Investigator Resources Limited
ABN 90 115 338 979
Annual Report - 30 June 2022
Investigator Resources Limited
Contents
30 June 2022
Corporate directory
Chair and Managing Director's Letter
Review of operations
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
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Investigator Resources Limited
Corporate directory
30 June 2022
Directors
Richard Hillis - Non-Executive Chair (appointed effective 1 January 2022)
Andrew McIlwain - Managing Director
Andrew Shearer - Non-Executive Director
Kevin Wilson - Non-Executive Chair (resigned effective 1 January 2022)
Joint Company Secretaries
Ms Melanie Leydin (resigned effective 31 October 2021)
Ms Anita Addorisio
Registered office
47 King Street, Norwood SA 5067
Principal place of business
47 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 are listed on the Australian Securities
Exchange (ASX code: IVR)
Website
www.investres.com.au
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Investigator Resources Limited
Chair and Managing Director's Letter
30 June 2022
Dear Shareholder,
We have continued to advance the exciting Paris Silver Project during the year, perhaps most notably with the release of
its Pre-Feasibility Study (PFS). We have also commenced a major program of exploration of prospects proximal to Paris,
and across the Uno Morgans tenement package, some 80km to the east, with very gratifying results. These exciting
prospects had seen little activity due to our focus on Paris in recent years, despite having the very important potential to
add mine life to the Paris Silver Project.
The 100%-owned Paris Silver Project, located in South Australia’s Eyre Peninsula, was a greenfields discovery made by
Investigator. An updated JORC (2012) compliant mineral resource estimate of 53.1Moz of silver and 98kt of lead was
announced in June 2021, after a significant infill drilling program. The improved level of confidence in the resource
underpinned the PFS (released in November 2022), which indicated modest capital expenditure for robust project returns,
with revenues assumed only from the recovery of the silver component of the resource (ignoring the lead component).
Sensitivity analysis undertaken on the forecast financial performance of the Paris Silver Project emphasised the exposure
to commodity prices, and we see this reflected in Investigator’s share price which is very closely correlated to the silver
price.
During the year we also commenced the tasks required to complete the Paris Silver Project Definitive Feasibility Study
(DFS). These include geotechnical drilling; further resource drilling to lift a component of the resource into measured
status; metallurgical test work to further enhance silver recovery (and inform a viable processing route to recover Paris’
substantial lead content); confirmation of an adequate water source for processing; refinement of capital and operating
costs; and advancing negotiations with the Traditional Owners of the land around Paris. As we progress toward a
development decision on Paris, we need to establish a production-related Native Title Mining Agreement (NTMA).
Investigator have an established, strong relationship with Gawler Ranges Aboriginal Corporation (GRAC) underpinned by
an existing NTMA that enables the Company to undertake exploration and related activities. We anticipate that, subject
to funding, the DFS will be finalised in the second half of 2023.
Investigator’s resources have, for a number of years, focussed on advancing Paris. Consequently, our prospects proximal
to Paris, and in the Uno Morgans tenement package, had seen little activity. A key priority during the year was to define
and test prospects proximal to Paris with the aim of providing additional resources with the potential to support an
extended mine life.
Previous results from the Ares, Paris East and Helen East prospects provided sufficient encouragement to embark on a
follow-up round of drilling that was completed in early 2022. Gratifyingly, this drilling program delivered the highest grade
silver intersection outside the Paris footprint with 8m @ 1,262g/t silver at the Apollo prospect just 4 km northwest of Paris.
Further drilling is planned for late 2022.
Further afield, following last year’s intensive soil sampling program and heritage clearance work, we completed the first
round of drilling across the Uno Range and Morgans tenements (approximately 80km east of Paris) in nearly a decade.
The team delivered a program where an impressive 24 of 28 holes drilled intersected mineralisation. Silver intersections
included 12m @ 240g/t (including 6m @ 383g/t) at Twelve Mile. There were also extensive zinc intersections such as
123m @ 0.48% (including 24m @ 1.52%) at Uno North. We are again planning to undertake follow-up drilling based on
these exciting results before the end of 2022. These prospects provide further opportunities to add resources in support
of an operation at Paris.
The South Australian Department for Energy and Mining ranked Investigator as having the 4th largest FY2020/21
exploration expenditure within the State, a significant achievement and evidence of our mantra to maximise the use of
shareholder’s funds on in-ground expenditure. Having drilled 26,893m in 273 holes, Investigator was ranked higher than
a number of our major peers and only behind BHP, FMG and an emerging producer.
Exploration activities in FY2021/22 maintained this in-ground exploration philosophy with 19,644m drilled in 149 holes.
The reinvigoration and reactivation of exploration within a number of tenements that have had little exploration in recent
years saw over 90% of this activity outside the Paris project. This work has shown early success, with a number of
significant silver intercepts such as those described above and reported on in detail during the year.
DGO Gold (whose takeover by Gold Road Resources was completed in July 2022) completed their Stage 1 earn-in
obligations over Investigator’s Stuart Shelf tenements during the year and have continued to pursue their sedimentary-
hosted copper and Iron Oxide Copper Gold (IOGC) exploration models. A drilling program planned for H2 2022 will see
them approach their Stage 2 expenditure commitment of $2M and earn the right to form a 51:49 Joint Venture agreement.
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Investigator Resources Limited
Chair and Managing Director's Letter
30 June 2022
In October 2021, Investigator announced that it had entered into an earn-in/joint venture agreement with Osmond
Resources (ASX:OSM, Osmond), whereby Osmond committed to spend $2.75M, over 6 years, to earn up to an 80%
interest in our Fowler Domain tenements, which are prospective for copper and nickel sulphides. Given our focus on Paris,
and prospects that can add resources in support of an operation at Paris, the Board considered it prudent to farm-out
these early stage tenements, in return for 1.1 million Osmond shares and a free carry on ongoing exploration costs during
the earn-in period, retaining a minimum 20% residual interest.
We are now less restricted by the challenges of COVID and have enjoyed the opportunity to keep markets and
shareholders informed of our progress, in particular by presenting at a number of investor and industry forums. As one of
the only pure silver plays in the Australian market, it is essential that we maintain open and timely communication. In
addition, we provide a regular newsletter emailed 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 refreshed Investigator website.
The year saw the resignation of Kevin Wilson, who served as a director of your company from September 2017, latterly
as Chair, and the appointment of Richard Hillis as Chair on 1 January. We look forward to a return to a face-to face AGM
this year and meeting shareholders at that event in Adelaide on Wednesday 30th November.
As reported in the June 2022 Quarterly, Investigator held $6.2M cash on hand at the end of FY2021/22. The Board
recognises the challenging current prevailing market conditions and monitor operating expenditures on a regular basis.
In closing, it is pleasing to be able to report that throughout what has been a particularly active year our team of geologists,
field crew and contractors, who work to deliver shareholder value, have done so whilst maintaining a focus on risk
assessments, on-the-job safety and minimising environmental impact. We take this opportunity to recognise their efforts
and congratulate them on delivery of another year of successful exploration.
We thank you sincerely for your continued interest and support of Investigator and look forward to enjoying future success
with you.
Richard Hillis
Chair
Andrew McIlwain
Managing Director & CEO
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Investigator Resources Limited
Review of operations
30 June 2022
Paris Silver Project
The Company’s 100% owned Paris Silver Project is located approximately 70km north of the rural township of Kimba
on South Australia’s Eyre Peninsula. Access to the project site is predominantly via highways and sealed roads and
is approximately 7 hours by road from Adelaide, as can be seen below
Locality map showing Paris Silver Project – approximately 535km by road, NW of Adelaide.
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Investigator Resources Limited
Review of operations
30 June 2022
One of the highest grade undeveloped primary silver projects in Australia, the Paris Silver Project hosts a JORC
2012 Mineral Resource Estimate of 18.8Mt @ 88g/t silver and 0.52% lead for 53.1Mozs silver and 97.6kt lead at a
cut-off of 30g/t silver1. The Paris resource is a shallow, high-grade silver deposit amenable to simple open pit mining.
Category
Indicated
Inferred
Total
Mt
12.7
6.1
18.8
Ag ppm
95
72
88
Pb %
0.60
0.35
0.52
Ag Mozs
38.8
14.2
53.1
Pb Kt
76.1
21.4
97.6
Paris Silver Project Mineral Resource Estimates
Note:
Based on 30g/t silver cut-off grade.
Values may not sum due to rounding.
Density: Indicated - 2.25t/m3, Inferred - 2.39t/m3 and Average - 2.30t/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 June 2021.
Following the finalisation of the Mineral Resource Estimate in June of 2021, the Company undertook remaining tasks
to complete the Paris Silver Project’s Pre-Feasibility Study (PFS) that was announced to the market in November
2021. The improved level of confidence in key operating parameters and cost assumptions supported the
comprehensive economic analysis and defined a project with robust economic metrics.
Paris Silver Project Pre-Feasibility Study
The Pre-Feasibility Study highlighted the low-risk nature of the high-grade, near surface, open pit project with the
Base Case Scenario (Whole of Ore Leach) assuming a simple processing circuit with robust silver recoveries.
The Project described in the PFS is forecast to deliver strong Pre-Tax Economics including:
Pre-Tax NPV8 of A$202M to A$245M
IRR of 47.9% to 54.1%
Payback period of ~2.3 to 2.8 years2
Pre-Tax Life of Mine Net Operating Cash Flow of A$487M to A$602M (A$86M to A$97Mpa)
Project life of 5 to 7 years
The PFS mine optimisations were run on two silver price scenarios:
at A$34.30/oz with a Production Target mining 8.6Mt of ore (~83% Indicated and 17% Inferred Resource) at an
average grade of 128 g/t Ag, producing 26.7Moz; and
at A$38.00/oz with a Production Target mining 10.9Mt of ore at an average grade of 109 g/t Ag, producing
29Moz.
