`
2020-21
Annual
Report
Jameson Resources Limited
ABN 89 126 398 294
Jameson Resources Limited | Annual Report 2020-21
Jameson is the
next generation
of the Canadian
Steelmaking Coal
Industry
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
Page 2 of 80
2
Table of Contents
Highlights
2020-21 In Review
Letter to Shareholders
About Jameson
Strategy
Assets
Sustainability
Diversity
Directors’ Report
• Directors
• Remuneration Report
Auditor’s Independence Declaration
Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholdings
Mineral Tenements
Corporate Directory
4
5
6
8
10
13
26
27
28
29
36
41
42
72
73
77
79
80
Jameson Resources Limited | Annual Report 2020-21
Annual Report
2020-21
Page 3 of 80
3
Jameson Resources Limited | Annual Report 2020-21
Highlights
for the year ended 30 June 2021
Mr Michael Gray
commenced as
Managing Director
on 1 March 2021
Mr Gray brings over 30 years’
experience in the resource and
infrastructure industry to Jameson
Mr Gray’s skillset and experience
in permitting, financing, mine
construction and operations are
strongly aligned with Jameson’s
requirements to successfully
permit and develop the Crown
Mountain Hard Coking Coal
Project
Experienced Board
Experienced and aligned
Management and Board with a
proven and successful track
record of developing and
financing greenfield projects
and generating outstanding
returns for shareholders
Increased Product Yield
and improved
economics from the
Crown Mountain Project
Bankable Feasibility Study
(BFS) optimisation has
maximised product yield by
increasing ash specification,
resulting in a 25%
improvement in NPV above the
2020 BFS
Completion of All
Technical Assessments
for the EA Application
All technical assessment and
reporting required for
submission of the
Environmental Assessment
(EA) for the Crown Mountain
Hard Coking Coal Project
(Project) in British Columbia
have now been completed
The Environmental Assessment Application is targeted to be submitted to
both British Columbia and Federal Regulators in the December 2021
quarter, following completion of a regulatorily required step in our ongoing
engagement with key Indigenous nations
Page 4 of 80
4
2020-2021
in Review
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 from increased levels of
regulation and compliance costs for coal projects,
increased volatility in steelmaking coal prices and
the negative impact COVID-19 has continued to
have on many countries around the world.
Highlights
The highlights for the past financial year have included:
•
•
•
•
•
Release of the Crown Mountain Hard Coking Coal
Bankable Feasibility Study in July 2020 (“2020 BFS”),
demonstrating an economically robust, high quality hard
coking coal mine with a 15-year mine life
Completed the yield optimisation study as part of the BFS
Optimisation Plan to produce a higher ash specification
coal product. The study reflected an improvement in the
expected overall yield and resulted in a 25% improvement
in NPV over the 2020 BFS
the Crown Mountain
Furthering
Environmental
Assessment Certificate Application (“EA Application”)
submission, with completion of all technical assessments
and baseline studies and progressing the cumulative
effects assessment throughout the Elk Valley
Progressing close engagement with Indigenous nations
and other stakeholders to ensure the EA is developed in a
responsible and transparent process, which has taken
longer than expected given the impact of COVID and the
need to complete a regulatorily required step in our
Indigenous nations
ongoing engagement with key
Continued engagement with
regulators and key
stakeholders including Provincial and Federal Regulators
and the Ktunaxa Nation Council (“KNC”)
Further development and broadening of our strategy,
including incorporating a revised purpose and a vision as
part of our strategic roadmap to deliver value to
shareholders through focus on implementing strategies
by being commercially focused with strong stakeholder
engagement to achieve sustainable growth. This has seen
the appointment of Michael Gray as Managing Director
and the employment of Dave Baines by NWP Coal Canada
to focus our engagement across with all stakeholders
•
Consideration of a number of potential value add
acquisitive growth opportunities whilst approvals for the
Crown Mountain Project are being progressed
Jameson Resources Limited | Annual Report 2020-21
•
Significant improvement in global seaborne steelmaking
coal demand and prices during the
last year and
particularly the strength of steelmaking coal prices for
Canadian coal with China’s ban on Australian coal imports
Challenges
Similar to previous financial year, the past year has also seen its
share of challenges that have included:
•
•
•
•
The impact of COVID-19 on the Company, its employees
and contractors and consultants has affected the way they
In particular, the ability to
undertake their work.
undertake extensive engagement with
Indigenous
nations, regional and local stakeholders in Canada was
significantly challenged during the year
Increasing regulatory requirements under
the EA
Application framework resulting in additional engagement
and assessment of regional cumulative effects to ensure
the Project’s potential impacts and benefits are well
understood by Regulators,
Indigenous nations and
stakeholders
Increasing global ESG expectations , particularly in relation
to the steelmaking and coal resource sectors and its
contribution to carbon emissions
Jameson funding 80% of Crown Mountain Project costs
for FY22, given our Joint Venture partner Bathurst
Resources Limited (“Bathurst or BRL”) exercised their
discretion to no longer fund 100% of cashcalls under the
Tranche Two Cash Advance Option. Jameson will be
required to pro-rata fund its 80% share of costs until Final
Investment Decision where Bathurst has the option to
exercise its discretion in relation to the Tranche Two
Option for C$107.4m remaining.
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 obtaining the relevant approvals to enable
Final Investment Decision (“FID”) and ultimately development.
Page 5 of 80
Page 5 of 80
Jameson Resources Limited | Annual Report 2020-21
Letter to Shareholders
the completion of all
Extensive work was undertaken on the EA
Application throughout the year, resulting
in
technical
June 2021 and the
assessments by
preparation of the EA Application for
submission to Provincial and Federal
regulators targeted in the Dec quarter
2021. This work is the culmination of more
than six years of environmental baseline
and
monitoring, effects
environmental
that
commenced in 2014.
assessment
approval work
first projects
to undertake
The Company supports the
increased
community interest in ensuring rigorous
environmental
impact assessment of
resource projects and is committed to
demonstrating the EA Application meets
the stringent guidelines of both Provincial
and Federal
regulators as well as
considering
the expectations of all
stakeholders. Crown Mountain is one of
the
the
cumulative effects assessments process to
consider the broader cumulative regional
impact of projects on the environment and
individual
community rather than an
project in isolation. Whilst this process has
created challenges due to the lack of
precedents, it has provided Jameson with
the opportunity
its
commitment to sustainable environmental
management, transparent engagement
and working together with Regulators and
Indigenous nations.
to demonstrate
Jameson recognises the critical ongoing
role of steelmaking coal in global economic
development and acknowledges increasing
concern about carbon emissions from the
steel industry. The Company is committed
leader amongst
to being an ESG
and
steelmaking
developers
coal
engagement with
maximising
all
to enable delivery of
stakeholders
sustainable outcomes
local and
regional communities, customers and the
environment. The progress made on the
Project is directly underpinned by the
implementing
Company’s values and
strategies with
stakeholder
strong
engagement to achieve growth sustainably
and being commercially focused with a
continuous improvement mindset.
for
Progressing the Crown
Mountain Hard Coking Coal
Project in British Columbia
Dear Shareholder,
The past year has been a significant year for
your Company, Jameson Resources Limited
(“Jameson” or “the Company”) in progressing
the Crown Mountain Hard Coking Coal Project
(“the Project”) through the evaluation phase.
