Investigator Resources Limited
ABN 90 115 338 979
Annual Report - 30 June 2020
Investigator Resources Limited
Contents
30 June 2020
Corporate directory
Chairman and Managing Director’s Letter
Review of Operations
Tenement Schedule
Financial Report
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Investigator Resources Limited
Shareholder Information
2
3
4
10
11
20
21
22
23
24
25
50
51
54
1
Investigator Resources Limited
Corporate Directory
30 June 2020
Directors
Kevin Wilson – Non-Executive Chairman (appointed Chairman 20 November 2019)
David Ransom – Non-Executive Director (resigned as Chairman 20 November 2019,
Resigned as Non-Executive Director 14 July 2020)
Andrew McIlwain - Managing Director (appointed Managing Director 1 October 2019)
Andrew Shearer - Non-Executive Director (appointed 14 July 2020)
Joint Company Secretaries
Melanie Leydin
Anita Addorisio
Notice of annual general meeting The Annual General Meeting will be held on Friday, 20 November 2020
Registered office
18 King Street, Norwood SA 5067
Principal place of business
18 King Street
Norwood SA 5067
Share register
Auditor
Solicitors
Computershare Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000
Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide SA 5000
Baker & McKenzie
L19, CBW, 181 William Street
Melbourne VIC 3000
Stock exchange listing
Investigator Resources Limited shares and options are listed on the Australian
Securities Exchange (ASX code: IVR and IVROA)
Website
www.investres.com.au
2
Investigator Resources Limited
Chairman and Managing Director’s Letter
30 June 2020
Dear Shareholder,
This year has seen a number of developments that have driven the focus and direction of our Company. These include
the broader global economic and COVID-19 pandemic challenges, as well as the results of our continuing exploration
efforts and growth objectives and, above all, the recent strong rises in the silver price.
The Company enjoys an enviable position in that the Paris Silver Project, which was discovered by and is 100%-owned
by Investigator, provides significant exposure to upward movements in silver commodity prices.
It is within this context that we are pleased to report that the Company had prepared for an improvement in the silver price
which has allowed us to mobilise quickly when the price trend turned positive.
The preparatory work included developing a pathway for completion of a Pre-Feasibility Study at Paris. This, in-turn,
enabled us to present a plausible path forward for Paris and, with overwhelming support shown by shareholders, we
raised $8 million of new equity capital in July 2020. With funding secured, we have now engaged contractors for infill
drilling at the Paris resource and for exploration drilling more regionally. This will commence in early September 2020.
Our aim here is to improve the confidence in the resource of Paris. In previous programs, additional drilling has improved
the project’s silver grade and we are hopeful that this will again be the case. We are also seeking potential additions to
Paris through targeted regional exploration.
The completion of the PFS during 2021 will provide insight into the key operating parameters of the project and the cost
assumptions that will form the basis of pursuing comprehensive project economic analysis, allowing us to make decisions
around future project development and finance.
As shareholders you are probably acutely aware of substantial upward movements in the price of silver, which offer a
strong boost to the economic potential for the Paris Silver Project.
As a board we obviously can’t predict future prices for silver other than to note the current favourable price movements
and the falling head grades and COVID-19 restrictions at many operating silver mines around the worlds are constraining
silver supply.
Elsewhere, in July 2019, we announced that Investigator had secured the financial support of OZ Minerals to undertake
an exploration program at the Maslins Iron Oxide Copper Gold (IOCG) Project. Regarded as a significant geophysical
anomaly, Maslins presented the potential to host mineralisation analogous to OZ Minerals’ Carrapateena Mine, 80kms to
the north. Funded by OZ Minerals, we drilled the highest ranked targets, but this ultimate test failed to demonstrate
economic mineralisation.
Whilst a disappointing outcome for all stakeholders, the approach of having another party assume the funding risk of
progressing the Maslins Project through an earn-in arrangement, protected Investigator’s available cash position.
We have also continued to review opportunities to diversify Investigator’s portfolio of assets through the acquisition of an
additional project. Focus has been maintained on domestic precious metals opportunities and, while many have been
considered, few have been deemed clear prospects to create significant accretive value. This challenge has increased
with the rapid improvement in gold and silver prices that have generated higher expectations from vendors.
Keeping markets and shareholders informed of our progress is an essential part of our business and as a board we are
very focussed on ensuring that we maintain open and timely communication. This is through a number of forums, including
a regular newsletter sent to those who have registered on the “Subscribe to News” function on our website. We also
encourage shareholders to take the time to read more about the detail of our work at Paris, and other projects, on the
Investigator website.
We thank you sincerely for your continued interest and support of Investigator and look forward to enjoying future success
with you.
Kevin Wilson
Chairman
Andrew McIlwain
Managing Director
3
Investigator Resources Limited
Review of Operations
30 June 2020
Paris Silver Project
The Company’s 100% owned Paris Silver Project is located on South Australia’s Eyre Peninsula, 70km northwest of the town
of Kimba. The Paris Silver Project is one of the highest grade undeveloped primary silver projects in Australia. With a JORC
2012 resource of 9.3 Mt @ 139g/t Ag and 0.6% Pb for 42 Moz contained silver and 55 kt contained lead estimated in 2017,
Paris is a shallow, high-grade silver deposit amenable to simple open pit mining.
Category
Tonnage
(Mt)
Silver Grade
(g/t)c
Contained
silver (Moz)
Lead Grade (%) Contained lead
Indicated
Inferred
Total
4.3
5.0
9.3
163
119
139
23
19
42
0.6
0.6
0.6
Table 1: Paris Silver Project Mineral Resource Estimates
(kt)
26
29
55
Based on 50g/t silver cut-off grade.
Values may not sum due to rounding.
Note:
•
•
• Density: Indicated - 2.20t/m3, Inferred - 2.22t/m3 and Average - 2.21t/m3
•
The Company confirms that it is not aware of any new information or data that materially affects the Paris Silver
Project Mineral Resource, since its release in April 2017.
During the first half of FY2020 the Company engaged an industry leading consulting structural geologist to undertake a review
of the geological setting of Paris. This review, complemented by the in-house development of a complete structural model,
identified the opportunity to further improve the Paris project’s resource through targeted definition drilling and geostatistical
review.
The aforementioned review and the backdrop of the rising silver prices, has drawn Directors to the potential value deliverable
from successful development of the Paris Silver Project.
At year end the Company was identifying and quantifying the tasks necessary to complete the project’s Pre-Feasibility Study.
At PFS stage, an improved level of confidence in key operating parameters and cost assumptions enables a more
comprehensive project economic analysis, leading to improved development and finance decisions.
Drilling planned to upgrade Paris Resource
Approximately 45% of the total 9.3Mt Resource estimate is classified as Indicated and the remaining 55% as Inferred. The
conceptual open pit mine design generated from the 2017 resource estimation is shown in plan in Figure 1 below.
A drill plan has been designed to convert additional Inferred Resources to Indicated status and the drill collar locations are
shown as yellow dots in Figure 1 below. Historical drilling is shown as black dots.
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Investigator Resources Limited
Review of Operations
30 June 2020
Figure 1: Paris Silver Project – Indicated Resource (red) and Inferred Resource (blue) – shown in plan within
conceptual pit outline (grey), with planned drilling (yellow dots) and historical drilling (black dots)
Ore processing and plant design review
A review of the preferred proposed processing route was undertaken late in the financial year by engineering consultant
Mincore. The review identified the potential to deliver incremental improvements in mineral recoveries. One area of further
work proposed is to investigate whether ultra-fine grind technology can deliver enhanced silver recovery on part of the
proposed feedstock.
Next steps to complete Pre-feasibility Study
It is intended that on completion of the proposed Paris infill drill programme, a re-estimation of the mineral resource will be
undertaken. In addition, review of the previous geotechnical assessment will be completed, with an expectation that the pit
wall slope angles assumed in concept studies can be steepened. This is expected to deliver lower waste to ore (strip) ratios,
reducing total material movements and logically enhancing the project’s economics. Both the revised resource estimate and
geotechnical parameters will form inputs to the PFS open pit optimisation study, which will include mine sequencing and
production scheduling.
Maslins Iron Oxide Copper Gold Project
The Maslins Project is located in the Olympic Domain belt of the Stuart Shelf in the Gawler Craton, South Australia and
presents as untested geophysical anomaly with potential to host Iron Oxide Copper Gold (“IOGC”) mineralisation.
In early 2018, the Company joined with Geoscience Australia (“GA”) and the Geological Survey of South Australia (“GSSA”)
to undertake an infill Magneto-Telluric (“MT”) geophysical survey across the Maslins target area. The encouraging data from
this survey, coupled with 2D and 3D modelling of acquired gravity and magnetic data, culminated in July 2019 with the ASX
announcement of the execution of an Heads of Agreement with OZ Minerals Ltd in which OZ Minerals could spend up to $10
million over 6 years to earn 70% of the Maslins Project (ASX:15 July 2019).
