Greatland Gold plc
Company number: 5625107
Greatland Gold plc
Report & Financial Statements
for the year ended 30 June 2021
Greatland Gold plc
Company number: 5625107
Contents
Company information
Chairman’s statement
Board of directors
Strategic report
Directors’ report
Statement of directors’ responsibilities
Corporate governance statement
Remuneration committee report
Audit and Risk committee report
Independent auditor’s report
Group statement of comprehensive income
Group statement of financial position
Group statement of changes in equity
Company statement of financial position
Company statement of changes in equity
Group statement of cash flows
Company statement of cash flows
Notes to financial statements
Page
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4-6
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8-13
14-19
20
21-27
28
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30-35
36
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38-39
40
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44-70
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Greatland Gold plc
Company number: 5625107
Company Information
Directors
Alex Borrelli – Non-Executive Chairman
Shaun Day – Chief Executive Officer
Clive Latcham – Non-Executive Director
Paul Hallam – Non-Executive Director
all of
33 St. James’s Square
London SW1Y 4JS
Secretary
Stephen F Ronaldson
Registered Office
Salisbury House, London Wall
London EC2M 5PS
Website
www.greatlandgold.com
Nominated Adviser
Solicitors
Auditors
Joint Broker/Advisor
Joint Broker/Advisor
Banker
UK / AU Media
and Investor Relations
Registrars
SPARK Advisory Partners Limited
5 St. John’s Lane
London EC1M 4BH
Druces LLP
Salisbury House, London Wall
London EC2M 5PS
PKF Littlejohn LLP
15 Westferry Circus
London E14 4HD
Berenberg
60 Threadneedle Street
London EC2R 8HP
Canaccord Genuity
88 Wood Street
London EC2V 7QR
SI Capital Limited
46 Bridge Street
Godalming, Surrey GU7 1HL
Hannam & Partners
2 Park Street
London W1K 2HX
Coutts & Co
440 Strand
London WC2R 0QS
Luther Pendragon
48 Gracechurch Street
London EC3V 0EJ
Investability
Level 39 88 Phillip Street
Sydney, NSW, 2000
Share Registrars Limited
Molex House, Crosby Way
Farnham, Surrey GU9 7XX
Registered number
5625107
3
Greatland Gold plc
Company number: 5625107
Chairman’s Statement
I am pleased to report on the Company’s audited results for the year ended 30 June 2021.
It has been another year of considerable progress for Greatland Gold plc (“Company”) and the
consolidated group (“Greatland” or the “Group”), which has seen its evolution from a junior explorer
to a mining development and exploration company. We achieved several significant milestones at our
flagship asset Havieron including commencing construction and surface infrastructure activities, taking
major steps towards bringing a tier-one gold copper mine into production.
Such has been the pace of development at Havieron, that during the financial year Greatland entered
into a new landmark joint venture agreement with Australia’s largest gold producer Newcrest Mining
Limited (Newcrest, ASX: NCM). This partnership with a tier-one, experienced operator in this region
has enabled greater investment in Havieron and an extensive programme of growth drilling which
furthered our understanding in the deposit and accelerated its development. In December 2020, we
announced a maiden resource of 3.4Moz Au and 160Kt Cu, the first of many graduating studies into
the size of Havieron. Subsequent to the year end in October 2021, Greatland was awarded the winner
of the 2021 Commodity Discovery Fund award for its Havieron discovery.
The Havieron gold-copper discovery is a world class deposit and continues to deliver excellent results
with significant intercepts of high-grade gold and copper outside of the existing resource shell. With
over 200,000 metres of drilling now completed, the equivalent distance of London to Sheffield we have
significantly enhanced our understanding of the deposit and of the likelihood of continuing to upgrade
to the Mineral Resource Estimate in the near-term.
Subsequent to the year end, a Pre-Feasibility study was released on an initial segment of the Havieron
deposit which has detailed a development pathway to first gold produced and operating cashflow. The
study revealed the tip of the Havieron iceberg with a fraction of the initial resource supporting the total
capex of the project, justifying a fast start approach to early cashflow generation and reinvesting back
into Havieron development and infrastructure. This supports our belief that the profile of Havieron
makes it a globally unique opportunity for bringing a low risk, low capex tier-one gold-copper mine
into production.
Capitalising upon the success at Havieron, Greatland also entered into a second joint venture with
Newcrest during the year in the prospective Paterson region. The Juri Joint Venture for the Paterson
Range East and Black Hills licences represents an affirmation of Greatland’s belief in the potential of
these areas, maximising the long-term strategic value of these licences. Subsequent to year end
Greatland completed the maiden drill programme at Juri and announced intercepting gold
mineralisation from the initial four assayed holes, including first gold identified at the Goliath prospect.
The rapid progress seen at Havieron has not lessened our appetite for exploration and new discoveries
and we are excited by several other prospects that display similar geophysical characteristics to the
Havieron gold-copper deposit, particularly in the Paterson region where Greatland has an expanded
strategic footprint. Key developments for the year across Greatland’s portfolio of exploration projects
are detailed in the Strategic Report, but I would like to briefly note some further highlights.
Exploration portfolio
At Scallywag, adjacent to the Havieron project, exploration work consisted of airborne Electro-
Magnetic (EM) surveying, target identification and drilling. The 2021 Scallywag drill programme is
currently underway designed to test a series of airborne EM anomalies identified in the 2020 survey
and three new targets identified through ongoing geological interpretation.
4
Greatland Gold plc
Company number: 5625107
Chairman’s Statement (continued)
During the year and post period, Greatland expanded its strategic footprint in the Paterson to over
1,000 square kilometres through the acquisition of the Canning and Rudall exploration licence
applications, which contains similar magnetic anomalies to the Havieron deposit, and by acquiring
additional tenements in the Paterson South region.
At the Panorama tenement, a 362 line km heliborne electromagnetic and magnetic survey over part of
the tenements was undertaken and at Ernest Giles, our land holdings increased as Greatland applied
for two additional exploration licences, Mount Smith and Welstead, contiguous to the current live
licences of Peterswald and Calanchini.
During the year, a retrospective adjustment has been made to reflect a change in accounting policy of
exploration and evaluation expenditure. Note 1.19 within the financial statements provides further
details regarding the change in accounting policy.
In addition, the Group transferred £17,091,622 of capitalised exploration costs associated with the
intangible assets to mine development during the year following
Havieron project from
commencement of the construction of the box cut and the decline during the year.
Corporate
Greatland successfully transitioned the leadership and management of the Group to Shaun Day as
Chief Executive Officer and Executive Director in February 2021. Shaun has extensive industry
experience and the required skillset to maximise Havieron and lead Greatland into the future as a
development and mining company. Since his appointment, Shaun has focussed on broadening the
capability of the management and technical teams to meet the evolving needs of the Group.
A number of subsequent high quality, new appointments with Otto Richter appointed as Group
Mining Engineer, Christopher Toon as Chief Financial Officer and John McIntyre as Exploration
Manager has demonstrated Greatland’s growing reputation as a business in the industry and desire to
work with a world class asset. This evolution continued post period with the establishment of the
Technical Advisory Committee and appointment as a Non-Executive Director of Paul Hallam, an
industry veteran with more than four decades of Australian and international resource experience.
We are grateful to both Gervaise Heddle, our former Chief Executive Officer, and Callum Baxter who
has joined our Technical Advisory Committee, who stepped down from the Board on 12 March 2021
and 31 August 2021 respectively, for their significant contribution to the development of the Group.
In May 2021, we appointed Canaccord Genuity as Corporate Brokers and Financial Advisers to
complement Berenberg, Hannam & Partners and SI Capital as we continue to expand our institutional
investor base in line with the growth of the Company.
The Company is well positioned to fund its portfolio of projects well into the next financial year. For
the Havieron project, Greatland entered into a US$50m loan facility during the year with Newcrest to
keep pace with an accelerated development timetable up to project Feasibility. For the Juri Joint
Venture, Greatland has benefited from Newcrest initially funding the exploration campaign freeing up
cash reserves for our own exploration plans in the Paterson region and across our other projects.
5
Greatland Gold plc
Company number: 5625107
Chairman’s Statement (continued)
Greatland is committed to safe, responsible and sustainable exploration and we continue to focus on
improving health and safety training and processes, and on further strengthening our relationships with
the indigenous communities in the areas that we operate as well as on our Environmental, Social and
Governance (ESG) focus for developing a responsible and sustainable resources company.
Greatland benefits from operating in a tier one jurisdiction in the state of Western Australia. The
remote location, coupled with health protocols and tight border controls has resulted into minimal
impact of COVID-19 on operations, as the total number of community cases recorded across the
entire state is less than 15 for the year. At Havieron, Newcrest have implemented and maintained
measures to reduce and mitigate the risk of the COVID-19 pandemic to its project workforce and key
stakeholders, and operations have continued without interruption.
Nevertheless, I would like to reiterate that the health and safety of our staff, partners and stakeholders
has always been of paramount importance to the board and it is even more so in our focus now.
Looking ahead
Greatland today is a different looking company to a year ago, as demonstrated by the rapid change and
accelerated development progress at our flagship Havieron asset. There is lots to do and whilst our
success at Havieron provides an exceptional foundation and cornerstone project on which to build, we
are not resting on this. In addition, we have several other excellent prospects, including an enviable
footprint in the Paterson region, arguably one of the most attractive frontiers in the world for the
discovery of tier-one, gold-copper deposits.
The transformation of Greatland over the past few years has been remarkable and we are now in the
strongest position we have ever been to capitalise upon our recent success. We remain committed to
increasing value for our shareholders and we look forward to continuing along this exciting journey.
On a macro level, a mix of tailwinds and challenges endure for gold prices. Support exists due to the
uncertainty in global markets from ongoing COVID-19 and uneven economic recovery with
continuing central bank stimulus and higher rates of inflation. We also believe the gold price will be
further supported by supply challenges, as major new gold discoveries in safe jurisdictions are
becoming less frequent and as reserves at larger deposits are depleted.
I would like to end by thanking my fellow Board members, the management team and our staff, for
their hard work and commitment to the Company. The progress we have taken over the past year is
a credit to our management team and their strategy. Finally, I would like to thank all our shareholders
for their continued support and feedback. We are working tirelessly to ensure Greatland is maximising
shareholder value and we expect that the current year will be at least as successful as this last one has
been.
Alex Borrelli
Chairman
11 November 2021
6
Greatland Gold plc
Company number: 5625107
Board of Directors
Alex Borrelli
FCA, Non-executive Chairman
Alex is Chairman of Greatland Gold plc. Alex qualified as a Chartered Accountant and has many years’
experience in investment banking encompassing flotations, takeovers, and mergers and acquisitions
for private and quoted companies. Alex is also a director of Bradda Head Lithium Limited, Red Rock
Resources plc and Tiger Royalties and Investments plc, all AIM-listed companies.
Shaun Day
FCA, Chief Executive Officer
Shaun is Chief Executive Officer of Greatland Gold plc. Shaun has over 20 years of experience in
executive and financial positions across mining and infrastructure, investment banking and
international consulting firms. Shaun has considerable Capital Markets experience with a track record
of leading successful transactions including M&A of publicly listed companies, farm-in agreements and
raising capital.
Prior to joining Greatland, Shaun spent six years as CFO of Northern Star Resources Limited
(“Northern Star”), an ASX100 company and a global-scale Australian gold producer, where he oversaw
the expansion of its market capitalisation from AU$700m to AU$8bn. Prior to Northern Star, Shaun
spent five years as CFO of top 50 SGX listed Sakari Resources Plc, which operated multiple mines
before its sale for over US$2bn.
Clive Latcham
BE (Hons), MSc (Mineral Economics), Non-Executive Director
Clive is a chemical engineer and mineral economist with over thirty years’ experience in senior roles in
the mining sector. Clive joined Greatland from ERM – Environmental Resource Management, the
world’s leading sustainability consultancy group, where he is currently Senior External Advisor, and
advisor to the Chairman and Chief Executive Officer.
Prior to his role at ERM, Clive worked as an independent advisor to private equity and mining
consultancy firms, and spent nine years in senior roles with Rio Tinto plc. During his time at Rio Tinto,
Clive spent four years as Copper Group Mining Executive, where he was responsible for managing
Rio Tinto’s investments in the operating businesses of Escondida in Chile, Grasberg in Indonesia, and
Phalaborwa in South Africa and for the initial development of new projects and acquisitions, including
La Granja in Peru and La Sampala in Indonesia.
Paul Hallam
BE (Hons), Mining, FAICD, FAusIMM, Non-Executive Director
Paul is a senior mining industry professional with more than 40 years of Australian and international
resource experience across a range of commodities including both surface and underground mining.
He has global operational and corporate experience from his executive roles including Director of
Operations with Fortescue Metals Group, Executive General Manager of Developments & Projects
with Newcrest Mining Limited, Director of Victorian Operations with Alcoa as well as Executive
General Manager of Base and Precious Metals at North Ltd. Since his retirement in 2011, Paul has
advised several Boards as a Non-Executive Director.
7
Greatland Gold plc
Company number: 5625107
Strategic report
Principal activities, strategy and business model
The principal activity of the Group is to explore for and develop precious and base metals with a focus
on gold and copper. The Board seeks to increase shareholder value by advancing the development of
current projects, the systematic exploration of its existing resource assets, and by acquiring exploration
and development opportunities in underexplored areas.
The Group’s strategy and business model is developed by the Chief Executive Office and is approved
by the Board. The Executive Directors who report to the Board are responsible for implementing the
strategy and managing the business with the management team.
The Group’s strategy is to develop the Havieron asset, advance projects that have potential for the
discovery of large mineralised systems (typically considered in excess of ten million ounces of gold)
and pursue opportunities for in-organic growth with a view to safely and sustainably creating wealth
for the benefit of all stakeholders.
Business development and performance
The financial year ended 30 June 2021 was a transformational period for the Company. During this
period Greatland successfully advanced development and exploration across its portfolio of project
assets with significant milestones achieved at the Group’s flagship asset, the world-class Havieron gold-
copper deposit in the Paterson region of Western Australia.
After the granting of a mining licence at Havieron (M45/4701) on 9 Oct 2020, Greatland entered into
a Joint Venture with Newcrest Mining Limited over this 12 block area for the continued development
and expansion of this asset.
Infill and step out drilling during the year has continued to return excellent results demonstrating
continuity of high-grade mineralisation at Havieron with expansion of the mineralisation in the North
West Crescent and Northern Breccia, Eastern Breccia, South East Crest and Breccia areas. This
resulted in a maiden resource of 4.2m oz Au eq announced on 10 Dec 2020.
In Feb 2021, construction activities commenced at Havieron with the quick completion of the box cut
and portal to enable the start of the decline in May 2021.
Subsequent to year end, a Pre-Feasibility study was completed and announced on 12 Oct 2021 which
outlined the pathway to achieve commercial production within two to three years from commencement
of an exploration decline, subject to a positive decision to mine.
In addition to the Havieron project, the Group also entered into a JV with Newcrest on two other
Paterson licences, Black Hills and Paterson Range East, known as the Juri JV, which sees the Group
operate exploration on the licences over the next two years. Newcrest earned a 25% interest on both
areas on signing with a right to earn up to 75% interest by spending up to A$20m as part of a two-
stage farm-in over five years, including a A$3m minimum commitment for Stage 1.
The Group’s financial position was further strengthened during the year by a loan agreement with
Newcrest where the Group have access to a loan facility totalling US$50million for early works and
growth drilling at Havieron from the start of the joint venture and up to the Feasibility study. A further
£4.4m on the exercise of warrants and options was received by the Group throughout the year. The
Group’s cash deposits stood at £6,212,057 at 30 June 2021 (compared to £6,022,745 at 30 June 2020).
These funds will be used to accelerate exploration across our key exploration projects, particularly in
the Paterson region.
8
Greatland Gold plc
Company number: 5625107
Strategic report, continued
Business development and performance (continued)
During the year, a retrospective adjustment has been made to the carrying values to reflect a change in
accounting policy of exploration and evaluation expenditure.
Previously costs associated with an exploration activity were capitalised if, in management’s opinion,
the results from that activity led to a material increase in the market value of the exploration asset.
Under the new policy exploration and evaluation expenditure where the commercial viability of
extracting the mineral resource has not yet been established will be expensed when incurred. Once
management believe the commercial viability of extracting the mineral resource are demonstrable,
which is considered to be following a pre-feasability study or similar, the Group will capitalise any
further evaluation costs incurred.
This has resulted in costs associated with the Havieron being capitalised from 1 July 2020, with all prior
year exploration and evaluation expenditure expensed when incurred on the basis the commercial
viability of extracting the mineral resource was not yet established. The Group transferred £17,091,622
of capitalised exploration costs associated with the Havieron project from intangible assets to mine
development during the year following the commencement of the construction of the box cut and the
decline during the year. . Note 1.19 within the financial statements provides further details regarding
the change in accounting policy.
Review of key developments by project
Paterson project (Western Australia), one granted mining licence (Havieron) jointly owned by
Newcrest Mining who have a 60% stake. Three granted exploration licences; two (Black Hills, Paterson
Range East) 75% owned in JV with Newcrest who own the remaining 25%, one (Scallywag) 100%
owned, exploration licence applications (Rudall, Canning) 100% owned. Subsequent to year end,
ownership in two exploration licences (Black Hills and Paterson Range East) moved to 49% owned in
JV with Newcrest. Acquisition of licence areas from Province Resources in September 2021 added
two new licences, Pascalle and Taunton and two licence applications in the Paterson South area.
The Paterson project is located in the Paterson region of northern Western Australia. The licences
collectively cover more than 567 square kilometres of ground which is considered prospective for
intrusion related gold-copper systems and Telfer style gold deposits along with the Havieron gold-
copper resource.
During the 12 months to 30 June 2021, the Company together with JV partner Newcrest was granted
a mining licence M45/4701 Havieron (9 Oct 2020) under a 21 year term, which covers the 12 blocks
of the previous E45/4701 licence.
