non-cash items
Depreciation
Share based payment expense
Share based payment allocated to consulting fees
Share based payment to acquire tenements not capitalised
Impairment of exploration expenditure
Change in assets and liabilities
(Increase)/decrease in other current assets
Increase/(decrease) in operating payables
65,436
327,358
29,540
-
2,460,049
17,997
321,590
74,379
274,601
60,000
36,640
-
(33,992)
133,016
Increase/(decrease) in employee entitlements
51,166
16,810
Net cash used in operating activities
(1,292,137)
(1,316,835)
Non-cash investing and financing activities
During the period the Company acquired a motor vehicle via a finance facility of $75,000. Refer Note 13.
60
NOTE 26: EVENTS AFTER REPORTING DATE
Capital raising
In August 2021 the Company completed a placement of 50 million ordinary Shares at $0.05 per Share to raise $2.5
million before costs. The placement also attracted a 1 for 4 free attaching Listed Option (12.5 million Listed Options)
to be issued to placement participants with 2.5 million Listed Options to be issued to the Lead Manager of the
placement. The placement of Listed Options is subject to Shareholder approval.
Appointment of Non-executive Director
On 21 July 2021 the Company appointed Mr Matthew Blake as a Non-executive Director of the Company.
Return of assets
In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project through
the payment of a $100,000 cancellation fee. The effect of the transaction is to release the Company of the obligation
to pay Deferred Payment 1 being $800,000 disclosed in Note 12.
Coronavirus impact
The impact of the Coronavirus (COVID-19) pandemic is ongoing and whilst it has little financial impact on the
Company up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions
and any economic stimulus that may be provided.
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.
61
NOTE 27: NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
The Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company’s
operations and effective for annual reporting periods beginning on or after 1 July 2020. A summary of the relevant new standards and interpretations
and potential impacts on the Company is included in the table below. Any new or amended Accounting Standards or Interpretations that are not yet
mandatory have not been early adopted.
The Company has applied the following standards and amendments for the first time for their annual reporting period commencing 1 July 2020:
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material [AASB 101 and AASB 108]
The AASB has made amendments to AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting
Estimates and Errors which use a consistent definition of materiality throughout International Financial Reporting Standards and the Conceptual
Framework for Financial Reporting, clarify when information is material and incorporate some of the guidance in AASB 101 about immaterial
information.
In particular, the amendments clarify:
•
•
that the reference to obscuring information addresses situations in which the effect is similar to omitting or misstating that information, and
that an entity assesses materiality in the context of the financial statements as a whole, and
the meaning of ‘primary users of general purpose financial statements’ to whom those financial statements are directed, by defining them
as ‘existing and potential investors, lenders and other creditors’ that must rely on general purpose financial statements for much of the
financial information they need.
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business [AASB 3]
The amended definition of a business requires an acquisition to include an input and a substantive process that together significantly contribute to
the ability to create outputs. The definition of the term ‘outputs’ is amended to focus on goods and services provided to customers, generating
investment income and other income, and it excludes returns in the form of lower costs and other economic benefits.
• The amendments will likely result in more acquisitions being accounted for as asset acquisitions.
• AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform [AASB 9, AASB 139 and AASB 7]
The amendments made to AASB 7 Financial Instruments: Disclosures, AASB 9 Financial Instruments and AASB 139 Financial Instruments:
Recognition and Measurement provide certain reliefs in relation to interest rate benchmark reforms.
The reliefs relate to hedge accounting and have the effect that the reforms should not generally cause hedge accounting to terminate. However, any
hedge ineffectiveness should continue to be recorded in the income statement. Given the pervasive nature of hedges involving IBOR-based
contracts, the reliefs will affect companies in all industries.
62
AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet issued in Australia [AASB
1054]
The standard amends AASB 1054 by adding a new requirement for entities to disclose the potential impact of IFRSs that have not yet been issued
by the AASB. This disclosure is necessary for entities that wish to state compliance with IFRS, but not required for entities reporting under tier 2 of
the reduced disclosure regime.