In January 2020, Investigator commenced its 2,200m drilling program at Maslins. Maslins Hole #1 was planned to a depth of
1,000m whilst Maslins Hole #2 was targeting 1,200m.
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Investigator Resources Limited
Review of Operations
30 June 2020
In the March 2020 Quarter, a total of 2,499m was drilled in two holes. During the June Quarter, approximately 300m of drill
core was selected for analysis. Included in the suite of elements requested to be considered, are pathfinders for Iron Oxide
Copper Gold (“IOGC”) mineralisation. Whilst some occurrences of copper mineralisation were identified, both within
intersected dykes and within fault breccia zones, no copper assays of significance were reported.
With the 2019 preparatory geophysics and the drill program that was undertaken in the March 2020 Quarter, OZ Minerals’
met their Stage 1 earn-in commitment of A$1.4 million.
Subsequent to the end of the financial year, OZ Minerals formally notified the Company they do not intend to proceed to Stage
2 of the earn-in and will withdraw from the Maslins Project. OZ Minerals have not earned any interest in the project which
remains 100% owned by Investigator.
Other Tenements
South Australia
During the second half of the 2020FY, Investigator ceased all field operations and associated community contact, including
engagement with Traditional Owner groups and remote pastoralists due to restrictions associated with the COVID-19
pandemic.
When practical travel and communication resumes, Investigator will seek to re-engage with the Wilyakali people – the
Traditional Owners of the Wiawera tenement area – with the objective of achieving a mutually beneficial working relationship
to ensure that all parties’ interests are protected and to enable exploration activities to commence.
Exploration work plans for remaining tenements have been reviewed with a focus on the Uno-Morgans tenement areas, which
are located in a similar geological setting to Paris and other Stuart Shelf licences which may have potential for sediment
hosted copper mineralisation. Field work planned for later in 2020 will include initial geological mapping and soil sampling
programs to determine if key project criteria are met to warrant further work.
Renewal applications for Treloars, Screechowl Creek, Algebuckina, Plumbago and Uno Range exploration licences were all
submitted with the Department for Energy and Mining during the period in accordance with regulatory requirements.
At the end of the June 2020 Quarter, application was made for 2 tenement areas within the Fowler Domain within the Western
Gawler area in South Australia. Recent drilling in the Fowler Domain by others (Western Areas - ASX:WSA – 23 June 2020)
has identified significant nickel and copper sulphide mineralisation immediately adjacent to these application areas.
Figure 2: Investigator’s South Australian tenements
6
Investigator Resources Limited
Review of Operations
30 June 2020
Tasmania – White Spur – EL2/2020
As reported in the March 2020 Quarter, an application was submitted for an exploration licence (EL2/2020) in the highly
mineral endowed Mount Read Volcanic belt of North West Tasmania. The licence was granted subsequent to the end of the
quarter.
Investigator applied for the ground following the use of “machine learning” and predictive discovery tools to identify an area of
interest (White Spur anomaly) in the highly mineral endowed Mount Read Volcanic belt in the North West region of Tasmania.
The “machine learning” or “neural analysis” exercise was focussed on using available data from known mineral occurrences
to target the potential location of similar mineralisation. Target minerals were the base metals suite – copper, lead and zinc –
and gold. In particular, the White Spur anomaly was identified as having similar characteristics to the Rosebery mine which
has operated continuously from 1936, producing zinc, copper, lead and gold. Located within available ground, Investigator
made application for an Exploration Licence that has subsequently been granted.
The 84km2 tenement lies immediately to the south of the Rosebery and historic Hercules zinc mines and west of, and adjacent
to the Henty Gold Mine that has produced approximately 1.3M oz since its commissioning in 1996.
No significant exploration effort has been undertaken on the area since 2013 when the presence of thallium, a known vector
to massive sulphide mineralisation, was reported.
An initial program was prepared and field work will be undertaken subject to COVID-19 travel restrictions and site access.
Figure 3: Investigator’s “White Spur” exploration licence application (subsequently granted). The EL is held via
Gillies Resources – a 100% owned IVR subsidiary and is located on the West Coast of Tasmania, south of
MMG’s Rosebery Mine and west of Diversified Minerals’ Henty Mine.
Corporate
People
On 14 October 2019 the Company announced the appointment of Andrew McIlwain as Managing Director. Andrew joined the
Company as a Non-executive Director on 20 June 2018 and took on the role of Acting CEO in August 2018.
Dr David Ransom stepped down as Chairman following the Company’s Annual General Meeting on 20 November 2019 and
Kevin Wilson assumed the role of Chairman. Dr David Ransom resigned from the Board, subsequent to the end of the financial
year.
Subsequent to the end of the financial year, Andrew Shearer, a geologist with more than 25 years’ experience in various roles
and capacities in the mining and finance sectors was appointed as a Non-Executive Director to the Board of Investigator. With
a geology and finance background he has experience in the resources industry from exploration through to development. As
a Resources Analyst, Mr Shearer has been exposed to the global resources sector covering small to mid-cap resource stocks
7
Investigator Resources Limited
Review of Operations
30 June 2020
across a broad suite of commodities. Prior to moving into the finance sector, he spent over a decade working in the minerals
exploration industry in technical and senior management roles. Andrew brings strong professional skills and experiences
across investor relations and capital markets.
Andrew is a currently a Non-Executive Director for Andromeda Metals (ASX:ADN) and Resolution Minerals (ASX:RML).
Impairment
As per AASB 6 – Exploration and Evaluation of Mineral Resources, Management have undertaken an impairment review and
assessed the carrying value of the Company’s exploration and evaluation assets. Management have taken a pragmatic and
conservative approach in determining whether it is likely that future economic benefits will be derived from the exploration and
evaluation assets. A review of the consolidated entity's exploration licenses was undertaken as at 31 December 2019. Due to
the decision to relinquish the Goog's Lake exploration lease (EL5512) during the prior period and Management's assessment
that exploration cost on Algebuckina tenement (EL6187) may not be recoverable, the related exploration and evaluation assets
have been written off as a part of the impairment charge of $106,698.
In a review of the carrying value of the assets of the Company, the Directors have concluded that historical exploration
expenditure on tenements that have not yet yielded a JORC compliant resource is to be written off.
Following their review of the accounts for the 2019/2020 Financial Year, the Directors resolved to impair approximately $13
million of the total Exploration and Evaluation value carried forward at 30 June 2020.
The remaining balance of approximately $17 million of Exploration and Evaluation is entirely attributable to the Company’s
100% owned Paris Silver Project.
The Directors consider that this approach is both a prudent and conservative approach to managing the Company’s balance
sheet.
Reduction in overhead costs
Recognising the challenging market environment that currently prevails, the Investigator board adopted a strategy to minimise
cash expenditures in order to maximise available cash for future commercial opportunities.
In doing so, the following actions were adopted during the 2019/2020 Financial Year:
• Minimising exploration expenditures across all South Australian exploration tenements, reflective of the “expenditure
holiday” granted by the South Australian Government;
• Deferral of payment of statutory rents on all South Australian tenements until 31 December 2020 - in line with the
relief granted by the South Australian Government;
• Reduction of Director fees and employee salaries by 20%; and
• Curtailment of discretionary expenditures.
The Directors are confident that these strategies will hold Investigator’s finances in good stead through 2020.
Cash
The Company had $2.50 million cash at bank as at 30 June 2020.
JMEI credits
Post the financial year, the Company received notification from the Australian Taxation Office (“ATO”) of its successful
application to participate in the Junior Minerals Exploration Incentive (“JMEI”) to a total of $260,000.
The JMEI scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders
by forgoing a portion of their carried forward tax losses that have arisen from allow-able expenditure on "greenfield" exploration
and applies to Shareholders who acquire new shares through a share placement undertaken by the Company. Australian
resident shareholders that are issued with JMEI credits will generally be entitled to refundable tax offsets (for individual
shareholders or superannuation funds) or franking credits (for companies).
Other
Subsequent to the end of the financial year on 30 July 2020, the Company announced that it had received firm commitments
to raise $8 million through a share placement, with funds raised to be directed to the advancement of the Company’s owned
Paris Silver Project.
The share issue was undertaken in a two-tranche placement of approximately 266.7 million fully paid ordinary shares in the
Company at an issue price of $0.03 per share, raising $8 million (before costs).
8
Investigator Resources Limited
Review of Operations
30 June 2020
Competent Persons Statement
The information in this Annual Report that relates to exploration results is based on information compiled by Mr. Jason Murray
who is a full-time employee of the company. Mr. Murray is a member of the Australasian Institute of Mining and Metallurgy.
Mr. Murray has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration,
and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves
Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Murray
consents to the inclusion in this report of the matters based on information in the form and context in which it appears.
