GREAT SOUTHERN MINING LIMITED
ABN 37 148 168 825
Annual Report
For the Year Ended 30 June 2022
TABLE OF CONTENTS
CORPORATE DIRECTORY ................................................................................................. 1
CHAIRMAN’S LETTER ........................................................................................................ 2
REVIEW OF OPERATIONS ................................................................................................. 3
DIRECTORS’ REPORT ...................................................................................................... 16
AUDITOR’S INDEPENDENCE DECLARATION ................................................................ 30
CORPORATE GOVERNANCE STATEMENT .................................................................... 31
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............ 32
STATEMENT OF FINANCIAL POSITION .......................................................................... 33
STATEMENT OF CASH FLOWS ....................................................................................... 34
STATEMENT OF CHANGES IN EQUITY ........................................................................... 35
NOTES TO THE FINANCIAL STATEMENTS..................................................................... 36
DIRECTORS’ DECLARATION ........................................................................................... 63
INDEPENDENT AUDITOR’S REPORT .............................................................................. 64
ASX ADDITIONAL INFORMATION .................................................................................... 68
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)
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 2022 Annual Report.
In what has been an incredibly busy year for Great Southern Mining Limited (the Company) has completed
over 9,587m of reverse circulation (RC) and 320m of diamond drilling at Southern Star with outstanding
intercepts received with the project providing robust sections of thick and continuous gold mineralisation over
600m in length. The Company also completed a 5,000m RC program at its highly prospective Duketon regional
targets which produced encouraging intercepts for future programs and completed a 172-hole 5,586m air core
program at Amy Clarke. The drilling was regarded as highly successful and multiple holes encountered gold
anomalism that form a coherent gold trend and was the first high-grade gold discovered in the Amy Clarke
area, with grades inline with those found in gold deposits throughout the Goldfields, demonstrating that Amy
Clarke may host a gold deposit of economic significance.
The Company shares the Duketon Greenstone Belt with gold producer Regis Resources Limited (ASX: RRL),
which has been successful in the identification of +8Moz of gold resources. Most of these deposits reside on
major well understood shear zones. GSN’s 250km2 of tenure in the Duketon Greenstone Belt includes
significant portions of these shear zones.
As we set our sights on FY2023, the Company has planned aggressive exploration programs across its
Duketon portfolio to advance the projects along the value pipeline. The programs will be executed in line with
funding requirements and appropriate capital management.
Added to this the exciting exploration potential, the Company’s has the 100% owned East Laverton Nickel
Project with its two significant conductors identified from the moving loop electro-magnetic surveys flown during
the year. The Company is well positioned to drill test these conductors in FY2023 and was awarded a grant
under the Western Australian Governments Exploration Incentive Scheme (EIS) for a co-funded drilling
Program of up to $220,000 in drill funding.
The exploration activities in Queensland have continued throughout the year with the exploration team
focussing on structural interpretation, field mapping and geochemical programs. Drill targets are being ranked
and assessed with the tenure being highly prospective, further adding to the exploration upside potential for
the Company.
I would also like to thank my fellow directors Kathleen Bozanic, Andrew Caruso and Matthew Blake for their
support and contributions during the year.
As fellow shareholders of the Company I take this opportunity to thank you for your support. The Company
has a portfolio of quality assets.
Yours sincerely
John Terpu
Executive Chairman
2
REVIEW OF OPERATIONS
(Refer ASX announcements 2/8/21, 25/8/21, and
11/10/21).
The Company completed several drill programs at
multiple projects in Western Australia throughout the
year to 30 June 2022 and is well placed to continue to
advance its projects along the value curve.
A summary of the main exploration activities during the
period is below:
Duketon Gold Project
Southern Star
The Company completed over 10,000m of Reverse
Circulation (RC) drilling at the Southern Star gold
project during the year, split across two separate drill
campaigns.
The first drill campaign, completed in August 2021,
was the Company’s first program at the project having
acquired it in January 2021. The first campaign was
designed to establish continuity of mineralisation along
strike and to test mineralisation to the north, south and
at depth.
Exceptional results were produced with the best
intercepts being:
• 68m @ 1.9 g/t Au from 61m incl. 4m @ 15.3 g/t
Au from 89m and 5m @ 7.0 g/t Au from 114m in
21SSRC0036;
• 59m @ 2.1 g/t Au incl. 9m @ 4.5 g/t Au and 16m
@ 3.2 g/t Au from 53m in 21SSRC0009;
• 17m @ 7.0 g/t Au incl. 2m @ 56.7 g/t Au incl 1m
@ 109 g/t Au from 111m in 21 SSRC0039;
• Multiple intersections in 21SSRC0002, drilled
along strike 12m @ 1.0 g/t Au incl. 2m @ 3.9 g/t
Au from 69m; and 14m @ 1.1 g/t Au incl. 3m @
3.0 g/t Au from 84m; and 12m @ 0.7 g/t Au incl.
1m @ 3.7 g/t Au from 114m; and 38m @ 0.6 g/t
Au incl. 2m @ 4.5 g/t Au from 140m;
• 46m @ 1.2 g/t Au incl. 11m @ 3.4 g/t Au from
40m and 4m @ 6.1 g/t Au from 24m in
21SSRC00011;
The drilling successfully confirmed the grade continuity
and depth potential of Southern Star and resulted in
the discovery of high-grade gold mineralisation, 200m
south of the previously known extent of mineralisation,
with 17m @ 7.0 g/t Au from 111m incl. 2m @ 56.7g/t
Au incl. 1m @ 109.0 g/t Au encountered in hole
21SSRC0039.
A follow-up diamond drilling program was completed in
December 2021 with two holes drilled. The program
was highly effective with both holes intersecting the
target mineralised quartz dolerite unit with significant
gold bearing assemblages noted as part of a
potentially larger system. The standout intersection
from the program was 20m @ 1.7 g/t Au from 62m
including 1.6m @ 13.2 g/t Au
in
21SSDD001. Refer to ASX announcement of 14/2/22).
from 76.6m
The second RC program was completed throughout
April and May 2022 with a total of 4,931m drilled. The
drilling targeted extensions to the south of known
mineralisation and looked to enhance confidence of
grade continuity within the main zones. Drilling has
now demonstrated mineralisation is coherent with
Southern Star now presenting a resource development
opportunity for the Company.
Outstanding intercepts from the second RC program
included:
• 69m @ 1.1 g/t Au from 39m including a higher-
grade core of 10m @ 3.5 g/t Au including 2m @
12.0 g/t Au in 22SSRC0006;
• 13m @ 1.3 g/t Au from 49m including 2m @ 6.9
g/t Au and 3m @ 3.5g/t Au from 78m in
22SSRC0005;
• 15m @ 1.0 g/t Au from 141m incl. 5m @ 2.0g/t
Au in 22SSRC0007; and
• 11m @ 1.0 g/t Au from 167m incl. 2m @ 4.1g/t
Au in 22SSRC0008.
Refer to ASX announcement of 29/6/22 for more
details.
• 1m @ 49.4 g/t Au from 127m and 7m @ 1.4 g/t
in
incl. 3m @ 2.7g/t Au
from 143m
Au
21SSRC0038;
• 36m @ 1.1g/t Au incl 4m @ 3.3 g/t Au in
21SSRC003;
• 19m @ 1.8 g/t Au incl. 6m @ 3.9 g/t Au from 64m
in
from surface
and 4m @ 3.8 g/t Au
21SSRC0001;
• 15m @ 2.1 g/t Au from 113m including 2m @
12.5 g/t Au in 21SSRC0012; and
3
Figure 1: Long section of Southern Star highlighting the new high-grade zone of mineralisation.
Drill holes in the new zone delivered significant gold
intercepts including 13m @ 1.3 g/t Au from 49m
including 2m @ 6.9 g/t Au and 3m @ 3.5g/t Au from
78m in 22SSRC0005 and 69m @ 1.1 g/t Au from 39m
including a higher-grade core of 10m @ 3.5 g/t Au
including 2m @ 12.0 g/t Au in 22SSRC0006.
The outstanding intercepts noted now link the two
zones of high-grade gold and enhance the zone of gold
mineralisation already defined. Mineralisation now
joins together in a thick, continuous zone of over 600m
(Figure 1).
This zone remains open at depth and will be a focal
point for follow-up drilling. The new drilling suggests a
coherent panel of mineralisation with historic drillhole
locations in this area being estimates only given their
vintage.
The Company is planning further RC drilling to test
strike extensions and further test the depth potential at
Southern Star.
Similarly, an extensive multielement soil program north
and south of the deposit is currently underway. The
use of trace level multielement soils was pivotal in
defining the Amy Clarke Prospect (discussed below)
and this same technique will be used to test the strike
extent further afield on this well recognised mineralised
corridor.
GSN shares the Duketon Greenstone Belt with gold
producer Regis Resources Limited (ASX:RRL), which
has been successful in the identification of +8Moz of
gold resources (refer to RRL website). It is interpreted
that all three mineralised corridors in the belt continue
into the GSN’s tenure with:
• ~8km of the Erlistoun Trend
• ~7km of the Garden Well Trend
• ~11km of the Rosemont-Ben Hur Trend.
Southern Star resides on the Rosemont-Ben Hur
Trend and is only 4km south of Ben Hur (Figures 2 and
3). This prolific trend has produced well over 1.5Moz
of resources for Regis Resources. The successful drill
results at Southern Star to date, in combination with its
position along strike from other significant deposits,
has demonstrated a potential mineral resource
development opportunity at Southern Star is emerging.
Exploration along the trend by previous explorers
appears to be limited to shallow ~80m wide spaced
RAB and aircore drilling, the target quartz dolerite unit
is known to pinch and swell, resulting in the true
thickness of the unit ranging from 5-50m in places
making previous exploration ineffective.
4
Figure 2: Long section of Southern Star highlighting the underexplored and poorly tested areas along strike and at depth.
Figure 3: Plan view of GSN’s tenement holding in the Duketon Project highlighting the location of Southern Star and mineralised
corridors (in yellow).
The Company also successfully applied for a Mining Lease over the larger project area at Southern Star with the
lease granted in May 2022. The Mining Lease has an initial term of 21 years.
5
Duketon Regional Targets
Following the acquisition of E38/3518 in July 2020 and E35/3501 in February 2021, GSN’s exploration team
collated an expansive regional dataset incorporating more than 12,000 drill holes and 24,000 soil samples.
