ANNUAL REPORT
2021
CONTENTS
CORPORATE PARTICULARS ...................................................................................................................................... 1
CHAIRMAN AND MANAGING DIRECTOR’S REVIEW ................................................................................................. 2
OPERATIONS REPORT ................................................................................................................................................ 3
DIRECTORS' REPORT ............................................................................................................................................... 24
AUDITOR’S INDEPENDENCE DECLARATION .......................................................................................................... 36
DIRECTORS’ DECLARATION ..................................................................................................................................... 37
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........................ 38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ....................................................................................... 39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ....................................................................................... 40
CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................................................... 41
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS ...................................... 42
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF HORIZON MINERALS LIMITED ..................................... 71
SHAREHOLDER INFORMATION ................................................................................................................................ 75
About Horizon Minerals Limited
Horizon Minerals Limited (Horizon and the Company) is an emerging mid-tier gold producer with high quality projects
located in the heart of the West Australian goldfields. The Company is led by a Board and Management team with deep
experience developing and operating successful gold mines within the Kalgoorlie region.
Horizon has a large tenement holding which hosts over a million ounces of gold in Resources and has significant open
cut and underground growth potential.
Corporate Governance
The Company has adopted the 4th Edition of the ASX Corporate Governance Recommendations. A summary statement
which has been approved by the Board together with current policies and charters is available on the Company website
at the following address www.horizonminerals.com.au.
CORPORATE PARTICULARS
DIRECTORS
Ashok Parekh
Non-Executive Chairman
Peter Bilbe
Non-Executive Director
Jonathan Price
Managing Director
COMPANY SECRETARY
Julian Tambyrajah
Chief Financial Officer & Company Secretary
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
163-167 Stirling Highway
NEDLANDS WA 6009
Telephone +61 8 9386 9534
Email
info@horizonminerals.com.au
POSTAL ADDRESS
PO Box 1104
NEDLANDS WA 6909
SHARE REGISTRY
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
PERTH WA 6000
Telephone 1300 787 272
AUDITORS
PKF Perth
Level 5
35 Havelock Street
WEST PERTH WA 6005
Telephone +61 8 9426 8999
STOCK EXCHANGE LISTING
Australian Securities Exchange
Home Exchange: Perth
Code: HRZ
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CHAIRMAN AND MANAGING DIRECTOR’S REVIEW
Dear Shareholder
The 2021 financial year has been one of significant progress for the Company and a year with improving sentiment and
strong commodity prices for the resources sector in general. The Company responded to the COVID-19 pandemic putting
in prudent measures to ensure business continuity and minimising risk to employees and the communities in which we
operate. The impact initially restricted progress but quickly returned to business as usual despite some delays.
With continuing concerns around the global economy, COVID-19, trade wars and increased geopolitical tension, the safe
haven of gold has seen the US$ gold price maintained around the US$1,800 per ounce mark. With the Australian dollar
gold price holding between A$2,400-A$2,500 and the industry’s focus on organic growth, M&A and reducing costs of
production, Australia is now globally competitive and attracting investment both domestically and internationally.
Locally, Western Australia and the goldfields region has had another exceptional year with the mid-tier producers
reporting continued record production, cash balances and performance metrics putting them well and truly on the world
stage. Whereas organic growth had been the focus in 2019, more corporate activity is now clearly evident with the larger
cashed up companies completing major mergers and acquisitions both domestically and overseas. The recent merger
between Northern Star and Saracen has changed the landscape in the local region and put further consolidation at asset
and corporate level clearly in the frame.
The 2021 financial year saw much-improved capital market for junior explorers and emerging developers with a record
amount of capital raised. This has enabled a significant increase in exploration activity across the region and presented
challenges with sourcing drill rigs, staff and marked delays in assay turnaround times. The COVID-19 pandemic has also
been a major contributor to this, and future labour shortages and equipment availability will continue to be challenging in
the years ahead.
The Company continued progressing the consolidated Feasibility Study with the aim of generating an initial 5-year mine
plan to underpin the construction of a stand-alone processing plant at Boorara, 10km east of Kalgoorlie-Boulder. As part
of this Study, trial mining and toll milling of the Boorara deposit was successfully completed providing valuable geological,
mining and metallurgical information to de-risk the larger scale development and generated A$3.6 million in cash.
The trial enabled the compilation of a new geological model delivering a 34% uplift in resource grade and provided real
time milling data for plant design including excellent gold recoveries of 94.5% with a high gravity recovery component.
Boorara has the potential to provide long life base load feed supported by multiple open pit and underground satellite
mines in close proximity to a stand-alone processing plant at Boorara where power, water and support services are at
hand with staff travelling 15 minutes to site from the city of Kalgoorlie-Boulder.
The Company commenced its largest ever drilling program with 70,000m planned across the portfolio. Of this, 20,000m
was completed for reserve generation in 2020 at the six core assets making up the initial production profile. In 2021, the
50,000m new discovery and project generation drilling program commenced with up to four rigs on site testing multiple
high priority targets with immediate success at the Windanya and Binduli project areas.
In line with our strategy of focussed gold development within close proximity to Boorara, the Company divested its interest
in the Nanadie Well copper project for $1.5 million in cash and shares. Our listed investments which totalled over A$4.2
million at year end provide shareholders with exposure to other commodities and jurisdictions outside of the Kalgoorlie
area.
The Company also completed a number of acquisitions during the year to further consolidate assets on the major shear
zones within a 75km radius of the proposed Boorara Mill. The acquisition of the Bulong South, Glandore and Cowarna
project areas provides an early production opportunity at the Cannon underground mine and significant exploration
upside across the 180km2 of tenure. The 50:50 joint venture with Orminex over the Penny’s Find underground project
also presents a near term production opportunity to generate cash during the completion of the Feasibility Study.
Our non-gold joint venture partners progressed during the year as did discussions with new potential partners that can
provide mutual benefit. The Joint Venture with RVT covering the world class 1.8Bt Richmond Vanadium project
progressed well with the completion of the Lilyvale PFS with the JV partners now moving to complete the DFS in 2022
and continue discussions with potential offtake partners and financiers.
We’d like to take the opportunity to thank all our Board members, staff, operational and drilling contractors, external
consultants and you, our shareholders, for your support during the year. The Horizon team look forward to keeping you
fully informed as the business grows in what will be another very exciting year ahead.
Jon Price
Managing Director
Perth, WA
10 September 2021
Ashok Parekh
Chairman
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OPERATIONS REPORT
CORPORATE
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company recognises the importance of Environmental, Social and Governance (ESG) factors and is committed to
continuous improvement in this regard. During the year, a review commenced of all internal policies, procedures,
governance principles to identify improvements and opportunities to ensure we meet or exceed our social license to
operate. The next step is to engage an external independent expert to complete an audit and gap analysis.
ISSUED CAPITAL
At 30 June 2021, Horizon Minerals Limited had 567,975,200 fully paid ordinary shares on issue.
COMPANY INVESTMENTS
At 30 June 2021, Horizon held the following listed and unlisted investments:
Company
Securities
ASX
Kingwest Resources Ltd
Ordinary Shares KWR
Reward Minerals Ltd
Ordinary Shares RWD
Cyprium Metals Ltd
Ordinary Shares CYM
TNT Mines Ltd
Ordinary Shares
TNT
Exercise Date
and Price
Number
Spot Value at
30 June 2021
-
-
-
-
30,833,333
$2,435,833
7,151,109
$929,644
2,509,750
$627,438
1,520,534
$243,285
TNT Mines Ltd
Unlisted Options TNT
1/10/2024 @ 25c
540,291
TNT Mines Ltd
Unlisted Options TNT
1/10/2024 @ 25c
475,971
TOTAL
-
-
$4,236,200
At 30 June 2021, the Company had cash on hand of approximately $11.3 million.
DIVESTMENT OF ROYALTIES
Horizon owns a $0.50/t mining royalty that relates to ore mined and treated from Mining Lease M26/446 located
approximately 10km west of Kalgoorlie-Boulder in Western Australia (Figure 2).
During the year, royalties received from the royalty tenement totalled $179,250.
In 2018, Horizon divested its interest in the Lehmans Gold joint venture to Saracen Mineral Holdings (now Northern Star
Resources) for A$2.5 million in cash. As part of the divestment, a 2.5% Net Smelter Royalty is payable once production
reaches 42,000 ounces from the Otto Bore tenements and ends on production of 100,000 ounces.
On 29 March 2021, Horizon announced a Royalty Sale Agreement to Vox Royalty Corp. (TSX: VOX) (Vox) which included
the Janet Ivy Production Royalty and the Otto Bore (Saracen Mineral Holdings now Northern Star Resources) Production
Royalty. Vox paid A$4 million in cash at Completion and a further A$3 million in cash or Vox shares at Vox’s election
(priced on a 30-day VWAP basis) upon Vox receiving cumulative payments of A$750,000 from the transaction royalties.
DIVESTMENT OF MENZIES AND GOONGARRIE GOLD PROJECTS
As announced to the ASX on 9 July 2019, the Company agreed to divest its 100% interest in the Menzies and Goongarrie
gold projects to Kingwest Resources Ltd (ASX: KWR, Kingwest) for a total consideration of A$8 million on the following
terms:
An initial deposit of $750,000.
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OPERATIONS REPORT
CORPORATE
DIVESTMENT OF MENZIES AND GOONGARRIE GOLD PROJECTS (CONTINUED)
On settlement:
o A further $1 million in cash; and
o
Issuing 20M ordinary shares in Kingwest to Horizon at a deemed issue price of $0.15 per share
subject to voluntary escrow from date of issue of (a) 18 months following settlement and (b) 3 months
following the payment of the deferred consideration.
A deferred payment no later than 18 months after settlement of:
o A further $1.625 million in cash; and
o
$1.625m in value of shares in Kingwest at a deemed price being the lower of $0.15 per share and the
30 day VWAP (subject to shareholder approval and Horizon not exceeding 19.9% ownership in
Kingwest).
The Company has now received the deferred $1.625 million cash payment and 10.83 million shares in Kingwest, taking
the total shareholding to 30.83m shares representing 18.7% of the issued capital.
Horizon is a substantial shareholder in Kingwest with Board representation and a right to process or purchase any ore
from the sale tenements under standard commercial terms. For further details on the divestment, please see the
announcement of 9 July and 18 September 2019.
EXPLORATION AND EVALUATION
OVERVIEW
The Company continued to advance and build up its gold project portfolio in Western Australia. In addition, the Company’s
joint venture partners were active across multiple earn in projects including the exciting Richmond vanadium project in
Queensland. This year, trial mining operations at Boorara were completed, with mine evaluation and exploration
continuing to be the main focus as part of the consolidated Feasibility Study and the regional drilling programs across
the portfolio.
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OPERATIONS REPORT
EXPLORATION AND EVALUATION
OVERVIEW (CONTINUED)
The locations of all WA projects are shown in Figure 1.
Figure 1
Horizon Minerals Ltd WA Projects
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OPERATIONS REPORT
OVERVIEW (CONTINUED)
The Company operates 100% owned gold projects in the Kalgoorlie and Coolgardie Regions and has an earn-in Joint
Venture (JV) at the Richmond vanadium project located in Queensland. Over 30,000m of drilling was completed during
the 2021 financial year.
New gold acquisitions to expand the Kalgoorlie and Coolgardie area portfolio included Kalpini, Penny’s Find JV and
Cannon (Figure 2). Technical programs on these projects included data compilation, exploration targeting, drilling,
geological modelling and mine evaluation. Key activities conducted during the year are outlined below.
Figure 2
Horizon Minerals Ltd Kalgoorlie Area Gold Projects Location Map
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OPERATIONS REPORT
BOORARA GOLD PROJECT AREA
The Boorara Gold Project (BGP) area comprises the 100% owned 448,000oz Boorara gold mine, the Golden Ridge
project to the south and the Kanowna South and Balagundi prospects to the north (Figure 2). During the year, activities
focussed on de-risking the larger scale development at Boorara as part of the consolidated feasibility study, which
included stage 1 trial mining to increase confidence in the updated Mineral Resource Estimate (MRE). During the year
the Company acquired the following projects Kalpini, Penny’s Find JV and Cannon which all had substantial existing
resources, these new projects will be included in the BGP consolidated Feasibility Study.
BOORARA GOLD PROJECT – TRIAL MINING
The Boorara gold mine is located 15km east of Kalgoorlie in Western Australia (Figure 2 and 4). Three trial pits at Regal
East, Regal West and Crown Jewel were mined between April and completed in August 2020, six weeks ahead of
schedule with toll milling undertaken at the nearby Lakewood processing plant from July 2020 to February 2021.
In total, 513k BCM was mined from the three trial pits in 2020 with total ore mined (high and low grade) of 267kt at a
mine claimed grade of 1.23g/t Au for 10,560oz mined. Of this, 138kt of the higher-grade material was processed over
four toll milling campaigns with a reconciled mill feed grade of 1.45g/t Au and a gold recovery of 94.7%. A 17kt parcel of
lower grade was also milled to test grade allocation processes.
The Regal East pit produced 82kt grading 1.45g/t Au with tonnage and grade within expectations, the Regal West pit
underperformed at a grade of 1.29g/t Au with difficulty in allocating high and low-grade material. The Crown Jewel pit
produced 18kt grading 1.8g/t Au with a significant tonnage of high-grade ore left in the pit due to wall stability issues
making mining the final flitches unsafe. This ore will be available for mining during the larger scale development.
Gold production from the trial totalled 6,568oz at 94.5% recovery generating A$16.8 million in revenue at an average
sale price of $2,551/oz.
The trial generated A$3.6 million in free cash flow after all costs and enabled an extensive review of the geology, mining
parameters, metallurgy and processing parameters to de-risk the larger scale development under assessment as part of
the consolidated Feasibility Study.
Key learnings from the trial include:
Demonstrated presence of high grade flat lying cross cutting vein arrays within the deposit in addition to the
contact lodes that make up the historic resource model
Segregation of the individual higher-grade lodes within the deposits is very difficult with limited visual control
within the various dolerite mineralisation styles
Optimal larger scale development by mining and processing the entire deposit for maximum resource
recovery and minimal dilution
Excellent metallurgical performance with recoveries averaging 94.5% at an optimal grind size of 106µm via a
conventional CIL/CIP processing plant
High gravity recovery of >40% requiring design and installation of enlarged gravity circuit
Low to moderate reagent consumption and negligible viscosity issues encountered
Processing of the ore at the Boorara mine site avoiding haulage and third-party toll milling charges that made
up a significant portion of the cost base
The trial and pit mapping were considered highly successful in providing a greater understanding of the deposits and
highlighting a number of opportunities to optimise grade control practises, mining and processing. Boorara is a very large
baseload orebody and can be de-risked by bulk open pit mining and processing on site avoiding additional haulage and
toll milling costs.
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OPERATIONS REPORT
BOORARA GOLD PROJECT – TRIAL MINING (CONTINUED)
Figure 3
Horizon Minerals Ltd Mining at the Boorara gold mine looking North. 2016 Royal trial pit in foreground,
Regal East and West trial pits to the North, and Nimbus Discovery pit to the North‐East.
Extensive structural geology mapping was completed at all four trial pits by independent expert Dr Gerard Tripp who
confirmed the presence of multiple flat lying, cross cutting vein arrays within the deposit in addition to the main NNW
striking contact lode. This information, along with all drilling, trial mining and toll milling data has been reviewed, validated
and incorporated into the drilling database and used to compile an updated independent Mineral Resource Estimate
compliant with the JORC 2012 Code by geological consultants, Optiro. The updated 2021 open cut Mineral Resource
Estimate now stands at:
11Mt grading 1.26g/t Au for 448koz at 0.5g/t Au lower cut-off grade
The updated April 2021 MRE as a direct comparison of the Cube 2018 MRE to 200m depth shows a significant increase
in grade from 0.94g/t Au to 1.26g/t Au. Total gold decreases from 474,000oz (excluding the trial mining depletion of
8,100oz) to 448,000oz, a small 4% reduction. This result is largely due to improved modelling of the flat lodes at Regal
and also at Royal and Crown Jewel.
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OPERATIONS REPORT
BOORARA GOLD PROJECT – TRIAL MINING (CONTINUED)
The April 2021 Mineral Resource model (after depletion from trial mining) shows a reduction in tonnage offset by a 34%
increase in grade which was the main aim of the trial. The inclusion of the cross cutting flat lying vein arrays in addition
to the main contact lode has potential to significantly improve the economics of the project with a high metal content per
vertical metre.
Figure 4
Horizon Minerals Ltd Plan view of the Regal, Royal and Crown Jewel deposits
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OPERATIONS REPORT
BOORARA GOLD PROJECT AREA – EXPLORATION
The current Boorara resource comprises 1.8km of strike and sits with in the greater Boorara area covering over 25km of
strike length from Golden Ridge in the south to Kanowna and Balagundi to the north (Figure 5). During the year, a detailed
target generation study was completed across the portfolio and a number of high priority drill targets identified in
previously untested areas. Both near mine extension drilling and new discovery drilling is planned in FY2021 across both
the Boorara and Lakewood project areas.