The company now retains 100% ownership of the remaining blocks of E45/4701 Scallywag. During
the 12 months to 30 June 2021 the Company applied for a further four exploration licences E45/5826
Canning, E45/5929 Salvation Well North, E45/5930 Salvation Well, E45/5931 Salvation Well South
East in the Canning area of the Paterson region.
Newcrest expanded the drill campaign at Havieron M45/4701 and continued with infill and step-out
drilling with very successful results. Newcrest released an Inferred Resource for a portion of the
Crescent Sulphide Zone and adjacent breccias, reporting a 4.2m oz Au equivalent resource.
Exploration work over the Scallywag licence E45/4701 consisted of airborne EM surveying, target
identification and drilling.
Exploration continued on the Black Hills licence E45/4512 and Paterson Range East E45/4928, with
the completion of airborne EM surveys and the identification of a series of targets that warrant drilling
in the FY 2022 exploration program.
All exploration costs, other than those related to the Havieron project, were expensed through the
statement of comprehensive income during the year on the basis the commercial viability of extracting
the mineral resource was not yet established.
9
Greatland Gold plc
Company number: 5625107
Strategic report, continued
Review of key developments by project, continued
Ernest Giles project (Western Australia), 100% owned
The Ernest Giles project is located in central Western Australia, covering an area of approximately
1950 square kilometres with around 180km of strike of rocks prospective for gold. The eastern Yilgarn
Craton is one of the most highly mineralised areas in Western Australia and is considered prospective
for large gold deposits.
During the period, Greatland carried out solid geology interpretation and litho-geochemical
interpretation of the 2017 and 2019 drilling, with lithogeochemistry used to identify significant
alteration and pathfinder patterns at the Meadows target area. The Company was also involved in
ongoing Native Title land access agreement negotiations.
A comprehensive review of all data for the Ernest Giles project was carried out later in the year. The
Board decided that Greatland should increase its land holdings in the region and applied for two
additional exploration licences, E38/3612 Mount Smith and E38/3613 Welstead contiguous to the
current live licences of Peterswald and Calanchini.
Panorama project (Western Australia), 100% owned
The Panorama project consists of three adjoining exploration licences, covering 157 square kilometres,
located in the Pilbara region of Western Australia, in an area that is considered to be highly prospective
for gold and cobalt.
During the period Greatland continued field exploration at Panorama with a 362 line km heliborne
electromagnetic and magnetic survey over part of the tenements. Processing and interpretation of data
is currently underway.
Bromus project (Western Australia), 100% owned
The Bromus project is located 25 kilometres south-west of Norseman in the southern Yilgarn region
of Western Australia. The Bromus project consists of two licences, covering 87 square kilometres of
under-explored greenstone and intrusive granites of the Archean Yilgarn Block at the southern end of
the Kalgoorlie-Norseman belt.
During the period, Greatland undertook a desktop prospectivity review aimed at collating work done
which resulted in resampling historic RC chip, soil sampling, and Minalyze analysis of historic diamond
drill core.
Firetower project (Tasmania), 100% owned
The Firetower project is located in central north Tasmania, Australia and covers an area of 62 square
kilometers. During the year the Company completed a review of the Firetower Project exploration
data, identifying structures potentially controlling the gold mineralisation, and potential down plunge
positions that warrant follow up drilling.
Warrentinna project (Tasmania), 100% owned
The Warrentinna project is located 60 kilometres north-east of Launceston in north-eastern Tasmania
and covers an area of 37 square kilometres with 15 kilometres of strike prospective for gold. During
the period Greatland undertook a review of the Warrentinna Project exploration data and rehabilitation
of old drill pads.
Further details regarding developments by project can be found on the Company’s website at:
www.greatlandgold.com
10
Greatland Gold plc
Company number: 5625107
Strategic report, continued
Main trends and factors likely to impact future business performance
The Board considers the following to be the key trends and factors that are likely to impact future
business performance:
• General commodity cycle - Commodity prices, base and precious metals and gold specifically,
have seen a marked improvement over the last year. The Board maintains a positive outlook
for commodity prices, and the gold price in particular.
• Project development – the Company’s partnership with a major mining company (Newcrest
Mining) on its flagship Havieron project has seen a rapid advancement of the project. The
pace of the development will be laid out by Newcrest Mining as lead partners with Greatland
closely involved in discussions. Specific business principles designed to maximise the
Company’s chances of long-term rewards from this project are highlighted in the following
section (“Principal risks and uncertainties”).
• Exploration results – Management’s ability to successfully execute Greatland’s exploration
strategy is a key factor in the future business performance of the Company. Specific business
principles designed to maximize the Company’s chances of long term success in this regard
are highlighted in the following section (“Principal risks and uncertainties”).
Principal risks and uncertainties
Management of the business and the execution of the Board’s strategy are subject to a number of key
risks and uncertainties:
• Mineral exploration – Inherent with mineral exploration is that there no guarantee that the
Company can identify a mineral resource that can be extracted economically. In order to
minimise this risk and to maximise the Company’s chance of long-term success, we are
committed to the following strategic business principles:
• The board regularly reviews our exploration and development programmes and allocates
capital in a manner that it believes will maximise risk-adjusted return on capital.
• We apply advanced exploration techniques to areas and regions that we believe are
relatively under-explored historically.
• Exploration work in conducted on a systematic basis. More specifically, exploration work
is carried out in a phased, results-based fashion and leverages a wide range of exploration
methods including modern geochemical and geophysical techniques and various drilling
methods.
• We focus our activities on jurisdictions that we believe represent low political and
operational risk. Moreover, we strongly prefer to operate in jurisdictions where our team
has considerable on the ground experience. At the present time, all of the Company’s
projects are in Australia, a country with established mining codes, stable government,
skilled labour force, excellent infrastructure and a well established mining industry.
• Commodity price risk – The principal commodities that are the focus on our exploration and
development efforts (precious metals and base metals specifically gold and copper) are subject
to highly cyclical patterns in global demand and supply, and consequently, the price of those
commodities can be highly volatile.
11
Greatland Gold plc
Company number: 5625107
Strategic report, continued
Principal risks and uncertainties, continued
• Recruiting and retaining highly skilled directors and employees – the Company’s ability to
execute its strategy is highly dependent on the skills and abilities of its people. We undertake
ongoing initiatives to foster good staff engagement and ensure that remuneration packages are
competitive in the market.
• Occupational health and safety – every Director and employee of the Company is committed
to promoting and maintaining a safe workplace environment, including adopting COVID safe
work practices. The Company regularly reviews occupational health and safety policies and
compliance with those policies. The Company also engages with external occupational health
and safety expert consultants to ensure that policies and procedures are appropriate as the
Company expands its activity levels.
• COVID-19 - The COVID-19 Coronavirus pandemic has caused a severe adverse effect on
the business environment on a global scale. The Group may be affected by disruptions to its
operations, particularly for the foreseeable future in light of government responses to the
spread of COVID-19 or other potential pandemics. The Board is aware of the various risks
that the pandemic presents that include but are not limited to financial, operational, staff and
community health and safety, logistical challenges and government regulation. At present the
Group believes that there should be no significant material disruption to its operations in the
near term, but the Board continues to monitor these risks and the Group’s business continuity
plans.
• Havieron Joint Venture - The potential future development of a mine at the Havieron Joint
Venture depends upon a number of factors, including but not limited to, results from
geotechnical, metallurgical and environmental studies, the grant of necessary permits and other
regulatory approvals and the ability to secure finance.
Directors’ statement under section 172 (1) of the Companies Act 2006
Section 172 (1) of the Companies Act obliges the Directors to promote the success of the Company
for the benefit of the Company’s members as a whole. This section specifies that the Directors must
act in good faith when promoting the success of the Company and in doing so have regard (amongst
other things) to:
1.
2.
3.
4.
5.
6.
the likely consequences of any decision in the long term,
the interests of the Company’s employees,
the need to foster the Company’s business relationship with suppliers, customers and others,
the impact of the Company’s operations on the community and environment,
the desirability of the Company maintaining a reputation for high standards of business
conduct, and
the need to act fairly as between members of the Company.
The application of the Section 172 (1) requirements can be demonstrated in relation to some of the
key decisions made during the financial year, including:
• entering into new debt funding to ensure the Group has adequate resources to finance
Greatland’s share of the Havieron joint venture during mine development up until the
Feasibility study,
• executing a series of agreements to provide a formal framework for the joint venture
arrangement and to facilitate the acceleration of early works and further future development
and exploration activities at Havieron,
12
Greatland Gold plc
Company number: 5625107
Strategic report, continued
Directors’ statement under section 172 (1) of the Companies Act 2006, continued
• entered into a farm-in and joint venture agreement to accelerate exploration at Greatland's
Black Hills and Paterson Range East licences without the need for the Company to self fund
this activity,
• committed to ongoing exploration campaigns and approved associated budgets that enabled
the Company to conduct exploration across its projects,
• worked with joint venture partner to make decisions around the development of Havieron
including applying for the necessary regulatory approvals to commence early works activities
for a box cut and exploration decline and subsequent to year end the delivery of a pre-feasibility
study,
• appointment of an additional corporate broker to expand the reach of potential investors in
as part of equity investment activities, and;
• expanding the organisational capability through hiring experienced personnel and establishing
a technical advisory committee to enhance the skills and experience required for the Company
as it progresses from an explorer, through development and into production
Principles 2 and 3 of the Corporate Governance Statement on pages 22-23 provides further evidence
for how Section 172 (1) has been applied to strategic issues, risks or opportunities across key
stakeholder groups.
The Directors believe they have acted in the way they consider most likely to promote the success of
the Company for the benefit of its members as a whole, as required by Section 172 (1) of the Companies
Act 2006.
Greatland has chosen to adhere to the Quoted Company Alliance’s (“QCA”) Corporate Governance
Code for Small and Mid-Size Quoted Companies (revised in April 2018 to meet the new requirements
of AIM Rule 26). At this time, the Board believes that it is compliant with all ten Principles of the QCA
Code. More information can be found on pages 21-27.
By order of the Board
Shaun Day
Chief Executive Officer
11 November 2021
13
Greatland Gold plc
Company number: 5625107
Directors’ report
The Directors present their fourteenth annual report on the affairs of the Group and parent Company,
together with the Group financial statements for the year ended 30 June 2021.
Fundraising
The Group raised £4,372,588 net of costs during the year (2020: £7,761,396).
Results and dividends
The Group’s results are described in the Group statement of comprehensive income on page 36. The
audited financial statements for the year ended 30 June 2021 are set out on pages 36 to 70.
The Group has incurred a loss for the year of £5,519,648 (2020: £5,144,995).
During the year a retrospective adjustment has been made to the carrying value of exploration assets
to reflect a change in accounting policy of exploration and evaluation expenditure. Previously costs
associated with an exploration activity were capitalised if, in management’s opinion, the results from
that activity led to a material increase in the market value of the exploration asset.
Under the new policy for exploration and evaluation expenditure incurred on licenses where the
commercial viability of extracting the mineral resource has not yet been established will be generally
expensed when incurred, except for any acquisition costs which will be capitalised. Once management
believe the commercial viability of extracting the mineral resource are demonstrable being the
completion of a Feasibility study or similar (at which point, the Company considers it probable that
economic benefits will be realised), the Company will capitalise any further evaluation costs incurred.
The recoverability of the exploration and evaluation assets is dependent on the successful development
and commercial exploration, or alternatively, sale of the respective area of interest. Exploration and
evaluation and development assets are assessed for impairment if insufficient data exists to determine
commercial viability or other facts and circumstances suggest that the carrying amount exceeds the
recoverable amount.
This has resulted in costs associated with the Havieron being capitalised from 1 July 2020, with all prior
year exploration and evaluation expenditure expensed when incurred on the basis the commercial
viability of extracting the mineral resource was not yet established. The Group transferred £17,091,622
of capitalised exploration costs associated with the Havieron project from intangible assets to mine
development during the year following commencement of the construction of the box cut and the
decline during the year.
There were no impairments to carrying values recognised during the 2021 financial year.
The Directors do not recommend the payment of a dividend (2020: Nil).
Risk Management
The Board considers risk assessment to be important in achieving its strategic objectives. There is a
process of evaluation of performance targets through regular reviews by senior management to
forecasts. Project milestones and timelines are regularly reviewed.
A risk register is maintained by the Company that identifies key risks in areas including corporate
strategy, financial, staff, occupational health and safety, environmental and native title relations. All
members of the Board are provided with a copy of the register. The register is reviewed periodically
and is updated as and when necessary, with all employees and directors being responsible for
identifying, managing and mitigating risks. For example, managing occupational health and safety risk
is one of the key focuses of all directors and employees. Staff are required to immediately report any
occupational health and safety incidents and regular training is undertaken to ensure compliance with
health and safety policies.
14
Greatland Gold plc
Company number: 5625107
Directors’ report, continued
General and economic risks
•
•
•
•
•
•
•
global economic market conditions and performance of major economies.
movements in the equity and share markets in the United Kingdom and throughout the world;
weakness in global equity and share markets, in particular, in the United Kingdom, reliance on
central bank stimulus and adverse changes in market sentiment towards the resource industry;
currency exchange rate fluctuations and, in particular, the relative prices of the Australian
Dollar, and the UK Pound;
exposure to interest rate fluctuations;
adverse changes in factors affecting the success of exploration and development operations,
such as increases in expenses, changes in government policy and further regulation of the
industry; unforeseen major failure, breakdowns or repairs required to key items of plant and
equipment resulting in significant delays, notwithstanding regular programmes of repair,
maintenance and upkeep; and variations in grades and unforeseen adverse geological factors
or prolonged weather conditions; and
impact of COVID-19 Coronavirus pandemic, rates of vaccination rollout supply chain and
government restrictions on the global economic environment
Funding risk
The Group or the companies in which it has invested may not be able to raise, either by debt or further
equity, sufficient funds to enable completion of planned mine development, exploration, investment
and/or development projects.
Commodity risk
Commodities are subject to high levels of volatility in price and demand. The price of commodities
depends on a wide range of factors, most of which are outside the control of the Group. Mining,
processing and transportation costs also depend on many factors, including commodity prices, capital
and operating costs in relation to any operational site.
Exploration and development risks
•
Exploration and development activity is subject to numerous risks, including failure to achieve
estimated mineral resource, recovery and production rates and capital and operating costs.
•
•
•
•
•
Success in identifying economically recoverable reserves can never be guaranteed. The Group
also cannot guarantee that the companies in which it has invested will be able to obtain the
necessary permits and approvals required for development of their projects.
Some of the states within Australia have native title laws which could affect exploration and
development activities. The companies in which the Group has an interest may be required to
undertake clean-up programmes on any contamination from their operations or to participate
in site rehabilitation programmes which may vary from state to state. The Group’s policy is to
follow all applicable laws and regulations and the Group is not currently aware of any material
issues in this regard.
Timely approval of mining permits and operating plans through the respective regulatory
agencies cannot be guaranteed.
Availability of skilled workers is an ongoing challenge.
Geology is always a potential risk in mining activities.
15
Greatland Gold plc
Company number: 5625107
Directors’ report, continued
Havieron Joint Venture
The potential future development of a mine at the Havieron Joint Venture depends upon a number of
factors, including but not limited to, results from geotechnical, metallurgical and environmental studies,
the grant of necessary permits and other regulatory approvals and the ability to secure finance.
The Havieron Joint Venture is accounted for as a joint operation, whereby the parties of the
arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.
The Group recognises its direct right to the jointly held assets, liabilities, revenues and expenses as
described in note 1.21.
Market risk
The Group has an overseas subsidiary in Australia whose expenses are denominated in Australian
Dollars. Market price risk is inherent in the Group’s activities and is accepted as such.
The ability of the Group (and the companies in which it invests) to continue to secure sufficient and
profitable sales contracts to support its operations is a key business risk.
Key performance indicators
Given the straightforward nature of the Group’s activities, the Company’s directors are of the opinion
that analysis using key performance indicators is not necessary for an understanding of the
development, performance or position of the business at the present time.
Directors
The Directors who served during the year are as follows:
Alex Borrelli
Shaun Day (appointed 15 December 2020)
Callum Baxter (resigned 31 August 2021)
Clive Latcham
Gervaise Heddle (resigned 12 March 2021)
Subsequent to year end, Paul Hallam was appointed as a director on 1 September 2021
Directors Interest
The Directors holdings of shares and options in the Company as at 30 June 2021 are as follows:
Alex Borrelli
13,103,372 shares,
51,500,000 options
Shaun Day
5,000,000 options
Callum Baxter 113,572,951 shares,
18,000,000 options
Clive Latcham 11,750,000 options
Share capital
Information relating to shares issued during the period is given in Note 19 to the accounts.
Charitable and political donations
During the period there were no charitable or political contributions.
Payment of suppliers
The Group’s policy is to settle terms of payment with suppliers when agreeing terms of business, to
ensure that suppliers are aware of the terms of payment and to abide by them. It is usual for suppliers
to be paid within 30 days of receipt of invoice. At 30 June 2021 the Group’s creditors were equivalent
to approximately 30 days’ costs.
16
Greatland Gold plc
Company number: 5625107
Directors’ report, continued
Substantial shareholdings
On 30 June 2021 and 29 October 2021, the following were registered as being interested in 3% or more
of the Company’s ordinary share capital:
29 October 2021
30 June 2021
Ordinary shares
of £0.001 each
Percentage of
issued share
capital
Ordinary shares
of £0.001 each
Percentage of
issued share
capital
Hargreaves Lansdown (Nominees) Limited
1,091,492,967
27.53% 1,046,640,652
Interactive Investor Services Nominees
Limited
HSDL Nominees Limited
579,486,022
14.62%
570,153,601
355,092,636
8.96%
348,499,961
State Street Nominees Limited
324,327,430
8.18%
323,763,025
Barclays Direct Investing Nominees Limited
216,190,532
5.45%
214,507,822
Vidacos Nominees Limited
210,635,783
5.31%
201,598,364
JIM Nominees Limited
208,280,194
5.25%
209,003,727
Lawshire Nominees Limited
196,798,578
4.96%
187,104,686
Rock (Nominees) Limited
120,860,288
3.05%
144,396,276
26.52%
14.44%
8.83%
8.20%
5.43%
5.11%
5.29%
4.74%
3.66%
Auditors
The Directors will place a resolution before the annual general meeting to reappoint PKF Littlejohn
LLP as auditors for the coming year.