From this, a regional exploration and drill program was designed. On 21/9/21 the Company announced the
results of the 4,754m RC program at four regional targets in the Duketon Belt. Standout intersections at each
target included (refer Figure 4):
• 8m @ 2.1 g/t Au from 32m including 4m @ 3.7 g/t Au at Ogilvie’s;
• 5m @ 3.3 g/t Au from 49m including 1m @ 12.3 g/t Au at Golden Boulder;
• 7m @ 1.5 g/t Au including 3m @ 2.5 g/t Au at One Weight Wonder; and
• 7m @ 1.2 g/t Au from 121m including 2m @ 3.3 g/t Au at Erlistoun.
Figure 4: Drilling results at Erlistoun, also showing other targets.
This regional RC drill campaign enables a kilometre long cross section of the bedrock lithology to be generated
which aids GSN to identify new targets and brings a deeper understanding of the Duketon Belt. Multi-element
analysis of these holes has been used to identify alteration signatures and consolidate the geology of the
district. Planning for follow up programs is underway.
6
Amy Clarke
Following the large-scale soil sample program undertaken 2021, covering a 4.3-km long and 900m wide area
over the Amy Clarke prospect, the Company completed a 172-hole air core program for 5,586m in December
2021. The results were announced to the market on 17/1/22 and 1-metre split samples results announced on
13/4/22.
The drilling was regarded as highly successful and multiple holes encountered gold anomalism that form a
coherent gold trend. The trend can be traced north-south through the prospect and every drill line, bar one,
intersected gold anomalism. This newly defined gold trend also corelates well with the previously identified
gold in soil trend that was identified through a geochemistry program undertaken early in 2021.
Significant 1-metre assay results included:
• A standout assay result of 5m @ 8.2 g/t Au including 1m @ 33.5 g/t Au from 33m in 21ACAC0147;
• 1m @ 1.2 g/t Au from 2m in 21ACAC007;
• 2m @ 0.6 g/t Au from 16m, 1m @ 2.5 g/t Au from 24m and 1m @ 0.7 g/t Au from 32m in 21ACAC022;
• 1m @ 3.95 g/t Au from 47m in 21ACAC029;
• 3m @ 1.5 g/t Au from 1m in 21ACAC055;
• 1m @ 0.5 g/t Au from 1m, 1m @ 0.66 g/t Au from 12m, 2m @ 0.5 g/t Au from 20m and 1m @ 1.3 g/t Au
from 35m in 21ACAC065;
• 2m @ 1.1 g/t Au from 4m and 1m @ 0.7 g/t Au from 21m in 21ACAC066;
• 1m @ 0.5 g/t Au from 27m and 2m @ 0.4 g/t Au from 35m and 1m @ 1.7 g/t Au in 21ACAC077;
• 1m @ 0.6 g/t Au from 18m and 1m @ 0.3 g/t Au from 35m in 21ACAC084;
• 2m @ 0.7 g/t Au from 20m in 21ACAC104;
• 1m @ 0.7 g/t Au from 58m in 21ACAC136; and
• 1m @ 1.7 g/t Au from 20m and 1m @ 0.8 g/t Au from 25m in 21ACAC172.
The standout intersection is the first high-grade gold discovered in the Amy Clarke area, with grades in line
with those found in gold deposits throughout the Goldfields, demonstrating that Amy Clarke may host a gold
deposit of economic significance.
The standout intersection from 21ACAC147 is not only significant in isolation but also forms part of a much
larger anomaly which has excellent correlation with kilometre-scale pathfinder elements. The recent bottom of
hole analysis clearly maps out the mineralised system with several elements forming distinct trends that
correlate with the high-grade gold intersections. Arsenic is mapping out the mineralised shear zone that can
be traced for the length of the drilling to date which extends for nearly 4km. With the current extent of drilling
remaining open, particularly in the south.
Bismuth showed excellent correlation with the gold anomaly with concentration towards the centre ‘hotspots’.
Aircore drilling has confirmed that bismuth is a good proxy for gold mineralisation as the main mineralised
trend and the high-grade intersection sit directly in line with the bismuth anomaly (Figure 5).
The position of the high-grade intersection relative to sulfur anomaly is also highly encouraging as the sulfur
anomaly is strongest in the southern portion which correlates with the high-grade intersection (Figure 5 and
Figure 6, 5m @ 8.2 g/t Au in 21ACAC147).
It should be noted that only a thin veneer (0.5-10m) of cover is typical throughout the prospect area and the
majority of gold intersections are within highly sheared mafic bedrock. Hole 21ACAC147 was one of only 24
holes of the program drilled deeper than 40m (maximum depth 60m) and highlights that deeper drilling is
required at Amy Clarke to delineate the mineralised system with additional drilling to the south being a priority.
7
Figure 5: Plan view of Amy Clarke, highlighting bottom of
hole Bismuth contours and recent aircore drilling results
that form a coherent mineralised trend.
Figure 6: Plan view of Amy Clarke, soils contours and
recent aircore drilling results that form a coherent
mineralised trend.
East Laverton Nickel Project
favourable
accumulation.
position
for massive
sulphide
The Company announced the results of the broad
spaced Moving-Loop Electro-Magnetic
(MLEM)
survey at its 100% owned East Laverton Nickel
Project (refer Figure 9).
The MLEM survey was the first of its kind over the
Diorite Hill Magmatic Intrusion which involved laying
wide spaced 200m square transmitter loops and
taking soundings 600m from the loop centres at four
points of the compass. This process was repeated at
55 transmitter locations across the Diorite Hill
Magmatic Complex on a 1200 x 1200m spacing
totalling 220 soundings covering 70km2.
The survey was designed and modelled by Bill
Amann from leading exploration and geophysical
consultants Newexco Exploration Pty Ltd (Newexco),
who have been instrumental in the discovery of
numerous major nickel sulphide deposits in Western
Australia over the last 20 years including Flying Fox,
Spotted Quoll and Nova. The survey returned three
bedrock conductors with the largest conductor being
2km x 1km. The prominent bedrock conductor
identified is in close proximity to the edge of the
interpreted Diorite Hill magmatic complex, which is a
Work has continued on the refinement of the location
and dip of conductors L076 and L124 and in
February 2022, the Company commissioned a infill
Fixed-Loop
The
conductors have now been modelled in 3D, with a
drill program designed to test the bedrock conductor
at L076 with a 600m drill hole (RC with diamond tail)
planned.
Electro-Magnetic
(FLEM).
Continued refinement of conductor L124 has also
noted the conductor is located proximal to a magnetic
source within the interpreted intrusive and modelled
at 300m x 300m. This isolated conductor, identified
in the centre of the Diorite Hill intrusion, is considered
prospective
for platinum-group elements (PGE)
enrichment.
A drill program has been planned with the conductor
to be tested with a number of RC holes.
8
In May 2022, the Company also announced it had been successful in its application to participate in Round 25
of the Western Australian Governments Exploration Incentive Scheme (EIS) Co-funded Exploration Drilling
Program, with the award of up to $220,000 in drill funding.
The EIS grant was primarily based on Multiple bedrock Electro-Magnetic (EM) anomalies identified by the
recent Moving-Loop Electro-Magnetic (MLEM) survey.
Figure 7: Diorite Hill Magmatic complex (red oval magnetic response), highlighting newly identified conductors overlayed
with GSWA magnetics and interpreted basal contact.
Figure 8: Diorite Hill Magmatic complex, highlighting newly identified conductors overlayed with GSWA magnetics and
interpreted basal contact.
Rotorua
Komatiite unit
9
Additional work is being undertaken to identify additional conductors using the same modern exploration
techniques which yielded the compelling conductors over the Diorite Hill intrusion. The Company is also looking
to undertake a similar style moving loop electromagnetic survey on the Rotorua and Curra Komatiite units
(Figure 8). These units have had very little nickel exploration historically with komatiite style mineralisation
being the focus for GSN on these targets. The survey is likely to take place following the completion of the drill
program.
Figure 9: Location of the East Laverton Nickel Project, Laverton Western Australia.
Queensland
Exploration continued during the year at the Edinburgh Park Project located 100km south-east of Townsville
in northern Queensland. GSN’s >1,000km2 landholding surrounds the >1Moz Mt Carlton Gold-Silver-Copper
mine.
The focus at the project has remained on the northern parts of the tenement package with prospects at
Molongle Creek, Edinburgh Castle and Mt Dillon being subject to geochemical and field mapping programs
(Figure 11). These three soil surveys were designed to test the gold-copper-molybdenum metal associations
and aimed to identify metal zonation patterns consistent with large IRGS.
The Company has also focussed on preparing the tenure for drilling with significant progress being made with
land access with agreements signed with the majority of landowners that cover the prospects at Leichhardt
Creek, Fish Creek, Molongle Creek, Mt Dillion and part of Edinburgh Castle.
10
Figure 10: GSN Fly Camp at Mt Dillon, Edinburgh Park, North Queensland.
The activities during the period included full data consolidation and review by independent geological
consultants and interpretation of hyperspectral programs flown previously. Regional scale geophysical
interpretation as well as field mapping, rock chip and geochemical programs were undertaken throughout the
year.
One of the highlights was the identification of the Molongle Creek Prospect which presents a similar
arrangement of lithologies as Mt Dillon, with a volcaniclastic sequence overlaying granodiorite, dacite, and
trachyte, but has an important amount of discrete and dispersed hydrothermal breccias, most of them
developed in volcaniclastic breccias and flow banded rhyolites hosts. The alteration also is stronger than at Mt
Dillon, showing a generalized central zone of phyllic alteration, particularly associated with hydrothermal
breccias mapped. Rock chips as high as 5g/t gold and 58 ppm silver have been recorded.
On 1/3/22, the Company announced it had been awarded a Collaborative Exploration Initiative (“CEI”) grant
of up to $100,000 from the Queensland Government for a proposed ‘Calculated Mineralogy – FTIR and XRF’
program over a number of targets at its 100% owned Edinburgh Park Project in north Queensland. Proposed
program includes analysis of rock, soil and historical drill core samples using FTIR (Fourier-Transform Infrared
Spectroscopy) with XRF (X-Ray Fluorescence) with AI interpretation.
The exploration team continue to focus on data review and base line geochemical work to validate the 19
targets identified from the hyperspectral survey.
11
Figure 11: Location and geology of GSN’s Edinburgh Park Project relative to the Mt Carlton Mine.
12
Cox’s Find and Mt Weld
Following the completion of the drilling program at
Cox’s Find earlier in 2021, the Company entered
negotiations with the vendor of the Project regarding
the potential return of the tenements. A Deed of
Cancellation and Return of the Cox’s Find tenements
(M38/170, M38/578, and M38/740) was entered into
in August 2021 to relieve the Company of its
obligation to pay the deferred payment of $800,000.