Figure 5
Horizon Minerals Ltd Boorara project area, geology and historic drilling results
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OPERATIONS REPORT
TEAL GOLD PROJECT AREA – EXPLORATION
The Teal project area comprises the 100% owned Teal, Jacques Find, Yolande and Peyes Farm projects and is located
12km northwest of Kalgoorlie and 22km from the proposed Boorara Mill (Figures 2 and 6).
In FY21, 11,359m of resource and extension drilling was completed at the Teal project area. Technical work completed
included resource model review, preliminary mining studies for Teal Stage 3, Jacques Find and Peyes Farm and
metallurgical assessment. This program will target additional high grade oxide and transitional open pit ore as
demonstrated by the successful Teal Stages 1 and 2 developments completed in 2018 when the Company produced
22,000oz grading 3.2g/t Au and 94% recovery and generated $7 million in free cash flow at a A$1,650/oz gold price.
Figure 6
Horizon Minerals Ltd Location Plan Teal-Jacques-Yolande drilling showing recent results
The current Mineral Resource estimate for the Teal project area stands at 4.25Mt grading 2.11g/t Au for 289,000
ounces (at a 1g/t lower cut-off grade) (see Tables and Competent Persons Statement on Page 20).
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OPERATIONS REPORT
BINDULI GOLD PROJECT AREA – EXPLORATION
The Binduli project is located 9km west of Kalgoorlie – Boulder immediately adjacent to the Company’s Teal project area
(Figures 2 and 7). The project area contains the core satellite Crake and Coote projects in the south of the tenement
package and Honeyeater and Kestrel prospects to the north.
During the March Quarter, a total of 47 RC holes for 4,713m to 200m depth were completed at Coote, Honeyeater and
the Kestrel discovery (Figure 3) with excellent results now received including1:
10m @ 2.07g/t Au from 49m including 1m @ 11.09g/t Au from 57m and 5m @ 5.22g/t Au from 94m including
1m @ 18.91g/t Au from 97m (Kestrel)
2m @ 4.19g/t Au from 34m and 1m @ 12.12g/t Au from 72m (Kestrel)
4m @ 11.45g/t Au from 113m including 1m @ 32.4g/t Au from 115m (Honeyeater)
4m @ 5.15g/t Au from 93m including 1m @ 13.54g/t Au from 93m (Honeyeater)
2m @ 1.89g/t Au from 62m, 1m @ 2.70g/t Au from 67m, 17m @ 1.67g/t Au from 78m including 1m @ 11.0g/t
Au from 79m (Coote)
2m @ 1.54g/t Au from 28m, 3m @ 1.10g/t Au from 58m, 10m @ 3.20g/t Au from 68m and 6m @ 1.26g/t Au
from 98m (Coote)
5m @ 2.28g/t Au from 56m, 3m @ 1.90g/t Au from 66m and 2m @ 1.03g/t Au from 71m (Coote)
The geology at Binduli is dominated by the Black Flag Group – a sequence of intermediate and felsic volcanics,
sedimentary rocks and porphyry intrusives. Typically, the area is covered by major North North-West (NNW) shear zones
cutting across the historic Binduli goldfield. Close to West Kalgoorlie are the Crake and Coote deposits which are similar
to the nearby 390,000oz Janet Ivy open pit, located 1,500m south, where the gold is hosted in a structurally controlled
pink feldspar porphyry. At the nearby Fort William and Fort Scott open pits, where over 100,000oz have been produced
to date, gold is hosted within sheared units of volcanics and clastic sediments.
Given the success to date at Binduli, the project has been elevated to one of the top six core projects being advanced
by the Company in the Kalgoorlie region as part of the consolidated Feasibility Study.
Figure 7
Horizon Minerals Ltd Binduli gold project area showing recent drilling results
Elsewhere at Binduli 2992m of drilling tested grass roots style exploration prospects at Darter, Honeyeater and Kestrel
with some encouragement being achieved. Further drilling is progressing in FY22.
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OPERATIONS REPORT
ROSE HILL GOLD PROJECT AREA – EXPLORATION
At Rose Hill, 1 km east of Coolgardie, 2,497m were drilled to infill and confirm historic mineralisation (Figure 8). Detailed
metallurgy, geotechnical and mine planning studies are currently underway. An updated underground resource estimate
comprises0.51Mt grading 4.60 g/t Au for 74,900 ounces (at a 2.0 g/t Au lower cut-off grade) with a open pittable resource
estimate standing at 0.29 Mt grading 2.00 g/t Au for 18,400 oz Au (at a 0.5 g/ Au lower cut-off grade) (see Tables and
Competent Persons Statement on Page 20).
Figure 8
Horizon Minerals Ltd Rose Hill Location Plan showing 2020 drilling results
BADEN POWELL AND WINDANYA GOLD PROJECTS – EXPLORATION
The 100% owned Windanya and Baden Powell project areas are located 45km and 60km northwest of Kalgoorlie
respectively and sit within the highly prospective Bardoc Tectonic Zone (Figures 2 and 8).
During the year, exploration drilling was completed at the Windanya and Baden Powell prospect areas, as part of the
50,000m exploration program. Drilling comprised 57 aircore holes and 21 RC holes for 3,750m to a maximum depth of
138m, infill drilling at Baden Powell and following up excellent results previously intercepted at the Gemini and Scorpio
prospects.
The Windanya group of tenements are located on the western limb of the Mt Pleasant Dome, west of the Bardoc Tectonic
Zone (Figure 8). The stratigraphy comprises a NNW striking sequence of ultramafics (Siberia Komatiite), overlain by
mafic volcanics and intrusives (the Big Dick Basalt, Mt Pleasant Sill (dolerite) and the Bent Tree basalt. The western part
of the project area is dominated by large granite batholiths. Mineralisation is typically hosted within moderate to steep
dipping shears along the contacts. Historic mining exploited narrow (0.1m – 3.0m) quartz reefs which pinch and swell
along strike and dip.
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OPERATIONS REPORT
BADEN POWELL AND WINDANYA GOLD PROJECTS – EXPLORATION (CONTINUED)
Figure 9
Horizon Minerals Ltd Capricorn gold prospect drilling highlights
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OPERATIONS REPORT
BADEN POWELL AND WINDANYA GOLD PROJECTS – EXPLORATION (CONTINUED)
Results from six aircore holes across the new Gemini prospect were released in the March Quarter 2021 with the best
results being found in discovery hole WAC20019 including:
2m @ 26.68g/t Au from 35m including 1m @ 39.71g/t Au from 35m and 1m @ 13.66g/t Au from 36m
1m @ 2.59g/t Au from 40m and 1m @ 4.88g/t Au from 46m
2m @ 4.99g/t Au from 67m
The gold appears to be hosted by a contact related, 35m wide quartz stockwork, within oxidised basalts and dolerite.
Follow up RC drilling (seven holes for 673m) at Gemini also returned encouraging results:
5m @ 4.37g/t Au from 38m including 1m @ 13.68g/t Au from 38m and 3m @ 4.18g/t Au from 53m
(GMRC21001)
1m @ 1.76g/t Au from 65m and 2m @ 1.63g/t Au from 69m (GMRC21004)
The new drilling indicated there was a stronger supergene component and complexity than what was previously known.
Follow up AC and RC drilling is planned in 2021.
Seven AC holes (256m) and nine shallow RC holes (510m) were drilled at the Scorpio prospect (Figure 8) where historic
drilling intersected minor gold (4m @ 0.64g/t Au from 4m). Several shallow high-grade results were intercepted including1:
3m @ 6.44g/t Au from 3m including 1m @ 9.71g/t Au from 3m and 1m @ 8.04g/t Au from 4m (WAC20003)
5m @ 4.90g/t Au from 26m including 1m @ 10.56g/t Au from 27m (WAC21009)
2m @ 12.58g/t Au from 20m including 1m @ 23.59g/t Au from 21m (SCRC21005)
1m @ 17.48g/t Au from 29m (SCRC21011)
The gold appears to be hosted by a contact related, 35m wide quartz stockwork, within oxidised basalts and dolerite.
Historic drilling appears to have been too shallow to effectively test the bedrock.
At Baden Powell (Figure 9), infill pit drilling intersected high-grade mineralisation that could not be tested with regular
drilling outside of the pit area.
Results from the program as announced to the ASX on 26 May 2021 included:
4m @ 3.72g/t Au from 16m and 12m @ 1.46 g/t Au from 32m (BPRC20005)
12m @ 2.37g/t Au from 8m and 4m @ 1.73 g/t Au from 36m (BPRC20008)
4m @ 4.36g/t Au from 16m including 8m @ 1.39 g/t Au from 32m (BPRC20010)
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OPERATIONS REPORT
BADEN POWELL AND WINDANYA GOLD PROJECTS – EXPLORATION (CONTINUED)
Figure 10
Horizon Minerals Ltd Baden Powell gold prospect drilling highlights
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OPERATIONS REPORT
KALGOORLIE REGIONAL GOLD PROJECTS – EXPLORATION
During the year, detailed gravity surveys and reprocessing were completed at Black Flag, Lakewood, Yarmany and
Kanowna. Target generation studies have been completed with exploration drilling scheduled to commence in FY2021.
In addition, significant field work, rock chip sampling, historic mine mapping, geochemical and geophysical reviews were
undertaken to identify priority targets for drilling in FY2021. These prospects included Kanowna south, Balagundi, Golden
Ridge, Nimbus and Gunga West.
Work completed on new acquisitions at Lakewood and Yarmany included data compilation, data base review and desk
top geological studies. The resultant drilling programs will commence in FY2021 pending final granting of the leases. The
low cost acquisitions have increased the Company’s tenure to approximately 850km2.
RICHMOND VANADIUM JV HORIZON 25% – EXPLORATION PROJECT
In March 2017, the Company finalised a strategic development JV with AXF Vanadium Pty Ltd, now Richmond Vanadium
Technologies Pty Ltd (RVT). The JV covers Horizon’s 100% interest in the Richmond vanadium project in North-West
Queensland (Figures 11 and 12) which include metal rights at the nearby Julia Creek project which is owned by Global
Oil Shale Plc. The project tenements cover 1,520km2 of Cretaceous Toolebuc Formation hosting shallow oxide ore within
marine sediments.
Figure 11
Horizon Minerals Ltd Richmond Vanadium Project location
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 1 7
OPERATIONS REPORT
RICHMOND VANADIUM JV HORIZON 25% – EXPLORATION PROJECT (CONTINUED)
Under the JV, RVT has earnt in to 25% of the project by spending A$1 million and committed to spend a further $5 million
by March 2021 to earn in the remaining 50% inclusive of providing a pre-feasibility study.
During FY20, RVT completed a 7,817m drilling program at the Lilyvale vanadium deposit (Figure 12) to infill previous
drilling enabling an updated Mineral Resource Estimate to be compiled at an improved JORC Category for reserve
generation studies to be completed.
Figure 12
Horizon Minerals Ltd (formerly Intermin Resources Limited) Richmond Vanadium Project location
As announced to the ASX on 20 May 2020, the drilling program was highly successful in intercepting remarkably
consistent oxide mineralisation along section with the grade improving relative to the historic resource.
The updated Mineral Resource estimate for the Lilyvale project stands at 560Mt grading 0.48% V2O5 for 2.60Mt of
contained metal (at a 0.30% lower cut-off grade) (see Tables and Competent Persons Statement on Page 22).
Importantly, over 76% of the Lilyvale resource has been upgraded to the Indicated JORC Category enabling detailed
economic evaluation to be completed as part of the Pre-Feasibility Study and generation of an Ore Reserve.
The updated global Mineral Resource estimate for the Richmond project stands at 1,838Mt grading 0.364% V2O5 for
6.65Mt of contained metal (at a 0.30% lower cut-off grade) (see Tables and Competent Persons Statement on Page 22).
As announced to the ASX on 27 October 2020, a positive Pre-Feasibility Study (PFS) was released focussed on the
development of the Lilyvale vanadium deposit. The PFS was based on an initial 20-year life at Lilyvale demonstrating a
financially viable project with the following key metrics:
Shallow open pit mining producing 81.2Mt at a fully diluted grade of 0.49% V2O5 for 15.8Mt of 1.82% V2O5
concentrate with concentrate production on site
Refining overall recovery at 86.1% produces 254,000 tonnes of 98% V2O5 commercial grade flake with
average annual production of 12,700t V2O5
Modest up-front capital costs of US$157.4m and operating cash costs of US$5.53/lb of 98% V2O5 flake
At a spot price of US$7.10/lb V2O5, project generates NPV8% of ~US$150.0M, improving significantly with the
recent increase in vanadium pentoxide flake prices in China
The next steps for the project are to finalise the optionality within the PFS to the next level of study where required in
areas such as determining the optimal power supply for the project along with progressing environmental studies and
preparing the documents for government permitting and approvals. In parallel, discussions shall continue with potential
offtake partners in conjunction with assessing the way forward in relation to the project, including financing or assessing
other options for maximising shareholder benefit from the project.
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P a g e 1 8
OPERATIONS REPORT
NIMBUS SILVER-ZINC PROJECT– EXPLORATION AND EVALUATION
The Nimbus project lies immediately adjacent to the Boorara gold mine (Figures 2 and 5) and was placed on care and
maintenance in 2007 after producing 3.6Moz from 318kt processed at a grade of 353g/t Ag. The old milling circuit has
since been removed and the area rehabilitated.
The Project hosts a high-grade silver zinc Resource of 256kt @ 773g/t Ag and 13% Zn that has been estimated from the
global Nimbus Resource of 12.1Mt @ 52g/t Ag, 0.9% Zn and 0.2g/t Au for a total of 20Moz Ag and 104kt Zn and 78koz
Au (JORC 2012) (see Tables and Competent Persons Statement on Page 22).
Nimbus is a shallow-water and low-temperature VHMS deposit with epithermal characteristics (i.e. a hybrid bimodal felsic
deposit), which is consistent with its position near the margin of the Kalgoorlie Terrane. The current Discovery and East
pits have been subject to extensive drilling highlighting significant potential to extend mineralisation along strike and at
depth below 400m. Regional exploration has been limited to the north and south and considered highly prospective for
further precious and base metal deposits.
Extensive metallurgical test work has been completed on Nimbus ore with the Feasibility Study put on hold in 2014 due
to depressed silver prices. In light of increasing silver and zinc prices and as announced to the ASX on 11 February
2021, the Company will retain the project and engage an independent technical team to complete the DFS in 2021.
During the year, activities focussed on the technical aspects of the geology, mineralogy and concentrate options for the
deposits with the aim of generating separate silver, zinc and potentially gold concentrates for direct sale. Initial
discussions with potential offtake partners have shown significant interest in these concentrates enabling a simplified
process flow sheet to be evaluated at significantly reduced capital and operating costs.
WHITE RANGE GOLD PROJECT (DIVESTED)
The Company has divested of its White Range Gold Project in the Northern Territory to Red Dingo Corporation Pty Ltd.
The Company is currently attending to some clean up issues at the site prior to making application for return of
environmental bonds held by The Department of Primary Industry and Resources in respect of the White Range
tenements.
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P a g e 1 9
OPERATIONS REPORT
Horizon Minerals Limited – Summary of Gold Mineral Resources (at a 1g/t Au cut-off grade)*
Project
Boorara OP3
Jacques Find2
Teal2
Peyes Farm2
Crake2
Rose Hill OP4
Rose Hill UG4
Penny’s Find (50%)1
Gunga West1
Golden Ridge1
Cut-off
grade
(g/t)
0.5
1.0
1.0
1.0
1.0
0.5
2.0
0.6
1.0
Measured
Indicated
Mt
Au
(g/t)
Oz
Mt
1.28
1.23
50,630
7.19
Au
(g/t)
1.27
Oz
Mt
Inferred
Au
(g/t)
Oz
Mt
Total Resource
Au
(g/t)
Oz
294,140
2.56
1.26
103,470
11.03
1.26
448,240
1.60
2.24
114,850
0.32
1.68
17,140
1.91
2.14
131,970
1.01
1.96
63,680
0.80
2.50
64,460
0.31
1.65
16,310
0.22
1.77
12,550
1.81
0.53
2.2
1.7
128,140
28,860
0.46
1.85
27,460
0.48
1.49
22,570
0.33
2.22
23,790
1.27
1.82
73,820
0.19
2.00
12,300
0.09
2.00
6,100
0.29
2.00
18,400
0.33
4.50
47,100
0.18
4.80
27,800
0.51
4.60
74,900
0.07
8.06
19,000
0.05
5.57
9,000
0.12
7.04
28,000
0.71
1.60
36,440
0.48
1.50
23,430
1.19
1.56
59,870
0.47
1.83
27,920
0.05
1.71
2,800
0.52
1.82
30,720
TOTAL
1.94
1.45
90,390
12.24
1.65
648,110
4.99
1.77
284,430
19.18
1.66
1,022,930
*As at 30 June 2021
Confirmation
The information in this report that relates to Horizon’s Mineral Resources estimates is extracted from and was originally
reported in Horizon’s ASX announcements “Intermin’s Resources Grow to over 667,000 Ounces” dated 20 March 2018,
“Crake Gold Project Continues to Grow” dated 10 December 2019, and “Rose Hill firms as quality high grade open pit
and underground gold project” dated 8 December 2020, “Horizon enters high grade underground development JV”, dated
30 November 2020, “Updated Boorara Mineral Resource Delivers a 34% Increase In Gold Grade” dated 27 April 2021,
each of which is available at www.asx.com.au. The Company confirms that it is not aware of any new information or data
that materially affects the information included in the original market announcements and that all material assumptions
and technical parameters underpinning the estimates in those announcements continue to apply and have not materially
changed. The Company confirms that the form and context of the Competent Person’s findings in relation to those Mineral
Resources estimates or Ore Reserves estimates have not been materially modified from the original market
announcements.
