CONTENTS
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7
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OVERVIEW
Corporate Directory
CHAIRMAN'S LETTER
OPERATIONS REPORT
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Message from the Chairman
Central Eyre Iron Project
Gawler Iron Project
13 Global Mineral Resource and Ore Reserve Statement
DIRECTORS' REPORT
14 Directors' report overview
18
Remuneration report
OPERATING AND FINANCIAL REVIEW 26 Company strategy and operating activities
FINANCIAL STATEMENTS
28
Financial statements overview
29 Consolidated Income Statement and
Statement of Comprehensive Income
30 Consolidated Statement of Financial Position
31 Consolidated Statement of Changes in Equity
32 Consolidated Statement of Cash Flows
33 Notes to the consolidated financial statements
SIGNED STATEMENTS
53 Directors' declaration
54
Independent auditor's report
ASX INFORMATION
60
ASX Additional Information
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MESSAGE FROM THE CHAIRMAN
Dear Shareholder
On behalf of the Board, I am pleased to present the Annual
Report for the year ended 30 June 2022.
Extreme volatility in global steel and iron ore market conditions
has been a dominant feature over the past 18 months. This
volatility has impacted the earnings profile and outlook for
producers and resulted in polarising sentiment toward project
developers alike. Over the course of this period extending
into September 2022, iron ore pricing benchmarks rallied to
and subsequently retraced more than 50% from all-time highs
recorded in both nominal and real terms.
After initial and broad-based COVID-19 stimulus measures in
China delivered a sharp recovery and boost to overall market
conditions, protracted and re-occurring lockdowns have
weighed heavily on Chinese economic activity and related
steel consumption. Unsurprisingly, China’s GDP growth has
continued to fall short of government targets with decreasing
rates of crude steel production pressuring iron ore prices lower
since the 2021 record highs. The world ex-China has similarly
recorded a contraction in crude steel production more recently
as global economic conditions have deteriorated.
Although volatile and adverse market conditions have
contributed to the Company not achieving satisfactory
outcomes relating to its key objectives through the financial
year, both the Board and Management remain committed
to crystallising appropriate value from our asset base. The
positive counterpoint to a high-barriers-to-entry industry is the
dearth of credible and high-quality advanced development
projects globally in lower risk jurisdictions. Your Company
retains conviction that the Central Eyre Iron Project possesses
the requisite attributes that will ultimately attract, on acceptable
terms, an incumbent producer and/or a steel producer wanting
to strategically address real and enduring feedstock security of
supply concerns.
Specifically related to wider infrastructure business
opportunities, our Cape Hardy Stage I (grain-led) port
development proposal with partners Eyre Peninsula
Cooperative Bulk Handling (EPCBH) and Macquarie Capital
was unable to make commercial headway during the year.
However, strong underlying grower and wider stakeholder
support remains entrenched for a multi-commodity, multi-user
port at Cape Hardy that will underpin diverse regional growth
opportunities for Eyre Peninsula communities. Complementary
to the Central Eyre Iron Project, a parallel Cape Hardy related
focus for Iron Road has been the early validation of market
interest in the longer-term development of Cape Hardy as a
green hydrogen hub and industrial precinct.
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Assisted by our green hydrogen specialist advisor, WSP
Australia, a shortlist of 10 domestic and international
proponents have requested to partake in a competitive
Expression of Interest phase that is targeted to close during
4Q CY2022, with the successful proponent or consortium
of proponents expected to enter preliminary commercial
arrangements with the Company. Global energy market
insecurity, particularly in Europe, has driven increased levels
of Cape Hardy related interest, with the parties primarily
comprising globally significant players in the power generation
business and emerging energy transition groups with a focus on
harnessing quality renewable energy resources.
I thank you, my fellow shareholders for your ongoing support
as we augment relentless endeavour with pragmatism and
flexibility to realise positive outcomes associated with your
Company’s large-scale and long-life assets of national
significance.
Peter Cassidy
Chairman
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OPERATIONS REPORT
Central Eyre Iron Project (CEIP, IRD 100%)
Wudinna
Long term
employee village
Kyancutta
Warramboo
Ceduna
Streaky Bay
Streaky Bay
Infrastructure
corridor
Kimba
Poochera
Minnipa
Central Eyre
Central Eyre
Iron Project
Iron Project
Wudinna
Kimba
Warramboo
Port Augusta
Whyalla
Port Pirie
Borefield
Lock
Power
transmission line
Elliston
Lock
Rudall
Yadnarie
Rudall
Tooligie
Cowell
W AY
Cleve
H
H I G
O L N
C
LI N
Port Neill
Moonta
Cummins
Tumby Bay
Cape Hardy
Port Precinct
SPENCER GULF
Port Lincoln
Karkoo
Highway
Exploration Licence
Mining Lease
Infrastructure corridor
Borefield
Power transmission
line
Yeelanna
Kapinnie
Cape Hardy
Port Precinct
Port Neill
0
5
10
Kilometres
0
50
100
Kilometres
Adelaide
SA 01
Location of the CEIP, showing the mine, infrastructure corridor and port
The CEIP is situated on the Eyre Peninsula, South Australia.
The proposed mine at Warramboo is located approximately
30 kilometres southeast of the regional centre of Wudinna
and the proposed port, seven kilometres south of Port Neill at
Cape Hardy. The mine and port are planned to be linked by an
infrastructure corridor with road haulage the preferred method
for iron concentrate transport. The corridor includes a power
line and water pipeline over part of its length.
The beneficiation plant located at the mine will produce a high
quality, low impurity iron concentrate that will serve as a clean,
superior blending product for steel mill customers. Production of
12Mtpa of 67% iron concentrate is projected over an initial mine
life of 22 years. The lower capital, 12Mtpa production strategy
demonstrates the potential for highly competitive operating
margins (See ASX announcement Revised CEIP Development
Strategy dated 25 February 2019). Hosting Australia’s largest
magnetite Ore Reserve with a Definitive Feasibility Study (DFS)
and post-DFS optimisation studies complete, the CEIP will
be an intergenerational asset producing consistent premium
quality, high-grade iron concentrate over many decades.
Iron Road’s key focus continues to centre on patient and
productive CEIP engagement with potential strategic partners.
Proposals that offer shareholders value with respect to the
quality and advanced status of the Company’s asset base
continue to be evaluated.
A well understood feature of the high barriers to entry iron ore
industry is the scarcity of credibly advanced, high product
grade, greenfield development opportunities globally. This
thematic continues to provide fundamental support for
development prospects of the CEIP irrespective of short-term
volatility in iron ore prices. The Wood Mackenzie June 2022
chart on the following page categorises the project pipeline
according to expected product grade, post-tax Internal Rate
of Return (IRR) and annual nameplate design capacity (relative
circle sizes). In conjunction with each project’s respective
(internal) CAPEX and OPEX estimates, Wood Mackenzie’s
base case iron ore price forecasts and associated premiums or
discounts that apply respectively to products above or below
the reference 62% Fe grade for Sinter Fines, underpin the IRR
metrics shown.
OPERATIONS REPORT
Wood Mackenzie Global Iron Ore Project Pipeline - June 2022
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Notes:
Blue/orange circles denote advanced project status (ie. construction phase or BFS/DFS completed). Dotted circles denote
projects at PFS or scoping study stage.
Central Eyre data sourced from Iron Road’s post DFS and subsequent optimisation studies ASX announcement – “Revised
CEIP development strategy reduces project CAPEX requirements by 56%”, 25 February 2019. Iron Road 2018-19 data
escalated to real terms in-line with CPI.
IRR calculated using Wood Mackenzie’s Q2 2022 price forecasts.
Importantly, as per the notes above, Wood Mackenzie
differentiate projects that are either under construction or well
advanced from the remaining balance of earlier stage projects
that in total, comprise their view of the global project pipeline.
The depth of project work undertaken and the de-risked
aspects of the CEIP in comparison with peer project developers
in Australia is evidenced by capitalised exploration and
evaluation expenditure on the Company’s balance sheet as of
30 June 2022 (audited value of $123.1 million). An additional
$10.6 million of capitalised property, plant and equipment
primarily relates to circa 1,200 hectares of strategic port
precinct land situated at Cape Hardy. In total, approximately
$180 million (nominal terms) has been expended to date by the
Company.
The following attributes of the CEIP are identified as the key
value drivers for potential strategic partners, particularly in the
context of targeting a credible timeframe to Financial Close,
commencing construction and ultimately exporting high-
grade, low impurity iron concentrate. Iron Road’s development
experience is in line with that of industry more widely. Obtaining
regulatory approvals and concluding Native Title Agreements
is a key differentiator. For all greenfield projects, these are
resource intensive and time-consuming processes that in
many instances may add unexpected challenges and result in
significant delays to project delivery timeframes.
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6
OPERATIONS REPORT
Key CEIP Value Driver
Characteristics
Geology
Largest magnetite Ore Reserve in Australia
Well understood magnetite gneiss orebody
Mine life capable of delivering 589Mt of premium 66.7% Fe concentrate at P80 106µm
478 diamond drill holes (160,025m) & 22 RC drill holes (3,208m), 42,680 XRF iron ore suite
assays, 7,928 DTR tests, 609 QEMSCAN
Very coarse-grained texture (1.5mm average magnetite
grain size)
Low processing risk vs. very hard, fine-grained WA banded iron formation magnetite;
significant material handling advantages
Metallurgy
Low impurities and low variability across orebody
Negligible S & P, SiO2 & Al2O3 easily separated; uniform mineralogy
60% waste rejection at front end of process plant
Offsets relatively low in-situ Fe grade & simplifies downstream beneficiation
Flowsheet validation
Independently verified; 12Mtpa, 21.5Mtpa and 24Mtpa scenarios provide optionality
Ancillaries and Port site
Access to groundwater, power upgrades, port
Strategic and natural deep-water port site presents minimal impacts
Approvals and Native Title
State and Federal Government Primary Approvals &
wider stakeholder support
Mineral Lease & Development Approval granted for 21.5Mtpa operation; Federal EPBC
approval; local govt. & community support
Indigenous Land Use Agreement (ILUA)
Mine site, infrastructure corridor and port (landside & gulfside) with the Barngarla traditional
owners; export royalty regime agreed
The financial model shared with those potential strategic partners engaging formally with Iron Road reflects the lower capital 12Mtpa
CEIP delivery model. Iron ore price assumptions underpinning the projected commercial returns in the matrix below are for high-
grade 65% Fe Fines CFR China. Iron Road’s modelling assumes the 65% Fe Fines CFR China index will trade at a circa long-run
15-20% average premium to benchmark 62% Fe Fines CFR China.
CEIP – key metrics and economics
Preferred Lower Capital, Lower Risk 12Mtpa CEIP Delivery Model
Operating Parameters
Concentrate production (dry)
Concentrate grade
Life of Mine
Life of Mine concentrate (dry)
Strip ratio
Mean power demand
Financial Metrics
12Mtpa
Capital Cost
Capital intensity
FOB operating cost
1 ex state royalty and sustaining capex
66.7% Fe
22 years
250Mt
0.97:1
167MW
US$1.74 billion
US$134/wmt
US$44.50/wmt1
IRR and NPV10 Sensitivity at Financial Close2
High Grade 65% Iron Index Price
(US$/dmt)
90
100
110
120
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0.717
0.750
0.800
25.0% / US$949M
33.5% / US$1.68B
40.8% / US$2.41B
47.5% / US$3.13B
22.1% / US$761M
30.8% / US$1.49B
38.2% / US$2.22B
44.8% / US$2.95B
17.7% / US$473M
26.8% / US$1.21B
34.3% / US$1.94B
41.0% / US$2.66B
2 geared, post-tax IRR and NPV10 at financial close, tax rate of 30%
Refer to ASX announcement “Revised CEIP Development Strategy Reduces Project Capex Requirements by 56%” on 25 February 2019
Of significance, the 12Mtpa delivery model and associated economic metrics are representative of a “first phase” cumulative Life of
Mine output of 250Mt 66.7% Fe concentrate. This lower capital “first phase” represents less than 50% of the 589Mt of high-grade
product the Warramboo orebodies can deliver (estimated primarily from the Ore Reserve), which signals asset valuation upside
compared with the projected returns in the previous table.
State and Federal Government Primary Approvals already received for a 21.5Mtpa CEIP operation provides Iron Road and a
preferred strategic industry partner with the flexibility and optionality on the ultimate financing and development strategy.
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OPERATIONS REPORT
Gawler Iron Project (GIP, IRD 90-100% iron ore rights)
The Gawler Iron Project (GIP) is located approximately 25km north of the standard gauge Trans-Australian Railway that connects
to the Central Australia Railway at Tarcoola. The GIP hosts mineralisation anticipated to support a small to medium scale hematite /
magnetite iron ore mining operation with the potential to produce a quality iron ore using a simple beneficiation process.
The GIP comprises several magnetite occurrences outcropping at surface, one of which is proven to encompass a significant
oxidised (hematite) cap. This prospect and another have been systematically RC / diamond drilled (105 drillholes in total) and
undergone mineralogical analysis and metallurgical test work.
300,000mE
400,000mE
500,000mE
IRD 100% Iron Ore Rights
IRD 90% Iron Ore Rights
Coober Pedy
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EL5998
EL5767
EL6569
EL6569
EL6502
Challenger Mine
Commonwealth Hill
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EL6012
EL6012
EL6012
EL6502
EL6502
EL6173
EL6532
EL6532
EL6173
TRANS A UST R A L I A N
RAILWAY
Wynbring
6,600,000mN
0
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50
Kilometres
Tarcoola
Location of Gawler tenements
Drilling at NW Fingerpost Hill, 2010
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OPERATIONS REPORT
Iron Ore Market
In Q2 CY2022, 62% Fe Fines averaged circa US$138/dmt with
the high-grade 65% Fe index averaging approximately US$161/
dmt. To be sure, this price performance reflected still robust
underlying fundamentals for the sector despite these index
averages both declining 31% year-on-year compared with the
historical records for Q2 CY2021 (US$200/dmt and US$233/
dmt respectively).
At a May 2022 Global Metals, Mining & Steel Conference, Vale
S.A., the industry’s highest grade iron ore producer amongst
top global suppliers, noted that underestimated supply-side
restrictions were a major contributing factor leading to market
consensus iron ore price forecasts consistently falling short of
actual commodity price performance.
Notwithstanding demand-side challenges materialising from the
latter part of Q2 CY2022, Vale’s analysis indicated that 2022 is
likely to be the 7th consecutive year (2016-2022 inclusive) where
market analysts’ median iron ore price forecast (1-year forward
looking) will be lower than the subsequent average yearly price
realised.
Mine depletion rates (orebody replacement and declining
grades), complex licensing processes requiring adherence
to stringent Environmental, Social and Governance (ESG)
standards, careful traditional landowner engagement and
continued industry capital discipline are critical industry factors
that will likely provide fundamental support for enduring
constraints on the supply-side.