Consistent with sensible capital allocation
for
exploration programs, the Board considered the
divestment of the Cox’s Find Project as the preferred
option given the project did not warrant immediate
allocation of exploration capital
the
acquisition of the highly prospective Southern Star
and Duketon Belt tenure. The Company paid the
Vendor $100,000
the
in cash
transaction.
to complete
following
Consistent with this strategy, the Company also
disposed of the non-core Mt Weld tenements
(E38/2442, E38/2587, and E38/2856) and sold the
mining information to a 3rd party for $50,000 in cash.
Corporate
The following significant corporate matters have
occurred during the period:
Placements and Fundraising
The Company announced on 11/8/21 the successful
completion of an oversubscribed placement of
50,640,000 shares at $0.05 each to raise $2,532,000
(before costs). As part of
the
Company also agreed to issue 12,660,000 Listed
Options to Placement Participants and 2,500,000
Listed Options to the lead manager of the Placement
and 2,000,000 Listed Options to an adviser for
corporate services in relation to the Placement
(together referred to as “Placement Options”.
the placement
The Placement Options were issued in October 2021
following approval at an Extraordinary General
Meeting of Shareholders held 29/9/21.
The Company announced on 13/12/21
the
successful completion of an oversubscribed
placement of 26.67 million shares at $0.06 each to
raise $1,600,000 (before costs). As part of the
placement the Company also agreed to issue 13.33
million Listed Options to Placement Participants.
On 4/9/22, all Listed Options on issue expired.
Key Personnel Appointments
On 21/7/21,
the
appointment of Mr Matthew Blake as Non-Executive
Director.
the Company announced
Safety and Sustainability
The Board of Directors of Great Southern Mining
Limited are committed to executing the 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.
Financial Position and Performance
The Company’s net assets increased 29% from the
year ended 30 June 2021, predominately due to the
aggressive exploration programs undertaken at the
Duketon Gold Project and at the East Laverton Nickel
Project. The Company held $0.92 million in cash and
cash equivalents at 30 June 2022.
Operating cash outflows for the period totalled $1.73
million with cash outflows from investing activities
the significant
totalling $3.15 million reflecting
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 Company has performed in a manner consistent
with that of a junior exploration company. The net
loss for the period of $1.82 million is reflective of the
corporate and overhead costs incurred in ensuring
regulatory compliance is maintained and legal fees
incurred in relation to corporate activities during the
year.
Future Prospects
As discussed elsewhere in the Review of Operations
Report, the Company will be looking to undertake
additional exploration programs on its Western
Australian and Queensland projects.
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
13
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 Board also believes that it and the management team have a thorough understanding of the Company’s
key risks in these areas and are managing them appropriately.
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 25 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
Southern Star, Duketon Targets, East
Laverton Nickel Project
Simon
Buswell-Smith
Great Southern Mining
Ltd
MAIG
Competent Person’s Statement
Forward Looking Statements
to
The information in this report 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
the style of
sufficient experience relevant
mineralisation and
type of deposit under
consideration and to the activity they are undertaking
to qualify as Competent Persons under the JORC
Code (2012). 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 information is cross
referenced to the original announcements. In these
cases, the Company is not aware of any new
information or data
the
information presented and
technical
parameters underpinning the estimates continue to
apply and have not materially changed. The
Company confirms that the form and context in which
the Competent Persons findings are presented have
not been materially modified from the original market
announcements.
that materially affects
that
the
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 2022.
Mr Andrew Caruso B.Eng (Mining)(Hons), Grad
Dip. Applied Finance &
Investment – Non-
executive Director
Directors and Company Secretary
(Appointed 26 April 2018)
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, AICD – Non-
executive Director
(Appointed 26 April 2018)
leadership experience
Ms Bozanic is a Chartered Accountant with over
in compliance,
twenty-five years of experience
financial
risk,
governance,
and
commercial
management,
in
including
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.
in
leadership,
industries with a
business
Mr Caruso is a mining engineer with over twenty-
the Australian and
seven years’ experience
international mining
focus on
development,
corporate
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. He
resigned from the position on 1 February 2022. 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-six 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 Javelin
Minerals 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.
Mark Petricevic B.Com, CA, AGIA, GAICD -
Company Secretary
(Appointed 30 April 2018)
Mark is a Chartered Accountant with over nineteen
years’ extensive experience in accounting, financial
reporting, governance, risk management, 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.
16
Directors’ Meetings
The number of meetings of the Company’s Board of Directors attended by each Director during the year ended
30 June 2022 was as follows:
J. Terpu
K. Bozanic
A. Caruso
M. Blake
Number of Board Meetings Held
Whilst in Office
12
12
12
11
Number of Board Meetings Attended
12
12
12
11
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 Held
J. Terpu
K. Bozanic
A. Caruso
M. Blake
147,626,126
1,200,000
900,000
8,517,087
No Ordinary Shares were granted during the period as compensation.
Listed Options
The Listed Options on issue during the period expired on 4 September 2022. No Listed Options were held at the
date of this report and no Listed Options were granted during the period as compensation.
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
Cancelled / Lapsed during the period
Exercised during the period
Closing Balance
30 June 2022
No.
10,900,000
19,250,000
(14,100,000)
-
16,050,000
30 June 2021
No.
8,000,000
5,900,000
(2,000,000)
(1,000,000)
10,900,000
No Ordinary Shares have been issued as a result of the exercise of Unlisted Options during the period.
250,000 Unlisted Options lapsed on resignation of an employee on 12 August 2022. 5,000,000 Unlisted Options
issued to a Broker in relation to a placement in May 2022 expired on 4 September 2022.
17
Performance Rights
There are no Performance Rights on issue at the date of this report.
No Performance Rights have been issued by the Company during or since the end of the financial year. No
Ordinary Shares have been issued as a result of the exercise of any Performance Rights. At 30 June 2021 the
Company had 6,000,000 Performance Rights on issue to the Chief Executive Officer as per the table below:
Performance Rights
Tranche No.
Exercise
Price
Vesting Condition
Chief Executive Officer
(issued 2 September 2020)
1
2
3
2,000,000
2,000,000
2,000,000
nil
nil
nil
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.
Following the resignation of the Chief Executive Officer in January 2022, the Performance Rights have lapsed.
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, included within this Annual Report, 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 $1,825,544 (2021: $4,565,273).
The Operating and Financial Review, included in the full review of operations, can be found immediately preceding
this Directors’ Report.
Significant changes in the state of affairs
Share capital increased by $4.13 million (before issue costs) as a result of the following placements:
- On 11/8/21, the Company completed a placement of 50.64 million shares at $0.05 each to raise $2,53
million (before costs). As part of the placement the Company also agreed to issue 12.66 million Listed
Options to Placement Participants and 2.5 million Listed Options to the lead manager of the Placement
and 2.0 million Listed Options to an adviser for corporate services in relation to the Placement (together
referred to as “Placement Options”. The Placement Options were issued in October 2021 following
approval at an Extraordinary General Meeting of Shareholders held 29/9/21.
- On 13/12/21 the Company placed 26.67 million shares at $0.06 each to raise $1.60 million (before costs).
As part of the placement the Company also agreed to issue 13.33 million Listed Options to Placement
Participants.
18
Significant changes in the state of affairs (continued).
Following the completion of the drilling program at Cox’s Find earlier in 2021, the Company entered negotiations
with the vendor of the Project regarding the potential return of the tenements. A Deed of Cancellation and Return
of the Cox’s Find tenements (M38/170, M38/578, and M38/740) was entered in August 2021 to relieve the
Company of its obligation to pay the deferred payment of $800,000.
Consistent with sensible capital allocation for exploration programs, the Board considered the divestment of the
Cox’s Find Project as the preferred option given the project did not warrant immediate allocation of exploration
capital following the acquisition of the highly prospective Southern Star and Duketon Belt tenure. The Company
paid the Vendor $100,000 in cash to complete the transaction.
Consistent with this strategy, GSN also disposed of the non-core Mt Weld tenements (E38/2442, E38/2587, and
E38/2856) and sold the mining information to a 3rd party for $50,000 in cash.
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.
Issued capital comprises Fully Paid Ordinary Shares
Movement during the period
Balance at beginning of the period
Exercise of listed options
Issue of shares to advisers
Exercise of listed options
Exercise of listed options
Placement of shares
Exercise of listed options
Placement of shares
Exercise of listed options
Placement of shares
Share issue costs
Balance at the end of the period
Note
30 June 2022
Date
20-Jul-20
02-Oct-20
28-Oct-20
09-Nov-20
27-Nov-20
21-Jan-21
19-Aug-21
27-Oct-21
22-Dec-21
(a)
(b)
(c)
No.
532,367,086
No.
455,020,420
-
-
-
-
-
-
50,640,000
40,000
26,666,666
-
532,367,086
$
35,169,281
$
31,291,441
-
-
-
-
-
-
2,532,000
2,000
1,600,000
(256,160)
30 June 2021
No.
$
455,020,420
31,291,441
No.
408,095,772
1,000,000
124,648
750,000
6,000,000
39,000,000
50,000
-
-
-
-
$
28,112,639
50,000
15,000
37,500
300,000
3,120,000
2,500
-
-
-
(346,198)
35,169,281
455,020,420
31,291,441
(a)
(b)
(c)
Placement raising of A$3.12 million before costs. The placement involved issuing 39 million Fully Paid Ordinary Shares at A$0.08 each, plus 1 free
attaching Listed Option (GSNOA) for every 4 placement shares.
50.64 million Fully Paid Ordinary Shares placed at $0.05 each raising $2.53 million before costs. The placement involved issuing 12.66 million free
attaching Listed Options (GSNOA).
26.67 million Fully Paid Ordinary Shares placed at $0.06 each raising $1.60 million before costs. The placement involved issuing 13.33 million free
attaching Listed Options (GSNOA).
On 6/7/22 the Company announced a non-renounceable Rights Issue offer to eligible shareholders (the Offer). The offer was on the basis of 1 New Share for
every 9 Existing Shares held at $0.035 each. On 1/8/22, following completion of the Offer, the Company issued 24,162,161 Shares as a to raise $845,675 (before
costs). Total Shares on issue at the date of this report was 556,529,247.
20
Listed Options issued during the period.
Balance at beginning of the financial year
Issue of Listed Options following Placement
Lead Manager Options on Placement
Exercise of Listed Options
Exercise of Listed Options
Issue of Listing Options following Placement
Lead Manager Options on Placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options to advisers
Lead Manager Options on Placement
Issue of Listed Options following Placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options following Placement
Issue of Listed Options to advisers
Balance at the end of the year
Note
30 June 2022
No.
$
30 June 2021
No.
195,937,567
Date
No.
1,590,114
$
157,484,222
No.
