Jameson Resources Limited
and controlled entities
ACN 126 398 294
Annual Report
For the Year Ended 30 June 2020
CONTENTS
Company Directory
Chair and Executive Director’s Letter
Highlights and Challenges
Strategic Overview
Asset Overviews
Crown Mountain Hard Coking Coal Project
Dunlevy Metallurgical Coal Project
Directors’ Report
Auditor’s Signed Reports
Financial Report
Financial Statements
Notes to the Consolidated Financial Statements
Directors’ Declaration
Other information
Additional Shareholder Information
Schedule of Mineral Tenements
3
4
5
6
8
17
18
29
34
35
39
66
68
70
2
CORPORATE DIRECTORY
Jameson Resources Limited is an Australian listed company focused on the development of the Crown
Mountain Hard Coking Coal Project, located in British Columbia, Canada. Jameson also owns tenements
for the Dunlevy Coal Project, also based in British Columbia. For more details visit
www.jamesonresources.com.au.
The Company was established in 2007, and its headquarters are in West Perth, Western Australia. Current
relevant information is as follows:
DIRECTORS
Ms Nicole Hollows
(Non-Executive Chairman)
Mr Joel Nicholls
(Executive Director)
Mr Steve van Barneveld
(Non-Executive Director)
COMPANY SECRETARY
Ms Pennee Osmond
REGISTERED OFFICES
Australia
Jameson Resources Limited
Suite 5,62 Ord Street
WEST PERTH WA 6008
Telephone: + 61(8) 9200 4473
Facsimile: + 61(8) 9200 4463
Canada
NWP Coal Canada Ltd
Suite 810, 789 West Pender St
VANCOUVER BC V6C 1H2
Telephone: +1(604) 629 8605
AUDITORS
HLB Mann Judd
(WA Partnership)
Level 4,130 Stirling Street
PERTH WA 6000
SHARE REGISTRAR
Automic Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
GPO Box 5193,
Sydney, NSW 2000
Telephone: 1300 288 664 (within Australia)
Email: hello@automic.com.au
SECURITIES EXCHANGE LISTING
Australian Securities Exchange Limited
(Home Exchange: Perth, Western Australia)
Code: JAL
3
CHAIR and EXECUTIVE DIRECTOR’S LETTER
Dear Shareholder,
Jameson
Resources
The past year has been a significant year for your
Company,
Limited
(“Jameson” or “the Company”) in progressing the
Crown Mountain Hard Coking Coal Project
through the evaluation phase, with the release of
the results of the Crown Mountain Hard Coking
Coal Project Bankable Feasibility Study (“BFS”)
and furthering the Environmental Assessment
Certificate Application (“EA Application”), moving
the Project closer to Final Investment Decision
(“FID”) and ultimately development. It has been a
year of highlights and challenges
that has
included a change in leadership.
The Company is proud to have been able to
continue to advance its Crown Mountain Hard
Coking Coal Project against an overall
challenging macroeconomic backdrop. The past
nine months has seen increased levels of volatility
across global equity markets as a result of the
negative
impact and heightened uncertainty
COVID-19 has had on global economies. This
impact was also felt on metallurgical coal prices.
Despite these challenges at a macroeconomic
level, the Company has continued to monitor the
external environment whilst maintaining
its
commitment to progressing the evaluation and
permitting of the Crown Mountain Hard Coking
Coal Project (“Crown Mountain”).
A number of the highlights included the release of
the BFS results from the Company’s Crown
Mountain Hard Coking Coal Project in July 2020,
furthering the EA Application toward a March
quarter 2021 submission, continued engagement
with Regulators and key stakeholders including
Provincial and Federal regulators and the Ktunaxa
Nation Council (“KNC”), broadening of
the
Company’s strategy and successfully undertaking
a placement to new and existing shareholders to
raise $4.7 million. With these funds now secured
the Company is working toward the submittal of
the EA Application, the culmination of more than
six years of environmental baseline and permitting
work that commenced in 2014 with the Project
Description and has seen the successful receipt
of the Application Information Requirements in
2018, a document that prescribes how the
proponent is to undertake the EA Application.
Despite the highlights, the year hasn’t been
without its challenges which have included the
impacts COVID-19 has had on the way the
Company and its consultants undertake their
work, the impact COVID-19 has had on global
economies and the associated impacts on equity
and metallurgical coal markets, the Company
being advised by Joint Venture partner in Crown
Mountain, Bathurst Resources Limited, that they
would be pro-rata funding their share of project
costs from 1 July 2020, and the lack of precedents
relating
to cumulative effects assessments
throughout the Elk Valley. Crown Mountain is one
of the first proponents to undertake the cumulative
effects assessments process and whilst
challenging due
lack of precedents,
the
Jameson has had the opportunity to demonstrate
its commitment to being responsible and working
together with Regulators and the KNC.
to
in March 2020. Since March
The Company has seen a smooth transition with
the change in leadership with Nicole Hollows
being appointed Chair and Joel Nicholls Executive
Director
the
Company has sought
to better define and
articulate its purpose and vision of becoming an
independent, growth oriented metallurgical
coal developer
focused on delivering
sustainable outcomes. The implementation of
the Company’s strategy involves furthering the
Crown Mountain Hard Coking Coal Project
through
toward
the evaluation phase and
development, while looking to potential acquisitive
growth opportunities after the EA Application for
Crown Mountain is submitted in March 2021
quarter. The strategy is underpinned by our
values and implementing strategies with strong
stakeholder engagement to achieve growth
sustainably and being commercially focused
with a continuous improvement mindset, working
together with all stakeholders to deliver our
projects responsibly and sustainably.
The Company looks forward to the year ahead
where it will look to progress Crown Mountain
along the development curve by optimising the
economics of certain areas identified in the BFS,
submit the EA Application and further discussions
with strategic and end users, in addition to
commencing the search for other potential assets
and look to build out a team to complement the
existing skillset the Company has to ensure sound
execution of the defined corporate strategy.
Nicole Hollows
Chairman
21 September 2020
Joel Nicholls
Executive Director
21 September 2020
4
HIGHLIGHTS AND CHALLENGES
Highlights and Challenges
The past year has seen Jameson Resources
Limited (“JAL or the Company”) experience its
share of highlights and challenges in an overall
challenging macroeconomic backdrop with
increased levels of volatility across global equity
markets as a result of the negative impact COVID-
19 has had on global economies and metallurgical
coal prices.
Highlights
The highlights for the past year have included:
• Release of the Crown Mountain Hard Coking
Coal Bankable Feasibility Study (“BFS”)
demonstrating an economically robust, high
quality hard coking coal mine with a 15 year
mine life
• Furthering
the
Mountain
Environmental
Certificate
Application (“EA Application”) submission,
that is on track for March 2021 quarter
Crown
Assessment
• Continued engagement with regulators and
key stakeholders including Provincial and
Federal regulators and the Ktunaxa Nation
Council (“KNC”)
through
shareholders
focus
by
• Development and broadening of our strategy,
including a strategic roadmap to deliver value
on
to
implementing
being
strategies
commercially focused with strong stakeholder
engagement to achieve growth sustainably.
The focus is initially to progress our Crown
Mountain Hard Coking Coal Project with
submission of the EA Application in March
2021 quarter and then consider value add
acquisitive growth opportunities whilst
approvals are being progressed
• Undertaking a successful placement capital
raising to new and existing shareholders to
further progress the Crown Mountain Hard
Coking Coal Project’s EA Application and
undertake a number of optimisation activities
identified through the BFS process that are
expected to further enhance the execution
and economics of the Project.
Challenges
While there were a number of highlights, the past
year has also seen its share of challenges that
have included:
• The impact of COVID-19 on the way the
Company, its employees and contractors and
consultants execute their work
• The adverse impact that COVID-19 and
broader global economics has had on
coal markets,
seaborne metallurgical
impacting sales price with many countries
reducing imports due to the lack of demand
for steel products throughout the global
economic downturn that was experienced
throughout H1 2020
Joint Venture partner Bathurst Resources
Limited (“Bathurst or BRL”) advising JAL that
they would exercise their discretion and pro-
rata funding costs from FY21 onwards until
Final Investment Decision where Bathurst
has the option to exercise its discretion in
relation
the Tranche Two Option
to
(C$107.4m remaining)
•
• A critical part of the EA Application is to
assess the cumulative effects throughout the
Elk Valley, whilst challenging due to the lack
of precedents, has provided an opportunity
for Jameson to demonstrate its commitment
to being responsible and working together
with Regulators and the First Nations.
Despite these challenges, the Company has
continued to monitor the external environment
whilst maintaining its commitment to progressing
the evaluation and permitting of the Crown
Mountain Hard Coking Coal Project, continuing to
drive it closer to Final Investment Decision (“FID”)
and ultimately development.
5
STRATEGIC OVERVIEW
Strategic Overview
Corporate Strategy
The Company has been developing a broader
corporate strategy, including a strategic roadmap
to maximise the opportunity to deliver value to
shareholders through the development of the
Company’s existing asset, Crown Mountain, but
will also
future
opportunities to provide asset diversification.
the assessment of
include
This involved defining the Company’s Purpose
being the reason Jameson exists, with three key
strategic objectives developed to keep focus on
key deliverables aligned to deliver the Purpose, all
underpinned by
the way Jameson will do
business, being its Values.
Purpose
independent,
An
oriented
metallurgical coal developer focused on
delivering sustainable outcomes
growth
Strategic Objectives
o Commercially Focused
o Grow Sustainably
o Stakeholders Engaged
Values
o Focused and Agile
o Being Responsible
o Working Together
Jameson will deliver value through development
of its Crown Mountain Hard Coking Coal Project
and consider acquisitive growth opportunities
after the Environmental Assessment Certificate
Application (“EA Application”) submission for the
Crown Mountain Project in March 2021 quarter,
by
with strong
stakeholder engagement by being open and
transparent,
Jameson will be commercial and focused by being
focused and agile, with a continuous improvement
mindset, working together with all stakeholders to
deliver its projects responsibly and sustainably.
to achieve growth sustainably.
implementing strategies
Strategic Objectives in context
Our three strategic objectives can be described as
follows:
• Commercially focused - engaged people
with a mindset of continuous improvement to
be a safe, efficient and low cost producer that
optimises the value of our assets
• Grow Sustainably – a focus on long term
sustainable development through investing in
our people, progressing organic and future
M&A growth opportunities along
the
development curve whilst managing our
environmental impact
• Stakeholders Engaged
- Open and
transparent, mutually rewarding relationships
with our people, our customers, our
shareholders and the communities in which
we operate
Jameson has developed strategic goals for each
of these three strategic objectives which are
depicted
Key
performance indicators will be developed each
year to align with these goals and objectives to
enable the Company to deliver on its Purpose.
the strategic
roadmap.
in
In order to execute on the Company’s strategy of
moving Crown Mountain through evaluation and
into development, whilst also assessing other
potential opportunities, the Company needs to
build a team to complement the existing skillset
and provide a solid foundation from which it can
capitalise on the opportunities as they arise.
The Company intends to actively seek value add
investment opportunities that leverage off the
strengths of Jameson whereby value can be
added through progression along the value curve
(as depicted in the value curve on the next page)
and/or providing an agile and focused approach to
optimising value if in the operational phase.
Growth in perspective
The Company has given consideration to what it
deems acceptable parameters for identification of
potential opportunities to ensure the strategy is
executed with a well defined criteria that enables
value to be delivered whilst attempting to minimise
project associated risk. The defined parameters
include a focus to the following assets:
•
•
• metallurgical coal assets, with Hard Coking
Coal (‘HCC”) as the preference, an area the
Company believes it can add value
high quality, high margin or low-cost
those located in developed nations with low
sovereign risk, with a preference to Canadian
and Australian assets given existing
knowledge and expertise and lower risk
jurisdictions
a preference
resources
extractable via open cut methods
those proximate
infrastructure with latent capacity
projects that have commenced the evaluation
process, to mitigate risk and ensure any
to existing established
that are
for
•
•
•
6
STRATEGIC OVERVIEW
potential project is sufficiently up the value
curve (see schematic below)
to ensure
exploration and technical risk are minimised,
whilst being closer to production to maximise
potential shareholder value.
Project Value Curve
Strategic Roadmap
We will deliver value through development of our Crown Mountain Project (‘CMP’) in BC, Canada and acquisitive growth opportunities
after the EA submission for CMP in March 2021 quarter, by implementing strategies with strong stakeholder engagement and open
and transparent communications, to achieve growth sustainably. We will be commercially focused by being focused and agile, with
a continuous improvement mindset, working together with all stakeholders to deliver our projects responsibly and sustainably.
OUR
PURPOSE
STRATEGIC
OBJECTIVES
KEEP US
FOCUSED ON
WHAT WE
NEED TO
DELIVER TO
ACHIEVE OUR
PURPOSE
OUR VALUES
ARE THE
FOUNDATI ON OF
HOW WE WORK
An independent, growth oriented metallurgical coal
developer focused on delivering sustainable outcomes
COMMERCIALLY
FOCUSED
OPERATE SAFELY
COST FOCUSED
CONTINUOUSLY IMPROVE
BE EFFICIENT
GROW
SUSTAINABLY
GROW TALENT
DEVELOP AND OPERATE
SUSTAINABLY
INVEST IN NEW PROJECTS
OPTIMISE ASSETS
STAKEHOLDERS ENGAGED
OUR PEOPLE MATTER
VALUED COMMUNITY
PARTNER
DELIVER TO CUSTOMERS
OPTIMISE SHAREHOLDER
RETURNS
Focused and
agile
Being
responsible
Working
together
7
ASSET OVERVIEW
Asset Overview
Jameson owns interests in two coal projects,
Crown Mountain and Dunlevy, both located in
British Columbia, Canada.
Figure 1 below is a location map of both projects.
Figure 1: Project Locations
Crown Mountain
Overview
Ownership: 90% owned NWP Coal Canada Ltd
77.8% ownership of NWP Coal
Canada Ltd by Jameson
their shareholding
Bathurst exercised their Tranche
One Option in September 2019,
increasing
in
NWP, which holds Crown Mountain,
to 20 percent. BRL advanced
C$2.6m to NWP during the period
the Tranche Two Option
under
Advance
in BRL
resulted
earning an additional 2.2 percent of
NWP via Class B Preference shares
(Jameson holds the remaining 77.8
percent interests).
that
Commodity: Hard Coking Coal and PCI
Location: Elk Valley, British Columbia
The Crown Mountain Hard Coking Coal Project is
a high quality coking coal opportunity
for
development located in the Elk Valley, British
Columbia. It is situated between two of Teck
Resources operating mines - ~11km from Line
Creek and ~8km from Elkview. The Project is
proximate to existing common user rail that
accesses three deep water ports on the West
Coast of Vancouver, Canada.
The Crown Mountain Hard Coking Coal Project
has been advanced through exploration and coal
quality work, Preliminary Economic Assessment,
a Pre-Feasibility Study completed in 2014, an
Updated Pre-Feasibility in 2017 and the release
of the Bankable Feasibility Study (“BFS”) on 9 July
2020.
The Crown Mountain BFS included the following
highlights:
• Robust economic outcomes including a pre-
tax NPV(10) of US$376m and IRR of 36.4%,
assuming purchase of the mobile equipment,
workshops and ancillary infrastructure
represents a compelling high quality coking
coal opportunity for development with a
•
8
ASSET OVERVIEW
•
competitive operating and capital cost
structure and access to existing common user
rail and port infrastructure
high quality low volatile (‘LV’) metallurgical
coal, with the Life of Mine (“LOM”) product mix
being 86% Hard Coking Coal (“HCC”) and
14% Pulverised Coal Injection (“PCI”) coal
• The mine plan is based on an average LOM
production rate of 1.7 Mtpa of saleable coal,
57.5 Mt Total Run of Mine (“ROM”) from the
North, East and South pits over 15 years.
The Bankable Feasibility Study has also identified
a number of areas of potential optimisation that
the Company intends to assess in order to
maximise the economic outcomes whilst finalising
the EA Application.