PKF Littlejohn LLP has signified its willingness to continue in office as auditor.
Directors’ remuneration
The remuneration of the directors paid during the year was fixed by the remuneration
committee consisting of Alex Borrelli and Clive Latcham. This has been achieved acknowledging the
need to maximise the effectiveness of the Company’s limited resources during the year.
As announced by the Company on 5 May 2021, 5,000,000 share options were issued to Shaun
Day Chief Executive Officer. As set out in Note 20, under the Company’s employee share option
plan there were 103.25 million unexercised options in issue (2020: 204.5 million).
During the year the Directors were awarded performance bonuses totalling £296,345 (see Note 8)
(2020: £460,242). This amount represents an award to reflect the outstanding progress made by the
Company during the year, most notably excellent exploration results which, in the Board’s view, have
significantly increased the value of the Company’s interest in the Havieron Joint Venture in
the Paterson region.
Events after the reporting period
On 8 July 2021, the Company announced the appointment of Christopher Toon as Chief
Financial Officer. Effective 1 September 2021, the Company announced changes to the Board
with Paul Hallam joining as a Non-Executive Director and Callum Baxter stepping down from his role
as Chief Technical Officer and Executive Director. On 12 October 2021, the Company announced
the release of a Pre-Feasibility Study for Havieron with its Joint Venture partner. There are no
significant post balance sheet events to disclose for the year ended 30 June 2021, other than those set
out in Note 24.
17
Greatland Gold plc
Company number: 5625107
Directors’ report, continued
Corporate Governance
A corporate governance statement follows on page 21.
Control Procedures
The Board has approved financial budgets and cash forecasts; in addition, it has implemented
procedures to ensure compliance with accounting standards and effective reporting.
Environmental Responsibility
The Company is aware of the potential impact that its subsidiary companies may have on the
environment. The Company ensures that it and its subsidiaries at a minimum comply with the local
regulatory requirements and the revised Equator Principles with regard to the environment.
Cultural awareness
The Company continues to engage with the traditional land owners to understand and respect cultural
heritage as a necessary part in obtaining clearances to access projects across its Australian operations
and operate within the appropriate protocols.
COVID-19
Due to the ongoing COVID-19 pandemic and minimal impact in the state of Western Australia, the
business experienced minor operational impact to exploration activities during the year. All projects
have followed government requirements and health guidelines while focusing on protecting the well-
being of local and indigenous communities. The Company is committed to a safe working environment
and has implemented monitoring and preventative measures to mitigate the impact of COVID-19 on
its workforce and stakeholders to develop a COVID safe environment that adheres to health and
Government advice and restrictions.
Health and Safety
The Group’s aim is to achieve and maintain a high standard of workplace safety. In order to achieve
this objective, the Group provides training and support to employees and sets demanding standards
for workplace safety.
Employment Policies
The Group is committed to promoting policies which ensure that high calibre employees are attracted,
retained and motivated, to ensure the ongoing success for the business. Employees and those who seek
to work within the Group are treated equally regardless of gender, marital status, creed, colour, race or
ethnic origin.
Going Concern
The consolidated entity has incurred a loss before tax of £5,519,648 for the year ended 30 June 2021
and had a net cash outflow of £16,266,226 from operating and investing activities. At that date there
were net current assets of £2,930,958. The loss resulted almost entirely from exploration costs and
associated administrative related costs.
The Group’s cash flow forecast for the period ending 30 November 2022 highlights adequate funding
of projected expenditure to last into 2022 with the Group having access to a loan facility for its share
of Havieron Joint Venture expenditure up to US$50 million and being able to significantly reduce
expenditure on its own exploration programs if it wishes to do so. The Group also has the ability to
raise capital for expansion purposes, if required and the Group has demonstrated a consistent ability
to do so in the past, as well the potential to debt fund its share of the Havieron development. Albeit
the Board considers that, in a worst case scenario, the Group can continue without a capital raising.
Given the Group’s current positive cash position, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for the foreseeable future.
18
Greatland Gold plc
Company number: 5625107
Directors’ report, continued
Going Concern, continued
For these reasons, they continue to adopt the going concern basis in preparing the annual report and
accounts.
At present the Group believes that there should be no significant material disruption to its operations
from COVID-19 in the near term, but the Board continues to monitor these risks and the Group’s
business continuity plans.
Having prepared forecasts based on current resources, assessing methods of obtaining additional
finance and assessing the possible impact of COVID-19, the Directors believe the Group has sufficient
resources to meet its obligations for a period of 12 months from the date of approval of these financial
statements. Taking these matters into consideration, the Directors continue to adopt the going concern
basis of accounting in the preparation of the financial statements. The financial statements do not
include the adjustments that would be required should the going concern basis of preparation no longer
be appropriate.
By order of the Board
Shaun Day
Chief Executive Officer
11 November 2021
19
Greatland Gold plc
Company number: 5625107
Statement of directors' responsibilities
Directors' responsibilities for the financial statements
The Directors are responsible for preparing the Directors’ Report and the financial statements in
accordance with applicable law and regulations.
Company law in the United Kingdom requires the directors to prepare Group and Company financial
statements for each financial year which give a true and fair view of the state of affairs of the Company
and the Group and of the profit or loss of the Group for that period. In addition, the AIM rules of
the London Stock Exchange require that the Group financial statements be prepared in accordance
with international accounting standards in accordance with the requirements of the Companies Act
2006; the Company financial statements are prepared on the same basis.
In preparing the Group and Company financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
•
• make judgements and estimates that are reasonable and prudent;
•
state whether applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the group and company will continue in business.
So far as each director is aware, there is no relevant audit information of which the Company’s auditors
are unaware, and the directors have taken all the steps that they ought to have taken as directors in
order to make themselves aware of any relevant audit information and to establish that the Company’s
auditors are aware of that information.
The directors are responsible for keeping adequate accounting records that are sufficient to show and
explain the Company’s transactions and disclose with reasonable accuracy at any time the financial
position of the Group and Company and enable them to ensure that the financial statements comply
with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and
company and for taking reasonable steps for the prevention and detection of fraud and other
irregularities. They are also responsible for ensuring that the annual report includes information
required by the AIM market of the London Stock Exchange.
The maintenance and integrity of the Company’s website is the responsibility of the directors: the work
carried out by the auditors does not involve consideration of these matters and, accordingly, the
auditors accept no responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of the financial
statements may differ from legislation in other jurisdictions.
20
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement
All members of the board of Greatland Gold plc are committed to the principles of good corporate governance.
We believe strongly in the value and importance of strong corporate governance and in our accountability to all
of Greatland’s stakeholders, including shareholders, employees, contractors and suppliers and native title
communities. We recognise the importance of promoting and maintaining a strong occupational health and safety
culture and minimising the impact of our activities on local communities and the environment.
Changes to the AIM rules on 30 March 2018 required AIM companies to apply a recognised corporate
governance code from 28 September 2018. Greatland has chosen to adhere to the Quoted Company Alliance’s
(“QCA”) Corporate Governance Code for Small and Mid-Size Quoted Companies (revised in April 2018 to meet
the new requirements of AIM Rule 26).
The QCA Code is constructed around ten broad principles and a set of disclosures. The QCA has stated what it
considers to be appropriate arrangements for growing companies and asks companies to provide an explanation
about how they are meeting the principles through the prescribed disclosures. We have considered how we apply
each principle to the extent that the board judges these to be appropriate in the circumstances, and below we
provide an explanation of the approach taken in relation to each.
At this time, the board believes that it is compliant with all ten Principles of the QCA Code.
The following paragraphs set out Greatland Gold plc’s compliance with the 10 principles of the QCA
Code.
Principle 1: Establish a strategy and business model which promotes long-term value for shareholders
The principal activity of the Company is to explore for and develop natural resources, with a focus on precious
and base metals. The Board seeks to increase shareholder value by the systematic evaluation of its existing
resource assets, and by acquiring exploration and development projects in underexplored areas.
The Company’s strategy and business model is developed by the CEO and is approved by the Board. The
Executive Directors who report to the Board are responsible for implementing the strategy and managing the
business.
The Company’s primary strategy is to develop the Havieron asset, advance projects that have potential for the
discovery of large mineralised systems (typically considered in excess of ten million ounces of gold) and pursue
opportunities for in-organic growth with a view to monetising at least one or more of those projects, whether
through an outright sale, joint venture, or spin-out via initial public offering, within a three to five year period.
The key challenges we face include:
• Mineral exploration - Mineral exploration is a high-risk activity and there can be no guarantee that the
Company can identify a mineral resource that can be extracted economically. In order to minimise this risk
and to maximise the Company’s chances of long-term success, we are committed to the following strategic
business principles:
○ The board regularly reviews our exploration and development programmes and allocates capital in a
manner that it believes will maximise risk-adjusted return on capital;
○ We focus our activities on jurisdictions that we believe represent low political and operational risk.
Moreover, we strongly prefer to operate in jurisdictions where our team has considerable on the ground
experience. At the present time, all of the Company’s projects are in Australia, a country with established
mining codes, stable government, skilled labour force, excellent infrastructure, and a well established
mining industry;
○ We apply advanced exploration techniques to areas and regions that we believe are relatively under-
explored historically;
○ Exploration work is conducted on a systematic basis. More specifically, exploration work is carried out
in a phased, results-based fashion and leverages a wide range of exploration methods including modern
geochemical and geophysical techniques and various drilling methods.
○ Commodity price risk – The principal commodities that are the focus of our exploration and
development efforts (precious metals and base metals) are subject to highly cyclical patterns in global
demand and supply, and consequently, the price of those commodities is highly volatile.
○ Recruiting and retaining highly skilled directors and employees – the Company’s ability to execute its
strategy is highly dependent on the skills and abilities of its people. We undertake ongoing initiatives to
foster good staff engagement and ensure that remuneration packages are competitive in the market.
21
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
o Occupational health and safety – every Director and employee of the Company is committed to
promoting and maintaining a safe workplace environment. The Company regularly reviews occupational
health and safety policies and compliance with those policies. The Company also engages with external
occupational health and safety expert consultants to ensure that policies and procedures are appropriate
as the Company expands its activity levels.
o COVID-19 – the impact of the COVID-19 pandemic has affected many aspects of society and has
significantly changed the global economic environment. The challenges presented by COVID-19
remain ongoing. The Company is committed to a safe working environment and has implemented
monitoring and preventative measures to mitigate the impact of COVID-19 on its workforce and
stakeholders.
Principle 2: Seek to understand and meet shareholder needs and expectations
We have made significant efforts to ensure regular and effective engagement with our broad base of shareholders.
In addition to our Annual General Meeting, which is one of our primary forums to present to and meet with
investors, we engage in a wide range of activities designed to ensure that investors are regularly updated on the
progress of the Company and we attend and participate in investor events that provide investors with the
opportunity to provide us with feedback and suggestions.
During the last 12 months, the following activities were conducted in order to engage with shareholders and to
ensure that the members of the Board maintained and further developed a strong understanding of the needs
and expectations of shareholders:
Description of
Activity
Frequency
Participants
Comments
AGM
Annually
All Directors
CEO interviews
Monthly
Investor
Presentations
Monthly
CEO
CEO
Investor Shows
and Industry
Conferences
Social media
engagement
Quarterly
CEO
Weekly
Website
As required
CEO conducts regular interviews with
various digital media platforms
Company presents at various investor
roadshows, virtual investor events and
provides Company updates to investors
with Q&A for shareholders to ask
questions
The Company attends and presents at
various investor shows
The Company provides regular updates on
social media platforms
The Company provides operational,
corporate and news updates via its website
The Company is committed to communicating openly with its shareholders to ensure that its strategy and
performance are clearly understood. All Company announcements and the Company’s most recent investor
presentation are available to shareholders, investors and the public on our website.
Private shareholders: The AGM is one of the principal forums for dialogue with private shareholders. Last year,
due to COVID-19 restrictions, the AGM was held virtually with members of the board and the committees in
attendance at the AGM to answer questions raised by shareholders over video conference. The Notice of this
year AGM is sent to shareholders at least 21 days before the meeting. Shareholders vote on each resolution, and
voting can also be counted by way of a poll. For each resolution we announce the number of votes received for,
against and withheld. The CEO also interacts with private shareholders through regular Q&A forums. The
Company also maintains a dedicated email address which investors can use to contact the Company which is
prominently displayed on its website together with the Company’s address and phone number.
Institutional shareholders: The directors actively seek to build a mutual understanding of the objectives of
institutional shareholders. We communicate with institutional investors frequently through a combination of
formal meetings, participation at investor conferences, virtual meetings and informal briefings with management.
The majority of meetings with existing and potential investors are arranged by the Company’s corporate brokers.
22
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
Principle 3: Recognise wider stakeholder and social responsibilities and their implications for long-term
success
The Board recognises its responsibility under UK corporate law to promote the success of the Company for the
benefit of its members as a whole. The Board also understands that it has a responsibility towards employees,
partners, suppliers and contractors and the local communities in which it operates.
Stakeholder
Shareholders
Suppliers and Contractors
Staff and Employees
Native Title Communities
Reason for Engagement
How we engage
Shareholders are the owners of the
Company and the board’s primary
mission is to increase shareholder
value
field
The Company engages with external
suppliers to conduct the majority of
its
activities
exploration
(including drilling and geophysical
surveys). Using quality suppliers
enables the Company to meet the
high standards of performance that
we expect of ourselves and our
vendor partners.
Recruiting and retaining highly skilled
and motivated professions is one of
the key drivers of our success. The
Board and management recognises
the importance of establishing an
experienced team with a focus on
creating
and
alignment in areas of health and
safety, compliance and business
integrity.
shareholder value
The Board
and management
recognises the important heritage of
the traditional owners of the land and
its ethical and legal responsibility to
work together to maintain respectful
and open relationships with the
Traditional Owners
and
communities on, the Land.
of,
As described in previous section
(Principle 2)
We work to ensure that all members
of staff engage in a respectful and
professional manner with suppliers.
We operate systems to ensure that
supplier invoices are processed and
paid promptly.
to
addition
staff meetings
employees, we
In
regular
communication between Directors
conduct
and
fortnightly
to
promote two-way communication
between employees and senior
management. The CEO and CFO
report to the Board on a monthly
basis.
that
The Company ensures
it
regularly engages with native title
communities and routinely engages
with external expert consultants.
Examples of engagement with
Native Title communities are:
• Undertaking on ground surveys
with Traditional Owners to
identify and preserve heritage
and,
• Obtaining agreements outlining
processes for identifying and
preserving cultural heritage
Principle 4: Embed effective risk management, considering both opportunities and threats, throughout
the organisation
The CEO maintains a risk register for the Company that identifies key risks in the areas of corporate strategy,
financial, staff, occupational health and safety, environmental and native title relations. All members of the board
are provided with a copy of the register. The register is reviewed periodically and is updated as and when
necessary.
Within the scope of the annual audit, specific financial risks are evaluated in detail, including in relation to foreign
currency, liquidity and credit.
Managing occupational health and safety risk is one of the key focuses of all directors and employees. Staff are
required to immediately report any occupational health and safety incidents and regular training is undertaken to
ensure compliance with health and safety policies.
23
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
Principle 5: Maintain the board as a well-functioning, balanced team led by the chair
The Board sets the Company’s strategy and ensures that necessary resources are in place in order for the Company
to meet its objectives. All members of the Board take collective responsibility for the performance of the
Company and all decisions are taken in the interests of the Company.
Whilst the Board has delegated the normal operational management of the Company to the Executive Directors
and other senior management, there are detailed specific matters subject to decision by the Board of Directors.
These include decisions to commit to major exploration campaigns and approval of associated exploration
budgets, acquisitions and disposals, joint ventures and other investments of a capital nature. The Non-executive
Directors have a particular responsibility to challenge constructively the strategy proposed by the Executive
Directors, to scrutinise and challenge performance, and to ensure appropriate remuneration and that succession
planning arrangements are in place in relation to Executive Directors and other senior members of the
management team.
The members of the Board have a collective responsibility and legal obligation to promote the interests of the
Company and are collectively responsible for defining corporate governance arrangements. Ultimate
responsibility for the quality of, and approach to, corporate governance lies with the Chair of the board.
The Board consists of four directors with one executive director (Shaun Day, Chief Executive Officer) and three
independent non-executive directors (Alex Borrelli, Non-Executive Chairman, Clive Latcham, Non-Executive
Director and Paul Hallam, Non-Executive Director) The Board is supported by two committees: Audit and Risk
committee and a Remuneration committee. The Board does not consider that it is of a size at present to require
a separate nominations committee, and all members of the Board are involved in the appointment of new
Directors.
All Directors are required to attend 8-12 Board and Board committee meetings per year and to be available at
other times as required for virtual or tele-conference meetings with the executive team and investors. Board
meetings are led by the Chair and follow an agenda that is circulated prior to the meeting. Every Board and
committee meeting are minuted and every Director is aware of the right to have any concerns minuted and to
seek independent advice at the Company’s expense where appropriate.
Principle 6: Ensure that between them the directors have the necessary up-to-date experience, skills and
capabilities
All four members of the Board bring relevant experience in mining and resources, and all have many years
experience in public markets. The Board believes that its blend of relevant experience, skills and personal qualities
and capabilities is sufficient to enable it to successfully execute its strategy. Directors attend seminars and other
regulatory and trade events to ensure that their knowledge remains current.