$
1,521,915
$
157,484,222
1,521,915
132,004,212
1,357,375
(a)
(a)
(b)
(c)
(c)
(d)
(d)
(e)
(e)
(e)
(f)
(g)
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
29-Sep-21
29-Sep-21
27-Oct-21
29-Sep-21
22-Dec-21
24-Jun-22
-
-
-
-
-
-
-
-
-
2,500,000
12,660,000
(40,000)
2,000,000
13,333,345
8,000,000
-
-
-
-
-
-
-
-
-
35,000
-
-
25,199
-
8,000
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
-
-
-
-
-
-
195,937,567
1,590,114
157,484,222
1,521,915
All Listed Options issued had an exercise price of $0.05 on or before 4 September 2022. Having expired on 4 September 2022, there are no Listed Options on issue
at the date of this report.
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 3/7/20, 17.5 million Listed Options (GSNOA) were issued participants in the placement with 2.5 million
Listed Options issued to the Lead Manager.
b) Listed Options exercised by John Terpu, Executive Chairman in November 2020.
21
Listed Options issued during the period (continued).
c) The placement involved issuing 39 million 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 million 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.
e) As part of the August 2021 placement, the Lead Manager was issued 2.5 million Listed Options with an
adviser being issued 2 million Listed Options. All Listed Option issues the subject of this placement were
approved for issue by shareholders at a general meeting held 29/9/21.
f) The December 2021 placement involved issuing 13.33 million free attaching Listed Options.
g) On 24/6/22, GSN announced it had issued 8 million Listed Options in satisfaction for fees incurred for
consulting technical geological services.
Subsequent to year end, the Listed Options expired on 4 September 2022 and ceased trading on the ASX on 29
August 2022.
Significant events after the reporting date
Capital Raising
On 6/07/22 the Company announced a non-renounceable Rights Issue offer to eligible shareholders (the Offer).
The offer was on the basis of 1 New Share for every 9 Existing Shares held at $0.035 each with the offer raising
up to $2.07 million before costs. On 1/8/22, the Company issued 24,162,161 Shares to raise $845,675.
Following completion of the Offer and the take up of their entitlement under the Offer, the loan provided by an
entity related to Executive Chairman, John Terpu, was extinguished.
All Listed Options on issue ceased trading on the 29 August 2022 and expired on 4 September 2022. No Listed
Options are on issue at the date of this report.
On 12 August 2022, 250,000 Unlisted Options exercisable at $0.10 each on or before 29 March 2025, lapsed
on resignation of an employee.
On 22 August 2022, 25,000,000 Unlisted Options exercisable at $0.07 each on or before 22 August 2025, were
issued on the engagement of a corporate advisor to the Company.
On 4 September 2022, 5,000,000 Unlisted Options exercisable at $0.06 expired.
As announced on 12/7/22, the Company entered an Option Deed, subsequent to year end, for the sale of EPM’s
27305 and 27291, being the Company’s Palmer River Project located in north Queensland (the ‘Tenements’) to
ASX listed Company, Revolver Resources Holdings Limited (ASX:RRR or ‘Revolver’).
The key terms of the Option Deed are:
1. The purchaser (RRR) pays GSN an option fee of $100,000 in cash upon execution of the Option Deed.
This amount has been received in July 2022. Upon payment of the option fee, Revolver is able to
undertake exploration activities on the Tenements.
2. RRR has the right to exercise the option for a period of up to 12 months from the signing of the Deed.
3. Upon GSN’s successful transfer of the tenements into a newly created subsidiary, Mt Bennett Exploration
Pty Ltd, RRR and GSN may each exercise their call or put options accordingly, which will trigger an
agreed Sale and Purchase Agreement.
The consideration payable to GSN will consist of a further $150,000 cash consideration together with $750,000
of Revolver shares.
22
Coronavirus impact
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.
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.
Likely developments and expected results
The Company will continue to undertake drilling and exploration activities on its Western Australian and
Queensland assets.
Environmental legislation
The Company is committed to minimising the environmental impacts of its exploration and 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 2022.
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 2021 Annual General Meeting
The Company received more than 99.15% of “yes” votes from eligible shareholders on its remuneration report
for 2021. 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.
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the Directors of
the Company with an Independence Declaration in relation to the audit of the financial report.
This Independence Declaration is set out on page 30 and forms part of this directors’ report for the year ended
30 June 2022.
Non-Audit Services
No amounts were paid or payable to the auditor for non-audit services provided during the year.
23
Remuneration Report (audited)
Remuneration Committee
This report outlines the remuneration arrangements
in place for the key management personnel (“KMP”)
of the Company for the financial year ended 30 June
2022. KMP’s are 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
J. Terpu (Executive Chairman appointed 1 July
2013; Non-executive Chairman appointed 12
January 2011).
K. Bozanic (Non-executive Director appointed 26
April 2018).
A. Caruso (Non-executive Director appointed 26
April 2018).
M. Blake (Non-executive Director appointed 21 July
2021).
Chief Executive Officer
S. Gregory (appointed 2 September 2020, resigned
25 February 2022).
Company Secretary and Chief Financial Officer
M. Petricevic (appointed 30 April 2018).
Remuneration philosophy
The performance of the Company depends upon the
quality of the Directors and Executives. The
in determining
the Company
philosophy of
remuneration levels is to:
-
-
-
to
set competitive remuneration packages
attract and retain high calibre employees;
link executive rewards to shareholder value
creation; and
establish appropriate, demanding performance
hurdles for variable executive remuneration in
line with the Company’s corporate strategy and
operationally critical matters.
The Company has not established a Remuneration
Committee. The Board of Directors of the Company
reviewing
is
compensation arrangements for the Directors and
the Executive team.
for determining and
responsible
Board
assesses
of Directors
the
The
appropriateness of the nature and amount of
remuneration of Directors and Executives on a
periodic basis by reference to relevant employment
market conditions with an overall objective of
ensuring maximum stakeholder benefit from the
retention of a high-quality Board and Executive
team.
Remuneration Structure
In accordance with best practice corporate
governance, the structure of non-executive director
and executive remuneration is separate and distinct.
Non-executive Director remuneration
The Board seeks to set aggregate remuneration at a
level that provides the Company with the ability to
attract and retain Directors of the highest calibre,
whilst
to
shareholders.
incurring a cost
is acceptable
that
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. During the
period it was considered appropriate to increase the
fees paid to each Non-executive Director from
$35,000 to $50,000 per annum exclusive of statutory
superannuation for being a Director of the Company.
This was determined to be commensurate with the
level of time, effort and considerable contributions
made by the Non-executive Directors throughout the
period.
24
the acquisition and consolidation of high quality
landholdings, as more appropriate indicators of
management performance.
No STI’s are payable to Executives where it is
considered that the actual performance has fallen
below the minimum requirement.
Service Agreements
Remuneration and other terms of employment for
the Executive Directors and other Key Management
Personnel are formalised in a Service Agreement.
The major provisions of the agreements relating to
remuneration are set out below:
Employee
Base salary ($)
inclusive of
superannuation
J. Terpu
219,000
M. Petricevic
192,500
Term of
agreement
Notice
period
Until
termination
Until
termination
6 months
3 months
Non-executive Director remuneration
(continued)
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 2022, 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
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. A summary of the terms of the LTI are
at
available
https://gsml.com.au/about/governance/.
the Company’s website
on
In the prior period, 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
the financial years ended 30 June 2021 and 30 June
2022.
As an exploration company, the Board does not
consider the profit/(loss) attributable to shareholders
as one of
indicators when
implementing STI payments. The Board considers
exploration success, the effective management of
safety, environmental and operational matters and
the performance
25
Remuneration report (continued)
The details of the remuneration of each member of Key Management Personnel is as follows:
Post-
employment
Short-term employee benefits
benefits
Cash
Salary &
Fees
$
Bonuses
$
Non-
Monetary
Benefits
$
Annual
Leave*
Superan-
nuation
$
$
Directors
J Terpu
Executive Chairman
K. Bozanic
Non-Executive Director
A. Caruso
M. Blake
Total
Non-Executive Director
Non-Executive Director
Other Key Management Personnel
S Gregory (b)
Chief Executive Officer
M Petricevic
Company
Secretary/CFO
M Major (a)
Chief Operating Officer
Total to KMP
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
200,000
200,000
43,750
35,000
43,750
35,000
41,868
-
329,368
270,000
172,475
219,135
172,691
164,996
-
61,998
674,536
716,129
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,290
4,649
-
-
-
-
-
-
5,290
4,649
-
-
572
-
-
-
5,862
4,649
7,650
17,778
-
-
-
-
-
-
7,650
17,778
(12,613)
13,874
(23,179)
4,528
-
-
(28,142)
36,181
20,000
19,000
4,375
3,325
4,375
3,325
4,187
-
32,937
25,650
16,160
20,818
17,269
15,675
-
8,067
66,366
70,209
Other
long-
term
benefits
Long-
service
Leave*
$
3,668
1,533
-
-
-
-
-
-
3,668
1,533
-
-
-
-
-
-
-
-
-
-
236,608
242,960
48,125
38,325
48,125
38,325
46,055
-
378,913
319,610
(371)
126,862
(48,790)
368,273
371 114,075
227,168
56,290
3,525
264,074
76,673
2,202
-
-
-
70,065
-
-
6,822
732,944
7,500
4,106 167,553 1,022,022
Equity
Share
Total
Performance
Related
Options
$
%
-
-
-
-
-
-
-
-
n/a
31%
25%
28%
0%
-
1%
16%
* 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, or had
leave paid out, during the period.
a) Represents fees paid to MMJB Family Trust, an entity associated with M Major. M Major resigned 2/9/20.
b) Mr Gregory resigned in January 2022. The negative amount represents a reversal of the expense due to the lapsing of the securities during the period.
26
Remuneration report (continued)
Unlisted Options
The following Unlisted Options were issued to Key Management Personnel during the period:
Issue
Date
05/10/21
Tranche
Vesting
conditions
Exercise
period / Expiry
Expiry
Years (from
date of
issue)
Exercise
Price
CEO*
CFO
Fair value
per
security
1
2
3
Employed 12
months post
issue
Employed 24
months post
issue
Employed 36
months post
issue
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
3
4
5
$0.10
3,000,000
1,000,000
$0.019
$0.10
3,000,000
1,000,000
$0.023
$0.10
3,000,000
1,000,000
$0.027
9,000,000
3,000,000
* The Unlisted Options lapsed on the individual’s resignation from the Company in January 2022.
Issue
Date
29/03/22
Tranche
Vesting
conditions
Exercise
period / Expiry
Expiry
Years (from
date of
issue)
Exercise
Price
CFO
Fair value
per
security
1
2
3
Employed 12
months post
issue
Employed 24
months post
issue
Employed 36
months post
issue
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
24 months after
vesting or at
cessation of
employment
3
4
5
$0.10
500,000
$0.022
$0.10
500,000
$0.027
$0.10
500,000
$0.030
1,500,000
The Unlisted Options do not entitle the holder to participate in any share issue of the Company.