It has been a year of highlights critical to
moving the Project closer to obtaining
relevant approvals to enable Final Investment
Decision (“FID”) and has also included a
strengthening of our leadership and internal
resources.
impacts
whilst maintaining
The Company is proud to have been able to
continue to significantly advance the Project
against another year of overall challenging
macroeconomic environment. The last year
has continued to experience uncertainty and
negative global economic
from
impact was also felt on
COVID-19. This
steelmaking coal demand, prices and project
regulatory approval processes. The Company
has continued to monitor the external
its
environment
commitment to progressing the evaluation
and permitting of the Project. We are pleased
to note that during the second half of the year,
there has been substantial increase in global
for seaborne steelmaking coal,
demand
particularly for quality hard coking coal from
Canada. This macroeconomic environment
supports
the
fundamentals of the steelmaking coal market
- that growth in demand continues to exceed
the growth in supply, a situation that provides
an excellent platform for development of
Crown Mountain.
the Company’s view on
The Company progressed a number of key
milestones and activities toward development
of Crown Mountain during the year. The
release of the BFS in July 2020 confirmed the
Project as a compelling opportunity for
development of a premium hard coking coal
Project with an attractive operating cost
structure and direct access to infrastructure.
Progress of the Yield Optimisation Study
during the year further built upon the BFS,
leading
identification of a product
specification which increased the Project’s
NPV by a further 25% above that of the BFS
without the requirement for any further
capital investment.
to
blocks
toward
The significant progress made by the
Company on the Project’s feasibility,
permitting and engagement are all major
project
building
development. We are pleased to note
this progress has been recognised with
the
Energy Agency
identifying Crown Mountain as the most
steelmaking development
advanced
project in Canada.
International
include
The Company looks forward to the year
further
ahead which will
progress of key development milestones
for Crown Mountain. The EA Application
is targeted for submission in the Dec
2021 quarter. The Company will also
progress during 2022FY, additional
opportunities to further optimise the
BFS and improve project economics;
undertake
further
investigations
enhance the Project’s environmental
including
management
options to reduce the carbon intensity of
product coal from the site; will initiate
discussions with potential offtake
customers for the Project; and will
continue to progress deep engagement
with Indigenous nations and all project
stakeholders.
framework
to
growth
In parallel with the extensive progress on
Crown Mountain and to support its
sustainable
the
Company has commenced assessing
growth
acquisitive
potential
opportunities and will continue to seek
such opportunities in the next year.
strategy,
Nicole Hollows
Chairman
6 September 2021
Michael Gray
Managing Director
6 September 2021
Page 6 of 80
Jameson Resources Limited | Annual Report 2020-21
Page 7 of 80
7
About Jameson
•
•
•
•
Jameson aspires to be an independent supplier of raw
materials committed to safeguarding the environment and
contributing to economic and community prosperity
Jameson is a pure steelmaking coal Company with the
primary focus on its flagship asset the Crown Mountain Hard
Coking Coal Project, located in southeast British Columbia,
Canada’s largest steelmaking coal producing region.
Jameson, through its subsidiary NWP Coal Canada Ltd, is
developing the Crown Mountain Hard Coking Coal Project.
The Project is strategically located proximate to the electrical
grid, gas, all-seasons roads and Canadian Pacific’s rail line.
This infrastructure connects the Project to three deep-water
ports on the west coast of British Columbia
Jameson is actively looking for other steelmaking coal
opportunities within the evaluation phase in developed
countries with low sovereign risk (i.e. Canada and Australia)
to add value and allow the Company to build on its strong
foundation of the Crown Mountain Hard Coking Coal Project
in Jameson’s pursuit to become a multi-asset resource
Company that responsibly supplies raw materials essential to
improving people's lives.
Jameson Resources Limited | Annual Report 2020-21
The next
generation of the
Canadian steel
making coal
industry
Our Strategic Goals
Commercially Focused
Sustainable Growth
Engaged Stakeholders
Page 8 of 80
8
Jameson Resources Limited | Annual Report 2020-21
June 2021
Completion of all
technical
assessments for the
Environmental
Assessment
Application
2018
Bathurst Resources
Limited becomes a
strategic partner for
the Crown Mountain
Project
August 2021
BFS Yield
Optimisation Study
completed
increasing NPV by
25% over the 2020
BFS NPV
July 2020
Bankable Feasibility
Study (BFS) and
Environmental
baseline studies
completed
2019
Bulk sample coal
qualities testing
results confirm
coking coal
properties at Crown
Mountain
2014
Pre-Feasibility Study
for Crown Mountain
Project (CMP)
completed
Page 9 of 80
9
Progressing the
Crown
Mountain
Project along
the value
development
curve
Our Strategy
Our purpose
Responsibly supplying raw
materials essential to improving
people’s lives
Our vision
An independent supplier of raw
materials committed to
safeguarding the environment
and contributing economic and
community prosperity
Jameson will deliver value and growth sustainably through:
•
•
•
•
•
Progressing its Crown Mountain Hard Coking Coal Project
along the development curve, with its current focus on
obtaining environmental approvals
acquisitive sustainable growth opportunities that are
located in low sovereign risk countries to leverage off its
core capabilities, with the current focus being steelmaking
coal opportunities in Australia and Canada
Being open, transparent and working together with all
stakeholders
commercially
Being
improvement mindset
focused, with a
continuous
Taking a pro-active approach to deliver
responsibly and sustainably.
its projects
Jameson Resources Limited | Annual Report 2020-21
Our strategic goals
Commercially Focused
A mindset of continuous
improvement to be a safe, efficient
and low-cost producer that optimises
the value of our assets
Sustainable Growth
A focus on long term sustainable
development by managing our
environmental impact and being able
to take advantage of future organic
and M&A growth opportunities
Engaged Stakeholders
Open and transparent, mutually
rewarding relationships with our people,
our customers, our shareholders and the
communities in which we operate
Page 10 of 80 10
Growth in
perspective
The Company has developed parameters
for identification of potential opportunities
to ensure its strategy is executed with well-
defined criteria that enables value to be
delivered whilst attempting to minimise
associated project risk.