Forward Looking Statements
This Financial Report includes certain forward-looking statements that have been based on current expectations about future
acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and
assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in
such forward-looking statements.
These factors include, among other things, commercial and other risks associated with the meeting of objectives and other
investment considerations, as well as other matters not yet known to the Company or not currently considered material by the
Company.
9
Investigator Resources Limited
Tenement Schedule
30 June 2020
Corporate disclosure and reporting
The status of Investigator’s tenements are detailed in the table below.
Tenement Number
Tenement Name
Project: Peterlumbo (IVR 100%)
Registered
Holder
Note
6347
Peterlumbo
Sunthe
Current
Project: Uno/Morgans (IVR 100%)
5845
5933
5913
Uno Range
Morgans
Harris Bluff
Project: Tasmania (IVR 100%)
E2/2020
White Spur
Project: Maslins (IVR 100%)
5704
5705
5706
5738
6402
Project: Curnamona (IVR 100%)
5938
6192
6345
6253
Yalymboo-Oakden Hills
Whittata (Maslins)
Yudnapinna
Birthday
Kootaberra
Wiawera
Plumbago
Treloars
Olary/Bulloo Creek
Project: Adelaide Geosyncline (IVR 100%)
5999
6226
Cartarpo
Screechowl Creek
Project: Northern Craton (IVR 100%)
6187
Algebuckina
Total Granted Project Tenement Area
Applications
ELA 2020/78
ELA 2020/79
Notes:
TBA
TBA
GRL
GRL
GRL
GIL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
Sunthe - Sunthe Uranium Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd
GRL - Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd
GIL - Gillies Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd
IVR- Investigator Resources Ltd
10
Renewal applied for
Current
Current
Current
Current
Current
Current
Current
Current
Current
Renewal applied for
Renewal applied for
Current
Current
Renewal applied for
Renewal applied for
Application
Application
Investigator Resources Limited
Directors' report
30 June 2020
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'consolidated entity') consisting of Investigator Resources Limited (referred to hereafter as the 'Company' or 'parent
entity') and the entities it controlled at the end of, or during, the year ended 30 June 2020.
Directors
The following persons were Directors of Investigator Resources Limited during the whole of the financial year and up to the
date of this report, unless otherwise stated:
Kevin Wilson Non-Executive Chairman (appointed as Chairman 20 November 2019)
David Ransom Non-Executive Director (resigned as Chairman 20 November 2019, Resigned as Non-Executive
Director 14 July 2020)
Andrew McIlwain Managing Director (appointed as Managing Director 1 October 2019)
Andrew Shearer Non-Executive Director (appointed 14 July 2020)
Principal activities
The principal activity of the Company during the year was base mineral exploration within Australia.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $14,014,569 (30 June 2019: $2,868,319).
The net result for the year includes receipt of the management fee associated with the Maslins Project of $79,277 and an
impairment charge of $13,160,787 associated with exploration and evaluation assets.
During the year, the Company incurred $659,050 expenditure on exploration activities across the Company’s tenements,
compared with $907,442 for the prior year.
At 30 June 2020, the Company had a cash position of $2,500,090 (2019: $1,204,981).
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
14 July 2020, Dr David Ransom resigned as Non-executive Director and Mr Andrew Shearer was appointed as the Non-
Executive Director.
On 13 August 2020 Mr Shearer was issued 2,000,000 unlisted options as part of his sign-on package, exercisable at $0.035
with an expiry of 20 November 2022.
As announced by the company on 21 July 2020, under the terms of the Earn-In Agreement, OZ Minerals formally notified
the Company that they would not commit to Stage 2 of the Agreement.
On 30 July 2020, the Company announced it had undertaken a Placement of ordinary shares to professional and
sophisticated investors raising $8 million (excluding costs) in two tranches to be used towards the development of the Paris
Silver Project and general working capital. The Placement was in two tranches of which the Company received $5.5 million
under Tranche 1 on 6 August 2020. A further $2.5 million under Tranche 2 is subject to a shareholder’s approval at a General
Meeting to be held on 23 September 2020.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
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Investigator Resources Limited
Directors' report
30 June 2020
Likely developments and expected results of operations
During the next financial year, the Company will pursue the strategy set out in the Review of Operations above.
On 18 August 2020, the Company advised that the drill preparations for the Paris Silver Project are well advanced and will
be the Company’s main focus for the coming year.
The COVID-19 global pandemic presents strategic, operational and commercial uncertainties for the Company. There are
increased uncertainties around the duration, scale and impact of the COVID-19 outbreak. The Company is taking various
measures to mitigate the impact on its operations including employees, partners and customers. The Board and management
team continue to assess the potential impacts on the business, however given the continued uncertainties the future financial
impact, if any, cannot be determined.
Environmental regulation
The Company's operations are subject to significant environmental regulation under Commonwealth and, State legislation
in relation to the discharge of hazardous waste and minerals arising from exploration activities conducted by the Company
in any of its tenements. At the date of this report there have been no known breaches of any environmental obligation.
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3
years):
Special responsibilities:
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3
years):
Interests in shares:
Interests in options:
Kevin Wilson
Non-Executive Chairman
BSc (Hons), ARSM, MBA
Kevin has over 30 years’ knowledge and experience in the minerals and finance
industries. Previously Kevin was the Managing Director of Rey Resources Limited
(ASX: REY), an Australian energy exploration company, from 2008 to 2016 and
Leviathan Resources Limited, a Victorian gold mining company, from its initial public
offering through to its sale in 2006.
He has prior experience as a geologist with the Anglo American Group in Africa and
North America and as a stockbroking analyst and investment banker with CS First
Boston and Merrill Lynch in Australia and USA. Mr Wilson currently serves as Non-
Executive Chairman of Navarre Minerals Limited (ASX: NML) and Non-Executive
Director of Los Cerros Limited (ASX: LCL).
Navarre Minerals Limited (ASX: NML) and Los Cerros Limited (ASX: LCL)
None
None.
Nil
2,000,000 (unlisted)
Andrew McIlwain
Managing Director
BE (Mining) Melb, MAusIMM, MAICD
Andrew has over 30 years’ experience in the mining industry. He is a qualified mining
engineer and has held operational, technical, senior management and executive roles
within Mount Isa Mines Limited, Central Norseman Gold Corp, WMC Resources,
Lafayette Mining and Unity Mining. More recently, he has been an independent
consultant for a number of Australian resource companies focusing on corporate
transactions and has acted as an independent Non-Executive Director of numerous
resource companies including Kidman Resources and Tusker Gold.
Andrew brings operational and corporate experience in a variety of fields including
establishment of operational sustainability, project development and both equity and
conventional debt financing. Andrew is Non-Executive Chairman of Emmerson
Resources Ltd (ASX: ERM).
Emmerson Resources Ltd (ASX: ERM).
None
1,100,000
10,000,000 (unlisted), 15,000,000 (Performance Rights)
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Investigator Resources Limited
Directors' report
30 June 2020
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3
years):
Interests in shares:
Interests in options:
Andrew Shearer
Non-Executive Director
BSc and MBA
Andrew holds a BSc (Hons) degree from Adelaide University and an MBA from the
University of South Australia and has been involved in the mining and finance industries
for more than 25 years. Most recently, Andrew held the position of Senior Resource
Analyst with PAC Partners Pty Ltd and previously with Phillip Capital, and Austock.
Establishing his career in the industry, Andrew held technical and senior management
roles with Mount Isa Mines Limited, Glengarry Resources Limited and the South
Australian Government. As an analyst, Andrew covered small to mid-cap resource
stocks across a broad suite of commodities and brings a breadth of experience in equity
research, investor relations, valuations, supply and demand analysis and capital
markets.
Non-Executive Director for Andromeda Metals (ASX:ADN), Resolution Minerals
(ASX:RML) and Okapi Resources Limited (ASX:OKR)
Nil
Nil
2,000,000 (unlisted)
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
Company secretaries
Ms Melanie Leydin
Ms Leydin is a Chartered Accountant and the founding director of Leydin Freyer, an independent firm specialising in company
secretarial and accounting services for ASX listed companies, with over 25 years’ experience in the accounting profession
and over 13 years’ experience as a Company Secretary for ASX listed companies.
Anita Addorisio
Ms Addorisio is an experienced finance professional with over 20 years’ senior finance experience and 7 years’ experience
as a Company Secretary for ASX listed companies within several industry sectors including resources. She is a Fellow of
CPA and holds a Masters in Accounting.
Meetings of Directors
The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2020, and
the number of meetings attended by each Director were:
D. Ransom
K. Wilson
A. McIlwain
Full Board
Attended
Held*
14
14
14
14
14
14
*
Held: represents the number of meetings held during the time the director held office.
Due to its size and activities the Company does not have separate Board committees
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.
13
Investigator Resources Limited
Directors' report
30 June 2020
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
●
●
●
●
competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high-quality personnel.