1 - As announced to the ASX on 28 June 2021
2 - Economic analysis is based on two silver price scenarios of $34.30/oz (representing the average price over the previous 12-months), and A$38/oz (approximately 10%
higher).
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Investigator Resources Limited
Review of operations
30 June 2022
Other pertinent project parameters and deliverables are detailed in the following table:
Item
Silver Price
Exchange Rate
Life of Mine (LOM)
Mined Ore
Strip Ratio
Processed tonnes
Processed Silver Grade
Silver Recovery
Silver Dore produced
Gross Revenue
Royalties
Doré Transport & refining
Net Revenue
On Site Operating Costs3
Net Operating Cash Flow
Upfront Capital Cost4
- Mining Pre-production
- Process plant
- Infrastructure
- Indirect costs
- Contingency
Sustaining Capital Costs
Net Project Cash Flow (Pre-Tax)
Pre-Tax NPV8
Pre-Tax IRR
Pre-Tax Payback period
Post-Tax NPV8
Post-Tax IRR
Unit
A$/oz
US$/oz
A$:US$
Years
Kt
Waste:Ore
Kt
g/t
%
Moz
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
A$M
%
Years
A$M
%
Whole Ore Option
Base Case
Economic Assumptions
34.30
24.70
0.72
Physicals
5
8,575
9.2
8,575
128
75.7
26.7
Cash Flow
969
19
7
943
456
487
131.1
5.2
43.2
46.8
20.4
15.5
21.2
335
Value Metrics
202
54.1
2.3
135
40.1
38.00
27.35
0.72
7
10,909
6.5
10,909
109
75.2
29
1,183
28
8
1,147
545
602
29.2
442
245
47.9
2.8
158
36
3 - C1 operating cost, excluding SA royalty.
4 - Upfront Capital Costs, exclusive of sustaining capital and closure costs.
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Investigator Resources Limited
Review of operations
30 June 2022
The scenario described in the PFS assumes that revenue is only derived from the recovery and sale of silver. Whilst
the associated lead contained in the mined resource has assumed to have passed through the process plant, no
lead concentrate was assumed to be recovered. There remains a substantial opportunity to capture value from lead
recovery and concentrate sale, and this is a key element of the work being undertaken in the Definitive Feasibility
Study (DFS).
Images showing conceptual Paris open pit, process plant and infrastructure
Next steps to complete the Paris Silver Project Definitive Feasibility Study
The detailed PFS allowed Investigator to commence work towards the completion of the DFS. The DFS will further
assess internal project options, reduce risk and ultimately better define the Project. The results of the DFS will enable
the Board to consider a development investment decision.
The tasks involved in progressing the DFS include:
further resource drilling and infill drilling;
additional geotechnical and hydrogeological investigations;
detailed pit design and scheduling options;
further detailed metallurgical test work, alternative process options for viable lead recovery;
confirmation of process water source and site water management;
Native Title negotiations and land access agreements; and
environmental baseline and management studies.
Engagement with local and broader communities, as well as with the associated regulatory bodies also forms a vital
element of the DFS. Investigator recognises that best practice environmental management and strong support from
the community are critical for the project. Particular attention will be given to water, waste and emissions
management, and to employment opportunities for local people.
At the time of writing, diamond drilling at Paris has been completed to enable finalisation of geotechnical
investigations, metallurgical samples have been collected and submitted commencing further metallurgical testwork
and discussions continue with the Gawler Ranges Aboriginal Corporation, the Traditional Owners of the land on
which Paris sits. It is anticipated that subject to funding the DFS will be completed and presented in the second half
of 2023.
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Investigator Resources Limited
Review of operations
30 June 2022
Regional Exploration on Peterlumbo tenement
Previous exploration and recent reviews encompassing a mineral systems approach has identified a number of
exploration of prospects proximal to Paris. These prospects have a real potential to add mine life to the Paris Silver
Project and in early 2022 a comprehensive Reverse Circulation (RC) drill program of 7,634m in 54 holes was
completed across 5 targets as shown below.
Plan showing location of the regional 2022 drilling proximal to the Paris Silver Deposit.
Significantly, the highest silver intersection from outside the Paris Resource was reported at the Apollo Prospect5
where drilling along the primary interpreted structure intersected high-grade vein hosted intermediate sulphidation
mineralisation in hole PPRC826, with a reported intersection of 8m @ 1,262g/t silver from 149m, including 3m @
3,167g/t silver from 150m (which included 1m @ 6,530g/t silver from 152m).
With a diamond drill rig undertaking geotechnical investigation work at Paris, the opportunity was taken to twin Hole
PPRC826 providing core enabling a better understanding of the geology and mineralising structural controls, with
the objective of assisting in future drill targeting. At the time of writing assays from this hole are pending, however
valuable structural data has been incorporated into models and interpretations within this prospect area.
Importantly, petrographic analysis of samples taken from RC chips confirmed that the silver mineralogy at Apollo is
identical to that seen at Paris and with this drilling returning the highest grade intersection outside of Paris resource,
further drilling at Apollo is planned to be undertaken late 2022.
During the year, Investigator was successful in being granted the Yardea tenement (EL6725 – 278km2), abutting and
is immediately to the northwest of the Peterlumbo tenement (EL6347).
5 - As announced to the ASX 25 August 2022 – “Paris Regional Exploration Drilling Results”
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Investigator Resources Limited
Review of operations
30 June 2022
Other Tenements – South Australia
East Eyre
The Uno Range and Morgans tenements, located approximately 80km to the east of, and in a similar geological
setting to Paris, saw renewed focus after a pause in activity for a number of years, with field exploration work including
mapping and a comprehensive program of soil sampling completed in the prior year.
With heritage clearances approved, a drill program targeting prospects generated from surface geochemical
anomalies identified through soil sampling, regional geological and structural modelling and geophysical
interpretation.
In early 2022, the first round of drilling across the Uno Range and Morgans tenements in nearly a decade was
completed with an impressive strike rate where 24 of the 28 holes drilled intersected mineralisation. Silver
intersections included 12m @ 240g/t (including 6m @ 383g/t) at Twelve Mile. There were also extensive zinc
intersections such as 123m @ 0.48% (including 24m @ 1.52%) at Uno North.
The prospects and drill locations across the Uno Range and Morgans tenements are shown below.
Plan showing location of the 2022 regional drilling across the Uno Morgans project area
With the success of this early program of drilling, follow-up drilling based on these exciting results are planned to
commence before the end of 2022. These prospects provide further opportunities to add resources in support of an
operation at Paris.
Progress towards the agreement of a Native Title Mining Agreement to allow advanced exploration activities on
EL5913, in addition to a number of tenements within the Gawler Ranges Aboriginal Corporation determination area
occurred during the year, with finalisation anticipated in the near future.
During the year, Investigator was successful in being granted the Corunna tenement (EL6724 – 121km2), immediately
to the southeast of the Uno tenement and the Nonning South tenement (EL6753 – 14km2) to the north. Early stage
investigative work is in progress over these new areas in advance of Native Title agreements and field activities. The
acquisition of these tenements logically complements our successful exploration in the nearby Uno Range and
Morgans tenements and further builds our ground position in this area of demonstrated prospectivity that is core to
Investigator’s strategy.
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Investigator Resources Limited
Review of operations
30 June 2022
Stuart Shelf
Investigator, through its 100% owned subsidiary Gawler Resources Ltd, entered into a 3 Stage earn-in/joint venture
Heads of Agreement (HOA) with DGO Gold (now a subsidiary of Gold Road Resources, ASX:GOR), whereby DGO
Gold committed to spend $6.35M to earn up to an 80% interest in our Stuart Shelf tenements.
DGO Gold have developed a model of prospective sedimentary-hosted copper opportunities in the Stuart Shelf and
Investigator’s tenements form an integral part of their land holding in the area. Additional targets with Iron Oxide
Copper Gold potential have been identified within the tenement package.
As of the 24th June, 2022 Gold Road Resources (ASX:GOR) had notified its intention to proceed towards compulsory
acquisition of DGO Gold, with acquisition completed on 1st July, 2022. Gold Road have confirmed intentions to
continue with the Stuart Shelf earn-in.
Investigator’s, and the combined package of tenements, are shown below.
IVR’s Stuart Shelf tenements -
applications.
including recent
IVR’s and DGO’s combined Stuart Shelf tenements subject
to the HOA
At 30 June 2022, DGO Gold had spent approximately $1.5M on approved work on Investigator’s tenements. A further
approximately $500,000 is required to be spent by May 2024 to earn the right to form a 51:40 joint venture agreement.
Gold Road have indicated that it is their intention to undertake work to this value and enter into the joint venture.
Outside of the DGO Gold joint venture, Investigator applied for, and was successful in being granted the Uneroo
tenement (EL6754 – 492km2) which borders Investigator’s Whittata (Maslins) tenement (EL6642). Two additional
tenement applications, Lake MacFarlane (ELA2022/00043 - 982km2) and Wartarka (ELA2022/00044 - 557km2) have
been submitted. Both areas are contiguous with Investigator’s Uneroo and Yudnapinna (EL6641) tenements in the
Stuart Shelf area and are considered prospective for copper, gold and base metals.
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Investigator Resources Limited
Review of operations
30 June 2022
Curnamona
Early-stage exploration activities, limited to non-ground disturbing work, such as field mapping and soil sampling was
undertaken early in the 2022. With encouraging results in a number of prospect areas, further activities including
drone supported aerial geophysics and follow up field work are planned for late 2022.
Continued engagement with the Wilyakali Native Title Group – the Traditional Owners of the tenement areas - has
progressed where draft terms of a formal Native Title Mining Agreement (NTMA) have been agreed, and focus
remains on progressing the NTMA towards final agreement and registration to allow advanced exploration activities
such as drilling to occur.
Investigator seek to develop a mutually beneficial working relationship to ensure that all parties’ interests are
protected.