The disclosure is an extension of the requirement in AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors to explain if there
are any accounting standards and interpretations which are not yet applied but are expected to have a material effect on the entity in the current
period and on foreseeable future transactions. It applies where there are any international standards or interpretations (or amendments thereof) that
have not yet been endorsed by the AASB at the time of the completion of the entities’ financial statements.
The 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.
Effective date (annual
reporting periods
beginning on or after)
1 January 2022
Likely impact on
initial application
When these
amendments are
first adopted for the
year ending 30 June
2023, there will be
no material impact
on the financial
statements.
New / revised
pronouncement
Superseded
pronouncement
Nature of change
None
AASB 2020-1
Amendments to
Australian
Accounting
Standards –
Classification of
Liabilities as
current or Non-
current
AASB 2020-1 makes amendments to AASB 101 Presentation of
Financial Statements to clarify requirements for the presentation of
liabilities in the statement of financial position as current or
noncurrent. A liability is classified as current if the entity has no right
at the end of the reporting period to defer settlement for the liability
for at least 12 months after the reporting period. The AASB recently
issued amendments at AASB 101 to clarify the requirements for
classifying liabilities as current. Specifically:
•
•
•
•
clarifying that the classification of a liability as either
current or non-current is based on the entity’s rights at
the end of the reporting period;
stating
that management’s expectations around
whether they will defer settlement or not does not impact
the classification of the liability;
adding guidance about lending conditions and how
these can impact classification; and
including requirements for liabilities that can be settled
using an entity’s own instruments.
The amendments could affect the classification of liabilities,
particularly for entities that previously considered management’s
intentions to determine classification and for some liabilities that can
be converted into equity.
They must be applied retrospectively in accordance with the normal
requirements in AASB 108 Accounting Policies, Changes in
Accounting Estimates and Errors.
63
New / revised
pronouncement
Superseded
pronouncement
Nature of change
None
AASB 2020-8
Amendments to
Australian
Accounting
Standards –
Interest Rate
Benchmark
Reform – Phase 2
- September 2020
In September 2020, the AASB made further amendments to AASB
9, AASB 139, AASB 7, AASB 4 and AASB 16 to address issues that
arise during the reform of an interest rate benchmark (IBOR),
including the replacement of one benchmark with an alternative one.
The amendments:
•
•
•
provide practical expedients to account for changes in
the basis for determining contractual cash flows as a
result of IBOR reform under AASB 9, AASB 4 and
AASB 16
provide additional temporary reliefs from applying
specific hedge accounting requirements to hedging
relationships that are directly affected by IBOR reform,
and
require additional disclosures, including information
about new risks arising from the IBOR reform, how the
entity manages transition to the alternative benchmark
rate(s) and quantitative information about derivatives
and non-derivatives that have yet to transition.
Effective date (annual
reporting periods
beginning on or after)
1 January 2021
Likely impact on
initial application
When these
amendments are
first adopted for the
year ending 30 June
2022, there will be
no material impact
on the financial
statements.
AASB 2021-2
Amendments to
Australian
Accounting
Standards –
Disclosure of
Accounting
Policies and
Definition of
Accounting
Estimates
Given the pervasive nature of IBOR-based contracts, the reliefs
could affect companies in all industries with foreign debt exposures.
None
AASB 2021-2 amends the following Australian Accounting
Standards:
1 January 2023
• AASB 7 Financial Instruments: Disclosures (August 2015);
• AASB 101 Presentation of Financial Statements (July 2015);
• AASB 108 Accounting Policies, Changes in Accounting
Estimates and Errors (August 2015); and
• AASB 134 Interim Financial Reporting (August 2015).
The Standard also makes amendments to AASB Practice Statement
2 Making Materiality Judgements (December 2017). These
amendments arise from the issuance by the International Accounting
Standards Board (IASB) in February 2021 of the following
International Financial Reporting Standards:
• Disclosure of Accounting Policies (Amendments to IAS 1 and
IFRS Practice Statement 2); and
• Definition of Accounting Estimates (Amendments to IAS 8).
When these
amendments are
first adopted for the
year ending 30 June
2024, there will be
no material impact
on the financial
statements.
