More annual reports from Jindalee Resources Limited:
2023 ReportResources Limited
Resources Limited
Level 2, 9 Havelock St, West Perth WA 6005, Australia
PO Box 1033 I West Perth WA 6872, Australia
P +61 8 9321 7550 I F +61 8 9321 7950
E enquiry@jindalee.net I W www.@jindalee.net
ABN 52 064 121 133
ANNUAL REPORT 2020 C O R P O R A T E D I R E C T O R Y
Board and Management
Justin Mannolini
Lindsay Dudfield
Patricia (Trish) Farr
Non-Executive Chairman
Executive Director
Executive Director/Company Secretary
Registered Office & Principal Place of Business
Level 2
9 Havelock Street
West Perth, WA 6005
Telephone:
Facsimile:
Email: enquiry@jindalee.net
Web: www.jindalee.net
+61 (8) 9321 7550
+61 (8) 9321 7950
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco, WA 6008
Legal Advisors
House Legal
86 First Avenue
Mount Lawley, WA 6050
Share Registry
Advanced Share Registry
110 Stirling Highway
Nedlands, WA 6000
Telephone:
Facsimile:
+61 (8) 9389 8033
+61 (8) 9262 3723
Securities Exchange Listing
The Company is listed on the Australian Securities Exchange Ltd (“ASX”)
Home Exchange: Perth, Western Australia
ASX Code:
JRL
Front Cover
McDermitt Project, Oregon USA
C O N T E N T S
CHAIRMAN'S REPORT
REVIEW OF ACTIVITIES
DIRECTORS' REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
AUDITORS’ INDEPENDENCE DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL INFORMATION
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ABN 52 064 121 133ANNUAL REPORT 2017
C H A I R M A N ’ S R E P O R T
Dear Fellow Shareholder
I am pleased to present the Chairman’s Report for
Jindalee Resources Limited for 2020.
The second half of the financial year will surely go down
in history as one of the most bizarre Australian investors,
including our shareholders, have had to confront. The
sudden emergence of the SARS CoV-2 virus in Wuhan
early in the year appeared to catch the world by surprise,
although pandemics have been predicted, and even the
subject of Hollywood blockbusters, for decades.
While the health response across the globe was decisive
– if not always particularly swift – it was the fiscal and
monetary response by Governments worldwide that was
perhaps more impressive. Several trillion dollars’ worth
of quantitative easing has found its way into the capital
markets since the market panic of March, and equities as
an asset class have been substantial beneficiaries.
Within the context a startling bull run in global equities
markets, two themes have emerged which are of
particular consequence to Jindalee.
First, gold maintained and indeed strengthened its status
as a safe-haven asset, rising to record highs (in Australian
dollar terms) and giving rise, almost overnight, to a new
breed of Australian-focussed gold majors. With no sign
of monetary policy tightening in the immediate term,
the outlook for gold remains positive, and investors
have shown near limitless appetite for capital raising by
smaller explorers and developers.
Second, towards the end of the financial year we saw
investors re-focus on the potential of the battery minerals
sector to power a post-pandemic economic renaissance.
While it may be premature to predict the death of fossil
fuels, there is no doubt that the destruction of global
demand for oil produced by the pandemic has turbo-
charged the transition to green energy sources and the
inevitable shortages of the raw materials which will be
required for that transition including copper, nickel and
lithium.
Although lithium prices remain subdued, due mainly
to weak demand in the electric vehicle sector, investor
interest in lithium companies – particularly out of
North America – has been very strong. There are a few
explanations for this. First, North American speculators’
obsession with cannabis companies also appears to be
reaching its predictable limits. But more fundamentally,
the Board believes the positive investment climate
reflects the converging forces of the macro trend
towards electrification of transportation, and a shift in the
geopolitical balance, which is forcing Western countries
to reassess the central role which China plays in supply
chains of critical materials.
Jindalee is fortunate to have exposure to both of these
major themes, with a portfolio of tenements in Western
Australian prospective for gold and nickel, and 100%
ownership of the McDermitt lithium project in the United
States.
At McDermitt, late in 2019 we announced a maiden
resource estimate of 155 Mt at 2,000ppm lithium for
1.6 Mt of contained lithium carbonate equivalent,
establishing Jindalee as a potentially very significant
player in the sector. Importantly, we also continued
to improve our knowledge of the metallurgical
characteristics of the ore. The results of testwork to date
have been highly encouraging and have increased rather
than diminished our belief in the potential of sediment-
hosted deposits to make a meaningful contribution
to the global lithium supply chain in years to come.
The strategic location of McDermitt, in a United States
desperate for greater minerals self-sufficiency, provides
Jindalee with a very unique value proposition relative to
its ASX-listed peers.
