`
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 . Ms Hollows is
0
0
0
0
a director of the trustee and beneficiary of the trust
2. 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
3. 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.
Page 35 of 80 35
Remuneration Report
Jameson Resources Limited | Annual Report 2020-21
Remuneration Report
This report outlines the remuneration arrangements in place for the Key Management Personnel (KMP) of the Company for the
financial year ended 30 June 2021. 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.
Key Management
Personnel
The KMP during the year and at the date of this report are:
•
•
•
Nicole Hollows (Independent Non-Executive Chairman)
Steve van Barneveld (Independent Non-Executive Director)
Joel Nicholls (Executive Director from 1 July 2020 to 28 February 2021 and Non-
Executive Director from 1 March 2021)
• Michael Gray (Managing Director) (commenced 1 March 2021)
Executive Key
Management
Personnel
Remuneration
Policy
Jameson’s Remuneration Framework and Policy has been designed to align Executive KMP
objectives with shareholder and business objectives. It has regard to shareholders’
interests by:
•
•
Focusing Executive KMP on sustained growth and key non-financial drivers of value
Attracting and retaining high calibre Executive KMP.
Executive KMP remuneration comprises two elements:
•
•
Fixed remuneration, and
Performance linked or “at risk” remuneration (short and long term components).
Fixed Remuneration
Fixed remuneration is a function of size and complexity of the role, individual
responsibilities, experience, skills and market remuneration levels. This consists of cash
salary, salary sacrifice items, employer superannuation, annual leave provisions and any
fringe benefits tax charges related to employee benefits. The opportunity to salary sacrifice
benefits on a tax-compliant basis is available.
The Board determines an appropriate level of fixed remuneration for the senior executives
following recommendations from the Nomination and Remuneration Committee. The
Nomination and Remuneration Committee has the delegated authority from the Board to
engage independent remuneration consultants as it sees fit.
At Risk Remuneration
Annual Cash Bonus – Short Term Incentive Plan (STIP)
•
Under the plan, participants have an opportunity to receive an annual cash bonus
calculated as a percentage of their total fixed remuneration (“TFR”) and conditional on the
achievement of short-term financial and non-financial performance measures at both a
corporate and individual level.
Long Term Incentives (LTI)
•
In FY2020, the company adopted an Employee Incentive Plan (“EIP”) for Directors and
Executives. The EIP allows the company to grant options to eligible participants and it
serves as the vehicle for long term incentive offering to provide incentive and reward for
eligible participants and align the interests of participants more closely with the interests
of the shareholders. No equity incentives were issued to Executives during the reporting
period.
Remuneration
Governance
Board
The Board’s policy for determining the nature and amount of remuneration for board
members and the Managing Director is delegated to the Nomination and Remuneration
Committee (NRC), which considers all remuneration matters for Executive and Non-
Executives Directors and makes recommendations to the Board.
Page 36 of 80
Remuneration Report
Jameson Resources Limited | Annual Report 2020-21
Nomination and Remuneration Committee
The NRC reviews the Managing Director’s (MD) compensation arrangements annually by
reference to the Group’s performance, the MD’s performance, the MD’s roles and
responsibilities and benchmarks this against salary information from peer group companies
in comparable industry sectors and other listed companies in similar industries. The NRC 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.
Share Ownership and Trading
The Board encourages KMP to hold shares in the Company. The Company has a Share
Trading Policy which directors and employees are required to comply with.
Table 13 Executive Remuneration Mix
Executive
Position
Executive
Remuneration
Mix
Joel Nicholls1
Michael Gray2
Executive Director
1 July 2020 to 28
February 2021
Managing Director
From 1 March 2021
FY2021
Annual Total Fixed
Remuneration
(inclusive of
superannuation)
(TFR)
$197,100 per
annum
(0.6 FTE)
$280,000 per
annum
(0.8 FTE)
Short
Term
Incentive
(Max %
of TFR)
Long
Term
Incentive
(Max %
of TFR)
Up to
50%
Up to
50%
N/A
Up to
50%3
1. Joel Nicholls resumed the role of Non-Executive Director on 28 February 2021 and earned a NED
fee from that time. TFR shown is the annual TFR while he was Executive Director. He participated
in the STIP but was not eligible to participate in the LTIP
2. Michael Gray commenced on 1 March 2021, TFR shown is annual TFR and eligibility to
participate in STIP and LTIP commenced on 1 July 2021. He earnt no bonus and did not receive
any options during the reporting period
3. Issue of equity incentives to Michael Gray is subject to shareholder approval which will be
sought at the 2021 Annual General Meeting
The MD and Executive Director received a base salary and statutory superannuation during
the reporting period
The NRC reviewed the performance of both the MD and Executive Director relevant to the
roles they had during the reporting period. This evaluation is based on criteria that includes
the business performance of the Company and whether strategic objectives in terms of
project development, were achieved.
The Executive Director had Key Performance Indicators attached to his STIP during the
reporting period. The KPIs and the outcome achieved were:
Table 14 Executive Remuneration Outcomes
Safety Performance
Value Improvement
Growth Objective
Progress of Crown Mountain
Project
Achieved
Partially Achieved
Partially Achieved
Partially Achieved
100%
50%
25%
20%
1.
$24,0001
Equates to 20% of TFR earned over the 8 month period while Mr Nicholls
held the role of Executive Director out of a maximum available of 50% of
TFR.
TOTAL CASH BONUS
Page 37 of 80 37
Executive
Remuneration
Outcomes
Remuneration Report
Jameson Resources Limited | Annual Report 2020-21
Non-Executive
Directors
Remuneration
Policy
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 periodically, based on market
practice, duties and accountability. Independent external advice is sought when required.
In addition, Non-Executive Directors also, subject to approval of shareholders are entitled
to receive options under the Employee Incentive Plan.
Director Fees
The maximum aggregate amount of fee pool that can be paid in total to non-executive
directors is currently at $300,000 per annum as approved by shareholders at the 2020 AGM.
Fees for non-executive directors are not linked to the performance of the Group.