Fowler Domain
During the year, Investigator was formally granted two tenements, totalling an area of 1,878km2, in the Fowler Domain
within the Western Gawler area in South Australia. Drilling in the broader Fowler Domain by others (Western Areas
- ASX:WSA – 23 June 2020) had identified significant nickel and copper sulphide mineralisation immediately adjacent
to these tenements. Investigator believe that in addition to the nickel and copper potential, there is additional potential
for gold mineralisation.
In October 2021 Investigator announced that, through its 100% owned subsidiary Kimba Minerals Pty Ltd, it had
entered into a HOA with Osmond Resources Ltd (ASX:OSM, Osmond) whereby Osmond have committed to spend
$2.75M in 3 stages over a 6 year period to earn the right to form a 80:20 joint venture.
In further consideration, Osmond issued Investigator with 1.1M OSM shares, escrowed until April 2023.
Osmond have informed the Company that they are preparing to undertake regional geophysical exploration across
the tenements.
Other
Renewal applications for tenements that have expired during the year were all been submitted within the required
timeframes. A significant delay within the Department for Energy and Mining in processing and responding has
occurred. The company is confident that these renewals will be granted in accordance with the submitted renewal
applications.
Tasmania – White Spur – EL2/2020
Investigator holds the White Spur exploration licence (EL2/2020) in the highly mineral endowed Mount Read Volcanic
belt of North-West Tasmania as shown below.
Identified through a “machine learning” or “neural analysis” exercise in targeting mineralisation similar to that at the
significant Rosebery Mine (which has operated continuously from 1936, producing zinc, copper, lead and gold) and
Henty Mine (produced approximately 1.3Moz since its commissioning in 1996), the 84km2 White Spur tenement lies
immediately to the south of the Rosebery and historic Hercules zinc mines and west of, and adjacent to the Henty
Mine.
No significant exploration has been undertaken on the tenement since 2013 when the presence of thallium, a known
vector to massive sulphide mineralisation, was reported.
An initial field visit was undertaken during the year. Geotechnical investigations have been conducted by MMG’s
Renison operations under an access agreement.
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Investigator Resources Limited
Review of operations
30 June 2022
Investigator’s “White Spur” exploration licence is located on the West Coast of Tasmania, south of MMG’s Rosebery Mine and
west of Catalyst Metals’ Henty Mine.
Risks
Investigator’s operating and financial results and performance are subject to various risks and uncertainties, some of
which are beyond Investigator’s reasonable control. Set out below are matters which the Group has assessed as having
the potential to have a material impact on its operating and/or financial results and performance:
(i) Fluctuations in external economic drivers including macroeconomics and metal prices: The consolidated
entity’s primary focus is the advancement of its Paris Silver Project. Fluctuations in the silver price can result from
various aspects beyond Investigator’s control, including macroeconomic and geopolitical. Sustained lower silver
prices would adversely impact the viability of the Project.
(ii) Capital and Liquidity: The consolidated entity will incur expenditures over the next several years in connection
with its exploration objectives and development of new projects and relies on its ability to raise capital as its primary
source of funding. The company is exposed to the risk that unfavorable macroeconomic and market conditions
would preclude it from raising sufficient capital.
(iii) Failure to discover mineral resources and convert to ore reserves: Exploration activities are speculative in
nature and often require substantial expenditure on exploration surveys, drilling and sampling as a basis on which
to establish the presence, extent and estimated grade (metal content) of mineralised material. Even if significant
mineralisation is discovered, it may take additional time and further financial investment to determine whether a
mineral resource has attributes that are adequate enough to support the technical and economic viability of mining
projects and enable a financial investment and development decision to be made. During that time the economic
viability of the project may change due to fluctuations in factors that affect both revenue and costs, including metal
prices, foreign exchange rates, the required return on capital, regulatory requirements, tax regimes and future cost
of development and mining operations.
(iv) Renewal of tenements: The consolidated entity has been granted tenements by the South Australian Department
for Energy and Mining (‘the Department’) on the terms and conditions set out in the related lease agreements. At
the expiry of the lease term, the decision of renewal application to assign tenements to the consolidated entity
remains with the Department. A non-renewal of a tenement would adversely affect the operational results and
fulfilment of the aspirations of the consolidated entity.
(v) Failure to attract and retain key employees: The consolidated entity is heavily dependent for its continued
operational success on its ability to attract and retain high caliber personnel to fill roles including Directors,
Managing Director, Exploration Manager and geologists. A loss of key personnel or a failure to attract appropriately
skilled and experienced personnel could affect its operations and performance.
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Investigator Resources Limited
Review of operations
30 June 2022
Corporate
People
In late 2021, the Company announced the resignation of Mr Kevin Wilson as Non-Executive Chair, having served as
a director since September 2017, and the appointment of Dr Richard Hillis as Non-Executive Chair from 1 January
2022.
This appointment sees Dr Hillis bring important South Australian relationships to the Company at a time when the
Paris Silver Project is moving towards development status, and the change in Chair reflects the execution of an
orderly succession plan enacted by the Board.
Dr Hillis is a highly regarded geoscientist having graduated from Imperial College (London) in 1985 with a BSc (Hons)
in Geology and a PhD from the University of Edinburgh in 1989 whose career spans appointments at the University
of Adelaide where he was Mawson Professor of Geology, State of South Australia Chair of Petroleum Geology, Head
of the Australian School of Petroleum, and more recently Pro Vice-Chancellor (Research Performance).
A founding director for the IPO of ASX listed Petratherm, Dr Hillis was also a founding director of KCL Resources
that ultimately backdoor listed on the ASX via Highfield Resources. From 2010 to 2018 Richard was CEO of the
Deep Exploration Technologies Cooperative Research Centre (DET CRC) which developed transformative
technologies for mineral exploration. Richard was awarded South Australian Scientist of the Year in 2018.
Dr Hillis is currently a non-executive director of AuScope - Australia’s provider of research infrastructure to the Earth
and Geospatial Science community, and of HILT CRC (Heavy Industry Low carbon Transition Cooperative Research
Centre).
Business development
Investigator have continued to review opportunities for the acquisition of prospects with the potential to generate
significant accretive value. Whilst the Company’s principal focus remains the advancement of the Paris Silver Project
and continued regional exploration, the aim of creating some diversification in Investigator’s portfolio continues.
Focus has been maintained on domestic opportunities, conscious that the tightening equity market may present
some possibilities.
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 30 June 2022. Due to management's assessment that exploration costs incurred on all exploration
tenements/assets with the exception of the Paris Silver Project (on the Peterlumbo Tenement) may not be
recoverable, the related exploration and evaluation assets have been written off as a part of the impairment charge
of $2.9 million.
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 2022 Financial Year, the Directors resolved to impair approximately
$2.9 million of the total Exploration and Evaluation value carried forward as at 30 June 2022.
The remaining balance of approximately $23.1 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.
Cash
The Company had $6.2 million cash at bank as at 30 June 2022.
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
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Investigator Resources Limited
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30 June 2022
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 2022, no matter or circumstance has arisen 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.
Subsequent to the end of the financial year on 30 July 2022, the South Australian Department for Energy and Mining
have confirmed renewal of the Peterlumbo (EL6347), Plumbago (EL6192), Morgans (EL5933), Treloars (EL6345)
and Olary (EL6253) tenements.
Competent Person 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.
15
Investigator Resources Limited
Review of operations
30 June 2022
Corporate disclosure and reporting
The status of Investigator’s tenements at 30 June 2022 are detailed in the table below.
Tenement Number
Tenement Name
Registered Holder
Notes
Project: Peterlumbo (IVR 100%)
EL6347
Peterlumbo
Sunthe
Renewal Applied For
Project: Uno/Morgans (IVR 100%)
EL5845
EL5933
EL6724
EL6753
EL6725
EL5913
Uno Range
Morgans
Corunna
Nonning South
Yardea
Harris Bluff
Project: Tasmania (IVR 100%)
E2/2020
White Spur
Project: Stuart Shelf (IVR 100%)
EL6643
EL6642
EL6641
EL6640
EL6402
EL6754
Project: Curnamona (IVR 100%)
EL5938
EL6192
EL6345
EL6253
Yalymboo-Oakden Hills
Whittata (Maslins)
Yudnapinna
Birthday
Kootaberra
Uneroo
Wiawera
Plumbago
Treloars
Olary/Bulloo Creek
Project: Adelaide Geosyncline (IVR 100%)
EL5999
EL6226
Cartarpo
Screechowl Creek
Project: Northern Craton (IVR 100%)
EL6187
Algebuckina
Projet: Fowler Domian (IVR 100%)
EL6603
EL6604
** Applications **
ELA2022/00043
ELA2022/00044
Yellabinna
Chundaria
Lake MacFarlane
Wartarka
GRL
GRL
GRL
GRL
GRL
GRL
GIL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
GRL
KML
KML
GRL
GRL
Renewal Applied For
Renewal Applied For
Current
Current
Current
Renewal Applied For
Current
Current
Current
Current
Current
Current
Current
Renewal Applied For
Current
Renewal Applied For
Renewal Applied For
Current
Renewal Applied For
Renewal Applied For
Current
Current
Notes:
Sunthe - Sunthe Minerals 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
KML – Kimba Minerals Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd
16
Investigator Resources Limited
Directors' report
30 June 2022
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 2022.
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:
Richard Hillis - Non-Executive Chair (appointed effective 1 January 2022)
Andrew McIlwain - Managing Director
Andrew Shearer - Non-Executive Director
Kevin Wilson - Non-Executive Chair (resigned effective 1 January 2022)
Principal activities
The principal activity of the Company during the year was mineral exploration.
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 $4,133,905 (30 June 2021: $1,979,310).
The net result for the year includes an impairment charge of $ 2,9670,065 associated with exploration and evaluation assets.
During the year, the Company incurred $4,872,931 expenditure on exploration activities across the Company’s tenements,
compared with $4,935,647 for the prior year.