Green Hydrogen /
Green Manufacturing Planning
Iron Road has developed, with the aid of experienced industry
consultants, documentation for an initial market sounding and
a later formal Expression of Interest (EoI) for the potential future
development of Cape Hardy as a green hydrogen hub and
industrial precinct. This development is complementary to the
already well-established designs for the CEIP iron concentrate
handling at the port and preliminary designs for grain handling
and storage facilities.
During March 2022 and at the request of the South Australian
Department for Energy and Mining (DEM), Iron Road hosted a
visit to Cape Hardy that included Mr. Martijn Coopman, Program
Manager International Hydrogen Supply Chains for the Port
of Rotterdam Authority, to showcase the site and outline Iron
Road’s aspirations and concept plan for the hub and precinct.
During late May 2022 Iron Road engaged WSP Australia to
commence a market sounding process to gauge commercial
interest in the development of Cape Hardy as a green hydrogen
hub and industrial precinct. The technical support and
extensive market reach of WSP Australia was employed to
target a shortlist of domestic and international green hydrogen
proponents and associated entities. Both WSP Australia and the
South Australian Government have recognised Cape Hardy as a
credible, future green hydrogen production hub.
The Company’s market sounding process was well timed with
respect to the Australian Hydrogen Conference, held during
31 May – 1 June 2022 in Adelaide, which attracted more than
700 delegates. Strong South Australian government support
for Cape Hardy was evident with the Premier, Hon Peter
Malinauskas MP referring to Cape Hardy in his opening address
with introductions facilitated by representatives from the
Department for Energy and Mining (DEM). These introductions
were further strengthened at the Australia Japan Business
Co-operation Committee (AJBCC) dinner attended by the
Company’s General Manager and CEO at the invitation of the
Department for Trade & Investment (DTI).
Projected Iron ore volumes depletion (2021 -2030) - Mt
Iron ore volumes depletion (2021 - 2030) - Mt
277
473
83
Total
Australia
Brazil
Source: Vale and PWC Mine 2021 Report
~30% of current
seaborne supply
66
China
47
Others
OPERATIONS REPORT
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Iron Road's Principal Advisor-Stakeholder Engagement, Tim Scholz (second left) with Richard Day, Director Strategy, Policy and Communications, Growth and
Low Carbon Division, DEM, Saindhav Tamhane, Program Manager Hydrogen, DEM (far left) and Martijn Coopman, Program Manager International Hydrogen
Supply Chains, Port of Rotterdam (far right) at the 1,200ha Cape Hardy port precinct on Eyre Peninsula, South Australia.
Late in July 2022 Iron Road advised that the Company had
concluded the market sounding process gauging commercial
interest in the longer-term development of Cape Hardy as
a green hydrogen hub and industrial precinct. As a result,
ten domestic and international green hydrogen proponents
requested to partake in the Company’s formal EoI process
following the execution of non-disclosure agreements and
access to relevant Cape Hardy data room material. Interested
parties primarily comprise globally significant players in the
power generation business and emerging energy transition
groups with a focus on harnessing quality renewable energy
resources for green hydrogen production. The competitive EoI
phase is targeted to close later this year, with the successful
proponent or consortium of proponents expected to enter into
preliminary commercial arrangements with Iron Road. The EoI
phase will still be accessible to other proponents who may not
have participated in this market sounding process.
In addition to the strategic physical attributes of Cape Hardy,
Iron Road has primary development approval for the port site
as a high-grade iron concentrate and multi-commodity export
facility. The CEIP, including the proposed logistics chain, may
ultimately provide offtake for hydrogen and derivative products.
In addition, value-adding opportunities such as green pellet
and/or green steel production would also benefit from a longer-
term hydrogen development at Cape Hardy.
Australian Hydrogen Conference – Australia Japan Business Co-operation
Committee (AJBCC) dinner 1 June 2022 (Photo: DTI, SA Government)
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OPERATIONS REPORT
Cape Hardy Stage I port proposal
Iron Road, Eyre Peninsula Co-operative Bulk Handling
(EPCBH) and Macquarie Capital (Macquarie) are parties to a
September 2020 Joint Development Agreement (JDA) based
on advancement of the originally proposed Cape Hardy Stage I
multi-user, multi-commodity (grain-led) port facility.
During November 2021, Portalis (the proposed partnership)
provided an update on the grain-led Cape Hardy Stage I
port development. Informed by grower feedback, Portalis
confirmed that the joint developers consider alternative
development pathways. As a logical medium and long-term
freight advantaged location for Eyre Peninsula grain exports,
investigations continue into the optimal business case for grain
handling, storage and export facilities at Cape Hardy. Short-
term activities centre on monitoring of existing supply chain
/ logistics performance associated with the current harvest.
With Iron Road having incurred significant expenditure to date
relating to JDA activities, both EPCBH and Macquarie are
understanding of Iron Road’s primary ongoing focus on both
the CEIP and Cape Hardy green hydrogen hub / industrial
precinct proposal.
Infrastructure Australia’s February 2022 Infrastructure Priority
List noted the Federal Government’s $25 million commitment
towards developing and constructing the Cape Hardy port
that will ultimately bring together agriculture, mining, green
hydrogen, green manufacturing and indigenous business into a
multi-user, multi-commodity manufacturing and export hub in
South Australia.
Eyre Peninsula Power Upgrade
As a large-scale, long-life proposed mining and beneficiation
operation, the Company’s CEIP will be a significant consumer
of power and a stable demand anchor located at the south-
western end of the National Electricity Market (NEM). This
presents a clear opportunity for development proponents of
proximate, low-cost renewable energy resources on the Eyre
Peninsula with a viable connection to an upgraded grid that
further supports take-up of low carbon emission generation into
the NEM.
ElectraNet’s Eyre Peninsula link, the upgraded HV transmission
line from Cultana to Port Lincoln is well underway, with
energisation anticipated by the end of 2022. This provides
significant new connection potential for the CEIP or other
regional developments in the central Eyre, including the
proposed Cape Hardy Green Hydrogen hub, noting that any
development at scale will require substantial augmentation.
The Eyre Peninsula Link comprises a new 270 kilometre, high-voltage
transmission line to be constructed from Cultana to Port Lincoln, via Yadnarie
(Image- Electranet)
OPERATIONS REPORT
Dawn Taylor, BDAC board member, Larry Ingle, CEO Iron Road and Jason
Bilney, BDAC Chair at the Barngarla community authorisation meeting,
Whyalla Norrie, 25 September 2021.
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CEIP Indigenous Land Use Agreement
(ILUA)
Following an extended period of collaboration and negotiations,
the parties to the CEIP ILUA executed a Deed of Novation
and Variation of the CEIP ILUA. The parties involved are Iron
Road, Barngarla Determination Aboriginal Corporation (BDAC),
Barngarla Aboriginal Corporation (BAC), South Australian
Native Title Services Ltd (SANTS) and the South Australian
Government. An application was submitted to the Native Title
Registrar late in 2021 to register the amended CEIP ILUA in
the Register of Indigenous Land Use Agreements. This will
give effect to the agreement pursuant to the Native Title Act
1993 (Cth), which, among other things, includes native title
consents for the CEIP, including the proposed Cape Hardy port.
Registration is now complete.
Amendments build on and broaden commercial arrangements
with the Barngarla that reflect multiple opportunities associated
with the proposed Cape Hardy port precinct. An industry
competitive royalty arrangement set at a universal rate per
tonne will apply equivalently to bulk commodities, including
high-grade iron concentrate and other minerals, as well as grain
and green hydrogen / ammonia export over the life of the asset.
These royalty arrangements incorporate escalation mitigating
features. Other arrangements include a Barngarla educational
scholarship fund and associated administration plan, along with
indigenous business contracting and employment opportunity
provisions. Flexibility has now been embedded into the location
of the CEIP infrastructure corridor to enable an optimised mine
to port haulage route and allows for more efficient grain logistics
opportunities across the Eyre Peninsula.
Map illustrating the CEIP ILUA area
IRON ROADANNUAL REPORT 2022OVERVIEWCHAIRMAN'S LETTEROPERATIONS REPORTOPERATING AND FINANCIAL REVIEWFINANCIAL STATEMENTSDIRECTORS' REPORTSIGNED REPORTSASX INFORMATION12345678Malgra (CP)Lipson Island (CP)Hincks (CP)CaralueBluff (CP)Barwell (CP)DarkeRange (CP)MoodyTank (CP)Carappee Hill (CP)Rudall(CP)VerranTanks (CP)Wharminda(CP)BascombeWell (CP)Poolgarra(CR)Cortlinye (CR)Cunyarie (CR)Mootra (CR)Peachna(CP)Shannon(CP)Pinkawillinie(CP)Hambidge (WA)Hincks (WA)PinkawillinieReservoir (CR)Lacroma (CR)Tola (CR)Corrobinnie Hill (CP)Cocata (CP)BirdseyeHighwayBirdseyeHighwayEyreHighwayTodHighwayEyreHighwayFlinders HighwayTod HighwayLincolnHighwayInfrastructure Corridor PowerlineArea 5Offshore Operating AreaArea 3Long Term Employee VillageArea 2Mining Lease BoundaryArea 1Onshore Port Development AreaArea 4Borefield AreaArea 6Infrastructure CorridorArea 6Infrastructure CorridorWudinnaKimbaPort NeillCumminsLockKyancuttaRudallCleveSurrender AreaCR Vol 5763 Fol 258Excluded AreaCR Vol 5763 Fol 257OOA-1OOA-6IC-23IC-1PL-13PL-1Surrender AreasCR Vol 5767 Fol 510CR Vol 5767 Fol 511CR Vol 5755 Fol 175CR Vol 5755 Fol 176Excluded AreasCR Vol 5767 Fol 508CR Vol 5767 Fol 509CR Vol 5767 Fol 513CR Vol 5755 Fol 177Surrender AreaCR Vol 5768 Fol 621Excluded AreaCR Vol 5772 Fol 864CR Vol 5773 Fol 876635000063400006330000632000063100006300000629000062800006270000626000062500006240000623000062200006210000635000063400006330000632000063100006300000629000062800006270000626000062500006240000623000062200006210000630000620000610000600000590000580000570000560000550000540000630000620000610000600000590000580000570000560000550000540000LegendTownCoordinate PointsMain RoadILUA AreaILUA Area: Area Beyond Intertidal AreaILUA Area: Surrender AreaConservation Park01020kmINDIGENOUS LAND USEAGREEMENTBarngarla Central Eyre Iron ProjectGDA 1994 MGA Zone 53
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OPERATIONS REPORT
Surveying of control point at Cape Hardy
Community & Stakeholder Engagement
Iron Road engaged directly with various South Australian
state government agencies and the CEIP Taskforce, which
includes representatives from Department of Energy and Mines
(DEM), as well as independent advisors. The Company also
continued close engagement with the Department for Trade and
Investment (DTI) and Austrade representatives within Australia
and Asia.
Iron Road maintains regular contact with the Federal
Government’s Department of Infrastructure, Transport, Regional
Development and Communications given the Commonwealth’s
$25 million commitment towards developing and constructing
the proposed Cape Hardy port.
Corporate
On 16 December 2021 Iron Road announced a placement of
ordinary shares in the Company (Shares) raising up to $5 million
for an aggregate subscription of up to $5.175 million. Proceeds
from the placement, along with existing cash reserves, are to
be used to further advance the Company’s assets and fund
general working capital requirements.
The placement involves up to three investments by Bulk
Commodity Holdings, LLC (the Investor), a US-based
institutional investor, with each investment being made by way
of a prepayment of Shares (Subscription Shares) to be issued
by the Company. The initial investment raised $1,250,000
for $1,337,500 worth of Subscription Shares and the second
investment will raise $1,250,000 for $1,337,500 worth of
Subscription Shares. The second investment was triggered,
following exercise of an option by the Company, with funds
expected to be received from October 2022. A third investment
raising up to $2,500,000 may be conducted by mutual consent
of the Investor and the Company.
The bespoke terms of the placement effectively defer the
issuance of Shares to the Investor across three separate
investments and are specifically targeted to minimise the
dilutionary impact for current IRD shareholders. Further details
are available in ASX Release of 6 December 2021.
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Global mineral resource and ore reserves statement
Table 1: CEIP Ore Reserve Summary 2020 and 2021
Resource Classification
Proved
Probable
Total
Metric Tonnes
(Mt)
2,131
1,550
3,681
Fe
(%)
15.55
14.40
15.07
SiO2
(%)
53.78
53.58
53.70
Al2O3
(%)
12.85
12.64
12.76
The Ore Reserves estimated for CEIP, involving mine planning, is based on and fairly represents information and supporting
documentation compiled by Mr Bob McCarthy, a Member of the Association of Professional Engineers and Geoscientists of British
Columbia (Canada) and a full-time employee of SRK Consulting (North America). Mr McCarthy has sufficient experience relevant to
the style of mineralisation and the type of deposits under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves”. Mr McCarthy consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears. The Ore Reserves estimated for the CEIP involving aspects other than mine planning is based on and fairly represents
information and supporting documentation compiled by Mr Larry Ingle, a Member of the Australian Institute of Mining and Metallurgy
and a full-time employee of Iron Road Limited. Mr Ingle has sufficient experience relevant to the style of mineralisation and the type of
deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Ingle consents to the inclusion
in the report of the matters based on his information in the form and context in which it appears. This report includes results that have
previously been released under JORC 2012 by the Company on 2 May 2016. The Company is not aware of any new information or data
that materially affects the information included in this announcement and all material assumptions and technical parameters underpinning
the Ore Reserve continue to apply and have not materially changed.
Table 2: CEIP Global Mineral Resource 2020 and 2021
Location
Classification
Murphy South/Rob Roy
Boo-Loo/Dolphin
Total
Measured
Indicated
Inferred
Indicated
Inferred
Tonnes
(Mt)
Fe
(%)
2,222
15.69
474
15.6
667
796
351
4,510
16
16.0
17
16
SiO2
(%)
53.70
53.7
53
53.3
53
53
Al2O3
(%)
12.84
12.8
12
12.2
12
13
P
(%)
0.08
0.08
0.08
0.07
0.09
0.08
LOI
(%)
4.5
4.5
4.3
0.6
0.7
3.5
The Murphy South/Rob Roy Mineral Resource estimate was carried out following the guidelines of the JORC Code (2004) by Iron
Road Limited and peer reviewed by Xstract Mining Consultants. The Murphy South - Boo-Loo/Dolphin oxide and transition Resource
estimate was carried out following the guidelines of the JORC Code (2004) by Coffey Mining Limited. The Boo-Loo/Dolphin fresh Mineral
Resource estimate was carried out following the guidelines of the JORC Code (2012) by Iron Road Limited and peer reviewed by AMC
Consultants. This report includes results that have previously been released under JORC 2004 and JORC 2012 by the Company on 30
June 2010, 28 May 2013 and 27 February 2015. The Company is not aware of any new information or data that materially affects the
information included in these announcements and all material assumptions and technical parameters underpinning the Mineral Resource
continue to apply and have not materially changed.