Non-Executive Director fees for FY2021 were:
Table 15 Non-Executive Director Fees
Director
Position
Nicole Hollows
Steve van
Barneveld
Joel Nicholls
1 March 2021 to
30 June 2021
Chairman
Chairman Nomination and
Remuneration Committee
Member Audit and Risk Committee
Non-Executive Director
Chairman Audit and Risk Committee
Member Nomination and
Remuneration Committee
Non-Executive Director
Member Audit and Risk Committee
Member Nomination and
Remuneration Committee
FY2021
Annual Fee (inclusive
of superannuation)
$100,000 per annum
$45,000 per annum
$45,000 per annum
pro-rated for relevant
period
Director Options
Following shareholder approval at the 2020 Annual General Meeting, Nicole Hollows was
issued options by the company with staged vesting dates. The other Non-Executive
Directors also hold options that were approved by shareholders in prior years. Further
details of the equity incentives granted are detailed in Note 18 of the Company’s financial
statements.
Voting at the
Company’s 2020
Annual General
Meeting
The adoption of the Remuneration Report for the financial year ended 30 June 2020 was
put to the shareholders of the Company at the Annual General Meeting held on 19
November 2020. 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 2020 financial
year. The resolution was passed without amendment by way of poll. The Company did not
receive any specific feedback at the AGM or throughout the year on its remuneration
policies.
Key Management Personnel employment terms are formalised in a service agreement, a
summary of which is set out below.
Employment
contracts of key
management
personnel
Name: Mr Michael Gray (appointed 1 March 2021) as Managing Director
Employing Company: Jameson Resources Limited
Total Fixed Remuneration $280,000 (base salary plus superannuation)
Terms of Agreement: 0.8 Full Time Equivalent
Termination Notice Period: 3 months in writing by either party
Name: Mr Joel Nicholls (appointed 15 March 2020) as Executive Director
Employing Company: Jameson Resources Limited
Total Fixed Remuneration: $197,000 (base salary plus superannuation)
Terms of Agreement: 0.6 Full Time Equivalent
Termination Notice Period: 3 months in writing by either party
All non-executive Directors were appointed by a letter of appointment. Directors can retire
in writing as set out in the Constitution.
Page 38 of 80 38
Remuneration Report
Jameson Resources Limited | Annual Report 2020-21
Table 16 Statutory Remuneration Table, Directors and Executives
Name
Year
Short-term benefits
Cash
Bonus
Non-cash
benefits
Total
Post
Employ-
ment
Benefits
Super
benefits
Termin-
ation
benefits
Long-term
benefits
Equity-based
payments
Total
Long service
leave
Options5
Proportion of
remuneration
performance
related
$
$
$
$
$
$
$
$
%
Cash
salary &
fees
$
Non-Executive and Executive Directors
Current
Nicole Hollows1
Non-Executive
Chairman
Steve van Barneveld
Non-Executive Director
Joel Nicholls2
Non-Executive Director
Michael Gray3
Managing Director
Former
T Arthur Palm4
(Former MD and Acting
Chairman)
Total - KMP
Remuneration
2021
100,000
2020
27,727
2021
45,000
2020
45,000
-
-
-
-
2021
144,231
24,000
2020
55,349
2021
86,102
2020
2021
-
-
-
-
-
-
2020
339,292
147,814
-
-
-
-
-
-
100,000
-
27,727
1,842
45,000
4,275
45,000
4,275
168,231
12,825
55,349
5,258
6,307
92,409
7,231
-
-
-
-
-
-
-
-
2021
375,333
24,000
6,307
405,640
24,331
2020
467,368
147,814
-
615,182
11,375
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,488
141,488
-
29,569
9,355
58,630
34,484
83,759
9,355
190,411
34,484
95,091
-
-
-
99,640
-
-
45,212
532,318
36.3
60,198
490,169
114,180
740,737
29.3
0
16.0
41.2
17.5
36.3
0
-
-
-
-
1. Appointed 15 March 2020. FY2021 fees paid to Nimami Pty Ltd, a company of which Ms Hollows is a director and shareholder
2. Reflects Non-Executive Director fees paid 1 July 2019 to 14 March 2020 and then again from 1 March 2021 to 30 June 2021. Reflects Non-
Executive Director fees paid 15 March 2020 to 28 February 2021. Mr Nicholls, a Non-Executive Director of Jameson since 2016 took on the role
of Executive Director from 16 March 2020 to 28 February 2021 at which time, Michael Gray was appointed Managing Director and Mr Nicholls
reverted to his role as Non-Executive Director for the remainder for the 2021 financial year (1 March 2021 to 30 June 2021).
3. Commenced as Managing Director on 1 March 2021. Not entitled to participate in the STIP or LTIP in FY2021.
4. Retired 15 March 2020. During the 2020 financial year, Mr Palm received US$220,661 as director fees. A cash bonus of AU$147,814
(US$96,125) in relation to the financial year 2020 was paid for achievement of STI milestones based on 25% of annual fees.
5. The Directors have not received this amount and the options may have no actual financial value unless exercised. 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.
Page 39 of 80 39
Remuneration Report
Jameson Resources Limited | Annual Report 2020-21
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:
Table 17 Shares Owned by Key Management Personnel
Shares owned by KMP
Name
Opening
Balance
1 July 2020
Shares acquired
during the year
Shares
disposed of
during the
year
Other
Closing
Balance
30 June 2021
Non-Executive Directors
Nicole Hollows
Steve van
Barneveld1
Joel Nicholls2
Executive Director
Michael Gray
520,000
7,730,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
520,000
7,730,000
-
1. 100,000 shares are held by The van Barneveld Share Trust, an entity related to Steve van Barneveld.
2. 7,000,000 shares are held by Walloon Securities Pty Ltd, an entity of which Mr Nicholls is a director.
300,000 shares 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 ATF KMS Super Fund, an entity in which Mr Nicholls is a
beneficiary.
Table 18 Options Owned by Key Management Personnel
Options owned by KMP
Name
Opening
Balance
1 July 2020
Granted as
remuneration during
the year
Exercised/
lapsed
Total vested
as at 30
June 2021
Total
exercisable as
at
30 June 2021
Non-Executive Directors
Nicole
Hollows
Steve van
Barneveld1
Joel Nicholls2
Executive Director
Michael Gray
1,200,000
1,200,000
-
2,500,000
-
-
-
-
0
0
2,500,000
1,200,000
1,200,000
-
-
Shared held by
Key
Management
Personnel
-
0
1,200,000 options are held by Dalmeny Investments Pty Ltd ATF the Dalmeny Trust, an entity in
which Mr van Barneveld is a beneficiary.
1,200,000 options are held by Willow Grove Equity Pty Ltd, an entity of which Mr Nicholls is a director
-
-
-
1.