Competent Persons Statements
The information in this table that relates to the Penny’s Find, Golden Ridge and Gunga West Mineral Resources(1) is
based on information compiled by Messrs David O’Farrell. Mr O’Farrell is a Member of the Australasian Institute of Mining
and Metallurgy. Mr O’Farrell is a full time employee of Horizon Minerals Ltd. The information was prepared under the
JORC Code 2012. Mr O’Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit
under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in the 2012
edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr O’Farrell
consents to the inclusion in this report of the matters based on their information in the form and context in which they
appear.
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Crake, Teal,
Jacques Find and Peyes Farm Deposits(2) is based on information compiled by Messrs David O’Farrell and Andrew
Hawker. Both are Members of the Australasian Institute of Mining and Metallurgy, Mr O’Farrell is a full time employee of
Horizon Minerals Ltd and Mr Hawker is an independent consultant. The information was prepared under the JORC Code
2012. Messrs O’Farrell and Hawker have sufficient experience that is relevant to the style of mineralisation, type of
deposit under consideration and to the activity that they are undertaking to qualify as a Competent Person as defined in
the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Messrs O’Farrell and Hawker consent to the inclusion in this report of the matters based on their information in the form
and context in which they appear.
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Boorara
Deposit(3) is based upon information compiled by Mr Mark Drabble B.App.Sci.(Geology), a Competent Person who is a
current Member of the Australian Institute of Mining and Metallurgy (MAusIMM) and a Member of the Australian Institute
of Geoscientists (MAIG). Mr Drabble is a Principal Geological Consultant at Optiro Pty Ltd. and an independent consultant
to Horizon Minerals Ltd (HRZ). Mr Drabble has sufficient experience relevant to the style of mineralisation and deposit
type under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Drabble
consents to the inclusion in the report of matters based on his information in the form and context in which it appears.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 2 0
OPERATIONS REPORT
Competent Persons Statements (continued)
The information in this table that relates to the Estimation and Reporting of Gold Mineral Resources at the Rose Hill
Deposit(4) is based upon information compiled by Ms Christine Shore BSc., a Competent Person who is a current Fellow
of the Australian Institute of Mining and Metallurgy (FAusIMM). Ms Shore was a Principal Geological Consultant at Entech
Pty Ltd. and an independent consultant to Horizon Minerals Ltd (HRZ). Ms Shore has sufficient experience relevant to
the style of mineralisation and deposit type under consideration and to the activities being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Ms Shore consents to the inclusion in the report of matters based on her information in
the form and context in which it appears. Open pit resource is defined as surface (~412m RL) to 367.5m RL, UG resource
defined by <367.5m RL.
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OPERATIONS REPORT
Horizon Minerals Limited – Summary of Vanadium / Molybdenum Mineral Resources
Project
Cut-off
grade
(%)
Tonnage
(Mt)
Rothbury (Inferred)
0.30
1,202
Lilyvale (Indicated)
0.30
Lilyvale (Inferred)
0.30
Manfred (Inferred)
0.30
TOTAL
430
130
76
1,838
Grade
Metal content (Mt)
V2O5 (%) Mo (ppm) Ni (ppm)
V2O5
0.31
0.50
0.41
0.35
0.36
259
240
213
369
256
151
291
231
249
193
3.75
2.15
0.53
0.26
6.65
Mo
0.31
0.10
0.03
0.03
0.46
Ni
0.18
0.10
0.03
0.02
0.36
Horizon Minerals Limited – Summary of Silver / Zinc Mineral Resources
Nimbus All Lodes (bottom cuts 12g/t Ag, 0.5% Zn, 0.3g/t Au)
Grade
Category
Tonnes
Grade
Grade
Ounces
Ounces
Tonnes
Measured Resource
Indicated Resource
Inferred Resource
Total Resource
Mt
Ag (g/t)
Au (g/t)
Zn (%)
Ag (Moz)
Au
('000oz)
Zn ('000t)
3.62
3.18
5.28
12.08
102
48
20
52
0.09
0.21
0.27
0.20
1.2
1.0
0.5
0.9
11.9
4.9
3.4
20.2
10
21
46
77
45
30
29
104
Nimbus high grade silver zinc resource (500g/t Ag bottom cut and 2,800g/t Ag top cut)
Category
Tonnes
Grade
Grade
Ounces
Tonnes
Measured Resource
Indicated Resource
Inferred Resource
Total Resource
Confirmation
Mt
0
0.17
0.09
0.26
Ag (g/t)
Zn (%)
Ag (Moz)
Zn (‘000t)
0
762
797
774
0
12.8
13.0
12.8
0
4.2
2.2
6.4
0
22
11
33
The information is this report that relates to Horizon’s Mineral Resources estimates on the Richmond Julia Creek
vanadium project and Nimbus Silver Zinc Project is extracted from and was originally reported in Intermin’s and
MacPhersons’ ASX Announcement “Intermin and MacPhersons Agree to Merge – Creation of a New Gold Company
Horizon Minerals Ltd” dated 11 December 2018 and in MacPhersons’ ASX announcements “Quarterly Activities Report”
dated 25 October 2018, “Richmond – Julia Creek Vanadium Project Resource Update” dated 16 June 2020, “New High
Grade Nimbus Silver Core Averaging 968 g/t Ag” dated 10th May 2016, “Boorara Trial Open Pit Produced 1550 Ounces”
dated 14 November 2016 and “Nimbus Increases Resources” dated 30th April 2015, each of which is available at
www.asx.com.au. The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and that all material assumptions and technical parameters
underpinning the estimates in those announcements continue to apply and have not materially changed. The Company
confirms that the form and context of the Competent Person’s findings in relation to those Mineral Resources estimates
have not been materially modified from the original market announcements.
Competent Persons Statement
The Information in this report that relates to Vanadium Mineral Resources is based on and fairly represents information
and supporting documentation prepared by Mr Warwick Nordin, who is a Competent Person and a member of the
Australasian Institute of Geoscientists (AIG). Mr Nordin is a full-time employee of Richmond Vanadium Technology Pty
Ltd. Mr Nordin has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of
the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Nordin consents
to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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OPERATIONS REPORT
FORWARD LOOKING AND CAUTIONARY STATEMENTS
Some statements in this report regarding estimates or future events are forward looking statements. They include
indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward looking statements
include, but are not limited to, statements preceded by words such as “planned”, “expected”, “projected”, “estimated”,
“may”, “scheduled”, “intends”, “anticipates”, “believes”, “potential”, “could”, “nominal”, “conceptual” and similar
expressions. Forward looking statements, opinions and estimates included in this announcement are based on
assumptions and contingencies which are subject to change without notice, as are statements about market and industry
trends, which are based on interpretations of current market conditions. Forward looking statements are provided as a
general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may
be affected by a range of variables that could cause actual results to differ from estimated results and may cause the
Company’s actual performance and financial results in future periods to materially differ from any projections of future
performance or results expressed or implied by such forward looking statements. These risks and uncertainties include
but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical
problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in
connection with mining and third party processing operations, competition for among other things, capital, acquisition of
reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in
commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations
and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand
for and availability of transportation services, the ability to secure adequate financing and management’s ability to
anticipate and manage the foregoing factors and risks. There can be no assurance that forward looking statements will
prove to be correct.
Statements regarding plans with respect to the Company’s mineral properties may contain forward looking statements
in relation to future matters that can only be made where the Company has a reasonable basis for making those
statements.
This announcement has been prepared in compliance with the JORC Code (2012) and the current ASX Listing Rules.
The Company believes that it has a reasonable basis for making the forward-looking statements in the announcement,
including with respect to any production targets and financial estimates, based on the information contained in this and
previous ASX announcements.
CORPORATE GOVERNANCE - RESERVES AND RESOURCES CALCULATIONS
Due to the nature, stage and size of the Company’s existing operations, Horizon is of the opinion there would be no
efficiencies gained by establishing a separate Mineral Reserves and Resources committee responsible for reviewing and
monitoring the Company’s processes for calculating Mineral Reserves and Resources and for ensuring that the
appropriate internal controls are applied to such calculations. However, the Company ensures that all Mineral Reserve
and Resource calculations are prepared by competent, appropriately experienced geologists and are reviewed and
verified independently by a qualified person.
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DIRECTORS' REPORT
The Directors present their report together with the financial statements of the Group (hereafter referred to as the Group)
for the financial year ended 30 June 2021 and the auditor’s report thereon.
DIRECTORS
The following persons held office as Directors of Horizon Minerals Limited during the financial year and up to the date of
this report:
Ashok Parekh
Peter Bilbe
Jonathan Price
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
INFORMATION ON DIRECTORS
Ashok Parekh, Non-Executive Chairman
Appointed 14 June 2019, appointed Chairman 1 July 2020
B.Bus, AIMM, CTA, FNTAA, FTIA, FCA
Mr Ashok Parekh is a chartered accountant, of over 40 years’ experience, who owns a large accounting practice in
Kalgoorlie, which he has operated for 35 years. He was awarded the Centenary Medal in 2003 by the Governor General
of Australia and was recently awarded the Meritorious Service Award by the Institute of Chartered Accountants, the
highest award granted by the institute in Australia.
Mr Parekh has over 35 years’ experience in providing advice to mining companies and service providers to the mining
industry. He has spent many years negotiating with public listed companies and prospectors on mining deals which have
resulted in new IPOs and the commencement of new gold mining operations. He has also been involved in the
management of gold mining and milling companies in the Kalgoorlie region and has been the Managing Director of some
of these companies. He is well known in the West Australian mining industry and has a very successful background in
the ownership of numerous businesses in the Goldfields.
Directorships held in other listed companies in the past 3 years:
- MacPhersons Resources Limited (Appointed 9 September 2009 – 13 June 2019 upon delisting)
Peter Bilbe, Independent Non-Executive Director
Appointed 1 July 2016, appointed Chairman 21 November 2016, resigned Chairman 1 July 2020
B.Eng. Mining Hons, MAusIMM
Mr Bilbe is a Mining Engineer with over 40 years’ experience in the Australian and International mining industry at the
operating, corporate and business level. He has comprehensive experience in all facets of open pit and underground
mining and processing operations including exploration, feasibility studies, construction and provision of mining contract
services.
Directorships held in other listed companies in the past 3 years:
Independence Group NL (ASX: IGO) (Appointed 6 April 2009)
-
- Adriatic Metals PLC (ASX: ADT) (Appointed 16 February 2018)
Jonathan Price, Managing Director
Appointed 1 January 2016
BSc (Env Science), Grad Dip (Extractive Metallurgy), MSc (Mineral Economics), MAusIMM, MAICD
Mr Price has over 25 years’ experience in Australia and overseas across all aspects of the industry including exploration,
development, construction and mining operations in the gold and advanced minerals sectors. Jon graduated as a
metallurgist and holds a Masters in Mineral Economics from the Western Australian School of Mines. He then worked in
various gold and advanced mineral operations including general manager of the Paddington gold and St Ives gold
operations in the Western Australian goldfields.
More recently, Jon was the founding Managing Director of Phoenix Gold Ltd, acquired by Evolution Mining Ltd. During
his tenure, Jon oversaw the reconsolidation of underexplored tenure in the Western Australian goldfields and realised
significant exploration success.
Directorships held in other listed companies in the past 3 years:
- Kingwest Resources Limited (ASX: KWR) (Appointed 18 September 2019)
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P a g e 2 4
DIRECTORS' REPORT
COMPANY SECRETARY
Julian Tambyrajah, Chief Financial Officer & Company Secretary
Appointed Company Secretary 3 December 2020
B.Com. (Accounting), CPA, ACIS/AGIA, MAICD
Mr Tambyrajah is a global mining finance executive, a qualified Accountant (CPA) and Chartered Company Secretary
(ACIS/AGIA) with over 25 years’ experience including 18 years at the CFO & Company Secretary level. Mr Tambyrajah
has significant experience that covers financial and techno-commercial areas such as treasury, financing, accounting,
systems, supply and logistics, business development M&A, investor relations, project evaluation, feasibility studies,
construction, and operations management for start-ups and global multi-billion-dollar organisations.
Mr Tambyrajah has held the position of Chief Financial Officer, Director and Company Secretary of several listed
(AIM/ASX/TSX) public and private equity companies, including Central Petroleum Limited (CTP), Crescent Gold Limited
(CRE), Rusina Mining NL (RML), DRD Gold Limited (DRD), Dome Resources NL (Gold producers) and held management
and accounting roles for Hills Industries, Brown & Root, Woodside and Normandy Mining. Mr Tambyrajah has extensive
experience in raising equity and debt from national and international financial markets, some of which includes raising
US$49M whilst at BMC UK, A$122m whilst at Crescent Gold and A$105m whilst at Central Petroleum.
Bianca Taveira, Previous Company Secretary
Resigned 31 March 2021
Mrs Taveira is an experienced company administrator and manager who has acted as Company Secretary to a number
of unlisted public and ASX listed natural resource companies for over two decades. During this time Mrs Taveira has
been involved in a number of initial public offerings, reverse takeover transactions, corporate transactions and capital
raisings. Mrs Taveira has a corporate and compliance background and is experienced with administration of the
shareholder registry, the ASX Listing Rules, mining tenement management and the Department of Mines regulations.
Mrs Taveira is currently also the Company Secretary of Reward Minerals Ltd (ASX: RWD) and Yandal Resources Limited
(ASX: YRL).
CORPORATE INFORMATION
Horizon Minerals Limited is a company limited by shares that is incorporated and domiciled in Australia.
PRINCIPAL ACTIVITIES
The principal continuing activities during the year of the Group, constituted by Horizon Minerals Limited and the entities
it controlled during the year, consisted of exploration for and mining of gold and other mineral resources.
OPERATING RESULTS
The net profit of the Group for the year ended 30 June 2021, after providing for income tax, amounted to $2,447,426
(2020: Profit $1,043,504).
REVIEW OF OPERATIONS
Exploration Activity
Please refer to the Exploration and Development Activities of the Operations Report for detailed information on the
Group’s exploration activities over the past year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During July 2020, the Group reached an agreement with Cyprium Metals Limited (ASX: CYM) (“Cyprium”) to divest
the Nanadie Well copper project near Meekatharra in the Murchison District of Western Australia.
Horizon took 100% control of the Nanadie Well in the December quarter of 2019 following the withdrawal of its then
joint venture partner. The divestment comprises exploration license E51/1040 and Mining License M51/887 covering
45km2. Under the Agreement, Cyprium will pay $1.5 million in cash and shares (priced on a 20 day VWAP basis) on
the following terms:
$250,000 in cash and $400,000 in Cyprium shares on completion
$350,000 in Cyprium shares 12 months from completion
$300,000 in Cyprium shares 24 months from completion
$200,000 in Cyprium shares on a decision to mine from the tenure
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P a g e 2 5
DIRECTORS' REPORT
SIGNIFICANT CHANGES IN STATE OF AFFAIRS (continued)
On 7 August 2020, the Group announced completion of the first trial milling from the Boorara Gold Project comprising
ore from the Regal East pit generating $2.93 million revenue.
During August 2020, the Group announced a Share Placement Plan for 115 million ordinary shares at $0.14 per
share to raise $16.1 million before share issue costs.
Settlement of the Placement occurred in two tranches:
Tranche 1 comprises the issue of 57.5 million Placement Shares ($8.05 million) pursuant to Listing Rules
7.1 and 7.1A. No shareholder approval is required for the issue of shares in Tranche 1 which settled on 21
August 2020.
Tranche 2, which is subject to shareholder approval at a General Meeting to be held on 25 September 2020,
comprises the issue of a further 57.5 million Placement Shares ($8.05 million).
On 12 October 2020, the Group announced acquisition of the Kalpini Gold Project in Western Australian gold fields
for a cash consideration of $2.75 million. Kalpini is located 50km northeast of the Company’s 100% owned Boorara
gold project.
On 30 November 2020, the Group announced the acquisition of a 50% interest in the high-grade Penny’s Find Gold
Project for a cash consideration of $1.5 million plus an expenditure earn of $1 million by advancing the project.