At 30 June 2022, the Company had a cash position of $6,221,599 (2021: $11,586,925).
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
No matter or circumstance has arisen since 30 June 2022 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.
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.
The Company continues to advance the Paris Silver Project and it is anticipated that the Pre-feasibility Study be completed
and announced in September 2021.
The Coronavirus/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 Coronavirus/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, State and Territory
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.
17
Investigator Resources Limited
Directors' report
30 June 2022
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Richard Hillis (Appointed 1 January 2022)
Non-Executive Chair
BSc (Hons) Geology, PhD University of Edinburgh
Dr Hillis is a highly regarded geoscientist having graduated from Imperial College
(London) in 1985 with a BSc (Hons) in Geology and a PhD from the University of
Edinburgh in 1989.
Richard's career spans appointments at the University of Adelaide where he was
Mawson Professor of Geology, Statement of South Australia Chair of Petroleum
Geology, Head of the Australian School of Petroleum, and more recently Pro Vice-
Chanceller (Research Performance).
A founding director for the IPO of ASX listed Petratherm, Richard was also a founding
director of KCL Resources that ultimately backdoor listed on the ASX via Highfield
Resources which now has a market capitalisation of ~$275M. From 2010 to 2018
Richard was CEO of the Deep Exploration Technologies Cooperative Research Centre
(DET CRC) which developed transformative technologies for mineral exploration.
Richard was awarded South Australian Scientist of the Year in 2018.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Nil
2,000,000 (unlisted)
Name:
Title:
Qualifications:
Experience and expertise:
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 was previously the Chief Operating Officer of
Laguna Gold and is Non-Executive Chair of Emmerson Resources Ltd (ASX: ERM).
Emmerson Resources Ltd (ASX: ERM).
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
10,467,050
10,000,000 (unlisted), 5,000,000 (Performance Rights)
18
Investigator Resources Limited
Directors' report
30 June 2022
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
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.
Executive director for Osmond Resources Ltd (ASX: OSM), Resolution Minerals
(ASX:RML).
Former directorships (last 3 years): Okapi Resources Limited (ASX:OKR), Andromeda Metals (ASX:ADN)
Interests in shares:
Interests in options:
Nil
2,000,000 (unlisted)
Name:
Title:
Qualifications:
Experience and expertise:
Kevin Wilson (Retired 1 January 2022)
Non-Executive Chair
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 in 2005 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 Chair of Navarre Minerals Limited (ASX: NML) and Non-Executive Director
of Los Cerros Limited (Previously Metminco Limited) (ASX: MNC).
Navarre Minerals Limited and Los Cerros Limited.
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
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.
19
Investigator Resources Limited
Directors' report
30 June 2022
Company Secretaries
Ms Melanie Leydin
Ms Melanie Leydin resigned as Company Secretary on 31 October 2021 and continues in her capacity as Chief Financial
Officer. Ms Leydin graduated from Swinburne University in 1997, became a Chartered Accountant in 1999 and since
February 2000 has been the principal of chartered accounting firm. Upon the merger of Leydin Freyer with Vistra in November
2021, Ms Leydin is the country head of Vistra Australia. Ms Leydin has over 25 years’ experience in the accounting
profession and has extensive experience in relation to public company responsibilities, including ASX and ASIC compliance,
control and implementation of corporate governance, statutory financial reporting, reorganisation of Companies and
shareholder relations and is a director and company secretary for a number of entities listed on the Australian Securities
Exchange.
Anita Addorisio
Ms Addorisio is an experienced finance professional with over 20 years’ senior finance experience and more than 7 years
ASX listed company secretary experience across several industry sectors including resources. She has extensive experience
in relation to public company responsibilities, including ASX and ASIC compliance. Anita is a Fellow of CPA and the
Governance Institute, 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 2022, and the
number of meetings attended by each Director were:
R. Hillis
A. McIlwain
A. Shearer
K. J. Wilson
* 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.
Full Board
Attended
Held*
4
9
9
5
4
9
9
5
20
Investigator Resources Limited
Directors' report
30 June 2022
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.
Key Management Personnel (KMP) 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:
●
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 Directors remuneration
Fees and payments to Non-Executive directors reflect the demands and responsibilities of their role. Non-Executive directors'
fees and payments are reviewed periodically 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 Chair's fees are determined independently to the fees of other non-executive directors based on comparative
roles in the external market. The Chair 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 last determination was at the Annual General Meeting held on 18 November 2013, where the shareholders
approved a maximum annual aggregate remuneration of $500,000.
21
Investigator Resources Limited
Directors' report
30 June 2022
Fees payable to the Chair during FY22 were $70,000 per annum (including superannuation). Fees paid to the other Non-
Executive Directors were $40,000 per annum. Following external benchmarking in FY22, the fees increased to $75,000 per
annum for the Chair (including superannuation) with effect 1 July 2022 and $50,000 per annum to other Non-Executive
Directors with effect 1 January 2022.
Managing Director
The base salary of $350,000 per annum plus statutory superannuation and annual short-term incentives of up to 30% 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. Long term incentives of 15 million Performance Rights in 3 tranches to vest against service, performance
and share price conditions over 3 years.
Following external benchmarking in FY22, the Managing Director’s base salary increased from $275,000 to $350,000 with
effect from 1 April 2022 to align executive salaries with comparable roles in the market.
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.
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, $84,563 STI was paid to Mr Andrew
McIlwain and $27,255 was awarded to Mr Jason Murray on achievement of annual short-term incentive KPI's.
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, no equity instruments were issued to the Executives as LTI.
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)
2022
3.7
2021
8.1
2020
1.7
2019
1.1
2018
1.1
Share prices are subject to market sentiment and the international metal prices which may move independently of the
performance of the Key Management Personnel
22
Investigator Resources Limited
Directors' report
30 June 2022
Use of remuneration consultants
Remuneration consultants are engaged from time to time to provide independent information and guidance on remuneration
for Directors and the Executive Team. The independent consultants facilitate discussion, conduct external benchmarking,
and provide commentary on a number of remuneration issues and structures. Any advice provided by independent
consultants is used as a guide and is not a substitute for the considerations and procedures of the Board.
During FY22, recognising the tightening labour market and challenges to secure and retain key personnel, the Directors
engaged an independent Remuneration Consultant to conduct an external benchmarking exercise reviewing both Director
fees and Key Management Personnel remuneration packages. In conjunction with this remuneration benchmarking, the
Consultant provided insight to the broader market and trends for consideration by the Board. As a consequence of this
review, Director Fees and the Managing Director’s remuneration arrangements were reviewed.
Voting and comments made at the company's 24 November 2021 Annual General Meeting (AGM)
At the 24 November 2021 AGM, 97.33% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2021. 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 KMP of the consolidated entity are set out in the following tables.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Remuneration
consisting of
options
Cash
salary
and fees bonus
Cash Termination
30 June 2022
$
Non-Executive
Directors:
R. Hillis*
A. Shearer
K. Wilson**
31,818
40,909
29,545
$
-
-
-
Executive Directors:
A. McIlwain***
293,750
84,563
Other Key
Management
Personnel:
J. Murray****
230,000
27,255
626,022 111,818
payment
$
-
-
-
-
-
-
Super-
annuation
$
Long
service
leave
$
Equity-
Settled1
$
Total
$
%
3,182
4,091
2,955
29,375
-
-
-
-
70,540
105,540
67%
-
-
45,000
32,500
-
-
68,508
476,196
14%
23,000
62,603
8,669
8,669
-
139,048
288,924
948,160
-
R. Hillis was appointed as Non-Executive Chair on 1 January 2022.
*
** K. Wilson resigned as Non-Executive Chair on 1 January 2022.
*** Cash bonus paid to A McIlwain on achievement of annual short-term incentive KPI’s.
**** The bonus of $27,255 to J Murray was payable as at 30 June 2022 on achievement of annual short-term incentive
KPI’s.
1Equity-settled share-based payments in the table above represents the valuation of the options and/or performance rights
granted to the relevant KMP, as required by Accounting Standard AASB 2- Share-based Payment to be accounted as the
cost to the company. The amount disclosed for equity-settled share-based payments represents the accounting valuation
recognised as cost to the company during the year as disclosed in Note 35 and does not represent cash remuneration to the
KMP.
23
Investigator Resources Limited
Directors' report
30 June 2022
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Remuneration
consisting of
options
Cash
salary
and fees
$
Cash
bonus
$
Termination
payment
$
Super-
annuation
$
Long
service
leave
$
Equity-
Settled1
$
Total
$
30 June 2021
Non-Executive
Directors:
D. Ransom*
K. Wilson
A. Shearer**
1,588
58,371
35,338
-
-
-
Executive Directors:
A. McIlwain***
270,417
34,375
Other Key
Management
Personnel:
J. Murray****
254,086
619,800
-
34,375
-
-
-
-
-
-
%
-
-
64%
151
5,545
3,357
25,690
-
-
-
-
-
-
69,140
1,739
63,916
107,835
122,037
452,519
27%
24,138
58,881
13,547
13,547
-
191,177
291,771
917,780
-
*
D. Ransom resigned as Non-Executive Director on 14 July 2020.
** A. Shearer was appointed as Non-Executive Director on 14 July 2020.
*** Cash bonus paid to A McIlwain on achievement of annual short-term incentive KPI’s.
**** J. Murray was identified as KMP on his appointment as the Exploration Manager effective 1 August 2020.
1Equity-settled share-based payments in the table above represents the valuation of the options and/or performance rights
granted to the relevant KMP, as required by Accounting Standard AASB 2- Share-based Payment to be accounted as the
cost to the company. The amount disclosed for equity-settled share-based payments represents the accounting valuation
recognised as cost to the company during the year as disclosed in Note 35 and does not represent cash remuneration to the
KMP.
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:
Name:
Title:
Agreement commenced:
Term of agreement:
Richard Hillis
Non-Executive Chair
1 January 2022
Annual Non-Executive Chair fees of $70,000 per annum inclusive of superannuation
contribution.