Alex Borrelli, Independent Non-Executive Chairman
Term of office: Joined as Non-Executive Director on 18 April 2016. Appointed as Non-executive Chairman on
14 August 2016; Chair of the Remuneration Committee and Chair of the Audit and Risk Committee.
Background and suitability for the role: Alex is Chairman of Greatland Gold plc. Alex qualified as a Chartered
Accountant and has many years’ experience in investment banking encompassing flotations, takeovers, and
mergers and acquisitions for private and quoted companies. Alex is also a director of Bradda Head Lithium
Limited, Red Rock Resources plc and Tiger Royalties and Investments plc, all AIM-listed companies, in addition
to being a director of BWA Group plc listed on the AQSE market
Shaun Day, Chief Executive Officer, Executive Director
Term of office: Joined as Chief Executive Officer, Executive Director on 8 February 2021.
Background and suitability for the role: Shaun has over 20 years of experience in executive and financial positions
across mining and infrastructure, investment banking and international consulting firms. Shaun has considerable
Capital Markets experience with a track record of leading successful transactions including mergers and
acquisitions of publicly listed companies, farm-in agreements and raising capital. Prior to joining Greatland,
Shaun spent six years as CFO of Northern Star Resources Limited, an ASX100 company and a global-scale
Australian gold producer, where he oversaw the expansion of its market capitalisation from AU$700m to
AU$8bn. Prior to Northern Star, Shaun spent five years as CFO of top 50 SGX listed Sakari Resources Plc,
which operated multiple mines before its sale for over US$2bn.
24
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
Clive Latcham, Independent Non-Executive Director
Term of office: Joined as Non-Executive Director on 15 October 2018. Member of the Remuneration Committee
and Member of the Audit Committee.
Background and suitability for the role: Clive is a Non-Executive Director of Greatland Gold plc. Clive is a
chemical engineer and mineral economist with over thirty years’ experience in senior roles in the mining sector.
Clive joined Greatland from ERM - Environmental Resource Management, the world’s leading sustainability
consultancy group, where he is currently Senior External Advisor, and advisor to the Chairman and Chief
Executive Officer. Prior to his role at ERM, Clive worked as an independent advisor to private equity and mining
consultancy firms, and spent nine years in senior roles with Rio Tinto plc. During his time at Rio Tinto,
Clive spent four years as Copper Group Mining Executive, where he was responsible for managing Rio Tinto’s
investments in the operating businesses of Escondida in Chile, Grasberg in Indonesia, and Phalaborwa in South
Africa and for the initial development of new projects and acquisitions, including La Granja in Peru and
La Sampala in Indonesia.
Paul Hallam, Independent Non-Executive Director
Term of office: Joined as Non-Executive Director on 1 September 2021. Member of the Remuneration
Committee and Member of the Audit Committee.
Background and suitability for the role: Paul is a senior mining industry professional with more than 40 years of
Australian and international resource experience across a range of commodities including both surface and
underground mining. He has global operational and corporate experience from his executive roles including
Director of Operations with Fortescue Metals Group, Executive General Manager of Developments & Projects
with Newcrest Mining Limited, Director of Victorian Operations with Alcoa as well as Executive General
Manager of Base and Precious Metals at North Ltd. Since his retirement in 2011, Paul has advised several Boards
as a Non-Executive Director.
Principle 7: Evaluate board performance based on clear and relevant objectives, seeking continuous
improvement
A board evaluation process led by the Chairman took place in June 2021. All then current Directors began by
completing a questionnaire about the effectiveness of the board and a self-assessment of their own contributions
that was returned to the Chairman. The Chairman then reviewed this information and used it as the basis for an
individual discussion with each Director, followed by a collective discussion with the board.
The review considers effectiveness in a number of areas including general supervision and management, business
risks and opportunities, succession planning, communication (both internal and external), ethics and compliance,
corporate governance and individual contribution.
A number of refinements in working practices were identified as a result of this exercise and have since been
adopted.
Principle 8: Promote a corporate culture that is based on ethical values and behaviours
The board believes that the promotion of a corporate culture based on sound ethical values and behaviours is
essential to maximise shareholder value. Our core values serve as a common language that allows all members of
staff to work together as an effective team and it is these values and our shared long-term business vision and
strategy that we believe will drive growth in shareholder value over the long term.
We are committed to three core values:
1. Creating a safe, positive and inclusive workplace environment
2. Engaging all stakeholders and the broader community with respect, integrity and honesty
3. Fostering a high performance culture that values the contribution of all team members
Principle 9: Maintain governance structures and processes that are fit for purpose and support good
decision-making by the board
The Board provides strategic leadership for the Company and operates within the scope of a robust corporate
governance framework. Its purpose is to ensure the delivery of long-term shareholder value, which involves
setting the culture, values and practices that operate throughout the business, and defining the strategic goals that
the Company implements in its business plans. The board defines a series of matters reserved for its decision and
has approved terms of reference for its Audit and Remuneration Committees to which certain responsibilities
are delegated. The chair of each committee reports to the board on the activities of that committee.
For the financial year ended 30 June 2021, the Board met eleven times in relation to normal operational matters.
25
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
Committees and Governance Structures
The Audit and Risk Committee monitors the integrity of financial statements, oversees risk management and
control, monitors the effectiveness of the internal audit function and reviews external auditor independence. The
Audit Committee comprises Clive Latcham (chair), Alex Borrelli and Paul Hallam.
The Remuneration Committee sets and reviews the compensation of executive directors including the setting of
targets and performance frameworks for cash and share-based awards. The Remuneration Committee comprises
Paul Hallam (chair), Alex Borrelli and Clive Latcham.
The Executive Team, consisting of the Executive Directors, operates as a management committee, chaired by
the CEO, which reviews operational matters and performance of the business, and is responsible for significant
management decisions while delegating other operational matters to individual managers within the business.
The Chairman has overall responsibility for corporate governance and in promoting high standards throughout
the Company. He leads and chairs the Board, ensuring that committees are properly structured and operate with
appropriate terms of reference, ensures that performance of individual Directors, the board and its committees
are reviewed on a regular basis, leads in the development of strategy and setting objectives, and oversees
communication between the Company and its shareholders.
The CEO provides leadership and management of the Company, leads the development of objectives, strategies
and performance standards as agreed by the board, monitors, reviews and manages key risks and strategies with
the board, ensures that the assets of the Company are maintained and safeguarded, leads on investor relations
activities to ensure communications and the Company’s standing with shareholders and financial institutions is
maintained, and ensures that the board is aware of the views and opinions of employees on relevant matters.
The Executive Directors are responsible for implementing and delivering the strategy and operational decisions
agreed by the board, making operational and financial decisions required in the day-to-day operation of the
Company, providing executive leadership to managers, championing the Company’s core values and promoting
talent management.
The Independent Non-Executive Directors contribute independent thinking and judgement through the
application of external experience and knowledge, scrutinises the performance of management, provides
constructive challenge to the Executive Directors and ensures that the Company is operating within the
governance and risk framework approved by the board.
The Company Secretary is responsible for providing clear and timely information flow to the board and its
committees and supports the board on matters of corporate governance and risk.
The matters reserved for the board are:
• Setting long-term objectives and commercial strategy;
• Approving annual operating and capital expenditure budgets;
• Changing the share capital or corporate structure of the Company;
• Approving half year and full year results and reports;
• Approving dividend policy and the declaration of dividends;
• Approving major new exploration programmes, investments, disposals, and other capital projects;
• Approving resolutions to be put to general meetings of shareholders and the associated documents or circulars;
and
• Approving changes to the board structure.
The board has approved the adoption of the QCA Code as its governance framework against which this
statement has been prepared and will monitor the suitability of this Code on an annual basis and revise its
governance framework as appropriate as the Company evolves.
26
Greatland Gold plc
Company number: 5625107
Corporate Governance Statement, continued
Internal controls
The Directors acknowledge their responsibility for the Company’s systems of internal controls and for reviewing
their effectiveness. These internal controls are designed to safeguard the assets of the Company and to ensure
the reliability of financial information for both internal use and external publication. Whilst they are aware that
no system can provide absolute assurance against material misstatement or loss, in the light of increased activity
and further development of the Company, continuing reviews of internal controls will be undertaken to ensure
that they are adequate and effective.
Insurance
The Company maintains insurance in respect of its Directors and Officers against liabilities in relation to the
Company.
Treasury Policy
The Company finances its operations through equity and holds its cash as a liquid resource to fund the obligations
of the Company. Decisions regarding the management of these assets are approved by the Board.
Securities Trading
The Board has adopted a Share Dealing Code that applies to Directors, senior management and any employee
who is in possession of ‘inside information’. All such persons are prohibited from trading in the Company’s
securities if they are in possession of ‘inside information’. Subject to this condition and trading prohibitions
applying to certain periods, trading can occur provided the relevant individual has received the appropriate
prescribed clearance.
Principle 10: Communicate how the company is governed and is performing by maintaining a dialogue
with shareholders and other relevant stakeholders
The Board recognises that meaningful engagement with its shareholders is integral to the continued success of
the Company. Over the past 12 months, Executive Directors of the Board have sought to actively engage with
shareholders on a number of occasions, through meetings, presentations and investor shows (as described in
Principle 2).
Over the next 12 months, the Board expects to maintain a regular dialogue with investors that will provide
investors with updates on company performance and any changes to the corporate governance structures and/or
policies.
The Board keeps investors informed through updates on the Investor Relations section of the Company’s website
and through interviews on various media platforms.
By order of the board
Alex Borrelli
Chairman
11 November 2021
27
Greatland Gold plc
Company number: 5625107
Remuneration Committee Report
The Remuneration Committee sets and reviews the compensation of executive directors including the setting of
targets and performance frameworks and determining for such persons their total individual remuneration
packages, including, where appropriate, bonuses, incentive payments and share options or other share awards.
The remuneration of Non-executive Directors is a matter for the Chairman and the executive members of the
Board. No Director is involved in any decision as to their own remuneration.
Details on the activities of the Remuneration Committee during the year are contained in the Remuneration
Committee Report below. During the year ended 30 June 2021, and up to the signing of this report, the
Remuneration Committee comprised Alex Borrelli, who acts as Chairman, Clive Latcham and Paul Hallam.
As at 1 September 2021, Paul Hallam has joined as a member of the Remuneration Committee and has
replaced Alex Borrelli as Chair of the Committee effective from this date. The Remuneration Committee
formally met three times during year and all members attended the meetings.
Details of the Directors’ remuneration can be found in Note 8.
Dear Shareholder,
On behalf of the Board, I am pleased to present the Remuneration Committee Report for the year ended 30 June
2021. The Remuneration Committee is responsible for establishing and proposing to the Board a recommended
framework for the remuneration of board executive directors and designated senior executives and, pursuant to
the terms of the agreed framework, determining for such persons their total individual remuneration packages,
including, where appropriate, bonuses, incentive payments and share options or other share awards. The
Remuneration Committee is also responsible for ensuring the Company is compliant with all relevant consultant
and employment contracts and HMRC responsibilities.
Remuneration Committee Membership and Activities
The Remuneration Committee’s members during the year were Alex Borrelli, acting as Chair of the Committee,
and Clive Latcham. As at 1 September 2021, Paul Hallam has joined as a member of the Remuneration
Committee and has replaced myself as Chair of the Committee.
The Committee met three times during the year and its activities were as follows:
•
•
•
•
reviewed Executive Directors’ performance
reviewed Executive Director remuneration arrangements
reviewed change of control provisions for Executive Directors
reviewed developments in corporate governance and best practice
Remuneration Policy
The Company’s remuneration policy is based on the following broad principles:
•
•
•
•
•
to provide competitive remuneration packages to enable the Company to recruit, retain and motivate
individuals with the skills, capabilities and experience to achieve its objectives;
to align the interests of management with the interests of shareholders;
to ensure remuneration levels support the Company’s strategy;
to align pay with market conditions and the Company’s activities; and
to provide adequate succession planning.
Alex Borrelli
Paul Hallam
Chairman (up to 31 August 2021)
Chairman (appointed 1 September 2021)
11 November 2021
11 November 2021
28
Greatland Gold plc
Company number: 5625107
Audit and Risk Committee Report
The Audit and Risk Committee monitors the integrity of financial statements, oversees risk management and
control, monitors the effectiveness of the internal audit function and reviews external auditor independence. The
Audit and Risk Committee is appointed by the Board from amongst the non-executive directors.
The Audit and Risk Committee is authorised by the Board to investigate any activity within its terms of reference
and to obtain outside legal or other independent professional advice and to secure the attendance of outsiders
with relevant experience and expertise, if it considers this necessary.
Dear Shareholder,
On behalf of the Board, I am pleased to present the Audit Committee Report for the year ended 30 June 2021.
The Audit Committee is primarily responsible for providing oversight of the financial reporting process,
the audit process, the Company's system of internal controls and compliance with laws and regulations.
The main role and responsibilities of the Audit and Risk Committee are:
•
•
•
•
•
•
•
•
to review the company’s internal financial controls:
to monitor and review the effectiveness of the company’s internal and external audit arrangements;
to monitor and review the effectiveness of the company’s risk management systems (including without
limitation fraud risk);
to monitor the integrity of the financial statements of the company and any formal announcements
relating to the company’s financial performance, reviewing significant financial reporting judgements
contained in them;
to review and monitor the external auditor’s independence and objectivity and the effectiveness of the
audit process, taking into consideration relevant UK professional and regulatory requirements;
to make recommendations to the Board, for it to put to the shareholders for their approval in general
meeting, in relation to the appointment of the external auditor and to approve the remuneration and
terms of engagement of the external auditor;
to report to the Board, identifying any matters in respect of which it considers that action or
improvement is needed, and making recommendations as to the steps to be taken;
to consider the findings of internal investigations and management response.
Audit and Risk Committee Membership and Activities
During the year ended 30 June 2021 and up to the signing of this report, the Audit and Risk Committee comprised
Alex Borrelli, as Chairman, Clive Latcham and Paul Hallam (commenced 1 September 2021). The Audit and
Risk Committee formally met three times during year with Alex Borrelli and Clive Latcham in attendance during
the meetings.
The activities of the Audit and Risk Committee were as follows:
•
•
•
•
•
•
•
•
•
•
reviewed key accounting and audit judgements;
reviewed and consider whether the information provided was complete and appropriate based on its
own knowledge;
reviewed the external auditor issues that arose during the course of the audit;
reviewed the management letter in order to assess whether it is based on a good understanding of the
company’s business and establish whether recommendations have been acted upon and, if not, the
reasons why they have not been acted upon;
reviewed management’s responsiveness to the external auditor’s findings and recommendations;
reviewed whether the auditor met the agreed audit plan and understand the reasons for any changes;
obtained feedback about the conduct of the audit from key people involved;
reported to the Board on the effectiveness of the external audit process;
reviewed the appointment or reappointment of the external auditor, and information on the length of
tenure of the current audit firm;
reviewed the whistleblowing policies and procedures to prevent bribery and corruption.
Alex Borrelli
Clive Latcham
Chairman (up to 31 August 2021)
Chairman (appointed 1 September 2021)
11 November 2021
11 November 2021
29
Greatland Gold plc
Company number: 5625107
Independent Auditor’s Report to the Members of Greatland Gold plc
Opinion
We have audited the financial statements of Greatland Gold plc (the ‘parent company’) and its
subsidiaries (the ‘group’) for the year ended 30 June 2021 which comprise the Group Statement of
Comprehensive Income, the Group and Company Statement of Financial Position, the Group and
Company Statements of Changes in Equity, the Group and Company Statements of Cash Flows and
notes to the financial statements, including significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable law and international accounting
standards in conformity with the requirements of the Companies Act 2006 and as regards the parent
company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
In our opinion:
•
•
•
•
the financial statements give a true and fair view of the state of the group’s and of the parent
company’s affairs as at 30 June 2021 and of the group’s loss for the year then ended;
the group financial statements have been properly prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act 2006;
the parent company financial statements have been properly prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act 2006 and as applied
in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies
Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of
the group and parent company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the
directors’ assessment of the group’s and parent company’s ability to continue to adopt the going
concern basis of accounting included: performing a review of the expected cash flow forecast for the
foreseeable future as well as a further forecast prepared for a disaster scenario, challenging
management’s assumptions therein, and a review of subsequent events impacting going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the group's or
parent company’s ability to continue as a going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described
in the relevant sections of this report.
Our application of materiality
We consider gross assets to be the most significant determinant of the group’s financial position and
performance used by shareholders, with the key financial statement balances being mine development
and cash and cash equivalents. The ability of the group to continue as a going concern depends on its
means of funding operations going forward, as well as on the valuation of its assets, which represent
the underlying value of the group. Materiality for the group was £493,000 (2020: £171,000), based on
a benchmark of 2% of gross assets. The basis for calculating materiality is unchanged from the prior
year.
30
Greatland Gold plc
Company number: 5625107
Independent Auditor’s Report to the Members of Greatland Gold plc, continued
The same basis for calculation was used for the components of the group, with the parent company
materiality set at £220,000 (2020: £170,000). Performance materiality for the group and its components
was set at 70% of the overall materiality figure for both 2021 and 2020, being £345,100 (2020:
£119,700) and £154,000 (2020: £119,000) for the group and parent company respectively. We apply
the concept of materiality both in planning and performing our audit, and in evaluating the effect of
misstatements. At the planning stage materiality is used to determine the financial statement areas that
are included within the scope of our audit and the extent of sample sizes during the audit.
We agreed with the audit committee that we would report to the committee all audit differences
identified during the course of our audit in excess of £24,650 (2020: £8,550) as well as differences
below these thresholds that, in our view, warranted reporting on qualitative grounds.