On 29 March 2021, the Group announced the divestment of two royalties covering the Janet Ivy and Otto Bore gold
projects in the Western Australian goldfield for a consideration of $7 million consisting of $4 million in cash on
settlement and $3 million in cash or shares in Vox Royalty Corp. (Vox, TSX: VOX) at Vox’s election and on the
achievement of cumulative royalty payments to Vox of $750,000.
On 18 May 2021, the Group announced the acquisition of the Cannon Gold Mine and tenement package for a
consideration of $5 million comprised of $2.5 million at settlement and $2.5 million at the earlier of 12 months or first
gold production from Cannon.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the Group
up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date.
The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other
countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
The health and wellbeing of all Horizon employees remain a key focus in response to the ongoing COVID-19 pandemic.
The work practices and measures implemented to mitigate COVID-19 related risks have so far proven successful with
no known COVID-19 cases across our workforce and minimal disruption to our operations to date.
On 17 August 2021, the Company announced an update to the PFS on the Richmond Vanadium Project JV adjusting for
increased commodity prices and increasing the NPV to A$613M.
There are no other matters or circumstances that have arisen since 30 June 2021 that have or may significantly affect
the operations, results, or state of affairs of the Group in future financial periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
In the opinion of the Directors, it would prejudice the interests of the Group to provide additional information, beyond that
reported in this Annual Report, relating to likely developments in the operations of the Group and the expected results of
those operations in financial years subsequent to 30 June 2021.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 2 6
DIRECTORS' REPORT
DIVIDENDS PAID OR RECOMMENDED
Since the end of the previous financial year, no amount has been paid or declared by way of dividend. The Directors do
not recommend that any dividend be paid.
MEETINGS OF DIRECTORS
The number of directors’ meetings (including meetings of committees of Directors) held and attended by each of the
Directors of the Group during the year were:
Full Meetings of Directors
Remuneration Committee
Directors
Eligible To
Participate
Number
Attended
Eligible To
Participate
Number
Attended
Ashok Parekh
Peter Bilbe
Jonathan Price
DIRECTORS INTERESTS
5
5
5
5
5
5
1
1
1
1
1
1
As at the date of this report interests of the Directors in the shares of the Company were:
Ordinary Shares
Total Holdings
Directors
Direct Interest
Indirect Interest
Shares
Unlisted Options
Ashok Parekh
Peter Bilbe
Jonathan Price
8,908,873
-
4,500,000
14,155,480
1,980,000
-
23,064,353
1,980,000
4,500,000
-
-
-
SHARES UNDER OPTION
Unissued ordinary shares of Horizon Minerals Limited under option as at the date of this report are as follows:
Nature
Expiry Date
Unlisted Options
Unlisted Options
30 June 2022
30 June 2022
Exercise Price of
Options
12 cents
16 cents
Number under
Option
12,000,000
12,000,000
Option holders do not have any rights to participate in any issues of shares or other interests in the Company or any
other entity.
There have been no unissued shares or interests under option of any controlled entity within the Group during or since
the end of the reporting period.
No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of
any other body corporate.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 2 7
DIRECTORS' REPORT
AUDITED REMUNERATION REPORT
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
REMUNERATION GOVERNANCE
The role of the Remuneration Committee has been assumed by the full Board. The Board’s policy for determining the
nature and amount of remuneration for board members and senior Executives of the Company is as follows:
The objective of the Company’s policy is to provide remuneration that is competitive and appropriate. The Board ensures
that executive reward satisfies the following key criteria for good reward governance practices:
(i)
(ii)
(iii)
(iv)
competitiveness and reasonableness;
acceptability to shareholders;
transparency; and
capital management.
(a) Details of Remuneration
The remuneration of the key management personnel of the Group are set out in the following tables:
The key management personnel of the Consolidated Entity consisted of the following directors of Horizon Minerals
Limited:
Ashok Parekh – Non-Executive Chairman
Peter Bilbe – Non-Executive Director
Jonathan Price – Managing Director
And the following persons:
Julian Tambyrajah – Chief Financial Officer & Company Secretary
Grant Haywood – Chief Operating Officer
Short Term Benefits
Long Term Benefits
Salary &
Wages
$
Directors’
Fee
$
Share
based
payments
$
Superannuation
$
Total
$
Performance
Related
%
115,358
25.60
-
-
-
-
423,758
313,757
-
-
78,375
29,537
43,125
-
62,500
16,878
57,500
11,508
-
-
-
37,500
84,392
28,770
-
-
7,446
4,097
5,938
5,463
21,200
22,043
-
47,222
85,316
74,471
529,350
364,570
-
3,563
41,063
-
19.78
15.45
15.94
7.89
-
-
Name
Ashok Parekh
Year
2021
(Non-Executive Chairman)
2020
Peter Bilbe
(Non-Executive Director)
Jonathan Price
(Managing Director)
Jeff Williams
(Non-Executive Director -
resigned 30 April 2020)
Other KMP
2021
2020
2021
2020
2021
2020
Julian Tambyrajah
2021
177,042
(Chief Financial Officer &
Company Secretary)
Grant Haywood
(Chief Operating Officer)
Total
Total
2020
2021
2020
2021
2020
-
340,954
266,668
-
-
-
-
35,538
14,583
227,163
15.64
-
35,538
14,385
-
21,734
21,910
-
398,226
302,963
-
8.92
4.70
941,754
140,875
201,883
70,901
1,355,413
580,425
138,125
54,663
57,076
830,289
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 2 8
DIRECTORS' REPORT
(a)
Details of Remuneration (continued)
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed Remuneration
At risk - STI
At risk – LTI
Name
Ashok Parekh
(Non-Executive Chairman)
2021
74%
2020
100%
2021
0%
Peter Bilbe
80%
85%
0%
(Non-Executive Director)
Jonathan Price
84%
92%
0%
(Managing Director)
Jeff Williams
0%
100%
0%
2020
0%
0%
0%
0%
2021
26%
20%
16%
0%
(Non-Executive Director -
resigned 30 April 2020)
Other KMP
Julian Tambyrajah
84%
0%
0%
0%
16%
(Chief Financial Officer &
Company Secretary)
Grant Haywood
91%
95%
0%
0%
9%
(Chief Operating Officer)
2020
0%
15%
8%
0%
0%
5%
The Company has no formal policy regarding bonus remuneration. The Directors may reward executives with bonuses
at their discretion.
The Company has no formal policy regarding the provision of Directors’ remuneration. Directors’ fees in total are
determined by the shareholders in a general meeting.
Shareholders have approved Directors’ Fees in total up to $250,000 per annum.
Directors that are not on a salary may be paid consulting fees for specialist services beyond normal duties at commercial
rates calculated according to the amount of time spent on Company business. In the year ended 30 June 2021, the
directors have received share-based compensation for services as directors of the Company. Full details are included
below.
The share price of the Company has fluctuated with the markets and has also been influenced by the Company‘s
investments in other ASX listed companies. Over the past five years the directors’ fees have relatively remained static
and have not been influenced by the fluctuating share price.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 2 9
DIRECTORS' REPORT
(a)
Details of Remuneration (continued)
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Details
Name
Title
Service Terms
Ashok Parekh
Non-Executive Chairman
Agreement Commenced
14 June 2019
Terms of Agreement
No formal contract
Details
Name
Title
Mr Parekh was engaged as a Non-Executive Director by resolution of
the board and was later re-elected at the annual general meeting. Mr
Parekh is remunerated with Directors Fees of $72,000 pa plus
superannuation.
Peter Bilbe
Independent Non-Executive Director
Agreement Commenced
1 July 2016
Terms of Agreement
Continues subject to re-election at AGM
Details
Name
Title
Mr Bilbe was engaged as a Non-Executive Director by resolution of
the board and was later re-elected at the annual general meeting. Mr
Bilbe is remunerated with Directors Fees of $54,000 pa plus
superannuation.
Jonathan Price
Managing Director
Agreement Commenced
1 January 2016
Term of Agreement
Continuous
Details
Mr Price is on a base salary of $395,480 plus superannuation, the
excess superannuation over the cap was added back to the base. Mr
Price is also entitled to a fully maintained vehicle for business use
which is on a novated lease is valued at $67,520 pa.
Mr Price may terminate the contract by giving three (3) months’ notice
or at the Company’s discretion salary payment in lieu of notice.
Mr Price is entitled to six (6) months termination/break fee payment if
the Company terminates for any other reason than serious
misconduct.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 0
DIRECTORS' REPORT
a) Details of Remuneration (continued)
Service agreements (continued)
Name
Title
Julian Tambyrajah
Chief Financial Officer & Company Secretary
Agreement Commenced
1 December 2020
Term of Agreement
Continuous
Details
Mr Tambyrajah is on a base salary of $300,000 plus superannuation,
the excess superannuation over the cap was added back to the base.
Mr Tambyrajah has 1,500,000 Performance Rights issued with
various share price hurdles and expiry dates (see the Remuneration
Report section titled Interest in Shares of the Company).
Mr Tambyrajah may terminate the contract by giving three (3) months’
notice or at the Company’s discretion salary payment in lieu of notice.
Mr Tambyrajah is entitled to six (6) months termination/break fee
payment if the Company terminates for any other reason than serious
misconduct.
Name
Title
Grant Haywood
Chief Operating Officer
Agreement Commenced
1 October 2016
Term of Agreement
Continuous
Details
Mr Haywood is on a base salary of $336,350 plus superannuation,
the excess superannuation over the cap was added back to the base.
Mr Haywood has 1,500,000 Performance Rights issued with various
share price hurdles and expiry dates (see the Remuneration Report
section titled Interest in Shares of the Company).
Mr Haywood may terminate the contract by giving three (3) months’
notice or at the Company’s discretion salary payment in lieu of notice.
Mr Haywood is entitled to six (6) months termination/break fee
payment if the Company terminates for any other reason than serious
misconduct.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 1
DIRECTORS' REPORT
(b)
Interests in the Shares of the Company
Shares
The number of shares in the Company held during the financial year by key management personnel of Horizon Minerals
Limited, including their personally related parties, is set out below:
2021
Balance at the
start of the
year
Shares
purchased
Shares sold
Performance
Rights
Vested
Exercise of
Options
Balance held at
resignation
Ashok Parekh
23,064,353
Peter Bilbe
1,980,000
Jonathan Price
4,500,000
Other KMP
Julian
Tambyrajah
-
Grant Haywood
1,312,500
1,037,500
TOTAL
30,856,853
1,037,500
-
-
-
-
-
-
2020
Balance at the
start of the
year
Shares
purchased
Peter Bilbe
1,980,000
Shares sold
-
Jonathan Price
4,818,493
(318,493)
Ashok Parekh
23,064,353
Jeffrey Williams
2,367,578
Other KMP
Grant Haywood
1,312,500
-
-
-
TOTAL
33,542,924
(318,493)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Performance
Rights
Vested
Exercise of
Options
Balance held at
resignation
Balance at the
end of the
year
23,064,353
1,980,000
4,500,000
-
2,350,000
31,894,353
Balance at the
end of the
year
1,980,000
4,500,000
23,064,353
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,367,578)
-
-
1,312,500
(2,367,578)
30,856,853
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 2
DIRECTORS' REPORT
(c)
Share-Based Compensation
(i)
Performance Rights Issued November 2017
In the year ended 30 June 2018, the Company provided benefits to employees (including directors) of the Company in
the form of share-based payment transactions, whereby performance rights convertible to ordinary shares were granted
at nil consideration as an incentive to improve Director and shareholder goal congruence. See Note 24 for details.
Details of performance rights over ordinary shares in the Company provided as remuneration to the Directors’ of Horizon
Minerals Limited are set out below. When vesting conditions are met, each right is convertible into one ordinary share of
Horizon Minerals Limited.
Year ended 30 June 2021
Balance at beginning of
year unvested
Granted
Lapsed/
cancelled
Balance at end of year unvested
Directors
Value to be
expensed*
$
No.
Value to be
expensed*
$
No.
No.
No.
Value
expensed
in 2020/21
$
Ashok Parekh
1,050,000
77,070
-
1,050,000
25,388
Peter Bilbe
400,000
4,179
600,000
44,040
400,000
600,000
14,507
Value to be
expensed*
$
51,682
29,533
Jonathan Price
1,000,000
10,446
3,000,000
220,200
1,000,000
3,000,000
72,536
147,664
Other KMP
Julian Tambyrajah
-
-
1,500,000
92,550
-
1,500,000
29,610
Grant Haywood
500,000
5,224
1,500,000
92,550
500,000
1,500,000
29,610
62,940
62,940
TOTAL
1,900,000
19,849
7,650,000
526,410
1,900,000
7,650,000
171,651
354,759
Year ended 30 June 2020
Balance at beginning of
year unvested
Vested
Lapsed/
cancelled
Balance at end of year unvested
Directors
Value to be
expensed*
$
No.
Value to be
expensed*
$
No.
No.
No.
Value
expensed
in 2019/20
$
Value to be
expensed*
$
Ashok Parekh
-
-
Peter Bilbe
800,000
15,687
Jonathan Price
2,000,000
39,216
Other KMP
Grant Haywood
1,000,000
19,609
TOTAL
3,800,000
74,512
-
-
-
-
-
-
-
-
-
-
-
-
-
-
400,000
400,000
11,508
4,179
1,000,000
1,000,000
28,770
10,446
500,000
500,000
14,385
5,224
1,900,000
1,900,000
54,663
19,849
* Maximum value to be expensed in future periods if all vesting conditions are met.
The performance rights were issued in classes with varying performance and vesting conditions (refer Note 24). Details
of the number of rights issued per class are as follows:
Directors
Class H
Class I
Class J
No.
No.
No.
Total
No.
Ashok Parekh
350,000
350,000
350,000
1,050,000
Peter Bilbe
200,000
200,000
200,000
600,000
Jonathan Price
1,000,000
1,000,000
1,000,000
3,000,000
Other KMP
Julian Tambyrajah
500,000
500,000
500,000
1,500,000
Grant Haywood
500,000
500,000
500,000
1,500,000
TOTAL
2,550,000
2,550,000
2,550,000
7,650,000
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 3
DIRECTORS' REPORT
Performance Rights
Further details on the performance and valuations attaching to the performance rights are included in Note 24a to the
Financial Statements.
The fair value of the rights was determined using a Hoadley’s Barrier 1 model. A total amount of $219,216 is included in
the Statement of Financial Performance and Statement of Changes in Equity for the year ended 30 June 2021 (2020 -
$69,047), of which $171,651 (2020 - $54,663) is attributable to KMP.
The assessed fair value at grant date of performance rights granted to the individuals is allocated equally over the period
from grant date to vesting date, and the amount is included in the remuneration tables above. Fair values at grant date
are independently determined using a Hoadley’s Barrier 1 model that takes into account the vesting condition of the
rights, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the rights.
(ii)
Options
During the year ended 30 June 2021, there were no options exercised by directors.
(e)
Other Transactions with Key Management Personnel
There were no other transactions with Key Management Personnel during the year.
This is the end of the Audited Remuneration Report.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 4
DIRECTORS' REPORT
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Group maintained an insurance policy which indemnifies the Directors and Officers of
Horizon Minerals Limited in respect of any liability incurred in connection with the performance of their duties as Directors
or Officers of the Group. The Group's insurers have prohibited disclosure of the amount of the premium payable and the
level of indemnification under the insurance contract.
NON-AUDIT SERVICES
The Directors are satisfied that the provision of non-audit services, during the year, by the auditor or a related practice of
the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.
No non-audit services have been provided by the Company’s auditors in year ended 30 June 2021. Remuneration paid
to the Company’s auditors is detailed in Note 20 of this report.
AUDITOR’S INDEPENDENCE DECLARATION
In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a Declaration of
Independence from PKF Perth, the Group’s auditor, as presented on page 36 of this Annual Report.
ENVIRONMENTAL REGULATION
The Group’s exploration and mining operations are subject to environment regulation under the laws of the
Commonwealth and the States. The Company holds exploration/mining tenements in Western Australia, Northern
Territory and Queensland and thus is subject to the Mining Acts of these states, each with specific conditions relating to
environmental management. In some instances, bonds are held by the Company’s bank in favour of the Minister for
Mines to be released to the Company when the Minister is satisfied that conditions imposed on tenement licences have
been met. In some jurisdictions Cash Bonds must be lodged with the relevant Department until conditions are fulfilled.
Bonds currently in place in respect of the Company’s tenement holdings are tabulated below.
Tenement Number
Tenement Name
MLs150, 151
White Range
Bond Held $
257,927*
*Pursuant to the White Range Mining Tenement Sale Agreement dated 18 January 2013 the Purchaser Red Dingo
Corporation Pty Ltd is required to replace the Security Bond allowing refund of the current $257,927 to Horizon Minerals
Limited.