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the consolidated entity.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●
having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives
●
Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●
rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards
In accordance with best practice corporate governance, the structure of non-executive director and executive director
remuneration is separate.
Non-executive director’s remuneration
Fees and payments to Non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market.
The Chairman's fees are determined independently to the fees of other non-executive directors based on comparative roles
in the external market. The Chairman is not present at any discussions relating to the determination of his own remuneration.
ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 18 November 2013, where the
shareholders approved a maximum annual aggregate remuneration of $500,000.
Executive remuneration
The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.
14
Investigator Resources Limited
Directors' report
30 June 2020
The Executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the Executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.
Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.
The short-term incentives ('STI') are payable to Executives based upon the attainment of agreed corporate and individual
milestones and are reviewed and approved by the Board of Directors. During the year, no STI were paid to the Executives.
The long-term incentives ('LTI') include long service leave and share-based payments. Executives are issued with equity
instruments as LTIs in a manner that aligns this element of remuneration with the creation of shareholder wealth. LTI grants
are made to Executives who are able to influence the generation of shareholder wealth and thus have a direct impact on the
creation of shareholder wealth. During the year, the company issued 10,000,000 Options and 15,000,000 Performance
Rights to Andrew McIlwain and 2,000,000 Options to Kevin Wilson on 13 December 2019 which was approved by
shareholders at the Annual General Meeting held on 20 November 2019.
Consolidated entity performance and link to remuneration
The Company is a minerals exploration entity and as such there is no direct relationship between the remuneration policy
and the Company’s financial performance.
Share prices at the end of the current financial year and the previous four financial years were:
Share price (cents per share)
2020
1.7
2019
1.1
2018
1.1
2017
3.0
2016
3.4
Share prices are recognised to be subject to numerous factors including market sentiment and the international metal prices
which may move independently of the performance of the Key Management Personnel.
Use of remuneration consultants
During the financial year ended 30 June 2020, the consolidated entity has not engaged any remuneration consultants.
Voting and comments made at the company's 20 November 2019 Annual General Meeting ('AGM')
At the 20 November 2019 AGM, 94.11% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2019. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
15
Investigator Resources Limited
Directors' report
30 June 2020
Short-term benefits
Post-
employment
benefits
Long-
term
benefits
Share-
based
payments
30 June 2020
Non-Executive Directors:
D. Ransom*
K. Wilson
Executive Directors:
A. McIlwain**
Other Key Management
personnel:
A. McIlwain
Cash
salary
Cash Termination
and fees bonus payment
$
$
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
57,192
57,915
204,087
42,500
361,694
-
-
-
-
-
-
-
-
-
-
5,433
5,502
19,388
-
30,323
-
-
-
-
-
-
14,000
62,625
77,417
90,043
313,518
-
104,043
42,500
496,060
*
**
Subsequent to year end, D. Ransom resigned as Non-Executive Director effective from 14 July 2020.
A. McIlwain was appointed as Managing Director effective from 1 October 2019.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash
salary
and fees
$
Cash
bonus
$
Termination
payment
$
Super-
annuation
$
Long
service
leave
$
Equity-
settled
$
Total
$
59,361
54,795
29,072
107,019
122,500
83,881
60,000
516,628
-
-
-
-
-
-
-
-
-
-
5,639
5,205
-
-
-
137,812
2,762
31,008
-
75,797
-
-
-
137,812
-
7,137
-
51,751
-
-
-
75,797
-
-
-
-
-
-
-
-
65,000
60,000
31,834
351,636
122,500
91,018
60,000
781,988
30 June 2019
Non-Executive Directors:
D. Ransom
K. Wilson
Executive Directors:
A. McIlwain*
J. Anderson**
Other Key Management
Personnel:
A. McIlwain*
A. Thin***
M. Gaudio***
*
A McIlwain was appointed as Acting Chief Executive Officer from 16 August 2018. The cash salary of $122,500 above
for the year ended 30 June 2019 is towards A McIlwain's role as Acting Chief Executive Officer.
J.Anderson resigned as the Manager Director on 16 August 2018.
**
*** (i) A.Thin resigned as the commercial manager effective from 16 November 2018.
(ii) M. Gaudio resigned as the Company Secretary and Chief Financial Officer effective from 31 December 2018.
16
Investigator Resources Limited
Directors' report
30 June 2020
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details
of these agreements are as follows:
Name:
Title:
Agreement commenced:
Term of agreement:
Andrew McIlwain
Managing Director
1 October 2019
Base salary of $275,000* per annum plus statutory superannuation and annual short-
term incentives that include up to 50% of Annual Salary structured with the quantum to
be assessed in accordance with KPI’s to be agreed by the Board and the Managing
Director and 10,000,000 share options that vest against achievement of certain KPI’s.
Long term incentives of 15 million Performance Rights in 3 tranches to vest against
service, performance and share price conditions over 3 years.
* Andrew McIlwain’s salary was voluntarily reduced to $200,000 for a period during
FY2019/20 due to prevailing challenges.
Notice Period
Notice period of 3 months.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year
ended 30 June 2020.
Options
The company issued 10,000,000 Options and 15,000,000 Performance Rights to Andrew McIlwain and 2,000,000 Options
to Kevin Wilson on 13 December 2019 which were approved by shareholders at the Annual General Meeting held on 20
November 2019.
There were no options over ordinary shares issued to directors and other key management personnel as part of
compensation that were outstanding as at 30 June 2020.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each Director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Ordinary shares
D. Ransom*
K. Wilson
A. McIlwain**
Balance at
the start of
the year
1,125,375
-
-
1,125,375
Received
as part of
remuneration Additions
Disposals/
other
Balance at
the end of
the year
-
-
-
-
-
-
1,100,000
1,100,000
-
-
-
-
1,125,375
-
1,100,000
2,225,375
*
**
Subsequent to year end D. Ransom resigned as Non-Executive Director effective 14 July 2020.
1.1 million shares were acquired through an on-market purchase.
17
Investigator Resources Limited
Directors' report
30 June 2020
Option holding
The number of options over ordinary shares in the company held during the financial year by each Director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Options over ordinary shares
D. Ransom
A. McIlwain*
K. Wilson*
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
3,075,375
-
-
3,075,375
-
10,000,000
2,000,000
12,000,000
-
-
-
-
(2,500,000)
-
-
575,375
10,000,000
2,000,000
(2,500,000) 12,575,375
*
Approved by shareholders at the Annual General Meeting held on 20 November 2019.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Investigator Resources Limited under option at the date of this report are as follows:
Grant date
7 December 2017*
28 February 2019*
5 September 2019*
14 October 2019*
20 November 2019**
13 August 2020***
Expiry date
31 December 2020
31 December 2020
31 December 2020
31 December 2020
20 November 2022
20 November 2022
Exercise
price
Number
under option
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
158,911,188
1,363,636
37,152,822
4,666,683
22,000,000
2,000,000
226,094,329
Listed options
Unlisted options
*
**
*** Unlisted options issued to Mr A. Shearer on 13 August 2020 as part of his sign-on package as Non-Executive Director.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
company or of any other body corporate.
Shares issued on the exercise of options
The following ordinary shares of Investigator Resources Limited were issued during the year ended 30 June 2020 and up to
the date of this report on the exercise of listed options granted:
Date options granted
7 December 2017
Exercise
price
Number of
shares
issued
$0.035
1,749,038
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director
or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
18
Investigator Resources Limited
Directors' report
30 June 2020
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company
or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to 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 part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in Note 29 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in Note 29 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.