Table 3: CEIP Indicative Concentrate Specification – 106 micron (p80)*
Iron (Fe)
66.7%
Silica (SiO2)
3.36%
Alumina (Al2O3)
1.90%
Phosphorous (P)
0.009%
* The concentrate specifications given here are based on current data from metallurgical test work, bulk samples and simulation modelling designed
specifically to emulate the proposed beneficiation plant.
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Throughout this report, the consolidated entity is referred to
as the Group.
Events since the end
of the financial year
No matters or circumstances have arisen since 30 June 2022
that have significantly affected the Group’s operations, results
or state of affairs.
Likely developments and
expected results of operations
Likely developments in the operations of the Group and
expected results of these operations in future financial years
have been included in the Operating and Financial Review.
Environmental regulation
The Group’s operations are subject to environmental regulation
of exploration activities on its mineral tenements. No on-
ground exploration or other exploration activity was undertaken
during the financial year and there were no breaches of any
environmental requirements. The Group’s proposed CEIP
Infrastructure is subject to the Environment Protection and
Biodiversity Conservation Act 1999 (Cth) as this element of
the Project was declared a ‘Controlled Action’ on 26 August
2014. The Group has reviewed its energy consumption and
greenhouse gas emissions for the reporting year, with both
found to be below the reporting threshold as specified within
the National Greenhouse and Energy Reporting Act 2007 (Cth)
(NGER).
Directors and Company Secretary
The following persons were directors of Iron Road Ltd during the
whole of the financial year and up to the date of this report:
Peter Cassidy
Jerry Ellis AO
Ian Hume
Glen Chipman
Jaroslaw Kopias – Company Secretary
Principal activities
The principal activity of the Group during the year was the
exploration and evaluation of the Group’s iron ore interests at
the Central Eyre Iron Project (CEIP) in South Australia including
pursuit of the Cape Hardy Stage I multi-user, multi-commodity
port facility and other long-term business development
opportunities associated with the Cape Hardy port site.
Dividends
No dividends were paid, declared or recommended during
the year ended 30 June 2022.
Corporate governance statement
Iron Road Ltd and the Board are committed to achieving and
demonstrating high standards of corporate governance. Iron
Road’s corporate governance statement was approved by the
Board and can be viewed at www.ironroadlimited.com.au/
index.php/about-us/corporate-governance.
Review of operations
Information on the operations and financial position of the
Group and its business strategies and prospects is set out in
the review of operations and activities on page 26 of this report.
Significant changes
in the state of affairs
There were no significant changes in the state of affairs of the
Group during the financial year.
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DIRECTORS' REPORT
Peter Cassidy
CHAIRMAN
Jerry Ellis AO
NON-EXECUTIVE DIRECTOR
Dr Cassidy has been an international private capital
investor since the 1990’s. He holds a degree
in geology and a first class honours degree in
chemistry from the University of Tasmania and a
PhD in coal science from Monash University.
No other directorships of listed companies have
been held in the last three years.
Mr Ellis has had a long and distinguished career
in business, particularly in the resources sector.
Mr Ellis’ career includes three decades at BHP,
chairing the company from 1997 to 1999. He
also served on the boards of a number of listed
companies and governing bodies including
Newcrest Mining, Aurora Gold, the International
Copper Association, Australia and New Zealand
Banking Group, the International Council on Metals
and the Environment and the American Mining
Congress.
In September 2020 Mr Ellis was appointed
Chairman of North Stawell Minerals (ASX:NSM).
Mr Ellis is the former Chairman of Alzheimers
Australia (NSW), former Chancellor of Monash
University, former President of the Minerals Council
of Australia and former Chairman of the Australia-
Japan Foundation and the Australian National
Occupational Health and Safety Commission.
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Ian Hume
NON-EXECUTIVE DIRECTOR
Glen Chipman
EXECUTIVE DIRECTOR
Mr Hume's career in the resources industry
stretches back several decades, primarily in
the fields of managed fund investments, capital
raising and project development. Mr Hume
was a Founding Partner of The Sentient Group,
a manager of closed end private equity funds
specialising in global investments in the natural
resource industries.
Prior to the founding of The Sentient Group, Mr
Hume was a consultant to AMP’s Private Capital
Division.
In the three years immediately prior to the end of
the financial year, Mr Hume served as a director of
the following companies:
» Golden Minerals Company
» African Energy Resources Limited*
* denotes current directorship
Mr Chipman has been engaged with Iron Road
since 2013 across commercial, strategy, project
optimisation, investor relations and capital raising.
He was appointed Executive Director in November
2019 having joined the board as a non-executive
director in March 2018.
Mr Chipman has a chemical engineering
background and more than 20 years of combined
industry, mineral economics and equity capital
markets experience including with Bank of
America Merrill Lynch, Citi and Iron Road’s major
shareholder, the Sentient Global Resources Funds.
Within the three years immediately prior to the
end of the financial year, Mr Chipman served as a
director of Brazilian high grade iron ore producer
Ferrous Resources Limited. On 1 August 2019, Mr
Chipman resigned his directorship from Ferrous
following its acquisition by Vale S.A.
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DIRECTORS' REPORT
Remuneration report
Meetings of directors
There were three board meetings held during the year ended
30 June 2021 with attendance as follows:
Unissued ordinary shares of the Company subject to vesting
and exercise of unquoted performance rights at the date of this
report are:
Peter Cassidy
Jerry Ellis AO
Ian Hume
Glen Chipman
0
1
2
3
Board meeting attendance
Unissued Shares Under Option
Unissued ordinary shares of the Company subject to vesting
and exercise of unquoted options (warrants) at the date of this
report are:
Date Rights
Granted
KPI
Vesting
Expiry Date
Number
of Rights
24 November 2020 24 November 2020
31 December 2023
2,601,000
24 November 2020 19 February 2021
31 December 2025
5,000,000
15 March 2021
31 December 2021
31 December 2024
1,650,000
24 August 2021
31 December 2021
31 December 2024
1,080,000
10,331,000
On 24 August 2021 4,050,000 unvested performance rights
were granted to Glen Chipman, Executive Director, following
approval by shareholders. Of these, 1,080,000 have vested but
have not been exercised with the balance of 2,970,000 lapsing
during the year.
These options and rights do not entitle the holders to participate
in any share issue of the Company or any other body corporate.
Grant date
Estimated
expiry date
Exercise
price
Number
of options
9 October 2020
31 December 2025
$0.07376
25,000,000
9 October 2020
31 December 2025
$0.07376
15,000,000
Remuneration report
The directors present the Iron Road Ltd 2022 remuneration
report, outlining key aspects of the remuneration policy and
framework and the remuneration awarded during the year.
40,000,000
The report is structured as follows:
In September 2020 Iron Road, Macquarie Capital and Eyre
Peninsula Co-operative Bulk Handling (EPCBH) entered
into a Joint Development Agreement (JDA) to progress the
Cape Hardy Stage I port development. The terms of the JDA
included the issuance of 40 million unlisted Iron Road warrants
to Macquarie during the period with vesting contingent on
Financial Close and Commercial Operations being achieved
for the Cape Hardy Stage I port. An initial 25 million tranche
is exercisable from Financial Close with the second 15 million
tranche exercisable from the Commercial Operations Date
(COD). All warrants provide the holder with a right to acquire
shares in Iron Road and have an exercise price of $0.07376.
This exercise price is broadly equivalent to Iron Road’s
October 2018 entitlement offer price reflecting the Company’s
last capital raise prior to the JDA with the warrants expiring 24
months post COD.
a) Key management personnel (KMP)
covered in this report
b) Remuneration policy and link to performance
c) Elements of remuneration
d) Remuneration expenses for executive KMP
e)
Contractual arrangements for executive KMP
f)
Non-executive director arrangements
g) Additional statutory information
a) Key management personnel
covered in this report
Executive and Non-executive directors:
Peter Cassidy – Chairman
Jerry Ellis AO – Non-executive Director
Ian Hume – Non-executive Director
Glen Chipman – Executive Director
Other key management personnel:
Larry Ingle – Chief Executive Officer
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b) Remuneration policy
and link to performance
The remuneration policy of Iron Road Ltd has been designed
to align director and executive objectives with shareholder
and business objectives by providing a fixed remuneration
component and offering specific long term incentives based on
key performance areas. The Board of Iron Road Ltd believes
the remuneration policy is appropriate and effective in its ability
to attract and retain high calibre executives and directors to
manage the Group.
The remuneration policy, detailing the terms and conditions
for the Chief Executive Officer and other senior executives,
was developed by the Board. All executives receive a base
salary (which is determined by factors such as skills and
relevant experience) and superannuation. The Board reviews
executive packages annually by reference to the Group’s
results, executive performance and relevant information on
prevailing remuneration practices across the resources sector
for comparable roles within other listed organisations.
The Group has in place a Performance Share Plan and a Share
Option Plan which form part of the Group’s remuneration policy
and provides the Group with a mechanism for driving long term
performance for shareholders and the retention of executives.
The Board has the discretion to issue shares or rights to
acquire shares and offers may be subject to performance
criteria consistent with the Group’s key strategic objectives.
The plan is administered by the Board which has the discretion
to determine which persons are eligible to participate in the
plan. Additional information on these plans is contained in
section c).
In the event of serious misconduct or a material misstatement
in the Group’s financial statements, the Board can cancel or
defer performance-based remuneration and may also claw
back performance-based remuneration paid in previous
financial years.
Directors, executives and other employees receive a
superannuation guarantee contribution required by the
government and do not receive any other retirement benefits.
Some individuals, however, may choose to sacrifice part of
their salary towards superannuation.
Statutory performance indicators
The Board aims to align executive remuneration to strategic
and business objectives. As required by the Corporations
Act 2001 (Cth), the figures below show the Group’s financial
performance over the last five years. However, these are not
necessarily consistent with the measures used in determining
the variable amounts of remuneration to be awarded to KMP.
As a consequence, there may not always be a direct correlation
between the statutory key performance measures and the
variable remuneration awarded.
c) Elements of remuneration
Fixed annual remuneration
Executives receive their fixed remuneration as cash and statutory
superannuation. Fixed remuneration is reviewed annually by the
Board and benchmarked against market data for comparable
roles in listed companies across the resources sector.
Long term incentives
The remuneration policy has been designed to align the long-term
objectives between the Group, its directors and executives by
encouraging strong performance in the realisation of the Group’s
growth strategy and the enhancement of shareholder value.
The Company has a Performance Share Plan (“PSP”) and Share
Option Plan (“SOP”) as part of its overall remuneration strategy as
approved by shareholders at the 2020 Annual General Meeting.
The PSP and SOP provide for the issue of Performance Rights
or Options to directors, executives, employees or contractors of
the Company and its associated bodies corporate as an incentive
to maximise the return to shareholders over the long term and to
assist in the attraction and retention of key personnel. Awards
under the plans may include specific performance criteria that are
to be satisfied within defined time restrictions.
A copy of the PSP and SOP rules is available on the Company’s
website www.ironroadlimited.com.au/index.php/about-us/
corporate-governance
For details of individual interests in options and performance
rights at year end, refer to page 23.
Revenue
Loss before tax
Share price at 30 June
Basic loss per share (cents)
30 June 2022
$
30 June 2021
$
30 June 2020
$
30 June 2019
$
30 June 2018
$
38
50,265
50,762
21,351
1,844
(4,025,955)
(5,435,595)
(1,769,964)
(2,161,350)
(3,253,530)
0.145
(0.51)
0.265
(0.74)
0.063
(0.26)
0.053
(0.31)
0.100
(0.48)
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d) Remuneration expenses for KMP
The following table shows details of the remuneration expense recognised for the Group’s KMP for the current and previous financial
year measured in accordance with the requirements of the accounting standards. Annual and long service leave expense represents
the movement in provisions and as a result there are timing differences in the reported remuneration between years.
Fixed remuneration
Short term employee
benefits
Long term
benefits
Name
Year
$
Non-executive Directors
Salary /
fees
Non-
monetary
benefits
$
Annual and
long service
leave
$
Post
employment
benefits
Superannuation
Variable
remuneration
Share based
payments
Performance
rights*
$
$
Total
$
Peter Cassidy
Jerry Ellis
Ian Hume
Executive Directors
Glen Chipman
(Executive Director)
Other key management personnel
Chief Executive Officer
Larry Ingle
Total Directors and KMP
2022
2021
2022
2021
2022
2021
85,000
42,500
65,000
35,000
65,000
35,000
2022
2021
306,795
57,500
2022
2021
2022
2021
372,500
330,400
894,295
500,400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
405,785
85,000
448,285
-
327,430
-
327,430
65,000
362,430
65,000
362,430
12,727
-
27,500
278,100
625,122
-
-
57,500
27,605
17,549
40,332
17,549
27,500
25,000
55,000
25,000
237,992
204,648
665,597
577,597
516,092
1,265,293
1,505,719
1,808,242
* Performance rights under the executive LTI scheme are expensed over the vesting period and reversed if performance conditions are not met.
Refer to page 46 for additional information.
Non-executive directors were paid minimal (or no) Director fees between April 2018 and December 2020 and as a result were issued
performance rights approved by shareholders at the Annual General Meeting on 24 November 2020. From 1 January 2021 the
Company has resumed paying Director fees.
Mr Chipman was remunerated as a full-time employee of the Group commencing on 19 July 2021. In the previous financial year Mr
Chipman was a representative of Iron Road’s major shareholder, the Sentient Global Resources Funds (Sentient) and did not receive
any remuneration directly from the Group. The Directors fees disclosed above for 2021 were payable to Sentient.
During the year, 4,050,000 (2021: 12,101,000) performance rights were granted as remuneration to KMP. The share-based payments
expense is recognised at fair value over the vesting period for performance rights granted. The share-based payments for each KMP
reflect the attributable portion of performance rights in the relevant financial year.
No cash bonuses were paid to executive KMP during the financial year.
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e) Contractual arrangements for executive KMP
Larry Ingle
Chief Executive Officer
Glen Chipman
Executive Director
Fixed remuneration
$400,000 including statutory superannuation
$350,000 including statutory superannuation
Contract duration
No fixed term arrangement
No fixed term arrangement
Notice by the individual/company
Six months
Six months
f) Non-executive director arrangements
Details of non-executive director fees and performance rights
expensed during the year are included in the remuneration table
above. Directors fees accrued and not paid at 30 June 2022
total $53,750 (2021: $277,500).
The maximum aggregate amount of fees that can be paid
to non executive directors is currently $400,000 per annum
which was approved by shareholders at the 2012 AGM on 23
November 2012.
g) Additional statutory information
Remuneration mix for financial year 2022
Glen Chipman
Larry Ingle
Jerry Ellis AO
Ian Hume
Peter Cassidy
56%
64%
44%
36%
100%
100%
100%
0%
20%
40%
60%
80%
100%
Fixed
At Risk
Long term incentives are currently provided by way of
performance rights or options and are calculated on the value
of the right or option expensed during the year.