The defined parameters include a focus on the following
assets:
•
steelmaking 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
Figure 1 Project Value Curve
•
•
•
•
Jameson Resources Limited | Annual Report 2020-21
located
in developed nations with
those
low
sovereign risk, with a preference to Canadian and
Australian assets given existing knowledge and
expertise and lower risk jurisdictions
a preference for resources that are extractable via
open cut methods
those
infrastructure with latent capacity
proximate
to
existing
established
projects that have commenced the evaluation
process, to mitigate risk and ensure any potential
is sufficiently up the value curve (see
project
schematic below)
to ensure exploration and
technical risk are minimised, whilst being closer to
production to maximise potential shareholder value.
The Company will give due consideration for all of its
projects including Crown Mountain to be evaluated,
developed and operated responsibly and sustainably.
Jameson will also continue to progress Crown Mountain
up and along the project value curve with its current key
focus on submitting the EA Application by December 2021
and obtaining the relevant environmental approvals
Page 11 of 80 11
Jameson Resources Limited | Annual Report 2020-21
Our fundamental beliefs and values guide
us in forming our strategy and making
decisions in executing our strategy
• We have a clear purpose and vision
• We are flexible and always find a way
• We are open to learning and innovation
• We seek opportunities for improvement and act on them
• We aim to respond and succeed in a rapidly changing environment
• We have a strong sense of accountability and ownership to deliver our strategy
• We work together, we achieve together
• We solve problems together
• We are open and transparent in order to maintain good working relationships
• We work with our team and with stakeholders always in mind
• We seek to understand and work constructively to resolve problems
• We are proud to represent Jameson. We know our services and products
• We do what we say we will do and we always follow through
• We act responsibly and take accountability for our actions and decisions
• We seek information and take an active role to support ourselves and our colleagues through change
• We manage real or perceived conflicts of interest
• We protect all private, confidential or sensitive information.
• We use our systems, equipment, property and tools appropriately.
Agility
Teamwork
Responsibility
Page 12 of 80
Jameson Resources Limited | Annual Report 2020-21
Our Assets
Jameson owns
interests in two
steelmaking coal
projects, Crown
Mountain and
Dunlevy, both located
in British Columbia,
Canada
Figure 2 Crown Mountain and Dunlevy Project Locations
Page 13 of 80 13
Jameson Resources Limited | Annual Report 2020-21
Crown Mountain
Ownership: 90% owned by NWP Coal Canada Limited
Jameson owns 77.8% of NWP Coal Canada Limited
Commodity: Hard Coking Coal (86%) and PCI (14%)
Location:
Figure 3 Crown Mountain Coal Licence Locations
Figure 2: Crown
Mountain
Coal Licence
Locations
Page 14 of 80 14
Overview
located
The Crown Mountain Hard Coking Coal Project (“Crown
Mountain”) is a high-quality steelmaking coal opportunity
in the Elk Valley, British
for development,
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.
Crown Mountain 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 competitive
operating and capital cost structure and access to
existing common user rail and port infrastructure
high quality low volatile (‘LV’) steelmaking 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 1.8 Mtpa of saleable coal, 57.5 Mt Total Run of
Mine (“ROM”) from the North, East and South pits
over 15 years.
At completion of the BFS, the Company also identified a
number of areas of potential optimisation to be evaluated,
in order to maximise the economic outcomes, whilst
finalising the relevant environmental and permitting
approvals to be ready for financial investment decision.
The Crown Mountain BFS was based 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 Southern Extension that
sits outside the aforementioned pits that could provide
additional organic growth through either extension of mine
life or increased annual production. Additional work is
required to upgrade the resource category, determine the
coal quality and understand production costs.
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.
Jameson Resources Limited | Annual Report 2020-21
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 1.8 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.
receipt of
the Application
The Company has been progressing the environmental
permitting of the Project since 2014. That process
commenced with the Project Description, followed by the
successful
Information
Requirements (“AIR”) in 2018 that forms the basis for
Environmental Assessment Certificate Application (“EA
Application”). The Company is on track to submit the EA
Application in the December quarter 2021 with all technical
studies including baseline work, terrestrial modelling, flora
and fauna studies, air, ground water and surface water
modelling completed
in June 2021. The modelling
approach and completed models have been the subject of
ongoing engagement with Regulators, both Provincial and
Federal, and Indigenous nations.
The pre-submittal
engagement has been used to communicate the approach
and 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.
Indigenous
Acknowledgment
Jameson acknowledges that the Crown Mountain Project is
located on lands within Ktunaxa ?amaski?. The lands are
part of the shared territories of the Blackfoot Confederacy:
Kainai (Blood), Piikani and Siksika; Ktunaxa; Secwepemc
(Shuswap); Stoney Nakoda: Bearspaw, Chiniki, and Wesley;
Tsuut’ina Nation; and, Métis citizens.
Jameson acknowledges the many First Nations, Métis and
Inuit who have lived in and cared for these lands for
generations. We are grateful for the traditional Knowledge
Keepers and Elders who are still with us today and those
who have gone before us. We make this acknowledgement
as an act of reconciliation and gratitude to those whose
territory where our Project is located.
Page 15 of 80
Location and Tenure
consultants engaged including Sedgman Canada Limited“)
(a member of CIMIC Group), and SRK Consulting (‘‘SRK’’).
Jameson Resources Limited | Annual Report 2020-21
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
steelmaking 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 Crown Mountain Coal Licence Summary Table (CAD)
Name
North Block
South Block
License
Number
Status
Area
(Ha)
Rent
(CAD)
418150
Granted
334
$3,340
418151
Granted
1,001
$10,010
Crown East
418152
Granted
West Crown
Southern
Extension
Northwest
Extension
Grave Creek
Northern
Extension
Alexander
Creek
Grave Creek
West
418153
Granted
418154
Granted
418966
Granted
419272
Granted
419273
Granted
167
251
835
974
779
705
$1,670
$2,510
$8,350
$6,818
$5,453
$4,935
419274
Granted
335
$2,345
419275
Granted
251
$1,757
Total 5,630
$47,188
Bankable Feasibility Study
July 2020
On 9 July 2020, the Company announced the robust
economic results of the Bankable Feasibility Study (“BFS”)
for Crown Mountain.
The Project has a low strip ratio, an average life of mine
(“LOM”) 1.7Mtpa clean coal product operation at
competitive operating costs with direct access to global
seaborne markets through one of the three deep water
ports on the west coast of British Columbia.