The Crown Mountain Hard Coking Coal Project
(“Crown Mountain”) has resources of 90.2Mt,
including 66.5Mt in the Measured and Indicated
category across three pits – North, East and South
pits. There is 23.7Mt of inferred resource in the
the
Southern Extension
aforementioned pits that could provide additional
organic growth through either extension of mine
life or annual production, however requires
additional work to upgrade the resource category,
determine
the coal quality and understand
production costs.
that sits outside
The HCC quality in the North and East pits is
comparable to the seaborne Low Volatile Matter
(“LV”) Premium HCC Benchmark and is expected
to achieve this benchmark pricing. The HCC
quality in the South Pit is expected to receive a
10% discount to the LV Premium HCC Benchmark
as a result of a lower Coke Strength after Reaction
(“CSR”) and higher phosphorous than that in the
North and East pits.
The PCI is a Low to Mid Volatile PCI coal that
compares favourably with the Australian Low to
Mid Volatile PCI coals on the basis of ash,
sulphur, carbon content and calorific value which
are the key determinants in coke replacement
ratio. Crown Mountain PCI coal’s coke
replacement ratio is similar to that achieved by
the LV PCI coals produced in Australia.
The defined mining parameters established by
the BFS include average annual production of 1.7
Million Tonnes Per Annum (“Mtpa”) over the life
of mine. The Project has a favourable Run-of-
Mine (“ROM”) strip ratio 4.7:1 BCM:ROM tonnes
and an average plant yield of 48.7%. The first four
years of mining occurs in the North and East pits
which is lower ROM strip ratio of 4.1 BCM:ROM
tonnes and higher yield (61.2%), producing up to
2.3 Mtpa. The mine then progresses to the South
Pit which is mined from the South to the North.
The Project has been progressing
the
environmental permitting of the Project since 2014
receipt of
Application
the successful
that commenced with the Project Description,
followed by
the
Application Information Requirements (“AIR”) in
2018 that forms the basis for Environmental
Assessment Certificate
(“EA
Application”). The Company is on track to submit
the EA Application in the March quarter 2021 with
all baseline work, terrestrial modelling, ground
water and surface water modelling completed.
Other studies are well advanced covering air
dispersion, noise, and human health and
ecological studies. The modelling approach and
completed models have been the subject of
ongoing engagement with Regulators, both
Provincial and Federal, and First Nations. The
pre-submittal engagement has been used to
communicate
results of
modelling and the associated quantification of
impacts, proposed mitigation and offsets. The use
of a quantitative approach to addressing terrestrial
modelling, rather than simple engagement of
subject matter experts and the use of qualitative
factors has enabled robust and constructive
discussion with the Regulators.
the approach and
Location and Tenure
The Crown Mountain Hard Coking Coal Project
(“Crown Mountain” or “the Project”) is located
within the Elk Valley coal field in south eastern
British Columbia. Along with the Crowsnest coal
field, this region is home to four of Canada’s active
coking coal mines. These four coal mines produce
over 20 million tonnes per annum of quality coking
and thermal coal, representing a majority of
Canada’s total coal exports.
Crown Mountain is in close proximity to two
significant metallurgical coal mines: Line Creek
which is 12km to the north, and Elkview which is
8km to the southwest (Figure 2). The Project
includes ten granted coal licences (418150,
418151, 418152, 418153, 418154, 418966,
419272, 419273, 419274, and 419275) covering
an area of 5,630 hectares (Table 1).
Name
License
Number
Status
Area
(Ha)
Rent
(CAD)
North Block
418150
Granted
334
$3,340
South Block
418151
Granted
1,001
$10,010
Crown East
West Crown
418152
Granted
418153
Granted
Southern Extension
418154
Granted
Northwest Extension
418966
Granted
Grave Creek
419272
Granted
Northern Extension
419273
Granted
Alexander Creek
419274
Granted
Grave Creek West
419275
Granted
167
251
835
974
779
705
335
251
$1,670
$2,510
$8,350
$6,818
$5,453
$4,935
$2,345
$1,757
Total
5,630
$47,188
Table 1: Crown Mountain Coal Licence
Summary Table (CAD)
9
ASSET OVERVIEW
upward cost base pressures and the incentive to
bring on additional marginal tonnes of HCC to
market. In the period between 2016 and 2019, the
average all-in sustaining cost (‘AISC’) of a tonne
of metallurgical coal produced in South East
British Columbia and sold on the seaborne market
increased by more than 30% (see Graph 1).
Figure 2: Crown Mountain Coal Licence
Locations
Crown Mountain Hard Coking Coal Project
Bankable Feasibility Study Results
Graph 1
On 9 July 2020, the Company announced the
robust economic
the Bankable
Feasibility Study (“BFS”) for Crown Mountain.
results of
The Project has a low strip ratio, an average life of
mine
(“LOM”) 1.7Mtpa clean coal product
operation at competitive operating costs to global
seaborne markets through one of the three deep
water ports on the west coast of British Columbia.
The BFS has demonstrated a technically and
economically robust Project that will produce an
average of 86% LV HCC and 14% PCI coal over
the 15-year mine life (see Table 2 on the following
page). The study was led by Stantec Consulting’s
(”Stantec”) Vancouver
other
consultants engaged including Sedgman Canada
Limited“) (a member of CIMIC Group), and SRK
Consulting (‘‘SRK’’).
office with
In 2017
Jameson originally completed a Pre Feasibility
Study (‘’PFS’’) in 2014 and subsequently updated
the PFS in 2017 when market conditions had
changed.
the Premium LV HCC
Benchmark had spent the 18 months prior at an
average of ~US$120/t, and had been as low as
US$73.40/t. Since that time, the Premium LV
HCC Benchmark has averaged ~US$184/t, and
has been as high as US$314/t.
Economics
The BFS was undertaken in the 2018-2020 period
where benchmark prices were high resulting in
All coal extraction is undertaken via open pit
mining of the North, East and South pits. The BFS
assumes a Run of Mine (“ROM”) coal production
of 57.5Mt at an average LOM ROM strip ratio of
4.7:1 BCM:ROM tonnes. The first four years of
mining occurs in the North and East pits which is
lower ROM strip ratio of 4.1 BCM:ROM tonnes
and higher yield (61.2%), producing up to 2.3
Mtpa. The mine then progresses to the South Pit
which is mined from the South to the North.
10
ASSET OVERVIEW
Free On Board
(“FOB”)
Operating Cost
Unit
LOM
Years
1-4
4.1:1
4.7:1
7.4:1
10.3:1
BCM:ROM
tonne
BCM:clean
coal tonne
US/t
22.12
31.94
US/t
4.76
6.77
US/t
8.06
10.02
US/t
2.16
2.34
ROM Strip Ratio
Clean Coal Strip
Ratio
Operating Costs
– clean coal
Waste
ROM
Production
Preparation Plant
Coal
Coal
Clean
Handling
Reclamation &
Minor Equipment
opex
52.22
and
US/t
37.98
1.01
5.90
on Rail
1.01
4.65
US/t
US/t
Free
(“FOR”)
Marketing
Corporate
Administration
Rail and Port
Charges
Royalty
FOB Operating
Cost
Table 2
* Operating costs and capital expenditure have
been converted from CAD to USD at 0.75
US/t
US$/t
29.25
4.18
US$/t
77.07
29.25
4.79
93.17
Coal processing occurs through a Coal Handling
and Process Plant (‘CHPP’) that is located near
the North Pit. Coal will be trucked to the CHPP
where it will be processed. The average LOM
processing yield is 48.7%, delivering a clean coal,
or saleable coal resource of 26.3Mt at an average
clean coal strip ratio of 10.3:1 BCM:t clean coal.
The processed coal will then be conveyed ~3km
down to a Truck Loadout Bin where the coal is
then trucked 15 kms to a clean coal stockpile and
reclaimed into the Train Loadout Facility. Coal is
then loaded onto Canadian Pacific rail cars at the
proposed figure eight Rail Load Out. Coal will
then be railed approximately 1,200 km to the
preferred Westshore Terminal for global export.
The key mining assumptions are summarised in
Table 3 below.
Key Mining
Parameters
Nameplate mining &
processing capacity
BFS mine life
Total ROM coal mined
Strip ratio (ROM)
Strip ratio (clean coal)
processing
Average
yield
Average HCC and PCI
production
Table 3
Unit
Mtpa ROM
Years
3.7
15
Mt
Mbcm
BCM:ROM
tonnes
BCM:t clean
coal
57.5
270
4.7:1
10.3:1
%
Mtpa clean
coal
48.7
1.7
The average LOM long term benchmark Premium
LV HCC was assessed to be US$164/tonne which
is the five-year historic average. It is expected that
the North and East pits achieve the benchmark
price, while the South Pit HCC receives a 10%
discount to the benchmark price. The CSR and
Volatile Matter of the HCC from the North (and
East) and South Pits is included in Graph 2 below.
The CAD:USD exchange rate is assumed to be
0.75 over the LOM.
US/t
0.88
1.14
Total waste mined
Graph 2
11
ASSET OVERVIEW
The Crown Mountain Pulverised Coal Injection
(“PCI”) averages at 14% of saleable coal over the
Project, is a Low to Mid Volatile PCI coal that
compares favourably with the Australian Low to
Mid Volatile PCI coals on the basis of ash,
sulphur, carbon content and calorific value which
are the key determinants in coke replacement
ratio. The Crown Mountain PCI coal’s coke
replacement ratio is similar to that achieved by the
LV PCI coals produced in Australia. North and
East pits PCI coal is assumed to achieve
US$115/tonne, while the South Pit PCI coal
achieves a price of US$112/tonne.
The key economic outcomes are as follows, and
summarised in Table 4 below:
Financial Outcome*
Exchange Rate
HCC Low Vol, Premium Benchmark (FOB Vancouver)
Key Financial Metrics
NPV(10) (pre-tax)
NPV(10) (post-tax)
IRR (pre-tax)
IRR (post-tax)
Payback period (pre-tax)
Payback period (post-tax)
Pre-production capital expenditure**
Life-of-Mine sustaining capital expenditure
Crown Mountain net cashflow (pre-tax)
Crown Mountain net cashflow (post-tax)
Operating Costs – clean coal
Waste
ROM Coal Production
Preparation Plant
Clean Coal Handling
Reclamation
Minor Equipment Operating Costs
Free on Rail (FOR)
Marketing and Corporate
Administration
Rail and Port Charges
Royalty
Free on Board (‘FOB’) Cost
Table 4
*Operating costs and capital expenditure have been
converted from CAD to USD at 0.75
**Excludes Contingency, Owners Costs and
Reclamation Security
• Attractive cost structure with an FOB cost
(including royalty) in years 1 through 4 of
US$77/t (CA$103/t) and LOM of US$93/t
(CA$124/t) which
places Crown
Mountain on a competitive basis with
other HCC mines in both Canada and
Australia
• Pre-production
(excluding
capital
•
contingency, owners costs and
reclamation
(CA$412m)
security) of US$309m
• Pre-tax Net Present Value (“NPV”),
discounted at 10% of US$376m (after tax
US$217m) and an Internal Rate of
Return (“IRR") of 36.4% (after
27.7%).
tax
Unit
CAD:USD
US$/t
US$m
US$m
%
%
Years
Years
US$m
US$/t
US$m
US$m
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
US$/t
LOM
0.75
164
376
217
36.4
27.2
2.0
2.4
309
7.48
1,029
652
31.94
6.77
10.02
2.34
0.14
1.00
52.22
1.01
5.90
29.25
4.79
93.17
The BFS assessed the Project’s viability on an
that analysed both
owner operator basis
purchasing mobile equipment and ancillary
infrastructure, reflected in Table 5 on the following
page, with an accuracy of capital and operating
estimates is +/-15%.
12
ASSET OVERVIEW
US$m*
Regulatory and Social License To Operate
Mine Infrastructure
Plant and Coal Handling
Facilities
Mobile Mining Equipment
Pre-Strip and Indirect
Total
Owners Costs
Reclamation Security
Contingency
Total Pre-production Capital
inc. Contingency
75
102
92
40
309
9
2
31
351
Table 5
*Capital Expenditure has been converted from
CAD to USD at 0.75
Total Capital
of US$351m
expenditure
(CA$468m) for owner operator option is approx.
US$206/t annual production, as depicted in
Graph 3 below. A leasing scenario was assessed
as part of the BFS to reduce the pre-production
capital expenditure, by leasing major and minor
mobile mining equipment,
to approximately
(CA$372m) or US$164/t annual
US$279m
production, however increases operating costs.
The reduced pre-production capital scenario has
been included in Graph 3 to compare with the
purchased equipment scenario assumed as the
BFS base case. Further analysis of the leasing
scenario is included in ASX announcement titled
Crown Mountain Bankable Feasibility Study
released to the ASX on July 9, 2020, , however
leasing will be further assessed as a part of the
BFS optimisation,
together with contractor
operated scenarios when closer to an investment
decision.
Jameson, and Jameson’s subsidiary NWP has
been actively engaged in the regulatory process
since 2014 and during this time has engaged with
both Provincial and Federal regulators, First
Nations and other stakeholders.
NWP has completed baseline studies and
that has enabled pre-submittal
modelling
meetings with Regulators to discuss the approach
to the EA Application in order to address the
requirements outlined
the Application
Information Requirements (‘AIR’) and prepare
effects assessments that form a critical part of the
EA Application. NWP expects to submit the EA
Application in the March Quarter 2021.
in
NWP is an active participant in the Elk Valley
Cumulative Effects Assessment Framework (EV
CEMF). EV CMEF is a joint initiative between the
Province of British Columbia and Ktunaxa Nation
Council to provide a framework to assess the
cumulative environmental effects of industry in the
Elk Valley. This group consists of government
regulators, NGOs, other coal developers and
other industries. The intent of the framework is to
provide a level playing field to assess the Crown
Mountain Project’s potential
impacts, with
consideration to other projects impacts, and will
assist in developing offsets as part of the
permitting process.
Graph 3
13
ASSET OVERVIEW
Optimisation Opportunities
risk to expert plant operators whilst in the
commissioning
to
ramp
and
commercial production phase.
up
tonnes
• Crown Mountain also has the potential to
Indicated
further Measured and
add
resource
the Southern
Extension, that currently includes 24mt of
Inferred Resource, was able
to be
successfully converted to a Measured
and Indicated resource.
if
Resources
The updated 2020 Resources are provided in
Table 6 below. All stated resources are inclusive
or the reserves.
Resource
Measured
Indicated
Indicated
Inferred
Indicated &
Area
(Mt)
(Mt)
(Mt)
(Mt)
Inferred (Mt)
Measured &
Measured,
North Pit
10.1
3.0
South Pit
41.0
12.4
South
Extension1
Total
-
51.1
-
15.4
13.1
53.4
-
66.5
-
-
23.7
23.7
13.1
53.4
23.7
90.2
Table 6 – Resource summary (Mtonnes)(as at
July 8, 2020)
The finalisation of the BFS has identified areas of
potential optimisation that will be assessed in
order to improve the overall execution and
economics of the Crown Mountain Hard Coking
Coal Project. The potential optimisation activities
include:
•
•
improved
scheduling
Increased utilisation of CHPP hours (BFS
assumed parameters of 6,400 annual
production
run hours whilst plant
availability, after planned outages is
Industry experience
8,060 hours).
indicates that this can be enhanced
through
of
maintenance and downtime, should the
mine plan enable additional ROM tonnes
to be made available.
Improved yield with production of higher
ash product (10% or 10.5%) in line with
other Canadian and Australian HCC
producers,
thereby reducing washing
sensitivities in the CHPP with expected
corresponding ash penalty of c.1.5%
price discount for every 1% ash above
9.5% Ash benchmark, which may
enhance overall economics. Additional
work is required to understand any
potential implications on coal quality
measures as a result of a higher ash
product.