2.
Nil performance rights were issued as remuneration during the reporting period to KMP.
No compensation options were exercised during the reporting period. 750,000 options lapsed on
31 December 2020.
Loans to KMP
No loans were made to key management personnel of the Company during the financial year or
the prior corresponding period.
Other transactions and balances with KMP
Other than as stated above, there have been no other transactions with KMP during the reporting
period.
End of Remuneration Report
Signed in accordance with a resolution of the Board of Directors.
Nicole Hollows
Non-Executive Chairman
Dated this 6th day of September 2021
Page 40 of 80 40
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 2021, 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
6 September 2021
N G Neill
Partner
Page 41 of 80
Financial Report
Year Ended 30 June 2021
DRAFT
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Condensed Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Schedule of Mineral Tenements
Corporate Directory
43
44
45
46
48
72
73
77
79
80
Page 42 of 80 42
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 30 June 2021
Other income
Employee benefits expense
Corporate and compliance fees
Administration expenses
Depreciation and amortisation
Insurance expense
Foreign exchange gain/(loss)
Equity based payments
Exploration expenses
Loss before income tax
Income tax benefit
Profit/(loss) after income tax
Other comprehensive income, net of income tax
Exchange differences on translation of foreign operations
Other comprehensive income for the period, net of tax
Total comprehensive profit/(loss) for the period
(Loss)/profit attributable to:
Members of the parent
Non-controlling interests
Total comprehensive profit/(loss) attributable to:
Members of the parent
Non-controlling interests
Basic loss per share (cents)
Fully diluted loss per share (cents)
Note
3
13(a)
4
23
23
14
14
CONSOLIDATED
2021
$
35,143
(440,290)
(317,826)
(60,704)
(4,042)
(77,123)
(4,265)
(60,199)
(26,417)
(955,723)
63,616
(892,107)
284,570
284,570
(607,537)
(841,405)
(50,702)
(892,107)
(559,730)
(47,807)
(607,537)
(0.27)
(0.27)
2020
$
46,852
(632,523)
(354,182)
(58,823)
(5,029)
(75,451)
21,965
(114,180)
(28,150)
(1,199,521)
1,618,439
418,918
(800,721)
(800,721)
(381,803)
105,103
313,815
418,918
(535,474)
153,671
(381,803)
0.04
0.04
The accompanying notes form part of these financial statements
Page 43 of 80 43
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
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
Property, plant and equipment
Other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
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
Non-controlling interest
Total equity
Note
5
6(a)
6(b)
7
8
9
10
11
12
13
23
CONSOLIDATED
2021
$
2,605,477
126,109
94,563
2,826,149
1,151,419
32,947,812
33,482
1,234
34,133,947
36,960,096
552,631
72,774
625,405
29,065
29,065
654,470
2020
$
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
36,305,626
31,567,156
36,122,722
11,938,554
(18,817,305)
31,589,220
12,209,535
(17,975,900)
29,243,971
25,822,855
7,061,655
36,305,626
5,744,301
31,567,156
The accompanying notes form part of these financial statement
Page 44 of 80 44
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2021
Balance at 1 July 2020
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
Total
Non-controlling
Interest
$
$
$
Total
$
Profit/(loss) for the period
Exchange differences arising on translation of foreign
operations
Total comprehensive (loss) for the period
Transactions with owners in their capacity as owners:
Options issued during the period
Issued capital
Share issue costs
Transactions with non-controlling interests:
Cash contributed – unissued shares in NWP
Preference shares issued in NWP
Balance at 30 June 2021
-
-
-
-
4,747,800
(214,298)
(841,404)
-
(841,404)
-
-
-
-
281,674
281,674
-
-
-
60,199
-
-
-
-
-
-
-
-
-
-
-
-
36,122,722
-
(18,817,305)
-
1,578,354
-
1,380,926
(612,854)
8,979,274
(612,854)
29,243,971
(841,405)
(50,702)
(892,107)
281,674
2,896
284,570
(559,731)
(47,807)
(607,537)
60,199
4,747,800
(214,298)
-
-
-
-
60,199
4,747,800
(214,298)
752,307
612,854
7,061,655
752,307
-
36,305,626
Page 45 of 80 45
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued
For the Year Ended 30 June 2021
Balance at 1 July 2019
Profit/(loss) for the period
Exchange differences arising on translation of foreign
operations
Total comprehensive (loss) for the period
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
Issued Capital
Accumulated
Losses
$
31,589,220
-
$
(18,081,003)
105,103
-
-
-
-
-
105,103
-
-
-
-
31,589,220
-
-
(17,975,900)
Equity Based
Payment
Reserve
$
1,403,975
-
-
-
114,180
-
-
-
1,518,155
Foreign
Currency
Translation
Reserve
$
1,739,829
-
(640,577)
(640,577)
-
-
-
-
1,099,252
978,656
2,805,851
9,592,128
The accompanying notes form part of these financial statements
Other Reserve
Total
Non-controlling
Interest
Total
$
5,807,621
-
$
22,459,642
105,103
$
3,543,754
313,815
$
26,003,396
418,918
-
-
-
-
(640,577)
(160,144)
(800,721)
(535,474)
153,671
(381,803)
114,180
-
978,705
2,805,802
25,822,855
-
-
1,956,176
90,700
5,744,301
114,180
-
2,934,832
2,896,551
31,567,156
Page 46 of 80 46
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2021
Note
15
Cash flows from operating activities
Interest received
Other income
Payments to suppliers and employees
Exploration and evaluation expenses
Net cash used in operating activities
Cash Flows from investing activities
Payments for exploration and evaluation assets
Receipt of BC Mining Tax Credit
Net cash used in investing activities
Cash flows from financing activities
Proceeds from share issue of share capital
Cash calls from Bathurst
Payments for share issue costs
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Foreign currency translation on cash held
Cash and cash equivalents at 30 June
5
CONSOLIDATED
2021
$
2020
$
4,977
30,166
(947,882)
(26,417)
(939,157)
22,368
24,090
(1,070,369)
(28,150)
(1,052,061)
(4,391,162)
63,616
(4,327,545)
(6,547,474)
1,772,248
(4,775,226)
4,747,800
752,307
(214,298)
5,285,809
19,107
2,615,287
(28,917)
2,605,477
5,807,115
-
-
5,807,115
(20,172)
2,699,857
(64,398)
2,615,287
The accompanying notes form part of these financial statements
Page 47 of 80
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. REPORTING ENTITY
Jameson Resources Limited (‘the Company’) is an Australian publicly traded company listed on the Australian Securities Exchange
(‘ASX’). The Company is focused on the development of the Crown Mountain Hard Coking Coal Project, located in British Columbia,
Canada. The address of the registered office is Level 4, Deutsche Bank Place, 126 Phillip Street, Sydney NSW 2000.