The Directors advise that during the year ended 30 June 2021, no claim has been made by any competent authority that
any environmental issues, no condition of license or notice of intent has been breached, and no claim has been made
for increase of bond.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires
entities to report annual greenhouse gas emissions and energy use. For the measurement period 1 July 2020 to 30 June
2021 the directors have assessed that there are no current reporting requirements, but may be required to do so in the
future.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Group was not a party to any such proceedings during the year.
This report is made in accordance with a resolution of directors, and signed for on behalf of the board by:
Jon Price
Managing Director
Perth, WA
10 September 2021
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 5
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF HORIZON MINERALSLIMITED
In relation to our audit of the financial report of Horizon Minerals Limited for the year ended 30 June 2021, to the best of my
knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001
or any applicable code of professional conduct.
PKF PERTH
SIMON FERMANIS
PARTNER
10 September 2021
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or
inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 6
DIRECTORS’ DECLARATION
The Directors of the Company declare that, in the opinion of the Directors:
1.
The financial statements, comprising the consolidated statement of comprehensive income, consolidated
statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows
and accompanying notes, set out on pages 38 to 70 are in accordance with the Corporations Act 2001 including:
(a)
(b)
complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory
professional reporting requirements;
giving a true and fair view of the financial position as at 30 June 2021 and of the performance for the year
ended on that date of the Group; and
2.
3.
4.
The Company has included in the notes to the financial statements an explicit and unreserved Statement of
Compliance with International Financial Reporting Standards.
The Directors have been given the declaration by the Managing Director and the Chief Financial Officer required
by Section 295A.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Jon Price
Managing Director
Perth, WA
10 September 2021
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 7
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Continuing Operations
Gold sales
Gold royalty
Interest income
Other income
Note
2021
$
2020
$
16,756,817
179,250
-
-
3
4
50,964
58,382
6,317,815
3,056,443
Total revenue from Continuing Operations
23,304,846
3,114,825
Cost of sales
Exploration and evaluation expenditure
Depreciation expenses
Net change in fair value of financial assets at fair value through profit or
loss
Employee benefits expense
Share based payments
Building and occupancy costs
Loss on sale of property, plant & equipment
Consultancy and professional fees
Impairment loss on property, plant & equipment
Interest expenses and finance charges
Impairment of receivables
Other expenses
5
(12,901,401)
(313,470)
-
-
(169,257)
(128,803)
10
(2,255,142)
660,881
24
5
12
16
9(i)
(1,107,774)
(543,708)
(219,126)
(650,924)
(112,927)
(113,449)
(38,735)
-
(337,930)
(450,380)
(1,898,283)
-
(363,836)
(245,479)
(882)
(244,561)
(1,089,698)
(354,898)
Profit/(Loss) from continuing operations before income tax
2,496,384
1,043,504
Income tax (expense)/benefit
Profit/(Loss) for the year
Other comprehensive income
7
(48,956)
-
2,447,429
1,043,504
Revaluation reserves reclassified to the profit & loss
19a
Other comprehensive income for the year, net of tax
Profit/(Loss) for the year and total comprehensive income
attributable to owners of Horizon Minerals Limited
198,976
198,976
-
-
2,646,405
1,043,504
Basic earnings/(loss) per share
Diluted earnings/(loss) per share
2021
2020
20
20
0.45 cents
0.24 cents
0.45 cents
0.24 cents
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 8
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Mine production expenditure
Total current assets
Non-current assets
Financial assets at fair value through profit or loss
Other assets
Property, plant and equipment
Exploration and evaluation expenditure
Right of use assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated Losses
Total equity
Note
2021
$
2020
$
8
9
13c
11,315,965
5,895,535
1,105,529
3,729,020
-
2,504,762
12,421,494
12,129,317
10
11
12
4,236,200
4,266,342
257,927
257,927
478,383
2,577,398
13a/b
48,931,342
35,755,748
14
126,438
162,544
54,030,290
43,019,959
66,451,784
55,149,276
15
16
14
14
17
857,833
3,387,031
-
4,245,479
47,741
49,526
905,574
7,682,036
86,202
120,235
1,389,664
930,035
1,475,866
1,050,270
2,381,440
8,732,306
64,070,344
46,416,970
18a
19a
19b
66,426,399
51,439,580
747,003
1,817,330
(3,103,058)
(6,839,940)
64,070,344
46,416,970
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 3 9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Group
Contributed
Equity
Asset
Revaluation
Reserve
Share based
payment
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
Balance at 1 July 2019
49,746,534
144,976
1,021,430
(7,883,444) 43,029,496
Shares issued during the year
Performance rights issued during the year
Shares issue costs
Options issued during the year
Total comprehensive profit/(loss) for the year
2,000,000
-
(306,954)
-
-
-
-
-
-
-
-
69,047
-
581,877
-
-
-
-
2,000,000
69,047
(306,954)
581,877
-
1,043,504
1,043,504
Balance at 30 June 2020
51,439,580
144,976
1,672,354
(6,839,940) 46,416,970
Balance at 1 July 2020
51,439,580
144,976
1,672,354
(6,839,940) 46,416,970
Shares issued during the year
16,100,000
Performance rights issued during the year
Share based payments reclassified to profit & loss
-
-
Shares issue costs
(1,113,181)
Options issued during the year
Other comprehensive income
Total comprehensive profit/(loss) for the year
-
-
-
Balance at 30 June 2021
66,426,399
-
-
-
-
-
-
219,126
-
-
16,100,000
219,126
(1,090,477)
1,090,477
-
-
-
-
-
(1,113,181)
-
-
(144,976)
(54,000)
198,976
-
-
-
2,447,429
2,447,429
747,003
(3,103,058) 64,070,344
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 0
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Cash flows from operating activities
ATO cash flow boost
Receipts from customers
Payments to suppliers and employees
Payments for exploration and evaluation expenditure
Interest received
Income tax expense
Note
2021
$
2020
$
103,435
82,350
21,197,876
560,724
(14,936,774)
(2,786,814)
(313,470)
-
50,987
59,677
(48,956)
-
Net cash inflow/(outflow) from operating activities
23a
6,053,098
(2,084,063)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for purchase of tenements
Proceeds from sale of tenements
(7,260)
(11,851)
(4,574,365)
(10,000)
3,520,000
1,750,000
Payments for capitalised exploration and evaluation expenditure
(8,562,234)
(4,066,876)
Payments for mine production costs
Payments for purchase of investments
Net cash inflow/(outflow) from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Proceeds from issues of shares
Share issue costs
Payments for lease liability
Net cash (outflow)/inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
288,896
(288,896)
(1,625,000)
-
(10,959,963)
(2,627,623)
-
4,000,000
(4,609,315)
-
16,100,000
2,000,000
(1,113,181)
(306,954)
(50,209)
(37,113)
10,327,295
5,655,933
5,420,430
944,247
5,895,535
4,951,288
Cash and cash equivalents at the end of the financial year
7
11,315,965
5,895,535
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 1
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
This financial report of Horizon Minerals Limited (‘the Company’) for the year ended 30 June 2021 comprises the
Company and its subsidiaries (collectively referred to as ‘the Consolidated Entity or the Group’). Horizon Minerals
Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange. The financial report was authorised for issue in accordance with a resolution of
Directors dated 10 September 2021.
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report.
1a
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Australian
Accounting Interpretations and the Corporations Act 2001. The functional and presentation currency of
Horizon Minerals Limited is in Australian Dollars.
Compliance with IFRSs
The financial statements of Horizon Minerals Limited also comply with International Financial Reporting
Standards (IFRSs) as issued by the International Accounting Standards Board (IASB).
New Accounting Standards and Interpretations
In the year ended 30 June 2021, the Company has reviewed and adopted all of the new and revised
Standards and Interpretations issued by the AASB that are relevant to its operations and effective for
annual reporting periods beginning on or after 1 July 2020.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30
June 2021.
The Company has also reviewed all new Standards and Interpretations that have been issued but are not
yet effective for the year ended 30 June 2021. As a result of this review the Directors have determined that
there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its
business and, therefore, no change is necessary to Company accounting policies.
Historical Cost Convention
These financial statements have been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets.
Critical Accounting Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 2.
1b
Principles of consolidation
(i)
Subsidiaries
The consolidated financial statements comprise the financial statements of Horizon Minerals
Limited and its controlled entities, Black Mountain Gold Ltd and MacPhersons Resources Limited.
MacPhersons Resources Limited was acquired on 14 June 2019 pursuant to a Scheme of
Arrangement including its subsidiaries (refer Note 27). As at 30 June 2021, Horizon Minerals
Limited and its subsidiaries together are referred to in this financial report as the Consolidated Entity
or the Group.
Control exists where the Company has the capacity to dominate the decision-making in relation to
the financial and operating policies of another entity so that the other entity operates with the
Company to achieve the objectives of the Company. All inter-company balances and transactions
between entities in the Group, including any unrealised profits and losses have been eliminated on
consolidation. Non-controlling interests in the results and equity of the consolidated entities are
shown separately in the consolidated statement of comprehensive income and consolidated
statement of financial position respectively.
Where control of an entity is obtained during a financial year, its results are included in the
consolidated statement of comprehensive income from the date on which control commences. They
are de-consolidated from the date that control ceases.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 2
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1b
Principles of consolidation (continued)
(ii)
Joint ventures
Joint ventures entered into are not separate legal entities but rather are contractual arrangements
between the participants for the sharing of costs and output and do not in themselves generate
revenue and profit. Details of the joint ventures are set out in Note 31.
1c
Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income
based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to
apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted
or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts
of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception
is made for certain temporary differences arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in controlled entities where the parent is able to control the timing of
the reversal of the temporary differences and it is probable that the differences will not reverse in the
foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in other comprehensive
income/equity are also recognised directly in other comprehensive income/equity.
The charge for current income tax expense is based on the profit for the year adjusted for any non-
assessable or disallowed items. It is calculated using the tax rates that have been enacted or are
substantially enacted by the reporting date.
The amount of benefits brought to account or which may be realised in the future is based on the
assumption that no adverse change will occur in income taxation legislation and the anticipation that the
economic entity will derive sufficient future assessable income to enable the benefit to be realised and
comply with the conditions of deductibility imposed by the law.
The Group is consolidated for income tax purposes effective 1 July 2016.
1d
Revenue recognition
The Group recognises revenue as follows:
(i)
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity
is expected to be entitled in exchange for transferring goods or services to a customer. For each
contract with a customer, the consolidated entity: identifies the contract with a customer; identifies
the performance obligations in the contract; determines the transaction price which takes into
account estimates of variable consideration and the time value of money; allocates the transaction
price to the separate performance obligations on the basis of the relative stand-alone selling price
of each distinct good or service to be delivered; and recognises revenue when or as each
performance obligation is satisfied in a manner that depicts the transfer to the customer of the
goods or services promised
(ii)
Sale of gold
Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable. Revenue is recognised at the point in time when the customer obtains control of the
goods, which is generally at the time of delivery.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 3
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1d
Revenue recognition (continued)
(ii)
Interest income
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial assets.
(iii) Other services
Other debtors are recognised at the amount receivable and are due for settlement within 30 days
from the end of the month in which services were provided.
1e
Mineral prospects and exploration expenditure thereon
The Group’s policy with respect to exploration expenditure is to write off all costs unless the directors and
management are of the view that there is a reasonable prospect that the costs may be recovered in future
income years. Costs that may reasonably be expected to be recovered are capitalised to the statement of
financial position as a non-current asset and accumulated separately for each area of interest. Such
expenditure comprises net direct cash and where applicable, an apportionment of related overhead
expenditure.
Each area of interest is limited to a size related to a known or probably mineral resource capable of
supporting a mining operation. Expenditure is not carried forward in respect of any area of interest unless
the Group’s right to tenure to that area of interest is current.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest. At 30 June 2021, the Directors considered that the
carrying value of the mineral tenement interests of the Group was as shown in the accounts and did not
need adjusting.
Exploration and evaluation assets are transferred to Development Phase assets once technical feasibility
and commercial viability of an area of interest is demonstrable. Exploration and evaluation assets are
tested for impairment, and any impairment loss is recognised, prior to being reclassified.
1f
Mine properties and mining assets
Mine properties represents the acquisition cost and/or accumulated exploration, evaluation and
development expenditure in respect of areas of interest in which mining has commenced.
Mine development costs are deferred until commercial production commences. When commercial
production is achieved mine development is transferred to mine properties, at which time it is amortised
on a unit of production basis based on ounces mined over the total estimated resources related to this
area of interest.
Significant factors considered in determining the technical feasibility and commercial viability of the project
are the completion of a feasibility study, the existence of sufficient resources to proceed with development
and approval by the board of Directors to proceed with development of the project.
Deferred stripping costs
Stripping is the process of removing overburden and waste materials from surface mining operations to
access the ore. Stripping costs are capitalised during the development of a mine and are subsequently
amortised over the life of mine on a units of production basis, where the unit of account is ounces of gold
sold.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 4
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1g
Financial assets at fair value through profit or loss
Financial assets other than equity instruments that do not meet the above amortised cost criteria are
measured at fair value through profit or loss. This includes financial assets that are held for trading and
investments that the Group manages based on their fair value in accordance with the Group’s documented
risk management and/or investment strategy.
Equity instruments are measured at fair value through profit or loss unless the Group irrevocably elects at
initial recognition to present the changes in fair value in other comprehensive income as described below.
Upon initial recognition, financial assets measured at fair value through profit or loss are recognised at fair
value and any transaction costs are recognised in profit or loss when incurred. Subsequent to initial
recognition, financial assets at fair value through profit or loss are measured at fair value, and changes
therein are recognised in profit or loss.
1h
Impairment of assets
Mining tenements assets and other intangible assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash flows from other assets or
groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment
are reviewed for possible reversal of the impairment at each reporting date.
1i
Plant and equipment
Plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
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 will flow to the
Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged
to profit and loss during the financial period in which they are incurred.
Depreciation is calculated on a diminishing value basis to write off the net cost of each item of plant and
equipment over its expected useful life to the Group. The expected useful lives are as follows:
Plant and equipment 5 - 10 years.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting
date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount (Note 1h).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the profit and loss.
1j
Trade receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using
the effective interest method, less any allowance for expected credit losses. Trade receivables are
generally due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have
been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 5
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1k
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year and which are unpaid, together with assets ordered before the end of the financial year. The
amounts are unsecured and are usually paid within 30 days of recognition.
1l
Employee benefits
(i)
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to
be settled within 12 months of the reporting date are recognised in other payables in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid
when the liabilities are settled.
Annual leave has been accrued as at 30 June 2021.
(ii)
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experiences of employee
departures and periods of service. Expected future payments are discounted using market yields
at the reporting date on national government bonds with terms to maturity and currency that match,
as closely as possible, the estimated future cash outflows.
Long service leave has been accrued as at 30 June 2021.
(iii)
Share-based payments
Share-based compensation benefits are provided to directors through the granting of options and
performance rights.
The fair value of options and performance rights granted by the Group are recognised as an
employee benefits expense with a corresponding increase in equity. The total amount to be
expensed is determined by reference to the fair value of the options and performance rights
granted, which includes any market performance conditions but excludes the impact of any service
and non-market performance vesting conditions and the impact of any non-vesting conditions.
Non-market vesting conditions are included in assumptions about the number of options and
performance rights that are expected to vest. The total expense is recognised over the vesting
period, which is the period over which all of the specified vesting conditions are to be satisfied. At
the end of each period, the entity revises its estimates of the number of options that are expected
to vest based on the non-marketing vesting conditions. It recognises the impact of the revision to
original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
1m Cash and cash equivalents
For statement of cashflows presentation purposes, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short-term, highly liquid instruments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the statement of financial position.
1n
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the profit and loss over the period of the borrowings using the
effective interest method. Fees paid on the establishment of loan facilities, which are not incremental costs
relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-
line basis over the term of the facility.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 6
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1o
Right-of-use assets
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful
life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability
for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on
these assets are expensed to profit or loss as incurred.
1p
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and
trading and available-for-sale securities) is based on quoted market prices at the reporting date. The
quoted market price used for financial assets held by the Company is the current bid price: the appropriate
quoted market price for financial liabilities is the current ask price.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to
approximate their fair values.
1q
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of associated goods and services tax
(GST), unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or
payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the taxation authority, are presented as
operating cash flows.
1r
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction from the proceeds. Incremental costs directly attributable to the issue of new shares or options
for the acquisition of a business are not included in the cost of acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, e.g. as the result of a share buy-back, those instruments
are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the
profit or loss and the consideration paid including any directly attributable incremental costs (net of income
taxes) is recognised directly in equity.
1s
Provisions
Provisions for legal claims recognised when the Group has a present legal obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation, and the amount
has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the reporting date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and the risks specific to the liability.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 7
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1t
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker has been identified as the steering
committee that makes strategic decisions.
1u
Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of
time that is required to complete and prepare the assets for its intended use or sale. Other borrowing costs
are expensed.
1v
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's
incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under
residual value guarantees, exercise price of a purchase option when the exercise of the option is
reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that
do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the right-of-use
asset is fully written down.