Our approach to the audit
In designing our audit, we determined materiality and assessed the risk of material misstatement in the
financial statements. In particular, we looked at areas requiring the directors to make subjective
judgements, for example in respect of significant accounting estimates including the impairment
assessment of the carrying value of mine development and the accounting of assets and liabilities arising
from the joint operation with Newcrest (both identified as a key audit matter), the carrying value and
recoverability of investments in subsidiaries at parent company level, the valuation of share-based
payments, and the consideration of future events that are inherently uncertain. We also addressed the
risk of management override of internal controls, including evaluating whether there was evidence of
bias by the directors that represented a risk of material misstatement due to fraud.
An audit was performed on the financial information of the group’s significant operating components
which, for the year ended 30 June 2021, were located in the United Kingdom and Australia, with the
group’s accounting functions being based in the UK and Australia.
The Australian component was audited by local Australian firm operating under our instruction. This
audit was performed both for consolidation purposes as well as local statutory purposes. There was
regular interaction with the component auditor during all stages of the audit, and we were responsible
for the scope and direction of the audit process.
We obtained and reviewed remotely the key audit working papers prepared by the auditors of the
Australian component, which related to the work performed on the significant risks identified at group
level. The component auditor also provided their findings to us which were reviewed and challenged
accordingly.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) we identified, including those which had
the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing
the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
31
Greatland Gold plc
Company number: 5625107
the applicable exploration licences;
How our scope addressed this matter
• Reviewing capitalised costs and considering the
Our audit work included:
• Obtaining copies of and ensuring the group has good title to
appropriateness for capitalisation under IFRS 6 for those
exploration activities during the year;
Independent Auditor’s Report to the Members of Greatland Gold plc, continued
Key Audit Matter
Carrying value and reclassification of exploration assets to mine development (Note 11)
The group held intangible assets relating to
the capitalised exploration costs of its
Havieron project in Western Australia. At the
year end, these capitalised costs were
reclassified from an exploration asset in
accordance with IFRS 6 to mine
development and reviewed for impairment
under IAS 36.
There is a risk of impairment of the asset at
the year end under IAS 36 and the additional
indicators within the standard, following the
reclassification from an exploration asset.
and thus the asset is overstated. Particularly
for early stage projects where the calculation
of recoverable amount via value in use
calculations is not entirely accurate at this
stage, management’s assessment of
impairment under IAS 36 requires
significant estimation and judgement.
mine at the year end and reviewing forecasts and
management plans for future development and any
exploration activities to be carried out to ensure correct
classification at the year end;
challenging all key assumptions and sensitivity to reasonably
possible changes including assessing the disclosures made
thereto; and
• Assessing whether the impairment indicators as per IAS 36
• Assessing the progress at the individual projects during the
• Reviewing management’s impairment reviews, including
• Discussions with management regarding the status of the
against the Havieron Project have been met;
year and post year-end;
• Reviewing the pre-feasibility study in place and the value in
use, ensuring that there is no evidence of impairment
indicators at the year end.
Key observations:
We concluded that classification of the Havieron project is
accurate, and that the impairment indicators as per IAS 36
have not been met, thus the carrying value of the asset is fairly
stated.
Accounting and valuation of Joint arrangements under IFRS 11 (Note 11 & 16)
During the year the company entered into a
Joint Venture agreement with Newcrest
Mining Limited, the lead operator on the
Havieron project. There is a risk that the
assets and liabilities have not been
accounted for correctly.
key terms and ensuring they have been appropriately
reflected in the assessment prepared by management in
determining the correct accounting treatment;
Our work in this area included:
• Obtaining the Joint Venture Agreement (JVA), reviewing the
• Reviewing the management-prepared paper detailing the
accounting treatment and ensuring justifications made are
appropriate and in line with IFRS 11, and providing
appropriate challenge thereon;
• Testing the accounting entries made on subsequent cash calls
by vouching them to supporting documentation and
vouching to supporting documentation including billing
statements from the operator and underlying support on a
sample basis through component auditor; and
• Ensuring disclosures made surrounding the operating
interest by the company are complete and in accordance with
IFRS.
Key observations:
We concluded that accounting and disclosure relating to the
in place with Newcrest has been
new
appropriately accounted for using the principles under IFRS 11
and adequately disclosed in the financial statements.
joint venture
32
Greatland Gold plc
Company number: 5625107
Independent Auditor’s Report to the Members of Greatland Gold plc, continued
Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information
contained within the annual report25. Our opinion on the group and parent company financial
statements does not cover the other information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to
read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement
in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
•
•
the information given in the strategic report and the directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their
environment obtained in the course of the audit, we have not identified material misstatements in the
strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:
•
•
adequate accounting records have not been kept by the parent company, or returns adequate for our
audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and
returns; or
•
certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the
preparation of the group and parent company financial statements and for being satisfied that they give
a true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
33
Greatland Gold plc
Company number: 5625107
Independent Auditor’s Report to the Members of Greatland Gold plc, continued
In preparing the group and parent company financial statements, the directors are responsible for
assessing the group and the parent company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
the directors either intend to liquidate the group or the parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are 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 ISAs (UK) 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 these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect
of irregularities, including fraud. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
• We obtained an understanding of the group and parent company and the sector in which they operate
to identify laws and regulations that could reasonably be expected to have a direct effect on the
financial statements. We obtained our understanding in this regard through discussions with
management, industry research, and application of our cumulative audit knowledge and experience of
the sector.
• We determined the principal laws and regulations relevant to the group and parent company in this
regard to be those arising from:
− Companies Act 2006;
− Anti Money Laundering Legislation
− Local Tax laws and regulations
− Mining Act legislation of Western Australia
• We designed our audit procedures to ensure the audit team considered whether there were any
indications of non-compliance by the group and parent company with those laws and regulations.
These procedures included, but were not limited to:
o A review of the Board minutes throughout the year and post year end;
o A review of the RNS announcements;
o A review of general ledger transactions; and
o Discussions with management
• We also identified the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management
override of controls, the carrying value of the assets held to be an area of potential for management
bias. Whilst the carrying value of the assets are held at historical cost, management must consider the
impairment indicators under IAS 36 and the potential need to conduct a formal impairment review.
Being the key balance within these financial statements, and the key driver for the business, this gives
rise to an increased risk of material misstatement as a result of management bias. Supporting evidence
has been obtained for an appropriate sample of additions throughout the year, and a detailed
impairment assessment has been undertaken against those indicators as set out per IAS 36 and
ensured that the carrying value is appropriate.
• As in all of our audits, we addressed the risk of fraud arising from management override of controls
by performing audit procedures which included, but were not limited to: the testing of journals;
reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.
• We were in communication with the component auditor throughout the audit process, and directed
their audit accordingly, ensuring that sufficient appropriate audit evidence was obtained and inquiries
were made into any potential non-compliance with local laws and regulations.
34
Greatland Gold plc
Company number: 5625107
Independent Auditor’s Report to the Members of Greatland Gold plc, continued
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities,
including those leading to a material misstatement in the financial statements or non-compliance with
regulation. This risk increases the more that compliance with a law or regulation is removed from the
events and transactions reflected in the financial statements, as we will be less likely to become aware
of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud
rather than error, as fraud involves intentional concealment, forgery, collusion, omission or
misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part
16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone, other than the company and the company's members as a body, for our audit work, for this
report, or for the opinions we have formed.
Joseph Archer (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
11 November 2021
15 Westferry Circus
Canary Wharf
London E14 4HD
35
Group statement of comprehensive income
for the year ended 30 June 2021
Greatland Gold plc
Company number: 5625107
Revenue
Exploration costs
Administrative expenses
Impairment cost
Operating loss
Other income
Foreign exchange loss
Finance income
Finance costs
Loss before taxation
Income tax expense
Loss for the year
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of foreign
operations
Other comprehensive income for the year net
of taxation
Total comprehensive income for the year
attributable to equity holders of the parent
company
Notes
Year ended
30 June 2021
£
Year ended
30 June 2020
£
-
(3,470,443)
(2,204,441)
-
(5,674,884)
365,645
(193,976)
982
(17,415)
-
(3,460,185)
(1,697,801)
(38,376)
(5,196,362)
55,438
-
17,663
(21,734)
(5,519,648)
(5,144,995)
-
-
(5,519,648)
(5,144,995)
3
3
5
(48,735)
(48,735)
234,860
234,860
(5,568,383)
(4,910,135)
Earnings per share – basic and diluted
9
(0.14) pence
(0.14) pence
All operations are considered to be continuing.
The accompanying notes form part of these financial statements.
36
Group statement of financial position
as at 30 June 2021
Note
30 June 2021
£
30 June 2020
(Restated) £*
1 July 2019
(Restated) £*
Greatland Gold plc
Company number: 5625107
ASSETS
Non-current assets
Tangible assets
Mine development
Right of use asset
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
10
11
13
21
15
Payables and other liabilities
18
(3,513,512)
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Payables and other liabilities
Total non-current liabilities
(3,513,512)
(12,189,790)
(3,813,372)
(326,793)
(16,329,955)
17
16
18
120,356
17,091,622
341,912
17,553,890
132,061
-
414,616
546,677
103,114
-
-
103,114
6,212,057
6,022,745
2,755,998
78,198
154,215
6,444,470
23,998,360
23,865
55,211
6,101,821
6,648,498
(932,759)
(932,759)
-
-
(390,718)
(390,718)
26,376
51,104
2,833,478
2,936,592
(630,369)
(630,369)
-
-
-
-
TOTAL LIABILITIES
(19,843,467)
(1,323,477)
NET ASSETS
4,154,893
5,325,021
(630,369)
2,306,223
EQUITY
Share capital
Share premium
Share based payment reserve
Retained earnings
Other reserves
TOTAL EQUITY
19
20
3,947,270
3,760,207
24,064,307
19,878,782
177,592
372,953
3,323,420
12,554,173
349,606
(24,388,861)
(19,090,241)
(14,089,436)
354,585
4,154,893
403,320
5,325,021
168,460
2,306,223
*See note 1.19 for details of the restatement as a result of change in accounting policy.
Alex Borrelli
Chairman
Shaun Day
Chief Executive Officer
37
Greatland Gold plc
Company number: 5625107
Group statement of changes in equity
for the year ended 30 June 2021
Share capital
Share
premium
Share based
payment
reserve
Retained
earnings
Other
reserves
Total
£
£
£
£
£
£
As at 30 June 2019
3,323,420
12,554,173
349,606
(12,072,653)
168,460
4,323,006
Change in accounting
policy*
Restated as at 30 June
2019
Loss for the year
Adjustment from the
adoption of IFRS 16
Currency translation
differences
Total comprehensive
income
Share option charge
Transfer on exercise of
options and warrants
Share capital issued
Cost of share issue
Total contributions by
and distributions to
owners of the Company
As at 30 June 2020
(restated)*
Loss for the year
Currency translation
differences
Total comprehensive
income
Share option charge
Transfer on exercise of
options and warrants
Share capital issued
Cost of share issue
Total contributions by and
distributions to owners of
the Company
-
-
-
(2,016,783)
-
(2,016,783)
3,323,420
12,554,173
349,606
(14,089,436)
168,460
2,306,223
-
-
-
-
(5,144,995)
13,045
-
-
(5,144,995)
13,045
-
234,860
234,860
(5,131,950)
234,860
(4,897,090)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
154,492
-
(131,145)
131,145
436,787
7,543,487
-
(218,878)
-
-
-
-
436,787
7,324,609
23,347
131,145
-
-
-
-
-
154,492
-
7,980,274
(218,878)
7,915,888
3,760,207
19,878,782
372,953
(19,090,241)
403,320
5,325,021
-
-
-
(5,519,648)
-
(5,519,648)
-
(48,735)
(48,735)
(5,519,648)
(48,735)
(5,568,383)
25,667
-
(221,028)
221,028
187,063
4,185,525
-
-
-
-
-
-
187,063
4,185,525
(195,361)
221,028
-
-
-
-
-
25,667
-
4,372,588
-
4,398,255
As at 30 June 2021
3,947,270
24,064,307
177,592
(24,388,861)
354,585
4,154,893
The accompanying notes for part of these financial statements.
*See note 1.19 for details of the restatement as a result of change in accounting policy.
Note: In the previous year the Group adopted IFRS 16 and applied the modified retrospective approach. The cumulative effect
of adoption is recognised as an adjustment to retained earnings.
38
Group statement of changes in equity
for the year ended 30 June 2021, continued
Other reserves
Merger reserve
Foreign currency
translation reserve
Total other
reserves
Greatland Gold plc
Company number: 5625107
As at 30 June 2019
Currency translation differences
Total comprehensive income
As at 30 June 2020
Currency translation differences
Total comprehensive income
As at 30 June 2021
£
225,000
-
-
225,000
-
-
225,000
£
(56,540)
234,860
234,860
178,320
(48,735)
(48,735)
129,585
£
168,460
234,860
234,860
403,320
(48,735)
(48,735)
354,585
The following describes the nature and purpose of each reserve within equity:
Share capital:
Share premium:
Nominal value of shares issued
Amount subscribed for share capital in excess of nominal value, less share issue costs
Share based payment reserve:
Cumulative fair value of options granted
Retained losses:
Merger reserve:
Cumulative net gains and losses, recognised in the statement of comprehensive
income
The merger reserve was created in accordance with the merger relief provisions of
the Companies Act 1985 (as amended), and 2006, relating to accounting for business
combinations involving the issue of shares at a premium. In preparing group
consolidated financial statements, the amount by which the fair value of the shares
issued exceeded their nominal value was recorded within a merger reserve on
consolidation, rather than in a share premium account.
Foreign currency reserve:
Gains/losses arising on translation of foreign controlled entities into pounds
sterling.
39
Company statement of financial position
as at 30 June 2021
Note
30 June 2021
£
30 June 2020
£
Greatland Gold plc
Company number: 5625107
ASSETS
Non-current assets
Investment in subsidiary
Right of use asset
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Total Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Non-current liabilities
Other non-current payables
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Share premium
Share based payment reserve
Merger reserve
Retained earnings
TOTAL EQUITY
14
13
21
15
18
18
19
20
50,000
50,266
100,266
5,168,498
13,846,748
140,341
19,155,587
19,255,853
(413,131)
(413,131)
(13,399)
(13,399)
(426,530)
18,829,323
3,947,270
24,064,307
177,592
225,000
(9,584,846)
18,829,323
50,000
75,399
125,399
4,257,920
11,346,748
41,011
15,645,679
15,771,078
(192,476)
(192,476)
(37,506)
(37,506)
(229,982)
15,541,096
3,760,207
19,878,782
372,953
225,000
(8,695,846)
15,541,096
A separate income statement for the parent company has not been presented, as permitted by section 408 of the
Companies Act 2006. The Company’s loss for the year was £1,110,028 (2020: £1,054,544).
The accompanying notes form part of these financial statements.
These financial statements were approved by the Board of Directors on 11 November 2021 and signed on its
behalf by:
Alex Borrelli
Chairman
Shaun Day
Chief Executive Officer
40
Company statement of changes in equity
for the year ended 30 June 2021
Greatland Gold plc
Company number: 5625107
Share
capital
Share
premium
Share based
payment
reserve
Retained
earnings
Merger
reserve
Total
£
£
£
£
£
£
3,323,420
12,554,173
349,606
(7,785,492)
225,000
8,666,707
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,054,544)
13,045
(1,041,499)
154,492
-
(131,145)
131,145
436,787
7,543,487
-
(218,878)
-
-
-
-
436,787
7,324,609
23,347
131,145
-
-
-
-
-
-
-
-
(1,054,544)
13,045
(1,041,499)
154,492
-
7,980,274
(218,878)
7,915,888
As at 30 June 2019 originally
presented
Loss for the year
Adjustment from the adoption
of IFRS 16
Total comprehensive
income
Share option charge
Transfer on exercise of
options and warrants
Share capital issued
Cost of share issue
Total contributions by and
distributions to owners of
the Company
As at 30 June 2020
3,760,207
19,878,782
372,953
(8,695,846)
225,000
15,541,096
Loss for the year
Total comprehensive
income
Share option charge
Transfer on exercise of
options and warrants
Share capital issued
Cost of share issue
Total contributions by and
distributions to owners of
the Company
-
-
-
-
-
-
-
-
-
-
(1,110,028)
(1,110,028)
25,667
-
(221,028)
221,028
187,063
4,185,525
-
-
-
-
-
-
187,063
4,185,525
(195,361)
221,028
-
-
-
-
-
-
-
(1,110,028)
(1,110,028)
25,667
-
4,372,588
-
4,398,255
As at 30 June 2021
3,947,270
24,064,307
177,592
(9,584,846)
225,000
18,829,323
The accompanying notes for part of these financial statements.
Note:
In the previous year the Group adopted IFRS 16 and applied the modified retrospective approach. The cumulative effect of
adoption is recognised as an adjustment to retained earnings.
41
Group statement of cash flows
for the year ended 30 June 2021
Greatland Gold plc
Company number: 5625107
Notes
Year ended
30 June 2021
Year ended
30 June 2020
Cash flows from operating activities
Loss before taxation
Increase in trade & other receivables
Increase in payables & other liabilities
Depreciation
Amortisation
Impairment
Share option charge
Foreign exchange loss
Net decrease in cash and cash equivalents from
operating activities
Cash flows from investing activities
Interest received
Interest payable
Payments to acquire intangible assets
Payments to acquire tangible assets
Net cash outflows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs of issue of shares
Proceeds on borrowings
Other income
Repayment of lease liabilities
Net cash inflows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Exchange (loss) / gain on cash and cash equivalents
Cash and cash equivalents at end of period
21
21
The accompanying notes form part of these financial statements.