The consolidated financial statements were authorised for issue by the Board of Directors on 6th of September 2021.
2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The consolidated financial statements of the Group are general purpose financial statements for the year ended 30 June 2021
prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001.
The consolidated financial statements of Jameson Resources Ltd also comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB).
The consolidated financial statements have been prepared on historical cost basis and are presented in Australian dollars which is
the functional currency of the Group, unless otherwise noted.
The accounting policies adopted in the preparation of this consolidated financial report have been consistently applied to all periods
presented, unless otherwise stated.
New or mandated Accounting Standards and Interpretations adopted
In the year ended 30 June 2021, the Company adopted all the new and revised Standards and Interpretations issued by the AASB
that are relevant to its operations and effective from 1 July 2020. It has been determined that there is a no material impact from
other revised standards and interpretations.
Principles of consolidation
Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of
the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. They are deconsolidated from the date that control ceases.
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.
Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date.
Change of the Groups’ interest in subsidiary that do not result in loss of control are accounted for as equity transactions.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
Page 48 of 80 48
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
Going Concern
This consolidated financial report has been prepared on the going concern basis, which assumes continuity of normal business
activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The Group has incurred a comprehensive loss after tax of $607,537 (2020: $381,803) and had net cash outflows from operations
and investing of $5,266,702 (2020: $5,827,287). The Group has no source of operating cash inflows other than interest income and
funds sourced through capital raising activities. At 30 June 2021, the Group has cash and cash equivalents totalling $2,605,447 (2020:
$2,615,287) and net working capital (current assets less current liabilities) of $2,200,744 (2020: $2,325,317).
The Group continued to actively manage its operating and overhead expenditure by successfully completing a capital raising of
$4,747,800 (before costs) in July 2020.
The Group’s cashflow forecast for the period ending 30 September 2022 reflects that the Group will be required to raise additional
working capital during the 12-month period. The Directors consider that the Group is a going concern and recognises that additional
funding is required to ensure that it can continue to fund its operations during the twelve-month period from the date of this report.
The Directors believe that such additional funding, as the Group has successfully accessed previously, can be derived from raising
additional capital to fund the Group’s ongoing operational and working capital requirements, as and when required.
Accordingly, the Directors believe that the Group will be able to obtain sufficient funding to enable it to continue as a going concern
and that it is appropriate to adopt that basis in the preparation of the financial report.
Should the group not be successful in obtaining adequate funding, there is a material uncertainty that may cast significant doubt as
to the ability of the group to continue as a going concern and whether it will be able to realise its assets and extinguish its liabilities
in the ordinary course of business.
Segment Information
(i)
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.
(ii) Types of reportable segments
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.
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.
(iii) 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.
Page 49 of 80 49
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
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.
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”.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or
loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date.
The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which
approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in
other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
Significant accounting estimates and judgement
The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving higher degree of judgement
or complexity, or areas where assumptions and estimates are significant to the financial statements are:
(i)
Exploration and evaluation expenditure:
The future recoverability of capitalised exploration expenditure is dependent on a number of factors, including whether the Group
decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset and
expenditure through sale.
Factors that could impact the future recoverability include the level of reserves and resources, future technological changes which
could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to
commodity prices.
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and
net assets will be reduced in the period in which this determination is made.
In addition, exploration and evaluation is capitalised if activities in the area of interest have not yet reached a stage that permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the
future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this
determination is made.
Page 50 of 80 50
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
(ii)
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.
Determination of fair values
Several of the Group’s accounting policies and disclosures require the determination of fair value for both financial and non-financial
assets and liabilities. When measuring fair value of an asset or liability, the Group uses market observable data as far as possible.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming that market participants act in their best economic interest. A fair value measurement of a non-financial asset
takes into account a market participant’s ability to generate economic benefits by using the asset in the highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows:
•
•
•
Level 1 – quoted (unadjusted) market price in active markets for identical assets or liabilities
Level 2 – valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable; and
Level 3 – valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
If the inputs used to measure the fair value of an asset or liability might be categorised in different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input
that is significant to the entire measurement.
Other revenue
Other revenue is the Cashflow Boost provided by the Australian Federal Government as a result of Covid 19.
Income Tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income
tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences,
unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are 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.
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
Page 51 of 80 51
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
•
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.
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of GST (Goods and Services Tax) 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.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is
classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional
right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents
Page 52 of 80 52
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position. Cash
at bank earns interest at floating rates based on daily bank deposit rates.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
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.
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the
successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and
activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable
reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in
which the decision is made.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent on
the successful development and commercial exploitation or sale of the respective areas.
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability, and facts and circumstances suggest that the carrying amount of the asset exceeds the recoverable amount.
Such indicators of impairment include the following:
•
•
•
•
the right to explore has expired during the period or will expire in the near future and is not expected to be renewed
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted
nor planned
exploration and evaluation in the specific area has not led to the discovery of commercially viable quantities of mineral
resources and the entity has decided to discontinue such activities in the specific area, or
sufficient data exists to indicate that the carrying amount of the asset is unlikely to be recovered in full from successful
development or by sale even if development in the specific area is likely to proceed.
For the purpose of impairment testing, exploration and evaluation assets are allocated to cash-generating units consistent with
exploration activity. The cash generating units are not larger than the areas of interest.
Property, Plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal
with the carrying amount of property, plant and equipment and is recognised net within other income/other expenses in profit or
loss.
(i) Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its
residual value. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an
Page 53 of 80 53
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
item of property, plant and equipment since this most closely reflects the expected pattern of consumption of the future economic
benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is
reasonably certain that the Group will obtain ownership by the end of the lease term.
The estimated useful lives for the current and prior period are 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.
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.
(ii) 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.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model within
which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being
avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated
entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering
part or all of a financial asset, its carrying value is written off.