Terms and conditions of share-based payment
arrangements
Performance rights
The Iron Road Performance Share Plan (“PSP”) was adopted
in November 2020 as part of the Group’s remuneration
policy to encourage long term performance and retention of
Directors, senior executives, employees and contractors of the
Company or its associated body corporate. It is targeted at
those whose responsibilities provide them with opportunity to
significantly influence long term shareholder value. The plan is
administered by the Board which has discretion over persons
eligible to participate and any performance criteria attached to
performance rights.
Performance rights under the PSP entitle its holder to an
ordinary share which can be exercised once the right has
become exercisable and provided it has not lapsed. The
Board may determine that certain performance conditions
must be satisfied before the right becomes exercisable. If
the performance conditions are satisfied, the rights vest and
become exercisable although satisfaction of any vesting
condition will not automatically trigger the exercise of the right.
The fair value of the rights is determined using Monte Carlo
simulation with reference to the market price and expected
share price volatility of Iron Road Ltd shares at the grant date.
Rights are granted under the plan for nil consideration and carry
no dividend or voting rights. Once vested and exercised, any
share acquired by participants will rank equally with all existing
shares of the same class.
Should the participants’ employment cease due to genuine
redundancy, resignation under reasonable circumstances if
so determined by the Board, death or invalidity, the unvested
performance rights will not lapse and may vest or the
performance criteria may be waived.
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The following performance rights were granted during the year ended 30 June 2022:
a) Employee Performance Rights granted to Glen Chipman – rights that vest subject to various performance conditions as follows
KPI
Grant date
Expiry date
Fair value at
grant date
Balance
at start
of period
Granted
during
the period
Lapsed
during the
period
Balance
at end
of period
Vested and
exercisable at
end of period
30 June 2022
#1
#2
#3
#4
Total
24 August 2021
31 December 2024
$0.161
24 August 2021
31 December 2024
$0.144
24 August 2021
31 December 2024
$0.153
24 August 2021
31 December 2024
$0.153
-
-
-
-
1,080,000
-
1,080,000
1,080,000
720,000
(720,000)
450,000
(450,000)
1,800,000
(1,800,000)
-
-
-
-
-
-
-
4,050,000
(2,970,000)
1,080,000
1,080,000
KPI 1 IRD share price 1 - VWAP for calendar year 2021
of a minimum 20 cents including year-end close
The table below outlines the inputs used in Monte Carlo fair
valuation of the Employee Performance Rights:
KPI 2 IRD share price 2 - VWAP for July-December 2021
of a minimum 30 cents including year-end close
KPI 3 Attract non-grain trade value accretive Cape Hardy
port business commitments via respective indicative
agreements
KPI 4 Obtaining initial investment in the Central Eyre Iron
Project (CEIP) from a single partner of no less than
$50 million in relation to a % interest in the CEIP at
an IRD see-through valuation determined substantial
and acceptable by the Board of the Company, which
amount will be set prior to the date of issue.
Exercise Price
Right Life
Underlying Share Price
Expected Share Price Volatility
Risk Free Interest Rate
Weighted Average Fair Value
Weighted Average Contractual Life
Nil
3.3 years
$0.195
112.65%
0.02%
$0.154
3.3 years
Options
Shareholdings
The Share Option Plan (“SOP”) was adopted in November
2020 as part of the Group’s remuneration policy to encourage
long term performance and retention of Directors, senior
executives, employees and contractors of the Company or its
associated body corporate. Participants are granted options,
some of which vest on issue and others that vest if certain
market and non-market vesting conditions are met. Options
are granted under the plan for nil consideration, carry no
dividend or voting rights and expire if not exercised within five
years from issue. When exercisable, each option is convertible
into one ordinary share.
Participation in the plan is at the Board’s discretion and no
individual has a contractual right to participate in the Plan or to
receive any guaranteed benefits.
There are no unissued ordinary shares of Iron Road Ltd under
option for directors and KMP as at 30 June 2022.
Changes to director and KMP holdings over the year to 30 June
2022 are shown below:
Ordinary
Shares held by:
30 June 2021
Acquired
30 June 2022
Peter Cassidy
10,350,002
88,889
10,438,891
Jerry Ellis AO
Ian Hume
760,445
6,898,785
-
-
760,445
6,898,785
Glen Chipman
1,164,535
625,000
1,789,535
KMP
Larry Ingle
Total
423,380
1,327,715
1,751,095
19,597,147
2,041,604
21,638,751
Shares were acquired on market and by exercise of vested
performance rights. None of the shares above are held
nominally by the directors or KMP.
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Performance Rights
Past Director Performance Rights
Director
Grant date
Expiry date
30 June 2022
Fair value at
grant date
Balance
at start
of period
Granted
during
the year
Lapsed
during
the year
Balance
at end
of period
Vested and
exercisable at
end of period
Peter Cassidy
24 November 2020
31 December 2023
$0.145
913,000
Ian Hume
Jerry Ellis
Total
24 November 2020
31 December 2023
$0.145
844,000
24 November 2020
31 December 2023
$0.145
844,000
2,601,000
-
-
-
-
-
-
-
-
913,000
913,000
844,000
844,000
844,000
844,000
2,601,000
2,601,000
Future Director Performance Rights
Director
Grant date
Expiry date
30 June 2022
Fair value at
grant date
Balance
at start
of period
Granted
during
the year
Lapsed
during
the year
Balance
at end
of period
Vested and
exercisable at
end of period
Peter Cassidy
24 November 2020
31 December 2025
$0.137
2,000,000
Ian Hume
Jerry Ellis
Total
24 November 2020
31 December 2025
$0.137
1,500,000
24 November 2020
31 December 2025
$0.137
1,500,000
5,000,000
-
-
-
-
-
-
-
-
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
1,500,000
5,000,000
5,000,000
Executive Performance Rights
Grant date
Expiry date
30 June 2022
Directors
Fair value at grant
date
Balance
at start
of period
Granted
during
the year
Lapsed
during the
year
Exercised
during the
year
Balance
at end
of period
Vested and
exercisable at
end of period
Glen Chipman
31 December 2024
$0.144 - $0.161
-
4,050,000
(2,970,000)
-
1,080,000
1,080,000
KMP
Larry Ingle
Total
31 December 2024
$0.214 - $0.226
4,500,000
-
(3,300,000)
(1,200,000)
-
-
4,500,000
4,050,000
(6,270,000)
(1,200,000)
1,080,000
1,080,000
Voting of shareholders Annual General Meeting held on 24 November 2021
Iron Road Ltd received more than 99% of “yes” votes on its remuneration report for the 2021 financial year. The company did not
receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
This is the end of the audited remuneration report.
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DIRECTORS' REPORT
Remuneration report
Insurance of directors and officers
Non-audit services
During the financial year, Iron Road Ltd paid an insurance
premium to insure the directors and officers of the Group and its
controlled entities.
No details of the nature of the liabilities covered and the amount
of premium paid in respect of the directors and officers liability
insurance policy have been disclosed as such disclosure is
prohibited under the terms of the policy.
The Group has also entered into a Deed of Indemnity, Insurance
and Access with each director. In summary, the Deed provides
for:
» access to corporate records for each director for a
period after ceasing to hold office in the company;
The Group may decide to engage the auditor on assignments
additional to their statutory audit duties where the auditors
expertise and experience with the Group are important. The
Board is satisfied that the provision of non-audit services is
compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001 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.
Details of the amounts paid or payable to the auditor
(PricewaterhouseCoopers, Australia) for audit and non-audit
services provided during the year are set out in Note 17.
» the provision of directors and officers liability insurance; and
Auditor’s independence declaration
» indemnity for legal costs incurred by directors in
carrying out the business affairs of the company.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the
Corporations Act 2001 (Cth) for leave to bring proceedings on
behalf of the Group, or to intervene in any proceedings to which
the Group is a party, for the purpose of taking responsibility on
behalf of the Group for all or part of those proceedings.
A copy of the Auditor's Independence Declaration as required
under section 307C of the Corporations Act 2001 is
set out on page 25.
Signed in accordance with a resolution of the directors, for and
on behalf of the Board by:
Peter Cassidy
Chairman
20 September 2022
25
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DIRECTORS' REPORT
Auditor's Independence Declaration
Auditor’s Independence Declaration
As lead auditor for the audit of Iron Road Ltd 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.
This declaration is in respect of Iron Road Ltd and the entities it controlled during the period.
M. T. Lojszczyk
Partner
PricewaterhouseCoopers
Adelaide
20 September 2022
PricewaterhouseCoopers, ABN 52 780 433 757
Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001
T: +61 8 8218 7000, F: +61 8 8218 7999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
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OPERATING AND FINANCIAL REVIEW
Company strategy and operating
activities
The Group’s primary focus during the year has been
continuing to advance potential partnership proposals and
investment models for the Company’s Central Eyre Iron
Project (CEIP) including pursuit of the proposed Cape Hardy
multi-user, multi-commodity port facility and other long-term
business development opportunities associated with the Cape
Hardy port site.
During the year the Company commenced a market sounding
process to gauge commercial interest in the development of
Cape Hardy as a green hydrogen hub and industrial precinct.
The technical support and extensive market reach of WSP
Australia was employed to target a shortlist of domestic and
international green hydrogen proponents and associated
entities. Both WSP Australia and the South Australian
Government have recognised Cape Hardy as a credible, future
green hydrogen production hub.
Changes in financial position
The Group’s net assets decreased by 1% this year (2022:
$133,821,946 from 2021: $135,826,447). In August 2021 the
Company raised approximately $0.5 million in equity from the
Group’s major shareholder the Sentient Global Resources
Funds towards repayment of the balance of the Sentient Global
Resources Fund IV loan facility and outstanding Director
Fees. In December 2021 Iron Road announced a placement
of ordinary shares in the Company raising up to $5 million for
an aggregate subscription of up to $5.175 million to further
advance the Company’s assets and fund general working
capital requirements. During the year $1.25 million was received
from this facility (refer Note 9 for further details).
The Group currently has no cash generating assets in operation
and $1,894,350 of available cash at 30 June 2022. There
remains material uncertainty as to the Group's ability to continue
as a going concern as defined under the accounting standards
(refer to Note 18a (iv) for further details).
Operating results for the year
Risk management
Operational, financial, environmental, and regulatory risks are
considered and addressed by management, with specific areas
of significant risk referred by management to the Board. The
Board considers that it is important for all Board members to
be a part of this process and as such has not established a
separate risk management committee.
The principal activities of the Group during the year and
associated expenditure was geared to the Company’s
operating focus summarised above.
The Group incurred an operating loss after income tax for the
year ended 30 June 2022 of 4,025,955 (2021: $5,435,595).
Share based payments expense decreased by $1.7 million
of which $1.2 million related to the expensing of unlisted
Iron Road warrants held by Macquarie Capital with vesting
contingent on Financial Close and Commercial Operations
being achieved for the Cape Hardy Stage I port development.
The balance of the reduction relates to performance-based
remuneration for key management personnel. Offsetting this
reduction is an increase of $0.4 million in other employment
expenses (refer Notes 4 and 15 for further details).
28
FINANCIAL STATEMENTS
For the year ended 30 June 2022
CONTENTS
Financial
statements
Notes to the
consolidated
financial
statements
Consolidated Income Statement and Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Structure of notes and materiality
Note disclosures are split into five sections shown below to enable a better understanding
of how the Group performed.
Page 29
Page 30
Page 31
Page 32
Page 33
KEY NUMBERS
STRUCTURES
CAPITAL
ADDITIONAL
INFORMATION
UNRECOGNISED
ITEMS
1. Cash
2. Exploration
10. Controlled
entities
11. Segment
information
3. Property, plant
and equipment
12. Related
parties
14. Share Capital
17. Remuneration
of auditors
20. Commitments
15. Reserves and
Share based
payments
18. Accounting
policies
21. Contingencies
19. Risk
management
22. Events after
reporting date
4.
Operating
activities
13. Parent entity
16. Loss per share
information
5. Provisions
6. Taxation
7.
Prepayments
and other
receivables
8. Trade payables
9.
Subscriptions to
be settled
Accounting policies and critical accounting judgements applied to the preparation of financial statements have
been moved to the relevant section.
Information is only being included in the Notes to the extent that it has been considered material and relevant to
the understanding of the financial statements.
CONSOLIDATED INCOME STATEMENT AND
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2022
29
Note
2022 ($)
2021 ($)
Revenue and other income
Other income
Expenses
Loss on disposal of assets
Depreciation
Employee benefits expense
Exploration expenses
Finance charges
General expenses
Professional fees
Travel and accommodation
Marketing
Rent and administration
Share based payments - Cape Hardy Stage I Warrants
Loss before income tax
Income tax expense
Loss for the period
Other comprehensive loss for the period
Total comprehensive income for the period
attributable to owners of Iron Road Ltd
Loss per share attributable to the ordinary equity holders of the company:
Basic and diluted loss per share (cents)
3
4
2
4
15
6
16
38
50,265
-
(46,826)
(34,000)
(46,829)
(2,266,907)
(2,441,857)
(479,211)
(155,500)
(97,857)
(596,516)
(19,573)
(16,091)
(264,208)
(83,304)
(4,025,955)
-
(478,151)
-
(68,357)
(890,896)
(47,357)
(9,249)
(252,663)
(1,216,501)
(5,435,595)
-
(4,025,955)
(5,435,595)
-
-
(4,025,955)
(5,435,595)
Cents
(0.51)
Cents
(0.74)
6
The above consolidated income statement and statement of comprehensive income should be read in conjunction with the notes to the
consolidated financial statements.
S
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
ASSETS
Current assets
Cash and cash equivalents
Bank term deposits
Prepayments and other receivables
Total current assets
Non-current assets
Exploration and evaluation expenditure
Property, plant and equipment
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Subscription to be settled
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Note
2022 ($)
2021 ($)
1
1
7
2
3
1,894,350
45,000
49,872
1,989,222
123,096,527
10,582,537
133,679,064
135,668,286
4,747,945
45,000
94,080
4,887,025
122,725,631
9,699,192
132,424,823
137,311,848
Note
2022 ($)
2021 ($)
8
9
5
5
Note
14
15
609,733
924,400
307,261
1,841,394
4,946
4,946
1,846,340
133,821,946
2022 ($)
178,731,844
8,249,008
(53,158,906)
133,821,946
1,212,609
-
271,695
1,484,304
1,097
1,097
1,485,401
135,826,447
2021 ($)
177,406,872
7,552,526
(49,132,951)
135,826,447
The above consolidated statement of financial position should be read in conjunction with the notes to the consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
Attributable to owners of Iron Road Ltd
Contributed
Equity
Accumulated
losses
Reserves
Total Equity
Note
$
$
$
$
Balance at 1 July 2020
162,093,715
(43,697,356)
4,766,758
123,163,117
Loss for the year
-
(5,435,595)
Transactions with owners in their capacity as owners:
Contributions to equity net of transaction costs
Share based payments - employees
Share based payments - Cape Hardy Stage I Warrants
Balance at 30 June 2021
Loss for the year
Transactions with owners in their capacity as owners:
Contributions to equity net of transaction costs
Share based payments - employees
Share based payments - Cape Hardy Stage I Warrants
14
15
15
14
15
15
15,313,157
-
-
-
-
-
-
-
(5,435,595)
15,313,157
1,569,267
1,569,267
1,216,501
1,216,501
177,406,872
(49,132,951)
7,552,526
135,826,447
-
(4,025,955)
-
(4,025,955)
1,324,972
-
-
-
-
-
-
1,324,972
613,178
613,178
83,304
83,304
Balance at 30 June 2022
178,731,844
(53,158,906)
8,249,008
133,821,946
The above consolidated statement of changes in equity should be read in conjunction with the notes to the consolidated financial statements.