• Reduce
CHPP capital costs by
assessing either lower cost Chinese steel
the current design, or
sourcing
alternately a modular pre-assembled
plant design also incorporating lower cost
steel supply but reducing the potential
impact on capital costs of anti-dumping
tariff’s.
for
• Contract mining or
leasing mobile
equipment, workshop, wash bays and
associated facilities to reduce upfront
capital and mitigate the execution risk
associated with bringing a new project
into production, which would likely result
in increased operating costs due to the
lease
financing cost or contractor
margins but with the potential for initial
productivity savings.
• Build Own Operate Transfer for the
CHPP and associated
infrastructure,
similar to the contract miner scenario,
whereby capital would be reduced at the
expense of operating costs however
allows for a more appropriate transfer of
1 Southern Extension resource estimate is from the
March 11, 2014 PFS report. No additional work has
completed on this portion of the Crown Mountain
deposit since 2014.
14
ASSET OVERVIEW
Reserves
The JORC Code requires that at a minimum, a
preliminary feasibility study or feasibility study be
completed as the basis for the definition of reserve
quantities. A feasibility study has been undertaken
for the Crown Mountain Property.
. The BFS run-of-mine (Table 7) identified 57.5
million as a coal reserve, of which 43.6 million
tonnes are in the Proven category and 13.9 million
tonnes in the Probable category.
Run of Mine Coal Reserves
Area
ASTM
(Ktonnes)
Group
Proven
Probable
COKING
PCI
COKING
PCI
North Pit
East Pit
South Pit
Bituminous
9,603
2,271
429
135
3,924
1,068
532
46
27,975
3,218
4,828
3,514
Sub-Total
39,848
3,781
9,284
4,627
Total Proven & Probable
43,629
13,911
Total
57,540
Table 7 – Run of mine surface mineable
reserve summary (ktonnes)(as at July 8, 2020)
Notes:
These are ROM tonnages prior to processing with as‐
received moisture content approx. 4%. Reference point is
before the rotary breaker.
Reserves within economic pit based on coking coal price
range of CAD$187-$207/product tonne and PCI coal price
of CAD$136/product tonne.
Rounding as required by reporting guidelines may result in
apparent summation differences.
For further information on the assumptions and
design parameters of the BFS please refer to the
announcement
titled Crown Mountain BFS
released to the ASX on July 9, 2020.
the
The Environmental Assessment Application (“EA
Application”) has progressed during the year
under
joint effort of Dillon Consulting
(Vancouver office) and a wide array of selected
expert consultants. The EA Application is the key
pre-requisite for the other permits required to
operate an open pit coal mine in British Columbia.
As result of the delay in completion of the BFS, the
EA Application is targeted for March 2021 quarter.
The Investment Agreement entered into between
Jameson and Bathurst in July 2018 provides
Bathurst (through its wholly owned Canadian
subsidiary) options for investing in NWP and
funding
for Crown Mountain costs.
provide
Bathurst invested C$4 million in NWP for an 8 per
cent common ownership interest to sole fund the
2018 summer exploration program and exercised
Option One, investing an additional C$7.5 million
in September 2019 to sole fund the Bankable
Feasibility Study
their
(“BFS”),
common ownership interest in NWP to 20 percent.
increasing
The agreement also provides for:
•
up to a C$5million Advance of the total
C$110,000,000 Tranche Two Option at
Bathurst’s discretion to provide funding
towards pre construction activities.
• With the completion of the BFS and once
the required permits have been issued,
Bathurst has the option to sole fund the
first C$110 million of construction costs,
less any Tranche Two Advances, in the
form of cash, which is anticipated to
represent the cash component of a
project financing package. Upon fully
funding all tranches, which total C$121.5
million, Crown Mountain will be a 50/50
joint venture between Jameson and
Bathurst.
During the 2020 financial year, Bathurst provided
C$2.6 million
for pre-construction activities,
including completion of the BFS, EA Application,
and other permitting activities. Bathurst have
advised that they will no longer exercise their
discretion and use the remaining C$2.4 million of
the Option Two Advance facility for sole funding of
the Project costs. Accordingly, Jameson and
Bathurst will pro rata contribute Coal Mountain
Project related costs in accordance with their
ownership interests in NWP. Jameson undertook
an equity raising in July to ensure Jameson can
pay its share of Project related costs for the EA
application, BFS optimization work and other
NWP costs to be incurred during the 2021
financial year.
The Gantt chart below displays the projected
timeline for Crown Mountain through to initial coal
production and assumes the EA Application is
submitted as targeted (March 2021 quarter), no
abnormal or unforeseen delays (ie. Regulatory
approvals etc) occur, and adequate funding
remains available to execute the required tasks.
For more detail on coal quality, please refer to the
following ASX announcements:
•
9 July 2020: Crown Mountain Bankable
Feasibility Study
15
ASSET OVERVIEW
•
•
•
•
•
2 August 2019: Crown Mountain Coal/Coke
Testing Program Complete: Hard Coking
Coal Confirmed
23 April 2019: Additional Testing Confirms
Crown Mountain as Premium Hard Coking
Coal
16 January 2019: Initial Coal Quality Testing
Results
26 April 2017: Crown Mountain Prefeasibility
Study Update
11 August 2014: PFS Confirms Crown
Mountain Will Enjoy Outstanding Economics.
COMPETENT PERSONS STATEMENTS
the ASX website
Mineral Resource Estimate, Mineral Reserve
Estimate and Bankable Feasibility Study
Results
The information in this presentation relating to the
Mineral Resource Estimate, Mineral Reserve
Estimate and Bankable Feasibility Study Results
of the Company’s Crown Mountain Coal Project
are extracted from the ASX Release entitled
“Crown Mountain Bankable Feasibility Study”
announced on 9 July 2020 and is available to view
on
the
Company's website. The Company confirms that
it is not aware of any new information or data that
materially affects the information included in the
original market announcement and,
that all
material assumptions and technical parameters
underpinning the resource and reserve estimates
and bankable feasibility study results in the
relevant market announcement continue to apply
and have not materially changed. The Company
confirms that the form and context in which the
Competent Person’s findings are presented have
not been materially modified from the original
market announcement.
(ASX:JAL), and
Coal Quality and Exploration Results
The information in this presentation relating to the
Coal Quality and Exploration Results on the
Company’s Crown Mountain Coal Project is
extracted from the ASX Releases entitled “Crown
Mountain Coal/Coke Testing Program Complete:
Hard Coking Coal Confirmed
(Updated)”
announced on 2 August 2019, and “Additional
Testing Confirms Crown Mountain as Premium
Hard Coking Coal” announced 23 April 2019, and
are available to view on the ASX website
(ASX:JAL), and the Company's website. The
Company confirms that it is not aware of any new
information or data that materially affects the
the original market
information
in
all material
that
announcements
assumptions
parameters
technical
underpinning the coal quality and exploration
results in the relevant market announcement
to apply and have not materially
continue
changed. The Company confirms that the form
and context in which the Competent Person’s
findings are presented have not been materially
modified from the original market announcement.
included
and,
and
16
Cancellation of 5 pending exploration license
applications by the British Columbian government
in 2015 limited the potential scale of the Dunlevy
project should
it be ultimately developed.
Jameson determined that it was not in the
Company’s best interest to proceed any further
with Dunlevy at that time, choosing instead to
devote available funds to Crown Mountain.
As Jameson has not completed any work on
Dunlevy during the past 5 years, please refer to
the 2015 Annual Report for information on Project
details.
Annual rent on the exploration licenses has been
paid and the Project remains in good standing.
Based upon the discontinuation of activities on
Dunlevy, the Company elected in 2016 to write
down the Project value to nil.
DUNLEVY COAL PROJECT
Dunlevy
Ownership: 100% Dunlevy Energy Inc
Commodity: Metallurgical Coal
Location: Peace River, British Columbia
Jameson holds a 100% interest in the Dunlevy
Project located in the Peace River coal field
district of North-East British Columbia.
The Peace River coal field is estimated to have
mineable resources of over 1 billion tonnes of
export quality coal (BC Ministry of Energy and
Mines). Production from the Peace River coal field
has included some of Canada’s major coking coal
and PCI mines – Willow Creek, Brule, Wolverine
and Trend – that are located along strike from the
Project area.
Dunlevy is in a well developed area where several
major mines and mining prospects are located,
and is 90km from Fort St. John, a regional
commercial centre.
All weather roads link
Dunlevy to Fort St. John and Chetwynd, where
Canadian National Railway’s
track can be
accessed. The rail provides shipping the three
deep water ports on the west coast of Vancouver.
There is also potential to reduce transportation
costs by utilising the large man-made Williston
Lake bordering the property to transport coal by
barge to rail access.
Jameson executed a small drilling program at
Dunlevy in the summer of 2014.
Dunlevy’s coal licenses are in good standing with
the Province.
Due to its early stage, no compliant coal resources
have been determined.
Dunlevy consists of 2 approved coal exploration
licenses as shown in Table 21 below:
Table 21: Dunlevy Coal License Summary Table
17
DIRECTORS’ REPORT
Directors’ Report
The Directors of Jameson Resources Limited (“Jameson” or “the Company”) submit herewith the Annual
Financial Report of the Company and its subsidiaries for the financial year ended 30 June 2020. In order to
comply with the provisions of the Corporations Act 2001, the Directors’ Report is as follows:
1.
DIRECTORS
The names and details of the Company’s Directors in office during or since the financial year end until the
date of the report are as follows. Directors were in office for the entire period unless otherwise stated.
Ms Nicole Hollows (appointed 15 March 2020)
Mr Steve van Barneveld
Mr Joel Nicholls
Mr T. Arthur Palm (retired 15 March 2020)
Information on Directors
Nicole Hollows
Qualifications
Non-Executive Chair
Bachelor of Business – Accounting, Graduate Diploma in Advanced
Accounting (Distinction), Chartered Accountant, Fellow Australian Institute of
Company Directors, Graduate Diploma in Company Secretarial Practice
Length of Service
Director appointment – 15 March 2020
Experience
Ms Hollows has over 20 years experience in the resources sector and has
been responsible for exploration, evaluation, financing, development and
operations of metallurgical coal mines. Her experience spans operational
management, accounting and finance, mergers and acquisitions, capital
management and corporate governance. Ms Hollows previous roles include
Chief Executive Office/Managing Director of Macarthur Coal Limited
(acquired by Peabody Energy), Managing Director of AMCI Australia and
South East Asia, and most recently, Chief Executive Officer of Sunwater
Limited.
Ms Hollows is a non executive director of Downer EDI Limited, Chair of the
Salvation Army Brisbane Fundraising and Red Shield Appeal, advisory
committee member of the Salvation Army Queensland Advisory Council,
member of the CEO Advisory Committee for Dean of Queensland University
of Technology Business School and a member of Chief Executive Women.
Ms Hollows is based in Brisbane.
Special Responsibilities Remuneration and Nomination Committee Chair
Joel Nicholls
Qualifications
Executive Director
Bachelor of Commerce, Chartered Accountant, Graduate Diploma Mineral
Exploration Geoscience
Length of Service
Director appointment – 15 September 2016, Executive Director from 15 March
2020
Experience
Mr Nicholls has over 12 years financial and technical experience in the
resources industry. He formerly worked for PricewaterhouseCoopers in
Transaction Services, focused on mergers and acquisitions with buy side and
sell side due diligence across a broad range of industries. Mr Nicholls runs a
private resource fund and has experience in analysing and investing in a wide
selection of commodities across multiple jurisdictions, from early stage
exploration through to production. Mr Nicholls is skilled in project
identification, and technical and economic evaluation. Mr Nicholls is based
in Melbourne.
Special Responsibilities None
18
DIRECTORS’ REPORT
Steve van Barneveld
Qualifications
Independent Non-Executive Director
Bachelor of Mineral Technologies (Hons 1)
Length of Service
Director appointment - 21 February 2014
Experience
Mr van Barneveld has over 30 years of experience in the mining services
sector, a significant portion of which has been spent with Sedgman Pty
Limited, a leading international designer and builder of coal handling and
processing plants. Mr van Barneveld, commencing as a process engineer,
has held senior executive positions within Sedgman, overseeing a period of
significant growth and international expansion. He has extensive experience
in asset development, design, construction, and operations management. Mr
van Barneveld is based in Brisbane.
Special Responsibilities Remuneration and Nomination Committee member
Directorships of other listed companies
Directorships of other listed companies held by Directors currently and in the 3 years immediately before the
end of the financial year are as follows:
Name
Nicole Hollows
Steve van Barneveld
Joel Nicholls
Company
Downer EDI Limited
-
-
Period of Directorship
19 June 2018 - current
-
-
2. COMPANY SECRETARY
The following persons held the position of Company Secretary during and at the end of the financial year:
Ms Pennee Osmond (appointed 25 September 2019)
Ms Osmond is a CPA and a member of the Governance Institute of Australia with over 15 years’ experience
in corporate accounting and company secretarial support for junior explorers listed on the ASX, TSX.V, and
unlisted proprietary entities. Ms Osmond has been involved with Initial Public Offerings (IPO), Reverse
Takeovers (RTO), capital raisings, project acquisitions and statutory and regulatory reporting for various
entities.
3.
CORPORATE STRUCTURE
Jameson Resources Limited is a public company listed on the ASX (Code: JAL) and is incorporated and
domiciled in Western Australia. The Company has a 77.8% interest in NWP Coal Canada Limited (“NWP”)
which holds a 90% interest in the Crown Mountain Hard Coking Coal Project and a 100% direct interest in
the Dunlevy Coal Project, both located in British Columbia, Canada. In October 2019, a subsidiary of Bathurst
Resources Limited (ASX:BRL) (“Bathurst”) acquired a 20% interest in NWP in common shares by exercising
its Tranche One Option and an additional 2.2% in Class B Preference shares during the financial year,
exercising its Tranche Two Advance Option of C$2.6 million. Bathurst holds a Tranche Two Option, at their
discretion, to increase their ownership interest to 50%, subject to certain milestones and additional payments.
Jameson Resources Limited and its subsidiaries NWP Coal Canada Ltd (“NWP”) and Dunlevy Energy Inc.
are collectively referred to as Jameson, or the Group, as the context requires.
4.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the financial year was advancing the Company’s Crown Mountain
Hard Coking Coal Project (“Crown Mountain”) through the evaluation phase by progressing it.
Management also evaluates other coal opportunities that present themselves from time-to-time and will be
considering new opportunities after the Crown Mountain EA Application is submitted in March 2021 quarter.
There were no significant changes in the nature of the Group’s principal activities during the financial year.
19
DIRECTORS’ REPORT
Review of operations
The past year has seen its share of highlights and challenges for Jameson Resources Limited (“JAL or the
Company”), resulting in the following key deliverables for the year:
• Finalisation of the Crown Mountain Hard Coking Coal Bankable Feasibility Study (“BFS”) demonstrating
an economically robust, high quality hard coking coal development opportunity with a 15 year mine life,
a competitive operating and capital cost structure and access to existing common user rail and port
infrastructure
• The Crown Mountain Environmental Assessment Certificate Application (”EA Application”) was
progressed with completion of all baseline work, terrestrial modelling, ground water and surface water
modelling and further advancement in other modelling efforts including air dispersion, noise, and human
health and ecological studies. The modelling approach and completed models have been the subject of
ongoing engagement with Regulators, both Provincial and Federal, and First Nations
• Continued engagement with regulators and key stakeholders including Provincial and Federal regulators
and the Ktunaxa Nation Council (“KNC”)
• Development and broadening of our strategy, including a strategic roadmap to deliver value to
shareholders through being commercially focused to deliver growth sustainably with strong stakeholder
engagement by:
o
the sustainable development and optimisation of our Crown Mountain Hard Coking Coal Project
o assessment of value add acquisitive growth opportunities after the EA submission in March
2021 quarter.
The EA Application for Crown Mountain did experience some delay during the year as a result of the delayed
completion of the Bankable Feasibility Study, impacts of Covid-19 and increased scope to completion
predominantly relating to effects assessments. The EA Application is on track to be submitted in the March
2021 quarter as June and July expenditure was reduced given Bathurst advising they would no longer be
fully funding the project expenditure with Jameson being required to obtain funding which was completed
with the equity placement in July, 2020.