Andrew Shearer
Non-Executive Director
14 July 2020
Annual Non-Executive director's
inclusive of
superannuation until December 2021 and effective from 1 January 2022, annual
director’s fees of $50,000 per annum inclusive of superannuation.
fees of $40,000 per annum
24
Investigator Resources Limited
Directors' report
30 June 2022
Name:
Title:
Agreement commenced:
Term of agreement:
Notice period:
Name:
Title:
Agreement commenced:
Term of agreement:
Notice period:
Andrew McIlwain
Managing Director
1 October 2019
Base salary of $275,000 per annum till March 2022 and effective from 1 April 2022,
base salary of $350,000 per annum plus statutory superannuation and annual short-
term incentives of up to 30% 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. Long term incentives of 15 million Performance Rights in 3 tranches to vest
against service, performance and share price conditions over 3 years.
Notice period of 3 months (both parties)
Jason Murray
Exploration Manager
1 August 2020
Base salary of $230,000 per annum plus statutory superannuation and annual short-
term incentives of up to 15% of annual salary upon the successful achievement of KPI’s
to be approved by the Managing Director and Board.
Notice period of 1 Month (both parties).
KMP have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
Issue of shares
On 31 January 2022, 4,367,050 Fully Paid Ordinary Shares were issued to Mr Andrew McIlwain upon vesting of Performance
Rights under the terms and conditions as approved by shareholders at the Annual General Meeting held 20 November 2019.
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other Key
Management Personnel in this financial year or future reporting years are as follows:
Name
A. McIlwain*
J. Murray
A. Shearer
R. Hillis**
Number of
options
granted
10,000,000
6,000,000
2,000,000
2,000,000
Grant date
20/11/2019
20/11/2019
13/08/2020
01/01/2022
Vesting date and
exercisable date
-
20/11/2019
13/08/2020
01/01/2022
Expiry date
20/11/2022
20/11/2022
20/11/2022
31/12/2024
Exercise
price
Fair value
per option at
grant date
$0.035
$0.035
$0.035
$0.097
$0.008
$0.007
$0.035
$0.035
* Options granted to Mr McIlwain vest on the satisfaction of a project acquisition deemed by the Board to be material to
the Company.
** Unlisted options issued to Mr R. Hillis on 1 January 2022 as part of his appointment as Non-Executive Director.
All options were granted over unissued fully paid ordinary shares in the company. Employee Option Plan is part of the
Company's reward strategy, which seeks to reward performance in support of the achievement of business objectives and
share in the growth in value of the Company. The company issued the above options to the KMP on the following basis:
(i)
(ii)
10,000,000 options as approved by the shareholders on 28 November 2019 were issued to Mr McIlwain to be vested
on satisfaction of a project acquisition deemed by the Board to be material to the Company.
6,000,000 options were issued to Mr Murray as part of company's remuneration policy to retain high calibre executives
and towards his performance in aligning with shareholders' interest. These options vested immediately at the date of
grant.
(iii) Mr Shearer and Dr Hillis were each issued 2,000,000 options on their appointment as Non-Executive Director as part
of company's remuneration policy to attract and retain high calibre directors and executives.
Options granted carry no dividend or voting rights.
25
Investigator Resources Limited
Directors' report
30 June 2022
The number of options over ordinary shares granted to and vested by Directors and other KMP as part of compensation
during the year ended 30 June 2022 are set out below:
Name
A. Shearer
R. Hillis
Performance rights
Number of
options
granted
during the
year
30 June
2022
Number of
options
granted
during the
year
30 June
2021
Number of
options
vested
during the
year
30 June
2022
Number of
options
vested
during the
year
30 June
2021
-
2,000,000
2,000,000
-
-
2,000,000
2,000,000
-
In December 2019, the Company issued 15,000,000 performance rights to Andrew McIlwain (Managing Director) vesting
upon meeting performance conditions. The fair value of the performance rights, the vesting conditions of which meet the
definition of a market condition, was determined using the Hoadley Barrier1 trinomial option valuation model. The fair value
of the performance rights the vesting conditions of which do not meet the definition of a market condition, was determined
using Hoadley ESO2 valuation model. During the year ended 30 June 2021, 5,000,000 performance rights vested upon
meeting performance conditions. The company issued 5,000,000 shares on the exercise of these performance rights at nil
exercise price.
During the year ended 31 June 2022, 4,367,050 performance rights vested upon meeting performance rights, the company
issued 4,367,050 shares on the exercise of these performance rights at nil exercise price. 632,950 performance rights expired
and were not converted to Fully Paid Ordinary Shares. As at 30 June 2022, 5,000,000 performance rights remained unvested
(30 June 2021: 10,000,000), the performance conditions of which are as below:
Performance
Rights
Expiry Date
Vesting Conditions
1,666,666
31 January 2023
1,666,666
31 January 2023
1,666,666
31 January 2023
Service vesting condition: vest upon continuous service for the period to 31
December 2022.
Performance vesting condition: vest upon workplan being delivered to budget for
31 December 2022.
Share price vesting condition: vest upon target share price of $0.0550 (based on
30-day VWAP).
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
A. McIlwain*
J. Murray
Balance at
the start of
the year
Received
as part of
remuneration
Additions
Other/
Disposal
6,100,000
312,500
6,412,500
-
-
-
4,367,050
-
4,367,050
Balance at
the end of
the year
-
-
-
10,467,050
312,500
10,779,550
*
4,367,050 shares were issued upon vesting of 4,367,050 performance rights during the year.
26
Investigator Resources Limited
Directors' report
30 June 2022
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
A. McIlwain
K. Wilson*
A. Shearer
J. Murray
R. Hillis**
Balance at
the start of
the year
10,000,000
2,000,000
2,000,000
6,000,000
-
20,000,000
Granted
Exercised
Other
-
-
-
-
2,000,000
2,000,000
-
-
-
-
-
-
-
(2,000,000)
-
-
-
(2,000,000)
Balance at
the end of
the year
10,000,000
-
2,000,000
6,000,000
2,000,000
20,000,000
*
K. Wilson resigned as Non-Executive Chair effective 1 January 2022. The balance presented under Other represents
the number of options held by K. Wilson at the time of resignation.
** Unlisted options issued to Dr R. Hillis on 1 January 2022 as part of his appointment as Non-Executive Director and
Chair.
Transactions with related parties
The following transactions occurred with the related parties:
Other income:
Shares issued by Osmond Resources Ltd*
30 June 2022 30 June 2021
$
$
231,500
-
*On 18 October 2021, the Company entered into a two stage Earn-In exploration program with Osmond whereby Osmond
issued 200,000 shares to the Company upon signing the Term Sheet for the Earn-In and Joint Venture Agreement
(Agreement) for exploration of certain tenements held by the consolidated entity. A further 900,000 Osmond shares were
issued to the Company upon the successful listing of Osmond on the ASX. under the terms of the Agreement.
Mr Andrew Shearer, Non-Executive Director of Investigator Resources Limited is also Executive Director and Chief Executive
Officer of Osmond Resources Limited. Refer to Note 31 for further details on the Earn-In and Joint Venture Agreement with
Osmond.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties 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.
This concludes the remuneration report, which has been audited.
27
Investigator Resources Limited
Directors' report
30 June 2022
Shares under option
Unissued ordinary shares of Investigator Resources Limited under option at the date of this report are as follows:
Grant date
20 November 2019*
13 August 2020
1 January 2022**
Expiry date
20 November 2022
20 November 2022
31 December 2024
Exercise
price
Number
under option
$0.035
$0.035
$0.097
22,000,000
2,000,000
2,000,000
26,000,000
Unlisted options
*
** Unlisted options issued to Dr R. Hillis on 1 January 2022 as part of his appointment as Non-Executive Chair.
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
There were no ordinary shares of Investigator Resources Limited issued on the exercise of options during the year ended
30 June 2022 and up to the date of this report.
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.
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 26 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 26 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.