31
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CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
Cash flows from operating activities
Payments to suppliers and employees (inclusive of GST)
Government grant received
Interest received
Note
2022 ($)
2021 ($)
(2,929,760)
(2,546,179)
-
38
50,000
265
Net cash outflow from operating activities
4
(2,929,722)
(2,495,914)
Cash flows from investing activities
Payments for term deposits
Proceeds from term deposits
Payments for exploration and evaluation
Payments for property, plant and equipment
Proceeds from sale of assets
Net cash outflow from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Subscriptions received
Proceeds of short term finance
Repayment of short term finance
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(180,000)
180,000
(370,896)
(930,171)
-
(1,301,067)
496,868
(26,556)
1,250,000
-
(343,118)
1,377,194
(2,853,595)
4,747,945
1,894,350
(180,000)
180,000
(765,871)
-
13,000
(752,871)
15,614,728
(301,571)
-
1,000,000
(8,656,882)
7,656,275
4,407,490
340,455
4,747,945
14
9
1
The above consolidated statement of cash flows should be read in conjunction with the notes to the consolidated financial statements.
33
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
1. Cash
Where we spent money
Cash expenditure from operating activities during the year was $383,581 higher than the prior year at $2,929,760 (2021:
$2,546,179) mainly resulting from the reinstatement of Director fees and the remunerated appointment of Executive Director,
Mr Glen Chipman in July 2021. Share capital and other funding raised during the year was mainly invested into progressing
the CEIP, including Cape Hardy Stage I port (see note 2) and used to repay $343,118 in short term finance from Sentient
Global Resources Fund IV (2021: $8,656,882).
Cash and cash equivalents at 30 June 2022 were $1,894,350 (2021: $4,747,945) and bank term deposits held were $45,000
(2021: $45,000). The bank term deposit of $45,000 is held as security for the Group’s credit card facility.
Cash at bank earns a floating interest rate based on the at call daily rate. Funds held in a term deposit facility for 3 months or
more have been reclassified to bank term deposits in the consolidated statement of financial position per AASB 107.
2022
$4,900,500
2021
$12,270,503
Exploration and evaluation
Employee benefits expense
Professional fees
Rent and administration
Share issue transaction costs
$ 944,367
$1,401,042
$596,516
$323,066
$ 26,556
Purchase of property, plant and equipment
$930,171
Repayment of borrowings
Other
$643,118
$35,664
Exploration and evaluation
$1,388,210
Employee benefits expense
$623,936
Professional fees
Rent and administration
$890,896
$352,402
Share issue transaction costs
$301,571
Repayment of borrowings
$8,656,882
Other
$56,606
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34
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
2. Exploration
Exploration and evaluation expenditure capitalised in relation
to CEIP for the year ended 30 June 2022 totalled $370,896
(2021: $765,861). The total capitalised exploration and
evaluation expenditure relating to the CEIP at 30 June 2022 was
$123,096,527 (2021: $122,725,631).
From 1 January 2019 expenditure on maintaining the mining
lease that has not progressed the CEIP has been expensed.
The total exploration expense for the year was $479,211 (2021:
$478,151).
The CEIP asset is tested for impairment periodically or when
events or circumstances indicate the carrying value may not be
recoverable. For the year ended 30 June 2022, the directors
deemed the current capitalisation of development of the CEIP
mineral resource to be appropriate, as the Group continues
to refine mining and processing methods and capital cost
estimates.
The Group’s exploration and evaluation policy is to capitalise
and carry forward exploration and evaluation expenditure where
a JORC compliant mineral resource has been identified. This
appropriately recognises that these projects are in an advanced
exploration, evaluation or feasibility phase. Expenditure incurred
in the acquisition of rights to explore is capitalised, classified
as tangible or intangible and recognised as an exploration
and evaluation asset. Exploration and evaluation assets are
measured at cost at time of recognition. Recoverability of
the carrying amount of exploration and evaluation assets
is dependent on successful development and commercial
exploitation, or alternatively, sale of the respective areas of
interest.
For areas of interest where a JORC compliant mineral resource
is yet to be identified or where exploration rights are no longer
current, the capitalised values are subsequently impaired and
charged to the profit and loss.
Recoverability of exploration and evaluation assets
The Group’s accounting policy requires management make
certain assumptions as to future events and circumstances.
Exploration and evaluation costs are carried forward based
on the accounting policy set out above. Should development
not be possible, or the existence of ore reserves not allow
for economic development, amounts recorded may require
impairment in future periods. Iron Road periodically evaluates
the economic potential of the CEIP using discounted cashflow
modelling techniques. The model includes assumptions for
production volumes, forecast iron ore pricing, foreign exchange
rates and project costs, which are updated for the latest
available data.
3. Property, plant and equipment
During the year ended 30 June 2022, the Group invested
$930,171 in property, plant and equipment (2021: nil).
All property, plant and equipment is stated at historical cost less
accumulated depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Reconciliation of the carrying amounts of property, plant and
equipment:
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
3. Property, plant and equipment (continued)
Year ended 30 June 2021
Opening net book value
Disposals
Depreciation charge
Closing net book amount
At 30 June 2021
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2022
Opening net book value
Additions
Depreciation charge
Closing net book amount
At 30 June 2022
Cost or fair value
Accumulated depreciation
Net book amount
LAND AND BUILDINGS
PLANT AND EQUIPMENT
Land ($)
Buildings &
Improvements ($)
Plant &
Equipment ($)
Motor
Vehicles ($)
Total ($)
9,025,418
(47,000)
-
8,978,418
8,978,418
-
8,978,418
8,978,418
898,044
-
9,876,462
9,876,462
-
9,876,462
670,292
-
(21,526)
648,766
847,518
(198,752)
648,766
648,766
-
(21,467)
627,299
847,518
(220,219)
627,299
95,958
-
(24,828)
71,130
772,039
(700,909)
71,130
71,130
32,127
(24,886)
78,371
764,895
(686,524)
78,371
1,353
-
(475)
878
40,097
(39,219)
878
878
-
(473)
405
40,097
(39,692)
405
9,793,021
(47,000)
(46,829)
9,699,192
10,638,072
(938,880)
9,699,192
9,699,192
930,171
(46,826)
10,582,537
11,528,972
(946,435)
10,582,537
In July 2021 the Group purchased 24 hectares of gulf front land
at Cape Hardy for $0.9 million plus transaction costs, adding to
the 1,100+ hectare greenfield site.
The Group’s land holdings are predominantly located at the
Cape Hardy Port precinct. Other Cape Hardy project costs are
included in the capitalised exploration and evaluation balance
(refer Note 2).
Depreciation methods and useful lives
Subsequent costs are included in the assets’ carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for
as a separate asset is derecognised when replaced. All repairs
and maintenance are charged to profit and loss during the
reporting period in which they are incurred.
Land is not depreciated and depreciation on other assets is
calculated using the straight-line method to allocate their cost
or revalued amounts, net of their residual values, over their
estimated useful lives as follows:
» Computer equipment 3 - 4 years
» Office equipment 3 - 20 years
» Plant and equipment 3 - 20 years
» Buildings & improvements 4 - 40 years
» Motor vehicles 5 - 10 years
In the case of leasehold improvements, the allocation of cost
is over the term of the lease. The assets’ residual values and
useful lives are reviewed and adjusted if appropriate at the end
of each reporting period. An asset’s carrying amount is written
down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable
amount. Gains and losses on disposals are determined by
comparing proceeds with the carrying amount and included in
profit or loss.
35
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36
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
4. Operating activities
Operating expenses were $4,025,993 for the year ended 30 June 2022 (2021: $5,485,860) and include the following:
1,800,000
1,800,000
1,600,000
1,600,000
1,400,000
1,400,000
1,200,000
1,200,000
1,000,000
1,000,000
800,000
800,000
600,000
600,000
400,000
400,000
200,000
200,000
0
0
Salaries and
other employee
benefits
Salaries and
other employee
benefits
Superannuation
Superannuation
Employee benefits expense
Total
Total
Salaries and other employee benefits
2022
2022
$2,266,907
$2,266,907
$966,017
2021
2021
$2,441,857
$2,441,857
$515,364
Salaries and other employee benefits
$966,017
$515,364
Superannuation
Superannuation
Directors’ fees
Directors’ fees
$99,152
$99,152
$215,000
$215,000
$74,726
$74,726
$282,500
$282,500
Share based payments - Directors and employees
Share based payments - Directors and employees
$986,738
$986,738
$1,569,267
$1,569,267
Directors’
fees
Directors’
fees
Share based
Share based
payments - Directors
payments - Directors
and employees
and employees
Share based payments – employee benefits expense includes the value of performance rights granted to Non-executive Directors,
KMP, employees and consultants of $986,738 (2021: $1,569,267) (Refer Note 15).
450,000
450,000
400,000
400,000
350,000
350,000
300,000
300,000
250,000
250,000
200,000
200,000
150,000
150,000
100,000
100,000
50,000
50,000
0
0
Professional fees
Total
Total
Consulting
Consulting
Legal
Legal
Accounting & audit
Accounting & audit
ASX & ASIC
ASX & ASIC
2022
2022
2021
2021
$596,516
$596,516
$890,896
$890,896
$179,319
$179,319
$247,150
$247,150
$170,495
$390,456
$170,495
$390,456
$173,039
$202,502
$173,039
$202,502
$73,663
$73,663
$50,788
$50,788
Consulting
Consulting
Legal
Legal
Accounting
Accounting
& Audit
& Audit
ASX & ASIC
ASX & ASIC
Share based payments – Cape Hardy Stage I Warrants
Share based payments – Cape Hardy Stage I Warrants expense of $83,304 relates to professional services supplied by Macquarie
Capital (2021: $1,216,501). Refer Note 15 for additional information.
Reconciliation of loss after income tax to net cash outflow from operating activities is as follows:
Net loss for the period
Depreciation
Finance charges
Share based payments - Directors and employees
Share based payments - Cape Hardy Stage I Warrants
Gain/(loss) on disposal of asset
Change in operating assets and liabilities
Decrease/(increase) in other receivables
(Decrease)/increase in trade payables
Increase/(decrease) in other provisions
Net cash outflow from operating activities
2022 ($)
(4,025,955)
46,826
155,500
986,739
83,304
-
44,208
(259,758)
39,415
2021 ($)
(5,435,595)
46,829
-
1,569,267
1,216,501
34,000
(49,011)
149,050
(26,955)
(2,929,722)
(2,495,914)
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
5. Provisions
Provisions
CURRENT
NON CURRENT
Annual
leave
$
Long service
leave
$
Sub-total
$
Long service
leave
$
Carrying amount as at 1 July 2021
119,394
152,301
Movement in provision during the year
106,038
19,698
Amounts used or paid out during the year
(90,170)
-
271,695
125,736
(90,170)
1,097
3,849
-
Total
$
272,792
129,585
(90,170)
Carrying amount as at 30 June 2022
135,262
171,999
307,261
4,946
312,207
The employee benefits provision covers the Group’s liability for
long service leave and annual leave. This provision represents
a present obligation resulting from past events, where it is
probable that an outflow of resources will be required to settle
the obligation. The current portion of this liability includes
all accrued annual leave and the unconditional entitlements
to long service leave where employees have completed the
required period of service. However, based on experience, the
Group does not expect all employees to take the full amount of
accrued leave or require payment within twelve months.
Short term employee benefit obligations
Liabilities for wages and salaries, including non-monetary
benefits and accumulating leave that are expected to be settled
wholly within twelve months after the end of the period in which
the employees render the related service are recognised in
respect of employees’ services up to the end of the reporting
period and are measured at the amounts expected to be paid
when the liabilities are settled. All other short-term employee
benefit obligations are presented as payables.
Other long term employee benefit obligations
The liabilities for long service leave and annual leave are not
expected to be settled wholly within twelve months after the
end of the period in which the employees render the related
service. Consequently, they are recognised in the provision
for employee benefits and measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the end of the reporting period
using the projected unit credit method. Consideration is given
to expected future wage and salary levels, experience of
employee departures and periods of service.
Notwithstanding the classification of annual leave as a long
term employee benefit, the related obligations are presented
as current liabilities in the balance sheet if the Group does
not have an unconditional right to defer settlement for at least
twelve months after the reporting date, regardless of when
actual settlement is expected to occur.
The following amounts reflect leave that is not expected to be
taken or paid within twelve months:
Annual leave obligations expected to be settled after twelve months
81,157
71,636
Current long service leave obligations to be settled after twelve months
176,945
153,398
Total current leave obligations expected to be settled after twelve months
258,102
225,034
2022
$
2021
$
37
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
6. Taxation
Iron Road Ltd and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. As a
consequence, these entities are taxed as a single entity and the deferred tax assets and liabilities of these entities are set off in the
consolidated financial statements.
This note provides an analysis of the Group’s income tax expense, amounts recognised and deferred tax assets and liabilities. The
income tax expense of nil for the year ended 30 June 2022 (2021: nil) represents the tax payable on the current year’s taxable loss
adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is determined using a tax rate applicable at the end of the reporting period and expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled.
Reconciliation of income tax benefit to prima facie tax
Loss from continuing operations before income tax benefit
Tax at the Australian tax rate of 30% (2021: 30%)
Tax effect of amounts which are not deductible/(assessable) in calculating taxable income
Current year tax losses not recognised
Income tax expense
2022
$
2021
$
(4,025,955)
(5,435,595)
(1,207,787)
(1,630,678)
321,213
886,574
-
785,912
844,766
-
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same
taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax is recognised in
profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case,
tax is also recognised in other comprehensive income or directly in equity.