●
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
Grant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Kevin Wilson
Chairman
3 September 2020
19
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Investigator Resources Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Investigator
Resources Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 03 September 2020
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
20
Investigator Resources Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2020
Revenue
Research and development incentive
Management fee from joint operations
Other income
Interest income
Expenses
Employee benefit expenses
Other expenses
Exploration and evaluation expenses written off
Loss before income tax expense
Income tax expense
Note
Consolidated
30 June
2020
$
30 June
2019
$
-
79,277
79,277
50,000
42,728
23,572
-
23,572
24,182
44,443
(390,967)
(634,820)
(13,160,787)
(433,545)
(729,189)
(1,797,782)
(14,014,569)
(2,868,319)
-
-
6
7
8
9
Loss after income tax expense for the year attributable to the owners of
Investigator Resources Limited
25
(14,014,569)
(2,868,319)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of
Investigator Resources Limited
Basic loss per share
Diluted earnings per loss
(14,014,569)
(2,868,319)
Cents
Cents
37
37
(1.70)
(1.70)
(0.39)
(0.39)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
21
Investigator Resources Limited
Statement of financial position
As at 30 June 2020
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Exploration and evaluation
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Joint operation contribution received in advance
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
30 June
2020
$
30 June
2019
$
10
11
12
13
14
15
16
17
18
19
20
21
22
2,500,090
8,770
1,577
42,726
2,553,163
1,204,981
18,451
-
37,007
1,260,439
668
113,137
17,198,899
24,202
17,336,906
2,722
-
29,700,636
24,202
29,727,560
19,890,069
30,987,999
147,667
89,219
200,749
238,810
676,445
22,758
22,758
117,669
-
176,537
-
294,206
-
-
699,203
294,206
19,190,866
30,693,793
23
24
25
55,348,547
403,642
(36,561,323)
53,070,322
243,519
(22,620,048)
19,190,866
30,693,793
The above statement of financial position should be read in conjunction with the accompanying notes
22
Investigator Resources Limited
Statement of changes in equity
For the year ended 30 June 2020
Consolidated
Balance at 1 July 2018
Issued
capital
$
Share Based
Payment
Reserves
$
Accumulated
losses
$
Total equity
$
53,070,322
243,519
(19,751,729) 33,562,112
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
-
-
(2,868,319)
-
(2,868,319)
-
(2,868,319)
(2,868,319)
Balance at 30 June 2019
53,070,322
243,519
(22,620,048) 30,693,793
Consolidated
Balance at 1 July 2019
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Shares issued
Share issue cost
Options issued to Fundraising Manager
Options issued to KMP and employees
Performance rights granted
Lapse of Options
Issued
capital
$
Reserves
$
Accumulated
losses
$
Total equity
$
53,070,322
243,519
(22,620,048) 30,693,793
-
-
-
-
-
(14,014,569)
-
(14,014,569)
-
-
(14,014,569)
(14,014,569)
2,536,662
(258,437)
-
-
-
-
-
-
59,375
100,277
73,765
(73,294)
-
-
-
-
-
73,294
2,536,662
(258,437)
59,375
100,277
73,765
-
Balance at 30 June 2020
55,348,547
403,642
(36,561,323) 19,190,866
The above statement of changes in equity should be read in conjunction with the accompanying notes
23
Investigator Resources Limited
Statement of cash flows
For the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Research and development tax incentive refund
Management fees received
COVID-19 incentives received
Note
Consolidated
30 June
2020
$
30 June
2019
$
(835,692)
53,248
-
79,277
50,000
(1,421,276)
48,643
657,958
-
-
Net cash used in operating activities
36
(653,167)
(714,675)
Cash flows from investing activities
Exploration expenditure
Joint Venture contribution received
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
(1,798,633)
1,409,309
-
(996,005)
-
25,909
(389,324)
(970,096)
23
2,536,662
(199,062)
2,337,600
-
-
-
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
1,295,109
1,204,981
(1,684,771)
2,889,752
Cash and cash equivalents at the end of the financial year
10
2,500,090
1,204,981
The above statement of cash flows should be read in conjunction with the accompanying notes
24
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 1. General information
The financial statements cover Investigator Resources Limited as a consolidated entity consisting of Investigator Resources
Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian
dollars, which is Investigator Resources Limited's functional and presentation currency.
Investigator Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business are:
Registered office
Principal place of business
18 King Street, Norwood SA 5067
18 King Street, Norwood SA 5067
A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 3 September 2020. The
Directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial
performance or position of the consolidated entity.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees
eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the
operating expense is now replaced by interest expense and depreciation in profit or loss. For classification within the
statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments
are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a
lessor accounts for leases.
Refer to Note 4 for the impact on the adoption of AASB 16.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board ('IASB').
25
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity'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 3.
Going Concern
These financial statements have been prepared on a going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business. This includes
the realisation of capitalised exploration expenditure of $17,198,899 (30 June 2019: $29,700,636).
The consolidated group has incurred a net loss after tax for the year ended 30 June 2020 of $14,014,569 (30 June 2019:
$2,868,319) and operations were funded by a net cash outflow, from operating and investing activities of $1,042,491 (30
June 2019: net cash outflow of $1,684,771). At 30 June 2020, the consolidated group had net current assets of $1,876,718
(June 2019: net current assets of $966,233).
The consolidated group’s ability to continue as a going concern is contingent on raising additional capital and/or the
successful exploration and subsequent exploitation of its areas of interest through sale or development. The Company
undertook a Placement and Share Purchase Plan during the period which successfully raised $2.5 million (excluding costs).
Subsequent to year end, the Company undertook a Placement of ordinary shares to professional and sophisticated investors
raising a further $8 million (excluding costs) under two tranches to focus on the development of the Paris Silver Project. The
Placement is taking place in two tranches of which $5.5 million was received under Tranche 1 and $2.5 million under Tranche
2 is subject to a Shareholder’s approval at a General Meeting to be held on 23 September 2020.
Based on the above management do not believe there is a material uncertainty in relation to going concern.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in Note 32.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Investigator Resources
Limited ('company' or 'parent entity') as at 30 June 2020 and the results of all subsidiaries for the year then ended. Investigator
Resources Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.
26
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Functional and presentation currency
The financial statements are presented in Australian dollars, which is Investigator Resources Limited's functional and
presentation currency.
Revenue recognition
The consolidated entity recognises revenue as follows:
Rendering of services
Revenue from a contract to provide management services is recognised over time as the services are rendered based on
either fixed price or an hourly rate.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Restoration Costs
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the exploration and mining permits.
Such costs are determined using estimates of future costs, current legal requirements and technology on a discounted basis
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of
abandoning the site.
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.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
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.
27
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 2. Significant accounting policies (continued)
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial
statements under the appropriate classifications.
Impairment of non-financial assets
Non-financial 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.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the 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 tax authority is included in other receivables or other 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 tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
28
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 3. 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.
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 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.
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.
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.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Employee benefits provision
As discussed in Note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases
through promotion and inflation have been taken into account.
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.
29
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement
is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying
asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included
in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise
an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors
considered may include the importance of the asset to the consolidated entity's operations; comparison of terms and
conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements;
and the costs and disruption to replace the asset. The consolidated entity reassesses whether it is reasonably certain to
exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in
circumstances.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount
future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is
based on what the consolidated entity estimates it would have to pay a third party to borrow the funds necessary to obtain
an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.
Note 4. Impact on application on AASB 16
The consolidated entity has adopted AASB 16 using the modified retrospective approach whereby the consolidated entity
has recognised the cumulative effect of initially applying this standard as an adjustment to the opening balance of equity as
at 1 July 2019. Accordingly, the consolidated entity has not restated comparative balances in this set of financial statements.
On adoption of AASB 16, the consolidated entity recognised lease liabilities in relation to leases which had previously been
classified as ‘operating leases’ under the principles of AASB 117 Leases. These liabilities were measured at the present
value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 July 2019. The
weighted average incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 7.5%. The associated right-
of-use assets for these leases were measured on a retrospective basis as if AASB 16 had always been applied, with the
incremental borrowing rate applied as at each lease’s commencement date and the assets depreciated on a straight-line
basis over the term of the lease. The provisions recognised in respect of onerous lease contracts were netted off against the
associated right-of-use assets at the date of transition. The impact of adoption on opening retained profits as at 1 January
2019 was as follows:
Operating lease commitments as at 1 July 2019 (AASB 117)
Operating lease excluded from capitalisation
Operating lease commitments discount based on the weighted average incremental borrowing rate of 7.5%
(AASB 16)
Right-of-use assets (AASB 16)
Lease liabilities - current (AASB 16) on 1 July 2019
Total lease liabilities on the date of transition on 1 July 2019
Impact on opening accumulated losses as at 1 July 2019
Consolidated
148,415
(1,295)
(15,068)
132,052
(132.052)
(132,052)
-
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any 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.
30
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 4. Impact on application on AASB 16 (continued)
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; the lease term; and 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.
Note 5. Operating segments
Identification of reportable operating segments
The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of
resources. The consolidated entity operates in a single operating segment: that of the mineral exploration industry in
Australia.
Note 6. Other income
Consolidated
30 June
2020
$
30 June
2019
$
-
50,000
24,182
-
50,000
24,182
Consolidated
30 June
2020
$
30 June
2019
$
737,223
(520,299)
174,043
943,412
(509,867)
-
390,967
433,545
Net gain on disposal of property, plant and equipment
COVID-19 incentive- government cashflow boost
Other income
Note 7. Employee benefit expenses
Benefits provided to employees
Charged to exploration and evaluation expenses
Share based employee expense
31
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 8. Other expenses
Audit fees
Other professional services paid to related entities of the auditor
Company secretarial fees
Depreciation
Directors fees
Insurance and legal
Minimum lease rental payment
Shareholders communications
Office expenses
Other expenses
Expenditure allocated to exploration and evaluation projects
Note 9. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 27.5%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Adjustment for non-deductible expenses
Deductible capital raising costs
Allowable exploration and evaluation expenditure
Prior period exploration and evaluation expenses written off
Net non-allowable expenses
Research and development incentive
Reduction of losses in prior periods
Application of AASB 16 Lease standard
Tax effect of deferred tax assets not brought to account as they do not meet the recognition
criteria
Income tax expense
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 27.5%
32
Consolidated
30 June
2020
$
30 June
2019
$
37,461
7,300
48,000
15,822
153,475
50,862
2,270
95,668
225,607
141,821
(143,466)
39,780
12,700
88,000
2,617
155,001
64,038
16,680
65,164
232,157
198,734
(145,682)
634,820
729,189
Consolidated
30 June
2020
$
30 June
2019
$
(14,014,569)
(2,868,319)
(3,854,006)
(788,788)
48,018
357
(3,805,988)
(46,699)
(181,239)
3,619,216
(5,840)
-
-
(1,002)
(788,431)
(36,429)
(249,547)
494,391
(61,669)
(6,482)
415,951
-
421,552
232,216
-
-
Consolidated
30 June
2020
$
30 June
2019
$
(52,520,939)
(50,978,023)
(14,443,258)
(14,018,956)
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 9. Income tax expense (continued)
The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.