●
28
Investigator Resources Limited
Directors' report
30 June 2022
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
___________________________
Richard Hillis
Chair
9 September 2022
29
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
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 2022, 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
I S Kemp
Partner – Audit & Assurance
Adelaide, 9 September 2022
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘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 Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
#8150145v2w
30
Investigator Resources Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Other income
Interest income
Expenses
Employee benefit expenses
Administrative expenses
Exploration and evaluation expenses written off
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Investigator Resources Limited
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Gain on the revaluation of financial assets at fair value through other comprehensive
income, (net of tax-nil)
Other comprehensive loss 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
Note
Consolidated
30 June
2022
$
30 June
2021
$
5
6
7
8
234,279
41,208
70,000
48,791
(608,352)
(830,975)
(2,970,065)
(529,902)
(647,899)
(920,300)
(4,133,905)
(1,979,310)
-
-
(4,133,905)
(1,979,310)
(44,500)
(44,500)
-
-
(4,178,405)
(1,979,310)
Cents
Cents
34
34
(0.31)
(0.31)
(0.17)
(0.17)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
31
Investigator Resources Limited
Statement of financial position
As at 30 June 2022
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Financial asset at fair value through other comprehensive income
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
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
Consolidated
30 June
2022
$
30 June
2021
$
9
10
11
12
13
14
15
16
17
18
19
6,221,599
100,881
27,387
11,420
6,361,287
11,586,925
30,519
26,424
111,016
11,754,884
187,000
15,136
139,847
23,117,112
116,760
23,575,855
-
7,960
116,299
21,214,246
116,760
21,455,265
29,937,142
33,210,149
999,340
61,146
372,296
1,432,782
600,697
31,061
236,070
867,828
80,786
12,000
92,786
83,391
-
83,391
1,525,568
951,219
28,411,574
32,258,930
20
21
70,736,800
312,382
(42,637,608)
70,350,184
421,737
(38,512,991)
28,411,574
32,258,930
The above statement of financial position should be read in conjunction with the accompanying notes
32
Investigator Resources Limited
Statement of changes in equity
For the year ended 30 June 2022
Consolidated
Issued
capital
$
Share option
Reserves
$
Financial
asset
Reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2020
55,348,547
403,642
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 Key Management Personnel
and employees
Share based expense related to performance
rights
Lapse of options
Exercise of options
15,264,782
(679,623)
-
-
-
271,040
-
95,781
-
-
416,478
95,394
(27,642)
(416,478)
Balance at 30 June 2021
70,350,184
421,737
Consolidated
Issued
capital
$
Share option
Reserves
$
Financial
asset
Reserve
$
Balance at 1 July 2021
70,350,184
421,737
Loss after income tax expense for the year
Other comprehensive loss for the year, net of
tax
Total comprehensive loss for the year
Shares issued
Options issued to Key Management Personnel
and employees
Share based expense related to performance
rights
Exercise of options
Exercise of performance rights
Lapse of performance rights
-
-
-
192,000
-
-
-
-
-
97,182
-
130,520
64,096
-
41,867
(130,520)
(64,096)
(9,288)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(36,561,323)
19,190,866
(1,979,310)
(1,979,310)
-
-
(1,979,310)
(1,979,310)
-
-
-
-
-
27,642
-
15,264,782
(679,623)
271,040
95,781
95,394
-
-
(38,512,991)
32,258,930
Accumulated
losses
$
Total equity
$
(38,512,991)
32,258,930
(4,133,905)
(4,133,905)
(44,500)
-
(44,500)
(44,500)
(4,133,905)
(4,178,405)
-
-
-
-
-
-
-
-
-
-
-
9,288
192,000
97,182
41,867
-
-
-
Balance at 30 June 2022
70,736,800
356,882
(44,500)
(42,637,608)
28,411,574
The above statement of changes in equity should be read in conjunction with the accompanying notes
33
Investigator Resources Limited
Statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers and employees
Interest received
COVID-19 support
Other income
Note
Consolidated
30 June
2022
$
30 June
2021
$
(1,099,291)
38,019
-
2,779
(944,892)
46,519
50,000
22,000
Net cash used in operating activities
33
(1,058,493)
(826,373)
Cash flows from investing activities
Exploration expenditure
Payments for property, plant and equipment
Payments for security deposits
Payment of JV contribution received in advance
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercising options
Share issue transaction costs
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(4,249,178)
(12,200)
-
(237,455)
(4,839,490)
(10,943)
(92,558)
-
(4,498,833)
(4,942,991)
20
192,000
-
-
8,000,000
7,264,782
(408,583)
192,000
14,856,199
(5,365,326)
11,586,925
9,086,835
2,500,090
Cash and cash equivalents at the end of the financial year
9
6,221,599
11,586,925
The above statement of cash flows should be read in conjunction with the accompanying notes
34
Investigator Resources Limited
Notes to the financial statements
30 June 2022
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
47 King Street, Norwood SA 5067
47 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 9 September 2022. 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.
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).
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 $23,117,112 (30 June 2021: $21,214,246).
The consolidated group has incurred a net loss after tax for the year ended 30 June 2022 of $4,133,905 (30 June 2021:
$1,979,310) and operations were funded by a net cash outflow, from operating and investing activities of $5,557,326 (30
June 2021: net cash outflow of $5,769,364). At 30 June 2022, the consolidated group had net current assets of $4,928,505
(June 2021: net current assets of $10,887,056).
35
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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. Should the
consolidated entity not achieve the matters set out above, there would then be significant uncertainty over the ability of the
consolidated entity to continue as a going concern, and, therefore, it may have to realise its assets and extinguish its liabilities,
other than in the ordinary course of business and at amounts different from those stated in the 2022 annual financial report.
The 2022 annual financial report does not include any adjustments that may be necessary if the consolidated group is unable
to continue as a 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 29.
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 2022 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.
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.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at
either amortised cost or fair value depending on their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an
accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
36
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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.
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.
Government Grant
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Company will comply with all attached conditions.
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.
37
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 2. Significant accounting policies (continued)
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.
Farm-out arrangements
A farm-out arrangement involves the consolidated entity agreeing to provide a working interest in its tenements to a third
party (the farmee), provided that the farmee incurs certain expenditures on those tenements to earn that interest. The
consolidated entity uses the carrying amount of the tenements before the farm-out as the carrying amount for the portion of
the interest retained. The consolidated entity credits any cash consideration received against the carrying amount, with any
excess included as a gain in profit or loss. The consolidated entity does not record exploration expenditures on the tenements
made by the farmee.
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.
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.
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.
38
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Employee benefits provision
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.
Note 4. Operating segments
Identification of reportable operating segments
The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by
the Board in allocating resources and has concluded at this time that there are no separately identifiable segments.
Note 5. Other income
COVID-19 support-government cashflow boost
Other income
Consolidated
30 June
2022
$
30 June
2021
$
-
234,279
50,000
20,000
234,279
70,000
Other income of $234,279 for the year ended 30 June 2022 includes $231,500 of shares issued by Osmond Resources
Limited as part of binding Term Sheet entered with the consolidated entity during the year. Refer to note 12 for details.
Note 6. Employee benefit expenses
Benefits provided to employees
Share based employee expenses
Less charged to exploration and evaluation expenses
39
Consolidated
30 June
2022
30 June
2021
1,297,424
139,048
1,436,472
1,017,358
191,177
1,208,535
(828,120)
(678,633)
608,352
529,902
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 7. Administrative expenses
Audit fees
Other professional services paid to related entities of the auditor
Accounting and company secretarial fees
Depreciation
Director’s fees
Insurance and legal
Minimum lease rental payment
Shareholders communications
Office expenses
Other expenses
Note 8. 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 25% (2021: 26%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Adjustment for non-deductible expenses
Effects due to distribution of JMEI credits
Deductible capital raising costs
Allowable exploration and evaluation expenditure
Prior period exploration and evaluation expenses written off
Net non-allowable expenses
Effects due to change in company tax rate
Application of AASB 16 Lease standard
Tax effect of temporary differences not brought to account
Income tax expense
Consolidated
30 June
2022
$
30 June
2021
$
51,525
10,300
123,011
11,966
111,363
135,382
1,569
111,494
242,036
32,329
36,725
10,210
121,500
18,295
107,804
78,637
17,709
139,509
105,112
12,398
830,975
647,899
Consolidated
30 June
2022
$
30 June
2021
$
(4,133,905)
(1,979,310)
(1,033,476)
(514,621)
20,215
62,944
(1,013,261)
256,462
(62,786)
(1,228,177)
742,516
95,200
543,392
983
665,671
(451,677)
-
(65,122)
(1,296,158)
239,278
8,999
787,814
(179)
777,045
-
-
Consolidated
30 June
2022
$
30 June
2021
$
Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit @ 25% (2021: 26%)
(63,638,343)
(58,613,529)
(15,909,586)
(15,239,518)
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.
40
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 9. Current assets - cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
30 June
2022
$
30 June
2021
$
2,221,599
4,000,000
4,586,925
7,000,000
6,221,599
11,586,925
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.
Accounting policy for cash and cash equivalents
Cash and cash equivalents include 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 10. Current assets - trade and other receivables
GST receivable
Other receivables
Consolidated
30 June
2022
$
30 June
2021
$
95,420
5,461
28,249
2,270
100,881
30,519
Accounting policy for trade and other receivables
Trade, GST and other receivables are recognised initially at fair value and subsequently measured at amortised cost using
effective interest method less any allowance for expected credit losses. These are generally due for settlement within 30
days.
Note 11. Current assets - inventories
Diesel fuel
Accounting policy for inventories
Inventories is stated at the lower of cost and net realisable value.
Consolidated
30 June
2022
$
30 June
2021
$
27,387
26,424
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.
41
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 12. Non-current assets - Financial asset at fair value through other comprehensive income
Ordinary shares in Osmond Resources Ltd
Reconciliation
Reconciliation of the carrying amounts at the beginning and end of the current and previous
financial year are set out below:
Opening fair value
Additions
Revaluation decrements
Closing fair value
Consolidated
30 June
2022
$
30 June
2021
$
187,000
-
231,500
(44,500)
187,000
-
-
-
-
-
On 18 October 2021, Kimba Minerals Pty Ltd, a wholly owned subsidiary of the Company entered into a binding Terms Sheet
with Osmond Resources Ltd exploration on Fowler Domain tenements held by Kimba Minerals Pty Ltd. Upon signing the
Term Sheet, the Company were issued 200,000 shares (at a deemed issue price of $0.1 per share). On 13 April 2022, further
900,000 (at a deemed IPO price of $0.2 per share) shares were issued to the Company upon listing of Osmond Resources
Limited. These investment in shares is classified as level 1 in fair value measurement hierarchy as Osmond Resources
Limited is listed on Australian Securities Exchange (ASX: OSM). As at 30 June 2022, the investment in shares is fair value
based on the quoted market price of $0.17 per share at $187k. As the time of initial recognition, the company has made an
irrevocable election for these investments to present subsequent changes in fair value in other comprehensive income.
Note 13. Non-current assets - right-of-use assets
Office premises - right-of-use
Consolidated
30 June
2022
$
30 June
2021
$
139,847
116,299
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 2020
Additions
Depreciation expense
Balance at 30 June 2021
Additions
Depreciation expense
Balance at 30 June 2022
42
Office
premises
right-of-use
$
113,137
104,143
(100,981)
116,299
86,290
(62,742)
Total
$
113,137
104,143
(100,981)
116,299
86,290
(62,742)
139,847
139,847
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 13. Non-current assets - right-of-use assets (continued)
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 14. Non-current assets - exploration and evaluation
Exploration and evaluation Asset - at carrying value
23,117,112
21,214,246
Consolidated
30 June
2022
$
30 June
2021
$
Opening balance - at carrying value
Capitalised exploration expenditure
Impairment
$
$
21,214,246
4,872,931
(2,970,065)
17,198,899
4,935,647
(920,300)
23,117,112
21,214,246
A review of the consolidated entity's exploration licenses was undertaken as at 30 June 2022 and management's assessment
was that exploration costs incurred on all exploration tenements/assets with the exception of the Silver Paris Project, Paris
PFS and Paris DFS 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 $2,970,065.