Given favourable market conditions, after year end, we
took the opportunity to replenish our funding to position
the Company to advance McDermitt and while providing
some dry powder for gold exploration in our own back
yard. As always, we have attempted to minimise our
call on the capital markets by prudent cost control and
management of our asset portfolio. We have continued
to monetise interests in non-core assets where they are
better suited to development by third parties. During the
financial year, we successfully completed the previously
announced transaction with Vox Royalty, realising value
in excess of half a million dollars from a portfolio of
royalties which the Company had accumulated over
several years, and further rationalised our tenement
portfolio.
During the year we also farewelled Managing Director
Pip Darvall, who was instrumental in the acquisition
and development of the McDermitt Project. I take this
opportunity to thank Pip for all his hard work, including
weeks of consumption of high-calorie food during his
visits to the United States. Following year end, we
also announced the appointment of Karen Wellman
as incoming Chief Executive Officer, and the Board
looks forward to working with Karen to further drive
shareholder returns over the coming years.
Although in 2020 we were reminded of the
unpredictability and potential danger of the natural
world, human adaptability and resilience has also been
on display. The Board believes that, despite short-term
setbacks, the future for the resources sector continues to
be bright, and the Company remains well positioned to
continue to generate attractive returns for shareholders.
Justin Mannolini
Non-Executive Chairman
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R E V I E W O F A C T I V I T I E S
Since listing in July 2002 Jindalee has been successful
companies. Jindalee’s strong balance sheet (around
in achieving its stated objective of creating wealth for
$3.1 million in cash and shares at 30 June 2020) sees
our shareholders using a disciplined approach to mineral
the Company well placed to add value to the projects
exploration. Our preference to build assets from scratch
already in our portfolio and to acquire further high-quality
rather than purchase has paid dividends (literally!) in the
opportunities.
past, and we believe we are building for further success
with the continued growth in value of our key US Lithium
and Widgiemooltha projects discussed below.
In the 2020 Financial Year we delivered a maiden lithium
resource at McDermitt (USA) and continued to expand
on the significant ground position established in the
Jindalee provides shareholders with direct exposure to
Widgiemooltha area of Western Australia. At the same
a range of commodities on our own projects including
time additional prospective ground was pegged in
lithium, gold, nickel, magnesite, diamonds and iron ore
Western Australia to build a project pipeline that will
(Figure 1), with additional exposures via our investee
crystallise further value for shareholders.
Figure 1. Jindalee’s major Australian Projects
KEY ASSETS
US LITHIUM
Sediment hosted lithium deposits have the potential
to be large, long life sources of lithium that sit at the
In June 2018 Jindalee announced the acquisition of two
lower end of the global cost curve. Furthermore, the US
sediment hosted lithium (Li) projects in the United States,
currently imports most of its lithium resulting in the metal
at Clayton North and McDermitt (Figure 2). These projects
being included on the US Department of the Interior’s
are 100% owned by HiTech Minerals Inc., a wholly owned,
list of minerals critical to the US economic and national
US based subsidiary of Jindalee and were generated by
security, and with emerging lithium projects receiving
Jindalee after an extensive search across the western US.
strong bipartisan support.
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Figure 2. Jindalee’s US Lithium Projects and Li-ion Battery Factories
Exploration undertaken by Jindalee at McDermitt has
which confirmed McDermitt as one of the largest lithium
included 13 diamond drill holes, which demonstrated
deposits in the US.
lithium rich sediments up to 165m thick with excellent
continuity over kilometres of strike. This work resulted in
a significant Exploration Target Range (ETR) and maiden
Inferred Mineral Resource being announced late 2019,
In November 2019 Jindalee announced an Inferred
Mineral Resource of 150Mt @ 2,000ppm Li (0.43% Li2O)
at 1,750ppm Li cut-off1 had been estimated at McDermitt
(refer Table 1, below):
Cut Off
(ppm Li)
1,750
Mass
(Mt)
150
Grade
(ppm Li)
2,000
Contained LCE
(Mt)
1.6
Table 1 – Summary of the maiden Inferred Mineral Resource
The Mineral Resource was estimated using a cut-off
project economics. Furthermore, analysis of the grade
grade of 1,750ppm Li, which is considered appropriate
tonnage distribution of the McDermitt resource model
in the context of similar projects and based on an
highlights the potential for additional material available at
assessment of the likelihood of future economic
lower grades, and metallurgical testwork to date has been
extraction as required by the JORC (2012) Code.
very encouraging, indicating high lithium recoveries from
The entire Inferred Mineral Resource sits within 100m of
surface and is flat lying, both positive factors for future
conventional sulphuric acid leaching at low temperature
and atmospheric pressure.