Note 10. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
30 June
2020
$
30 June
2019
$
2,500,090
-
34,981
1,170,000
2,500,090
1,204,981
At balance date, the Company has a business credit card facility with a limit of $50,000. Credit card transactions are
reconciled monthly and credit card balances payable are included in trade and other payables.
The cash and cash equivalents as 30 June 2020 disclosed above and in the statement of cash flows include $238,810
(2019:nil) which was received as joint operation contribution from OZ Minerals and restricted to be used for the Maslins
project located on EL 5705 and are therefore not available for general use within the group.
Accounting policy for cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments 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.
Note 11. Current assets - trade and other receivables
Other receivables
Consolidated
30 June
2020
$
30 June
2019
$
8,770
18,451
Accounting policy for trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Note 12. Current assets - inventories
Diesel fuel
Accounting policy for inventories
Inventories is stated at the lower of cost and net realisable value.
Consolidated
30 June
2020
$
30 June
2019
$
1,577
-
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.
33
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 13. Current assets - other assets
Insurance prepayments
Note 14. Non-current assets - property, plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Consolidated
30 June
2020
$
30 June
2019
$
42,726
37,007
Consolidated
30 June
2020
$
30 June
2019
$
512,225
(511,557)
512,225
(509,503)
668
2,722
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2018
Disposals
Depreciation expense
Balance at 30 June 2019
Depreciation expense
Balance at 30 June 2020
$
7,066
(1,727)
(2,617)
2,722
(2,054)
668
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
1- 5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
34
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 15. Non-current assets - right-of-use assets
Office premises - right-of-use
Consolidated
30 June
2020
$
30 June
2019
$
113,137
-
Accounting policy for right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any 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.
Note 16. Non-current assets - exploration and evaluation
Exploration and evaluation Asset - at carrying value
17,198,899
29,700,636
Consolidated
30 June
2020
$
30 June
2019
$
Opening balance - at carrying value
Capitalised exploration expenditure
Impairment
$
$
29,700,636
659,050
(13,160,787)
30,590,976
907,442
(1,797,782)
17,198,899
29,700,636
A review of the consolidated entity's exploration licenses was undertaken as at 30 June 2020 and management's assessment
was that exploration costs incurred on all exploration tenements/assets with the exception of the Paris Silver Project
(Peterlumbo Tenement) will be impaired due to not being recoverable from development or sale. The related exploration and
evaluation assets have been written off which resulted in an impairment charge of $13,160,787.
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale, or exploration activities are continuing in
an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of
economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred
thereon is written off in the year in which the decision is made.
35
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 17. Non-current assets - other assets
Security deposits
Security deposits are held towards tenement applications and rental bond.
Note 18. Current liabilities - trade and other payables
Trade payables
Sundry payables
Consolidated
30 June
2020
$
30 June
2019
$
24,202
24,202
Consolidated
30 June
2020
$
30 June
2019
$
126,718
20,949
96,028
21,641
147,667
117,669
Refer to Note 27 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.
Note 19. Current liabilities - lease liabilities
Lease liability
Refer to note 27 for further information on financial instruments.
Note 20. Current liabilities - provisions
Annual leave
Long service leave
36
Consolidated
30 June
2020
$
30 June
2019
$
89,219
-
Consolidated
30 June
2020
$
30 June
2019
$
116,256
84,493
98,490
78,047
200,749
176,537
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 20. Current liabilities - provisions (continued)
Accounting policy for employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at 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,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at
the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Note 21. Current liabilities - Joint operation contribution received in advance
Joint operation contribution received in advance
Refer to Note 34 for the details on the interests in joint operations and Farm-in Arrangements.
Note 22. Non-current liabilities - lease liabilities
Lease liability
Refer to Note 27 for further information on financial instruments.
Consolidated
30 June
2020
$
30 June
2019
$
238,810
-
Consolidated
30 June
2020
$
30 June
2019
$
22,758
-
Accounting policy for 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.
37
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 23. Equity - issued capital
Consolidated
30 June
2020
Shares
30 June
2019
Shares
30 June
2020
$
30 June
2019
$
Ordinary shares - fully paid
845,657,612 739,972,032
55,348,547
53,070,322
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$
1 July 2018
739,972,032
53,070,322
Balance
Placement of shares
Share Purchase Plan (SPP) shares issued
Exercise of listed options
Exercise of listed options
Share issue costs
30 June 2019
5 September 2019
14 October 2019
20 November 2019
8 January 2020
739,972,032
91,666,666
14,000,025
5,000
13,889
-
Balance
30 June 2020
845,657,612
$0.024
$0.024
$0.035
$0.035
$0.000
53,070,322
2,200,000
336,000
175
487
(258,437)
55,348,547
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.
The capital risk management policy remains unchanged from the 2019 Annual Report.
Accounting policy for issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
38
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 24. Equity - reserves
Share options reserve
Consolidated
30 June
2020
$
30 June
2019
$
403,642
243,519
Share options reserve
The share options reserve records items recognised as expenses or issue costs on valuation of options. Refer to Note 38
for share-based payments made during the year ended 30 June 2020 and 30 June 2019.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2018
Balance at 30 June 2019
Expired and lapsed options adjusted to Retained Earnings
Share based payment expense
Share based payment equity
Balance at 30 June 2020
Refer to Note 38 for details of Performance Rights and Options granted during the year.
Note 25. Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Transfer from options reserve (lapsed options)
Accumulated losses at the end of the financial year
Note 26. Equity - dividends
$
243,519
243,519
(73,294)
174,042
59,375
403,642
Consolidated
30 June
2020
$
30 June
2019
$
(22,620,048)
(14,014,569)
73,294
(19,751,729)
(2,868,319)
-
(36,561,323)
(22,620,048)
There were no dividends paid, recommended or declared during the current or previous financial year.
39
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 27. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity uses different methods to measure different
types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and ageing analysis
for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.
The consolidated entity’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivable, accounts payable and loans to related parties.
Market risk
Foreign currency risk
The consolidated entity is not exposed to foreign currency risk through foreign exchange rate fluctuations.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity's main interest rate risk arises interest income it can potentially earn on surplus cash deposits. The
Company has no interest-bearing borrowings from long-term borrowings and hence not exposed to any interest rate risk
from related variable rates.
The consolidated entity has cash and cash equivalents totalling $2,500,090 (2019: $1,204,981). An official increase/decrease
in interest rates of 0.5% (2019: 0.5%) basis points would have an adverse/favourable effect on profit before tax of $ 12,500
(2019: $6,024) per annum.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance
sheet and notes to the financial statements
The credit risk for cash and cash equivalents is considered negligible as the consolidated entity invests its surplus funds with
reputable Australian banks with high quality external credit ratings. The consolidated entity does not have any other material
credit risk exposure to any single material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the consolidated entity.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and forecast cash flows and matching
the maturity profiles of financial assets and liabilities.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
40
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 28. Key management personnel disclosures
Directors
The following persons were Directors of Investigator Resources Limited during the financial year:
K. Wilson - Chairman
D. Ransom - Non-Executive Director
A. McIlwain - Managing Director
Compensation
The aggregate compensation made to Directors and key management personnel of the consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Note 29. Remuneration of auditors
Consolidated
30 June
2020
$
30 June
2019
$
361,694
30,323
-
104,043
654,440
51,751
75,797
-
496,060
781,988
During the financial year the following fees were paid or payable for services provided by, the auditor of the company:
Audit services -
Audit or review of the financial statements
Other services -
Tax compliance and advisory services
Consolidated
30 June
2020
$
30 June
2019
$
37,461
39,780
7,300
12,700
44,761
52,480
41
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 30. Commitments
The consolidated entity has certain obligations to perform exploration work and expend minimum amounts of money on such
works on mineral exploration tenements.