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.
Note 15. Non-current assets - other assets
Security deposits
Security deposits are held towards tenement applications and rental bond.
43
Consolidated
30 June
2022
$
30 June
2021
$
116,760
116,760
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 16. Current liabilities - trade and other payables
Trade payables
Sundry payables
Consolidated
30 June
2022
$
30 June
2021
$
951,282
48,058
567,148
33,549
999,340
600,697
Refer to Note 23 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 face value as they are less than 12-months
maturity. The amounts are unsecured and are usually paid within 30 days of recognition.
Note 17. Current liabilities - lease liabilities
Lease liability
Refer to note 23 for further information on financial instruments.
Note 18. Current liabilities - provisions
Annual leave
Long service leave
Accounting policy for employee benefits
Consolidated
30 June
2022
$
30 June
2021
$
61,146
31,061
Consolidated
30 June
2022
$
30 June
2021
$
208,669
163,627
129,636
106,434
372,296
236,070
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.
44
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 19. Non-current liabilities - lease liabilities
Lease liability
Refer to Note 23 for further information on financial instruments.
Consolidated
30 June
2022
$
30 June
2021
$
80,786
83,391
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.
Note 20. Equity - issued capital
Ordinary shares - fully paid
1,332,313,657 1,323,946,607
70,736,800
70,350,184
Consolidated
30 June
2022
Shares
30 June
2021
Shares
30 June
2022
$
30 June
2021
$
45
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 20. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Balance
Exercise of listed options
Placement shares issued to professional and
sophisticated investors
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Placement shares issued to professional and
sophisticated investors
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of unlisted options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of listed options
Exercise of unlisted options
Vesting of performance rights
Exercise of unlisted options
Exercise of unlisted options
Share issue costs
Date
1 July 2020
04 August 2020
07 August 2020
07 August 2020
24 August 2020
11 September 2020
17 September 2020
29 September 2020
08 October 2020
14 October 2020
27 October 2020
03 November 2020
11 November 2020
13 November 2020
19 November 2020
24 November 2020
1 December 2020
8 December 2020
15 December 2020
22 December 2020
30 December 2020
05 January 2021
31 January 2021
2 February 2021
4 February 2021
Shares
845,657,612
191,791
183,333,333
1,500,000
38,358
38,358
244,038
83,333,334
27,778
14,400,000
219,569
2,857,143
3,000,000
1,143,849
3,293,861
3,912,348
9,290,962
22,016,181
30,151,490
38,535,216
54,911,124
17,754,367
5,000,000
95,895
3,000,000
-
Balance
Exercise of unlisted options
Vesting of performance rights
30 June 2021
3 December 2021
31 January 2022
1,323,946,607
4,000,000
4,367,050
Balance
30 June 2022
1,332,313,657
$0.035
$0.030
$0.035
$0.035
$0.035
$0.035
$0.030
$0.035
$0.035
$0.035
$0.035
$0.036
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
$0.035
$0.000
$0.035
$0.045
$0.000
$0.050
$0.000
$
55,348,547
6,713
5,500,000
52,500
1,343
1,343
8,541
2,500,000
972
504,000
7,685
100,000
167,760
40,035
115,285
136,932
325,184
770,566
1,055,302
1,348,733
2,123,847
621,402
74,000
3,356
215,760
(679,622)
70,350,184
322,520
64,096
70,736,800
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.
46
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 20. Equity - issued capital (continued)
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 the Directors consider that, from a capital management
perspective, funding is required to support the Investigator’s exploration and development strategies, or 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 has regularly informed the market that it will pursue additional investments that are value
accretive.
The capital risk management policy remains unchanged from the 2021 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.
Note 21. Equity - reserves
Financial asset reserve
Share options reserve
Consolidated
30 June
2022
$
30 June
2021
$
(44,500)
356,882
-
421,737
312,382
421,737
Financial assets reserve
The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other
comprehensive income.
Share options reserve
The share options reserve records items recognised as expenses on valuation of options. Refer to Note 35 for share-based
payments made during the year ended 30 June 2022 and 30 June 2021.
Note 22. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 23. 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.
47
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 23. Financial instruments (continued)
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 $6,221,599 (2021: $11,586,925). An official
increase/decrease in interest rates of 0.1% (2021: 0.1%) basis points would have an adverse/favourable effect on profit
before tax of $6,222 (2021: $11,587) 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.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities. The
tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining
contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.
Consolidated - 30 June 2022
Non-derivatives
Non-interest bearing
Trade and other payables
Interest-bearing
Lease liability
Total non-derivatives
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
972,085
-
-
7.50%
70,400
1,042,485
60,775
60,775
23,925
23,925
-
-
-
972,085
155,100
1,127,185
48
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 23. Financial instruments (continued)
Consolidated - 30 June 2021
Non-derivatives
Non-interest bearing
Trade payables
Interest-bearing
Lease liability
Total non-derivatives
Weighted
average
interest rate
%
1 year or
less
$
Between 1
and 2 years
$
Between 2
and 5 years Over 5 years
$
$
Remaining
contractual
maturities
$
-
567,148
-
-
7.50%
61,810
628,958
38,500
38,500
28,875
28,875
-
-
-
567,148
129,185
696,333
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 24. Fair value measurement
Fair value hierarchy
The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly
Level 3: Unobservable inputs for the asset or liability
Consolidated - 30 June 2022
Assets
Investment in Osmond Resources shares
Total assets
Level 1
$
Level 2
$
Level 3
$
Total
$
187,500
187,500
-
-
-
-
187,500
187,500
There were no transfers between levels during the financial year.
Accounting policy for fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair
value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either: in the principal
market; or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming
they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and
best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers
between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
49
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 24. Fair value measurement (continued)
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not
available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is
undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where
applicable, with external sources of data.
Note 25. Key Management Personnel disclosures
Directors
The following persons were Directors of Investigator Resources Limited during the financial year:
K. Wilson - Non-Executive Chair
A. McIlwain - Managing Director
A. Shearer - Non-Executive Director
R. Hills - Non-Executive Chair
(resigned effective 1 January 2022)
(appointed effective 1 January 2022)
Other Key Management Personnel
The following person also had the authority and responsibility for planning, directing and controlling the major activities of the
consolidated entity, directly or indirectly, during the financial year:
J. Murray - Exploration Manager
Compensation
The aggregate compensation made to Directors and other members of 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 26. Remuneration of auditors
Consolidated
30 June
2022
$
30 June
2021
$
737,840
62,603
8,669
139,048
654,175
58,881
13,547
191,177
948,160
917,780
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
50
Consolidated
30 June
2022
$
30 June
2021
$
51,525
36,725
10,300
10,210
61,825
46,935
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 27. 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:
Consolidated
30 June
2022
$
30 June
2021
$
229,614
1,340,603
1,069,723
446,554
1,570,217
1,516,277
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
Note 28. Related party transactions
Parent entity
Investigator Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 30.
Farm-out Arrangements
Interests in Farm-out Arrangements are set out in Note 31
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in Note 25 and the remuneration report included in the
Directors' report.
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.
51
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 29. 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
Other comprehensive loss
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Financial asset reserve
Share options reserve
Accumulated losses
Total equity
Parent
30 June
2022
$
30 June
2021
$
(4,133,905)
(44,500)
(1,979,310)
-
(4,178,405)
(1,979,310)
Parent
30 June
2022
$
30 June
2021
$
6,361,287
11,754,884
29,937,142
33,210,149
1,432,782
867,828
1,525,568
951,219
70,736,800
(44,500)
356,882
(42,637,608)
70,350,184
-
421,737
(38,512,991)
28,411,574
32,258,930
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 30. 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
Fram Resources Pty Ltd
Principal place of business /
Country of incorporation
Ownership interest
30 June 2022 30 June 2021
%
%
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
-
52
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 30. Interests in subsidiaries (continued)
Fram Resources Pty Ltd was incorporated on 2 December 2021 as a separate entity to hold exploration licences if required.
Note 31. Interests in Farm-out Arrangements
(i) Osmond Resources Ltd
On 18 October 2021, Kimba Minerals Pty Ltd, a wholly-owned subsidiary of Investigator Resources Limited entered into
a binding Terms Sheet with unlisted Osmond Resources Ltd for exploration on Fowler Domain tenements held by Kimba
Minerals Pty Ltd. Under this agreement, Osmond will fund up to $2.75 million in a two-stage Earn-In exploration program
to explore Investigator's Fowler Domain tenement package over 6 years. Acknowledging the pre-listing status of
Osmond, there were several considerations and conditions precedent, including the listing of Osmond on ASX by 29
March 2022. Osmond listed on the ASX 22 March 2022.
Under the Stage 1 Program, Osmond may earn a 51% Joint Venture interest in the Fowler Domain tenements subject
to its spending of $750,000 on exploration expenditure over 3 years. Osmond can further elect to proceed with the
Stage-2 Earn-In by spending up to an additional $2 million of exploration expenditure over a further 3 years for a further
29% interest in the Fowler Domain tenements.
Post satisfactory completion of Stage 2, and with Osmond Fowler Domain having earned an 80% Joint Venture interest,
Investigator's 20% interest will be free carried through to completion of a Pre-Feasibility Study. Once completed,
Investigator may elect to either fund further exploration and development costs on a pro-rata basis, or dilute. If
Investigator's Joint Venture dilutes to 5%, the interest will convert to a 1% net smelter return royalty.