The BFS 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 office with other
The BFS confirmed that Crown Mountain represents a
compelling high quality hard coking coal development
opportunity with a competitive operating and capital cost
structure and access to existing common user rail and port
infrastructure.
The BFS also
identified a number of optimisation
opportunities which could further improve the positive
economics of the Project. These included:
•
•
Yield Optimisation
Increased Coal Handling and Processing Plant (CHPP)
Utilisation
Review of CHPP Capital costs
Contract mining or mobile equipment leasing
Consideration of potential Build-Own-Operate-
Transfer options for the CHPP
Further exploration in Southern Extension area.
•
•
•
•
Yield Optimisation Study
August 2021
The Yield Optimisation Study,
opportunities to be progressed, involved the following:
•
first of
the
these
Assessing the ash yield curve of each coal block to assess
opportunities to improve CHPP yield
Testing of higher ash product coal samples to understand
any potential impact a higher ash product has on key coking
properties of the product
Assessment of the overall Project economics of producing a
higher ash product by analysing potential production
increase against any relative revenue discount due to a
higher ash product.
•
•
The Yield Optimisation Study confirmed reduced production cost
and increased sales volume resulted in an overall 25% increase in
pre-tax NPV10 to US$469m compared with that in the BFS.
In addition, the Study confirmed:
•
•
•
•
increased production and substantial improved potential
economic outcomes by increasing product ash levels from
9.5% to 10.5% for North and East pits product and from 9.5%
to 11.0% for South Pit product
Increased product ash levels enable increased processing
yield which results in a direct increase in product coal and
export sales.
The study determined an increased Life-of-Mine product
yield of 52.9% compared with 48.8% in the BFS resulting in
an 8.4% increase in average annual product coal sales from
1.8 to 1.96 Mtpa
The increased yield and consequent increase in saleable
export product results in a 4% reduction in cash operating
costs
further
enhancing the Project’s attractive position on the cost curve.
to USD89.41/tonne,
(FOB Vancouver)
Page 16 of 80 16
Resources
Reserves
Jameson Resources Limited | Annual Report 2020-21
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 3, 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.
The updated 2021 Resources are provided in Table 2
Resource summary (Mtonnes) (as at 8 July 2020) below. All
stated resources are inclusive of the reserves.
The estimates have been prepared in accordance with the
requirements of the Canadian National Instrument (NI) 43-
101 and the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Definition Standards. NI 43-101 is the
Canadian equivalent of the 2012 Joint Ore Reserves
Committee (JORC) Standard.
is an
A Qualified Person (Competent Person), who
employee of Stantec, validated the available geological
data, constructed the computer based geological model
and undertook resource estimation.
Table 2 Resource summary (Mtonnes) (as at July 8 2020)
Resource Area
Measured (Mt)
Indicated (Mt)
Measured &
Indicated (Mt)
Inferred (Mt)
Measured,
Indicated &
Inferred (Mt)
North Pit
South Pit
South Extension1
Total
10.1
41.0
-
51.1
3.0
12.4
-
15.4
13.1
53.4
-
66.5
-
-
23.7
23.7
Table 3 Run of mine surface mineable reserve summary (ktonnes) (as at July 8 2020)
ASTM
Group
Bituminous
Area
North Pit
East Pit
South Pit
Sub-Total
Run of Mine Coal Reserves
(Ktonnes)
Proven
Probable
COKING
9,603
2,271
27,975
39,848
PCI
429
135
3,218
3,781
COKING
3,924
532
4,828
9,284
13.1
53.4
23.7
90.2
PCI
1,068
46
3,514
4,627
Total Proven & Probable
43,629
13,911
Total
57,540
Notes:
1.
2.
3.
These are ROM (run-of-mine) 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.
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.
Page 17 of 80
Competent Persons Statement
Mineral Resource Estimate, Mineral Reserve Estimate and Bankable Feasibility Study Results
Jameson Resources Limited | Annual Report 2020-21
The information in this Annual Report 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 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 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.
Coal Quality and Exploration Results
The information in this Annual Report 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 information included in the original market announcements and, that
all material assumptions and technical parameters underpinning the coal quality and exploration 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.
Page 18 of 80
Mining
Given the shallow geology of the resource, all mining at the
Crown Mountain Project will be open pit. Mining equipment
includes excavators, front end loaders, and haul trucks,
supported by dozers, backhoes, and blasthole drills. This type
of equipment is typical for Elk Valley mining operations, and
includes equipment specific to selective mining in certain
thinner seams present on the property. The majority (90%) of
overburden removal is projected to require blasting.
Processing
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 52.9%, delivering a clean coal, or
saleable coal resource of 28.5Mt at an average clean coal strip
ratio of 9.5:1 BCM:t clean coal.
The primary processing method is heavy media cyclone and
reflux classifier, supplemented by column cell flotation for fines
recovery. A hyperbaric filter is included in the plant design to
reduce the product moisture of the fine coal. The CHPP design
developed in the BFS has been maintained in the Yield
Optimisation Study but resultant plant yields have been
increased to reflect increased product recovery due to
Jameson Resources Limited | Annual Report 2020-21
increased target product ash levels. The resultant CHPP yield
for coking coal product form each pit is summarised in Table 4
below:
Coal Quality
Coal from the Crown Mountain Project is modelled to be 86%
Premium low-volatile Hard Coking Coal and 14% mid-vol PCI
(Pulverised Coal Injection).
Washed coal will be conveyed down the mountain (3 km) and
then trucked approximately 15 km to a stockpile/loadout area
where the product will ultimately be loaded on train with a 152
railcars (16,000t capacity) on a new rail loop to be located
adjacent to Canadian Pacific’s (“CP”) existing common-user
railway. The loadout facility includes covered storage with a
batch weigh bulk loading system for accurate load control and
freight cost management.
Key features of the coking coal product are high CSR (Coke
Strength after Reaction) and
low volatile matter (VM)
consistent with similar Elk Valley coals. High CSR and low VM
are critical coke-making characteristics that determine demand
and relative market position for coking coals.
Crown
Mountain’s Hard Coking Coal product is comparable with the
established global Premium Low Vol Hard Coking Coals brands
as shown in Figure 4.