Deferred tax assets and liabilities
The balance of deferred tax assets comprises temporary differences attributable to:
Tax losses
Business related costs
Accrued expenses
Total recognised and unrecognised deferred tax assets
The balance of deferred tax liabilities comprises temporary differences attributable to:
Exploration expenditure
Total deferred tax liabilities
Net deferred tax assets
Deferred tax assets not recognised
Net deferred tax assets
2022
$
2021
$
46,257,333
45,400,264
62,947
179,778
76,718
157,508
46,500,058
45,634,490
34,075,298
34,075,298
12,424,760
34,101,004
34,101,004
11,533,486
(12,424,760)
(11,533,486)
-
-
A net deferred tax asset of $12,424,760 (2021: $11,533,486) has not been recognised as it is not probable within the immediate
future that taxable profits will be available against which temporary differences and tax losses can be utilised.
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
7. Prepayments and other receivables
Prepayments and other receivables for the year ended 30 June 2022 were $49,872 (2021: $94,080).
39
$49,872
2022
$94,080
2021
GST receivable
Prepayments
Other receivables
$15,706
$33,988
$178
GST receivable
-
Prepayments
Other receivables
$63,205
$30,697
$178
-
As at 30 June 2022 there were no other receivables that were past due or impaired (2021: nil). At initial recognition, the Group
measures a financial asset at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
Loans and receivables are subsequently carried at amortised cost using the effective interest method. Exposure to risk is considered
in Note 19(a).
Due to the short-term nature of current receivables, their carrying amount is assumed to approximate fair value.
8. Trade payables
Trade payables
Accruals
Short term loan facility
Total trade and other payables
2022
$
500,828
108,905
-
609,733
2021
$
713,252
156,239
343,118
1,212,609
During the year the Group repaid the remaining balance of $343,118 in short term loan facility from Sentient Global Resources Fund
IV through the issue of shares as approved by shareholders at the General Meeting on 24 August 2021.
Trade payables includes $339,539 in annual mining lease rental fees associated with the CEIP mineral lease ML6467 (2021:
$433,465).
All amounts are unsecured and are presented as current liabilities unless payment is not due within 12 months from the reporting
date. The carrying amount of trade and other payables are assumed to approximate their fair values, due to their short-term nature.
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
KEY NUMBERS
9. Subscription to be settled
Subscription to be settled
Opening balance 1 July
Subscription funds received
Initial Subscription Shares issued
Subscription Shares issued
Finance charge
Closing balance
2022
$
-
1,250,000
(113,100)
(300,000)
87,500
924,400
2021
$
-
-
-
-
-
-
During the year, the Company entered into a Subscription
Agreement (Agreement) with Bulk Commodity Holdings, LLC
(the Investor), a US based investor, for a private placement of
shares for an aggregate subscription price of up to $5,175,000
over three separate investments. Proceeds from the placement,
along with existing cash reserves, are to be used to further
advance the Company’s assets and fund general working
capital requirements. The bespoke terms of the placement
effectively defer the issuance of shares to the Investor across
three separate investments (by up to 12 months for each of
the first & second investments) and are specifically targeted to
minimise the dilutionary impact for current shareholders.
The agreement provides for an initial investment of $1.25 million
for $1.34 million worth of ordinary shares (Subscription Shares),
by way of the Investor making a prepayment for Subscription
Shares. The Company received the first investment of $1.25
million prepayment on 22 December 2021 and will issue
the Subscription Shares, at the Investor’s request, within 12
months of the date of the funding. The Purchase Price of the
Subscription Shares will be equal to $0.40 initially, representing
a premium of approximately 111% to the closing price of the
Company's shares on 15 December 2021. Subject to the
Floor Price described below, the Purchase Price will reset to
the average of the five daily volume weighted average prices
selected by the Investor during the 20 consecutive trading
days immediately prior to the date of the Investor’s notice to
issue shares, less a 7.5% discount (or a 10% discount if the
Subscription Shares are issued later than nine months after the
initial investment). The difference between proceeds of the initial
investments and the value of the subscription shares that may
be issued has been treated as a finance cost.
The Purchase Price will, nevertheless, be the subject of the
Floor Price of $0.15. If the Purchase Price formula results in
a price that is less than the Floor Price, the Company may
forego issuing shares and instead opt to repay the applicable
subscription amount in cash (with a 5% premium), subject to
the Investor’s right to receive Subscription Shares at the Floor
Price in lieu of such cash repayment. The Purchase Price will
not be the subject of a cap/ceiling price. The Company will also
have the right (but not obligation) to forego issuing shares in
relation to the Investor’s request for issuance and instead opt
to repay the subscription amount by making a payment to the
Investor equal to the market value of the shares that would have
otherwise been issued.
The Company made an initial issuance of 580,000 Subscription
Shares (Initial Subscription Shares) to the Investor on 16
December 2021, towards the ultimate number of Subscription
Shares to be issued. Alternatively, in lieu of applying these shares
towards the aggregate number of the Subscription Shares to
be issued by the Company, the Investor may make a further
payment to the Company equal to the value of these shares
determined using the Purchase Price (incorporating a 7.5%
discount) at the time of the payment. The fair market value of the
Initial Subscription Shares of $113,100 has been offset against
any future subscriptions to be settled.
During the year the Investor requested the issuance of 1,833,239
shares to settle $300,000 of subscriptions. The weighted
average price of the Subscription Shares issued under the
agreement was $0.164.
Under the agreement, the Company issued 337,771 fully paid
ordinary shares on 16 December 2021, in satisfaction of a
$68,000 fee payable to the Investor. This amount has been
expensed as a finance charge.
The second investment of $1.25 million for $1.34 million worth
of Subscription Shares and its funding has been exercised at
the discretion of the Company. Settlement is expected to occur
from October 2022.
A third investment of raising up to $2.5 million may be
undertaken by mutual consent of the Investor and the Company.
The Company is under no obligation to draw down on this
investment and the Investor is under no obligation to provide it.
The financial liability was initially recognised at fair value, net
of transaction costs incurred and subsequently measured at
amortised cost. When the entity issues equity instruments to
extinguish the liability (debt for equity swap), a gain or loss is
recognised in profit or loss, which is measured as the difference
between the carrying amount of the financial liability and the fair
value of the equity instruments issued.
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
STRUCTURES
10. Controlled entities
The Group has the following corporate structure. All subsidiaries are 100% owned (2021: 100%) and located and registered in Australia.
Iron Road Ltd
IRD Portalis
Holdings Pty Ltd
IRD Group
Finance Pty Ltd
IRD (Central
Eyre) Pty Ltd
IRD Port Assets
Holdings Pty Ltd
IRD Port Assets
Midco Pty Ltd
IRD Port Assets
Pty Ltd
DORMANT
IRD Portalis
Pty Ltd
IRD’s Portalis
Partnership SPV
IRD Mining
Operations Pty Ltd
Holder of the CEIP
Mining Lease
IRD (Gawler)
Pty Ltd
Eyre Exploration
Pty Ltd
DORMANT
DORMANT
41
6
11. Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Directors and
management of the Group. These internal management reports are reviewed monthly and are aligned with the information provided
in the statement of comprehensive income, statement of financial position and statement of cash flows. The Group does not have
any customers or operating segments with discrete financial information and all of the Group’s assets and liabilities are located within
Australia. As a result no reconciliation is required.
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
STRUCTURES
12. Related parties
The parent entity of the Group and the ultimate parent entity and controlling party is The Sentient Global Resources Funds (Sentient)
which at 30 June 2022 owned 72.30% (2021: 72.62%) of the issued ordinary shares of Iron Road Ltd.
The following transactions occurred with Sentient:
Proceeds of issue from shares
Short term finance - loan
Short term finance - repayment
Director's fees (April 2018 to June 2021)
2022 ($)
496,868
-
(343,118)
-
2021( $)
8,656,882
1,000,000
(8,656,882)
(170,000)
During the year the Group repaid the remaining balance of $343,118 in short term loan facility from Sentient Global Resources Fund
IV through the issue of shares as approved by shareholders at the General Meeting on 24 August 2021.
Director fees outstanding at the start of the year relating to Mr Glen Chipman for the period April 2018 to March 2021 of $153,750
were settled via an issue of shares to Sentient as approved by the shareholders at the same General Meeting. The remaining
balance of $16,250 relating to April to June 2021 was paid during the year.
Shareholders also approved the issue of the following securities issued to Glen Chipman under the Performance Share Plan at the
General Meeting held on 24 August 2021;
Employee Performance Rights granted to Glen Chipman – rights that vest subject to various performance conditions as follows:
KPI
Grant date
Expiry date
Fair value at
grant date
Balance
at start
of period
Granted
during
the period
Lapsed
during the
period
Balance
at end
of period
Vested and
exercisable at
end of period
30 June 2022
#1
#2
#3
#4
Total
24 August 2021
31 December 2024
$0.161
24 August 2021
31 December 2024
$0.144
24 August 2021
31 December 2024
$0.153
24 August 2021
31 December 2024
$0.153
-
-
-
-
1,080,000
-
1,080,000
1,080,000
720,000
(720,000)
450,000
(450,000)
1,800,000
(1,800,000)
-
-
-
-
-
-
-
4,050,000
(2,970,000)
1,080,000
1,080,000
KPI 1 IRD share price 1 - VWAP for calendar year 2021
of a minimum 20 cents
The table below outlines the inputs used in Monte Carlo fair
valuation of the Employee Performance Rights:
KPI 2 IRD share price 2 - VWAP for July-December 2021
of a minimum 30 cents
KPI 3 Attract non-grain trade value accretive Cape Hardy
port business commitments via respective indicative
agreements
KPI 4 Obtaining initial investment in the Central Eyre Iron
Project (CEIP) from a single partner of no less than
$50 million in relation to a % interest in the CEIP at an
IRD see-through valuation determined substantial and
acceptable by the Board of the Company.
Exercise Price
Right Life
Underlying Share Price
Expected Share Price Volatility
Risk Free Interest Rate
Weighted Average Fair Value
Weighted Average Contractual Life
All transactions were made on standard commercial terms and conditions and at market rates.
Nil
3.3 years
$0.195
112.65%
0.02%
$0.154
3.0 years
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
STRUCTURES
12. Related parties (continued)
13. Parent entity information
Transactions with Directors and other Key Management
Personnel having authority and responsibility over the Group’s
activities are as follows:
$1,400,000
$1,200,000
$1,400,000
$1,000,000
$1,200,000
$800,000
$1,000,000
$600,000
$800,000
$400,000
$600,000
$200,000
$400,000
0
$200,000
0
Short term
employee
benefits
Short term
employee
benefits
Long term
employee
benefits
Long term
employee
benefits
Post
employment
benefits
Post
employment
benefits
Performance
rights
expensed
Performance
rights
expensed
Total
Short term employee benefits
Total
Long term employee benefits
Short term employee benefits
Post employment benefits
Long term employee benefits
Performance rights expensed
Post employment benefits
2022
2021
$1,505,719
2022
$894,295
$1,505,719
$40,332
$894,295
$55,000
$40,332
$516,092
$55,000
$1,808,242
2021
$500,400
$1,808,242
$17,549
$500,400
$25,000
$17,549
$1,265,293
$25,000
The individual financial statements for the parent entity show the
following amounts (refer table below):
The financial information for the parent entity, Iron Road Ltd, has
been prepared on the same basis as the consolidated financial
statements, except as set out below.
(i) Investments in subsidiaries, associates and joint ventures.
Investments in subsidiaries are accounted for at cost in the
financial statements of Iron Road Ltd.
(ii) Tax consolidation
Iron Road Ltd and its wholly-owned Australian controlled entities
have implemented the tax consolidation legislation. The head
entity, Iron Road Ltd, and the controlled entities in the tax
consolidated group account for their own current and deferred
tax amounts. These tax amounts are measured as if each entity
in the tax consolidated group continues to be a stand-alone
taxpayer in its own right. In addition to its own current and
deferred tax amounts, Iron Road Ltd also recognises the current
tax liabilities (or assets) and the deferred tax assets arising
from unused tax losses and unused tax credits assumed from
controlled entities in the tax consolidated group.
The company has not provided any financial guarantees as at 30
June 2022 and has no contingent liabilities as at 30 June 2022.
$516,092
Performance rights expensed
Detailed remuneration disclosures are provided in the
Remuneration Report on page 23. Share based payments –
employee benefits expense includes the value of performance
rights granted to Non-executive Directors and KMP of $516,092
(2021: $1,265,293) (Refer Note 15).
$1,265,293
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ASSETS
Total current assets
Total non-current assets
Total assets
LIABILITIES
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Issued capital
Reserves
Accumulated losses
Total equity
Loss for the year
Total comprehensive loss for the year
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S
2022
$
13,910,464
122,278,103
136,188,567
1,841,394
4,946
1,846,340
134,342,227
178,731,844
8,249,008
(52,638,625)
134,342,227
(3,981,842)
(3,981,842)
2021
$
15,901,017
121,887,000
137,788,017
1,484,305
1,097
1,485,402
136,302,615
177,406,872
7,552,526
(48,656,783)
136,302,615
(5,347,392)
(5,347,392)
IRON ROADANNUAL REPORT 2022OVERVIEWCHAIRMAN'S LETTEROPERATIONS REPORTOPERATING AND FINANCIAL REVIEWFINANCIAL STATEMENTSDIRECTORS' REPORTSIGNED REPORTSASX INFORMATION12345678
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
CAPITAL
14. Equity and reserves
Share capital
Opening balance 1 July
2022
Shares
2021
Shares
2022
$
2021
$
792,279,280
693,683,634
177,406,872
162,093,715
Shares issued as part of 1 for 7 non-renounceable rights issue
-
74,444,467
-
10,422,225
Issue of shares in Share placement
2,311,014
19,767,444
496,868
4,250,000
Issue of shares to consultant as consideration for services
Issue of shares in Share Purchase Plan (SPP)
-
-
465,116
3,918,619
Issue of initial placement shares under subscription agreement
580,000
Issue of shares as consideration for fees under subscription agreement
337,771
-
-
-
-
-
1,833,239
1,650,000
-
-
-
113,100
68,000
300,000
373,560
100,000
842,503
-
-
-
-
(26,556)
(301,571)
798,991,304
792,279,280
178,731,844
177,406,872
Settlement of subscription shares
Exercise of Employee Performance Rights
Cost of issues
Balance 30 June
In August 2021 the Group issued 2,311,014 shares to Sentient Global Resources Fund IV to repay the remaining balance of $343,118
in short term loan facility and Director fees relating to the period April 2018 to March 2021 of $153,750, as approved by shareholders
at the General Meeting on 24 August 2021.
On 16 December 2021 Iron Road announced a placement of ordinary shares in the Company raising up to $5 million for an
aggregate subscription of up to $5.175 million. Proceeds from the placement, along with existing cash reserves, are to be used
to further advance the Company’s assets and fund general working capital requirements. In accordance with the terms of the
placement 337,771 shares were issued in satisfaction of a fee payable to the Investor and 580,000 initial shares were issued which
may contribute towards the ultimate number of Subscription Shares to be issued (See Note 9). A further 1,833,239 Subscription
Shares have been issued as at 30 June 2022.