27
Remuneration report (continued)
Performance Rights
Details of Performance Rights on issue 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
Exercise
Price
nil
Vesting Condition
Share price of $0.25 based on 20-
trading day VWAP.
Expiry
Date
Note 1
2,000,000
2,000,000
nil
nil
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:
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. The Performance Rights
lapsed on the individual’s resignation from the Company in January 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. Blake
M. Petricevic
Opening Balance
1 July 2021
131,749,596
1,200,000
1,200,000
15,000,000
1,500,000
Bought
1,113,918
-
-
2,665,378
-
Sold
/transferred
-
-
(300,000)
(10,000,000)
-
Closing
Balance 30
June 2022
132,863,514
1,200,000
900,000
7,665,378
1,500,000
In August 2022 the Company completed the pro-rata entitlement offer to Shareholders. Both John Terpu and
Matthew Blake took up their full entitlement under the offer. Refer to the table on page 17 for holdings as at the
date of this report.
Listed Options - directly and indirectly held
J. Terpu
K. Bozanic
A. Caruso
M. Blake
M. Petricevic
Opening Balance
1 July 2021
33,103,118
400,000
400,000
3,750,000
500,000
Bought
-
517,172
-
Sold /exercised
-
-
-
(2,500,000)
-
Closing
Balance 30
June 2022
33,103,118
400,000
400,000
1,767,172
500,000
S. Gregory did not hold, directly or indirectly, any fully paid ordinary shares or listed options on the date of his
resignation in January 2022. All Listed Options expired on 4 September 2022. No Listed Options were held by
Directors and Key Management Personnel at the date of this report.
28
Remuneration report (continued)
Unlisted Options - directly and indirectly held
Opening
Balance 1
July 2021
-
-
-
-
1,200,000
1,500,000
Bought/issued
-
-
-
-
4,000,000
9,000,000
Sold/
exercised/
lapsed
-
-
-
-
-
(10,500,000)*
Closing Balance 30
June 2022
-
-
-
-
5,200,000
-
J. Terpu
K. Bozanic
A. Caruso
M. Blake
M. Petricevic
S. Gregory
* Unvested Unlisted Options lapsed on the individual’s resignation from the Company in January 2022.
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.
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 June 2022
Loan repaid to Valleyrose Pty Ltd during the period
Interest charges to 30 June 2022 on loan provided by Valleyrose Pty Ltd
Note
22
13
2022
$
2021
$
77,968
-
88,334
5,739
500,000
-
- 500,000
9,863
2,055
The loan provided by Valleyrose Pty Ltd in June 2022 attracts interest charged on commercial terms. The loan
was repaid through the Director taking up their entitlement in the Rights Issue completed in August 2022.
End of Remuneration Report
Signed in accordance with a resolution of the Directors.
.......................................................................................
John Terpu
Executive Chairman
Perth WA
8 September 2022
29
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 2022, 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
8 September 2022
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 2022 was
approved by the Board on 8 September 2022.
The Corporate Governance Statement is available on the Company’s website at www.gsml.com.au .
31
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
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
BASIC AND DILUTED LOSS PER SHARE (CENTS PER
SHARE)
Year ended
30 June 2022
$
Year ended
30 June 2021
$
Notes
2
2
2
2
2
10
16
4
59,545
84,553
(489,987)
(78,344)
(364,613)
(591,371)
(72,840)
(87,855)
(11,508)
(69,999)
(101,540)
-
(17,032)
(1,885,089)
(1,825,544)
-
(1,825,544)
(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)
-
(1,825,544)
-
(4,565,273)
5
(0.36)
(1.09)
The accompanying notes form part of these financial statements.
32
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
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
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
Notes
2022
$
2021
$
6
7
8
9
20
10
11
12
13
21
14
13
21
15
16
917,830
34,831
952,661
35,667
100,712
111,088
9,805,909
10,053,376
11,006,037
673,449
-
555,000
56,676
137,197
1,422,322
-
58,073
58,073
1,480,395
9,525,642
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
35,169,281
2,209,186
(27,852,825)
9,525,642
31,291,441
2,123,954
(26,027,281)
7,388,114
33
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
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, net of insurance recoveries
Payments for exploration and evaluation expenditure
Proceeds from divestment of assets
Payment to Vendor under Deed of Cancellation and Return
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 exercise of listed options
Proceeds from Director related entity
Net cash provided by financing activities
Net increase/(decrease) in cash held
Cash at beginning of period
Cash at end of period
Year ended
30 June 2022
Year ended
30 June 2021
Note
$
$
(1,708,657)
196
(22,899)
-
(1,731,360)
(2,190)
(3,108,425)
55,000
(100,000)
(3,155,615)
(1,260,861)
186
(23,892)
(7,570)
(1,292,137)
(100,569)
(3,083,863)
-
-
(3,184,432)
3,919,930
-
2,000
500,000
4,421,930
(465,045)
1,382,875
917,830
3,292,180
(500,000)
-
-
2,792,180
(1,684,389)
3,067,264
1,382,875
26
6
The accompanying notes form part of these financial statements.
34
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Notes
Issued Capital
$
Accumulated
Losses
$
Unlisted
Option
Reserve
$
Performance
Rights
Reserve
$
Listed Option
Reserve
$
Total
$
Company
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
Balance at 30 June 2021
Balance at 1 July 2021
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
Lapse of securities during the period
Capital raising costs
15
18
19
17
15
15
18
19
17
16
15
28,112,639
-
-
-
3,525,000
-
-
-
(346,198)
3,178,802
31,291,441
31,291,441
-
-
-
4,134,000
-
-
-
-
(256,160)
3,877,840
(21,462,008)
(4,565,273)
(4,565,273)
-
-
-
-
-
-
-
(26,027,281)
(26,027,281)
(1,825,544)
(1,825,544)
-
-
-
-
-
-
-
274,601
-
-
-
-
263,542
-
-
-
263,542
538,143
538,143
-
-
-
-
115,541
-
-
(34,612)
-
-
-
-
-
-
-
63,896
-
-
63,896
63,896
63,896
-
-
-
-
-
39,748
-
(103,644)
-
1,357,375
-
-
-
-
-
-
164,541
-
164,541
1,521,916
1,521,916
-
-
-
-
-
-
68,199
-
-
8,282,607
(4,565,273)
(4,565,273)
-
3,525,000
263,542
63,896
164,541
(346,198)
3,670,780
7,388,114
7,388,114
(1,825,544)
(1,825,544)
-
4,134,000
115,541
39,748
68,199
(138,256)
(256,160)
-
80,929
(63,896)
68,199
3,963,072
Balance at 30 June 2022
35,169,281
(27,852,825)
619,072
-
1,590,115
9,525,642
The accompanying notes form part of these financial statements.
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 2022. 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 the
purpose of preparing the financial statements.
The accounting policies detailed below have been
consistently applied to all of the years presented
unless otherwise stated.
financial statements are presented
The
Australian dollars.
in
The financial statements for the year ended 30
June 2022 were approved and authorised for issue
by the Board of Directors on 8 September 2022.
(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.
Share based payments
The Company measures the cost of equity-settled
transactions with employees by reference to the fair
value of the equity instruments at the date at which they
are granted. For security instruments issued to parties
other than employees and those providing similar
services, 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.
36
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
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
is
The achievement of
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. This primarily
applies
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.
to
(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 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
37
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
•
receivables and payables, which are stated
with the amount of GST included.
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
that have been enacted or
rates (and
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
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
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
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.
38
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
financial
determination
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
39
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(i) Impairment
•
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
The Company’s financial liabilities include borrowings,
trade and other payables. The Company does not have
in any period
any derivative
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
liabilities are measured at
Subsequently,
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
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 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-
reflects current market
tax discount
assessments of the time value of money and the risks
specific to the asset.
rate
that
that does not generate
largely
For an asset
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.
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.
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.
Similarly, when each major inspection is performed, its
cost is recognised in the carrying amount of the plant
and equipment as a replacement only if it is eligible for
capitalisation.
Depreciation is calculated on a straight-line basis over
the estimated useful life of the assets as follows:
- 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.
(l) Trade and other payables
Trade payables and other payables are carried at
amortised cost and represent liabilities for goods and
services provided to the Company prior to the end of
the financial year that are unpaid and arise when the
Company becomes obliged to make future payments in
respect of the purchase of these goods and services.
Trade and other payables are presented as current
liabilities unless payment is not due within 12 months.
40
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)
(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
deduction, net of
the proceeds.
tax,
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.
41
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.
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
model taking into account the details in Note 18.
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
in
Non-market vesting conditions are
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.
42
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
amounts can be estimated reliably. The timing or
amount of the outflow may still be uncertain.
Restructuring provisions are recognised only if a
detailed formal plan for the restructuring has been
developed and implemented, or management has at
least announced the plan’s main features to those
affected by it. Provisions are not recognised for future
operating losses.
Provisions are measured at the estimated expenditure
required to settle the present obligation, based on the
most reliable evidence available at the reporting date,
including 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) Subsidiaries
The Company has incorporated three wholly owned
subsidiaries, East Laverton Exploration Pty Ltd, Mt
Bennett Exploration Pty Ltd and Conquest Exploration
Pty Ltd. No transactions have been incurred by these
dormant entities since incorporation and therefore the
dormant entities have 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
incentives received, 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.
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.
43
NOTE
ACCOUNTING POLICIES (CONTINUED)
STATEMENT
OF
1:
SIGNIFICANT
(u) Going Concern
(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.
During the year the Company incurred a net loss of
$1,825,544 (2021: loss of $4,565,273). Net cash
outflows from operating and investing activities during
the period were $4,886,975 (2021: cash outflows of
$4,476,569).
the potential
funding options and cash
Given
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
slowed or suspended as part of
the
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 2022 the Company announced
the completion of the non-renounceable pro-
forma entitlement offer, raising $0.85m
(before costs). The funds will be used to
fund planned exploration activities and meet
working capital commitments with
the
shortfall of $1.2m to be placed within three
months.
Following completion of the Offer and the take up of
their entitlement under the Offer, the loan provided by
an entity related to Executive Chairman, John Terpu,
was extinguished.
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.
to
relating
financial statements do not
The
include any
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
44
NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
Note
2022
$
2021
$
The following revenue and expense items are relevant in
explaining the financial performance for the year.