Table 4 Modelled Coking Coal Yields - BFS (Jul 2020) & Yield Optimisation Study (Aug 2021)
North Pit
East Pit
South Pit
Product Ash
(% ad)
9.5
Yield
(% ar)
56.6
Product Ash
(% ad)
9.5
Yield
(% ar)
47.0
Product Ash
(% ad)
9.5
Yield
(% ar)
41.2
10.5
57.8
10.5
49.7
11.0
47.6
BFS July 2020
Yield Optimisation Study
August 2021
Figure 4 Crown Mountain Low Vol Hard Coking Coal
Page 19 of 80 19
Jameson Resources Limited | Annual Report 2020-21
Infrastructure
Transport
The Project is located in an area with well supported
infrastructure for coal mining. Teck operates a total of four
coking coal mines in the Elk Valley and general vicinity of the
Project: one of these operations is south of Crown Mountain
and three are north. As a result, mainline rail, power,
supporting communities and services are all nearby.
CP’s rail is a combined 18 km from the wash plant: 3 km of
overland conveyor and a 15 km truck haul. Power lines will be
extended 14 km from the main transmission line to the
preparation plant. A natural gas line of similar length is planned
to provide heat for the plant, shop, and support facilities.
Existing access roads to the Project will be upgraded: these
roads have already been used for logging operations and
product transportation by a local quarry.
Water supply will originate from two sources: a sediment pond
located in the Alexander Creek drainage and a storage pond to
be located adjacent to Grave Creek. Seasonal flow studies and
estimated Project water requirements indicate this is a viable
solution.
The towns of Sparwood, Elkford, Fernie, and Crowsnest Pass
will be the source of the Crown Mountain workforce, and
house numerous mining-related service industries.
Once loaded onto rail, carrier CP will transport the coal to
either Westshore Terminals (‘Westshore’) near Vancouver, or
to Ridley Terminals (‘Ridley’) near Prince Rupert, where it will
be loaded into ships. Westshore, at a distance of approximately
1,200 kms, is the terminal of choice for Crown Mountain coal,
with an estimated transportation cost (combined rail and port)
of US$29.25/tonne.
Capacity expansion continues at the Vancouver ports.
Currently Teck is undertaking an expansion project at the
Neptune Terminal where they have publicly stated they will be
shipping coal from once it is complete and their Take or Pay
contract with Westshore expires in 2021. As a result, it is
believed Westshore will have available capacity when the first
coal from Crown Mountain is ready for shipment. All clean coal
production from Crown Mountain is assumed to be exported.
Coal is sold FOB vessel.
Capital Expenditure
The Total Pre-Production Capital expenditure to support the
mining and processing operation has been estimated in the BFS
and Yield Optimisation Study to be US$352 million (CA$469m)
as detailed in
Table 5 below.
Table 5 Pre-Production Capital Expenditure ($M) (as at July 8, 2020)
Pre-Production Capital*
Mobile Mining Equipment
Wash Plant and Coal Handling Facilities
Infrastructure (rail load-out, roads, power, offices, shop etc)
Pre-Strip and Indirects
SUBTOTAL – CAPITAL
Owners costs
Reclamation Security
Contingency
TOTAL CAPITAL
*Capital Expenditure has been converted from CAD to USD at 0.75
Note: Totals may be off due to rounding.
US$
92
102
78
37
309
9
2
31
352
Page 20 of 80
Environment and
Regulatory Approvals
Development of the Project will require approval from both
Provincial and Federal regulators. Jameson is preparing an
Environmental Assessment (EA) Application to meet the
requirements of both jurisdictions. The EA Application is being
developed to meet the requirements detailed in the BC EAO’s
Application Information Requirements and Impact Assessment
Agency of Canada’s Guidelines for preparation of an
Environmental Impact Statement. All technical assessment
required for the EA Application has now been completed and
following completion of a regulatorily required step in the
ongoing engagement with key Indigenous nations,
is
expected the EA will be submitted to Provincial and Federal
Regulators in the December Quarter.
it
Once submitted, the EA will be subject to a public comment
period and technical review by Regulators, Indigenous nations
and other key stakeholders. The duration of the assessment
and review process is dependent upon the extent of any
subsequent Information Requests and ongoing engagement
with stakeholders. Additional mine permits must be acquired
by the Company before construction can commence.
Indigenous Nations and
Community Engagement
Crown Mountain is located within traditional territory of
several Indigenous nations. The Ktunaxa Nation assert
exclusive Indigenous title over the Project area. Jameson
meets regularly with the Ktunaxa Nation and has established a
policy of close cooperation and open communication as the
Jameson Resources Limited | Annual Report 2020-21
Project moves forward. All Indigenous nations with rights and
interests in the Project area are involved in the EA Application
and mine permitting process through the referral and
consultation routines established between Indigenous nations,
Federal and Provincial governments. Jameson representatives
have consulted frequently with Indigenous nations since
acquiring the original option on Crown Mountain, and will
continue to do so during permitting, construction, and mine
operation.
In addition to Indigenous nations, there are governmental and
private entities that have certain interests with respect to land
use, and can be expected to participate in the permitting
process through referral and comment. Such entities include,
but are not limited to, local governing authorities and special
use organisations such as recreational clubs, etc.
The Company has previously met with the local governments
(councils, mayors) of all the nearby towns including Sparwood,
Elkford, Fernie, and the District of Crowsnest Pass. Through the
EA development process, Jameson has also had discussions
with non-governmental organisations regarding their specific
issues and concerns.
Operating Costs
The mine operating cost estimate was developed in the BFS to
consider all site-based aspects of the mining operation,
(including coal processing, coal and waste loading and haulage,
topsoil salvage and replacement, road maintenance, water
management, reclamation and site administration) as well as
all off-site costs (including rail and port charges, marketing,
royalties and corporate overhead costs).