64
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors of Great Southern Mining Limited (the “Company”):
(a)
the accompanying financial statements and notes comply with the Corporations Act 2001
including:
(i)
(ii)
giving a true and fair view of the Company’s financial position at 30 June 2021
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.
(b)
(c)
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.
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 2021.
This declaration is signed in accordance with a resolution of the Board of Directors.
John Terpu
Executive Chairman
Perth, Western Australia
21 September 2021
65
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 2021, 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 2021 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 Note1(u) in the financial report, which indicates that a material uncertainty
exists that may cast significant doubt on the entity’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 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
Refer to Note 10
The Company has capitalised exploration and
evaluation expenditure of $7,300,529 as at 30
June 2021.
Our audit procedures determined that the
carrying value of exploration and evaluation
expenditure was a key audit matter as it was an
area which 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
associated with
management’s review of the carrying
value of exploration and evaluation
expenditure;
processes
- We obtained evidence
the
Company has current rights to tenure
of its areas of interest;
that
- 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 disclosure 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 2021, 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 2021.
In our opinion, the Remuneration Report of Great Southern Mining Limited for the year ended 30
June 2021 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
21 September 2021
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.
All information as at 20 September 2021 (Calculation Date) unless noted otherwise.
1.
1.1
Shareholder Information
As at Calculation Date the Company had 1,645 holders of Ordinary Fully Paid Shares and 279 holders of
Listed Options.
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.
Listed and Unlisted Options do not carry any voting rights.
1.2
Distribution of Securities
Listed Shares
Listed Options
Unlisted Options
Holding Between
Securities
No. of
holders
Securities
No. of
holders
Securities
No. of
holders
100,001 and Over
469,992,828
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
32,785,333
2,569,132
306,261
6,866
406
818
307
80
34
151,537,448
5,796,635
123,600
24,407
2,126
129
120
16
7
9
10,900,000
0
0
0
0
505,660,420
1,645
157,484,216
281
10,900,000
5
0
0
0
0
5
Unmarketable Parcels
n/a
5,900,000 Unlisted Options were issued under the Company’s Long Term Incentive Plan – refer Note 18 to the
Financial Statements. 5,000,000 Unlisted Options were issued to the Company’s corporate advisor in the 2020
Financial Year and have an exercise price of $0.06 each on or before 4 September 2022.
1,128,475
1,602,259
293
n/a
73
The Company also has 6,000,000 Performance Rights on issue held by one holder. Refer Note 19 to the
Financial Statements.
No securities are subject to escrow.
70
ASX ADDITIONAL INFORMATION (CONTINUED)
1.3
Substantial Holders:
The following holders of securities are recorded as substantial holders:
Fully Paid Ordinary Shares
Listed Options
Rank
Name
No. Held
%
Rank
Name