At the date of this report Osmond Resources is yet to commence fieldwork on the Fowler Domain project and holds a
0% interest under the terms of the agreement.
(ii) DGO Gold Ltd
At the date of this report, the Company is under a Heads of Agreement with Yandan Gold Mines, a wholly-owned
subsidiary of DGO Gold Ltd for exploration on tenements EL6643, EL6642, EL6641, EL6640 and EL6402 held by
Gawler Resources Pty Ltd. DGO Gold Ltd was acquired by Gold Road Resources Ltd (ASX:GOR) in July 2022.
On 18 September 2020, Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Limited
entered into a Heads of Agreement with Yandan Gold Mines Pty Ltd (Yandan), a wholly owned subsidiary of DGO Gold
Ltd for exploration on tenements EL6643, EL6642, EL6641, EL6640 and EL6402 (Tenements) held by Gawler
Resources Pty Ltd. Under this agreement, Yandan have satisfactorily completed the expenditure of the minimum
$350,000 on exploration activities under Stage 1 Commitment.
Following the satisfactory completion of the Stage 1 Commitment, Yandan indicated its intention to progress to a 51%
joint venture by funding a further $2 million under the Stage 2 Commitment within 24 months of the completion of Stage
1 Commitment. As of 30 June 2022, Yandan has completed Stage 1 Commitment and as funded approximately $1.5
million out of the $2 million funding under Stage 2 Commitment. The funding under stage 2 is still in progress.
Upon meeting the Stage 2 Commitment, Yandan will be entitled to a 51% interest in the Tenements upon which a Joint
Venture agreement will be executed.
Upon commencement of Joint Venture, Yandan can elect to earn-in a further 29% interest in the Tenements through
completing the Stage 3 Commitment, under which Yandan must spend a further $4 million on exploration on or before
the second anniversary of the Joint Venture Commencement Date. Upon meeting the Stage 3 Commitment, an
additional 29% interest in the tenements will be transferred to Yandan for a total Joint Venture interest of 80%.
Note 32. Events after the reporting period
No matter or circumstance has arisen since 30 June 2022 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.
53
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 33. 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
Other income- value of shares issued by Osmond Ltd
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 other assets
(Decrease)/Increase in Provisions - current
(Decrease)/Increase in creditors and accruals
Consolidated
30 June
2022
$
30 June
2021
$
(4,133,905)
(1,979,310)
5,023
(231,500)
139,048
2,970,065
379
(3,189)
29,797
148,226
17,563
3,651
-
191,177
920,300
52
(2,272)
(66,290)
35,321
70,998
Net cash used in operating activities
(1,058,493)
(826,373)
Note 34. Earnings per share
Consolidated
30 June
2022
$
30 June
2021
$
Loss after income tax attributable to the owners of Investigator Resources Limited
(4,133,905)
(1,979,310)
Weighted average number of ordinary shares used in calculating basic earnings per share 1,328,055,625 1,186,699,315
Weighted average number of ordinary shares used in calculating diluted earnings per
share
1,328,055,625 1,186,699,315
Number
Number
Basic loss per share
Diluted earnings per loss
Accounting policy for earnings per share
Cents
Cents
(0.31)
(0.31)
(0.17)
(0.17)
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.
54
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 35. Share-based payments
Share based payments expense during the period is $139,048 (30 June 2021: $191,177) which relates to performance rights
and options issued to KMP and other employees of the Company.
Unlisted Options
On 1 January 2022, 2,000,000 unlisted fully vested options (exercisable at $0.097, expiring 31 December 2024) were issued
to Dr Richard Hillis, Non-Executive Chair, as part of his sign-on package.
The fair value of the options was determined as of $70,540 using the Black Scholes option pricing model using the following
inputs:
Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk-free rate %
Days to expiry
Fair value of option $
0.070
0.097
91%
0.54%
915
70,540
On 3 December 2021, the Company issued 4,000,000 fully paid ordinary shares to Canaccord Genuity on exercise of
4,000,000 unlisted options exercisable at $0.048.
Details of unlisted share options on issue to Key Management Personnel (KMP) and other employees and weighted average
exercise prices were as follows:
Outstanding at 30 June 2020
Granted / Issued
Reclassification*
Outstanding at 30 June 2021
Granted / Issued
Reclassification**
Outstanding at 30 June 2022
KMP
No. of
Options
12,000,000
2,000,000
6,000,000
20,000,000
2,000,000
(2,000,000)
20,000,000
KMP
Weighted
average
exercise
price
0.035
0.035
0.035
0.035
0.097
0.035
0.041
Employees/
Others
No. of
Options
10,000,000
-
(6,000,000)
4,000,000
-
2,000,000
6,000,000
Employees/
Others
Weighted
average
exercise
price
0.035
-
0.035
0.035
-
0.035
0.035
*
Change in classification of options due to J. Murray was identified as KMP on his appointment as the Exploration
Manager effective 1 August 2020.
** Change in classification of options due to K. Wilson resigned as Non-Executive Chair effective 1 January 2022 and
cease to be a KMP.
Performance rights
In December 2019, the Company issued 15,000,000 performance rights to Andrew McIlwain (Managing Director) vesting
upon meeting performance conditions. The fair value of the performance rights, the vesting conditions of which meet the
definition of a market condition, was determined using the Hoadley Barrier1 trinomial option valuation model. The fair value
of the performance rights the vesting conditions of which do not meet the definition of a market condition, was determined
using Hoadley ESO2 valuation model. During the year ended 30 June 2021, 5,000,000 performance rights vested upon
meeting performance conditions. The company issued 5,000,000 shares on the exercise of these performance rights at nil
exercise price.
During the year ended 31 June 2022, 4,367,050 performance rights vested upon meeting performance rights, the company
issued 4,367,050 shares on the exercise of these performance rights at nil exercise price. 632,950 performance rights expired
and were not converted to Fully Paid Ordinary Shares.
55
Investigator Resources Limited
Notes to the financial statements
30 June 2022
Note 35. Share-based payments (continued)
As at 30 June 2022, 5,000,000 performance rights remained unvested (30 June 2021: 10,000,000), the performance
conditions of which are as below:
Performance
Rights
Expiry Date
Vesting Conditions
1,666,666
31 January 2023
1,666,666
31 January 2023
1,666,666
31 January 2023
Service vesting condition: vest upon continuous service for the period to 31
December 2022.
Performance vesting condition: vest upon workplan being delivered to budget for
31 December 2022.
Share price vesting condition: vest upon target share price of $0.0550 (based on
30-day VWAP).
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.
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.
56
Investigator Resources Limited
Directors' declaration
30 June 2022
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 2022 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
___________________________
Richard Hillis
Chair
9 September 2022
57
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
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 2022, 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 2022 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 (including Independence
Standards) (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.
www.grantthornton.com.au
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‘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 Limited 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
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58
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.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets – Note 14
At 30 June 2022, the carrying value of exploration and
evaluation assets was $23,117,112.
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 that 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:
• 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 exploration licenses and
statutory registers to determine whether a right
of tenure existed;
− Enquiring management regarding their intentions
to carry out exploration and evaluation activity in
the relevant exploration area, including reviewing
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 any 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
• Reviewing 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 2022, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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.
Grant Thornton Australia Limited 2
59
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the 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 the Directors’ report for the year ended 30 June
2022.
In our opinion, the Remuneration Report of Investigator Resources Limited, for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
I S Kemp
Partner – Audit & Assurance
Adelaide, 9 September 2022
Grant Thornton Australia Limited 3
60
Investigator Resources Limited
Shareholder information
30 June 2022
The shareholder information set out below was applicable as at 26 August 2022.
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
242
353
681
2,798
1,479
5,553
1,394
Units
22,021
1,219,116
5,556,277
117,950,778
1,207,565,465
1,332,313,657
EQUITY SECURITY HOLDERS
The names of the twenty largest security holders of listed equity securities are listed below:
Twenty Largest Shareholders
Name
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES
SHIPSTERS INVESTMENTS PTY LTD
MR PETER DANIEL WILLSON
MRS LESLEY LORD
GREGMAL PROPERTY GROUP PTY LTD
RADELL PTY LTD
MR ANDREW JOHN IGO
MAPT PTY LIMITED
1
2
3
4
5
6
7
8
9
10 MACFAC PTY LTD
11
12
13
14 WILLOW GLENN PTY LIMITED
15 MR DIMITRI EMIL LAJOVIC
CLANROBBO GROUP PTY LTD
JRMA GROUP PTY LTD
BERKELEY DOWNS INVESTMENTS PTY LTD
16
MR SHANE PETER MATTERSON + MRS SHARYN ALISON MATTERSON
BNP PARIBAS NOMS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
17
18
19 MR NICHOLAS PLAYFORD FORGAN
20 MR BRIAN JOHN ANDERSON
No. of
shares
206,454,285
19,662,544
15,000,000
14,710,177
12,950,000
12,710,633
12,449,951
11,500,000
10,726,125
10,467,050
10,125,000
9,954,327
9,000,000
8,906,069
8,893,625
8,840,955
8,636,476
8,532,633
7,970,151
7,000,000
% Units
0.00
0.09
0.42
8.85
90.64
100.00
% Units
15.50
1.48
1.13
1.10
0.97
0.95
0.93
0.86
0.81
0.79
0.76
0.75
0.68
0.67
0.67
0.66
0.65
0.64
0.60
0.53
Total Top 20 Shareholders
414,490,001
31.11
The shareholder information set out below was applicable as at 26 August 2022.
Substantial Shareholders
Details of substantial shareholders are set out below:
Name
1
MERIAN GLOBAL INVESTORS (UK) LIMITED
No. of shares % Units
194,185,810
14.95%
61
Investigator Resources Limited
Shareholder information
30 June 2022
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;
(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 Wednesday, 30 November 2022.
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 Wednesday,19 October 2022. Any nominations must
be received in writing no later than 5.00pm (Melbourne time) on Wednesday, 19 October 2022 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.
62