The Bankable Feasibility Study also identified a number of areas of potential optimisation that the Company
intends to assess in the future, to maximise the economic outcomes whilst finalising the EA Application.
For further information on the results of the Crown Mountain BFS please see pages 10-16 of the Annual
Report.
In order to execute on the Company’s strategy, the Company intends to commence building a team to
complement the existing skillset and provide a solid foundation from which it can capitalise on whilst
developing Crown Mountain and for future opportunities as they arise.
5.
OPERATING RESULTS
The profit, after tax, attributable to the Group for the financial year ended 30 June 2020, amounted to
$418,918 (2019: $1,125,360 loss).
6.
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend in respect of the financial year and no amount
has been paid or declared by way of a dividend since the start of the financial year to the date of this Report.
20
DIRECTORS’ REPORT
7. SIGNIFICANT CHANGES IN STATE OF AFFAIRS
On 15 March 2020, Mr Art Palm retired as CEO and Acting Chairman of the Company and Ms Nicole Hollows
was appointed as Independent Non-Executive Chair. Mr Joel Nicholls was appointed Executive Director on
15 March 2020.
On 9 July 2020, the Company announced the results of its Bankable Feasibility Study at its flagship Crown
Mountain Hard Coking Coal Project.
Other than as stated above, there were no significant changes in the state of affairs of the Company during
the financial year.
8.
AFTER BALANCE DATE EVENTS
On 9 July 2020, the Company announced the result to the Bankable Feasibility Study at its Crown Mountain
Hard Coking Coal Project.
On 28 July 2020, the Company completed a capital raising via Placement raising $4.7 million before costs
and issuing 39.5 million shares at $0.12 per share. The funds were raised to fund Jameson’s share of Crown
Mountain Project related costs (progress the EA Application for submission in the March 2021 quarter and
undertake BFS optimisation work) and for general working capital purposes.
The Company was required to undertake the capital raising to ensure sufficient funding for completion of the
EA Application after it was notified by Joint Venture partner Bathurst that it would not be using its discretion
to fund the remainder of the Tranche Two Option Advance (C$2.4m remaining of the C$5m advance facility)
and would instead be funding the Project costs on a pro-rata basis in line with its common equity ownership
for FY21 and beyond until Option Two is exercised or lapses, being effectively financial investment decision
for the mine to proceed. This matter is an ongoing negotiation and the market will be kept abreast of any
further developments.
Other than detailed above, no matters or circumstances have arisen since the year end which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state
of affairs of the Group in future financial years.
9.
MEETINGS OF DIRECTORS
The number of Directors’ meetings held during the financial year each Director held office, and the number
of meetings attended by each Director is as follows:
Director
Nicole Hollows
Joel Nicholls
Steve van Barneveld
T. Arthur Palm
Directors’ Meetings
Number held
and Eligible to
Attend
Meetings
Attended
Remuneration and Nomination
Committee
Number held
and Eligible to
Attend
Meetings
Attended
5
10
10
5
5
10
8
5
1
1
1
-
1
1
1
-
The Company does not have a formally constituted Audit Committee as the Board considers that the
Company’s size and type of operation do not warrant such a committee at this point in time and accordingly,
the Board undertakes the work.
10. FUTURE DEVELOPMENTS
Jameson is focusing its efforts on the development of the Crown Mountain Hard Coking Coal Project in British
Columbia, Canada and working with Bathurst Resources Limited to advance its Environmental Assessment
permitting and related activities.
21
DIRECTORS’ REPORT
Subsequent to the submission of the EA Application in the March quarter 2021, management will seek to
evaluate other opportunities, predominantly focused on metallurgical coal, in developed nations (e.g. Canada
and Australia).
Work on the Dunlevy Project has been suspended and will be reviewed periodically in light of market
conditions and company priorities. Management will also evaluate other opportunities that may present
themselves from time-to-time, both in coal and other commodities.
Further details are contained in the Asset Overviews above.
11.
ENVIRONMENTAL ISSUES
The Group’s operations are subject to significant environmental regulations in Western Canada in respect of
its mining exploration activities.
The Company is aware of its environmental obligations with regards to its exploration and evaluation activities
and ensures that it complies with all regulations when carrying out any exploration and evaluation work.
The Directors of the Company are not aware of any breaches of environmental regulations for the year
covered by this report.
The Directors have considered the National Greenhouse and Energy Reporting Act 2007 (the NGER Act)
which introduces a single national reporting framework for the reporting and dissemination of information
about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of
corporations. At the current stage of development, the Directors have determined that the NGER Act will
have no effect on the Company for the current or subsequent financial year. The Directors will reassess this
position as and when the need arises.
12.
REMUNERATION REPORT (Audited)
This report outlines the remuneration arrangements in place for the Key Management Personnel of the
Company for the financial year ended 30 June 2020. The information provided in this Remuneration Report
has been audited as required by Section 308(3C) of the Corporations Act 2001.
The Remuneration Report details the remuneration arrangements for Key Management Personnel who are
defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of the Company and the Group, directly or indirectly, including any Director (whether executive or
otherwise) of the parent company, and includes the executives in the Group receiving the higher
remuneration.
Key Management Personnel
The following are classified as Key Management Personnel in the Remuneration Report:
• Non-executive Directors
• Executive Directors
• Senior Executives
• Former Executives/Directors.
The KMP for the year are:
• Nicole Hollows (Independent Non-Executive Chairman) (appointed 15 March 2020)
• Steve van Barneveld (Independent Non-Executive Director)
•
• T. Arthur Palm (Chief Executive Officer and Acting Chairman) (retired 15 March 2020).
Joel Nicholls (Executive Director from 15 March 2020) (formally Independent Non-Executive Director)
There are no other Key Management Personnel.
22
DIRECTORS’ REPORT
Remuneration Policy
The Remuneration Policy of Jameson Resources Limited has been designed to align director and executive
objectives with shareholder and business objectives by providing a fixed remuneration component, which is
assessed on an annual basis in line with market rates, and offering long-term incentives.
Remuneration Process - The Role of the Board
The Board’s policy for determining the nature and amount of remuneration for board members and senior
executives of the Group is delegated to the Remuneration and Nomination Committee, which considers all
remuneration matters for executives, non-executives and senior personnel and makes recommendations to
the Board.
The Remuneration and Nomination Committee
The Remuneration and Nomination Committee reviews executive compensation arrangements annually by
reference to the Group’s performance, executive performance, the executive’s roles and responsibilities and
benchmarks this for each executive against salary information from peer group companies in comparable
industry sectors and other listed companies in similar industries. The Remuneration and Nomination
Committee will assess the appropriateness of the nature and quantum of emoluments of such officers by
reference to relevant employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality board and executive team, and report its
recommendations to the Board for final determination.
In determining competitive remuneration rates, the Board also seeks independent advice if required on local
and international trends among comparative companies and industry generally.
Executives and Key Management
All executives receive a base salary (which is based on factors such as length of service and experience)
and statutory superannuation (if eligible).
The Remuneration and Nomination Committee must disclose whether or not the relevant annual performance
evaluations have been conducted. The Remuneration and Nomination Committee review the performance
evaluation of Executives and Key Management annually. This evaluation is based on criteria, including the
business performance of the Company and whether strategic objectives in terms of project development
were achieved.
Key Performance Indicators
The Company has in place key performance indicators (“KPI’s”) linked to vesting hurdles. The Board holds
regular meetings during the year where it reviews reports prepared by the Executive Director outlining
progress in key areas such as project development against specified milestones and budgets, business
development and finance.
During the year, the company adopted an Employee Incentive Plan (“EIP”) to provide incentive and reward
for Eligible Participants and align the interests to participants more closely with the interests of the
Shareholders. There were no issues under the EIP during the year ended 30 June 2020.
Under Jameson’s 2019 FY Long Term Incentive (“LTI”) plan the Company issued options to Non-executive
Directors with staged vesting dates. Further details of the equity incentives granted are detailed in Note 16
of the Company’s financial statements.
The Board encourages directors to hold shares in the Company. The Company has a Share Trading Policy
which directors and employees are required to comply with. No shares or options were acquired by key
management personnel during the year other than as part of remuneration.
All remuneration paid to directors and executives is valued at the cost to the Company and expensed. All
performance rights have been valued in accordance with AASB 2, which takes into account factors such as
the underlying share price, the expected vesting date and vesting probability in achieving the specified
vesting hurdles at the reporting date.
Non-Executive Directors
The Board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. The Board determines payments to the non-executive directors and
reviews their remuneration annually, based on market practice, duties and accountability. Independent
external advice is sought when required.
23
DIRECTORS’ REPORT
The maximum aggregate amount of fee pool that can be paid in total to non-executive directors is currently
at $250,000 per annum as approved by shareholders at incorporation in 2007. The Company intends on
seeking shareholder approval to increase the aggregate amount of fees payable to non-executive directors
by $50,000 to an aggregate total of $300,000 at the 2020 AGM to provide flexibility for an additional board
member in the future. Fees for non-executive directors are not linked to the performance of the Group.
Performance based remuneration
Short Term Incentive Plan (“STI”)
During the financial year ended 30 June 2020, cash bonus of A$113,049 (US$76,500) and A$34,765
(US$19,625) in relation to the 2018/19 STI Plan and 2019/20 STI Plan, respectively, were paid to the CEO.
The cash bonuses were in recognition of the CEO’s achievements in meeting the Company’s objectives.
The cash bonuses are at 25% based upon the range of bonuses available at the Board’s discretion within
the original STI plan which was tabled and approved by the Board in 2017.
2019/20 STI Plan
The Board considered that the completion of the Bankable Feasibility Study and submission of the
Environmental Assessment Application were two of the significant deliverables during the year. The CEO
2019/20 STI bonus was therefore aligned with these objectives and weighted accordingly.
As a vesting condition, the CEO is to remain the CEO or an executive employee of Jameson at the time of
the award. At the CEO’s retirement, the board awarded the 2019/20 STI Bonus on a pro-rata basis reflecting
the current year progress towards the completion of the Bankable Feasibility Study.
Voting and Comments at the Company’s 2019 Annual General Meeting
The adoption of the Remuneration Report for the financial year ended 30 June 2019 was put to the
shareholders of the Company at the Annual General Meeting held on 21 November 2019. The Company
received 99.8% of the vote, of those shareholders who exercised their right to vote, in favour of the
remuneration report for the 2019 financial year. The resolution was passed without amendment on a show
of hands. The Company did not receive any specific feedback at the AGM or throughout the year on its
remuneration policies.
Employment contracts of key management personnel
Key Management Personnel employment terms are formalised in a service agreement, a summary of which
is set out below.
Name
Mr Joel
Nicholls
(appointed 15
March 2020)
Employing
Company
Jameson
Resources
Limited
Base Salary/Fees Terms of Agreement
$80,000 per
annum, plus
superannuation
Until termination by
either party
Termination
Notice Period
3 months in writing
by either party
24
DIRECTORS’ REPORT
Non-Executive Directors
All non-executive Directors were appointed by a letter of appointment. Directors can retire in writing as set
out in the Constitution.
(a)
Compensation of Key Management Personnel
Remuneration of Key Management Personnel is set out below.
SHORT-TERM BENEFITS
POST
EMPLOYMENT
EQUITY-BASED
BENEFITS
TOTAL
Salary & Fees
$
Cash Bonus
$
Superannuation
$
Perform-
ance
Rights*
$
Options*
$
$
Non-cash
based
%
Directors and Executives
Nicole Hollows – Non - Executive Chairman 1
2020
2019
27,727
-
Steve van Barneveld – Non-Executive Director
2020
2019
45,000
45,000
Joel Nicholls –Executive Director
2020
2019
55,349
45,000
-
-
-
-
-
-
1,842
-
4,275
4,275
5,258
4,275
-
-
-
-
-
-
-
-
34,484
43,610
34,484
43,610
29,569
-
83,759
92,885
95,091
92,885
0%
-
41.2%
47.0%
36.3%
47.0%
T. Arthur Palm – Acting Chairman, and Chief Executive Officer 2
2020
2019
Total Remuneration
2020
2019
339,292
416,558
467,368
506,558
147,814
95,433
147,814
95,433
-
-
-
28,968
45,212
85,566
532,318
626,525
36.3%
33.5%
11,375
8,550
-
28,968
114,180
172,786
740,737
812,295
1) Appointed 15 March 2020
2) Retired 15 March 2020. During the year, Mr Palm received US$220,661 (2019: US$364,416 2019) respecting director fees.
During the financial year, a cash bonus of AU$147,814 (US$96,125) in relation to the financial year 2020 has been paid in
achievement of STI milestones based on 25% of annual fees.
* It should be noted that the Directors have not received this amount and the performance rights or options
may have no actual financial value unless the required performance hurdles are achieved. Securities may
also be issued to the recipient at a share issue price lower than valued and recognised in the financial report.
Note that the valuation does not reflect the value of the equity benefits received for tax purposes.
25
DIRECTORS’ REPORT
(b)
Equity holdings
All equity dealings with directors have been entered into with terms and conditions no more favourable than
those that the Company would have adopted if dealing at arms’ length. The relevant interests of each director
in share capital at the date of this report are as follows:
Fully paid ordinary shares
Movement in shareholdings of key management personnel
2020
Balance at
01.07.19
Granted as
Remuneration
Conversion of
Performance
Rights
On Exercise
of Options
Balance at
Resign-
ation
Balance at
30.06.20
Nicole Hollows(iii)
Joel Nicholls(ii, iv)
-
7,730,000
Steve van Barneveld(i)
520,000
T Arthur Palm(v)
2,234,000
10,484,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,730,000
520,000
2,234,000
-
2,234,000
8,250,000
(i) 100,000 shares are held by The van Barneveld Share Trust, an entity related to Steve van Barneveld. 1,200,000 options
are held by Dalmeny Investments Pty Ltd , an entity in which Mr van Barneveld is a beneficiary.
(ii) 7,000,000 shares are held by Walloon Securities Pty Ltd, an entity of which Mr Nicholls is a director. 300,000 shares and
1,200,000 options are held by Willow Grove Equity Pty Ltd, an entity of which Mr Nicholls is a director. 430,000 shares are
held by JHNKMS Pty Ltd , an entity in which Mr Nicholls is a beneficiary.
(iii) Appointed 15 March 2020
(iv) Appointed Executive Director effective 15 March 2020, resigned Non-Executive Director
(v) Retired 15 March 2020
Options (Unlisted) over fully paid ordinary Shares
Movement in option holdings of key management personnel
2020
Nicole Hollows(iii)
Balance
at
01.07.19
-
Joel Nicholls(iv)
1,200,000
Steve van Barneveld
1,200,000
T Arthur Palm(v)
4,000,000
6,400,000
Granted as
Remuneration
Exercised
Lapsed/
cancelled
-
-
-
-
-
-
-
-
-
-
Balance at
Appointment/
Resignation
-
Balance
at
30.06.20
-
Total
Vested at
30.06.20
Total
Exercisable
at 30.06.20
-
-
-
1,200,000
600,000
600,000
1,200,000
600,000
600,000
-
-
-
(1,333,333)
2,666,667
-
-
-
(1,333,333)
2,666,667
2,400,000 1,200,000
1,200,000
Performance Rights
Movement in Performance Rights of key management personnel
2020
Balance at
01.07.19
Granted as
Remuneration
Cancelled
Balance at
Appointment/
Resignation
Balance
at
30.06.20
Vested &
exercisable
at 30.06.20
Nicole Hollows(iii)
Joel Nicholls(iv)
Steve van Barneveld
T Arthur Palm(v)
-
-
-
3,000,000
3,000,000
-
-
-
-
-
-
-
-
(3,000,000)
(3,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(iii)
(iv)
(v)
Appointed 15 March 2020
Appointed Executive Director effective 15 March 2020, resigned Non-Executive Director
Retired 15 March 2020
(c) Performance Rights issued as Part of Remuneration
Nil performance rights were issued during the year as remuneration to key management personnel.