These obligations will vary from time to time, subject to statutory approval. The terms of current and future joint ventures, the
grant or relinquishment of licences and changes to licence areas at renewal or expiry, will alter the expenditure commitments
of the consolidated entity. To keep tenements in good standing, work programs should meet certain minimum expenditure
requirements. If the minimum expenditure requirements are not met, the Company has the option to negotiate new terms or
relinquish the tenements. The Company also has the ability to meet expenditure requirements by joint venture or farm-in
agreements.
Total expenditure commitments at balance date in respect of minimum expenditure requirements not provided for in the
financial statements are approximately:
Exploration Expenditure Commitments
Committed at the reporting date but not recognised as liabilities, payable
Not later than one year
Later than one year but not later than two years
Total commitment
Office and Storage Shed Rentals
Committed at the reporting date but not recognised as liabilities, payable:
Not later than one year
Later than one year but not later than two years
Later than two years but not later than five years
Consolidated
30 June
2020
$
30 June
2019
$
1,409,315
1,430,685
1,974,268
291,332
2,840,000
2,265,600
2,840,000
2,265,600
-
-
-
-
75,540
69,410
3,465
148,415
With the adoption of AASB 16-Leases from 1 July 2019, these operating leases have been recognised as lease liabilities in
the statement of financial position as at 30 June 2020. The parent entity had no other expenditure commitments as at 30
June 2020.
42
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 31. Related party transactions
Parent entity
Investigator Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 33.
Joint operations
Interests in joint operations are set out in Note 34.
Key management personnel
Disclosures relating to key management personnel are set out in Note 28 and the remuneration report included in the
Directors' report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for other expenses:
Consulting fees paid to Andrew McIlwain & Associates Pty Ltd*
Consolidated
30 June
2020
$
30 June
2019
$
42,500
30,000
*
Mr A. McIlwain is a director of Andrew McIlwain & Associates Pty Ltd (AM&A). From 1 July 2018, AM&A and Mr McIlwain
had been engaged to provide corporate advisory services to the company. The services provided were based on normal
commercial terms and conditions. The consultancy arrangement ceased upon Andrew McIlwain’s appointment as
Managing Director of the Company.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
43
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 32. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share options reserve
Accumulated losses
Total equity
Parent
30 June
2020
$
30 June
2019
$
(14,014,569)
(2,868,319)
(14,014,569)
(2,868,319)
Parent
30 June
2020
$
30 June
2019
$
2,553,163
1,260,439
19,890,069
30,987,999
676,445
294,206
699,203
294,206
55,348,547
403,642
(36,561,323)
53,070,322
243,519
(22,620,048)
19,190,866
30,693,793
Commitments for the parent entity are the same as those for the consolidated entity.
The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at year end.
Note 33. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 2:
Name
Sunthe Uranium Pty Ltd
Gilles Resources Pty Ltd
Silver Eyre Pty Ltd
Kimba Minerals Pty Ltd
Goyder Resources Pty Ltd
Gawler Resources Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
30 June 2020 30 June 2019
%
%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Australia
Australia
Australia
Australia
Australia
Australia
44
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 34. Interests in joint operations and Farm-in Arrangements
On 14 July 2019, Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Limited entered into a
earn-in and joint operation agreement with OZ Exploration Pty Ltd, a wholly owned subsidiary of OZ Minerals Limited for
exploration on the Maslins project located on EL 5705. Under this agreement, OZ Minerals could elect to fund up to $10
million on a three-stage exploration program to explore and earn-in to the Maslins Project and may earn up to a 70%
interest. As at 30 June 2020, OZ Minerals had contributed $1.48 million (excluding GST) of which $1.17 million had been
deployed as exploration expenditure and $79k earned by the Company as project management fees. On 30 March 2020 the
Company announced to the ASX that the second drill hole was terminated at 1,303m with no significant mineralisation
identified in the core. As at 30 June 2020, the Company had a balance of $238,810 joint operation contribution received in
advance as cash which will be used towards rehabilitation costs. Under the terms of the Earn-In Agreement subsequent to
the year end, OZ Minerals formally notified the Company that they would not commit to Stage 2 of the Agreement (ASX: 21
July 2020).
At the date of this report, the Company has no other interest in joint operations or farm-in arrangements.
Note 35. Events after the reporting period
14 July 2020, Dr David Ransom resigned as Non-executive Director and Mr Andrew Shearer was appointed as the Non-
Executive Director.
On 13 August 2020 Mr Shearer was issued 2,000,000 unlisted options as part of his sign-on package, exercisable at $0.035
with an expiry of 20 November 2022.
As announced by the company on 21 July 2020, under the terms of the Earn-In Agreement, OZ Minerals formally notified
the Company that they would not commit to Stage 2 of the Agreement.
On 30 July 2020, the Company announced it had undertaken a Placement of ordinary shares to professional and
sophisticated investors raising $8 million (excluding costs) in two tranches to be used towards the development of the Paris
Silver Project and general working capital. The Placement was in two tranches of which the Company received $5.5 million
under Tranche 1 on 6 August 2020. A further $2.5 million under Tranche 2 is subject to a shareholder’s approval at a General
Meeting to be held on 23 September 2020.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Note 36. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Profit on disposal of plant and equipment
Employee options expense
Exploration expenditure written off
AASB 16 adjustment
Change in operating assets and liabilities:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in inventory
(Increase)/Decrease in other assets
(Decrease)/Increase in Provisions - current
(Decrease)/Increase in Provisions – non-current
(Decrease)/Increase in creditors and accruals
Net cash used in operating activities
45
Consolidated
30 June
2020
$
(14,014,569)
30 June
2019
$
(2,868,319)
2,051
-
174,043
13,160,787
3,413
2,617
(24,182)
-
1,797,782
-
10,521
-
(6,557)
24,212
-
(7,068)
626,903
12,679
6,477
(155,944)
(69,104)
(43,584)
(653,167)
(714,675)
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 37. Earnings per share
Consolidated
30 June
2020
$
30 June
2019
$
Loss after income tax attributable to the owners of Investigator Resources Limited
(14,014,569)
(2,868,319)
Weighted average number of ordinary shares used in calculating basic earnings per share
824,756,102 739,972,032
Weighted average number of ordinary shares used in calculating diluted earnings per share 824,756,102 739,972,032
Number
Number
Basic loss per share
Diluted loss per share
Accounting policy for earnings per share
Cents
Cents
(1.70)
(1.70)
(0.39)
(0.39)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Investigator Resources Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts 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.
Note 38. Share-based payments
Share based payments expense during the period is $174,042 (2019: nil) of which relates to Performance Rights and options
issued to Directors, KMP and other employees of the company.
Performance Rights
In November 2019, following shareholder approval at the Annual General Meeting, the consolidated entity issued 15,000,000
performance rights to Mr Andrew McIlwain with various vesting conditions relating to share price, service period and
performance hurdles, as below:
Grant date
Expiry date
20/11/2019
20/11/2019
20/11/2019
21/01/2021
21/01/2022
21/01/2023
Exercise
price
Granted Exercised
-
-
-
5,000,000
5,000,000
5,000,000
-
-
-
Expired/
forfeited/
other
-
-
-
Balance as at
30 June 2020
5,000,000
5,000,000
5,000,000
The fair value of the performance rights was determined at $228,331 using the Black Scholes option pricing model using the
following inputs:
Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk-free rate %
Fair value of options $
0.017
Nil
100
0.75
228,331
46
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 38. Share-based payments (continued)
Listed Options
Details
Balance
Listed Options issued during the year unexercised
Date
1 July 2018
28 February 2019
Balance
Listed Options issued under Placement(ii)
Listed Options issued to Lead Manager in relation to the Placement(i)
Listed option issued under SPP(iii)
Exercise of options
Exercise of options
30 June 2019
05 September 2019
05 September 2019
14 October 2019
20 November 2019
08 January 2020
Options
160,660,226
1,363,636
162,023,862
30,555,600
6,597,222
4,666,683
(5,000)
(13,889)
Balance
30 June 2020
203,824,478
During the 2020 financial year following options were granted:
(i)
6,597,222 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020) issued to PAC Partners
Pty Ltd or its nominees in consideration for lead manager services provided to the Company (Lead Manager
Options). The fair value of the Lead Manager Options issued was $59,375 being the market price of the options on
the date of the grant.
30,555,600 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020) were issued as free
attaching options in conjunction with the capital raising activities as announced on 2 September 2019.
4,666,683 listed options were issued on 14 October 2019 under the terms of Share Purchase Plan announced on 13
September 2019.
(ii)
(iii)
In 2019, 1,363,636 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020) were issued with the
same terms and conditions as announced on 19 October 2017.
The options are listed on the ASX with an exercise price of $0.035 per share and expiring on 31 December 2020. During the
reporting period 18,889 listed options were exercised.