(i)
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets
at fair value through profit or loss. Typically, such financial assets will be either:
i)
held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a
derivative; or
ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
(ii)
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity intends
to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Page 54 of 80 54
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
(iii)
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the
consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased
significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort
to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss
allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event
that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit
risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life
of the instrument discounted at the original effective.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a
cash-generating unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year
and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts
are unsecured and are usually paid within 30 days of recognition.
Employee benefits
(iv)
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly
within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
(v) Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured
at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate
bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
(vi) Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Equity settled transactions
Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or
options over shares, that are provided to employees in exchange for the rendering of services.
Page 55 of 80 55
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 | STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either
the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated
entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period.
The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number
of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period
is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional
expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based
compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated
as if they were a modification.
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
Earnings per share
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.
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.
Page 56 of 80 56
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3. CORPORATE AND COMPLIANCE EXPENSES
Accounting and Audit Fees
Company Secretarial Fees
Legal Fees
ASX Fees
Other
4.
INCOME TAX
The components of tax (benefit) comprise:
Current tax
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 before income tax
at 30% (2020: 30%) from ordinary operations
Add tax effect of:
- Revenue losses not recognised
- Other non-allowable items
- Other deferred tax balances not recognised
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)
Unrecognised deferred tax assets at 30% (2019:30%) (Note 1):
Carry forward revenue losses
Carry forward capital losses
Capital raising costs
Provisions and accruals
2021
$
112,664
76,380
62,419
39,696
26,667
317,826
2021
$
(63,616)
-
(63,616)
2020
$
102,742
89,163
20,178
48,340
93,759
354,182
2020
$
(1,618,439)
-
(1,618,439)
(286,717)
(359,856)
178,781
107,955
9,167
9,185
9,185
-
63,616
63,616
2,717,536
222,091
9,348
16,292
2,965,267
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
The tax benefits of the above deferred tax assets will only be obtained if:
i) the company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised
ii) the company continues to comply with the conditions for deductibility imposed by law, and
iii) no changes in income tax legislation adversely affect the company in utilising the benefits.
Page 57 of 80 57
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 | INCOME TAX continued
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.
5. CASH AND CASH EQUIVALENTS
Cash at Bank
Cash at bank consists of $2.31m in Jameson, $0.26m in NWP and $0.03m held in Dunlevy.
Cash at bank earns interest at floating rates based on daily bank deposit rates.
6. TRADE AND OTHER RECEIVABLES
a) Current trade and other receivables
Net tax receivable (GST)
b) Non-current other receivables
Reclamation bonds
2021
$
2,605,477
2,605,477
2021
$
126,109
126,109
2020
$
2,615,287
2,615,287
2020
$
87,754
87,754
1,151,419
1,151,419
1,142,955
1,142,955
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.
7. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Opening balance
Expenditure capitalised
Exploration write-off
Foreign currency translation
2021
$
28,089,144
4,650,669
-
207,999
32,947,812
2020
$
22,307,976
6,508,471
(28,150)
(699,153)
28,089,144
The carrying amount of the exploration and evaluation assets relates to the exploration capitalised on Crown Mountain Coking Coal
Project in British Columbia, Canada.
At 30 June 2021, the Group assessed the carry amount of the assets for impairment. No impairment triggers were present (2020:
Nil).
Page 58 of 80 58
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
8. PLANT AND 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
Depreciation expense
Foreign currency translation
Balance at end of the year
9. TRADE AND OTHER PAYABLES
Trade creditors
Accrued expenses
Payroll liabilities
10. PROVISIONS
Employee entitlements
11. NON-CURRENT LIABILITIES
Bathurst NOW Bonds
2021
$
93,696
(64,695)
29,001
23,700
(19,219)
4,481
33,482
32,425
(3,559)
135
29,001
4,941
(482)
22
4,481
2021
$
235,333
306,543
10,755
552,631
2021
$
72,774
72,774
2021
$
29,065
29,065
2020
$
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
2020
$
126,133
300,677
11,130
437,940
2020
$
20,333
20,333
2020
$
28,851
28,851
Page 59 of 80 59
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12. ISSUED CAPITAL
Number
2021
$
Number
2020
$
Fully paid ordinary shares
303,331,890
36,122,722
263,766,890
31,589,220
At beginning of the reporting period
263,766,890
31,589,220
263,766,890
31,589,220
Number
2021
$
Number
2020
$
Movements in ordinary shares on issue
Placement 27 July 2020 at $0.12
Capital raising costs
13. RESERVES
Equity Based Payment Reserve
Foreign Currency Translation Reserve
Contribution Reserve
Equity Based Payment Reserve:
Opening Balance
Share based payment expense
39,565,000
-
4,747,800
(214,298)
-
-
-
-
303,331,890
36,122,722
263,766,890
31,589,220
2021
$
1,578,353
1,380,926
8,979,274
11,938,553
2021
$
1,518,155
60,199
1,578,354
2020
$
1,518,155
1,099,252
9,592,128
12,209,535
2020
$
1,403,975
114,180
1,518,155
This reserve is used to record the value of equity benefits provided to directors as part of their remuneration. Refer to Note 17.
Foreign Currency Translation Reserve:
Opening balance
Foreign exchange differences
2021
$
1,099,252
281,674
1,380,926
2020
$
1,739,829
(640,577)
1,099,252
Foreign currency reserve records exchange differences arising on translation of the subsidiary’s functional currency (Canadian
Dollars) into presentation currency.
Page 60 of 80 60
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13 | RESERVES continued
Contribution Reserve:
Opening balance
Contribution by BRL in relation to NWP
2021
$
9,595,128
(612,854)
8,979,274
2020
$
5,807,621
3,784,507
9,592,128
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.
14. EARNINGS PER SHARE
2021
$
2020
$
(Loss)/Profit used in the calculation of basic loss per share:
(841,404)
105,103
Weighted average number of ordinary shares outstanding during the
reporting period used in calculation of basic loss per share:
Number of shares
Number of shares
300,513,561
263,297,223
Weighted average number of ordinary shares outstanding during the
reporting period used in calculation of diluted profit/(loss) per share:
300,513,561
263,297,223
Page 61 of 80 61
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
15. CASH FLOW FROM OPERATIONS
Reconciliation of cash and cash equivalent:
Cash at Bank
Reconciliation of cash flows from operating activities with loss after income
tax
2021
$
2020
$
2,605,477
2,615,287
Profit/(loss) after income tax
(892,107)
418,918
Add: Non-cash items:
- Depreciation
- Equity based payments
- Exchange differences on translation
- Exploration write off
- Income tax benefit (BCMETC) classified as investing activity
Changes in assets and liabilities
-Decrease/(Increase) in trade and other receivables
-Increase/(Decrease) in trade and other payables and provision
Net cash outflows from operating activities
Non-cash financing and investing activities
4,042
60,198
4,265
-
(63,616)
(52,670)
730
(939,157)
5,029
114,180
28,938
28,150
(1,772,248)
172,019
(47,047)
(1,052,061)
There were no non-cash financing or investing activities during the financial year ended 30 June 2021 (2020: Nil).