26
DIRECTORS’ REPORT
(d) Compensation options issued as part remuneration
There were no compensation options issued during the year.
During the year, the Company cancelled 1,333,333 CEO Options, upon the retirement of the CEO.
No compensation options were exercised or lapsed during the current financial year.
(e) Loans to key management personnel
No loans were made to key management personnel of the Company during the financial year or the prior
corresponding period.
(f) Other transactions and balances with key management personnel
Other than as stated above, there have been no other transactions with key management personnel during
the year.
(g) Performance income as a proportion of total income
Refer 12 (a) of the Remuneration Report. The CEO’s performance related income comprised 36.3% of his
total income for FY2020. The performance related component resulted from achievement of the 2018/19 STI
plan and 2019/20 STI Plan and payment of the bonuses arising from the plans in the FY2020, and the value
ascribed to equity incentives vesting for the FY2020.
END OF REMUNERATION REPORT
13. DIVERSITY
The Company believes that the promotion of diversity on its Board and within the organisation generally is
good practice and is committed to managing diversity as a means of enhancing the Company’s performance.
There is currently one female on the Company’s Board and the contract Company Secretary is also female.
The Company as set out
the Company’s website,
the Diversity Policy, (accessible
www.jamesonresources.com.au) will focus on diversity (including, but not limited to participation of women)
on its Board and within senior management and intends to set measurable objectives for achieving gender
diversity which will be adhered to once the size and scale of the Company increases sufficiently to permit
further additions to the board or senior management.
from
in
14. UNISSUED SHARES UNDER OPTION
At the date of this report unissued ordinary shares of the Company under option are:
Expiry Date
Exercise Price
Number of Shares
31 December 2020
31 December 2021
31 December 2022
31 December 2023
$0.20
$0.30
$0.40
$0.50
750,000
1,650,000
1,466,667
1,200,000
15. SHARES ISSUED DURING OR SINCE THE END OF THE YEAR AS A RESULT OF EXERCISE
During the year, nil shares were issued upon the exercise of options.
27
DIRECTORS’ REPORT
16. INTERESTS IN SHARES, OPTIONS, PERFORMANCE RIGHTS OF THE COMPANY.
The following relevant interests in shares and options of the Company or a related body corporate were held
by the directors as at the date of this report.
Directors
Nicole Hollows
Joel Nicholls(a)
Steve van Barneveld(b)
Number of
Shares
Number of
Options
Number of
Performance
Rights
-
7,730,000
520,000
8,250,000
-
1,200,000
1,200,000
2,400,000
-
-
-
-
(a) 7,000,000 shares are held by Walloon Securities Pty Ltd, an entity of which Mr Nicholls is a director. 300,000 shares and
1,200,000 options are held by Willow Grove Equity Pty Ltd, an entity of which Mr Nicholls is a director. 430,000 shares are
held by JHNKMS Pty Ltd , an entity in which Mr Nicholls is a beneficiary.
(b) 100,000 shares are held by The van Barneveld Share Trust, an entity related to Steve van Barneveld. 1,200,000 options
are held by Dalmeny Investments Pty Ltd , an entity in which Mr van Barneveld is a beneficiary.
17.
INDEMNIFYING OFFICERS OR AUDITOR
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001 every officer,
auditor or agent of the Company shall be indemnified out of the property of the Company against any liability
incurred by him in his capacity as Officer, auditor or agent of the Company or any related corporation in
respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings,
whether civil or criminal.
The Group has a Directors and Officers insurance policy in place.
18.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene in
any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the
Company for all or any part of these proceedings.
The Company was not a party to any such proceedings during the year.
19.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2020 has been received and can
be found on page 54 of the annual report and forms part of this Directors’ Report.
20.
NON-AUDIT SERVICES
No non-audit services were provided by the Company’s auditors during the year.
Signed in accordance with a resolution of the Board of Directors.
Nicole Hollows
Non-Executive Chair
Dated this 21st day of September 2020
28
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Jameson Resources Limited for
the year ended 30 June 2020, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
21 September 2020
N G Neill
Partner
29
INDEPENDENT AUDITOR’S REPORT
To the members of Jameson Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Jameson Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
30
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of exploration and evaluation
Note 8
The Group has capitalised exploration and
evaluation expenditure of $28,089,144 as at 30 June
2020 in relation to its Canadian coal projects.
Our audit procedures determined that the carrying
value of exploration and evaluation expenditure was
a key audit matter as it was an area which required
the most audit effort,
the most
communication with those charged with governance
and was determined to be of key importance to the
users of the financial statements.
required
Our procedures included but were not
limited to the following:
- We obtained an understanding of the
key
associated with
management’s review of the exploration
and evaluation asset carrying values;
processes
- We
considered
Directors’
assessment of potential indicators of
impairment;
the
- We obtained evidence that the Group
has current rights to tenure of its areas
of interest;
- We discussed with management the
nature of planned ongoing activities;
- We
tested additions
to exploration
expenditure on a sample basis during
the year;
- We enquired with management, and
reviewed ASX announcements and
minutes of Directors’ meetings to ensure
that the Group had not decided to
discontinue exploration and evaluation
at its areas of interest; and
- We examined the disclosures made in
the financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2020, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
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.
31
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
-
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
32
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Jameson Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
21 September 2020
N G Neill
Partner
33
FINANCIAL REPORT
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
35
36
37
38
39
66
34
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the Year Ended 30 June 2020
Annual Report Year Ended 30 June 2020
Consolidated
Year Ended
30 June 2020
Consolidated
Year Ended
30 June 2019
$
$
46,852
21,287
(49,092)
(269,474)
(5,029)
(632,523)
(114,180)
(75,451)
(9,731)
(84,708)
-
21,965
(28,150)
(49,395)
(254,429)
(5,086)
(611,445)
(201,754)
(47,450)
(10,227)
(40,964)
(78,619)
48,230
(26,765)
Note
2(a)
2(b)
2(b)
16
2(b)
Income
Administration expenses
Corporate and compliance fees
Depreciation and amortisation
Employee benefits expense
Equity based payments
Insurance expense
Interest and finance expenses
Other expenses
Bathurst investment related expenses
Foreign exchange translation gain
Impairment of exploration expenditure
Loss before income tax
(1,199,521)
(1,256,617)
Income tax benefit
4
1,618,439
131,257
Net (loss)/gain for the year
418,918
(1,125,360)
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations and net investment
Other comprehensive (loss)/income for the
year
Total comprehensive (loss)/income for the
year
(Loss)/income attributable to:
-
-
Members of the parent
Non-controlling interests
Total comprehensive income attributable to:
-
-
Members of the parent
Non-controlling interests
Basic (loss)/earnings per share (cents per share)
Fully diluted (loss)/earnings per share (cents per
share)
19
19
(800,721)
1,342,045
(800,721)
1,342,045
(381,803)
216,685
105,103
313,815
418,918
(535,474)
153,671
(381,803)
0.04
0.04
(1,133,095)
7,735
(1,125,360)
101,582
115,103
216,685
(0.43)
(0.43)
The accompanying notes form part of these financial statements.
35
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2020
Annual Report Year Ended 30 June 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON CURRENT ASSETS
Other receivables
Deferred exploration and evaluation expenditure
Plant and equipment
Other assets
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL NON CURRENT ASSETS
NON CURRENT LIABILITIES
Other payables
TOTAL NON CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Equity attributable to the members of the
parent
Note
Consolidated
2020
$
Consolidated
2019
$
5
6(a)
7(a)
6(b)
8
9
7(b)
10(a)
10(b)
10(c)
2,615,287
87,754
80,249
2,783,290
1,142,955
28,089,144
37,366
1,225
29,270,690
32,053,980
437,940
20,033
457,973
28,851
28,851
486,824
2,699,857
231,335
85,904
3,017,096
1,167,837
22,307,976
43,107
1,252
23,520,172
26,537,268
504,392
-
504,392
29,480
29,480
533,872
31,567,156
26,003,396
11(a)
12
13
31,589,220
12,209,535
(17,975,900)
31,589,220
8,951,425
(18,081,003)
25,822,855
22,459,642
Non-controlling interest
27
5,744,301
3,543,754
TOTAL EQUITY
31,567,156
26,003,396
The accompanying notes form part of these financial statements.
36
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2020
Annual Report Year Ended 30 June 2020
Consolidated
Year Ended
30 June 2020
$
Consolidated
Year Ended
30 June 2019
$
Note
Cash Flows from Operating Activities
- Interest received
- ATO COVID Cashboost
- Payments to suppliers and employees
22,368
24,090
(1,098,519)
20,286
-
(1,159,862)
Net cash used in operating activities
20 (ii)
(1,052,061)
(1,139,576)
Cash Flows from Investing Activities
- Payments for plant and equipment
- Payments for exploration and evaluation
- Payments for safekeeping bond
- Receipt of NCI portion of safekeeping bond
- Receipt of BC Mining Tax Credit
-
(6,547,474)
-
-
1,772,248
(5,938)
(7,734,648)
(666,585)
29,480
331,885
Net cash used in investing activities
(4,775,226)
(8,045,806)
Cash Flows from Financing Activities
- Proceeds from issue of equity
- Proceeds from investment in NWP
- Payments for share issue costs
-
5,807,115
-
750,000
9,373,964
(4,810)
Net cash provided by financing activities
5,807,115
10,119,154
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at 1 July
Foreign currency translation on cash held
(20,172)
933,772
2,699,857
(64,398)
1,721,504
44,581
Cash and cash equivalents at 30 June
20 (i)
2,615,287
2,699,857
The accompanying notes form part of these financial statements.
37
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2020
Annual Report Year Ended 30 June 2020
Issued
Capital
Accumulated
Losses
Equity Based
Payment
Reserve
$
$
$
Foreign
Currency
Translation
Reserve
$
Other
Reserve
$
Non-
controlling
Interest
Total
$
$
Total
$
-
Balance at 1 July 2019 31,589,220
Profit for the period
Exchange differences
arising on translation of
foreign operations
Total comprehensive
income/(loss) for the
period
-
-
(18,081,003)
105,103
1,403,975
-
1,739,829 5,807,621
-
-
22,459,642 3,543,754
313,815
105,103
26,003,396
418,918
-
-
(640,577)
105,103
-
(640,577)
-
-
(640,577)
(160,144)
(800,721)
(535,474)
153,671
(381,803)
Transactions with
owners in their capacity
as owners:
Options expensed
during the period
Transactions with non-
controlling interests:
Ordinary shares issued
net of costs in NWP
Preference Class B
shares issued in NWP
Balance at 30 June
2020
-
-
-
-
-
-
114,180
-
-
-
-
-
-
114,180
-
114,180
978,656
978,705
1,956,176
2,934,832
2,805,851
2,805,802
90,700
2,896,551
31,589,220
(17,975,900)
1,518,155
1,099,252 9,592,128
25,822,855 5,744,301 31,567,156
Issued
Capital
Accumulated
Losses
Equity Based
Payment
Reserve
$
$
$
Foreign
Currency
Translation
Reserve
$
Other
Reserve
$
Non-
controlling
Interest
Total
$
$
Total
$
(16,947,908)
(1,133,095)
1,202,221
-
505,152
-
- 15,603,495
(1,133,095)
-
-
7,735
15,603,495
(1,125,360)
Balance at 1 July 2018 30,844,030
Loss for the period
-
Exchange differences
arising on translation of
foreign operations
Total comprehensive
income/(loss) for the
period
-
-
-
-
1,234,677
(1,133,095)
-
1,234,677
Transactions with
owners in their capacity
as owners:
Performance rights
expensed during the
period
Options expensed
during the period
Ordinary shares issued
net of costs in parent
Transactions with non-
controlling interests:
Ordinary shares issued
net of costs in NWP
Preference Class A
shares issued in NWP
Balance at 30 June
2019
-
-
745,190
-
-
-
-
-
-
-
28,968
172,786
-
-
-
-
-
-
-
-
-
-
-
-
-
1,234,677
107,368
1,342,045
101,582
115,103
216,685
28,968
172,786
745,190
-
-
-
28,968
172,786
745,190
2,832,502
2,832,502
1,277,227
4,109,729
2,975,119
2,975,119
2,151,424
5,126,543
31,589,220
(18,081,003)
1,403,975
1,739,829
5,807,621 22,459,642
3,543,754
26,003,396
The accompanying notes form part of these financial statements.
38
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
Annual Report Year Ended 30 June 2020
The financial report is a general purpose financial report, which has been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies
with other requirements of the law.
The financial report has also been prepared on a historical cost basis unless otherwise stated.
The Company is an ASX listed public company, incorporated in Australia and operating in Australia and
Canada. The entity’s principal activities are mineral exploration.
The financial report is presented in Australian dollars.
(b)
Adoption of new and revised standards
Changes in accounting policies on initial application of Accounting Standards
In the year ended 30 June 2020, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Company and effective for the current annual
reporting period. As a result of this review, the Directors have determined that there is no material impact
of the new and revised Standards and Interpretations on the Company and, therefore, no material
change is necessary to Group accounting policies.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
AASB 16 Leases
AASB 16 Leases supersedes AASB 117 Leases. The Group has adopted AASB 16 from 1 July 2019
which results in changes in the classification, measurement and recognition of leases. The changes
remove the distinction between ‘operating and ‘finance’ leases. The new standard requires recognition of
a right-of-use asset (the leased item) and a financial liability (to pay rentals). The exceptions are short-
term leases and leases of low value assets.
The Group has adopted AASB 16 using the modified retrospective approach under which the
reclassifications and the adjustments arising from the new leasing rules are recognised in the opening
Condensed Statement of Financial Position on 1 July 2019. Under this approach, there is no initial Impact
on retained earnings, and comparatives have not been restated.
The Group leases office space. Prior to 1 July 2019, the leases were classified as operating leases.
Payments made under operating leases were charged to profit or loss on a straight-line basis over the
period of the leases.
From 1 July 2019, the Group recognises a right-of-use asset and a corresponding liability at the date which
the lease asset is available for use by the Group (i.e. commencement date). Each lease payment is
allocated between the liability and the finance cost. The finance cost is charged to profit or loss over the
lease period so as to produce a consistent period rate of interest on the remaining balance of the liability
for each period.
Where leases have a term of less than 12 months or relate to low value assets, the Group has applied the
optional exemptions to not capitalise these leases and instead account for the lease expense on a straight-
line basis over the lease term.
Impact on adoption of AASB 16
The adoption of AASB 16 has not resulted in any changes in respect of all operating leases, as the exiting
lease at 1 July 2019 met the appropriate exemption criteria of having a term of less than 1 year.
The net impact on retained earnings on 1 July 2019 was $nil.
Practical expedients applied
In applying AASB 16 for the first time, the Group has used the following practical expedients permitted
by the standard:
39
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
• For existing contracts as at 1 July 2019, the Group has elected to apply the definition of lease
contained in AASB 117 and Interpretation 4 and has not applied AASB 16 to contracts that were
previously not identified as leases under AASB 117 and Interpretation 4;
• Accounting for operating leases with a remaining lease term of less than 12 months as at 1 July
2019 as short-term leases, with no right-of-use asset nor lease liability recognized.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the year
ended 30 June 2020. As a result of this review the Directors have determined that there is no material
impact of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no
change is necessary to Group accounting policies.
(c)
Statement of Compliance
The financial report was authorised for issue on 21 September 2020.
The financial report complies with Australian Accounting Standards, which include Australian equivalents
to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the
financial report, comprising the financial statements and notes thereto, complies with International
Financial Reporting Standards (IFRS).
(d)
Significant accounting estimates and judgements
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates.
Exploration and evaluation expenditure:
The Directors have conducted a review of the Group’s capitalised exploration expenditure to determine
the existence of any indicators of impairment. Based upon this review, the Directors have determined
that no impairment exists.
Share-based payment transactions:
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by an external
valuer using a Black and Scholes model, using assumptions provided by the Company.
The fair value is expensed over the vesting period.