Interest income – other parties
Gain on motor vehicle insurance payout
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
196
59,349
-
59,545
441
-
84,112
84,553
(a)
(147,527)
(56,626)
(74,159)
(42,449)
(31,560)
(25,710)
(94,639)
(32,743)
(77,867)
(23,385)
(20,695)
(64,273)
(b)
(c)
(11,508)
(21,708)
(591,371)
(584,018)
Exploration and evaluation expenditure not capitalised
(d)
(101,540)
(115,548)
a) The Company rents properties in Perth, Laverton and Townsville. Of this amount, $77,968 was paid
to a Director related entity during 2022 (2021: $88,334).
b)
In 2022, $2,055 was accrued in interest payments on the loan provided by a Director related entity in
June 2022 (2021: $9,863). The loan was extinguished in August 2022 on the issue of shares in the
Rights Issue, refer Note 13 for further details.
c) Of the employee remuneration expenses for the year to 30 June 2022 above $103,860 was paid in
superannuation contributions (2021: $105,663). In addition, the balance includes $84,341 (2021:
$50,034) 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 prior 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
2022
$
2021
$
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
34,506
-
34,506
31,378
-
31,378
45
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
2022
$
2021
$
-
-
-
-
-
-
(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%
(2021: 30%).
(1,825,544)
(4,565,273)
(547,663)
(1,369,582)
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
5,746
-
541,917
-
(17,294)
98,207
1,288,669
-
(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% (2021: 30%) have not
been recognised in respect of the following:
Income tax losses
Temporary differences
-
-
-
-
-
-
4,707,877
(2,557,059)
2,150,818
3,927,586
(1,751,006)
2,176,580
Deductible temporary differences and tax losses do not expire under current tax legislation.
46
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
2022
2021
(0.36)
(1.09)
512,453,498
418,624,459
Loss used in calculation of basic and diluted (loss) per share ($)
(1,825,544)
(4,565,278)
Given the Company is in a loss position for the year ended 30 June 2022 and 30 June 2021 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
Vehicle deemed a loss during the period
Depreciation
Depreciation allocated to exploration expenditure
Closing written down value
2022
$
2021
$
917,830
1,382,875
2022
$
2021
$
34,831
30,237
2022
$
2021
$
35,667
30,665
2022
$
2021
$
319,295
(218,583)
100,712
354,070
(176,761)
177,309
177,309
84,551
32,360
-
(26,838)
(14,019)
(68,100)
100,712
169,720
-
-
(10,793)
(66,169)
177,309
During the period a Company vehicle was stolen from its base of operations in Laverton, Western Australia. The
vehicle was insured. The net gain, following the insurance payout, has been recognised in the statement of
comprehensive income (Note 2). The funds received were used to pay out the loan balance remaining on the vehicle
(Note 13).
47
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
Impairment of exploration expenditure
Cost carried forward
2022
$
2021
$
7,300,529
3,305,380
-
10,605,909
6,387,818
2,572,760
(2,460,049)
6,500,529
Deferred Consideration relating to Cox's Find Gold Project
Return of Cox’s Find Gold Project to Vendor
(a)
(a)
-
(800,000)
800,000
-
9,805,909
7,300,529
(a) In August 2021 the Company successfully negotiated with the Vendor to return the Cox’s Find Gold Project
(Project) through the payment of a $100,000 cancellation fee. The effect of the transaction was to release the
Company of the obligation to pay Deferred Payment 1 (which was included as a current liability as at 30 June
2021 – refer Note 12), Deferred Payment 2 and the Royalty Agreement. The Company recognised an
impairment loss during the prior year of $2,460,049 on the Cox’s Find and Mt Weld tenements.
Under the Sale and Purchase agreement the Vendor registered a mortgage over the Project and tenements.
These mortgages were discharged following the return of the tenements to the Vendor in August 2021.
The expenditure capitalised during the 2021 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.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases
is dependent on successful development and commercial exploitation or sale of respective areas.
NOTE 11: TRADE AND OTHER PAYABLES
Trade creditors
Accruals and other payables
2022
$
2021
$
503,003
170,446
673,449
179,620
273,166
452,786
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
2022
$
2021
$
Deferred consideration - Current - Cox's Find Acquisition
-
800,000
Refer to Note 10 for further information on the extinguishment of the deferred consideration payable.
NOTE 13: BORROWINGS
Current
Director Loan
Financial Liability
Non-current
Financial Liability
2022
$
2021
$
(a)
(b)
(b)
500,000
55,000
555,000
-
20,000
20,000
-
110,000
48
NOTE 13: BORROWINGS (CONTINUED)
a) On 15 June 2022 an entity associated with director John Terpu provided a $500,000 loan facility to the
Company. The loan was on commercial terms and attracted an interest rate of 10% per annum. Interest
of $2,054 was accrued at 30 June 2022 (included in Note 11).
Following the completion of the pro-rata entitlement issue in August 2022, the facility has been
extinguished.
b) As at 30 June 2021, the Company had two finance facilities over field vehicles. During the year ended
30 June 2022, one of the facilities was paid out in full. The remaining facility is secured with the vehicle
used as collateral / security. The term of the facility is three years (1.0 years remaining) with interest
being 3.32%. 100% of the facility has been utilised at the end of the period.
Interest paid on the facilities during the period totalled $3,732 (2021: $3,894).
NOTE 14: EMPLOYEE BENEFITS
Current employee entitlements
Annual Leave
Long-Service Leave
Opening balance
Accrued during the period
Taken during the period
Closing balance
2022
$
2021
$
88,548
48,649
137,197
106,288
39,863
146,151
Annual Leave Long Service Leave
39,863
8,786
-
48,649
106,288
79,699
(97,439)
88,548
49
NOTE 15: ISSUED CAPITAL
Note
2022
Issued capital comprises Fully Paid Ordinary Shares
Movement during the period
Balance at beginning of the period
Exercise of listed options
Issue of shares to advisers
Exercise of listed options
Exercise of listed options
Placement of shares
Exercise of listed options
Placement of shares
Exercise of listed options
Placement of shares
Share issue costs
Date
20-Jul-20
2-Oct-20
28-Oct-20
9-Nov-20
27-Nov-20
21-Jan-21
19-Aug-21
27-Oct-21
22-Dec-21
(a)
(a)
No.
532,367,086
No.
455,020,420
-
-
-
-
-
-
50,640,000
40,000
26,666,666
-
$
35,169,281
$
31,291,441
-
-
-
-
-
-
2,532,000
2,000
1,600,000
(256,160)
2021
No.
$
455,020,420 31,291,441
No.
$
408,095,772 28,112,639
1,000,000
124,648
750,000
6,000,000
39,000,000
50,000
-
-
-
-
50,000
15,000
37,500
300,000
3,120,000
2,500
-
-
-
(346,198)
Balance at the end of the period
532,367,086
35,169,281
455,020,420 31,291,441
a) 50,640,000 Fully Paid Ordinary Shares placed at $0.05 each raising $2.53 million before costs. The placement involved issuing 12,660,000 free attaching Listed
Options (GSNOA).
b) 26,666,666 Fully Paid Ordinary Shares placed at $0.06 each raising $1.6 million before costs. The placement involved issuing 13,333,333 free attaching Listed Options
(GSNOA).
NOTE 16: RESERVES
Balance at beginning of the financial
year
Recognised during the period
Forfeited during the period
Balance at end of the financial year
17 - Listed Option Reserve
18 - Unlisted Option Reserve
19 - Performance Rights Reserve
30 June 2022
$
30 June 2021
$
30 June 2022
$
30 June 2021
$
30 June 2022
$
30 June 2021
$
1,521,916
68,199
-
1,590,115
1,357,375
164,541
-
1,521,916
538,143
115,541
(34,612)
619,072
274,601
263,542
-
538,143
63,896
39,748
(103,644)
-
-
63,896
-
63,896
Total Reserve Balance at year end: $2,209,186 (2021: $2,123,954)
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.
50
NOTE 17: LISTED OPTION RESERVE
Note
Movement for the year
Balance at beginning of the financial year
Balance at beginning of the period
Issue of Listed Options following Placement
Lead Manager Options on Placement
Exercise of Listed Options
Exercise of Listed Options
Issue of Listing Options following Placement
Lead Manager Options on Placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options to advisers (ii)
Lead Manager Options on Placement
Issue of Listed Options following Placement
Exercise of Listed Options
Issue of Listed Options to advisers
Issue of Listed Options following Placement
Issue of Listed Options to advisers
30 June 2022
No.
$
30 June 2021
No.
195,937,567
Date
No.
157,484,222
1,590,115
$
1,521,916
157,484,222
No.
132,004,212
(a)
(a)
(b)
(c)
(c)
(d)
(d)
(e)
(e)
(e)
(f)
(g)
6-Jul-20
6-Jul-20
23-Sep-20
9-Nov-20
20-Nov-20
20-Nov-20
21-Jan-21
19-Mar-21
9-Apr-21
29-Sep-21
29-Sep-21
27-Oct-21
29-Sep-21
22-Dec-21
24-Jun-22
-
-
-
-
-
-
-
- -
-
2,500,000
12,660,000
(40,000)
2,000,000
13,333,345
8,000,000
-
-
-
-
-
-
-
-
-
35,000
-
-
25,199
-
8,000
17,500,000
2,500,000
(750,000)
(6,000,000)
9,750,010
2,000,000
(50,000)
500,000
30,000
-
-
-
-
-
-
$
1,521,916
$
1,357,375
-
50,000
-
-
-
100,000
-
14,000
541
-
-
-
-
-
-
1,521,916
Balance at the end of the year
All Listed Options issued had an exercise price of $0.05 on or before 4 September 2022.
195,937,567
1,590,115
157,484,222
a) Following the General Meeting of Shareholders held on 3 July 2020, 20,000,000 Listed Options (GSNOA) were issued.
b) Listed Options exercised by John Terpu, Executive Chairman in November 2020.
c) 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 for 9,750,010 Listed Options. 2,000,000 Listed Options were issued to the Lead Managers on the placement.
d) Listed Options issued to advisers. The Listed Options were issued on the same terms as those already on issue.
e) On 11/8/21, GSN announced it completed a successful placement raising A$2.5 million before costs. The placement involved issuing 50.64 million Fully Paid
Ordinary Shares at A$0.05 each plus 1 free attaching Listed Option (GSNOA) for every 4 placement shares for 12,660,000 Listed Options. As part of the
Placement, the Lead Manager was issued 2,500,000 Listed Options with an adviser being issued 2,000,000 Listed Options. All Listed Option issues the subject
of this placement were approved for issue by shareholders at a general meeting held 29 September 2021.
f) On 22/12/21, GSN announced it completed a successful placement raising A$1.6 million before costs. The placement involved issuing 26.66 million Fully Paid
Ordinary Shares at A$0.06 each plus 1 free attaching Listed Option (GSNOA) for every 2 placement shares for 13,333,345 Listed Options.
g) On 24 June 2022, GSN announced it had issued 8,000,000 Listed Options in satisfaction for fees incurred for consulting technical geological services.