£
£
(5,519,648)
(5,183,317)
(54,333)
2,417,822
175,884
64,946
-
25,668
(1,596)
293,450
67,396
65,230
38,376
154,492
193,976
(2,695,685)
-
(4,565,969)
982
(17,415)
-
(13,554,108)
(13,570,541)
4,372,588
-
12,189,790
-
(63,925)
16,498,453
232,227
6,022,745
(42,915)
6,212,057
2,163
(21,734)
9,640
(95,624)
(105,555)
7,980,274
(218,878)
-
55,438
(67,877)
7,748,957
3,077,433
2,755,998
189,314
6,022,745
42
Greatland Gold plc
Company number: 5625107
Notes
Year ended
30 June 2021
Year ended
30 June 2020
£
£
(1,110,028)
(1,048,003)
(99,330)
217,068
25,133
25,667
(12,813)
(71,974)
25,133
154,492
(941,490)
(953,165)
20
(6,100)
275
(9,271)
(2,500,000)
(4,750,000)
(2,506,080)
(4,758,996)
4,372,588
-
10,000
(24,440)
4,358,148
910,578
4,257,920
5,168,498
7,980,274
(218,878)
-
(38,586)
7,722,810
2,010,649
2,247,271
4,257,920
Company statement of cash flows
for the year ended 30 June 2021
Cash flows from operating activities
Operating loss
Increase in trade & other receivables
Decrease/(Increase) in payables & other liabilities
Amortisation
Share option charge
Net decrease in cash and cash equivalents from
operations
Cash flows from investing activities
Interest received
Interest payable
Loans to subsidiary
Net cash outflows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Transaction costs of issue of shares
Other income
Repayment of lease liability
Net cash inflows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at end of period
21
21
The accompanying notes form part of these financial statements.
43
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021
1
Principal accounting policies
1.1
Authorisation of financial statements and statement of compliance with IFRS
The group financial statements of Greatland Gold plc for the year ended 30 June 2021 were
authorised for issue by the board on 11 November 2021 and the statement of financial position signed
on the board’s behalf by Mr Shaun Day and Mr Alex Borrelli. Greatland Gold plc is a public limited
company incorporated and domiciled in England and Wales. The Company’s ordinary shares are
traded on AIM.
The principal accounting policies adopted by the Group and Company are set out below.
New standards, amendments and interpretations adopted by the Group
There are no IASB and IFRIC standards that have been issued with an effective date after the date
of the financial statements which are expected to have a material impact on the Group.
New and amended Standards and Interpretations issued but not effective
At the date of approval of these financial statements, the following standards and interpretations
which have not been applied in these financial statements were in issue but not yet effective (and in
some cases had not been adopted by the UK):
- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as
Current or Non-current – effective 1 January 2023*
- Amendments to IFRS 3: Business Combinations – Reference to the Conceptual Framework
– effective 1 January 2022*
- Amendments to IAS 16: Property, Plant & Equipment – effective 1 January 2022*
- Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets – effective
1 January 2022*
- Annual Improvements to IFRS Standards 2018-2020 Cycle – effective 1 January 2022*
- Amendments to IAS 1: Presentation of Financial Statements and IFRS Practice Statement 2:
Disclosure of Accounting Policies – effective 1 January 2023*
- Amendments to IAS 8: Accounting policies, Changes in Accounting Estimates and Errors –
Definition of Accounting Estimates – effective 1 January 2023*
- Amendments to IFRS 16: Leases – Covid-19-Related Rent Concessions beyond 30 June 2021
– effective 1 April 2021
- Amendments to IAS 12: Income Taxes – Deferred Tax related to Assets and Liabilities arising
from a Single Transaction – effective 1 January 2023*
*subject to UK endorsement
The new and amended Standards and Interpretations which are in issue but not yet mandatorily
effective is not expected to be material.
44
Notes to financial statements
for the year ended 30 June 2021, continued
1.2
Significant accounting judgments, estimates and assumptions
Greatland Gold plc
Company number: 5625107
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of certain assets and liabilities within the next
annual reporting period are:
Rehabilitation provision (Note 16)
The Group assesses its rehabilitation, restoration and dismantling (rehabilitation) provision at each
reporting date. Significant estimates and assumptions are made in determining the provision as there
are numerous factors that will affect the ultimate amount payable. These factors include estimates of
the extent, timing and costs of rehabilitation activities, technological changes, regulatory changes, cost
increases as compared to the inflation rates, and changes in discount rates. These uncertainties may
result in future actual expenditure differing from the amounts currently provided. The provision at
reporting date represents management’s best estimate of the present value of the future rehabilitation
costs. The rehabilitation estimate is based on the Pre-Feasibility study. The discount rate used in the
calculation of the provision is 4.5%. At this stage the rehabilitation costs are expected to be incurred
up to 2033.
Impairment of mine development (Note 11)
The recoverable amount of mine development is dependent on the successful development and
commercial exploration, or alternatively, sale of the respective area of interest. The Group’s estimate
of the Ore Reserve that can be economically and legally extracted. The Group estimates its Ore
Reserve and Mineral Resource based on information compiled by appropriately qualified persons
relating to the geological data on the size, depth and shape of the ore body, and requires complex
geological judgments to interpret the data. The estimation of Ore Reserves is based on factors such
as estimates of foreign exchange rates, commodity prices, future capital requirements, and production
costs along with geological assumptions and judgments made in estimating the size and grade of the
ore body and removal of waste material. Management have determined the mine development asset
to be recoverable based on the Pre-Feasibility Study released on the company's website on 21 October
2021. Changes in these estimates may impact upon the carrying value of mine properties, property,
plant and equipment, and provision for rehabilitation.
Impairment of loan due from subsidiary (Note 15)
The Company holds a loan due from a 100% owned subsidiary, Greatland Pty Ltd. Greatland Pty Ltd
holds the Group's interest in the Havieron Joint Venture. The recoverable amount of the loan is
dependent on the successful development and commercial exploration of the Havieron Joint Venture,
or alternatively, sale of the respective area of interest. Management have concluded the loan will be
recoverable on this basis.
Share-based payment transactions (Note 20)
The Group 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. The fair value is determined
using a Black-Scholes model and a 40% discount is applied to that value due to the recent volatility
of the share price over the valuation period.
45
Notes to financial statements
for the year ended 30 June 2021, continued
1.3
Basis of preparation
Greatland Gold plc
Company number: 5625107
The Group’s financial statements have been prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act 2006 and in accordance with
the requirements of the Companies Act 2006.
The consolidated financial statements have been prepared on the historical cost basis, except for the
measurement to fair value of assets and financial instruments as described in the accounting policies
below, and on a going concern basis.
The amounts presented in the consolidated financial statements are rounded to the nearest £1.
During the year, the group made the decision to voluntarily change its accounting policy in respect of
Exploration assets. Refer to Note 1.19 for more details on the change.
Going Concern
The consolidated entity has incurred a loss before tax of £5,519,648 for the year ended 30 June 2021
and had a net cash outflow of £16,266,226 from operating and investing activities. At that date there
were net current assets of £2,930,958. The loss resulted almost entirely from exploration costs and
associated administrative related costs.
The Group’s cash flow forecast for the period ending 30 November 2022 highlights adequate funding
of projected expenditure to last into 2022 with the Group having access to a loan facility for its share
of Havieron Joint Venture expenditure up to US$50 million and is being able to significantly reduce
expenditure on its own exploration programs if it wishes to do so. The Group also has the ability to
raise capital for expansion purposes, if required and the Group has demonstrated a consistent ability
to do so in the past, as well as potential to debt fund its share of Havieron development. Albeit the
Board considers that, in a worst case scenario, the Group can continue without a capital raising.
Given the Group’s current positive cash position, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational existence for the foreseeable future.
For these reasons, they continue to adopt the going concern basis in preparing the annual report and
accounts.
Having prepared forecasts based on current resources, assessing methods of obtaining additional
finance and assessing the possible impact of COVID-19, the Directors believe the Group has
sufficient resources to meet its obligations for a period of 12 months from the date of approval of
these financial statements. Taking these matters into consideration, the Directors continue to adopt
the going concern basis of accounting in the preparation of the financial statements. The financial
statements do not include the adjustments that would be required should the going concern basis of
preparation no longer be appropriate.
46
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.4
Basis of consolidation
The consolidated accounts combine the accounts of the Company and its sole subsidiary, Greatland
Pty Ltd, using the purchase method of accounting.
In the Company’s statement of financial position, the investment in Greatland Pty Ltd includes the
nominal value of shares issued together with the cash element of the consideration. As required by
the Companies Act 2006, no premium was recognised on the share issue. The difference between
nominal and fair value of the shares issued was credited to the merger reserve.
Subsidiary undertakings are those entities controlled directly or indirectly by the Company. The
Company controls an investee when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the
entity. The results of the subsidiaries acquired are included in the Consolidated Statement of
Comprehensive Income from the date of acquisition using the same accounting policies of those of
the Group. The consideration transferred in a business combination is the fair value at the acquisition
date of the assets transferred and the liabilities incurred by the Group and includes the fair value of
any contingent consideration arrangement. Acquisition-related costs are recognised in the income
statement as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in
a business combination are measured initially at their fair value at the acquisition date.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies in line with those used by other members of the Group.
All intra-group balances and transactions, including any unrealized income and expenses arising from
intragroup transactions, are eliminated in full in preparing the consolidated financial statements.
Unrealised gains arising from transactions with equity accounted investees are eliminated against the
investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in
the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
1.5
Investment in subsidiaries
Investments in subsidiary companies are classified as non-current assets and included in the statement
of financial position of the Company at cost, less provision for impairment at the date of acquisition
irrespective of the application of merger relief under the Companies Act.
1.6
Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less.
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.
1.7
Income tax and deferred taxation
Current tax assets and liabilities for the current and prior periods are measured as 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 substantially enacted by the balance sheet date.
Full provision is made for deferred taxation resulting from timing differences which have arisen but
not reversed at the balance sheet date.
Deferred tax assets on carried forward losses are only recorded where it is expected that future trading
profits will be generated in which this asset can be offset. The carrying amount of deferred tax assets
is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates
to items charged or credited directly to equity, in which case the deferred tax is also dealt with in
equity.
47
Notes to financial statements
for the year ended 30 June 2021, continued
1.8
Tangible fixed assets
Greatland Gold plc
Company number: 5625107
Exploration and evaluation and development assets
Exploration and evaluation and development assets includes pre-licence costs, costs associated with
exploring, investigating, examining and evaluating an area of mineralisation, and assessing the
technical feasibility and commercial viability of extracting the mineral resource from that area. Other
than acquisition costs, exploration and evaluation expenditure incurred on licenses where the
commercial viability of extracting the mineral resource has not yet been established is generally
expensed when incurred. Once the commercial viability of extracting the mineral resource are
demonstrable (at which point, the Group considers it probable that economic benefits will be
realised), the Group capitalises any further evaluation costs incurred. These costs are classified as
property plant and equipment. The recoverability of the exploration and evaluation assets is
dependent on the successful development and commercial exploration, or alternatively, sale of the
respective area of interest.
Exploration and evaluation and development assets are assessed for impairment if:
• insufficient data exists to determine commercial viability; or
• other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
An exploration and evaluation asset will be reclassified to mine properties when the technical
feasibility and commercial viability of extracting a mineral resource are demonstrable and a decision
has been made to develop and extract the resource. Exploration and evaluation assets shall be assessed
for impairment, and any impairment loss shall be recognised, before reclassification to mine
properties. No amortisation is charged during the exploration and evaluation phase.
Rehabilitation provision
The present value of the expected cost for the decommissioning, restoration and dismantling of an
asset after its use is included in the cost of the respective asset if the recognition criteria for a provision
are met. Refer to Provisions for further information about the recognised decommissioning
provision.
Plant and equipment
Plant and equipment including mine development are stated at historical cost, less accumulated
depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is
directly attributable to the acquisition of the items and costs incurred in bringing the asset into use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item flow to
the Group and the cost of the item can be measured reliably. The carrying amount of the replaced
part is de-recognised. All other repairs and maintenance costs are recognised in the income statement
as incurred.
An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Any gain
or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the income statement when the asset is
derecognised
Depreciation
The depreciation methods adopted by the Group are shown in table below:
• Mine properties: units of ore extracted basis over the life of mine
• Motor vehicles: straight line basis of 20% per annum
• Equipment: straight line basis of 7% per annum
• Leasehold improvements: straight line basis of 11% per annum
48
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.9
Capitalised borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in income in the period in which they are incurred.
1.10
Right of use assets
At inception of a contract, the Company assesses if the contract contains or is a lease. If there is a
lease present, a right-of-use asset and a corresponding lease liability is recognised by the company
where the company is a lessee. However, all contracts that are classified as short-term leases (i.e. a
lease with a remaining lease term of 12 months or less) and leases of low-value assets are recognised
as an operating expense on a straight line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If
the rate cannot be readily determined, the company uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
• Fixed lease payments less any lease incentives;
• Variable lease payments that depend on an index rate, initially measured using the index rate
of rate at the commencement date;
• The amount expected to be payable by the lessees under the residual value guarantees;
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the
options;
• Lease payments under extension options, if the lessee is reasonably certain to exercise the
options; and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an
options.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as
mentioned above, any to terminate the lease payments made at or before the commencement date, as
well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less
accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the lease
term of useful life of the underlying asset, whichever is the shortest. Where a lease transfers ownership
of the underlying asset of the cost of the right-of-use asset reflects that the company anticipates to
exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.
1.11
Foreign currencies
Both the functional and presentational currency of Greatland Gold plc is sterling (£). Each group
entity determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency.
The functional currency of the foreign subsidiary, Greatland Pty Ltd, is Australian Dollars (A$).
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the balance sheet date. All differences are taken to the income statement.
On consolidation of a foreign operation, assets and liabilities are translated at the balance sheet rates,
income and expenses are translated at rates ruling at the transaction date. Exchange differences on
consolidation are taken to the income statement.
49
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.12 Other income
During the year the Parent Company received a ‘Small Business Grant’ of £10,000 from Westminster
City Council, London. In the previous year Greatland Pty Ltd received two ‘Cash Boost’ grants
totalling A$100,000 (£55,438) from the state government of Western Australia. These grants were
provided to support businesses during the COVID-19 pandemic. Government grants are recognised
only when there is reasonable assurance that the Group will comply with the conditions attaching to
the grant and that the grants will be received. Capital grants are recognised to match the related
development expenditure and are deducted in arriving at the carrying value of the related assets. Any
grants that are received in advance of recognition are deferred.
During the year the Group received other income of A$611,050 (£336,356) in respect of chargeable
costs for its Juri loan (2020: £nil).
Previous years consisted of a grant from the state government of Western Australia. Government
grants are accounted for on a receipts basis.
1.13
Finance income
Finance income is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the
relevant period using the effective interest rate, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the net carrying amount of the
financial asset.
1.14
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less any allowance for the expected future issue of
credit notes and for non-recoverability due to credit risk. The Group applies the IFRS 9 simplified
approach to measuring expected credit losses which uses a lifetime expected loss allowance for all
trade receivables and contract assets. To measure expected credit losses, trade receivables and contract
assets have been grouped based on shared risk characteristics. No such credit loss has been recorded
in these financial statements as any effect would be immaterial.
1.15
Financial instruments
Financial assets and liabilities are recognized in the Group’s Statement of Financial Position when the
Group becomes a party to the contracted provision of the instrument. The following policies for
financial instruments have been applied in the preparation of the consolidated financial statements:
The Group and Company’s financial assets which comprise loans and receivables and other debtors
are measured at amortised cost.
The classification depends on the business model for managing the financial assets and the contractual
terms of the cash flows. Financial assets are classified as at amortised cost only if both of the following
criteria are met:
•
•
the asset is held within a business model whose objective is to collect contractual cash flows;
and
the contractual terms give rise to cash flows that are solely payments of principal and interest
1.16
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Group becomes obliged to make future payments in respect of the purchase of these goods and
services.
50
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.17
Provisions
Employee benefits
Provision for employee entitlements include leave entitlements. These are recognised when the
Company has a legal or constructive obligation, as a result of past events, for which it is probable that
an outflow of economic benefits will result and that outflow can be reliably measured.
Liabilities for wages and salaries, annual leave and any other employee benefits are measured at the
amounts expected to be paid when the liabilities are settled.
Amounts expected to settle within twelve months are recognised in ‘Current Provisions’ (for annual
leave and salary at risk) and ‘Trade and Other Payables’ (for all other employee benefits) in respect of
employees’ services up to the reporting date. Costs incurred in relation to non-accumulating sick leave
are recognised when leave is taken and are measured at the rates paid or payable.
The liability for long service leave and other long-term benefits is measured at the present value of
the estimated future cash outflows resulting from employees’ services provided up to the reporting
date.
Rehabilitation, restoration and dismantling
The Group recognises a provision for the estimate of the future costs of restoration activities on a
discounted basis at the time of exploration or mining disturbance. The nature of these restoration
activities includes dismantling and removing structures, rehabilitating mines, dismantling operating
facilities, closure of plant and waste sites, and restoration, reclamation and re-vegetation of affected
areas. When the liability is initially recognised, the present value of the estimated costs is capitalised
by increasing the carrying amount of the related assets to the extent that it was incurred by the
development/construction of the asset.
Over time, the discounted liability is increased for the change in the present value based on a discount
rate that reflects current market assessments. Additional disturbances or changes in rehabilitation
costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability
when incurred. The unwinding of the effect of discounting the provision is recorded as a finance cost
in the statement of comprehensive income. The carrying amount capitalised as a part of mining assets
is depreciated/amortised over the life of the related asset.
Rehabilitation and restoration obligations arising from the Group’s exploration activities are
recognised immediately in the income statement. If a change to the estimated provision results in an
increase in the rehabilitation liability and therefore an addition to the carrying value of the related
asset, the Group considers whether this is an indication of impairment of the asset. If the revised
assets, net of rehabilitation provisions, exceed the recoverable amount, that portion of the increase to
the provision is charged directly to the statement of comprehensive income.
1.18
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, 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 attributable to members of the parent,
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.