(e)
Foreign currency translation
Both the functional and presentation currency of Jameson Resources Limited is Australian dollars. Each
entity in the Group determines its own functional currency and items included in the financial statements
of each entity are measured using that functional currency.
The functional currency of the foreign operations, NWP Coal Canada and Dunlevy Energy Inc is
Canadian dollars, “CAD”.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the balance date.
All exchange differences in the consolidated financial statements are taken to profit or loss with the
exception of differences on foreign currency borrowings that provide a hedge against a net investment
in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which
time they are recognised in profit or loss.
40
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
Tax charges and credits attributable to exchange differences on those borrowings are also recognised
in equity. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value was determined. Translation differences on assets and liabilities carried
at fair value are reported as part of the fair value gain or loss.
As at the balance date the assets and liabilities of these subsidiaries are translated into the presentation
currency of Jameson Resources Limited at the rate of exchange ruling at the balance date and income
and expense items are translated at the average exchange rate for the period, unless exchange rates
fluctuated significantly during that period, in which case the exchange rates at the dates of the
transactions are used.
The exchange differences arising on the translation are taken directly to a separate component of equity,
being recognised in the foreign currency translation reserve.
(f)
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Jameson Resources
Limited and its subsidiaries as at 30 June each year (the Group). Control is achieved where the
company has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies. Investments in subsidiaries are accounted for at cost
in the parent entity’s financial statements.
In preparing the consolidated financial statements, all intercompany balances and transactions,
income and expenses and profit and losses resulting from intra-group transactions have been
eliminated in full. Subsidiaries are fully consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is transferred out of the Group.
Control exists where the company has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair
value of the assets acquired and the liabilities and contingent liabilities assumed at the date of
acquisition. Accordingly, the consolidated financial statements include the results of subsidiaries for
the period from their acquisition.
41
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. INCOME AND EXPENSES
The following income and expense items are relevant in
explaining the financial performance for the year:
(a) Income
- Interest income
- ATO Cashboost – COVID 19
Annual Report Year Ended 30 June 2020
Consolidated
Year Ended
2020
$
Consolidated
Year Ended
2019
$
22,762
24,090
46,852
21,287
-
21,287
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Group and the amount of revenue can be reliably measured. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset
to that asset’s net carrying amount on initial recognition.
(b) Expenses
Employee benefit expense
- Salaries
Note
632,523
611,445
Exploration Costs Written off
Impairment of Dunlevy Project
8
28,150
28,150
26,765
26,765
Depreciation and amortisation
- Total depreciation expense
5,029
5,086
NOTE 3. AUDITORS’ REMUNERATION
The auditor of Jameson Resources Limited is HLB Mann Judd
Amounts received or due and receivable by the auditor for:
- Auditing or reviewing the financial report
40,026
40,026
35,445
35,445
42
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. INCOME TAX
a.
b.
The components of tax (benefit) comprise:
Current tax (i)
Deferred tax
Income tax benefit reported in Statement of Profit or Loss
and Other Comprehensive Income
(i) Mining Tax Credit (Canada)
The prima facie tax benefit on loss from ordinary
activities before income tax is reconciled to the income
tax as follows:
Prima facie tax benefit on loss from ordinary activities post-
income tax at 30% (pre- income tax 2019: 30%)
Add tax effect of:
- Revenue losses not recognised
- Other non-allowable items
Less tax effect of:
- Other non-assessable items
- Other deferred tax balances not recognised
Mining Tax Credit (Canada)
Income tax benefit reported in Statement of Profit or Loss
and Other Comprehensive Income (benefit)
d.
Unrecognised deferred tax assets at 30% (2019:30%)
(Note 1):
Carry forward revenue losses
Carry forward capital losses
Capital raising costs
Provisions and accruals
Annual Report Year Ended 30 June 2020
Consolidated
Year Ended
2020
$
Consolidated
Year Ended
2019
$
(1,618,439)
-
(1,618,439)
(131,257)
-
(131,257)
(359,856)
(376,985)
133,187
237,821
11,152
7,227
3,925
1,618,439
(1,618,439)
2,536,440
222,091
916
6,300
2,765,747
209,683
167,491
189
-
189
131,257
(131,257)
2,403,253
222,091
1,841
9,300
2,636,485
The tax benefits of the above deferred tax assets will only be obtained if:
(a)
the company derives future assessable income of a nature and of an amount sufficient to enable
the benefits to be utilised;
the company continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the company in utilising the benefits.
(b)
(c)
Note 1 - the corporate tax rate for eligible companies will reduce from 30% to 25% by 30 June 2022
providing certain turnover thresholds and other criteria are met. Deferred tax assets and liabilities are
required to be measured at the tax rate that is expected to apply in the future income year when the asset
is realised or the liability is settled. The Directors have determined that the deferred tax balances be
measured at the tax rates stated.
43
NOTES TO THE FINANCIAL STATEMENTS
NOTE 4. INCOME TAX (Continued)
Annual Report Year Ended 30 June 2020
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the statement of financial position date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences and the carry-forward of unused tax credits and unused
tax losses can be utilised, except:
•
when the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that
it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will
be available against which the temporary difference can be utilised.
•
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or
loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
•
•
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
44
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. CASH AND CASH EQUIVALENTS
Current
Cash at bank(i)
Annual Report Year Ended 30 June 2020
Consolidated
30 June
2020
$
Consolidated
30 June
2019
$
2,615,287
2,615,287
2,699,857
2,699,857
(i) Cash at bank consists of $1.32 million in Jameson, $1.26 million in NWP and $0.03 million held in
Dunlevy
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
NOTE 6. TRADE AND OTHER RECEIVABLES
(a) Current trade and other receivables
GST Receivable
British Columbia Mining Tax Credit (Canada)(i)
(b) Non-Current other receivables
Reclamation bonds(ii)
87,754
-
87,754
85,364
145,971
231,335
1,142,955
1,142,955
1,167,837
1,167,837
Current trade receivables are non-interest bearing and are normally settled on 60-day terms. This balance is
current receivables incurred on a day to day operational basis and considered unimpaired.
(i) The British Columbia Mining Tax Credit are normally settled within normal trading terms but outside the
60-day terms.
(ii) The Reclamation Bonds are a condition of the Mines Act Permit for the Crown Mountain and Dunlevy
Projects. The Bonds are placed as security in the form of a certified cheque or held in trust at a nominated
bank as a Safe Keeping Agreement. The Bonds are returned once the BC Ministry of Energy and Mines
has inspected the site following completion of exploration and reclamation.
Expected credit losses
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant financing component.
Where applicable, in measuring the expected credit losses, the trade receivables are assessed on a
collective basis as they possess shared credit risk characteristics. They are grouped based on the days
past due and also according to the geographical location of customers.
The expected loss rates are based on the payment profile for sales over the past 48 months before 30
June 2020 and 30 June 2019 respectively as well as the corresponding historical credit losses during that
period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors
affecting the customer’s ability to settle the amount outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make
payments within 180 days from the invoice date and failure to engage with the Group on alternative
payment arrangement amongst other is considered indicators of no reasonable expectation of recovery.
45
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 7. OTHER ASSETS
(a) Current
Prepayments
(b) Non-Current
Security deposit
Consolidated
30 June
2020
$
Consolidated
30 June
2019
$
(b)
(c)
80,249
85,904
1,225
1,252
NOTE 8. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of areas of interest in:
Exploration and evaluation phases – at cost
28,089,144
22,307,976
Brought forward
22,307,976
13,206,273
Exploration expenditure capitalised during the period
Impairment of Dunlevy project
Foreign currency translation
At reporting date
6,508,471
(28,150)
(699,153)
28,089,144
8,043,509
(26,765)
1,084,959
22,307,976
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation
phases are dependent on the successful development and commercial exploitation or sale of the respective
areas.
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
•
•
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
i)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; or
ii) exploration and evaluation activities in the area of interest have not at the balance date reached a
stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching, assaying, sampling and associated activities and an allocation of
depreciation and amortised of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
46
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 8. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE (Continued)
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognised for the asset in previous years.
Where a decision has been made to proceed with development in respect of a particular area of interest,
the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified
to development.
NOTE 9. PLANT & EQUIPMENT
Plant and Equipment
Plant and equipment at cost
Less: accumulated depreciation
Computer Equipment
Computer equipment at cost
Less: accumulated depreciation
Total Plant and Equipment
Movements in Plant and Equipment
Movements in Plant and Equipment
Balance at beginning of the year
Depreciation expense
Foreign currency translation
Balance at end of the year
Movements in Computer Equipment
Movements in Computer Equipment
Balance at beginning of the year
Additions
Depreciation expense
Foreign currency translation
Balance at end of the year
Consolidated
30 June
2020
$
Consolidated
30 June
2019
$
93,008
(60,583)
32,425
23,659
(18,718)
4,941
37,366
37,498
(4,457)
(616)
32,425
5,609
-
(572)
(96)
4,941
95,032
(57,534)
37,498
23,779
(18,170)
5,609
43,107
40,140
(5,040)
2,398
37,498
-
5,938
(46)
(283)
5,609
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated over the estimated useful life of the assets as follows:
Plant and equipment – over 5 to 15 years (diminishing value)
Computer equipment – 3 years (diminishing value)
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
47
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9. PLANT & EQUIPMENT (Continued)
Annual Report Year Ended 30 June 2020
For an asset that does not generate largely independent cash inflows, recoverable amount is determined
for the cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to
be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount with
the impairment loss recognised in the statement of profit or loss and other comprehensive income.
Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is
derecognised.
NOTE 10. TRADE AND OTHER PAYABLES
(a) Current
Trade creditors(i)
Other creditors and accruals
Payroll liabilities
Consolidated
30 June
2020
$
Consolidated
30 June
2019
$
126,133
300,677
11,130
437,940
319,023
171,855
13,514
504,392
(i)
Trade payables are non-interest bearing and are normally settled on 30 day terms.
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services.
Trade and other payables are presented as current liabilities unless payment is not due within 12 months.
(b) Provisions
Provisions are annual leave benefits accrued to date.
20,033
20,033
-
-
(c) Non Current
Other payables
28,851
28,851
29,480
29,480
In June 2019, NWP Coal Canada Ltd was required to secure ongoing field studies with a further
safekeeping bond in the amount of C$338,536. As per the investment agreement between Jameson and
Bathurst, each party is required to submit their equitable portion of NWP’s safekeeping bond requirements,
being 92% an 8%, respectively. Bathurst’s holdings of the bond has been included in the Consolidated
Statement of Financial Position as a related party transaction. The amount is refundable to Bathurst when
the bond is refunded to NWP at the completion in accordance with the notice of work regulations and is
held interest free.
48
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. ISSUED CAPITAL AND OPTIONS
Fully paid ordinary shares 263,766,890 (2019: 263,766,890)
Total
(a) Movements in fully paid ordinary shares on issue:
Annual Report Year Ended 30 June 2020
30 June
2020
$
31,589,220
31,589,220
30 June
2019
$
31,589,220
31,589,220
As at
30 June 2020
Number
As at
30 June 2020
$
As at
30 June 2019
Number
As at
30 June 2019
$
Fully paid ordinary shares
263,766,890
31,589,220
263,766,890
31,589,220
Consolidated
Year Ended 30 June 2020
Year Ended 30 June 2019
Number
$
Number
$
At beginning of the reporting period
263,766,890
31,589,220
256,624,033
30,844,030
Movements in ordinary shares on issue
Options exercised - $0.105, 30 Sept 2018
Capital raising costs
At end of reporting period
(b) Movements in options on issue:
Consolidated
-
-
263,766,890
-
-
31,589,220
7,142,857
-
263,766,890
750,000
(4,810)
31,589,220
Year Ended
30 June 2020
Number
Year ended
30 June 2019
Number
At the beginning of the reporting period
6,400,000
11,142,857
Options issued during the year:
Exercise of $0.105 options expiring 30 Sept 2018
Issue of Director options exercisable $0.30 on or before 31 Dec 2021
Issue of Director options exercisable $0.40 on or before 31 Dec 2022
Issue of Director options exercisable $0.50 on or before 31 Dec 2023
Cancellation of LTI CEO options exercisable $0.40 on or before 31 Dec
2022(i)
-
-
-
-
(1,333,333)
(7,142,857)
400,000
800,000
1,200,000
-
At reporting date
5,066,667
6,400,000
(i) During the reporting period, 1,333,333 CEO Options were cancelled in accordance with the retirement of
CEO. Refer Note 16 for details.
(c) Terms of Ordinary Shares
Voting Rights
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to
the number of shares held and in proportion to the amount paid up on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of
the share when a poll is called, otherwise each shareholder has one vote on a show of hands.
49
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. ISSUED CAPITAL AND OPTIONS (Continued)
(d) Terms of Options
Annual Report Year Ended 30 June 2020
At the end of the reporting period, 5,066,667 options over unissued shares were on issue:
Expiry Date
31 December 2020
31 December 2021
31 December 2022
31 December 2023
Exercise Price
$0.20
$0.30
$0.40
$0.50
Number of Shares
750,000
1,650,000
1,466,667
1,200,000
NOTE 12. RESERVES
Equity Based Payment Reserve (a)
Foreign Currency Translation Reserve (b)
Contribution Reserve (c)
(a) Equity Based Payments Reserve:
Balance at the beginning of the year
Value of Director options
Value of Director performance rights
Balance at the end of the year
(b) Foreign Currency Translation Reserve:
Balance at the beginning of the year
Foreign exchange differences
Balance at the end of the year
(c) Contribution Reserve:
Balance at the beginning of the period
Contribution by BRL in relation to NWP
Balance at the end of the period
Consolidated
30 June
2020
$
Consolidated
30 June
2019
$
1,518,155
1,099,252
9,592,128
12,209,535
1,403,975
160,528
(46,348)
1,518,155
1,739,829
(640,577)
1,099,252
5,807,621
3,784,507
9,592,128
1,403,975
1,739,829
5,807,621
8,951,425
1,202,221
172,786
28,968
1,403,975
505,152
1,234,677
1,739,829
-
5,807,621
5,807,621
Equity Based Payments Reserve:
This reserve is used to record the value of equity benefits provided to directors as part of their
remuneration. Refer to Note 16.
Foreign Currency Translation Reserve
Foreign currency translation reserve records exchange differences arising on translation of the
subsidiaries’ functional currency (Canadian Dollars) into presentation currency at balance date.
Contribution Reserve
Contribution reserve represents the excess of the consideration received from Bathurst Resources Limited
compared to the non-controlling interest (“NCI”) in NWP Coal Canada Limited share of the carrying book
value. The carrying book value is determined at the date of the corresponding increase in NCI interest of
Bathurst Resources Limited, for which the consideration received relates.
NOTE 13. ACCUMULATED LOSSES
Accumulated losses at the beginning of the year
Net profit/(loss) for the year
Accumulated losses at the end of the year
(18,081,003)
105,103
(17,975,900)
(16,947,908)
(1,133,095)
(18,081,003)
50
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a) Details of key management personnel
Annual Report Year Ended 30 June 2020
The following persons were key management personnel of Jameson Resources Limited during the
financial year:
Nicole Hollows
Joel Nicholls
Steve van Barneveld
T. Arthur Palm
Non-Executive Chair (appointed 15 March 2020)
Executive Director (appointed Executive Director 15 March 2020,
resigned Non-Executive Director 15 March 2020)
Non-Executive Director
Chief Executive Officer and Interim Chairman (retired 15 March 2020)
The aggregate compensation made to directors and other key management personnel or the Group is
set out below:
Short-term employee benefits
Cash bonus
Post-employment benefits
Share based payments
NOTE 15. EMPLOYEE BENEFITS
Consolidated
Year Ended
30 June 2020
$
467,368
147,814
11,375
114,180
740,737
Consolidated
Year Ended
30 June 2019
$
506,558
95,433
8,550
201,754
812,295
At 30 June 2020, Jameson Resources Limited had 1 (2019: 2) full time employees. Mr M Allen commenced
employment with the Company’s subsidiary NWP Coal Canada. Mr Allen was appointed as the Crown
Mountain General Manager, and as such his salary is included in capitalised exploration.