Page 62 of 80 62
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
16.
SEGMENT REPORTING
30 June 2021
Segment revenue
Segment results
Included within segment result:
- Depreciation
- Finance income
- ATO (Australian Taxation Office) COVID Cash boost
- BC Mining Tax Credits
Segment assets
Segment liabilities
30 June 2020
Segment revenue
Segment results
Included within segment result:
- Depreciation
- Interest Revenue
- ATO COVID Cash boost
- BC Mining Tax Credits
- Exploration write off
Segment assets
Segment liabilities
Revenue by geographical region
Corporate
$
Exploration
$
33,727
(657,092)
1,416
(235,015)
-
2,664
30,617
-
(4,042)
2,314
-
63,616
2,377,104
(78,577)
34,582,993
(575,893)
Corporate
$
Exploration
$
27,559
(1,090,462)
19,293
1,509,380
-
3,469
24,090
-
-
5,029
19,293
-
1,618,439
28,150
Total
$
35,143
(892,107)
(4,042)
4,978
30,617
63,616
36,960,097
(654,470)
Total
$
46,852
418,918
5,029
22,762
24,090
1,618,439
28,150
1,370,936
(26,384)
30,683,044
(460,440)
31,517,048
(486,824)
There is no revenue attributable to external customers for the year ended 30 June 2021 (2020: Nil).
Assets by geographical region
Reportable segment assets are located in Canada and Australia.
17. KEY MANAGEMENT PERSONNEL DISCLOSURES
Key management personnel compensation:
Short-term employee benefits
Cash bonus
Post-employment benefits
Share based payments
There are no other transactions with directors or other related parties.
2021
$
381,640
24,000
24,331
60,198
490,169
2020
$
467,368
147,814
11,375
114,180
740,737
Page 63 of 80 63
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
18.
SHARE BASED PAYMENTS
Director Options
In November 2020, the Company issued 2,500,000 Director Options to Ms Nicole Hollows as a reward and incentive as follows:
Director Options Tranche
1
No. of Options
500,000
Exercise Price
A$0.20
2
3
4
500,000
500,000
1,000,000
A$0.30
A$0.40
A$0.50
Expiry Date
19/11/2023
19/11/2024
19/05/2025
19/11/2025
Vesting Period Expiry
19/11/2021
19/11/2022
19/05/2023
19/11/2023
The fair value of the Incentive Options granted are estimated at the date of grant using the Black Scholes option and binomial 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)
Indicative value per CEO Option
Director Options
Tranche 1
Director Options
Tranche 2
Director Options
Tranche 3
Director Options
Tranche 4
19/11/2020
$0.13
$0.20
19/11/2023
0.28%
0
90%
12 Months
$0.05
19/11/2020
$0.13
$0.30
19/11/2024
0.28%
0
90%
24 Months
$0.05
19/11/2020
$0.13
$0.40
19/05/2025
0.45%
0
90%
30 Months
$0.04
19/11/2020
$0.13
$0.50
19/11/2025
0.45%
0
90%
36 Months
$0.04
Number of options
Total Value of CEO Options $
500,000
26,311
500,000
26,768
500,000
26,394
1,000,000
52,914
As at 30 June 2021, 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 bought to account over their vesting periods. The length of the
expected vesting period is consistent with the expiry dates for the options, and a value of $60,198 in total has been expensed for the
year.
Page 64 of 80 64
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18 | SHARE BASED PAYMENTS continued
The following table illustrates the number and weighted average exercise prices (WAEP) of and movements in share options during
the year:
2021
Grant date
Expiry date
15/11/2017
15/11/2017
15/11/2017
27/11/2018
27/11/2018
27/11/2018
19/11/2020
19/11/2020
19/11/2020
19/11/2020
31/12/2020
31/12/2021
31/12/2022
31/12/2020
31/12/2021
31/12/2022
19/11/2023
19/11/2024
19/05/2025
19/11/2025
2020
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
Exercise
price
Balance at
the start of
the year
Granted
Exercised
$0.20
$0.30
$0.40
$0.30
$0.40
$0.50
$0.20
$0.30
$0.40
$0.50
750,000
1,250,000
666,667
400,000
800,000
1,200,000
-
-
-
-
5,066,667
-
-
-
-
-
-
500,000
500,000
500,000
1,000,000
2,500,000
-
-
-
-
-
-
-
-
-
-
-
Exercise
price
Balance at
the start of
the year
$0.20
$0.30
$0.40
$0.30
$0.40
$0.50
750,000
1,250,000
2,000,000
400,000
800,000
1,200,000
6,400,000
Granted
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Expired/
cancelled
(750,000)
-
-
(400,000)
-
-
-
-
-
-
(1,150,000)
Expired/
cancelled
-
-
(1,333,333)
-
-
-
(1,333,333)
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
15/11/2017
27/11/2018
27/11/2018
31/12/2020
31/12/2020
31/12/2021
31/12/2022
31/12/2021
31/12/2022
2021
Number
-
-
1,250,000
666,667
800,000
1,200,000
3,916,667
Balance at
the end of
the year
-
1,250,000
666,667
-
800,000
1,200,000
500,000
500,000
500,000
1,000,000
6,416,667
Balance at
the end of
the year
750,000
1,250,000
666,667
400,000
800,000
1,200,000
5,066,667
2020
Number
750,000
400,000
1,250,000
-
800,000
-
3,200,000
The weighted average share price during the financial year was $0.39 (2020: $0.36).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.04 years (2020: 1.65
years).
Page 65 of 80 65
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
19.
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.
(a) Market Risk
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.
(b)
Currency Risk
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. Bathurst provides
funding at agreed Canadian amounts for each Tranche of funding. 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 and the minimal cash balance in NWP at 30 June, and any movement is not material.