51
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.19
Change in accounting policy adjustment - Exploration and development expenditure
During the year, a retrospective adjustment has been made to the carrying values to reflect a change
in accounting policy of exploration and evaluation expenditure. The change in accounting policy
was made to align to industry and peer companies. Previously costs associated with an exploration
activity were capitalised if, in management’s opinion, the results from that activity led to a material
increase in the market value of the exploration asset which was determined by management to be
following the economic feasibility stage.
The new policy is as follows:
Exploration, evaluation and development assets includes pre-licence costs, costs associated with
exploring, investigating, examining and evaluating an area of mineralisation, and assessing the
technical feasibility and commercial viability of extracting the mineral resource from that area. Other
than acquisition costs, exploration and evaluation expenditure incurred on licenses where the
commercial viability of extracting the mineral resource has not yet been established is generally
expensed when incurred. Once the commercial viability of extracting the mineral resource are
demonstrable (at which point, the Group considers it probable that economic benefits will be
realised), the Group capitalises any further evaluation costs incurred. This probability is assessed
through a pre-feasbility study or similar. The recoverability of the exploration and evaluation assets
is dependent on the successful development and commercial exploration, or alternatively, sale of the
respective area of interest.
Exploration, evaluation and development assets are assessed for impairment if:
• insufficient data exists to determine commercial viability; or
• other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
An exploration and evaluation asset will be reclassified to mine properties when the technical
feasibility and commercial viability of extracting a mineral resource are demonstrable and a
decision has been made to develop and extract the resource. Exploration and evaluation assets
shall be assessed for impairment, and any impairment loss shall be recognised before
reclassification to mine properties. No amortisation is charged during the exploration and
evaluation phase.
Impairment reviews are carried out regularly by the Directors of the Company. Where a project
is abandoned or is considered not to be of commercial value to the Company, the related costs
are written off or provisions are made.
The change in accounting policy affected the following items in the balance sheet at 1 July 2020:
•
Intangible assets – decrease by £1,989,363 (1 July 2019: £2,016,783)
• Retained earnings – decrease by £1,989,363 (1 July 2019: £2,016,783)
There was no impact to the statement of comprehensive income as a result of the change in
accounting policy, given there were no additions to Intangible Assets in 2020. As a result, there
was no change to the earnings per share calculation.
52
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
1.20
Share based payments
The fair value of options granted to directors and others in respect of services provided is
recognised as an expense in the profit and loss account with a corresponding increase in equity
reserves – the share based payment reserve.
On exercise or cancellation of share options, the proportion of the share based payment reserve
relevant to those options is transferred to the profit and loss account reserve. On exercise, equity
is also increased by the amount of the proceeds received.
The fair value is measured at grant date and the charge is spread over the relevant vesting period.
The fair value of options is calculated using the Black-Scholes model taking into account the
terms and conditions upon which the options were granted. Vesting conditions are non-market
and there are no market vesting conditions. The exercise price is fixed at the date of grant and
no compensation is due at the date of grant.
1.21
Interest in joint operations
A joint operation is a joint arrangement whereby the parties of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement.
When the Group undertakes its activities under joint operations, the Group as a joint operator
recognises in relation to its interest in a joint operation:
•
•
•
•
•
Its assets, including its share of any assets held jointly
Its liabilities, including its share of any liabilities incurred jointly
Its revenue from the sale of its share of the output arising from the joint operation
Its share of the revenue from the sale of the output by the joint operation
Its expenses, including its share of any expenses incurred jointly.
The Havieron Project is operated under a Joint Venture Agreement between Greatland Gold and
Newcrest Mining Limited (Newcrest) entered into on 30 November 2020. The agreement
provides a formal framework for the arrangements between the two parties beyond the existing
Farm-in Agreement, and facilitate the expansion of exploration activities at Havieron and the
acceleration of early works, including the construction of a box-cut and decline.
As at 30 June 2021, Newcrest has now met the Stage 3 expenditure requirement (US$45 million)
resulting in an overall joint venture interest of 60% (Greatland Gold 40%). Newcrest can earn up
to a 70% joint venture interest through total expenditure of US$65 million and the completion
of a series of exploration and development milestones (including the delivery of a Pre-Feasibility
Study) in a four-stage farm-in over a six year period that commenced in May 2019.
The Joint Venture arrangement governs the joint venture ownership and operations of the
Havieron project in the area covered by Mining Lease 45/1287 which includes the Havieron gold-
copper deposit. The Joint Venture Agreement includes tolling principles reflecting the intention
of the parties that, subject to a successful exploration program, Feasibility Study and a positive
decision to mine, the resulting joint venture mineralised material will be processed at Newcrest's
Telfer Gold Mine ("Telfer"), which sits approximately 45km to the west of Havieron.
53
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
2
Segmental reporting
The Group’s prime business segment is mining development and exploration of precious and base
metals.
The Group operates within two geographical segments, the United Kingdom and Australia. The UK
sector consists of the parent company which provides administrative and management services to the
subsidiary undertaking based in Australia.
The aggregation of these two segments into a single United Kingdom business unit reflects the way
information is presented to the Chief Operating Decision Maker, who is the Group’s Chief Executive
Officer.
The following tables present revenue and loss information and certain asset and liability information
by geographical segments:
Year ended 30 June 2021
Revenue
Total segment revenue
Total consolidated revenue
Result
Segment results
Loss before tax and finance
income/costs
Interest receivable
Interest payable
Other income
Loss before taxation
Taxation expense
Loss after taxation
As at 30 June 2021
Assets and liabilities
Segment assets
Total assets
Segment liabilities
Total liabilities
Other segment information:
Capital expenditure
Depreciation
Amortisation
Impairment
UK
£
-
-
(1,113,949)
(1,113,949)
20
(6,100)
10,000
Australia
£
-
-
Total
£
-
-
(4,754,911)
(5,868,860)
(4,754,911)
(5,868,860)
962
(11,315)
355,645
982
(17,415)
365,645
(1,110,029)
(4,409,619)
(5,519,648)
-
-
-
(1,110,029)
(4,409,619)
(5,519,648)
UK
£
5,359,105
5,359,105
(426,530)
(426,530)
-
-
25,133
-
54
Australia
£
Total
£
18,639,255
23,998,360
18,639,255
23,998,360
(19,416,936)
(19,843,466)
(19,416,936)
(19,843,466)
17,270,525
17,270,525
175,884
39,813
-
175,884
64,946
-
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
2
Segmental reporting, continued
Year ended 30 June 2020
Revenue
Total segment revenue
Total consolidated revenue
Result
Segment results
UK
£
-
-
Australia
Total
£
-
-
£
-
-
(1,061,048)
(4,135,314)
(5,196,362)
Loss before tax and finance costs
(1,061,048)
(4,135,314)
(5,196,362)
Interest receivable
Interest payable
Other income
Loss before taxation
Taxation expense
Loss after taxation
As at 30 June 2020
Assets and liabilities (restated)
Segment assets
Total assets
Segment liabilities
Total liabilities
Other segment information
Capital expenditure
Depreciation
Amortisation
Impairment
3
Net finance costs
Finance income
Finance costs
275
6,229
-
1,888
(12,463)
55,438
2,163
(6,234)
55,438
(1,054,544)
(4,090,451)
(5,144,995)
-
-
-
(1,054,544)
(4,090,451)
(5,144,995)
UK
£
Australia
£
Total
£
4,374,330
2,274,168
6,648,498
4,374,330
2,274,168
6,648,498
(229,983)
(1,093,494)
(1,323,477)
(229,983)
(1,093,494)
(1,323,477)
-
-
25,133
-
85,984
67,396
40,097
38,376
85,984
67,396
65,230
38,376
2021
£
982
(17,415)
(16,433)
2020
£
17,663
(21,734)
(4,071)
55
Notes to financial statements
for the year ended 30 June 2021, continued
4
Expenses by Nature
Loss on ordinary activities before taxation is stated after charging:
Auditors’ remuneration – audit
Depreciation
Amortisation
Impairment charge
Directors’ emoluments
Greatland Gold plc
Company number: 5625107
2021
£
40,600
175,884
64,946
-
2020
£
17,000
67,396
65,230
38,376
1,368,925
1,089,226
Services provided by the Company’s auditor and its associates
During the period, the Group (including overseas subsidiaries) obtained the following services from
the Company’s auditors and its associates:
Fees payable to the Company’s auditor and its associates for the
audit of the Company and Group Financial Statements
2021
£
40,600
2020
£
17,000
Auditors’ remuneration for audit services above excludes AU$11,750 (2020: AU$9,950) charged by
Charles Foti Business Services (Australia) relating to the audit of the subsidiary company.
5
Taxation
Analysis of charge in year
Deferred tax
Current tax
Tax on profit on ordinary activities
Factors affecting tax charge for year
2021
2020
£
-
-
-
£
-
-
-
The tax assessed on the loss on ordinary activities for the period differs from the standard rate of
corporation tax in the UK of 19% (2020: 19%) and Australia of 26%. The differences are explained
below:
2021
£
2020
£
Loss on ordinary activities before tax
(5,519,648)
(5,144,995)
Loss multiplied by weighted average applicable rate of tax
(1,241,921)
(1,196,211)
Effects of:
Expenses not deductible for tax:
Share option charge
5,775
35,920
Tax losses on which no deferred tax asset is recognised
1,236,146
1,160,291
Income tax expense
-
-
56
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
5
Taxation, continued
The weighted average applicable tax rate of 22.50% (2020: 23.25%) used is a combination of the
standard rate of corporation tax rate for entities in the United Kingdom of 19% (2020: 19%), and
26.0% (2020: 27.5%) in Australia.
No deferred tax asset has been recognised because there is insufficient evidence of the timing of
suitable future profits against which they can be recovered.
Losses carried forward:
Brought forward losses 30 June 2020
Currency exchange movements
Prior year adjustment
Current year losses
Losses carried forward 30 June 2021
6
Employee information
Employee costs comprised:
Wages and salaries
Bonus
Pension/superannuation
Share option charge
Exploration
Administration
17,073,458
12,072,653
(221,029)
1,989,363
-
-
5,519,648
5,000,805
24,361,440
17,073,458
2021
£
1,696,082
338,068
169,723
25,668
2020
£
949,721
611,854
147,345
154,492
2,229,541
1,863,412
Number
15
2
Number
6
2
Of the total employee costs in the year, £772,804 (2020: £669,759) arises from work on the
Exploration Properties and has been expensed to the statement of comprehensive income as
exploration costs. Refer to Note 8 for details of the Directors’ emoluments.
7
Dividends
No dividends were paid or proposed by the Directors. (2020: £Nil)
57
Notes to financial statements
for the year ended 30 June 2021, continued
8
Directors’ emoluments
Directors’ remuneration
Share option charge
Greatland Gold plc
Company number: 5625107
2021
£
2020
£
1,348,676
997,511
20,249
91,715
1,368,925
1,089,226
2021
Executive directors
Callum Baxter
Gervaise Heddle
(resigned 12 March 2021)
Shaun Day
(appointed 15 December 2020)
Non-executive directors
Alex Borrelli
Clive Latcham
Director
s’ salary
Pension
Bonus
Share Based
Payments
Total
£
£
£
£
£
320,721
348,790
40,020
29,194
100,540
-
3,901
3,901
465,182
381,885
191,760
28,031
103,305
11,797
334,893
52,500
40,000
1,315
-
52,500
40,000
-
650
106,315
80,650
953,771
98,560
296,345
20,249
1,368,925
Of the total Directors’ emoluments disclosed above in the statement of comprehensive income, 75%
(or £348,887) for Callum Baxter and 25% (or £259,968) for Gervaise Heddle and Shaun Day has been
allocated to exploration costs in the statement of comprehensive income for the year. Directors’
remuneration and bonus relates to short term employee benefits. Pension / superannuation payments
relate to long term employee benefits.
Share based payments reflect the Black Scholes value of share options granted during the year. See
Note 20.Also, see Note 25 for related party transactions.
2020
Executive directors
Callum Baxter
Gervaise Heddle
Non-executive directors
Alex Borrelli
Clive Latcham
Directors’
salary
Pension
Bonus Share Based
Payments
Total
£
£
£
£
£
185,024
185,024
44,278
44,278
205,121
205,121
30,015
30,015
464,438
464,438
43,750
33,750
1,165
-
25,000
25,000
3,159
28,526
73,074
87,276
447,548
89,721
460,242
91,715
1,089,226
Of the total Directors’ emoluments disclosed above in the statement of comprehensive income, 75%
(or £348,329) for Callum Baxter and 25% (or £116,110) for Gervaise Heddle has been allocated to
exploration costs in the statement of comprehensive income for the year. Directors’ remuneration
and bonus relates to short term employee benefits. Pension / superannuation payments relate to long
term employee benefits.
58
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
8
Directors’ emoluments, continued
The aggregate gains made on the exercise of options during the year was £4,827,500 (2020: £5,357,450)
Share based payments reflect the Black Scholes value of share options granted during the year. See Note
20.
Also, see Note 25 for related party transactions.
9
Earnings per share
The basic earnings per share is derived by dividing the loss / profit for the period attributable to ordinary
shareholders by the weighted average number of shares in issue.
Loss for the period
2021
£
2020
£
(5,519,648)
(5,144,995)
Weighted average number of Ordinary shares of £0.001
in issue
3,872,578,735
3,593,407,809
Loss per share – basic
(0.14) pence
(0.14) pence
An inclusion of the potential Ordinary shares would result in a decrease in the loss per share, they are
considered to be anti-dilutive; as such, a diluted earnings per share is not included.
If the 103,250,000 outstanding options at 30 June 2021 (2020: 204,500,000) were included to calculate
the diluted loss per share.
Weighted average number of Ordinary shares of £0.001
in issue inclusive of outstanding options
3,975,828,735
3,797,907,809
Loss per share - diluted
(0.14) pence
(0.14) pence
59
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
10
Tangible fixed assets – Group
Cost
At 30 June 2020
Disposals
Additions
Foreign exchange rate fluctuations
At 30 June 2021
Depreciation
At 30 June 2020
Disposals
Charge
Motor
vehicle
£
117,546
(32,837)
49,050
(2,858)
130,901
Equipment
£
120,451
-
129,853
(2,929)
247,375
44,955
67,294
(19,160)
28,660
-
147,068
Leasehold
Improvements
£
Total
£
6,320
244,317
-
-
(32,837)
178,903
(153)
(5,940)
6,167
384,443
7
-
112,256
(19,160)
156
175,884
Foreign exchange rate fluctuations
(1,446)
(3,445)
(2)
(4,893)
At 30 June 2021
Net book value
At 30 June 2021
At 30 June 2020
Cost
At 30 June 2019
Disposals
Additions
Foreign exchange rate fluctuations
At 30 June 2020
Depreciation
At 30 June 2019
Disposals
Charge
53,009
210,917
161
264,087
77,892
72,591
36,458
53,157
6,006
120,356
6,313
132,061
Motor
vehicle
£
33,310
-
83,892
344
Equipment
£
113,863
-
5,411
1,177
Leasehold
Improvements
£
-
-
Total
£
147,173
-
6,320
95,623
-
1,521
117,546
120,451
6,320
244,317
5,126
38,933
-
-
39,573
27,816
-
-
7
-
44,059
-
67,396
801
Foreign exchange rate fluctuations
256
545
At 30 June 2020
Net book value
At 30 June 2020
At 30 June 2019
44,955
67,294
7
112,256
72,591
28,184
53,157
74,930
6,313
132,061
-
103,114
60
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
11
Mine development
At 30 June 2020
Transferred from exploration properties
At 30 June 2021
2021
£
-
17,091,622
17,091,622
Mine development reflects the Havieron asset operated by Newcrest under a Joint Venture
Agreement with Greatland Pty Ltd. Newcrest has met the Stage 4 expenditure requirement to
incur expenditure of US$65m and deliver a Pre-Feasibility Study to earn an additional 10% joint
venture interest, resulting in the Group holding a 30% interest in the joint venture. Refer to note
1.2 in regards to significant estimates in relation to mine development.
12
Intangible non-current assets – Group
Exploration properties
At 30 June 2020
Impairment
Foreign exchange rate fluctuations
Change in accounting policy adjustment
Havieron: capitalised borrowing costs
Havieron: rehabilitation provision
Havieron: evaluation and exploration costs
Transferred to mine development
At 30 June 2021
Impairment
At 30 June 2020
Change in accounting policy adjustment
Foreign exchange rate fluctuations
At 30 June 2021
Net book amount
At 30 June 2021
At 30 June 2020
2021
£
-
-
-
-
264,436
3,813,372
13,013,814
(17,091,622)
-
-
-
-
-
-
2020
£
-
-
-
2020
£
2,647,577
(38,376)
10,956
(2,620,157)
-
-
-
-
-
(630,794)
630,794
-
-
-
-
61
Notes to financial statements
for the year ended 30 June 2021, continued
13
Right of use asset
Properties
At 30 June 2020
Greatland Gold plc
Company number: 5625107
Group
Company
2021
2020
£
£
2021
£
2020
£
414,616
479,846
75,399
100,532
Amortisation charge current year
(64,946)
(65,230)
(25,133)
(25,133)
Exchange rate movements
At 30 June 2021
(7,758)
-
-
-
341,912
414,616
50,266
75,399
Greatland Pty Ltd’s lease of 5 years for office premises expires on 30 November 2023. The subsidiary
Company has the option to extend the lease for a further 5 year term, expiring on 30 November 2028.
Greatland Gold plc’s initial lease of 24 months for office premises expired on 30 November 2020. The parent
Company has extended the lease for a further 24 month terms, expiring on 30 November 2022.