NOTE 16. EQUITY BASED PAYMENTS
During the year, the Company issued Incentive Options to the Company’s CEO and Non-executive Directors
under the Jameson Long Term Incentive plan.
Equity based payments expensed are detailed below:
Consolidated
Year Ended
30 June 2020
$
Consolidated
Year Ended
30 June 2019
$
160,528
(46,348)
114,180
172,786
28,968
201,754
Director options
Performance rights
CEO Options
During the year 1,333,333 options exercisable at $0.40 expiring 27 November 2020 were cancelled in
accordance with the retirement of CEO.
51
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. EQUITY BASED PAYMENTS (Continued)
Director Options
Annual Report Year Ended 30 June 2020
During the year ended 30 June 2019, the Company issued 1,200,000 Director Options to each of the
Company’s directors, Mr Steve van Barneveld and Mr Joel Nicholls, as a reward and incentive.
The vesting conditions are based upon based on the earlier of the following:
(i)
(ii)
The Non-executive director is required to remain a director of the Company for the vesting period
stated in the above table.
A Change of Control Events as defined in the terms, which includes a bona fide takeover bid
being declared unconditional and the bidder having acquired a relevant interest in at least 50.1%
of the Company’s issued Shares, a scheme of arrangement, or a change of control of the Board.
Director
Options
Tranche
1
2
3
No. of Options
Exercise
Price
Expiry Date
Vesting Period
Expiry
400,000
800,000
1,200,000
A$0.30
A$0.40
A$0.50
31/12/2021
0
31/12/2022
27/11/2019
31/12/2023
27/11/2020
0
No. of
Options
Vested
400,000
800,000
The fair value of the Incentive Options granted are estimated at the date of grant using the Black-Scholes
option pricing model and based on the assumptions set out below:
Assumptions:
Valuation date
Market price of Shares
Exercise price
Expiry date
Risk free interest rate
Dividend Yield
Expected future volatility
Vesting milestone (Time in office)
Director Options
Tranche 1
Director Options
Tranche 2
Director Options
Tranche 3
27/11/2018
27/11/2018
27/11/2018
$0.17
$0.30
$0.17
$0.40
$0.17
$0.50
31/12/2021
31/12/2022
31/12/2023
2.10%
0
80%
-
2.20%
0
80%
2.32%
0
80%
12 Months
24 Months
Indicative value per Director Option
$0.067
$0.071
$0.076
Number of options
Total Value of Director Options $
400,000
26,987
800,000
56,728
1,200,000
91,184
As at 30 June 2020 management has provided the best estimate of the number of options expected to vest.
The options have been valued in accordance with AASB 2 Share Based Payments, and are bought to
account over their vesting periods.
52
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. EQUITY BASED PAYMENTS (Continued)
Annual Report Year Ended 30 June 2020
The following table illustrates the number and weighted average exercise prices (WAEP) of and movements
in share options issued during the year:
2020
Balance at
Exercise the start of
Grant date
Expiry date
price
the year
Granted Exercised
Expired/ Balance at
the end of
cancelled
the year
15/11/2017
15/11/2017
15/11/2017
27/11/2018
27/11/2018
27/11/2018
31/12/2020
31/12/2021
31/12/2022
31/12/2020
31/12/2021
31/12/2022
$0.20
750,000
$0.30 1,250,000
$0.40 2,000,000
400,000
$0.30
$0.40
800,000
$0.50 1,200,000
6,400,000
-
-
-
-
-
-
-
-
-
-
-
- (1,333,333)
-
-
-
-
-
-
- (1,333,333)
750,000
1,250,000
666,667
400,000
800,000
1,200,000
5,066,667
2019
Grant date
Expiry date
15/11/2017
15/11/2017
15/11/2017
27/11/2018
27/11/2018
27/11/2018
31/12/2020
31/12/2021
31/12/2022
31/12/2020
31/12/2021
31/12/2022
Balance at
Exercise the start of
price
the year
Granted
Expired/ Balance at
the end of
the year
forfeited/
other
Exercised
$0.20
750,000
$0.30 1,250,000
$0.40 2,000,000
$0.30
400,000
800,000
$0.40
$0.50 1,200,000
6,400,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
750,000
1,250,000
2,000,000
400,000
800,000
1,200,000
6,400,000
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
15/11/2017
27/11/2018
15/11/2017
27/11/2018
31/12/2020
31/12/2020
31/12/2021
31/12/2021
2020
Number
2019
Number
750,000
400,000
1,250,000
800,000
750,000
400,000
1,250,000
-
3,200,000
2,400,000
The weighted average share price during the financial year was $0.36 (2019: $0.37).
The weighted average remaining contractual life of options outstanding at the end of the financial year
was 1.65 years (2019: 2.83 years).
Long Term Incentive – Performance Rights
During the year, 3,000,000 Performance Rights were cancelled in accordance with the retirement of the
CEO.
NOTE 17. RELATED PARTY DISCLOSURES
Other than as noted in Note 10(c), there are no other related party transactions.
53
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The main risks arising from the Group’s financial instruments are market risk, currency risk and interest rate
risk.
This note presents information about the Group’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk, and the management of capital.
The Board has overall responsibility for the establishment and oversight of the risk management framework.
The Board reviews and agrees policies for managing each of these risks and they are summarised below.
The Group’s principal financial instruments comprise cash and short term deposits. The main purpose of
the financial instruments is to earn the maximum amount of interest at a low risk to the Group. The Group
also has other financial instruments such as trade debtors and creditors which arise directly from its
operations.
Market Risk
(a)
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments.
The Group is exposed to movements in market interest rates on short term deposits. The policy is to monitor
the interest rate yield curve out to 120 days to ensure a balance is maintained between the liquidity of cash
assets and the interest rate return. The Group does not have short or long term debt, and therefore this risk
is minimal.
Currency Risk
(b)
Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a
currency that is not the functional currency of the Group. The Group deposits are denominated in both
Canadian and Australian dollars. BRL provides funding at agreed Canadian amounts for each Tranche of
funding and the funding to be provided outside the remaining Tranche Two Option Advance that is not
considered in the existing Investment Agreement and Shareholder Agreement to minimise the impact to
the project from fluctuations in the Canadian exchange rate. At the year end the majority of deposits were
held in Canadian dollars. Currently, there are no foreign exchange programs in place. Based upon the
above, the impact of reasonably possible changes in foreign exchange rates for the Group is not material.
Interest Rate Risk
(c)
The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations of the settlement period for all other financial
instruments. As such, the amounts might not reconcile to the statement of financial position.
30 June 2020
FINANCIAL ASSETS
Non-interest bearing
Variable interest rate
instruments
Fixed interest rate instruments
FINANCIAL LIABILITIES
Non-interest bearing
NET FINANCIAL ASSETS
Weighted
Average
Effective
Interest
Rate
%
0.60%
Less than 1
month
1 to 3
months
3 months to
1 year
1 to 5
years
Total
$
$
$
$
$
1,833,707
-
781,580
2,615,287
437,940
2,177,347
-
-
-
-
-
-
-
-
-
-
-
-
1,142,955
-
2,976,662
-
-
781,580
1,142,955
3,758,242
28,851
466,791
1,114,104
3,291,451
54
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
30 June 2019
Weighted
Average
Effective
Interest
Rate
%
1.45%
Less than 1
month
1 to 3
months
3 months
to 1 year
1 to 5
years
Total
$
$
$
$
$
1,736,742
-
963,115
2,699,857
504,392
2,195,465
-
-
-
-
-
-
- 1,167,837
-
-
2,904,579
-
-
-
963,115
- 1,167,837
3,867,694
-
29,480
533,872
- 1,138,357
3,333,822
FINANCIAL ASSETS
Non-interest bearing
Variable interest rate
instruments
Fixed interest rate instruments
FINANCIAL LIABILITIES
Non-interest bearing
NET FINANCIAL ASSETS
Net fair value of financial assets and liabilities
The carrying amount of financial assets and liablitlies approximates fair value because of their short-term
maturity.
NOTE 18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
Interest Rate Sensitivity Analysis
(d)
At 30 June 2020, the effect on loss and equity as a result of changes in the interest rate, with all other
variable remaining constant would be as follows:
CHANGE IN LOSS
Increase in interest rate by 1%
Decrease in interest rate by 1%
CHANGE IN EQUITY
Increase in interest rate by 1%
Decrease in interest rate by 1%
2020
$
Change
26,650
(26,650)
2019
$
Change
9,631
(9,631)
Change
Change
(26,650)
26,650
(9,631)
9,631
Credit Risk
(e)
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of only dealing with creditworthy counterparties and
obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of
financial loss from defaults.
The Group operates in the mining exploration sector; it therefore does not supply products and have trade
receivables and is not exposed to credit risk in relation to trade receivables. The Group does not have any
significant credit risk exposure to any single counterparty or any Company of counterparties having similar
characteristics.
The Group’s maximum exposure to credit risk at each balance date in relation to each class of recognised
financial assets is the carrying amount, net of any allowance for doubtful debts, of those assets as indicated
in the statement of financial position. The maximum credit risk exposure of the Group at 30 June 2020 is nil
(2019: nil). There are no impaired receivables at 30 June 2020 (2019: Nil).
55
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)
Liquidity Risk
(f)
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.
The Group manages liquidity risk by monitoring forecast cash flows on a rolling monthly basis and entering
into supply contracts which can be cancelled within a short timeframe. The Group does not have any
significant liquidity risk as the Group does not have any collateral debts.
Capital Management
(g)
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so it may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to credit
facilities and therefore is not subject to any externally imposed capital requirements, with the primary
sources of project funding to date being the investment by Bathurst Resources Limited (“Bathurst”) and
raising funds from equity markets. Accordingly, the objective of the Group’s capital risk management is to
balance the current working capital position against the requirements to meet progressing evaluation work
(such as Bankable Feasibility Study and Environment Assessment Certificate Application), project related
costs and corporate overheads. To date this has been achieved in part by maintaining open communication
with Bathurst to ensure the appropriate liquidity to meet anticipated operating requirements for which BRL
contributes, and ensuring that sufficient funding is available in Jameson Resources Limited to achieve the
strategic objectives as set out by the Board. Going forward, operations budget and cashflow forecasts are
monitored to ensure sufficient funding for Jameson to meet expenditure requirements given that Bathurst
have advised they will no longer be sole funding and prorate contributions are required for Crown Mountain
Project.
The directors consider that the carrying value of the financial assets and financial liabilities recognised in
the consolidated financial statement approximate their fair value.
NOTE 19. PROFIT/(LOSS) PER SHARE
(a) Profit/(loss) used in the calculation of basic
profit/(loss) per share
(b) Weighted average number of ordinary shares
outstanding during the reporting period used in
calculation of basic profit/(loss) per share:
Consolidated
2020
$
Consolidated
2019
$
105,103
(1,133,095)
Number of
shares
Number of
shares
263,297,223
263,297,223
(c) Weighted average number of ordinary shares
outstanding during the reporting period used in
calculation of diluted profit/(loss) per share:
263,297,223
263,297,223
Basic profit/(loss) per share is calculated as net profit or loss attributable to members of the parent,
adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends,
divided by the weighted average number of ordinary shares, adjusted for any bonus element.
56
NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. PROFIT/(LOSS) PER SHARE (Continued)
Annual Report Year Ended 30 June 2020
Diluted profit/(loss) per share is calculated as net profit or loss attributable to members of the parent,
adjusted for:
• costs of servicing equity (other than dividends) and preference share dividends;
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from
the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares
and dilutive potential ordinary shares, adjusted for any bonus element.
NOTE 20. CASH FLOW INFORMATION
(i) Reconciliation of cash and cash equivalent:
Consolidated
Year Ended
30 June 2020
$
Consolidated
Year Ended
30 June 2019
$
Cash at Bank
2,615,287
2,699,857
(ii) Reconciliation of cash flows from operating
activities with loss after income tax
Profit/(loss) after income tax
418,918
(1,125,360)
Add: Non-cash items:
- Depreciation
- Equity based payments
- Exchange differences on translation
- Impairment of projects
- Income tax benefit (BCMETC) classified as investing
activity
Changes in assets and liabilities
5,029
114,180
28,938
28,150
(1,772,248)
5,086
201,754
62,451
26,765
-
- Decrease/(Increase) in trade and other receivables
- Increase/(Decrease) in trade and other payables
172,019
(47,047)
(598,634)
288,362
Net cash outflows from operating activities
(1,052,061)
(1,139,576)
(iii) Non-cash financing and investing activities
2020 and 2019
There were no non-cash financing or investing activities during the financial year ended 30 June 2020 or
the prior year.
57
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. SEGMENT REPORTING
Annual Report Year Ended 30 June 2020
Jameson Resources Limited operates predominantly in one industry being the mining exploration and
evaluation industry in Canada, with its corporate function located in Australia.
Segment Information
Identification of reportable segments
The Company has identified its operating segments based on the internal reports that are reviewed and
used by the chief operating decision maker (being the Board of Directors) in assessing performance and
determining the allocation of resources.
The Company is managed primarily on the basis of evaluation of its coal exploration tenements in Canada
and its corporate activities. Operating segments are therefore determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are
considered to have similar economic characteristics.
Types of reportable segments
(i) Coal exploration and evaluation
Segment assets, including acquisition cost of exploration licenses and all expenses related to the
licenses in Canada are reported on in this segment.
(ii) Corporate
Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed
entity. Segment assets, including cash and cash equivalents, and investments in financial assets are
reported in this segment.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision
maker with respect to operating segments are determined in accordance with accounting policies that are
consistent to those adopted in the annual financial statements of the Company.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the
majority of economic value from the asset. In the majority of instances, segment assets are clearly
identifiable on the basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and
the operations of the segment. Segment liabilities include trade and other payables.
58
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. SEGMENT REPORTING (Continued)
30 June 2020
Corporate
Annual Report Year Ended 30 June 2020
Coal
Exploration
and
Evaluation
Total
(i) Segment performance
Segment revenue
Segment results
Included within segment results:
• Depreciation
•
Interest revenue
• ATO Cashboost – COVID 19
• British Columbia Mining Exploration
Tax Credit
• Exploration impairment
Segment assets
Segment liabilities
Non-current assets
$
$
$
27,559
19,293
(1,090,462)
1,509,380
-
3,469
24,090
5,029
19,293
-
46,852
418,918
5,029
22,762
24,090
-
1,618,439
1,618,439
28,150
28,150
1,370,936
30,683,044
32,053,980
26,384
460,440
486,824
-
29,270,690
29,270,690
30 June 2019
Corporate
Coal
Exploration
and
Evaluation
Total
(i) Segment performance
Segment revenue
Segment results
$
$
$
19,394
(1,177,877)
1,893
52,517
21,287
(1,125,360)
Included within segment results:
• Depreciation
•
Interest revenue
• British Columbia Mining Exploration
Tax Credit
• Exploration impairment
-
19,394
-
-
5,086
1,893
131,257
26,765
5,086
21,287
131,257
26,765
Segment assets
Segment liabilities
Non-current assets
1,706,253
24,831,015
26,537,268
69,284
44,359
464,588
533,872
23,475,813
23,520,172
59
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. SEGMENT REPORTING (Continued)
Annual Report Year Ended 30 June 2020
(ii)
(iii)
Revenue by geographical region
There was no revenue attributable to external customers for the year ended 30 June 2020.
Assets by geographical region
Non-current assets by geographical region are as follows.
Australia
Canada
30 June 2020
30 June 2019
$
-
$
-
29,270,690
23,520,172
NOTE 22. EVENTS SUBSEQUENT TO REPORTING DATE
On 9 July 2020, the Company announced the result to the Bankable Feasibility Study at its Crown Mountain
Hard Coking Coal Project.