All Listed Options on issue expired on 4 September 2022.
51
NOTE 18: UNLISTED OPTION RESERVE
Opening Balance
Issued during the period
Recognition of prior issued unlisted options
Cancelled / Lapsed During the period
Exercised during the period
30 June 2022
No.
10,900,000
19,250,000
-
(14,100,000)
-
16,050,000
$
538,143
56,582
66,356
(42,009)
-
619,072
30 June 2021
No.
8,000,000
5,900,000
-
(2,000,000)
(1,000,000)
10,900,000
$
274,601
263,542
-
-
-
538,143
Grant
Date
Expiry
Date
Exercise
Price ($)
Balance at
start of
reporting
period
Granted
during the
period
Converted
during the
period
Cancelled /
Lapsed
during the
period
Balance at
period end
Vested at
period end
Assumptions
FV at Grant
Date ($
cents per
option)
Amount
recognised
during the
period
14/05/20
04/09/22
0.06
5,000,000
10/07/20
10/07/20
04/09/20
30/06/22
30/06/23
30/06/23
0.05
0.05
0.10
600,000
600,000
500,000
04/09/20
30/06/24
0.15
500,000
04/09/20
30/06/25
0.20
500,000
04/09/20
30/06/23
0.10
1,000,000
-
-
-
-
-
-
-
04/09/20
06/10/20
06/10/20
05/10/21
05/10/21
05/10/21
29/03/22
29/03/22
29/03/22
15/06/22
Total
30/06/25
31/12/22
31/12/23
05/10/24
05/10/24
05/10/24
29/03/25
29/03/26
29/03/27
15/06/25
0.20
0.05
0.10
0.10
0.10
0.10
0.10
0.10
0.10
0.10
1,000,000
600,000
600,000
-
-
-
-
-
-
-
-
-
-
5,250,000
5,000,000
5,000,000
1,750,000*
1,000,000
1,000,000
250,000
10,900,000 19,250,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 5,000,000**
-
(600,000)
-
-
-
(500,000)
-
(500,000)
-
(1,000,000)
-
-
600,000
500,000
-
-
-
(1,000,000)
-
-
(3,500,000)
(3,500,000)
(3,500,000)
-
-
-
-
(14,100,000)
-
600,000
600,000
1,750,000
1,500,000
1,500,000
1,750,000*
1,000,000
1,000,000
250,000
16,050,000
5,000,000
-
-
500,000
-
-
-
-
600,000
600,000
-
-
-
-
-
-
-
6,700,000
* 250,000 Unlisted Options of this tranche lapsed on 12 August 2022 on cessation of the individuals employment with the Company.
** 5,000,000 Unlisted Options expired on 4 September 2022.
A
B
B
C
D
E
C
E
F
F
G
G
G
H
H
H
I
0.12
0.12
0.12
0.07
0.07
0.07
-
-
37,998
6,128
(8,230)
(5,562)
0.07
(28,217)
0.08
0.10
0.09
0.019
0.023
0.027
0.022
0.027
0.030
0.016
691
21,539
18,027
12,776
9,765
9,854
3,402
2,589
169
80,930
52
NOTE 18: UNLISTED OPTION RESERVE (CONTINUED)
Valuation assumptions
Grant date
Share price at date of grant
($)
Volatility
A
B
C
D
E
F
G
H
I
14/05/20
10-Jul-20
04-Sep-20
04-Sep-20
04-Sep-20
06-Oct-20
05/10/21
29/03/22 15/06/22
0.06
84%
0.16
84%
0.12
84%
0.12
84%
0.12
84%
0.11
106%
0.05
0.05
108%
108%
0.04
98%
Expiry date
04-Sep-22
30-Jun-23
30-Jun-23
30-Jun-24
30-Jun-25
31/12/22 and
31/12/23
24 months
after vesting
or at
cessation of
employment
24 months
after vesting
or at
cessation of
employment
Nil
0.50%
n/a
Nil
0.26%
n/a
Nil
0.26%
n/a
Nil
0.26%
n/a
Nil
0.26%
n/a
Nil
0.26%
n/a
Nil
0.10%
n/a
Nil
0.10%
n/a
15-Jun-
25
Nil
0.85%
n/a
0.18
1.00
1.00
2.00
3.00
1.50
1.50
2.50
2.96
Dividend yield
Risk free investment rate
Vesting probability
Weighted average
remaining contractual life
(yrs)
NOTE 19: PERFORMANCE RIGHTS
Balance at beginning of the year
Change during the period
Lapsed during the period
Balance at end of the year
30 June 2022
30 June 2021
No
6,000,000
-
(6,000,000)
-
$
63,896
39,748
(103,644)
-
No
-
6,000,000
-
6,000,000
$
-
63,896
-
63,896
Following the resignation of the employee in January 2022, the Performance Rights lapsed.
53
NOTE 20: RIGHT-OF-USE ASSETS
COST
Opening Balance
Additions
Accumulated depreciation
Opening Balance
Charge for the year
Carrying Amount
Amounts recognised in Profit and loss
Amortisation of right-of-use asset
Interest expense on lease liabilities
Expense relating to short term leases
Total cash outflow for leases
2022
$
275,303
-
275,303
(108,235)
(55,980)
(164,215)
111,088
(55,980)
(5,721)
(56,215)
(117,916)
2021
$
275,303
-
275,303
(53,179)
(55,056)
(108,235)
167,068
(55,056)
(7,951)
(16,383)
(79,390)
The Company leases its registered head office premises. The remaining lease term is 2yrs. (2021: 3yrs).
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.
NOTE 21: LEASE LIABILITIES
LEASE LIABILITIES
Current
Non-Current
2022
$
2021
$
56,676
58,073
114,749
56,677
114,955
171,632
The Company does not face a significant liquidity risk with regard to its lease liabilities.
NOTE 22: 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
Paid/payable to:
Rent and service charges paid / payable to Ruby Lane Pty Ltd
atf the Terpu Trust
Amounts owing to related parties at balance date
Director Loan repaid during the period
Interest charges on loan provided by Valleyrose Pty Ltd in July
2019
Loan provided by Valleyrose Pty Ltd in June 2022
Interest charges on loan provided by Valleyrose Pty Ltd in June
2022
Note
2022
$
2021
$
13
13
13
77,968
-
-
-
500,000
2,055
88,334
5,739
500,000
9,863
-
-
54
NOTE 22: RELATED PARTY DISCLOSURES (CONTINUED)
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 23: COMMITMENTS AND CONTINGENT LIABILITIES
(a) Exploration Expenditure Commitments
2022
$
2021
$
$
$
659,078
66,366
7,500
732,944
761,065
70,209
190,748
1,022,022
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.
(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.
(d) Royalties
As part of the acquisition of the Mon Ami Gold Project during 2018 the Company entered into 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.
(e) 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.
55
NOTE 24: 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.
Segment assets and liabilities are disclosed in the table below:
Current Assets
Cash and cash
equivalents
Other current assets
Non-current assets
Exploration and
Evaluation Expenditure
Plant and equipment
Other non-current assets
Total Assets
Liabilities
Western Australia
2021
2022
$
$
Queensland
2022
$
2021
$
Corporate
2022
$
2021
$
Total
2022
$
2021
$
-
-
-
-
-
-
-
-
-
-
-
-
917,830 1,382,875
917,830 1,382,875
34,831
30,237
952,661 1,413,112
34,831
30,237
952,661 1,413,112
5,445,100 3,697,489
4,360,809
3,603,040
-
-
9,805,909 7,300,529
40,418
-
100,971
-
5,485,518 3,798,460
47,823
-
4,408,632
50,486
-
3,653,526
12,471
146,755
159,226
177,309
100,712
25,852
197,733
197,733
146,755
223,585 10,053,376 7,675,571
5,485,518 3,798,460
4,408,632
3,653,526 1,111,887 1,636,697 11,006,037 9,088,683
476,366 1,069,329
54,747
101,304
949,282
529,936
1,480,395 1,700,569
Revenue, being interest and other income of $59,545 (2021: $84,553) can be attributed to the corporate segment.
Other assets include insurance prepayments.
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. A total impairment charge of $2,460,049 was recognised in the statement of
profit or loss and other comprehensive income against the Cox’s Find Gold Project in the WA segment.
56
NOTE 25: 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
Trade and other receivables
(ii)
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.
(ii)
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
2022
$
2021
$
917,830
34,832
1,382,875
30,665
(iii)
Impairment Losses
None of the Company’s other receivables are past due (2021: nil).
57
NOTE 25: FINANCIAL RISK MANAGEMENT (CONTINUED)
Liquidity Risk
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. At 30 June 2022, the Company’s interest-bearing
liabilities included the motor vehicle finance (Note 13) and a loan from a Director related entity which was
extinguished in August 2022.
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 ($)
Interest Bearing
Non-interest bearing
30 June 2022 ($)
Interest Bearing
Non-interest bearing
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2
years
2-5
years
130,000
1,252,788
1,382,788
139,780
1,252,788
1,392,568
11,947
1,252,788
1,264,735
13,938
-
13,938
113,894
-
113,894
-
-
-
Carrying
amount
Contractual
cash flows
6 mths or
less
6-12 mths
1-2
years
2-5
years
555,000
673,449
1,228,449
555,000
673,449
1,228,449
505,000
673,449
1,178,449
50,000
-
50,000
-
-
-
-
-
-
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 in 2021.
The weighted average interest rate on the motor vehicle facilities is 3.32%. The interest rate on the Director Loan
is 10%. 100% of the facilities were 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.
58
NOTE 25: FINANCIAL RISK MANAGEMENT (CONTINUED)
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 500 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 basis of a change of 100 basis points for 2021.
NOTE 25: FINANCIAL RISK MANAGEMENT - CONTINUED
Profit or loss
Equity
Increase
Decrease
Increase
Decrease
$
$
30 June 2022
Variable rate instruments
30 June 2021
45,891
Variable rate instruments
13,727
-
-
$
45,891
13,727
$
-
-
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
Borrowing - Vehicle Finance
Employee benefits
30 June 2022
30 June 2021
Carrying
amount
$
917,830
34,832
(673,449)
(500,000)
-
(55,000)
(137,197)
(412,984)
Fair value
$
917,830
34,832
(673,449)
(500,000)
-
(55,000)
(137,197)
(412,984)
Carrying
amount
$
1,382,875
30,666
(452,788)
-
(800,000)
(130,000)
(146,151)
(115,398)
Fair value
$
1,382,875
30,666
(452,788)
-
(800,000)
(130,000)
(146,151)
(115,398)
59
NOTE 25: FINANCIAL RISK MANAGEMENT (CONTINUED)
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.