(c)
Interest Rate Risk
Interest rate risk arises when the fair value or future cash flows of a financial instrument fluctuates due to changes in market interest
rates. The table below shows a sensitivity analysis of the Group’s exposure to such changes.
(d) Credit Risk
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 2021 is nil (2020: nil). There are no impaired receivables at 30 June 2021
(2020: Nil).
(e) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
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.
(f) Capital Management
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.
Page 66 of 80 66
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19 | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued
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 Bathurst 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 contributions required for the Crown Mountain Hard Coking Coal 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.
30 June 2021
Financial assets
Non-interest bearing
Variable interest rate instruments
Fixed interest rate instruments
Financial liabilities
Non-interest bearing
Net financial assets
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
%
0.01%
Weighted
Average Effective
Interest Rate
%
0.60%
Less than 1
month
1 to 3
months
3 months to
1 year
$
409,655
-
2,195,822
2,605,477
625,405
625,405
$
-
-
-
-
-
-
$
-
-
-
-
-
-
Less than 1
month
1 to 3
months
3 months to
1 year
$
1,833,707
-
781,580
2,615,287
437,940
437,940
$
-
-
-
-
-
-
$
-
-
-
-
-
-
1 to 5
years
$
Total
$
1,151,419
-
-
1,151,419
1,561,074
-
2,195,822
3,756,896
29,065
29,065
654,470
654,470
1 to 5
years
$
Total
$
1,142,955
-
-
1,142,955
2,976,662
-
781,580
3,758,242
28,851
28,851
466,791
466,791
Page 67 of 80 67
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19 | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES continued
Net fair value of financial assets and liabilities
The carrying amount of financial assets and liabilities approximates fair value because of their short-term maturity.
(g) Interest Rate Sensitivity Analysis
At 30 June 2021, 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%
2021
$
Change
26,055
(26,055)
Change
(26,055)
26,055
2020
$
Change
26,650
(26,650)
Change
(26,650)
26,650
20. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
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
21. PARENT ENTITY DISCLOSURES
a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Reserves
Total equity
b) Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2021
$
2,413,326
12,196,705
14,610,031
2020
$
1,374,520
9,250,293
10,624,813
(78,577)
14,531,454
(29,968)
10,594,846
36,122,722
(23,169,621)
1,578,353
14,531,454
2021
$
(657,092)
-
(657,092)
31,589,220
(22,512,529)
1,518,155
10,594,846
2020
$
(1,090,462)
-
(1,090,462)
Page 68 of 80 68
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21 | PARENT ENTITY DISCLOSURES continued
c) Contingent liabilities
As at 30 June 2021, the Company had no contingent liabilities (2020: Nil).
d) Contractual Commitments
As at 30 June 2021, the Company had no contractual commitments (2020: Nil).
e) Guarantees entered into by parent entity
As at 30 June 2021, the Company had not entered into any guarantees (2020: Nil).
22.
INTEREST IN SUBSIDIARIES
The following companies are subsidiaries of Jameson Resources Limited.
Name
Country of Incorporation
NWP Coal Canada Ltd
Dunlevy Energy Inc.
Canada
Canada
Percentage of equity interest held by
Consolidated Entity
2020
%
2021
%
77.8
100
77.8
100
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 23.
23. NON-CONTROLLING INTEREST 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, a coal operator in New Zealand.
Key terms of the agreements are as follows:
Initial payment of C$4 million (received 13 July 2018) and converted to 8,000,000 fully paid ordinary shares in NWP Coal Canada Inc.,
for an initial 8% interest
• a Tranche One Option of C$7.5 million; (completed 2 Oct 2019), for a further 12% interest in ordinary shares
• a Tranche Two Option cash. advance of up to C$5 million (C$2.6 million drawn) and converted to 2.2% Class B Preference Shares.
Class B preference shares automatically convert into fully paid ordinary shares of NWP upon the completion of the Tranche Two
Option
• a final Tranche Two Option of C$107.4 million (C$110 million less any amounts drawn under the Tranche Two Option cash
advance).
As a result of the above funding, Bathurst’s ownership interest in NWP as at 1 July 2020 amounted to 22.2% ownership interest, 20%
ordinary shares and 2.2% Class B Preference shares.
From 1 July 2020, Jameson and Bathurst contribute cash calls for NWP in their ordinary share ownership interests, being 80% and
20% respectively. The funding is currently recorded as unissued shares, which will be converted in the future. The Bathurst’s non-
controlling interest in NWP for the period is a net loss of $50,702 as a result of NWP reporting a net loss of $228,389.
Page 69 of 80 69
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23 | NON-CONTROLLING INTEREST and AGREEMENT WITH BATHURST RESOURCES LIMITED continued
NCI Percentage
Summarised financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total Liabilities
Total net assets
Accumulated NCI
Summarised Statement of Profit or Loss and Other Comprehensive Income
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income/(loss)
Summarised Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Movements in Equity on issue:
Common shares
Preference shares on issue
Unissued Shares
NWP Coal Canada Ltd
2021
A$
NWP Coal Canada Ltd
2020
A$
22.20%
22.2%
1,571,266
32,981,294
34,552,560
(583,049)
(1,139,765)
(1,723,028)
1,381,704
29,270,689
30,652,393
(431,589)
(1,139,765)
(1,571,354)
32,829,542
29,081,039
7,061,655
5,744,301
(50,702)
2,896
(47,807)
313,815
(160,144)
153,671
(204,275)
(4,285,913)
3,503,885
(986,303)
2021
Number
2,300,000
342,492
-
1,713,314
(7,260,338)
5,820,929
(273,905)
2021
A$
12,171,106
3,030,675
752,307
Page 70 of 80 70
Financial Report Year Ended 30 June 2021
Jameson Resources Limited | Annual Report 2020-21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 23 | NON-CONTROLLING INTEREST and AGREEMENT WITH BATHURST RESOURCES LIMITED continued
Common shares
At beginning of the reporting period
Movements in common shares on issue
At end of reporting period
Preference shares
At beginning of the reporting period
Movements in preference shares on issue
Class B - July @ C$7.97 per share
At end of reporting period
24. REMUNERATION OF AUDITORS
2021
Number
2021
A$
2,300,000
12,171,106
-
2,300,000
-
12,171,106
2021
Number
2021
A$
326,182
2,896,502
16,309
342,492
134,173
3,030,675
During the year, the following fees were paid or were payable to the auditor of the Company, its related practices and non-related
audit firms:
Fees to the Group auditor for:
- Auditing the statutory financial report of the parent covering the group
- Auditing the statutory financial report of any controlled entities
2021
$
38,350
-
38,350
2020
$
40,026
-
40,026
25. EVENTS SUBSEQUENT TO REPORTING DATE
There are no matters or circumstances that have arisen since the end of the financial year period 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, however, Jameson will continue to closely monitor the COVID-19 Pandemic and any COVID-19 restrictions which
may impact the Group or the Project.