On 28 July 2020, the Company completed a capital raising via Placement raising $4.7m before costs and
issuing 39.5m shares at $0.12 per share to fund Jameson’s share of Crown Mountain Project related costs,
to enable the EA Application to be submitted in March 2021 quarter, undertake BFS optimisation work and
general working capital purposes, given Bathurst’s advice that they will no longer use their discretion and
sole fund these costs utilising the Tranche Two Option Advance.
Other than detailed above, no matters or circumstances have arisen since the year end which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state
of affairs of the Group in future financial years.
NOTE 23. CONTINGENCIES
Dunlevy Energy Inc. acquisition
As a condition for the acquisition of Dunlevy Energy Inc. and the Dunlevy Project, Jameson agreed to pay
Mr Ken Murfitt C$250,000 (plus Canadian HST) upon commencement of commercial production from the
Dunlevy Project.
The Company is not aware of any further contingent liabilities or contingent assets other than disclosed
above.
NOTE 24. COMMITMENTS
(a) Project Related commitments
The Company’s project related commitments are as follows:
Not longer than 1 year
Longer than 1 but not longer than 5
years
Longer than 5 years
Total
30 June 2020
30 June 2019
$
279,671
1,118,684
279,671
1,678,026
$
296,039
1,184,156
296,039
1,776,234
Project related commitments consist of Crown Mountain and Dunlevy licences and other annual payments
and an annual payment of C$100,000 to Mr Bob Morris pursuant to the agreement dated 11 April 2011
between Mr Bob Morris and NWP Coal Canada Pty Ltd relating to the Crown Mountain Project. Jameson
will continue to pay the annual rental sum for the use and possession of Mr Bob Morris’s interest in the
project until such time as the Mining Work is suspended or Jameson elects to acquire the final 10% interest
in the project for an agreed price of $2,000,000. Mr Bob Morris is not entitled to receive any share in the net
profits from any mining or other operations on the property from Jameson.
60
Annual Report Year Ended 30 June 2020
NOTES TO THE FINANCIAL STATEMENTS
NOTE 24. COMMITMENTS (Continued)
(b) Lease expenditure commitments
The Company’s operating lease expenditure commitment, including all outgoings, is as follows:
Not longer than 1 year
Longer than 1 but not longer than 5 years
Longer than 5 years
Total
2020
$
14,765
-
-
14,765
2019
$
8,980
-
-
8,980
The Group adopted AASB 16 Leases during the year. Commitments above relate to leases that have
not been bought into Consolidated Statement of Financial Position. Refer Note 1(b).
(c) Remuneration Commitments
The terms of the employment agreement for Mr Mike Allen, General Manager of NWP Coal Canada,
includes a termination payment equalling 6 months of salary.
Other than disclosed in (a) – (c) above, the company has no further contractual commitments at 30 June
2020.
(d) Guarantees
As at 30 June 2020 and 2019, the Company had not entered into any guarantees.
NOTE 25. INTEREST IN SUBSIDIARIES
The following companies are subsidiaries of Jameson Resources Limited.
Name
Country of
Incorporation
Percentage of equity
interest held by
Consolidated Entity
2019
%
2020
%
Investment
2020
$
2019
$
NWP Coal Canada Ltd(i)
Dunlevy Energy Inc.
Canada
Canada
77.8
100
92
100
15,083,181
31
15,083,181
31
(i) On 29 September 2019, the percentage of NWP Coal Canada common shares held by Jameson
Resources Limited reduced to 80.0% and equity interests to 77.8%, as a result of the investment
pursuant to the Agreements with Bathurst Resources Ltd. Refer Note 27.
61
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. PARENT ENTITY DISCLOSURES
(a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total equity
(b) Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
Annual Report Year Ended 30 June 2020
30 June
2020
$
1,374,520
9,250,293
10,624,813
30 June
2019
$
1,706,253
9,934,245
11,640,498
29,968
29,968
69,369
69,369
31,589,220
(22,512,529)
1,518,155
10,594,846
31,589,220
(21,422,066)
1,403,975
11,571,129
Year ended
30 June 2020
$
(1,090,462)
-
(1,090,462)
Year ended
30 June 2019
$
(1,668,569)
-
(1,668,569)
(c) Contingent liabilities
As at 30 June 2020 (2019: nil), the Company had no contingent liabilities.
(d) Contractual Commitments
As at 30 June 2020 (2019: nil), the Company had no contractual commitments.
(e) Guarantees entered into by parent entity
As at 30 June 2020 and 2019, the Company had not entered into any guarantees.
The financial information for the parent entity, Jameson Resources Ltd, has been prepared on the same
basis as the consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are accounted for at cost, less any
impairment, in the parent entity. Dividends received from subsidiaries are recognised as other income by
the parent entity and its receipt may be an indicator of an impairment of the investment.
Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings
in the Group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee
services received, measured by reference to the grant date fair value, is recognised over the vesting period
as an increase to investment in subsidiary undertakings, with a corresponding credit to equity.
62
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 27. NON-CONTROLLING INTEREST (NCI) AND AGREEMENT WITH BATHURST RESOURCES
LIMITED
On 29 June 2018, the Company and NWP Coal Canada Ltd entered into an Investment Agreement and
Shareholders Agreement with Bathurst Resources Limited, an ASX listed company that has coal operations
in New Zealand.
Key terms of the agreements are as follows:
o
Initial payment of C$4 million to convert to 8,000,000 fully paid ordinary shares in NWP Coal
Canada Inc. (received 13 July 2018 reflecting 8% common ownership interest)
o a second tranche entitled Option One of C$7.5 million (completed 2 Oct 2019 taking common
ownership interest to 20%)
o an Option Two Advance at Bathurst’s discretion of up to C$5 million converting to Class B
preference shares issued (as at 30 June 2020 $2.6 million received reflecting 2.2% ownership
via Class B preference shares),
o a final tranche entitled Tranche Two of C$110 million, which would reduce by any funds advanced
early under the Option Two Advance, which would then convert to 50% total common ownership
interest.
• As a result of the above funding, Bathurst’s ownership interest in NWP will be as follows:
o
o
o
initial investment of C$4 million: 8% (completed);
following completion of the second tranche of C$7.5 million: 20% (completed); and
following completion of the final tranche of C$110 million, Crown Mountain will be operated as a
50:50 joint venture between Jameson and Bathurst.
During the year, Bathurst exercised its Tranche One Option and earned a 20 percent ownership of
subsidiary NWP Coal Canada Limited(“NWP) contributing C$2.64 million (A$2.9 million) towards the
completion of the Tranche One Option and triggering the conversion of 7,500,000 Class A Preference
shares, on a 1:1 ratio to 7,500,000 fully paid ordinary shares in NWP resulting in a total shareholding of
11,500,000 fully paid ordinary shares (20 percent ownership).
As at 30 June 2020, Bathurst had met NWP’s request for a portion of the Tranche Two Option Advances,
providing C$2.6 million (A$2.9 million) and the issuing of 326,182 Class B Preference Shares (2.2 percent
ownership interest).
Class B Preference Shares automatically convert into fully paid ordinary shares of NWP upon BRL’s
exercise of the second tranche.
Bathurst’s non-controlling interest in NWP for the period is a net gain of $313,815 as a result of NWP
reporting a net profit of $1,478,909.
Set out below is summarised financial information for the subsidiary that has non-controlling interests that
are material to the Group. The amounts disclosed for the subsidiary are before inter-company eliminations.
63
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 27. NON-CONTROLLING INTEREST (NCI) AND AGREEMENT WITH BATHURST RESOURCES
LIMITED (Continued)
NCI Percentage
Summarised financial position
Current assets
Current liabilities
Current net assets
Non-current assets
Non-current liabilities
Non-current net assets
Total net assets
Accumulated NCI
Summarised Statement of Profit or Loss and
Other Comprehensive Income
Revenue
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income/(loss)
Summarised Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and
cash equivalents
NWP Coal Canada
Ltd
30 June 2020
A$
22.2%
1,381,704
(431,589)
950,115
29,270,689
(1,139,765)
28,130,924
29,081,039
5,744,301
19,277
(313,815)
(160,144)
(153,671)
1,713,314
(7,260,338)
5,820,929
(273,905)
64
NOTES TO THE FINANCIAL STATEMENTS
Annual Report Year Ended 30 June 2020
NOTE 27. NON-CONTROLLING INTEREST (NCI) AND AGREEMENT WITH BATHURST RESOURCES
LIMITED (Continued)
Movements in Equity on issue:
Common shares
Preference shares on issue
Common shares
As at
30 June 2020
Number
2,300,000
326,182
As at
30 June 2020
A$
12,171,106
2,896,502
Year Ended 30 June 2020
Number
$
At beginning of the reporting period
800,000
4,109,720
Movements in common shares on issue
Exercise of Tranche One – conversion of Class A
Preference shares
At end of reporting period
1,500,000
8,061,386
2,300,000
12,171,106
As at
30 June 2020
Number
As at
30 June 2020
A$
Preference shares
Number
$
At beginning of the reporting period
972,000
5,126,543
Movements in preference shares on issue
Bathurst Tranche One - July @ C$5 per share
Bathurst Tranche One - August @ C$5 per share
Bathurst Tranche One - September @ C$5 per share
Bathurst Tranche One - October @ C$5 per share
Exercise of Tranche One – conversion of Class A
Preference shares
Class B - November @ C$7.97 per share
Class B - December @ C$7.97 per share
Class B - January @ C$7.97 per share
Class B - February @ C$7.97 per share
Class B - March @ C$7.97 per share
At end of reporting period
96,200
100,000
100,000
231,800
(1,500,000)
67,746
82,800
62,727
31,364
81,545
326,182
524,823
554,139
549,571
1,306,310
(8,061,386)
596,421
726,312
556,545
279,175
738,049
2,896,502
65
DIRECTORS’ DECLARATION
Annual Report Year Ended 30 June 2020
1.
In the opinion of the Directors of Jameson Resources Limited (the ‘Company’):
a.
the financial statements, notes and the additional disclosures are in accordance with the
Corporations Act 2001 including:
I.
ii.
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
performance for the year then ended; and
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001;
b.
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable; and
c. the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
2.
This declaration has been made after reviewing the declarations required to be made to the Directors
in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June
2020.
This declaration is signed in accordance with a resolution of the Board of Directors.
Nicole Hollows
Chairman
Dated this 21st day of September 2020
66
Annual Report Year Ended 30 June 2020
67
ADDITIONAL SHAREHOLDER INFORMATION
A. CORPORATE GOVERNANCE
Annual Report Year Ended 30 June 2020
A statement disclosing the extent to which the Company has followed the best practice recommendations set by
the ASX Corporate Governance Council during the reporting period is contained within the Corporate
Governance Statement and is available on the Company’s website.
B. SHAREHOLDING
1. Substantial Shareholders
The names of the substantial shareholders listed on the company’s register as at 7 September 2020:
Shareholder
J P Morgan Nominees Australia Limited
Perth Investment Corporation Ltd
Hillboi Nominees Pty Ltd
2. Unquoted Securities
Class of Equity Security
20 cents options expiring 31 December 2020
30 cents options expiring 31 December 2021
40 cents options expiring 31 December 2022
50 cents options expiring 31 December 2023
Number
55,355,417
17,100,000
16,528,900
Percentage of issued
capital held
18.25%
5.64%
5.45%
Number
750,000
1,650,000
1,466,667
1,200,000
Number of Security
Holders
1
3
3
2
Names of persons holding greater than 20% of a class of unquoted equities:
Class of Equity Security
20 cents options expiring 31 December 2020
30 cents options expiring 31 December 2021
40 cents options expiring 31 December 2022
30 cents options expiring 31 December 2021
40 cents options expiring 31 December 2022
50 cents options expiring 31 December 2023
30 cents options expiring 31 December 2021
40 cents options expiring 31 December 2022
50 cents options expiring 31 December 2023
Number
750,000
1,250,000
666,667
200,000
400,000
600,000
200,000
400,000
600,000
Holder
Art Palm
Art Palm
Art Palm
Joel Nicholls
Joel Nicholls
Joel Nicholls
Steve van Barneveld
Steve van Barneveld
Steve van Barneveld
3. Number of holders in each class of equity securities and the voting rights attached
There are 574 holders of ordinary shares. Each shareholder is entitled to one vote per share held.
There are 0 holders of listed options.
On a show of hands every shareholder of ordinary shares present at a meeting in person or by proxy, is entitled
to one vote, and upon a poll each share is entitled to one vote.
68
ADDITIONAL SHAREHOLDER INFORMATION
Annual Report Year Ended 30 June 2020
4. Distribution schedule of the number of holders in each class of equity security as at 7 September 2020.
Number Held as at 7 September 2020
Fully Paid Ordinary Shares
Class of Equity Securities
1-1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Totals
5. Marketable Parcel
44
67
94
193
176
574
Holders of less than a marketable parcel: fully paid shares
96
6. Twenty largest holders of each class of quoted equity security
The names of the twenty largest holders of each class of quoted equity security, the number of equity security
each holds and the percentage of capital each holds (as at 7 September 2020) is as follows:
Name
1 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
2 PERTH INVESTMENT CORPORATION LTD
3 HILLBOI NOMINEES PTY LTD
4 WHOLESALERS (MORLEY) PTY LTD
5 MR ROBERT SIMEON LORD
6 ZERO NOMINEES PTY LTD
7
8
BNP PARIBAS NOMINEES PTY LTD
MR TIMOTHY GUY LYONS & MRS HEATHER MARY LYONS
9 WALLOON SECURITIES PTY LTD
10 RPM SUPER PTY LTD
11 SPAR NOMINEES PTY LTD
12 DEERING NOMINEES PTY LTD
13 BURRA PTY LTD
14 LUJETA PTY LTD
15 EUGOB NOMINEES PTY LTD
16 GOLDFIRE ENTERPRISES PTY LTD
17 GREATSIDE HOLDINGS PTY LTD
18
MR NICHOLAS CRISPIN LYONS & MRS KERRIE MAREE
LYONS
19 WASHINGISHU PTY LTD
20
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV
LTD
Number of
Ordinary Fully
Paid Shares
Held
55,355,417
Held of Issued
Ordinary Capital
(%)
18.25%
17,100,000
16,528,900
11,056,667
10,000,000
9,972,088
9,716,102
7,361,100
7,000,000
6,979,867
6,884,796
6,000,000
5,950,000
5,761,698
5,712,628
4,750,000
4,199,474
4,135,211
3,780,000
3,395,000
5.64%
5.45%
3.65%
3.30%
3.29%
3.20%
2.43%
2.31%
2.30%
2.27%
1.98%
1.96%
1.90%
1.88%
1.57%
1.38%
1.36%
1.25%
1.12%
TOTALS:
201,638,948
66.47%
7. Restricted Securities
There are no restricted securities on issue at the current date.
69
SCHEDULE OF MINERAL TENEMENTS
Annual Report Year Ended 30 June 2020
SCHEDULE OF MINERAL TENEMENTS
Jameson Resources Limited provides details of the Company’s consolidated interests in mineral tenements at the end
of the reporting period which reflects Jameson’s 77.8% interest in NWP Coal Canada Limited which holds a 90% interest
and 100% interest in various licences that form part of the Crown Mountain Hard Coking Coal Project, and a 100% direct
interest in the Dunlevy Metallurgical Coal Project located in British Columbia.
Project
Crown Mountain – North Block
Crown Mountain – South Block
Crown Mountain – West Crown
Crown Mountain – Southern Extension
Crown Mountain – Crown East
Crown Mountain – Northwest Extension
Crown Mountain – Northern Extension
Crown Mountain – Grave Creek
Crown Mountain – Alexander Creek
Crown Mountain – Grave Creek West
Dunlevy
Dunlevy
Location
British Columbia,
Canada
418150
418151
418152
418153
418154
418430
419273
419272
419274
419275
418441
418442
Jameson Resources Limited
ownership %
77.8%
77.8%
77.8%
77.8%
77.8%
77.8%
77.8%
77.8%
77.8%
77.8%
100%
100%
Consolidated
Interest
90%
90%
90%
90%
90%
100%
100%
100%
100%
100%
100%
100%
70