The total operating costs per product tonne from the BFS and
Yield Optimisation Study are summarised in Table 6 below:
Table 6 Total operating costs per product tonne from the BFS and Yield Optimisation Study
FOB Operating Cost* (USD)
Unit
BFS Jul-20
Yield Optimisation Study Aug-21
ROM Strip Ratio
Clean Coal Strip Ratio
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
BCM:ROM tonne
BCM:t clean coal
4.7:1
10.3:1
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
USD/t
31.94
6.77
10.02
2.34
0.14
1.00
52.22
1.01
5.90
29.25
4.79
93.17
*Operating costs and capital expenditure have been converted from CAD to USD at 0.75
**Excludes Contingency, Owners Costs and Reclamation Security
4.7:1
9.5:1
29.48
6.25
9.25
2.16
0.13
0.92
48.19
1.01
5.45
29.25
5.51
89.41
Page 21 of 80
Jameson Resources Limited | Annual Report 2020-21
Economic Outcomes
The key economic outcomes are as follows, and summarised in Table 7 below:
Table 7 Crown Mountain Project Key Economic Outcomes
Outcome*
Unit
Bankable Feasibility Study
(July 2020)
Yield Optimisation Study
(July 2021)
Total ROM Coal Mined
Mt ROM
Mine Life
Years
Average ROM Strip Ratio
bcm: ROM t
57.5
15
4.7
LOM Processing Yield
%
48. 8%
LOM Average Annual Exports
Mtpa
Total Clean Coal Production
Mt
Clean Coal Strip Ratio
Pre-production Capex**
Cash Cost
(FOB Vancouver)
Low Volatile Premium Hard
Coking Coal Benchmark
NPV(10) (Pre-tax)
NPV(10) (Post-tax)
IRR (Pre-tax)
IRR (Post-tax)
Net Cashflow (Pre-tax)
Net Cashflow (Post-tax)
bcm:
clean coal t
US$M
US$/t
US/t
US$M
US$M
%
%
US$m
US$m
1.8
26.27
10.29
309
$93.17
165
$376 M
$217 M
36.4%
27.2%
$1,029 M
$652 M
57.5
15
4.7
52.9%
1.96
28.46
9.49
309
$89.41
165
$469 M
$276 M
40.2%
30.2%
$1,261 M
$797 M
* Operating costs and capital expenditure have been converted from CAD to USD at 0.75
**Excludes Contingency, Owners Costs, Reclamation Security
Page 22 of 80
Jameson Resources Limited | Annual Report 2020-21
Project Development Timeline
The high-level schedule for development of the Project is outlined in Figure 5. A conservative approach to regulatory approval
timeframes has been adopted which includes assumption of timelines greater than minimum statutory timelines and assumes no pre-
development capital, in the development of the timeline. Jameson has undertaken extensive pre-submission engagement with
Regulators, Indigenous nations and other stakeholders to seek support in the approval process to date and where possible, should
reduce timelines in the approval process.
The adopted timeline assumes no commitment to pre-development capital until after Final Investment Decision. A number of
opportunities exist to compress this timetable and bring forward first production subject to progress with offtake partners and project
funding, which has been highlighted in the timeline through dotted areas.
Discussion with customers and funders will be progressed following submission of EA to enable FID to be made upon permitting
approvals.
Figure 5 Crown Mountain Timeline
2022
Sep Qtr
Jun Qtr
Dec Qtr
Mar
Qtr
2023
Sep Qtr
Jun Qtr
Dec Qtr
Mar Qtr
2024
Sep Qtr
Jun Qtr
Dec Qtr
Mar Qtr
2025
Sep Qtr
Jun Qtr
Dec Qtr
Dec Qtr
Mar Qtr
2021
Mar Qtr
Sep Qtr
Jun Qtr
ü ü
ACTIVITY
EA Application and
Submittal
EA Regulatory Review
and Approval
Mine Permit Prep
Submittal &
Approval
Update BFS
and LOM Plan
Project Financing
Final Investment
Decision
FEED Engineering &
Detailed Design
Project
Construction
Production
Commences
Page 23 of 80
Page 23 of 80
Investment Agreement with Bathurst Resources Limited
Jameson Resources Limited | Annual Report 2020-21
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 has
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 the
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 optimisation work and other NWP costs
to be incurred during the 2021 financial year.
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
provide funding for Crown Mountain costs. 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
(“BFS”), increasing their common ownership interest in NWP to
20 percent.
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
Page 24 of 80
Page 24 of 80
Jameson Resources Limited | Annual Report 2020-21
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
Ownership: 100% Dunlevy Energy Inc
Commodity: Steelmaking 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 options from each 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 8 below:
Table 8 Dunlevy Coal License Summary Table
Page 25 of 80 25
Di
Jameson Resources Limited | Annual Report 2020-21
Sustainability
Jameson believes it is important to acknowledge the role steelmaking coal, and in turn Steel, has in everyday life. We are committed
to working with customers and supply chains to achieve lower emissions, but steelmaking coal and steel will continue to play an
ongoing and critical role in modern society as an integral ingredient in building infrastructure, cars, buses, trucks, clean energy
including wind and solar, houses, appliances and high rise apartments that contribute to the improved quality of life in both
developed and developing nations.
Jameson represents the next generation of Canadian steelmaking coal developers (and ultimately producers) who want to ensure
that the steelmaking coal that is extracted for use as a vital ingredient in the steelmaking process, is done so in a considered,
sustainable manner that places great emphasis on the environmental and social implications of everything that we do.
Sustainability is at the core of our purpose to become an independent, growth orientated steelmaking coal developer focused on
delivering sustainable outcomes. Our strategic goal is to ensure that Jameson Grows Sustainably with a focus on long term
sustainable development – we put the health and safety of our employees and contractors first, we aspire to sustainably manage
our environmental impact, foster inclusion and diversity and engage with our local communities to ensure we are a valued long
term community partner.
At the local community level, we view and manage sustainability through engagement with stakeholders, being open and
transparent about how we operate and will seek to manage our risks to minimise environmental, social and cultural impacts.
We also believe that supporting local communities and First Nations through education and providing opportunities for
employment will be valuable as we move closer to construction and production of the Crown Mountain Hard Coking Coal Project.
Environmental Risk Management
We recognise that our environmental performance and management of environment impacts on local communities plays a
significant role in social value and being a valued community partner.
Our approach to environmental management in our Environmental Assessment Application has been to use a proven science-
based approach to identify, quantify and mitigate risks. This approach has included the development of quantitative ungulate and
carnivore occupancy models which provide a more comprehensive assessment of the baseline environment, so that any potential
negative impacts can be identified and mitigated.
The robust approach to identifying and, in turn, minimising environmental impacts, will be applied throughout the lifecycle of the
Crown Mountain Hard Coking Coal Project from development and operation through to closure. Our mine closure and biodiversity
management plans have included consideration of the Mining Association of Canada Towards Sustainable Mining Framework and
the International Council of Mining and Metals protocols, to ensure that best practice is being applied to these plans.
Climate Change Risk Management
Furthermore, sustainability includes addressing the challenges and opportunities of climate change and acknowledging the
uncertainty that climate change presents. We are committed to partnering with customers and supply chains to achieve lower
emissions. Additionally, as progress through the permitting process toward Final Investment Decision is made, continued trade off
analysis of potential improvements that may result in reductions in emissions will be considered, including:
•
•
•
securing power supply from BC Hydro where ~95% of power comes from Hydro sources
using efficient diesel engines when compared with the rapidly evolving electric vehicle and hydrogen fuel cell markets,
including the benefits derived from regenerative braking for electric haul trucks that also have the potential to reduce
noise and air pollution
the use of LNG storage (and regassification) compared with the use of a gas pipeline and the economic and environmental
benefits.