No. Held
%
1
2
3
4
5
VALLEYROSE PTY LTD
84,541,781
16.72 1
DANNY TAK TIM CHAN
21,668,775 13.76
DANNY TAK TIM CHAN
64,463,958
12.75 2
VALLEYROSE PTY LTD
18,867,179 11.98
VALLEYBROOK
INVESTMENTS PTY LTD
DAVIDE BOSIO and
ASSOCIATED COMPANIES
ANDREW MACDOUGALL
and ASSOCIATED
COMPANIES
47,207,815
9.34 3
27,850,000
5.51 4
27,064,197
5.35 5
VALLEYBROOK
INVESTMENTS PTY LTD
DAVIDE BOSIO and
ASSOCIATED COMPANIES
ANDREW MACDOUGALL
and ASSOCIATED
COMPANIES
14,235,939
9.04
8,500,000
5.40
1,765,625
1.12
Twenty largest quoted security holders
The names of the twenty largest holders of quoted securities are listed below:
Fully Paid Ordinary Shares
Listed Options
Rank
Name
No. Held
%
Rank
Name
No. Held
%
VALLEYROSE PTY LTD
84,541,781 16.72 1
DANNY TAK TIM CHAN
21,668,775 13.76
DANNY TAK TIM CHAN
VALLEYBROOK
INVESTMENTS PTY LTD
PARETO NOMINEES PTY
LTD
BNP PARIBAS NOMS PTY
LTD
ADMARK INVESTMENTS
PTY LTD
50,006,323
9.89 2
47,207,815
9.34 3
16,000,000
3.16 4
14,457,635
2.86 5
14,000,000
2.77 6
ANYSHA PTY LTD
12,500,105
2.47 7
NO BULL HEALTH PTY LTD
11,798,497
2.33 8
DJ CARMICHAEL PTY LTD
10,000,000
1.98 9
7,665,700
1.52 10
7,600,000
1.50 11
VALLEYROSE PTY LTD
VALLEYBROOK
INVESTMENTS PTY LTD
PARETO NOMINEES PTY
LTD
BNP PARIBAS NOMINEES
PTY LTD
ADMARK INVESTMENTS PTY
LTD
NAUTICAL HOLDINGS WA
PTY LTD
GETMEOUTOFHERE PTY
LTD
ANYSHA PTY LTD
MRS VICKI GAYE PLAYER &
MR SCOTT JAMES PLAYER
HSBC CUSTODY NOMINEES
(AUSTRALIA) LIMITED
18,867,179 11.98
14,235,939
9.04
6,000,000
3.81
5,280,591
3.35
5,000,000
3.17
4,700,000
2.98
4,699,825
2.98
4,166,702
2.65
2,750,901
1.75
2,656,666
1.69
1
2
3
4
5
6
7
8
9
10
11
12
13
13
14
15
MR ADAM ANDREW
MACDOUGALL
MR ADAM ANDREW
MACDOUGALL
BNP PARIBAS NOMINEES
PTY LTD
MOUNT STREET
INVESTMENTS PTY LTD
MR RUPERT JAMES
GRAHAM LOWE
CITICORP NOMINEES PTY
LIMITED
MR ROGER BLAKE & MRS
ERICA LYNETTE BLAKE
5,972,565
1.18 12
DJ CARMICHAEL PTY LTD
2,500,000
1.59
5,000,000
0.99 12
KARPAS PTY LTD
2,500,000
1.59
5,000,000
0.99 13
4,204,599
0.83 14
4,000,000
0.79 15
SHAW AND PARTNERS
LIMITED
MR GREGORY JAMES
HOWARTH
MRS CHANDRA ROHINI
SENEVIRATNE
2,250,000
1.43
1,700,000
1.08
1,650,000
1.05
71
Fully Paid Ordinary Shares
Listed Options
Rank
Name
No. Held
%
Rank
Name
No. Held
%
16
17
18
19
20
MRS JUDITH SUZANNE
PIGGIN & MR DAMIEN JAYE
PIGGIN & MR GLENN ADAM
PIGGIN
MR CONNOR MARK
ROBINSON
3,200,000
0.63 16
LAGRAL STRATEGIES PTY
LTD
1,548,997
0.98
2,965,388
0.59 17
KIWI BATTLER PTY LTD
2,452,089
0.48 18
HSBC CUSTODY
NOMINEES (AUSTRALIA)
LIMITED
MR DAVID WINTON JULIUS
DARE
2,442,000
0.48 19
2,250,000
0.44 20
313,264,497
62
MR CONNOR MARK
ROBINSON
MR ADAM ANDREW
MACDOUGALL
SUNSET CAPITAL
MANAGEMENT PTY LTD
HANNING NOMINEES PTY
LTD
1,521,464
0.97
1,375,000
0.87
1,333,334
0.85
1,300,000
0.83
107,705,373
68
Unlisted Options on issue at the Calculation Date per expiry date are below:
Expiry Date
4/09/2022
30/06/2022
30/06/2023
30/06/2023
30/06/2024
30/06/2025
31/12/2022
31/12/2023
Exercise Price
($)
Number on Issue
$ 0.06
$ 0.05
$ 0.05
$ 0.10
$ 0.15
$ 0.20
$ 0.05
$ 0.10
5,000,000
600,000
600,000
1,500,000
500,000
1,500,000
600,000
600,000
10,900,000
Performance Rights
Details of Performance Rights issued during or since the end of the financial year are below:
Tranche
Grant Date
Expiry Date
1
2
3
2/09/2020
2/09/2020
2/09/2020
2/09/2022
2/09/2022
2/09/2022
Granted during the
period
2,000,000
2,000,000
2,000,000
Performance Rights are convertible into shares on a one for one basis for no consideration upon exercise by the
holder on or before the date which is 2 years after issue.