1w
Earnings per share
(i)
(ii)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of ordinary shares outstanding during the financial year,
adjusted for bonus elements in ordinary shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusted the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs associated
with dilutive potential ordinary shares and the weighted average number of shares assumed to have
been issued for no consideration in relation to dilutive potential ordinary shares.
1x
Rehabilitation costs
The Group’s mining, extraction and processing activities give rise to obligations for site rehabilitation.
Rehabilitation obligations can include facility decommissioning and dismantling; removal or treatment of
waste materials; land rehabilitation; and site restoration. The extent of work required and the associated
costs are estimated based on feasibility estimates using current restoration standards and techniques.
Provisions for the cost of each rehabilitation program are recognised at the time that environmental
disturbance occurs.
Rehabilitation provisions are initially measured at the expected value of future cash flows required to
rehabilitate the relevant site.
At each reporting date the rehabilitation liability is re-measured to account for any new disturbance,
updated cost estimates, changes to the estimated lives of operations and new regulatory requirements.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 8
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related
actual results. The judgements, estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within
the next financial year are discussed below.
2a
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to
the nature of the products and services offered, customers, supply chain, staffing and geographic regions
in which the consolidated entity operates. Other than as addressed in specific notes, there does not
currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably
as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
2b
Share-based payment transactions
The consolidated entity 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
by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities within the
next annual reporting period but may impact profit or loss and equity.
Refer to note 24 for further information.
2c
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other
indefinite life intangible assets at each reporting date by evaluating conditions specific to the consolidated
entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the
recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-
use calculations, which incorporate a number of key estimates and assumptions.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 4 9
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONTINUED)
2c
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
(continued)
It is reasonably possible that the underlying metal price assumption may change which may then impact
the estimated life of mine determinant and may then require a material adjustment to the carrying value of
mining plant and equipment, mining infrastructure and mining development assets. Furthermore, the
expected future cash flows used to determine the value-in-use of these assets are inherently uncertain
and could materially change over time. They are significantly affected by a number of factors including
reserves and production estimates, together with economic factors such as metal spot prices, discount
rates, estimates of costs to produce reserves and future capital expenditure.
2d
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination is
uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the
consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is
different from the carrying amounts, such differences will impact the current and deferred tax provisions in
the period in which such determination is made.
2e
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land
explored or mined. The consolidated entity's mining and exploration activities are subject to various laws
and regulations governing the protection of the environment. The consolidated entity recognises
management's best estimate for assets retirement obligations and site rehabilitations in the period in which
they are incurred. Actual costs incurred in the future periods could differ materially from the estimates.
Additionally, future changes to environmental laws and regulations, life of mine estimates and discount
rates could affect the carrying amount of this provision.
2f
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will
commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised.
In addition, costs are only capitalised that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that could impact the future commercial
production at the mine include the level of reserves and resources, future technology changes, which could
impact the cost of mining, future legal changes and changes in commodity prices. To the extent that
capitalised costs are determined not to be recoverable in the future, they will be written off in the period in
which this determination is made.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 0
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
3 INTEREST INCOME
Interest income
4
OTHER INCOME
ATO Cash Flow Boost
Proceeds from royalty divestments
Profit on sale of tenement interest
Recovery of administration costs
Other income
5
EXPENSES
Profit/(loss) before income tax includes the following specific expenses:
Cost of sales
Mining and processing costs
Cost of sales
Building and occupancy costs
Rental expense - right of use asset
Rental abatement – COVID-19 relief – right of use asset
Interest expense – right of use asset (refer Note 14)
Amortisation – right of use asset (refer Note 14)
Other
Building and occupancy costs
2021
$
2020
$
50,964
58,382
-
186,776
4,000,000
-
916,259
2,684,450
145,240
122,658
1,256,316
62,559
6,317,815
3,056,443
12,901,401
12,901,401
-
-
159
26,645
-
(12,382)
9,223
50,498
53,047
12,413
44,330
42,443
112,927
113,449
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 1
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
6
SEGMENT INFORMATION
Management has determined the operating segments based on the reports
reviewed by the Board that are used to make strategic decisions.
The Board considers that the reportable segments are defined by the nature
of the exploration activities. As such there are two reportable segments
being Vanadium/Molybdenum tenements and Gold tenements.
2021
Revenue
Profit/(loss) before income tax
Vanadium/
Molybdenum
$
Gold
$
Total
$
-
-
21,852,326
21,852,326
4,700,561
4,700,561
Total segment assets
756,401
50,143,218
50,899,619
2020
Revenue
Profit/(loss) before income tax
Vanadium/
Molybdenum
$
-
-
Gold
$
2,684,450
324,241
Total
$
2,684,450
324,241
Total segment assets
756,367
44,231,032
44,987,399
2021
$
2020
$
6a
Segment revenue
Segment revenue reconciles to revenue from continuing operations as follows:
Segment revenue
Interest revenue
Other revenue
Revenue from continuing operations
21,852,326
2,684,450
50,964
1,401,556
23,304,846
58,382
371,993
3,114,825
6b
Segment profit/(loss)
Segment profit/(loss) reconciles to total comprehensive income as follows:
Segment profit/(loss) before income tax
Interest revenue
4,700,561
324,241
50,964
58,382
Net change in value of financial assets at fair value through profit & loss
(2,255,142)
660,881
Items that may be reclassified subsequently to profit or loss
198,976
-
Profit/(Loss) before income tax
2,695,359
1,043,504
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 2
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2021
$
2020
$
50,899,619
44,987,399
15,552,165
10,161,877
66,451,784
55,149,276
6
6c
SEGMENT INFORMATION (CONTINUED)
Segment assets
Segment assets reconcile to total assets as follows:
Segment assets
Unallocated assets
Total assets
6d
Segment liabilities
The Group’s liabilities are not reported to management on an individual
segment basis, but rather reported on a consolidated basis.
7
7a
INCOME TAX
The prima facie income tax expense on pre-tax accounting loss
reconciles to the income tax expense in the financial statements as
follows:
Profit/(Loss) from continuing operations after income tax expense
2,447,429
1,043,504
Income tax expense/(benefit) calculated at 27.5% (2020: 27.5%)
734,228
313,051
Capital raising cost allowable
(122,372)
(115,040)
611,856
198,011
Movements in unrecognised timing differences
(1,675,106)
224,281
Expenses that are not deductible in determining taxable profit
77,061
293,165
Movement in share revaluations
Under provision for income tax of prior years
Tax losses not recognised
Tax losses recouped
Unused tax losses not recognised as a deferred tax asset
Income tax expense reported in the Statement of Profit or Loss and Other
Comprehensive Income
676,543
(198,264)
48,956
309,645
-
-
48,956
-
-
(517,193)
-
-
7b
Unrecognised deferred tax balances:
The following deferred tax assets (2021: 30%, 2020: 30%) have not been
brought to Account:
Unrecognised deferred tax asset – tax losses
23,406,268 23,096,623
Unrecognised deferred tax asset – capital losses
16,978
16,978
Unrecognised deferred tax liability – capitalised exploration expenses
(11,706,998)
(9,193,155)
Unrecognised deferred tax asset/(liability) – share investments
734,312
57,770
Unrecognised deferred tax asset – other temporary differences
561,592
364,277
Net deferred tax assets/(liability) not brought to account
13,012,152 14,342,495
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 3
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2021
$
2020
$
7
7c
INCOME TAX (CONTINUED)
The taxation benefits of tax losses and timing not brought to account will only
be obtained if:
assessable income is derived of a nature and of amount sufficient to
enable the benefit from the deductions to be realised;
conditions for deductibility imposed by the law are complied with; and
no changes in tax legislation adversely affect the realisation of the benefit
from the deductions.
7d
Tax Consolidation
Horizon Minerals and its wholly owned Australian subsidiaries are part of an
income tax consolidated group and have entered into tax sharing and tax
funding agreements. Under the terms of these agreements, the subsidiaries
will reimburse Horizon Minerals for any current income tax payable by Horizon
Minerals arising in respect of their activities. The reimbursements are payable
at the same time as the associated income tax liability falls due and will
therefore be recognised as a current tax-related receivable by Horizon
Minerals when they arise. In the opinion of the Directors, the tax sharing
agreement is also a valid agreement under the tax consolidation legislation
and limits the joint and several liability of the subsidiaries in the event of a
default by Horizon Minerals.
8
CASH AND CASH EQUIVALENTS
Cash at bank and on hand
11,315,965
5,895,535
Reconciliation to cash at the end of the year
The above figures are reconciled to cash at the end of the financial year as
shown in the cash flow statement as follows:
Balances as above
Balances per statement of cash flows
11,315,965
5,895,535
11,315,965
5,895,535
9
TRADE AND OTHER RECEIVABLES
Trade receivables (i)
Other receivables – ATO receivables
64,858
48,183
991
376,110
Other receivables – sale of tenement – deferred payment (ii)
850,000
3,250,000
Prepayment and other receivables
Accrued interest
Term deposit – bonds & credit card security deposit
172,577
37,602
3
25
17,100
17,100
1,105,529
3,729,020
(i) During the year ended 30 June 2021, $882 of receivables was determined unrecoverable and impaired.
(ii) During the period to 30 June 2021, the Company divested 100% of its interest in the Nanadie Well Copper project to
Cyprium Metals Limited (ASX: CYM). As per the ASX announcement on 15 September 2020, total consideration for
the project was $1.5M. The Company received a cash payment of $250,000 and an issue of ordinary shares in Cyprium
valued at $400,000. A deferred payment of $850,000 is to be received in three tranches of Cyprium shares: $350,000
in 12 months, $300,000 in 24 months and $200,000 on a decision to mine form the tenure. The shares are based on a
20 day VWAP.
In March 2021, the Company received a deferred payment of $3.25M comprising cash of $1.625M and shares to the
value of $1.625M as final consideration for the 100% divestment of its interest in the Menzies and Goongarrie gold
projects to Kingwest Resources Limited (ASX: KWR) for a total consideration of $8M.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 4
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2021
$
2020
$
9
TRADE AND OTHER RECEIVABLES (CONTINUED)
Term deposits
The deposits have maturity periods of between 3 and 12 months but can be
readily convertible to cash at short notice, at interest rates of 1% (2019: 2.4%
and 2.5%). Refer to Note 29 regarding risk exposures. Term deposits with a
maturity over three months are included in current receivables.
Effective interest rates and credit risk
Information concerning the effective interest rate and credit risk of both current
and non-current receivables is set out below.
Interest rate risk
All receivable balances are non-interest bearing.
Credit rate risk
There is no concentration of credit risk with respect to current and non-current
receivables. Refer to Note 29 for further information on the Group’s risk
management policies. Due to short term nature, fair value approximates
carrying value.
10
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Shares in listed companies at market value
Included is $929,644 (2020: $1,266,342) of shares held in Reward Minerals
Ltd, $2,435,833 of shares held in Kingwest Resources Limited, $627,438 of
shares held in Cyprium Metals Limited and $243,285 shares held in TNT Mines
Limited.
The net change in fair value on financial assets at fair value through profit or
loss for the year was a loss of $2,255,142 (2020 Profit: $660,881).
All financial assets at fair value through profit or loss are denominated in
Australian currency. Refer to Note 29 for further information concerning the
price and foreign currency risk.
4,236,200
4,266,342
4,236,200
4,266,342
11
OTHER ASSETS
Security deposits
257,927
257,927
257,927
257,927
The security deposits arise from monies held in trust accounts or lodged with
appropriate authorities in relation to mining tenements held. The Group has
restricted access to these funds, but they are expected to be reimbursed in the
future.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 5
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
12
PROPERTY, PLANT & EQUIPMENT
Plant and equipment at cost
Accumulated depreciation and impairment
Total plant and equipment
Property at cost
Accumulated depreciation and impairment
Total property
Motor vehicles – at cost
Accumulated depreciation
Total motor vehicles
RECONCILIATIONS
12a Plant and equipment
Carrying amount at beginning of the year
Additions
Disposals
Depreciation
Loss on impairment
Carrying amount at end of year
12b Property
Carrying amount at beginning of the year
Depreciation
Carrying amount at end of year
12c Motor Vehicle
Carrying amount at beginning of year
Additions
Disposals
Depreciation
Carrying amount at end of year
2021
$
2020
$
4,405,401
4,543,998
(4,220,171)
(2,290,967)
185,230
2,253,031
519,323
518,054
(248,500)
(227,800)
270,823
290,254
272,011
324,544
(249,681)
(290,431)
22,330
34,113
478,383
2,577,398
2,253,031
2,341,891
80,485
11,851
(108,159)
-
(141,844)
(100,711)
(1,898,283)
-
185,230
2,253,031
290,254
307,065
(19,431)
(16,811)
270,823
290,254
34,113
45,394
475
(4,276)
-
-
(7,982)
(11,281)
22,330
34,113
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 6
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
2021
$
2020
$
35,755,748
35,375,688
9,404,971
3,900,262
-
1,835,202
4,574,365
10,000
(803,742)
(5,365,404)
48,931,342
35,755,748
-
-
-
-
-
1,835,202
(1,835,202)
-
-
-
48,931,342
35,755,748
2,504,762
-
2,504,762
(2,504,762)
-
-
-
2,504,762
2,504,762
13
EXPLORATION, EVALUATION, DEVELOPMENT AND PRODUCTION
EXPENDITURE
During the year ended 30 June 2021, the Group incurred and capitalised the
following exploration, evaluation, development and production expenditure:
13a Exploration and evaluation phase
Carrying amount at beginning of the year
Capitalised during the year
Reclassification of mine properties
Purchases of tenements
Sale of tenements
Carrying amount at end of year
13b Mine properties
Carrying amount at beginning of the year
Reclassification of mine properties**
Capitalised during the year
Amortised during the year
Carrying amount at end of year
Total exploration and mine properties
13c Mining production expenditure
Carrying amount at beginning of the year
Capitalised during the year
Mine production costs expensed***
Carrying amount at end of year
Total mining production
* Impairment of mining tenements
During the year ended 30 June 2021, there were no impairment losses recorded.
The ultimate recoupment of expenditure above relating to the exploration and
evaluation phase is dependent upon the successful development and commercial
exploitation, or alternatively, sale of the respective areas of interest.
** Reclassification of mine properties
The Group has reclassified prior allocated mine development expenditure as
exploration expenditure.
*** Mine production expenditure
Costs relate to Boorara Gold Project, of which mining commenced in May 2020.
These costs will be expensed in line with revenue recognised from this project.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 7
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
14
RIGHT-OF-USE ASSET AND LEASE LIABILITY
Amounts recognised in the consolidated statement of financial position
Right-of-use asset
Property – head office lease
Opening balance
Initial recognition adjustment
Amortisation
Closing balance
Lease liability
Opening balance
Initial recognition adjustment
Lease payments
Interest expense
Closing balance
Current lease liability
Non-current lease liability
Total lease liability
Amounts recognised in the consolidated statement of profit or loss
Amortisation of right-of-use asset
Property – office lease amortisation
2021
$
2020
$
162,544
206,874
14,392
-
(50,498)
(44,330)
126,438
162,544
169,761
206,874
14,392
-
(59,433)
(49,526)
9,223
12,413
133,943
169,761
47,741
86,202
49,526
120,235
133,943
169,761
50,498
50,498
44,330
44,330
The total cash outflow for the lease in the twelve months to 30 June 2021 was $59,433.
On 1 July 2019, the Company held one lease for the head office based in Nedlands. The lease was renewed on 22
February 2020 for a further two year period with an option to extend for another two years thereafter.
15
TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
Accrued employee entitlements
2021
$
2020
$
375,525
3,102,808
107,105
41,850
375,203
242,373
857,833
3,387,031
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 8
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
16
BORROWINGS
Opening balance
Loan funds borrowed
Repayment of loan
Accrued interest
Interest payments made
2021
$
2020
$
4,245,479
-
-
4,000,000
(4,609,315)
-
-
245,479
363,836
-
4,245,479
During the year ended 30 June 2021, the Group repaid external financing
earlier than anticipated. As at the date of repayment, $363,836 of interest
was incurred.
The loan was secured over mining tenements M26/29 and M26/318, being
the Boorara Gold Project for a period of 12 months, carrying an interest rate
of 20% p.a.
17
PROVISIONS
Rehabilitation of mine site
18
CONTRIBUTED EQUITY
18a Share capital
1,389,664
930,035
1,389,664
930,035
2021
No.
2020
No.
2021
$
2020
$
At the beginning of the year
452,975,200
427,975,200 51,439,580
49,746,534
Placement
Placement Tranche 1
Placement Tranche 2
Exercise of options
Capital raising costs
-
25,000,000
2,000,000
57,500,000
57,500,000
-
-
-
-
-
-
8,050,000
8,050,000
-
-
-
-
(1,113,181)
(306,954)
Total Contributed Equity
567,975,200
452,975,200 66,426,399
51,439,580
18b Terms and conditions of contributed equity
Ordinary shares
Ordinary shares have no par value. Ordinary shares have the right to receive dividends as declared and, in the
event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion
to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in
person or by proxy, at a meeting of the Company.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 5 9
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
18
CONTRIBUTED EQUITY (CONTINUED)
18c Options
Unlisted
Options No.