Page 26 of 80 26
Jameson Resources Limited | Annual Report 2020-21
Diversity
Jameson is committed to creating an environment where:
•
•
•
•
•
a diverse and skilled workforce leads to continuous improvement in service
delivery and achievement of corporate goals
a workplace culture is characterised by inclusive practices and behaviours for the
benefit of all personnel
there are equal employment and career development opportunities that enable
diversity
a work environment values and utilises the contributions of employees with
diverse gender, backgrounds, experiences and perspectives through improved
awareness of the benefits and successful management of workforce diversity and
successful management of diversity
there is an awareness in all staff of their rights and responsibilities with regards to
fairness, equity and respect for all aspects of diversity.
Jameson is a small resources exploration and evaluation company and is yet to
commence development and operations. It has a total of 4 directors (including 1
employee) and a contracted CFO and contracted Company Secretary which make up
the supervisory and management group. Currently women comprise 50% (3 out of 6)
of the entire supervisory and management group. It has one other contracted
accountant.
Until Jameson enters its operational phase, it is intended to maintain the gender
diversity of the supervisory and management group, defined as the Board, CFO and
Company Secretary at a target of 50%.
Jameson’s measurable objectives for gender diversity are set out below:
Table 9 Diversity Targets
Measurable Objective
Target
FY21
Achievement
Number of females within the
supervisory and management group
of Jameson Limited – defined as the
Board, CFO and Co Sec
The proportion of women in
Jameson (including all full-time,
part-time, casual and contractors),
women in senior executive positions
and women on the Board.
Number of females employed by
Jameson and its subsidiaries once
operations commence. Note these
targets have been set taking into
account that the mining industry is a
male dominated industry with a
finite employee pool given the
location of the Crown Mountain
Project
Female Employee Turnover Rate of
Jameson and its subsidiaries once
operational
50% females
50% females
50% females
57% females
Year 1: 15% females
Year 2: 20% females
Year 3: 25% females
Year 4: 30% females
Year 5: 30% females
Not
applicable as
operations
not yet
commenced
Less than the
average total
employee turnover
rate
Not
applicable as
operations
not yet
commenced
Page 27 of 80 27
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
Directors’ Report
Experienced, effective and
diverse leadership
The Directors of Jameson Resources Limited
(“Jameson” or “the Company”) are pleased to
submit the Annual Financial Report of the
Company and its subsidiaries for the financial
year ended 30 June 2021.
Directors
Company Secretaries
Board Meetings
Remuneration Report
Lead Auditor’s Independence Declaration
Financial Report and Notes
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Schedule of Mineral Tenements
Corporate Directory
29
31
32
36
41
42
72
73
77
79
80
Page 28 of 80 28
Directors
Directors’ Report
Directors
Jameson Resources Limited | Annual Report 2020-21
Nicole Hollows
Independent, Non-Executive Chairman
Michael Gray
Managing Director
Bachelor of Business – Accounting,
Graduate Diploma in Advanced Accounting (Distinction)
Chartered Accountant
Fellow Australian Institute of Company Directors
Graduate Diploma in Company Secretarial Practice
Member, Chief Executive Women
Bachelor of Engineering (Civil)
Master of Business Administration
Graduate Australian Institute of Company Directors
Appointed
15 March 2020
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Chairman, Nomination and Remuneration Committee
Member, Audit and Risk Committee (Chairman up to January 2021)
Experience
Ms Hollows has over 20 years’ experience in the resources sector
and has been responsible for exploration, evaluation, financing,
development and operations of steelmaking 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,
Qube Holdings Limited and a member of the CEO Advisory
Committee for Dean of Queensland University of Technology
Business School. She was previously a member of the advisory
committee member of the Salvation Army Queensland Advisory
Council.
Directorships of Other Listed Entities
Downer EDI Limited (ASX: (DOW) 19 June 2018 to current)
QUBE Holdings Limited (ASX: QUB) (19 October 2020 to current)
Appointed
1 March 2021
Subsidiary Responsibilities
President, NWP Coal Canada Limited
Committee Responsibilities
Standing Invitee to all Committees.
Experience
development,
Mr. Gray is an experienced resource executive with over 30
years’ experience in resource and infrastructure development.
Mr. Gray’s experience in permitting, capital markets, financing
implementation of product
including development and
marketing
stakeholder
customer
and
engagement, and mine construction and operations bode well
for Jameson’s strategy of becoming an independent, growth
oriented steelmaking coal developer focused on delivering
sustainable outcomes. Mr. Gray was the Chief Executive Officer
responsible for the successful development and operations of
the Middlemount Coal Project that was acquired by Peabody as
part of their acquisition of Macarthur Coal and more recently has
industry
provided consulting advice within the resource
including involvement in the development of the Bluff PCI
project in Central Queensland and the successful acquisition of
the Colton Coal Project.
Directorships of Other Listed Entities
Resource Generation Limited (ASX: RES) (30 November 2018 to
current).
Location
Mr Gray is based in Brisbane.
Location
Ms Hollows is based in Brisbane.
Page 29 of 80 29
Directors (cont.)
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
Joel Nicholls
Non-Executive Director
Steve van Barneveld
Independent, Non-Executive Director
Bachelor of Commerce
Chartered Accountant
Graduate Diploma Mineral Exploration Geoscience
Bachelor of Mineral Technologies (Hons 1)
Appointed
15 September 2016:
o
Executive Director from 15 March 2020 to 28 February
2021
o
Resumed role of Non-Executive Director from 1 March
2021
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Member Audit and Risk Committee (except for period 15
March 2020 to 28 February 2021)
Member Nomination and Remuneration Committee (except
for period 15 March 2020 to 28 February 2021).
Experience
Mr Nicholls has over 12 years financial and technical
experience in the resources industry. He formerly worked
in Transaction Services,
for PricewaterhouseCoopers
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.
Directorships of Other Listed Entities
Nil.
Location
Mr Nicholls is based in Melbourne.
Appointed
21 February 2014
Subsidiary Responsibilities
Director, NWP Coal Canada Limited
Director, Dunlevy Energy Inc.
Committee Responsibilities
Chairman, Audit and Risk Committee (appointed January
2021)
Member Nomination and Remuneration Committee
Experience
Mr van Barneveld has over 30 years of experience in the
mining services sector, a significant portion of which has
leading
been spent with Sedgman Pty Limited, a
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.
Directorships of Other Listed Entities
Nil
Location
Mr van Barneveld is based in Brisbane.
Page 30 of 80 30
Company Secretaries
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
The Company Secretary is appointed by
the Board in accordance with the
Constitution and all Directors have right
access to the Company Secretary.