1.4
Share Buy-Backs
There is no current on-market buy-back scheme.
1.5
Securities Purchased On-market
There were no securities purchased on-market per ASX Listing Rule 4.10.22 during the reporting period.
2.
Other Information
Great Southern Mining Limited, incorporated and domiciled in Australia, is a public listed Company limited by
Shares.
72
3.
Tenement Schedule
Project
WESTERN AUSTRALIA
Mon Ami
Duketon North
Southern Star
Duketon
East Laverton
QUEENSLAND
Edinburgh Park Project
Johnnycake
Mc Area
Johnnycake North
Beaks Mountain
Reedy Range
Stretchable
King Creek
Bogie Range
Strathalbyn South
Palmer River
Mosman Project
Mt Bennett
Eagle Mountain
Palmer River North
Tablelands Project
Driscolls Hill
Tenement
% Interest Grant date
Expiry date
Tenement Area km2
M38/1256
E38/2829
G38/38
L38/349
E38/3476
L38/328
E38/3501
M38/1295
E38/3477*
E38/3488*
P38/4523
P38/4524
P38/4525
E38/3518
E38/3362
E38/3363
E38/3364
E38/3662
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
3/09/2012
23/12/2013
1/07/2021
19/04/2021
10/09/2020
18/11/2020
17/02/2021
2/09/1933
22/12/2023
8/07/1942
18/04/2042
10/09/2025
17/11/2041
17/02/2026
Pending grant
Pending grant
Pending grant
4/03/2021
23/02/2021
4/03/2021
17/02/2021
28/04/2021
3/07/2019
28/04/2021
3/03/2025
22/02/2025
3/03/2025
17/02/2026
28/04/2026
2/07/2024
28/04/2026
Pending grant
0.6
1
1
1
1
0.4
210
1
1
1
54
60
135
210
Tenement
% Interest Grant date
Expiry date
Tenement Area km2
EPM 18986
EPM 25196
EPM 26527
EPM 26810
EPM 27130
EPM 27131
EPM 27506
EPM 27450
EPM 27944
EPM 27291
EPM 27305
EPM 27707
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
13/12/2012
3/03/2014
23/08/2017
17/07/2018
24/09/2019
24/09/2019
30/11/2020
3/06/2021
12/12/2022
2/03/2023
22/08/2022
16/07/2023
23/09/2024
23/09/2024
29/11/2025
2/06/2026
Pending grant
10/02/2020
10/02/2020
9/02/2025
9/02/2025
Pending grant
EPM 27460
100%
30/09/2020
29/09/2025
150
9
89
185
227
317
233
121
25
294
96
53
320
*Tenements subject to exercise of Option at GSN’s discretion.
Mineral Resource Statement
The 2021 Mineral Resource estimate for the Mon Ami Gold Project is shown below.
Classification
Indicated
Inferred
Total
COG
g/t Au
0.5
0.5
0.5
Tonnage
Mt
1.41
0.15
1.56
Grade
g/t Au
1.16
0.61
1.11
Metal
Oz Au
52,500
3,000
55,500
In relation to the Mineral Resource Statement , the Company confirms that all material assumptions and
technical parameters that underpin the relevant market announcement continue to apply and have not materially
changed. Refer to Page 15 of the Annual Report for the Competent Persons Statement. Further information can
be found in the ASX announcement of 21 July 2021.
73
4.
Other Additional Information
Corporate Governance:
The Company’s Corporate Governance Statement for 30 June 2021 as approved by the Board can be viewed at
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
Application of Funds:
During the financial year, in accordance with ASX Listing Rule 4.10.19, Great Southern Mining Limited confirms
that it has used its cash and assets (in a form readily convertible to cash) in a manner which is consistent with
the Company’s business objectives.
Review of Operations:
A review of operations is contained in the Directors Report.
74
75