14
Investments in subsidiary – Company
Cost
At 30 June 2020
Impairment of investment
At 30 June 2021
Net book amount
At 30 June 2021
At 30 June 2020
£
50,000
-
50,000
50,000
50,000
The parent company of the Group holds more than 20% of the share capital of the following company:
Company
Country of
registration
Class
Proportion
held
Nature of business
Greatland Pty Ltd
Australia
Common
100%
Mining development and exploration
of precious and base metals
The registered address of Greatland Pty Ltd is Unit B9, 431 Roberts Road, Subiaco, WA, 6008
62
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
15
Trade and other receivables
Group
Company
Current trade and other receivables:
Other debtors
Loans due from subsidiary
2021
£
2020
£
2021
£
2020
£
78,198
23,865
-
-
-
-
13,846,748
11,346,748
Total current trade and other receivables
78,198
23,865
13,846,748
11,346,748
The loan due from subsidiary was interest free throughout the period and has no fixed repayment date. No
provision £nil (2020: £nil) has been made against this loan. Details in regards to significant accounting
judgments, estimates and assumptions associated with the recoverability of the loan due from subsidiary are
described in note 1.2.
16
Provisions
Non-current provisions
Rehabilitation provision
Total non-current provisions
Movement in rehabilitation provision
Opening balance
Arising during the year
Closing balance
Group
Company
2021
£
2020
£
2021
£
2020
£
3,813,372
3,813,372
-
-
-
-
-
-
Group
Company
2021
£
-
3,813,372
3,813,372
2020
£
2021
£
2020
£
-
-
-
-
-
-
-
-
-
Details in regards to significant accounting judgments, estimates and assumptions associated with the
rehabilitation provision are described in note 1.2.
63
Notes to financial statements
for the year ended 30 June 2021, continued
17
Borrowings
Amount owed to third parties
Total borrowings
Opening balance
Drawings during the year
Accrued interest during the year
Total outstanding
Greatland Gold plc
Company number: 5625107
Group
Company
2021
£
2020
£
2021
£
2020
£
12,189,790
12,189,790
-
11,925,354
264,436
12,189,790
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The amount owing to third parties relates to amounts owing to Newcrest Operations Limited under a loan
agreement dated 29 November 2020 in respect of the Havieron Joint Venture (“Havieron”)
In relation to the Havieron Joint Venture, the loan has 2 parts being Facility A and Facility B with values of
US$20 million and US$30 million respectively. Facility B will come into effect on the date on which the
Stage 4 commitment is satisfied by the lender. Interest is calculated on the LIBOR rate plus a margin of 8%
pa. Interest is calculated every 90 days. The loan balance as at 30 June 2021 in relation to Havieron is
£12,189,790 (AU$22,420,891).
18
Payables and other liabilities
Group
Company
Current payables and other liabilities:
Trade creditors
Accruals
Salaries and social security
Other creditors
Employee benefits
Lease liability
2021
£
2020
£
2021
£
3,136,688
668,514
169,293
41,175
113,265
64,830
102,607
54,947
64,481
29,700
-
114,015
56,049
41,175
113,265
64,830
461
24,107
Total current payables and other liabilities
3,513,512
932,759
413,131
Non-current payables and other liabilities:
Employee benefits
Lease liability
Total non-current payables and other liabilities:
33,341
293,452
326,793
34,592
356,126
390,718
-
13,399
13,399
2020
£
73,344
64,481
29,700
-
511
24,440
192,476
-
37,506
37,506
Total payables and other liabilities
3,840,305
1,323,477
426,530
229,982
Current employee benefits relate to annual leave and non-current benefits relates to long service leave.
Lease payments payable:
Current (< 1 year)
2-5 years
> 5 years
Group
2021
£
54,947
219,278
74,174
348,399
Group Company
2021
£
2020
£
Company
2020
£
56,049
234,429
121,697
412,175
24,107
13,399
-
37,506
24,440
37,506
-
61,946
64
Notes to financial statements
for the year ended 30 June 2021, continued
19
Share capital
Greatland Gold plc
Company number: 5625107
Called up, allotted, issued and fully paid
As at 30 June 2020, Ordinary shares of £0.001 each
Issued during the year
On 02 July 2020, at a price of £0.014, for cash
On 24 July 2020, at a price of £0.02, for cash
On 29 July 2020, at a price of £0.025, for cash
On 04 August 2020, at a price of £0.025, for cash
On 01 September 2020, at a price of £0.025, for cash
On 25 September 2020, at a price of £0.02, for cash
On 25 September 2020, at a price of £0.007, for cash
On 28 September 2020, at a price of £0.025, for cash
On 28 September 2020, at a price of £0.03, for cash
On 29 September 2020, at a price of £0.025, for cash
On 29 September 2020, at a price of £0.03, for cash
On 01 October 2020, at a price of £0.025, for cash
On 02 November 2020, at a price of £0.025, for cash
On 31 December 2020, at a price of £0.025, for cash
On 28 January 2021, at a price of £0.025, for cash
On 28 January 2021, at a price of £0.03, for cash
On 28 January 2021, at a price of £0.007, for cash
On 01 February 2021, at a price of £0.025, for cash
On 01 March 2021, at a price of £0.025, for cash
On 01 April 2021, at a price of £0.025, for cash
On 06 April 2021, at a price of £0.025, for cash
On 06 April 2021, at a price of £0.03, for cash
On 06 May 2021, at a price of £0.02, for cash
On 03 June 2021, at a price of £0.02, for cash
On 30 June 2021, at a price of £0.025, for cash
As at 30 June 2021, Ordinary shares of £0.001p each
Number
3,760,206,631
Share issue
cost
(218,878)
£
3,760,207
14,000,000
5,000,000
1,250,000
1,591,893
11,891,892
6,000,000
2,500,000
13,000,000
5,000,000
3,000,000
3,000,000
32,816,214
13,763,512
5,645,404
5,000,000
5,000,000
2,500,000
6,996,487
2,351,351
5,216,218
9,000,000
9,000,000
9,000,000
14,000,000
540,541
3,947,270,143
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(218,878)
14,000
5,000
1,250
1,592
11,892
6,000
2,500
13,000
5,000
3,000
3,000
32,816
13,764
5,645
5,000
5,000
2,500
6,996
2,351
5,216
9,000
9,000
9,000
14,000
541
3,947,270
Total share options in issue
As at 30 June 2021 there were 103,250,000 unexercised options over Ordinary shares; 25 million exercisable at
0.2 pence per share in issue, 14 million exercisable at 0.28 pence per share in issue, 7.5 million exercisable at 0.7
pence per share in issue, 5.5 million exercisable at 1.4 pence per share in issue, 5.5 million exercisable at 2 pence
per share in issue, 25.75 million exercisable at 2.5 pence per share in issue, 15 million exercisable at 3.0 pence
per share in issue and 5 million exercisable at 25 pence per share in issue. (2020: 204.5 million).
Total warrants in issue
As at 30 June 2021 there were 17,027,028 million unexercised investor warrants over Ordinary shares at 2.5 pence
outstanding. Since the year end all remaining warrants over Ordinary shares at 2.5 pence were exercised. No expense
was recorded in the year in respect of these warrants.
65
Greatland Gold plc
Company number: 5625107
Notes to financial statements
for the year ended 30 June 2021, continued
20 Share based payments
The Company grants share options to employees as part of the remuneration of key management personnel and
directors to enable them to purchase ordinary shares in the Company. Under the plan, 5 million options were
granted for no cash consideration for a period of five years expiring on 04 May 2026. The share options outstanding
at 30 June 2021 had a weighted average remaining contractual life of 1.6 years (2020: 2.4 years). Maximum term of
new options granted was 5 years from the grant date. The weighted average exercise price of share options as at
the date of exercise is £0.0177 (2020: £0.0073). The share options outstanding at 30 June 2021 had a range of
exercise prices between £0.0020 and £0.2500.
Granted during
the period
Unexercised at
30 June 2020
Share options
exercised
Unexercised at
30 June 2021
Exercise price
(pence)
Date from which
exercisable
Expiry
date
C Baxter
C Baxter
C Baxter
C Baxter
A Borrelli
A Borrelli
A Borrelli
A Borrelli
A Borrelli
G Heddle
G Heddle
G Heddle
G Cryan
G Cryan
G Cryan
G Cryan
G Cryan
B Wasse
B Wasse
B Wasse
C Latcham
C Latcham
C Latcham
M Sawyer
M Sawyer
M Sawyer
T Harris
T Harris
J Janik
J Janik
S Day
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14,000,000
0.28p
18 Jan 2017
18 Jul 2022
14,000,000
(14,000,000)
14,000,000
(14,000,000)
-
-
9,000,000
9,000,000
25,000,000
14,000,000
7,500,000
2,500,000
2,500,000
-
-
-
-
-
-
-
9,000,000
9,000,000
25,000,000
7,500,000
2,500,000
2,500,000
14,000,000
(14,000,000)
9,000,000
(9,000,000)
9,000,000
(9,000,000)
5,000,000
(5,000,000)
-
-
-
-
3,000,000
3,000,000
1,500,000
1,500,000
-
-
-
-
3,000,000
3,000,000
1,500,000
1,500,000
6,000,000
(6,000,000)
3,000,000
(3,000,000)
3,000,000
(3,000,000)
-
-
-
10,000,000
(1,250,000)
8,750,000
1,500,000
1,500,000
-
-
1,500,000
1,500,000
10,000,000
(2,000,000)
8,000,000
3,000,000
(3,000,000)
3,000,000
(3,000,000)
5,000,000
(5,000,000)
5,000,000
(5,000,000)
5,000,000
(5,000,000)
5,000,000
(5,000,000)
-
-
-
-
-
-
1.4p
2.0p
2.5p
3.0p
0.2p
07 Sep 2019
06 Sep 2022
07 Sep 2019
06 Sep 2022
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
20 Apr 2016
20 Apr 2021
0.7p
1.4p
2.0p
2.0p
2.5p
3.0p
0.7p
1.4p
2.0p
2.5p
3.0p
2.0p
2.5p
3.0p
2.5p
2.5p
3.0p
2.5p
2.5p
3.0p
2.5p
3.0p
2.5p
3.0p
18 Aug 2017
16 Feb 2021
07 Sep 2019
06 Sep 2022
07 Sep 2019
06 Sep 2022
07 Sep 2019
06 Sep 2022
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
18 Aug 2017
16 Feb 2021
07 Sep 2019
06 Sep 2022
07 Sep 2019
06 Sep 2022
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
07 Sep 2019
06 Sep 2022
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
21 Mar 2020
20 Mar 2023
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
21 Mar 2020
20 Mar 2023
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
26 Sep 2020
25 Sep 2023
08 Jan 2021
07 Jan 2024
08 Jan 2021
07 Jan 2024
5,000,000
-
-
5,000,000
25.0p
05 May 2024
04 May 2026
5,000,000
204,500,000
(106,250,000)
103,250,000
66
Greatland Gold plc
Company number: 5625107
Notes to the financial statements
for the year ended 30 June 2021, continued
20 Share based payments, continued
The fair value of the 5 million options granted on 05 May 2021 using an adjusted Black-Scholes method and
assumptions were as follows:
Options issued
Grant date
Fair value at measurement date
Share price at grant date
Exercise price
Expected volatility
Vesting period: 3 years after grant
Option life
Expected dividends
Risk free interest rate
Discount
5 million share options
05 May 2021
0.764 pence
20.1 pence
25 pence
51%
05 May 2024
60 months
0.00%
0.50%
40%
Fair value of options granted
£229,420
The fair value of these share options expensed during the year was £11,794, being the value of the options
attributable to the vesting period to 30 June 2021 (2020: £154,492). £76,473, £76,473 and £64,680 will be
expensed in the following years, being the value of these options attributable to the end of their vesting dates.
£221,028 in respect of the exercised share options was transferred to reserves (2020: £116,945).
The volatility is set by reference to the historic volatility of the share price of the Company.
21 Cash and cash equivalents – Group
Cash at bank and in hand
Total cash and cash equivalents
30 June 2021
£
Currency
adjustments
£
Net Cash
flow
£
30 June 2020
£
6,212,057
6,212,057
(42,915)
232,227
6,022,745
(42,915)
232,227
6,022,745
Cash and cash equivalents – Company
Cash at bank and in hand
Total cash and cash equivalents
30 June 2021
£
5,168,498
5,168,498
Currency
adjustments
£
-
Net Cash
flow
£
910,578
30 June 2020
£
4,257,920
-
910,578
4,257,920
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate
cash requirements of the Group, and earn interest at the respective short-term deposit rates.
67
Greatland Gold plc
Company number: 5625107
Notes to the financial statements
for the year ended 30 June 2021, continued
22 Commitments
As at 30 June 2021, the Company had entered into the following commitment:
Exploration commitments
Ongoing exploration expenditure is required to maintain title to the Group mineral exploration permits. No
provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled
in the normal course of the operations of the Group.
Tenement rental and expenditure commitments
The Company is required to maintain current rights of tenure to tenements, which require outlays of expenditure. A
tenement will be liable to forfeiture if the expenditure conditions, specified within the terms of the grant, are not
complied with. The Company has a 100% share of the tenement rental and expenditure commitments of:
Lease payments payable:
Current (< 1 year)
2-5 years
> 5 years
Group
2021
£
Group Company
2021
£
2020
£
Company
2020
£
314,519
527,370
805,734
1,647,623
406,673
505,079
-
911,752
-
-
-
-
-
-
-
-
23
Significant agreements and transactions
On 29 November 2020, Greatland signed a series of agreements in relation to the Havieron project variously
between Newcrest Operations Limited ("Newcrest"), Greatland Gold plc ("Greatland") and Greatland Pty Ltd
("GPL") including a Joint Venture and Loan Agreement for the Havieron project and Joint Venture Agreement
for the Black Hills and Paterson Range East licences.
There were no other significant agreements and transactions to report other than those reported in Note 24.
68
Greatland Gold plc
Company number: 5625107
Notes to the financial statements
for the year ended 30 June 2021, continued
24
Events after the reporting period
Post-Balance Sheet Capital Raises and issue of options
On 1 July 2021 the Company announced that during June 2021, it had issued 540,541 new ordinary shares of 0.1p
each from its block listing authority of 10 February 2020 for a total consideration of £13,514.
On 29 July 2021 the Company received a binding option exercise notice from Clive Latcham for 250,000 options
at 3.0 pence per share for a total consideration of £7,500.
On 2 August 2021 the Company announced that during July 2021, it had issued 6,216,216 new ordinary shares of
0.1p each from its block listing authority of 10 February 2020 for a total consideration of £155,405.
On 1 September 2021 the Company announced that during August 2021, it had issued 10,810,812 new ordinary
shares of 0.1p each from its block listing authority of 10 February 2020 for a total consideration of £270,270.
Corporate
On 8 July 2021, the Company announced the appointment of Christopher Toon as Chief Financial Officer of the
Company, in a non-Board role, with effect from 12 July 2021
On 20 July 2021, the Company announced the release of a new corporate presentation.
On 11th August 2021, the Company announced the appointment of Otto Richter as Group Mining Engineer with
effect from 16 August 2021
On 25 August 2021 the Company announced the appointment of Paul Hallam as a Non-Executive Director and
the stepping down of Callum Baxter in his full time role as Chief Technical Officer and Executive Director on 31
August 2021. The Company also announced the establishment of a Technical Advisory Committee.
On 16 September 2021, the Company announced it had entered into an agreement with Province resources Limited
to acquire the 100% owned Pascalle tenement, the 100% owned Taunton tenement and two tenement applications
for exploration licences in the Paterson Province of Western Australia for a consideration of cash and shares.
On 7 October 2021, the Company announced the planned release of the pre-feasibility study results at the Havieron
gold-copper deposit in the Paterson region of Western Australia on 12 October 2021
On 12 October 2021, the Company announced the release of a Pre-Feasibility Study on the South-East Crescent of
Havieron
On 12 October 2021, the Company announced the release of a new corporate presentation
On 18 October 2021, the Company announced it has been awarded winner of the 2021 Commodity Discovery
Fund award for its Havieron discovery
On 19 October 2021, the Company announced it and its joint venture partner Newcrest Mining Limited had
advanced to Stage 2 of the Juri Joint Venture
25 Related party transactions
Remuneration of key management personnel
The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate
for each of the categories specified in IAS24 Related Party Disclosures. See note 8 for further information.
Short-term employee benefits
Share based payments
2021
£
1,348,676
20,249
1,368,925
2020
£
1,708,920
154,492
1,863,412
69
Notes to the financial statements
for the year ended 30 June 2021, continued
26 Financial instruments – Group
The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its
operations.
Greatland Gold plc
Company number: 5625107
Group
2021
£
Group Company Company
2020
£
2020
£
2021
£
Financial assets at amortised cost
Trade and other receivables
Cash and cash equivalents
Financial liabilities
Trade and other payables (at amortised cost)
Lease liabilities (current and non-current)
Provisions
Borrowings
78,198
6,212,057
6,290,255
23,865
6,022,745
6,060,810
-
5,168,498
5,168,498
-
4,257,920
4,257,920
3,491,906
348,399
3,813,372
12,189,790
19,843,467
911,301
412,175
-
-
1,323,476
389,024
37,506
-
-
426,530
168,036
61,946
-
-
229,982
The Group’s exposure to currency and liquidity risk is not considered significant. The Group’s cash balances are
held in Pound Sterling and in Australian dollars, the latter being the currency in which the significant operating
expenses are incurred. To date the Group has relied upon equity funding to finance operations. The Directors are
confident that adequate cash resources exist to finance operations to commercial exploitation, but controls over
expenditure are carefully managed.
The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial
statements. The currency of the financial assets is as follows:
Cash and short term deposits
30 June 2021
30 June 2020
Sterling
Australian Dollars
At 30 June 2021
The financial assets comprise interest earning bank deposits.
27 Contingent liabilities
Acquisition of Havieron Project
£
5,168,498
1,043,559
6,212,057
£
4,257,920
1,764,825
6,022,745
Under the terms of the agreement for the acquisition of the Havieron Gold Project an initial payment of A$25,000
in cash and 65,490,000 ordinary shares of 0.1 pence each in the Company were made. However, a second payment
of 145,530,000 ordinary shares of 0.1 pence each will be made upon a “Decision to Mine”.
28 Ultimate Controlling Party
There is considered to be no ultimate controlling entity.
70