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 26: STATEMENT OF CASH FLOWS
Reconciliation of operating loss after income tax to net cash
used in operating activities
2022
$
2021
$
Loss after income tax
(1,825,544)
(4,565,273)
Add: Non-cash items
Depreciation
Share based payment expense
Share based payment allocated to consulting fees
Impairment of exploration expenditure
Change in assets and liabilities
(Increase)/decrease in other current assets
Increase/(decrease) in operating payables
Increase/(decrease) in employee entitlements
69,999
17,031
-
-
(9,596)
25,704
(8,954)
65,436
327,358
29,540
2,460,049
17,997
321,590
51,166
Net cash used in operating activities
(1,731,360)
(1,292,137)
Non-cash investing and financing activities
There were no non-cash investing and financing activities during the current period. In the prior period, the
Company acquired a motor vehicle via a finance facility of $75,000. Refer Note 13.
60
NOTE 27: EVENTS AFTER REPORTING DATE
On 6 July 2022 the Company announced a non-renounceable Rights Issue offer to eligible shareholders (the Offer).
The offer was on the basis of 1 New Share for every 9 Existing Shares held at $0.035 each with the offer raising
up to $2.07 million before costs. On 1/08/22, the Company issued 24,162,161 Shares to raise $845,675.
On issue of the shares under the Rights Issue offer, the loan provided by a Director Related entity was extinguished.
The Listed Options on issue at 30 June 2022 ceased trading on the 29 August 2022 and expired on 4 September
2022. No Listed Options are on issue at the date of this report.
On 12 August 2022, 250,000 Unlisted Options exercisable at $0.10 each on or before 29 March 2025 lapsed on
resignation of an employee.
On 22 August 2022, 25,000,000 Unlisted Options exercisable at $0.07 each on or before 22 August 2025, were
issued on the engagement of a corporate advisor to the Company.
5,000,000 Unlisted Options exercisable at $0.06 expired on 4 September 2022.
As announced on 12 July 2022, the Company entered an Option Deed for the sale of EPM’s 27305 and 27291,
being the Company’s Palmer River Project located in north Queensland (the ‘Tenements’) to ASX listed Company,
Revolver Resources Holdings Limited (ASX:RRR or ‘Revolver’).
The key terms of the Option Deed are:
1. The purchaser (RRR) pays GSN an option fee of $100,000 in cash upon execution of the Option Deed.
This amount has been received in July 2022. Upon payment of the option fee, Revolver is able to undertake
exploration activities on the Tenements.
2. RRR has the right to exercise the option for a period of up to 12 months from the signing of the Deed.
3. Upon GSN’s successful transfer of the tenements into a newly created subsidiary, Mt Bennett Exploration
Pty Ltd, RRR and GSN may each exercise their call or put options accordingly, which will trigger an agreed
Sale and Purchase Agreement.
The consideration payable to GSN will consist of a further $150,000 cash consideration together with $750,000 of
Revolver shares.
Coronavirus impact
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.
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 28: NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Some accounting pronouncements which have become effective from 1 July 2021 and have therefore been adopted
do not have a significant impact on the Company’s financial results or position.
At the date of authorisation of these financial statements, several new, but not yet effective, Standards and
amendments to existing Standards, and Interpretations have been published by the AASB. None of these Standards
or amendments to existing Standards have been adopted early by the Company. Management anticipates that all
relevant pronouncements will be adopted for the first period beginning on or after the effective date of the
pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been
disclosed as they are not expected to have a material impact on the Company’s financial statements.
62
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 2022
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 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
John Terpu
Executive Chairman
Perth, Western Australia
8 September 2022
63
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 2022, 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 2022 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 Regarding Going Concern
We draw attention to Note 1(u) in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion
is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material Uncertainty
Related to Going Concern section, we have determined the matter described below to be the key audit
matters to be communicated in our report.
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of exploration and evaluation
expenditure
Refer to Note 10
The Company has capitalised exploration and
evaluation expenditure of $9,805,909 as at 30
June 2022.
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
associated with
key
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 2022, 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 2022.
In our opinion, the Remuneration Report of Great Southern Mining Limited for the year ended 30 June
2022 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
8 September 2022
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 6 September 2022 (Calculation Date) unless noted otherwise.
1.
1.1
Shareholder Information
As at Calculation Date the Company had 1,229 holders of Ordinary Fully Paid Shares.
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.
Unlisted Options do not carry any voting rights.
1.2
Distribution of Securities
Holding Between
Securities
No. of holders
Securities
No. of
holders
Listed Shares
Unlisted Options
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
525,475,075
30,588,405
396,610
65,357
3,800
556,529,247
2,020,189
379
763
47
18
22
1,229
204
35,800,000
-
-
-
-
35,800,000
6
-
-
-
-
6
n/a
n/a
10,800,000 Unlisted Options are on issue under the Company’s Long Term Incentive Plan – refer Note 18 to
the Financial Statements.
25,000,000 Unlisted Options with an exercise price of $0.07 each, expiring on or before 22 August 2025
were issued on 22/8/22.
No securities are subject to escrow.
68
ASX ADDITIONAL INFORMATION (CONTINUED)
1.3
Substantial Holders:
The following holders of securities are recorded as substantial holders:
Rank
Name
No. Held
%
Fully Paid Ordinary Shares
1 VALLEYROSE PTY LTD
2 DANNY TAK TIM CHAN
3 VALLEYBROOK INVESTMENTS PTY LTD
4 ADMARK INVESTMENTS PTY LTD
101,341,239
63,953,823
47,207,815
31,497,055
18.2%
11.5%
8.5%
5.6%
Twenty largest quoted security holders
The names of the twenty largest holders of quoted securities are listed below:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Rank
Name
FULLY PAID ORDINARY SHARES
VALLEYROSE PTY LTD
DANNY TAK TIM CHAN
VALLEYBROOK INVESTMENTS PTY LTD
ADMARK INVESTMENTS PTY LTD
PARETO NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
ANYSHA PTY LTD
Shares Held
%
101,341,239
18.21
50,006,323
47,207,815
31,150,000
20,000,000
14,743,323
13,889,006
8.99
8.48
5.60
3.59
2.65
2.50
2.45
1.62
1.56
1.55
1.53
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13,612,236
NO BULL HEALTH PTY LTD
MR RUPERT JAMES GRAHAM LOWE
MR ADAM ANDREW MACDOUGALL
MOUNT STREET INVESTMENTS PTY LTD
9,000,000
8,667,311
8,615,902
8,517,087
MR ADAM ANDREW MACDOUGALL
7,600,000
1.37
MR ROGER BLAKE & MRS ERICA LYNETTE BLAKE
6,262,032
1.13
MR ROBERT RICHTER
CITICORP NOMINEES PTY LIMITED
SHAREHOLDERS MUTUAL ALLIANCE PTY LTD
MR CONNOR MARK ROBINSON
CHAKA INVESTMENTS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
4,515,057
3,995,582
3,000,000
2,965,388
2,629,630
2,622,808
0.81
0.72
0.54
0.53
0.47
0.47
Total
360,340,739
64.75
69
ASX ADDITIONAL INFORMATION (CONTINUED)
Unlisted Options on issue at the Calculation Date per expiry date are below:
Expiry Date
Exercise Price ($) Number on Issue
31/12/22
30/06/23
30/06/23
31/12/23
30/06/24
05/10/24
29/03/25
05/10/25
29/03/26
05/10/26
29/03/27
22/08/25
$0.05
$0.05
$0.10
$0.20
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.07
600,000
600,000
500,000
600,000
250,000
1,750,000
1,500,000
1,500,000
1,000,000
1,500,000
1,000,000
25,00,000
35,800,000
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.
3.
Tenement Schedule
Project
Tenement
% Interest
Grant date
Expiry date
Tenement Area km2
WESTERN AUSTRALIA
Mon Ami
Duketon Project
East Laverton
M38/1256
E38/2829
G38/38
L38/349
L38/328
E38/3501
M38/1299
E38/3476*
P38/4523*
P38/4524*
P38/4525*
P38/4542*
E38/3723
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%
03/09/12
23/12/13
01/07/21
19/04/21
18/11/20
17/02/21
11/04/22
10/09/20
04/03/21
23/02/21
04/03/21
17/02/21
28/04/21
03/07/19
28/04/21
12/04/22
02/09/33
22/12/23
08/07/42
18/04/42
17/11/41
16/02/26
10/04/43
09/09/25
03/03/25
22/02/25
03/03/25
Pending grant
Pending grant
16/02/25
28/04/26
02/07/24
28/04/26
11/04/27
0.6
1
0.1
0.2
0.04
210
0.6
1
1
1
1
54
60
135
210
2
70
Project
Tenement
% Interest
Grant date
Expiry date
Tenement Area km2
QUEENSLAND
Edinburgh Park Project
Johnnycake
Mc Area
Johnnycake North
Beaks Mountain
Reedy Range
Stretchable
King Creek
Bogie Range
Strathalbyn South
Mt Abbott
Abbott Creek
EPM 18986
EPM 25196
EPM 26527
EPM 26810
EPM 27130
EPM 27131
EPM 27506
EPM 27450
EPM 27944
EPM 28571
EPM 28596
Palmer River
Mosman Project
Mt Bennett (Note 1)
EPM 27291
Eagle Mountain (Note 1)
EPM 27305
Tablelands Project
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
13/12/12
03/03/14
23/08/17
17/07/18
24/09/19
24/09/19
30/11/20
03/06/21
06/04/22
11/12/22
01/03/23
21/08/22
15/07/23
22/09/24
22/09/24
28/11/25
01/06/26
05/04/27
Pending grant
Pending grant
10/02/20
10/02/20
08/02/25
08/02/25
Driscolls Hill
EPM 27460
100%
30/09/20
28/09/25
150
9
89
185
227
317
233
121
25
294
96
320
* Tenement held by East Laverton Exploration Pty Ltd, a wholly owned subsidiary of Great Southern Mining Ltd.
Note 1 - As announced on 12/07/22, the Company entered an Option Deed for the sale of EPM’s 27305 and
27291, being the Company’s Palmer River Project located in north Queensland (the ‘Tenements’) to ASX
listed Company, Revolver Resources Holdings Limited (ASX:RRR or ‘Revolver’).
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.
4.
Other Additional Information
Corporate Governance:
The Company’s Corporate Governance Statement for 30 June 2022 as approved by the Board can be
viewed at www.gsml.com.au
Company Secretary:
The name of the Company Secretary is Mark Petricevic.
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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.
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