Unlisted Options
Details
Balance
Balance
Options issued to KMP
Options issued to KMP
Options issued to employees
Options expired
Options expired
Date
Options
Fair value
per option
1 July 2018
5,915,000
30 June 2019
20 November 2019
20 November 2019
20 November 2019
22 November 2019
23 January 2020
5,915,000
10,000,000
2,000,000
10,000,000
(3,415,000)
(2,500,000)
$0.08
$0.07
$0.07
$0.02
$0.00
Balance
30 June 2020
22,000,000
$
73,294
73,294
80,000
14,000
70,000
(62,381)
(10,913)
164,000
In November 2019, 22,000,000 unlisted fully vested options (exercisable at $0.035, expiring on 20 November 2022) were
issued to Directors, KMP and other employees of the company. Options issued to KMP were approved by shareholders at
the 2019 Annual General Meeting.
47
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 38. Share-based payments (continued)
The fair value of the options was determined as of $164,000 using the Black Scholes option pricing model using the following
inputs:
Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk-free rate %
Days to expiry
Fair value of options $
0.017
0.035
100
0.71
1,096
164,000
During the reporting period no KMP options were exercised. Subsequent to year ended 30 June 2020, no unlisted options
have been exercised.
Details of unlisted share options on issue to KMP and other employees and weighted average exercise prices were as
follows:
Outstanding at 30 June 2018
Outstanding at 30 June 2019
Granted / Issued
Lapsed
Outstanding at 30 June 2020
KMP
No. of
Options
KMP
Weighted
average
exercise
price
$
Employees Employees
Weighted
average
exercise
price
$
No. of
Options
5,915,000
5,915,000
12,000,000
(5,915,000)
12,000,000
0.041
0.041
0.008
0.041
0.008
-
-
10,000,000
-
10,000,000
-
-
0.008
-
0.008
Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
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 option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
48
Investigator Resources Limited
Notes to the financial statements
30 June 2020
Note 38. Share-based payments (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
49
Investigator Resources Limited
Directors' declaration
30 June 2020
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2020 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Kevin Wilson
Chairman
3 September 2020
50
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Investigator Resources Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Investigator Resources Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit
or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
51
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets - Notes 16
At 30 June 2020 the carrying value of exploration and
evaluation assets was $17,198,899.
In accordance with AASB 6 Exploration for and Evaluation
of Mineral Resources, the Group is required to assess at
each reporting date if there are any triggers for impairment
which may suggest the carrying value is in excess of the
recoverable value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Our procedures included, amongst others:
obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;
reviewing management’s area of interest considerations
against AASB 6;
conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;
assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and
assessing the appropriateness of the related financial
statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2020, 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 we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
52
In preparing the financial report, the Directors are responsible for assessing the Company’s/Group’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 Company/Group 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 the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 13 to 18 of the Directors’ report for the year ended 30 June
2020.
In our opinion, the Remuneration Report of Investigator Resources Limited, for the year ended 30 June 2020 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.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 3 September 2020
53
Investigator Resources Limited
Shareholder information
30 June 2020
The shareholder information set out below was applicable as at 25 August 2020.
DISTRIBUTION OF EQUITABLE SECURITIES
Analysis of number of equitable security holders by size of holding for holders of ordinary shares:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Holdings less than Marketable parcel
Total holders
223
354
403
2,036
1,215
4,231
804
Units
20,943
1,191,713
3,427,398
89,072,085
937,008,955
1,030,721,094
Analysis of number of equitable security holders by size of holding for holders of listed options:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Holdings less than Marketable parcel
Total holders
9
0
3
121
172
305
30
Units
148
0
28,889
6,662,334
195,402,958
202,094,329
EQUITY SECURITY HOLDERS
The names of the twenty largest security holders of listed equity securities are listed below:
Twenty Largest Shareholders
% Units
0.00
0.12
0.33
8.64
90.91
100.00
% Units
0.00
0.00
0.01
3.30
96.69
100.00
1
2
3
4
5
6
7
8
Name
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
UBS NOMINEES PTY LTD
GREGMAL NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES
MR BRIAN JOHN ANDERSON
ROBERTSON ARCHITECTURAL SERVICES PTY LTD
MR SHANE PETER MATTERSON + MRS SHARYN ALISON MATTERSON
MR DIMITRI EMIL LAJOVIC
CS FOURTH NOMINEES PTY LIMITED
EST MR MALCOLM THOM
COMSEC NOMINEES PTY LIMITED
9
10
11
12
13 MR PETER NEIL HENDERSON
14 WILLOW GLENN PTY LIMITED
14
16
17 MR LEE SUBOTIC + MRS SABRINA SUBOTIC
18 MR NEVILLE GEORGE COLLETT
19 MR NICHOLAS PLAYFORD FORGAN
20 MR BENJAMIN JOEL WEEKES
BNP PARIBAS NOMINEES PTY LTD
BERKELEY DOWNS INVESTMENTS PTY LTD
No. of shares % Units
10.43
1.85
1.59
1.23
1.00
0.97
107,525,533
19,063,834
16,403,523
12,710,633
10,280,497
10,000,000
10,000,000
0.97
9,284,848
8,893,625
8,488,800
6,575,375
6,528,522
6,500,000
6,330,694
6,229,004
6,000,000
5,649,246
5,518,780
5,444,422
5,400,772
0.90
0.86
0.82
0.64
0.63
0.63
0.61
0.60
0.58
0.55
0.54
0.53
0.52
Total Top 20 Shareholders
272,828,108
26.45
54
Investigator Resources Limited
Shareholder information
30 June 2020
Twenty Largest Option Holders
1
2
3
4
5
6
6
8
9
10
11
Name
MRS LESLEY LORD
CITICORP NOMINEES PTY LIMITED
MR ADAM ANTHONY MIOCEVICH
MRS SANDY TAN SIEW MAY
MR PETER DANIEL WILLSON
MR PETER DANIEL WILLSON + MRS NARELLE KAREN WILLSON
VALLEYTECH INSTRUMENTATION PTY LTD
MR DEAN MATHEWS
BINKARRA PTY LTD
MR KENNETH PAUL TERRY
MR MARK QUIRK + MS JENNIFER ANN TAYLOR
BNP PARIBAS NOMS PTY LTD
MR MICHAEL ROBERT BELLAMY
MR IAN HEMBROW
MRS HUE BOI NGHIA
TAIPAN INVESTMENT MANAGEMENT PTY LIMITED
12
12
14
15
16
16 WILLOW GLENN PTY LIMITED
16
19
DRILLER HOLDINGS PTY LTD
TAYLOR FAMILY INVESTMENTS PTY LTD
DR KERRY MICHAEL BOWEN + MRS JENNIFER NANCY BOWEN
20
Units % Units
8.15
8.11
4.82
4.01
3.46
16,475,000
16,379,946
9,735,909
8,100,000
7,000,000
6,034,145
5,500,000
4,763,875
4,511,667
4,434,826
4,121,056
3,700,000
3,319,504
3,304,446
3,280,441
3,255,991
2,575,375
2,531,709
2,500,000
2,000,000
2.99
2.72
2.36
2.23
2.19
2.04
1.83
1.64
1.64
1.62
1.61
1.27
1.25
1.24
0.99
Total Top 20 Listed Option Holders
113,523,890
56.17
Substantial Shareholders
Details of substantial shareholders are set out below:
Name
MERIAN GLOBAL INVESTORS (UK) LIMITED
1
No. of shares % Units
9.35%
96,452,476
Listed options
Class
IVROA
Expiry Date
31 December 2020
No. Holders
305
VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:
At meeting of members or classes of members:
(a) each member entitled to vote may vote in person or by proxy, attorney or respective;
(b) on a show of hands, every person present who is a member or a proxy, attorney or representative of a member has one
vote; and
(c) on a poll, every person present who is a member or a proxy, attorney or representative of a member has:
(i) for each fully paid share held by person, or in respect of which he/she is appointed a proxy, attorney or representative,
one vote for the share;
55
Investigator Resources Limited
Shareholder information
30 June 2020
(ii) for each partly paid share, only the fraction of one vote which the amount paid (not credited) on the share bears to the
total amounts paid and payable on the share (excluding amounts credited).
Subject to any rights or restrictions attached to any shares or class of shares
ANNUAL GENERAL MEETING AND DIRECTOR NOMINATIONS CLOSING DATE
Investigator Resources Limited advises that its Annual General Meeting will be held on Friday, 20 November 2020. The
details relating to the meeting will be advised in the Notice of Meeting to be sent to all Shareholders and released to ASX
immediately upon despatch.
The Closing date for receipt of nomination for the position of Director is Friday, 9 October 2020. Any nominations must be
received in writing no later than 5.00pm (Melbourne time) on Friday, 9 October 2020 at the Company’s Registered Office.
The Company notes that the deadline for nominations for the position of Director is separate to voting on Director elections.
Details of the Director’s to be elected will be provided in the Company’s Notice of Annual General Meeting in due course.
56