Ordinary shares entitle the holder to participate in dividends and to share in the proceeds of winding up of the Group in proportion to
the number of and amounts paid on the shares held. 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. Ordinary shares have no par
value and the company does not have a limited amount of authorised capital.
Dividends
There have been no dividends paid during the current or prior financial years.
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FINANCIAL STATEMENTS
For the year ended 30 June 2022
CAPITAL
15. Reserves and Share-based payments
Share Based Payment Reserve
2022
Options & Rights
2021
Options & Rights
2022
$
2021
$
Opening balance 1 July
58,201,000
-
7,552,526
4,766,758
Past Director Performance Rights granted
Future Director Performance Rights granted
2,601,000
5,000,000
377,145
683,500
Employee Performance Rights granted
4,050,000
10,600,000
1,047,778
508,622
Employee Performance Rights lapsed
(10,270,000)
Share-based payments - employee benefits expense
Employee Performance Rights exercised
(1,650,000)
-
-
Performance Rights - movement in reserve
(61,040)
-
986,738
(373,560)
1,569,267
-
613,178
1,569,267
Cape Hardy Stage I Warrants issued
40,000,000
83,304
1,216,501
Share-based payments - Cape Hardy Stage I Warrants expense
83,304
1,216,501
Balance 30 June
50,331,000
58,201,000
8,249,008
7,552,526
The share-based payment reserve is used to recognise the value of options and performance rights granted. Options and
Performance rights with vesting conditions are expensed throughout the vesting period and should they fail to vest before the
expiry date, no amount is recognised.
During the year, Share based payments – employee benefits expense, included the value of performance rights granted to Non-
executive Directors, KMP, employees and consultants of $986,738 (2021: $1,569,267). The value of vested performance rights
exercised during the year was $373,560 (2021: nil).
Share based payments – Cape Hardy Stage I Warrants expense of $83,304 relates to professional services supplied by
Macquarie Capital (2021: $1,216,501).
Share-based compensation benefits are provided to Directors, KMP, employees and consultants through the Iron Road Ltd
Performance Share Plan and Share Option Plan.
Performance rights
The Iron Road Performance Share Plan (“PSP”) was implemented in November 2020 as part of the Group’s remuneration policy
to encourage long term performance and retention of Directors, senior executives, employees or contractors of the Company or
its associated body corporate. It is targeted at those whose responsibilities provide them with opportunity to significantly influence
long term shareholder value. The plan is administered by the Board which has discretion over persons eligible to participate and
any performance criteria attached to performance rights.
Performance rights under the PSP entitle the holder to an ordinary share which can be exercised once the right has become
exercisable and provided it has not lapsed. The Board may determine that certain performance conditions must be satisfied
before the right becomes exercisable. If the performance conditions are satisfied, the rights vest and become exercisable
although satisfaction of any vesting condition will not automatically trigger the exercise of the right.
The fair value of the rights is determined using Monte Carlo simulation with reference to the market price and expected share price
volatility of Iron Road Ltd shares at the grant date. Rights are granted under the plan for nil consideration and carry no dividend or
voting rights. Once vested and exercised, any share acquired by participants will rank equally with all existing shares of the same
class.
Should the participants’ employment cease due to genuine redundancy, resignation under reasonable circumstances (if so
determined by the Board), death or invalidity, the unvested performance rights will not lapse and may vest or the performance
criteria may be waived.
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46
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
CAPITAL
15. Reserves and Share-based payments
The following performance rights were granted during the year ended 30 June 2022:
Employee Performance Rights granted to Glen Chipman – rights that vest subject to various performance conditions as follows:
KPI
Grant date
Expiry date
Fair value at
grant date
Balance
at start
of period
Granted
during
the period
Lapsed
during the
period
Balance
at end
of period
Vested and
exercisable at
end of period
30 June 2022
#1
#2
#3
#4
Total
24 August 2021
31 December 2024
$0.161
24 August 2021
31 December 2024
$0.144
24 August 2021
31 December 2024
$0.153
24 August 2021
31 December 2024
$0.153
-
-
-
-
1,080,000
-
1,080,000
1,080,000
720,000
(720,000)
450,000
(450,000)
1,800,000
(1,800,000)
-
-
-
-
-
-
-
4,050,000
(2,970,000)
1,080,000
1,080,000
KPI 1 IRD share price 1 - VWAP for calendar year 2021
of a minimum 20 cents
The table below outlines the inputs used in Monte Carlo fair
valuation of the Employee Performance Rights:
KPI 2 IRD share price 2 - VWAP for July-December 2021
of a minimum 30 cents
KPI 3 Attract non-grain trade value accretive Cape Hardy
port business commitments via respective indicative
agreements
KPI 4 Obtaining initial investment in the Central Eyre Iron
Project (CEIP) from a single partner of no less than
$50 million in relation to a % interest in the CEIP at an
IRD see-through valuation determined substantial and
acceptable by the Board of the Company.
Exercise Price
Right Life
Underlying Share Price
Expected Share Price Volatility
Risk Free Interest Rate
Weighted Average Fair Value
Weighted Average Contractual Life
Nil
3.3 years
$0.195
112.65%
0.02%
$0.154
3.0 years
The following performance rights are on issue at 30 June:
Grant date
Expiry date
30 June 2021
Fair value at
grant date
Balance
at start
of period
Granted
during
the year
Lapsed
during the
year
Exercised
during the
year
Balance
at end
of period
Vested and
exercisable at
end of period
15 March 2021
31 December 2024
$0.214 - $ 0.226
Total
30 June 2022
-
-
10,600,000
10,600,000
-
-
-
-
10,600,000
10,600,000
-
-
15 March 2021
31 December 2024
$0.214 - $ 0.226
10,600,000
-
(7,300,000)
(1,650,000)
1,650,000
1,650,000
24 August 2021
31 December 2024
$0.144 - $ 0.161
-
4,050,000
(2,970,000)
1,080,000
1,080,000
Total
10,600,000
4,050,000
(10,270,000)
(1,650,000)
2,730,000
2,730,000
47
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
CAPITAL
Options
Share Option Plan
The Share Option Plan (“SOP”) was implemented in November
2020 as part of the Group’s remuneration policy to encourage
long term performance and retention of Directors, senior
executives, employees or contractors of the Company or its
associated body corporate. Participants are granted options,
some of which vest on issue and others that vest if certain
market and non-market vesting conditions are met. Options are
granted under the plan for nil consideration, carry no dividend
or voting rights and expire if not exercised within five years from
issue. When exercisable, each option is convertible into one
ordinary share.
Participation in the plan is at the Board’s discretion and no
individual has a contractual right to participate in the Plan or to
receive any guaranteed benefits.
There are no unissued ordinary shares of Iron Road Ltd under
option for directors and KMP as at 30 June 2022.
Cape Hardy Stage I Warrants
In September 2020 Iron Road, Macquarie Capital and Eyre
Peninsula Co-operative Bulk Handling (EPCBH) entered into a
Joint Development Agreement which included the issue of 40
million unlisted Iron Road warrants to Macquarie with vesting
contingent on Financial Close and Commercial Operations
under being achieved for the Cape Hardy Stage I port. An initial
25 million tranche is exercisable from Financial Close with the
second 15 million tranche exercisable from the Commercial
Operations Date (COD). All warrants provide the holder with a
right to acquire shares in Iron Road and had an exercise price
of $0.075 - equivalent to Iron Road’s October 2018 entitlement
offer price - and expiry of 24 months post COD. The exercise
price was reduced to $0.07376 in accordance with the terms
of the warrants following completion of the December 2020
entitlement offer.
Tranche Grant date
Expiry date
30 June 2021
Exercise
price
Fair value
at grant
date
Balance
at start
of period
Granted
during
the year
Lapsed
during
the year
Balance
at end
of period
Vested and
exercisable at
end of period
9 October 2020
24 months from COD $0.07376
$0.132
9 October 2020
24 months from COD $0.07376
$0.132
1
2
Total
-
-
-
25,000,000
15,000,000
40,000,000
30 June 2021
1
2
Total
9 October 2020
24 months from COD $0.07376
$0.132
25,000,000
9 October 2020
24 months from COD $0.07376
$0.132
15,000,000
40,000,000
-
-
-
-
-
-
-
-
-
25,000,000
15,000,000
40,000,000
25,000,000
15,000,000
40,000,000
-
-
-
-
-
-
A total of $83,304 was recognised as Share Based Payment – Cape Hardy Stage I Warrants expense in the year (2021: $1,216,501).
16. Loss per share
Basic earnings per share is calculated by dividing:
the profit attributable to owners of the company,
i)
excluding any costs of servicing equity other than ordinary
shares, and
ii) the weighted average number of ordinary shares
outstanding during the financial year.
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account:
the after income tax effect of interest and other financing
i)
costs associated with dilutive potential ordinary shares, and
ii) the weighted average number of additional ordinary
Basic and diluted
earnings per share
Total basic loss per share
attributable to the ordinary equity
owners of the company (cents)
Total diluted loss per share
attributable to the ordinary equity
owners of the company (cents)
Loss from continuing operations
attributable to the members of the
group used in calculating basic
earnings per share ($)
2022
2021
(0.51)
(0.74)
(0.51)
(0.74)
(4,025,955)
(5,435,595)
shares that would have been outstanding, assuming the
conversion of all dilutive potential ordinary shares.
Weighted average number of shares used as the denominator
is 795,453,025 (2021: 736,636,637).
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48
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL INFORMATION
17. Remuneration of auditors
18. Accounting policies
During the year ended 30 June 2022, total fees paid or payable
for services provided by PricewaterhouseCoopers and its
related practices were as follows:
PricewaterhouseCoopers
(Australia)
2022
$
2021
$
Total remuneration for audit and other
assurance services
79,634
72,709
Total remuneration for tax services
5,100
5,100
Total remuneration of
PricewaterhouseCoopers
(Australia)
84,734
77,809
It is the Group’s policy to employ PricewaterhouseCoopers
(PwC) on assignments additional to their statutory audit duties
where PwC expertise and experience is important. These
assignments are principally audit and assurance services and
taxation advice. PwC is awarded assignments on a competitive
basis and it is the Group’s policy to seek competitive tenders for
all major projects.
Summary of significant accounting policies
The principal accounting policies adopted in the preparation
of these consolidated financial statements are set out below.
These policies have been consistently applied to all the years
presented, unless otherwise stated. The financial statements
are for the consolidated entity consisting of Iron Road Ltd and
its controlled entities. The financial statements were authorised
for issue by the directors on 20 September 2022. The directors
have the power to amend and reissue the financial statements.
(a) Basis of preparation of historical
financial information
These general purpose financial statements have been
prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting
Standards Board and the Corporations Act 2001. Iron Road
Ltd is a for-profit entity for the purpose of preparing the
financial statements. Iron Road Ltd is a company limited by
shares, incorporated and domiciled in Australia. The financial
statements are presented in Australian Dollars.
(i) Compliance with IFRS
The consolidated financial statements of Iron Road Ltd
also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards
Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared under the
historical cost convention.
(iii) Critical accounting estimates
The preparation of financial statements requires the use
of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of
applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statement are disclosed in Note 18(h).
(iv) Going concern
For the year ended 30 June 2022 the Group experienced a loss
of $4,025,955. In addition, it is noted that combined operating
and investing cash outflows of $4,230,789 were incurred during
the year ended 30 June 2022. The Group currently has no cash
generating assets in operation and $1,894,350 of available cash
at 30 June 2022.
49
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL INFORMATION
In addition to the second investment placement of $1.25 million
with Bulk Commodity Holdings LLC. (Note 9) the continuing
viability of the Group and its ability to continue as a going
concern and meet its debts and commitments as they fall due
is dependent on the Group being successful in:
1) raising further funds through a placement or entitlement
offer; and/or
2) funding from a project partner.
As a result of these matters, there is a material uncertainty that
may cast significant doubt on the Group’s ability to continue as
a going concern and, therefore, that it may be unable to realise
its assets and discharge its liabilities in the normal course of
business. However, the directors believe that the Group will be
successful in implementing a combination of the above matters
and, accordingly, have prepared the financial report on a going
concern basis.
(v) New and amended standards adopted by the Group
There are no standards that are not yet effective and that would
be expected to have a material impact on the Group in the
current or future reporting periods and on foreseeable future.
(vi) New standards and interpretations not yet adopted
There are no new standards that are not yet effective and that
would be expected to have a material impact on the Group in
the current or future reporting periods and on foreseeable future
transactions.
(b) Principles of consolidation
The consolidated financial statements incorporate the assets
and liabilities of all controlled entities of Iron Road Ltd as at 30
June 2022 and the results of all controlled entities for the year
then ended. Iron Road Ltd and its controlled entities together
are referred to in this financial report as the Group.
Controlled entities are all entities (including special purpose
entities) over which the Group has control. The Group controls
an entity when the Group 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.
Controlled entities are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated
from the date that control ceases.
The acquisition method of accounting is used to account
for business combinations by the Group. Intercompany
transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence
of the impairment of the asset transferred. Accounting policies
of controlled entities have been changed where necessary to
ensure consistency with the policies adopted by the Group.
c) Goods and service tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or
as part of the expense. Receivables and payables are stated
inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation
authority is included with other receivables or payables in the
balance sheet. Cash flows are presented on a gross basis.
The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the
taxation authority, are presented as operating cash flows.
d) Investment and other financial assets
The Group classifies its financial assets as loans and
receivables. Management determines the classification of its
investments at initial recognition. Financial assets are initially
measured at fair value plus transaction costs that are directly
attributable to the acquisition of the financial asset. For loans
and receivables, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present
value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial
asset’s original effective interest rate.
The Group assesses at the end of each reporting period
whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or a
Group of financial assets is impaired and impairment losses
are incurred only if there is objective evidence of impairment
as a result of one or more events that occurred after the initial
recognition of the asset (a ‘loss event’) and that loss event (or
events) has an impact on the estimated future cash flows of the
financial asset or Group of financial assets that can be reliably
estimated.
e) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the
functional currency’). The consolidated financial statements are
presented in Australian dollars, which is Iron Road’s functional
and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions are recognised in profit or
loss.
IRON ROADANNUAL REPORT 2022OVERVIEWCHAIRMAN'S LETTEROPERATIONS REPORTOPERATING AND FINANCIAL REVIEWFINANCIAL STATEMENTSDIRECTORS' REPORTSIGNED REPORTSASX INFORMATION12345678
50
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL INFORMATION
f) Revenue recognition
19. Risk management
Interest income on bank term deposits is calculated on the term
of the deposit and the bank interest rate at lodgement date and
accrued in revenue from continuing operations.
g) Leases
As a lessee the Group will recognise a right-of-use
asset, representing its right to use the underlying asset,
and a lease liability, for all leases with a term of more
than 12 months; exempting those leases where the
underlying asset is deemed to be of a low value.