Unlisted
Options No.
Total
No.
Exercise Price
$0.12
$0.16
Expiry date
30 Sept 2022
30 Sept 2022
Balance at 1 July 2020
12,000,000
12,000,000
24,000,000
Issued during the year
Expired during the year
Exercised during the year
-
-
-
-
-
-
-
-
-
Balance at 30 June 2021
12,000,000
12,000,000
24,000,000
Unlisted
Options No.
Unlisted
Options No.
Unlisted
Options No.
Unlisted
Options No.
Unlisted
Options No.
Total
No.
Exercise Price
$0.25
$0.2912
$0.6988
$0.12
$0.16
Expiry date
31 Aug 2019
9 Dec 2019
28 Feb 2020
30 Sept 2022
30 Sept 2022
Balance at 1 July 2019
500,000
2,743,184
219,456
-
-
3,462,640
Issued during the year
-
-
-
12,000,000
12,000,000
24,000,000
Expired during the year
(500,000)
(2,743,184)
(219,456)
Exercised during the year
Balance at 30 June 2020
-
-
-
-
-
-
-
-
-
-
(3,462,640)
-
12,000,000
12,000,000
24,000,000
18d Performance Rights
As at 30 June 2021, there were 10,150,000 performance rights on issue that, if the vesting conditions are met,
could result in the issue of 10,150,000 ordinary shares in the Company. Further details are contained in Note 24.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 0
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
19
RESERVES AND ACCUMULATED LOSSES
19a
(i) Asset revaluation reserve
Opening balance
Reclassified subsequently to profit or loss
Closing Balance
(ii) Share based payments reserve
Opening balance
Performance rights issued during the year
Options issued under borrowings agreement
Share based payments reclassified to profit or loss
Reclassified subsequently to profit or loss
Closing Balance
Total Reserves
19b Accumulated losses
Opening balance
Revaluation reserves reclassified to profit or loss
Revaluation reserves reclassified subsequently to profit or loss
Profit/(loss) for the year
Closing balance
Asset Revaluation Reserve
The Asset Revaluation Reserve is used to record increments and
decrements on the revaluation of non-current assets.
Share Based Payments Reserve
The Share Based Payments Reserve is used to recognise the fair value
of shares, options and performance rights granted as remuneration.
20
EARNINGS PER SHARE
Operating profit/(loss) after tax attributable to members of Horizon
Minerals Limited
Basic earnings (loss) per share
Diluted earnings (loss) per share
2021
$
2020
$
144,976
144,976
(144,976)
-
-
144,976
1,672,354
1,021,430
219,126
69,047
-
581,877
(1,090,477)
(54,000)
-
-
747,003
1,672,354
747,003
1,817,330
(6,839,940)
(7,883,444)
1,090,477
198,976
-
-
2,447,429
1,043,504
(3,103,058)
(6,839,940)
2,447,428
1,043,504
0.45 cents
0.24 cents
0.45 cents
0.24 cents
Number
Number
Weighted average number of ordinary shares outstanding during the
year used in the calculation of basic earnings per share.
544,502,597
435,029,995
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 1
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
21
REMUNERATION OF AUDITORS
Remuneration for audit services and review of the financial reports of
the parent entity or any entity in the Group to PKF Perth and Rothsay
Auditing. No other fees were paid or payable for services provided by
the auditor of the parent, related practices or non-related audit firms.
PKF Perth
Rothsay Auditing
22
KEY MANAGEMENT PERSONNEL DISCLOSURES
22a Details of remuneration
Short-term benefits
Post-employment benefits
Share based payments
23 STATEMENT OF CASH FLOWS
23a Reconciliation of net cash from operating activities to Profit/(Loss)
after income tax
Operating Profit/(Loss) after income tax
Depreciation
Impairment loss on non-current assets
Net change in fair values of financial assets at fair value through profit or
loss
Profit on sale of tenement
Impairment loss on tenements
Share based payment
Production and exploration expenditure
Movement in assets and liabilities:
Provisions
Receivables
Prepayments
Lease liabilities
Trade creditors and accruals
2021
$
2020
$
55,000
-
55,000
-
55,000
55,000
2021
$
2020
$
1,082,629
718,550
70,901
201,883
57,076
54,663
1,355,413
830,289
2,447,428
1,043,504
169,257
128,803
1,898,283
-
2,255,142
(660,881)
(916,259)
(2,634,596)
-
(127,389)
219,126
650,924
-
-
(95,081)
(1,142,624)
276,682
321,993
(10,325)
765
(577)
(14,434)
(285,659)
444,953
Net cash inflow/(outflow) from operating activities
(6,053,098)
(2,084,063)
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 2
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS
24a Year ended 30 June 2021
As at 1 July 2020, 2,400,00 Class E performance rights were cancelled.
In November 2020, directors and employees were granted 10,150,000 performance rights.
The performance rights were granted at nil consideration, do not have an exercise price and will lapse if the
vesting conditions are not met.
The Performance Rights are issued under the Company’s Employee Incentive Scheme (EIS) approved by
shareholders at the General Meeting held on 29 November 2019. The issue to Directors was approved at the
Annual General Meeting on 26 November 2020.
Each Performance Right will, at the election of the holder, vest and convert to one fully paid ordinary share, subject
to the satisfaction of certain Performance Conditions.
The Performance Conditions relating to Performance Rights will be as follows:
Class of Performance Rights
Service Condition
Class H Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Class I Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Class J Performance Rights
The holder or the holder's
representative remains engaged as
an employee or Director until the
performance condition is satisfied.
Performance condition
(a) Prior to 31 December 2021 the
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 20 cents or more;
or
(b) Prior to 31 December 2021 a
Takeover Event occurs.
(a) Prior to 31 December 2022 the
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 25 cents or more;
or
(b) Prior to 31 December 2022 a
Takeover Event occurs.
(a) Prior to 31 December 2023
volume weighted average
price of the Company's Shares
over 20 consecutive Trading
Days on which the Shares
trade is 30 cents or more;
or
(b) Prior to 31 December 2023 a
Takeover Event occurs.
During the year ended 30 June 2021, $219,126 was recognised as a share based payment made to directors and
employees, with the fair value being recognised over the vesting period. As at 30 June 2021, a total of 10,150,000
performance rights remain unvested.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 3
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2021 (continued)
Set out below is a summary of the performance rights granted:
Number granted
Grant date
Class H.1
Class I.1
Class J.1
Total
1,550,000
1,550,000
1,550,000
4,650,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0679
0.0741
0.0782
Total fair value that would be recognised over the
vesting period if rights are vested
105,245
114,855
121,210
341,310
Number granted
Grant date
Class H.2
Class I.2
Class J.2
Total
1,500,000
1,500,000
1,500,000
4,500,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0549
0.0627
0.0675
Total fair value that would be recognised over the
vesting period if rights are vested
82,350
94,050
101,250
277,650
Number granted
Grant date
Class H.3
Class I.3
Class J.3
Total
333.333
333,333
333,334
1,000,000
26-Nov-20
26-Nov-20
26-Nov-20
Expiry date of milestone achievements
31-Dec-21
31-Dec-22
31-Dec-23
Share price hurdle
Fair value per right*
20 cents
25 cents
30 cents
0.0574
0.0663
0.0714
Total fair value that would be recognised over the
vesting period if rights are vested
19,133
22,100
23,800
65,033
Number remaining at 30 June 2021
3,383,333
3,383,333
3,383,334
10,150,000
Amount expensed in 2021
109,799
63,582
45,744
219,126
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 4
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
24
SHARE BASED PAYMENTS (CONTINUED)
24a Year ended 30 June 2021 (continued)
The fair value of the rights was determined using Hoadley’s Barrier 1 model that takes into account the vesting
condition of the rights, and was based on the following inputs:
Assumptions
Spot price
Vesting hurdle
Exercise price
Class H.1
$0.110
$0.20
Nil
Rights
Class H.2
$0.100
$0.20
Nil
Class H.3
$0.105
$0.20
Nil
Expiry period (years)
31-Dec-21
31-Dec-21
31-Dec-21
Expected future volatility
Risk free rate
Dividend yield
Assumptions
Spot price
Vesting hurdle
Exercise price
80%
0.09%
Nil
80%
0.10%
Nil
Rights
80%
0.08%
Nil
Class I.1
Class I.2
Class I.3
$0.110
$0.25
Nil
$0.100
$0.25
Nil
$0.105
$0.25
Nil
Expiry period (years)
31-Dec-22
31-Dec-22
31-Dec-22
Expected future volatility
Risk free rate
Dividend yield
Assumptions
Spot price
Vesting hurdle
Exercise price
80%
0.09%
Nil
80%
0.10%
Nil
Rights
80%
0.08%
Nil
Class J.1
Class J.2
Class J.3
$0.110
$0.30
Nil
$0.100
$0.30
Nil
$0.105
$0.30
Nil
Expiry period (years)
31-Dec-23
31-Dec-23
31-Dec-23
Expected future volatility
Risk free rate
Dividend yield
80%
0.11%
Nil
80%
0.12%
Nil
80%
0.10%
Nil
24b Option issue
During April 2020, 24,000,000 unlisted options were issued pursuant to the Group’s loan agreement with a third
party.
During the year ended 30 June 2020, $581,877 was expensed to share based payments.
The fair value of these options granted was calculated using the Black-Scholes option valuation methodology and
applying the following inputs:
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 5
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
12,000,000
0.16
2.208
0.065
100%
0.92%
15 April 2020
30 June 2022
$0.022
$265,722
2021
$
2020
$
2,730,000
2,945,000
8,612,420
3,000,000
803,200
3,000,000
12,145,620
8,945,000
24b Option issue (continued)
Weighted average exercise price (cents)
Weighted average life of the options (years)
Weighted average underlying share price (cents)
Expected share price volatility
Risk-free interest rate
Grant date
Expiry date
Value per option
Total value granted
12,000,000
0.12
2.208
0.065
100%
0.92%
15 April 2020
30 June 2022
$0.026
$316,155
25
CAPITAL AND OTHER COMMITMENTS
25a Exploration expenditure commitments
Commitments for minimum expenditure requirements on the mineral
exploration assets it has an interest in are payable as follows:
Within one year
Later than one year but not later than five years
Later than five years
26
RELATED PARTY TRANSACTIONS
26a Directors / Key Management Personnel
Other transactions with Director related entities
Transactions with related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated. Disclosures relating to Key Management Personnel are set
out in Note 22 and the Remuneration Report.
26b Subsidiaries
See Note 27 for further details regarding subsidiaries.
27
INVESTMENT IN CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 1(b):
Name of Entity
Direct Subsidiaries
Black Mountain Gold Ltd
MacPhersons Resources Limited
CGP Minerals Pty Ltd
CGP Assets Pty Ltd
Indirect Subsidiaries
Kalgoorlie Ore Treatment Company Pty Ltd
Polymetals (WA) Pty Ltd
Country of
Incorporation
Class of
Shares
Australia
Australia
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity Holding
2021 %
2020 %
100
100
100
100
100
100
100
100
100
100
100
100
The indirect subsidiaries are direct subsidiaries of MacPhersons Resources Limited.
Horizon Minerals Limited, incorporated in Australia, is the ultimate parent entity of the Group.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 6
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
28
CONTINGENT ASSETS AND LIABILITIES
28a Security bonds are held with respect to tenements held in Northern Territory. Bonds are set by the Department of
Primary Industry and Resources, however there is no certainty that such bonds will be adequate to cover any
environmental damage. Horizon Minerals Limited and its controlled entities are not able to determine the nature
or extent of any further liability in view of changing environmental requirements.
28b Horizon Minerals Limited has been advised of a potential liability arising as a result of the storage of laboratory
waste material at the White Range project site and is currently awaiting approval from the NT Environmental
Protection Authority to bury the material at White Range. As at the date of this report, the potential liability for the
rectification remains unquantifiable.
28c On 29 March 2021, the Group announced the divestment of two royalties covering the Janet Ivy and Otto Bore
gold projects in the Western Australian goldfield for a consideration of $7 million consisting of $4 million in cash
on settlement and $3 million in cash or shares in Vox Royalty Corp. (Vox, TSX: VOX) at Vox’s election and on the
achievement of cumulative royalty payments to Vox of $750,000.
29
FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks; market risk (including fair value interest rate risk
foreign currency risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Group's overall
risk management program focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the financial performance of the Group.
Risk management is carried out by the Board of Directors, who identify, evaluate and manage financial risks as
they consider appropriate.
29a Market risk
Price risk
The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified
on the statement of financial position as financial assets at fair value through profit and loss of $4,236,200 (2020:
$4,266,342).
The investments assets are classified as financial asset at fair value through profit and loss and any changes to
their value is recognised in profit and loss when incurred. The group have used an equity price change of 70%
upper and lower representing a reasonable possible change based upon the weighted average historic share
price volatility over the last 12 months on the investment portfolio held. If the value of the investments held had
moved in accordance with the volatility, and all other factors kept constant, the impact on the profit and loss for
the year ended 30 June 2021 would have been ± $2,965,340 (2020: ± $2,986,439).
Fair value interest rate risk
Refer to (e) below.
29b Credit risk
Credit risk is the risk of financial loss to the Group is a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Group’s receivables from customers.
Presently, the Group undertakes mining, exploration and evaluation activities exclusively in Australia. At the
balance sheet date there were no significant concentrations of credit risk.
(i) Cash and cash equivalents
The Group limits its exposure to credit risk by only investing in liquid securities and only with major Australian
financial institutions.
(ii) Trade and other receivables
The Group’s trade and other receivables relate to gold sales, GST refunds and other income.
The Group has determined that its credit risk exposure on all other trade receivables is low, as customers
are considered to be reliable and have short contractual payment terms. Management does not expect any
of these counterparties to fail to meet their obligations.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 7
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Cash and cash equivalents
Trade and other receivables
Total
Carrying Amount
2021
$
2020
$
11,315,965
5,895,535
1,105,529
3,729,020
12,421,494
9,624,555
29c Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through the ability to raise further funds on the market and the ability to close-out market positions. Due
to the dynamic nature of the underlying businesses, the Board aims at maintaining flexibility in funding through
management of its cash resources.
Maturities of financial liabilities.
30 June 2021
Group
Less
than 6
months
6 – 12
months
Between
1 and 2
years
Between
2 and 5
years
Over
5
years
Total
contractual
cash flows
Carrying
Amount
(assets)/
liabilities
Interest
Rate
(% p.a.)
Non-derivatives
$
$
$
$
$
$
$
Non-interest bearing
payables
857,833
Fixed rate borrowings
-
Total non-derivatives
857,833
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
857,833
-
857,833
-
-
30 June 2020
Group
Less
than 6
months
6 – 12
months
Between
1 and 2
years
Between
2 and 5
years
Over
5
years
Total
contractual
cash flows
Carrying
Amount
(assets)/
liabilities
Interest
Rate
(% p.a.)
Non-derivatives
$
$
$
$
$
$
$
Non-interest bearing
payables
3,387,031
-
Fixed rate borrowings
-
4,000,000
Total non-derivatives
3,387,031
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
3,387,031
-
4,000,000
20%
7,387,031
29d Cash flow and fair value interest rate risk
As the Group has no significant variable interest-bearing assets, the Group's income and operating cash flows
are not exposed to changes in market interest rates.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 8
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
29
FINANCIAL RISK MANAGEMENT (CONTINUED)
29e Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes.
AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following
fair value measurement hierarchy:
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1),
(b)
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (level 2), and
(c)
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
The following table presents the group’s assets and liabilities measured and recognised at fair value at 30 June
2021 and 30 June 2020:
At 30 June 2021
Assets
Financial assets at fair value through profit or loss
Level 1
Level 2
Level 3
Total
- Trading Securities
Other financial assets
- Security deposits
Total assets
At 30 June 2020
Assets
4,236,200
257,927
4,494,127
-
-
-
-
-
-
4,236,200
257,927
4,494,127
Level 1
Level 2
Level 3
Total
Financial assets at fair value through profit or loss
- Trading Securities
Other financial assets
- Security deposits
Total assets
4,266,342
257,927
4,524,269
-
-
-
-
-
-
4,266,342
257,927
4,524,269
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading
and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted
market price used for financial assets held by the group is the current bid price. These instruments are included
in level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equity securities.
Specific valuation techniques used to value financial instruments include:
The use of quoted market prices or dealer quotes for similar instruments.