Page 71 of 80 71
Directors’ Declaration
DIRECTORS’ DECLARATION
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.
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the
year then ended; and
ii.
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 2021.
This declaration is signed in accordance with a resolution of the Board of Directors.
Nicole Hollows
Chairman
Michael Gray
Managing Director
Dated this 6th day of September 2021
Page 72 of 80
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 2021, 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 2021 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.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
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.
In addition to the matter described in the Material uncertainty related to going concern section, we
have determined the matters described below to be the key audit matters to be communicated in
our report.
Page 73 of 80
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of exploration and evaluation
Note 7
The Group has capitalised exploration and
evaluation expenditure of $32,947,812 as at 30 June
2021 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 2021, 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
Page 74 of 80
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with 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.
Page 75 of 80
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 2021.
In our opinion, the Remuneration Report of Jameson Resources Limited for the year ended 30 June
2021 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
6 September 2021
N G Neill
Partner
Page 76 of 80
Shareholder Information
Jameson Resources Limited | Annual Report 2020-21
Corporate Governance
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.
Shareholdings
Substantial Shareholders
The names of the substantial shareholders listed on the company’s register as at 6 August 2021.
Shareholder
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
HILLBOI NOMINEES PTY LTD
PERTH INVESTMENT CORPORATION LTD
Number
45,405,417
20,510,000
17,400,000
Percentage of issued capital held
Unquoted Securities
Class of Equity Security
30 cent options expiring 31 December 2021
40 cent options expiring 31 December 2022
50 cent options expiring 31 December 2023
20 cent options expiring 31 December 2023
30 cent options expiring 31 December 2024
40 cent options expiring 30 June 2025
50 cent options expiring 31 December 2025
Number
1,650,000
1,466,667
1,200,000
500,000
500,000
500,000
1,000,000
6,816,667
TOTAL
Names of persons holding greater than 20% of a class of unquoted equities:
Class of Equity Security
30 cent options expiring 31 December 2021
40 cent options expiring 31 December 2022
30 cent options expiring 31 December 2021
40 cent options expiring 31 December 2022
50 cent options expiring 31 December 2023
30 cent options expiring 31 December 2021
40 cent options expiring 31 December 2022
50 cent options expiring 31 December 2023
20 cent options expiring 31 December 2023
30 cent options expiring 31 December 2024
40 cent options expiring 30 June 2025
50 cent options expiring 31 December 2025
Number
1,250,000
666,667
200,000
400,000
600,000
200,000
400,000
600,000
500,000
500,000
500,000
1,000,000
14.97%
6.76%
5.74%
Number of
Security Holders
3
3
2
1
1
1
1
Holder
Art Palm
Art Palm
Joel Nicholls
Joel Nicholls
Joel Nicholls
Steve van Barneveld
Steve van Barneveld
Steve van Barneveld
Nicole Hollows
Nicole Hollows
Nicole Hollows
Nicole Hollows
Number of holders in each class of equity securities and the voting rights attached
•
•
•
There are 552 holders of ordinary shares. Each shareholder is entitled to one vote per share held
There are 0 holders of listed options
On a poll every shareholder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and each share is
entitled to one vote.
Page 77 of 80
Distribution schedule of the number of holders in each class of equity security as at 6 August 2021.
Number Held as at 6 August 2021
1-1,000
1,001 - 5,000
5,001 – 10,000
10,001 - 100,000
100,001 and over
Totals
Marketable Parcel
No of Holders of Fully Paid Ordinary Shares
46
62
91
187
166
552
Holders of less than a marketable parcel: fully paid shares 100
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 6 August 2021) is as follows:
Position
Holder Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
HILLBOI NOMINEES PTY LTD
PERTH INVESTMENT CORPORATION LTD
WHOLESALERS (MORLEY) PTY LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
MR ROBERT SIMEON LORD
ZERO NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR TIMOTHY GUY LYONS & MRS HEATHER MARY LYONS
WALLOON SECURITIES PTY LTD
RPM SUPER PTY LTD
SPAR NOMINEES PTY LTD
DEERING NOMINEES PTY LTD
BURRA PTY LTD
LUJETA PTY LTD
EUGOB NOMINEES PTY LTD
GOLDFIRE ENTERPRISES PTY LTD
GREATSIDE HOLDINGS PTY LTD
MR NICHOLAS CRISPIN LYONS & MRS KERRIE MAREE LYONS
WASHINGISHU PTY LTD
Totals
Number of
Ordinary Fully
Paid Shares
Held
Held of
Issued
Ordinary
Capital (%)
45,405,417
14.97%
20,510,000
17,400,000
11,056,667
10,049,284
10,000,000
9,972,088
9,101,102
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
6.76%
5.74%
3.65%
3.31%
3.30%
3.29%
3.00%
2.43%
2.31%
2.30%
2.27%
1.98%
1.96%
1.90%
1.88%
1.57%
1.38%
1.36%
1.25%
202,009,332
66.60%
Restricted Securities
There are no restricted securities on issue at the current date.
Page 78 of 80 78
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 Steelmaking 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%
Page 79 of 80 79
DIRECTORS
Ms Nicole Hollows
(Non-Executive Chairman)
Mr Michael Gray
(Managing Director)
Mr Joel Nicholls
(Non-Executive Director)
Mr Steve van Barneveld
(Non-Executive Director)
COMPANY SECRETARY
Ms Lisa Dalton
REGISTERED OFFICE
Jameson Resources Limited
Level 4, Deutsche Bank Place
126 Phillip Street
SYDNEY NSW 2000
Telephone: + 61(8) 9200 4473
Email: admin@jamesonresources.com.au
POSTAL ADDRESS
Jameson Resources Limited
PO Box 274
ASHGROVE WEST BRISBANE QLD 4060
Telephone: + 61(8) 9200 4473
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 REGISTRY
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
Australian Securities Exchange Limited
(Home Exchange: Perth, Western Australia)
Code: JAL
Page 80 of 80