The Company Secretary is charged with
facilitating the Company’s corporate
governance processes and so holds
primary responsibility for ensuring that
the Board processes and procedures run
efficiently and effectively. The Company
Secretary is accountable to the Board,
through the Chairman, on all governance
matters and reports directly to the
Chairman as the representative of the
Board.
Lisa Dalton
Company Secretary
Bachelor Applied Science (Medial Laboratory Science)
Masters Applied Science (Medical Laboratory Science)
Bachelor of Law (First Class Honours)
Fellow Australian Institute of Company Directors
Fellow Governance institute of Australia
Appointed
8 October 2020
Subsidiary Responsibilities
Secretary, NWP Coal Canada Limited
Secretary, Dunlevy Energy Inc.
Experience
Lisa is an experienced Director, Chief Executive Officer, Senior Executive and Company Secretary having worked in a range
of industries including healthcare, medical, water resources, energy, manufacturing, childcare, energy, mining and
construction sectors. Lisa has experience in leading teams responsible for strategy development and implementation,
governance, risk management, internal audit, human resources, cultural improvement, communication, stakeholder
relations and program management. She has strong capability in capital raising and mergers and acquisitions having
responded to numerous take-over approaches and supported significant capital raisings for growth.
Lisa is currently Chairman of Second Skin Pty Ltd, a Non-Executive Director of Healthia Limited (ASX: HLA), a Member of the
Audit and Risk Committees for the Queensland Department of Justice and Attorney General and the Queensland
Department of Regional Development, Manufacturing and Water and is an independent member of the Advisory Council
of Marist College Ashgrove. She is also Company Secretary of PWR Holdings Limited (ASX: PWH).
Location
Ms Dalton is based in Brisbane.
Pennee Osmond
Former Company
Secretary
Tenure
Pennee Osmond held the role of Company Secretary from 25 September 2019 to
8 October 2020.
Experience
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.
Page 31 of 80 31
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
Board Meetings
Our Corporate
Structure
Principal
Activities
Review of
Operations
During the Reporting Period, the Board held 15 Board meetings. Attendance at those
meetings is summarised below:
Table 10 Directors' Meetings
Name
Board Meetings
Audit and Risk
Committee
Meetings
Nomination and
Remuneration
Committee
Meetings
A
15
15
15
4
B
15
15
15
4
Michael Gray commenced as Managing Director on 1 March 2021
Meetings held and director able to attend
Meetings attended
Nicole Hollows
Steve van Barneveld
Joel Nicholls
Michael Gray1
1.
A.
B.
A
2
2
1
-
B
2
2
1
-
A
1
1
1
-
B
1
1
1
-
Jameson Resources Limited is a public company listed on the ASX (Code: JAL) and is
incorporated 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, 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.
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. All technical assessments for the Environmental Assessment
Application were completed and subject to the completion of a necessary regulatory
step with key stakeholders, we will be in a position to lodge the EA Application which
is targeted for the December 2021 quarter.
Management also evaluates other coal opportunities that present themselves from
time-to-time.
There were no significant changes in the nature of the Group’s principal activities
during the financial year.
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 Project Bankable
Feasibility Study (“BFS”) in July 2020 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 Indigenous 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
Page 32 of 80 32
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
o
assessment of value add acquisitive growth opportunities after submission
of the EA Application.
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
and stakeholder consultation. The EA Application is on track to be submitted in the
December 2021 quarter.
The BFS 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. The Yield Optimisation Study, the first of these projects, was
undertaken during the year and the results finalised in August 2021. That study
confirmed that adoption of a 10.5% ash specification maximised product yield,
resulting in increased product coal for export and a 25% improvement in NPV above
the 2020 BFS. For further information on the results of the Crown Mountain BFS and
Yield Optimsiation Study 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.
The loss, after tax, attributable to the Group for the financial year ended 30 June
2021, amounted to ($892,107). (2020: $418,918 profit).
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.
On 1 March 2021, Michael Gray commenced in the role of Managing Director and Joel
Nicholls who was undertaking the role of Executive Director, resumed his role as Non-
Executive Director.
On 13 August 2021, the Company announced the results of the Yield Optimisation
Study which has maximised product yield from the Crown Mountain Project resulting
in an increase in NPV of 25% above that of the July 2020 BFS
Other than as stated above, there were no significant changes in the state of affairs of
the Company during the financial year.
On 13 August 2021, the Company announced the results of a Bankable Feasibility
Study Optimisation assessment which has maximised product yield from the Crown
Mountain Project resulting in increased production to 1.96Mtpa and 25% NPV
improvement above the 2020 BFS.
Other than detailed above and the ongoing uncertainty surrounding COVID-19
impacts, 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.
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.
Operating
Results
Dividend Paid
or
Recommended
Significant
Changes in
State of Affairs
Subsequent
Events
Future
Developments
Subsequent to the submission of the EA Application in the December quarter 2021,
management will seek to evaluate other opportunities, predominantly focused on
steelmaking 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
Page 33 of 80 33
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
other opportunities that may present themselves from time-to-time, both in coal and
other commodities.
Further details are contained in the Our Assets section of the Annual Report
commencing on page on page 13.
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.
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.
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.
The lead auditor’s independence declaration for the year ended 30 June 2021 has
been received and can be found on page 41 of the annual report and forms part of
this Directors’ Report.
No non-audit services were provided by the Company’s auditors during the year.
At the date of this report unissued ordinary shares of the Company under option are:
Table 11 Unissued Shares Under Option
Number of Shares
Expiry Date
31 December 2021
31 December 2022
31 December 2023
31 December 2023
31 December 2024
30 June 2025
31 December 2025
During the year, no shares were issued upon the exercise of options.
Exercise Price
$0.30
$0.40
$0.50
$0.20
$0.30
$0.40
$0.50
1,650,000
1,466,667
1,200,000
500,000
500,000
500,000
1,000,000
Page 34 of 80 34
Environmental
Issues
Indemnifying
Officers or
Auditor
Proceedings on
behalf of the
Company
Auditor’s
Independence
Declaration
Non-Audit
Services
Unissued
Shares Under
Option
Directors’ Report
Jameson Resources Limited | Annual Report 2020-21
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.
Table 12 Interest in shares, options and performance rights
Interest in
shares, options
and
performance
rights
Number of
Options
2,500,000
1,200,000
1,200,000
0
Name
Number of
Shares
Number of
Performance Rights
Nicole Hollows1
Steve van Barneveld2
Joel Nicholls3
Michael Gray
0
520,000
7,730,000
0
1. 2,500,000 options are held by Nimami Pty Ltd
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