29f Capital risk management
In employing its capital (or equity as it is referred to on the statement of financial position) the Group seeks to
ensure that it will be able to continue as a going concern and provide value to shareholders by way of increased
market capitalisation. The Group has invested its available capital in intangible assets such as acquiring and
exploring mining tenements and in investments. As is appropriate at this stage, the Group is funded predominantly
by equity.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 6 9
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
30
PARENT ENTITY FINANCIAL INFORMATION
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated profits/(losses)
Total equity
Profit/(Loss) for the year
31
JOINT VENTURES
2021
$
2020
$
14,852,905
8,426,112
56,459,695
42,545,639
71,312,600
50,971,751
844,178
186,202
5,201,313
220,235
1,030,380
5,421,548
70,282,220
45,550,203
66,426,399
51,439,580
747,003
1,817,330
3,108,818
(7,706,707)
70,282,220
45,550,203
10,815,525
(1,429,758)
Horizon Minerals Limited and its controlled entity Black Mountain Gold Ltd (BMG) have interests in unincorporated
joint ventures as follows:
Name of Joint Venture
Notes
Exploration For
Richmond Vanadium
-
Vanadium
2021
75%
2020
100%
A joint venture is not a separate legal entity. It is a contractual arrangement between the participants for the
sharing of costs and output and does not in itself generate revenue and profit.
In March 2017, the Company finalised a strategic development JV with Richmond Vanadium Technology Pty Ltd
(“RVT”) (formerly AXF Vanadium Pty Ltd), a wholly owned subsidiary of the AXF Group. The JV covers Horizon’s
100% interest in the Richmond vanadium project in North West Queensland which include metal rights at the
nearby Julia Creek project which is owned by Global Oil Shale Plc. The project tenements cover 1,520km2 of
Cretaceous Toolebuc Formation. In February 2018, RVT had committed to the second stage expenditure
commitment of A$5 million over 3 years inclusive of a Feasibility Study.
32 EVENTS OCCURRING AFTER REPORTING DATE
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has been financially positive for the
Group up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government and other countries, such as maintaining social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be provided.
The health and wellbeing of all Horizon employees remain a key focus in response to the ongoing COVID-19
pandemic. The work practices and measures implemented to mitigate COVID-19 related risks have so far proven
successful with no known COVID-19 cases across our workforce and minimal disruption to our operations to date.
On 17 August 2021, the Company announced an update to the PFS on the Richmond Vanadium Project JV
adjusting for increased commodity prices and increasing the NPV to A$613M.
There are no other matters or circumstances that have arisen since 30 June 2021 that have or may significantly
affect the operations, results, or state of affairs of the Group in future financial periods.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 0
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
HORIZON MINERALS LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Horizon Minerals Limited (the “Company”) and controlled entities
(consolidated entity), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies
and other explanatory information, and the Directors’ Declaration of the Company and the consolidated entity comprising the
Company and the entities it controlled at the year’s end or from time to time during the financial year.
In our opinion the accompanying financial report of Horizon Minerals Limited is in accordance with the Corporations Act 2001,
including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the
year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 1
PKF Perth
Key Audit Matter
The key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the financial report
for the current year. This matter was addressed in the context of our audit of the financial report as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on this matter. For the matter below, our description of how our
audit addressed the matter is provided in that context.
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit
As at 30 June 2021 the carrying value of exploration
and evaluation assets was $48,931,342 (2020:
$35,755,748), as disclosed in Note 13.
The consolidated entity’s accounting policy
in
respect of exploration and evaluation expenditure is
outlined in Note 1 (e). Estimates and judgments in
relation to capitalised exploration and evaluation
expenditure is detailed at Note 2(f).
Significant judgement is required:
•
•
In determining whether facts and circumstances
indicate that the exploration and evaluation
expenditure should be tested for impairment in
accordance with Australian Accounting
Standard AASB 6 Exploration
for and
Evaluation of Mineral Resources (AASB 6) and;
In determining the treatment of exploration and
evaluation expenditure in accordance with
AASB 6, and
the consolidated entity’s
accounting policy. In particular:
o whether the areas of interest meet the
recognition conditions for an asset; and
o which elements of exploration and
for
expenditures
evaluation
capitalisation for each area of interest.
qualify
matter
Our work included, but was not limited to, the
following procedures:
o
impairment
• conducting a detailed review of management’s
trigger events
assessment of
prepared in accordance with AASB 6 including:
o assessing whether the rights to tenure of the
areas of
interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for tenements that will expire in the near
future;
holding discussions with the Directors and
management as to the status of ongoing
exploration programmes for the areas of
interest, as well as assessing if there was
evidence that a decision had been made to
discontinue activities in any specific areas of
interest; and
obtaining evidence of
the consolidated
entity’s future intention, reviewing planned
expenditure and related work programmes.
• considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable
economically
recoverable reserves existed;
testing, on a sample basis, exploration and
evaluation expenditure incurred during the year
for compliance with AASB 6 and the consolidated
entity’s accounting policy; and
assessment
of
o
•
• assessing the appropriateness of the related
disclosures in Note 1 (e), Note 2(f) and Note 13.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 2
PKF Perth
Other Information
Those charged with governance are responsible for the other information. The other information comprises the information
included in the consolidated entity’s annual report for the year ended 30 June 2021, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’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 consolidated entity or to cease operations, or have no realistic alternative but
to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the consolidated entity’s internal
control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 3
PKF Perth
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the consolidated entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the consolidated entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the
financial report represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the consolidated entity to express an opinion on the financial report. We are responsible for the direction, supervision and
performance of the audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of
the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Horizon Minerals Limited for the year ended 30 June 2021, complies with section
300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based
on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SIMON FERMANIS
PARTNER
10 September 2021
WEST PERTH,
WESTERN AUSTRALIA
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 4
SHAREHOLDER INFORMATION
Additional information required by the Australian Stock Exchange Limited Listing Rules, and not disclosed elsewhere in
this report.
SHAREHOLDINGS
The numbers of ordinary shares held by the substantial shareholders as at 1 September 2021 were:
HSBC Custody Nominees (Australia) Limited
Sparta AG and Delphi Unternehmensberatung Aktiengesellschaft
28,378,278
57,325,157
5.00%
10.09%
UNQUOTED SECURITIES OPTIONHOLDINGS
Nature
Expiry Date
Exercise Price of
Options
Number under
Option
Number of Holders
Unlisted options
30 June 2022
Unlisted options
30 June 2022
12 cents
16 cents
12,000,000
12,000,000
1
1
The holder of the above unlisted options is Sparta AG, an unrelated party.
CLASS OF SHARES AND VOTING RIGHTS
As at 1 September 2021 there were 3,156 holders of the ordinary shares and 1 holder of unlisted options of the Company.
The voting rights attached to the shares are:
at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or
by attorney; and
on a show of hands every person present who is a member has one vote, and on a poll every person present in
person or by proxy or attorney has one vote for each ordinary share held.
DISTRIBUTION OF SHAREHOLDERS (as at 1 September 2021)
Category
Number of Shareholders
1
1,001
5,001
10,001
100,001
–
–
–
–
–
1,000
5,000
10,000
100,000
over
TOTAL HOLDERS
163
455
562
1,452
524
3,156
The number of shareholders holding less than a marketable parcel as at 1 September 2021 was 514.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 5
SHAREHOLDER INFORMATION
TWENTY LARGEST SHAREHOLDERS (as at 1 September 2021)
Rank
Name
No of Shares
% of
holding
1
2
3
4
5
6
7
8
9
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
28,378,278
5.00
SPARTA AG
27,750,000
4.89
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
27,529,952
4.85
BNP PARIBAS NOMINEES PTY LTD
22,621,131
3.98
BILL BROOKS PTY LTD
20,971,902
3.69
SPARTA AG
15,090,397
2.66
DELPHI UNTERNEHMENSBERATUNG AKTIENGESELLSCHAFT
14,484,760
2.55
CS THIRD NOMINEES PTY LIMITED
13,285,720
2.34
GOLDFIELDS HOTELS PTY LTD
13,259,653
2.33
10
SHIPBARK PTY LIMITED
13,000,000
2.29
11
MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
9,240,000
1.63
12
BOND STREET CUSTODIANS LIMITED
7,702,285
1.36
13 MR ASHOK PAREKH
6,720,799
1.18
14
J&D BANKS PTY LTD
6,335,762
1.12
15
TYSON RESOURCES PTY LTD
6,098,502
1.07
16
CS FOURTH NOMINEES PTY LIMITED
5,927,815
1.04
17
CITICORP NOMINEES PTY LIMITED
18
BANKS PTY LTD
19 WGS PTY LTD
5,868,367
1.03
5,586,850
0.98
5,408,888
0.95
20 MR WILLEM RAVESTEYN + MRS ROSEMARY ANNE RAVESTEYN
5,050,000
0.89
Top 20 holders of FULLY PAID ORDINARY SHARES (Total)
260,311,061
45.83
Total Remaining Holders Balance
307,664,139
54.17
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 6
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021
Project
BINDULI
Tenement
Registered Holders
Equity
Notes
L26/261
M26/346
M26/499
M26/549
M26/621
P26/3888
P26/4056
P26/4256
MLA26/855
PLA26/4318
PLA26/4331
P26/4579
P26/4580
BLACK FLAG
P24/5143
P24/5144
P24/5145
P24/5146
P24/5147
P24/5148
P24/5149
P24/5150
P24/5151
P24/5152
P24/5153
P24/5154
P24/5155
P24/5156
P24/5157
P24/5158
P24/5159
P24/5143
P24/5144
P24/5145
P24/5146
P24/5147
P24/5160
P24/5415
ELA26/220
BROAD ARROW P24/5348
BROAD DAM
P16/2820
P16/2821
BURBANKS
M15/731
HRZ
BMG
HRZ
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 7
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
CANNON
E25/349
GOLD MINE
E25/474
E25/497
E25/551
E25/564
E25/566
E25/590
L25/43
L25/48
L25/50
L25/51
M25/182
M25/327
M25/329
M25/330
M25/333
M25/357
P25/2365
P25/2390
P25/2449
P25/2633
P25/2670
PLA25/2668
PLA25/2669
P16/3121
P16/3156
P16/3157
CHADWIN
COOLGARDIE
L15/356
M15/119
M15/26
M15/518
M15/637
M15/1272
M15/1361
M15/1833
M15/1834
P15/5910
P15/6381
P15/6382
E25/543
M26/41
M26/433
M26/534
L27/88
M27/485
GOLDEN
RIDGE
(NIMBUS)
KALPINI
KANOWNA
P26/4064
BELLE
(NIMBUS)
P26/4065
P26/4156
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 8
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
KANOWNA
P27/2379
BELLE
(NIMBUS)
P27/2380
P27/2381
P27/2382
P26/4535
LAKEWOOD
E26/209
P26/4316
P26/4317
P26/4319
P26/4320
P26/4321
P26/4322
P26/4323
P26/4324
P26/4325
P26/4326
P26/4327
P26/4328
P26/4329
P26/4330
P26/4332
P26/4333
P26/4334
P26/4335
P26/4336
P26/4337
P26/4338
P26/4339
P26/4340
P26/4341
P26/4342
P26/4343
P26/4344
P26/4345
P26/4350
PLA26/4360
PLA26/4361
PLA26/4362
PLA26/4363
PLA26/4364
PLA26/4365
PLA26/4366
PLA26/4367
PLA26/4368
PLA26/4369
PLA26/4370
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 7 9
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
PENFOLDS
P26/4127
P26/4129
P26/4132
PENNY’S FIND
PLA27/2480
ROSEHILL
M15/652
M15/1204
P15/6380
WHITE FLAG
E26/168
M26/616
P26/3988
P26/3989
P26/3990
P26/4078
P26/4079
P26/4080
WINDANYA
M24/919
M24/959
P24/4702
P24/4703
P24/4817
P24/4897
P24/5046
P24/5047
P24/5048
P24/5049
P24/5050
P24/5051
P24/5052
P24/5055
P24/5056
P24/5057
P24/5058
P24/5059
P24/5106
P24/5108
P24/5165
P24/5166
P24/5167
P24/5464
E15/1655
E15/1723
E16/470
E16/471
E16/493
E16/494
E16/497
E16/503
E16/506
E16/507
YARMANY
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
HRZ
HRZ
HRZ
HRZ
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
BMG
2
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 8 0
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
YARMANY
Tenement
Registered Holders
Equity
Notes
E16/510
E16/519
E16/521
E16/525
E16/526
P16/3212
P16/3213
BMG
BMG
BMG
BMG
BMG
BMG
BMG
100%
100%
100%
100%
100%
100%
100%
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
E25/511
BOORARA
L25/32
L25/35
L25/36
L26/240
L26/252
L26/266
L26/270
L26/274
L26/275
M25/355
M26/29
M26/161
M26/277
M26/318
M26/490
M26/598
P25/2261
P25/2292
P25/2322
P25/2393
P25/2394
P25/2403
P25/2404
P25/2405
P25/2450
P25/2467
P25/2468
P25/2469
P25/2470
P25/2471
P25/2472
P25/2473
P25/2474
P25/2475
P25/2526
P25/2545
P25/2546
P25/2547
P27/2548
KOTC
KOTC
KOTC
KOTC
POLY
KOTC
POLY
POLY
POLY
KOTC
KOTC
POLY
POLY
POLY
POLY
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 8 1
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/
BOORARA
P27/2549
P27/2550
P25/2551
P25/2552
P25/2643
P25/2644
P25/2645
P25/2646
P25/2647
P26/4020
P26/4035
P26/4036
P26/4053
P26/4054
P26/4055
P26/4199
P26/4200
P26/4201
P26/4202
P26/4203
P26/4204
P26/4205
P26/4206
P26/4207
P26/4208
P26/4297
P26/4298
P26/4299
P26/4300
P26/4301
P26/4302
P26/4381
P26/4382
P26/4383
P26/4384
P26/4385
P26/4386
P26/4405
P26/4431
PLA26/4432
P26/4467
P26/4468
P26/4478
P26/4479
P26/4505
P26/4509
P26/4510
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
POLY
POLY
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 8 2
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
NIMBUS/BOORARA
P26/4511
P26/4512
P26/4513
P26/4514
P26/4515
P26/4516
P26/4517
P26/4518
P26/4582
P27/2265
P27/2266
P27/2267
P27/2268
P27/2269
P27/2270
P27/2271
P27/2772
P27/2273
P27/2274
P27/2275
P27/2276
P27/2387
P27/2388
P27/2389
P27/2408
P27/2429
P27/2431
P27/2432
P27/2433
P27/2434
P27/2435
P27/2436
P27/2437
P27/2438
P27/2446
P27/2447
P27/2448
P27/2449
P27/2466
P27/2467
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
KOTC
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 8 3
TENEMENT SCHEDULE
AS AT 1 SEPTEMBER 2021 (CONTINUED)
Project
Tenement
Registered Holders
Equity
Notes
Joint Ventures
Yarmany JV
Gold Tiger
E16/492
E16/499
Penny’s Find JV
M27/156
L27/90
L27/91
L27/92
L27/93
G27/1
Richmond JV
EPM25163
EPM25164
EPM25258
EPM26425
EPM26426
Abbreviations
BMG
BMG
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
BMG/ORM
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
HRZ/RVT
100%
100%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
BMG 50% / ORM 50%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
HRZ 75% / RVT 25%
3
3
4
4
4
4
4
4
5
5
5
5
5
BMG
Black Mountain Gold Ltd
ORM
Orminex Ltd
HRZ
Horizon Minerals Limited
POLY
Polymetals (WA) Pty Ltd
KOTC
Kalgoorlie Ore Treatment Company Pty Ltd
RVT
Richmond Vanadium Technology Pty Ltd (formerly AXF
Vanadium Pty Ltd)
Notes
(1)
(2)
(3)
(4)
(5)
During May 2021, the Company executed a binding Tenement Sale Agreement with private gold mining company Aurenne
Group Holdings Pty Ltd for the acquisition of 100% interest in the Bulong South, Glandore and Cowarna gold projects in the
Western Australian goldfields. Registrations of the transfers of the tenements is to occur at the Department of Mines, Industry
Regulation and Safety.
Royalty of $1 per tonne of ore mined and treated from M26/616 is payable to Pamela Jean Buchhorn.
An earn-in JV whereby Gold Tiger Resources (Australia) Limited can earn 90% over 4 stages (4 years) by spending A$300,000
and paying Horizon $120,000 non-refundable cash amounts.
A development JV whereby Horizon Minerals purchased 50% interest from Orminex Ltd, Horizon to fund first $1M in pre-
development expenditure with the joint venture partners funding the project on a 50:50 basis thereafter.
An earn-in JV whereby Richmond Vanadium Technology (RVT) can earn 25% of the project area by spending A$1M within a 1
year period and maintaining the project in good standing which was completed in February 2018. Further expenditure of $5
million by RVT to solely contribute on the projects to earn a further 50% over a 3 year period ending approximately July 2021.
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 2 1
P a g e 8 4
163‐167 Stirling Highway Nedlands WA 6009
PO Box 1104 Nedlands WA 6909
ACN 007 761 186 ABN 88 007 761 186
T 08 9386 9534
E info@horizonminerals.com.au
W horizonminerals.com.au
H o r i z o n M i n e r a l s L i m i t e d A n n u a l R e p o r t 2 0 1 6
P a g e 8 5