The Group recognises a right-of-use asset and a lease liability
at the lease commencement date, i.e. when the underlying
asset is first available for use. The right-of-use asset is initially
measured to be equal to the lease liability and adjusted for
any lease incentives received, initial direct costs and estimates
of costs to dismantle or remove the underlying leased asset.
Subsequently the right-of-use asset is measured at cost less
any accumulated depreciation and impairment losses, and
adjusted for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the
lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Group’s incremental
borrowing rate, adjusted for asset-specific factors. The lease
liability is subsequently increased by the interest cost on the
lease liability and decreased by lease payments made.
h) Critical accounting estimates and judgements
Estimates and judgements are continually evaluated
and are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the entity and that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning
the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The
estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year are
discussed in Note 2. Exploration and evaluation assets.
Counterparties without an external credit rating:
Financial assets with no default in the past
Cash at bank and fixed term deposits with a credit rating:
AA-
Total
The Group’s activities expose it to a variety of financial and
market risks (including interest rate risk and price risk), credit
risk and liquidity risk. The Group’s overall risk management
program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial
performance of the Group.
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management
framework. Management monitors and manages the financial
risks relating to the operations of the Group through regular
reviews of the risks, to minimise potential adverse effects on the
financial performance and position of the Group.
a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer
or counterparty to a financial asset fails to meet its contractual
obligations and arises principally from the Group’s receivables,
cash and cash equivalents and bank term deposits.
The maximum exposure to credit risk at the end of the reporting
period is the carrying amount of each class of cash and cash
equivalent and bank term deposit.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents
the maximum credit exposure. There are no significant
concentrations of credit risks, whether through exposure to
individual customers or specific industry sectors. The Group’s
maximum exposure to credit risk at the reporting date was
$1,989,222 (2021: $4,887,025).
The credit quality of financial assets that are neither past
due not impaired can be assessed by reference to external
credit ratings (if available) or to historical information about
counterparty default rates.
Financial assets that are neither past due nor impaired are as
follows:
2022
$
2021
$
49,872
94,080
1,939,350
1,989,222
4,792,945
4,887,025
51
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
ADDITIONAL INFORMATION
b) Liquidity risk
c) Market risk
Liquidity risk is the risk that the Group will not be able to meet
its financial obligations as they fall due. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it
will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s
reputation.
Market risk is the risk that changes in market prices, such
as foreign exchange rates and interest rates which will affect
the Group’s income or the value of its holdings of financial
instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable
parameters, while optimising returns. The following market risk
exposures have been assessed:
The Group manages liquidity risk by maintaining adequate
reserves and continuously monitoring forecast and actual cash
flows.
Typically, the Group ensures that it has sufficient cash on
demand to meet expected operational expenses for a period
of 60 days, including the servicing of financial obligations. This
excludes the potential impact of extreme circumstances that
cannot reasonably be predicted, such as natural disasters.
The Group received $1,250,000 in subscriptions to be settled
during the year with a balance at 30 June 2022 of $924,400 –
See note 9 (2021: nil). A further $1,250,000 is expected to be
received from October 2022.
The following are the contractual maturities of undiscounted
financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
(i) Currency risk
The Group operates in Australian dollars with infrequent and
low value transactions in other currencies. Such transactions
present immaterial currency risk.
(ii) Interest rate risk
Exposure arises from assets bearing variable interest rates.
With consideration of the cash balance at 30 June 2022 and the
Group’s intention to hold fixed rate assets to maturity, the impact
of interest rate risk is considered to be immaterial.
(iii) Price Risk
Changes in commodity prices may impact the Group’s
projected cash flows in future years and may impact the
assessment of the carrying value of its assets. However, given
the company is not yet in production, changes in commodity
prices do not currently impact the Group’s profit or loss or its
cash flows.
d) Capital risk management
The Group’s objectives when managing capital are to safeguard
their ability to continue as a going concern.
There were no changes to the Group’s approach to capital
management during the year. The Group is not subject to
externally imposed capital requirements.
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Contractual maturities of financial liabilities
Less than 6 months
Total contractual cash flows
Carrying amount
At 30 June 2022
Trade and other payables
Total non-derivatives
At 30 June 2021
Trade and other payables
Total non-derivatives
There are no derivative financial instruments.
609,733
609,733
1,212,609
1,212,609
609,733
609,733
1,212,609
1,212,609
609,733
609,733
1,212,609
1,212,609
IRON ROADANNUAL REPORT 2022OVERVIEWCHAIRMAN'S LETTEROPERATIONS REPORTOPERATING AND FINANCIAL REVIEWFINANCIAL STATEMENTSDIRECTORS' REPORTSIGNED REPORTSASX INFORMATION12345678
52
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
For the year ended 30 June 2022
21. Contingencies
There are no material contingent liabilities or contingent assets
of the Group at reporting date.
22. Events after reporting date
No matters or circumstances have arisen since 30 June 2022
that have significantly affected the Group’s operations, results or
state of affairs.
UNRECOGNISED ITEMS
20. Commitments
Mining tenements
All of the Group tenements are situated in the South
Australia. In order to maintain an interest in mining and
exploration tenements, the Group is committed to meet the
conditions under which the tenements were granted. The
timing and amount of exploration expenditure commitments
and obligations of the Group are subject to the minimum
expenditure commitments required as per the Mining Act 1971.
The following obligations are not provided for in the financial
report:
Exploration and mineral
expenditure commitments
Within one year
Later than one year
but no later than five years
Total exploration
expenditure commitments
2022
$
2021
$
66,667
652,540
132,158
-
198,825
652,540
The Group’s interest in mining and exploration tenements is
as follows:
South Australia
Tenement
Reference
Warramboo
ML6467
Lock
Mulgathing
EL5934
EL6425
EL6012
EL6173
EL6502
EL6532
EL5767
EL5998
EL6569
Interest
100%
100%
100%
100% Iron Ore rights
100% Iron Ore rights
100% Iron Ore rights
100% Iron Ore rights
100% Iron Ore rights
90% Iron Ore rights
90% Iron Ore rights
Lease commitments
The Group’s entered into a month to month lease on its new
office in Adelaide in January 2019. Consequently, the total
commitments for minimum payments in relation to operating
leases for the year ended 30 June 2022 were nil (2021: nil).
Capital commitments
There were no outstanding contractual commitments as at
30 June 2022 (2021: nil).
DIRECTORS' DECLARATION
Iron Road Limited and its Controlled Entities
The directors’ of the Group declare that:
1. The consolidated financial statements, comprising the consolidated income statement and statement of
comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity,
consolidated statement of cash flows and accompanying notes are in accordance with the Corporations Act 2001
and:
a) comply with Accounting Standards, the Corporations Regulations 2001
and other mandatory professional reporting requirements; and
b) give a true and fair view of the Group’s financial position as at 30 June 2022
and of its performance for the financial year ended on that date.
2. In the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable.
3. The remuneration disclosures included in the directors’ report (as part of audited Remuneration Report), for the
year ended 30 June 2022, comply with section 300A of the Corporations Act 2001.
4. The directors’ have been given the declarations by the chief executive officer and finance manager required by
section 295A of the Corporations Act 2001.
5. The Group has included in the notes to the consolidated financial statements an explicit and unreserved statement
of compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board.
This declaration is made in accordance with a resolution of the Board of directors and is signed for and on behalf of
the directors by Peter Cassidy.
Peter Cassidy
Chairman
20 September 2022
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INDEPENDENT AUDITOR'S REPORT
Independent auditor’s report
To the members of Iron Road Ltd
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Iron Road Ltd (the Company) and its controlled entities (together
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
financial performance for the year then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
•
•
•
•
•
•
the consolidated statement of financial position as at 30 June 2022
the consolidated income statement and statement of comprehensive income for the year then
ended
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & 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.
PricewaterhouseCoopers, ABN 52 780 433 757
Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001
T: +61 8 8218 7000, F: +61 8 8218 7999
Liability limited by a scheme approved under Professional Standards Legislation.
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INDEPENDENT AUDITOR'S REPORT
Material uncertainty related to going concern
We draw attention to Note 18(a)(iv) in the financial report, which indicates that the Group incurred a
loss for the year ended 30 June 2022 of $4,025,955. In addition, it is noted that combined operating
and investing cash outflows of $4,230,789 were incurred during the year ended 30 June 2022. The
Group currently has no cash-generating assets in operations and with $1,894,350 of available cash at
balance date required additional future funding as detailed in Note 18(a)(iv). These conditions, along
with other matters set forth in Note 18(a)(iv), indicate that a material uncertainty exists that may cast
significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in
respect of this matter.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
Key audit matters
•
•
•
Our audit focused on where the
Group made subjective
judgements; for example,
significant accounting estimates
involving assumptions and
inherently uncertain future events.
Our audit focused on where the
Group made subjective
judgements; for example,
significant accounting / estimates
involving assumptions and
inherently uncertain future events.
The Group’s accounting
processes are performed at their
head office in Adelaide, which is
where we performed our audit
procedures.
•
•
Amongst other relevant topics, we
communicated the following key
audit matters to the Audit and Risk
Committee: Carrying value of
exploration and evaluation assets
(Refer to note 2)
These are further described in the
Key audit matters section of our
report, except for the matter which
is described in the material
uncertainty related to going
concern section.
•
For the purpose of our audit we
used overall Group materiality of
$1,356,000, which represents
approximately 1% of the Group’s
total assets.
• We applied this threshold,
together with qualitative
considerations, to determine the
scope of our audit and the nature,
timing and extent of our audit
procedures and to evaluate the
effect of misstatements on the
financial report as a whole.
• We chose Group total assets
because, in our view, it is the
metric against which the
performance of the Group is most
commonly measured given it is an
exploration and evaluation
company that has no production
or sales.
• We utilised a 1% threshold based
on our professional judgement,
noting it is within the range of
commonly accepted thresholds in
the mining industry.
INDEPENDENT AUDITOR'S REPORT
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matter was addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on this matter. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matter to the
Board.
In addition to the matter described in the Material uncertainty related to going concern section, we
have determined the matter described below to be the key audit matter to be communicated in our
report.
Key audit matter
How our audit addressed the key audit matter
Carrying value of exploration and evaluation
assets
(Refer to note 2)
As at 30 June 2022 the Group holds
$123,096,527 in exploration and evaluation
assets on its balance sheet.
The Group accounts for exploration and
evaluation activities in accordance with the
policy in note 2 of the financial report. The
amount recorded at balance date relates entirely
to the Group’s Central Eyre Iron Project (CEIP).
Judgement is required by the Group to
determine whether there were indicators of
impairment of the exploration and evaluation
assets, due to the need to make estimates about
future events and circumstances, such as
whether the resources may be economically
viable to develop in the future. The carrying
value of exploration and evaluation assets was
considered a key audit matter given the size of
the balance recorded on the consolidated
statement of financial position at 30 June 2022
and the fact that determination of the balance
involves significant judgement made by the
Group as outlined above.
We performed the following procedures:
•
•
•
•
evaluated the Group’s assessment that
there had been no indicators of
impairment during the current period
with reference to the requirements of
Australian Accounting Standards.
considered the latest available
information regarding the CEIP through
inquiries of management and the
directors, and review of press releases.
inquired of management and the
directors as to whether there had been
any changes to, and obtained evidence
to support, the Group’s right of tenure to
the CEIP. This includes identifying the
licence status recorded by the South
Australian Department of State
Development.
evaluated disclosures made in the
financial statements in light of Australia
Accounting Standards.
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INDEPENDENT AUDITOR'S REPORT
Other information
The directors are responsible for the other information. The other information comprises the
information included in the 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 and will not
express an opinion or 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 on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or 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 the 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:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
INDEPENDENT AUDITOR'S REPORT
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 18 to 24 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the remuneration report of Iron Road Ltd 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.
PricewaterhouseCoopers
M. T. Lojszczyk
Partner
Adelaide
20 September 2022
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ASX ADDITIONAL INFORMATION
For the year ended 30 June 2022
Additional information required by the Australian Securities Exchange Ltd and not shown elsewhere in this report is shown below.
All information is current as at 31 August 2022.
Distribution of equity securities
Analysis of number of equity security holders by size of holding:
Spread of holding
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and over
Total holders
Total securities
Number of
holders
Shares
held
Percentage of ordinary
fully paid shares
Unquoted
rights
Unquoted
warrants
171
676
371
812
212
2,242
60,562
2,083,036
2,953,047
26,064,045
768,700,614
0.01%
0.26%
0.37%
3.26%
96.10%
-
-
-
-
6
6
-
-
-
-
1
1
799,861,304
100.00%
9,461,000
40,000,000
All unquoted warrants are held by Macquarie Corporate Holdings Pty Limited.
There are 600 holders of less than a marketable parcel of ordinary shares (calculated at 14.5 cents per share).
Twenty largest shareholders
Substantial shareholder
The names of the twenty largest shareholders of quoted ordinary shares are:
Holder name
Shares
held
Percentage of
ordinary fully
paid shares
These substantial shareholders have notified the
company in accordance with section 671B of the
Corporations Act 2001 (Cth):
1 Sentient Executive GP IV Limited
496,989,991
62.13%
Shares held
2 HSBC Custody Nominees (Australia) Limited
90,228,873
11.28%
3 Sentient Executive GP III Limited
4 Sentient Executive GP II Limited
5
JEM Investment Fund Holdings Pty Ltd
6 DEVIPO Pty Ltd
7 Cedarose Pty Ltd
8 SEISUN Capital Pty Ltd
9 CM & SM Anderson
10 Geoffrey John Paul
11 BNP Paribas Nominees Pty Ltd
12 Citicorp Nominees Pty Limited
51,558,593
29,131,005
7,255,118
6,898,785
5,724,314
4,714,577
3,639,535
3,100,000
2,947,664
2,700,377
13 HSBC Custody Nominees (Australia) Limited - A/C 2
2,543,484
14 Glen Anthony Chipman
15 BNP Paribas Noms Pty Ltd
16 Jonathan James Kent
17 Bond Street Custodians Limited
18 Claire Margaret Stocks
19 Andrew James Stocks
20 Frazel Pty Limited
1,789,535
1,696,859
1,602,000
1,560,037
1,442,657
1,442,656
1,323,418
6.45%
3.64%
0.91%
0.86%
0.72%
0.59%
0.46%
0.39%
0.37%
0.34%
0.32%
0.22%
0.21%
0.20%
0.20%
0.18%
0.18%
0.17%
Total
718,289,478
89.82%
Sentient Executive GP II, Limited
29,131,005
Sentient Executive GP III, Limited
51,558,593
Sentient Executive GP IV, Limited
496,989,991
Total holding
577,679,589
Voting rights
All ordinary shares are fully paid and carry one vote
per share without restriction.
There are no voting rights attaching to unquoted
performance rights and warrants on issue.
Buy back
There is no current on-market buy-back.