The Company confirms that it is not aware of any new information or data that materially affects the
information included in this market announcement and that all material assumptions and technical
parameters underpinning the estimates of mineral resources referenced in this market announcement
continue to apply and have not materially changed.
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Using the same cut-off grade as the Mineral Resource, an ETR* of 180-330Mt @ 1,800-2,200ppm Li (exclusive of the
Inferred Resource) was also estimated1 (refer Table 2, below).
Cut Off
Mineral Resources
(ppm Li)
(Mt)
(ppm Li)
ETR Lower
Limit (Mt)
ETR Upper
Limit (Mt)
ETR Grade Range
(ppm Li)
1,000
1,500
1,750
2,000
2,500
996
328
155
64
5
1,420
1,800
2,000
2,200
2,590
1,200
3,000
370
180
75
2
800
330
120
3
1,200-1,600
1,600-2,000
1,800-2,200
2,000-2,400
2,400-2,800
Table 2 – Summary of the maiden Inferred Mineral Resource and revised ETR at various cut-off grades, with the
preferred cut-off grade figures in bold. (NB: figures may not sum precisely due to rounding, and an increased number of
significant figures does not imply increased precision).
*Note that the potential quantity and grade of the ETR is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource over the Exploration Target and it is uncertain if further exploration
will result in the estimation of additional Mineral Resources.
Figure 3 – Plan showing McDermitt Resource1 and Exploration Target1 Areas & Proposed Drilling
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In June 2020 Jindalee announced positive results from
WIDGIEMOOLTHA PROJECT
metallurgical testwork to trial an alternative processing
route2. Particle size analysis noted that the -0.038mm
(clay) fraction comprises 58.5% of the mass but contains
80% of the lithium (Li), suggesting that beneficiation of
McDermitt ore via screening has the potential to result
in a significant increase in head grade, as well as a
reduction in the volume of material being leached.
Widgiemooltha, located in the Western Australian
goldfields south of Kalgoorlie, is Jindalee’s largest
Australian project. The project is prospective for gold,
nickel and lithium and Jindalee is encouraged by recent
exploration success in the district. Jindalee holds ground
north along strike of Mincor Resources’ (ASX: MCR)
exciting Cassini nickel deposit (1.25Mt @ 4.0% Ni5) and
Furthermore, leaching with hydrochloric acid (HCl)
south of Anglo Australian’s (ASX: AAR) Mandilla gold
achieved recoveries of 97.9% Li within 30 minutes at
discovery, where wide intercepts up to 93m @ 3.1g/t Au
ambient pressure and 106°C, comparing favourably with
and 163m @ 1.7g/t Au have recently been reported6.
previous results obtained by Jindalee using sulphuric
acid (H2SO4) viz. 97% Li extraction within 11 hours2, and
suggesting that leaching with HCl may represent a viable
alternative processing route.
A significant ground position has been built over the
last four years in this premier mining district. During
the period the Company continued to build on its
holding, adding several new tenement applications, and
More encouraging metallurgical testwork results were
consolidating others (Figure 4). Holding costs remain low
announced in August 20203. These results confirmed a
with most tenements still in application (Jindalee is the
significant increase in lithium grades and removal of
sole applicant in almost all cases).
carbonate and other acid consuming minerals through
attrition scrubbing, with the best result (attrition
scrubbing at 20% solids) increasing lithium in the
<0.01mm fraction to 3,400ppm (an increase of 55%
over the head sample), reducing carbonate by 48% to
3.0% CO3 and removing 90% of the analcime (an acid
consuming mineral).
The results from this work are highly encouraging and
are expected to result in a substantial reduction in the
volume of ore being leached as well as a significant
reduction in acid consumption, with positive implications
for both operating costs and capital costs of the project.
Metallurgical testwork is ongoing to further optimise the
process route and quantify potential savings.
In February 2020 Jindalee advised that it had pegged an
additional 65 claims at McDermitt4, increasing the size of
the project to 34km2. The new claims are located on the
western side of the project and include scattered outcrops
interpreted to be extensions of the lithium mineralised
sediments forming the McDermitt resource.
In July 2020 the Company submitted a proposed drilling
program to the US authorities for permitting. The
program comprises 21 holes (refer Figure 3) designed to
increase the current Inferred Mineral Resource1 and ETR1
(including 2 holes in the new claims), and convert Inferred
Mid-April 2020 Jindalee advised that it had reached
agreement with Torque Metals, whereby Torque can earn
an 80% interest in three Exploration Licences located
on the eastern side of the Widgiemooltha Project by
spending $200,000 on exploration within 3 years, with
Jindalee’s 20% interest then free carried to completion of
a Pre-Feasibility Study7.
Several Program of Works (PoW’s) to approve drill testing
of gold targets on Jindalee’s 100% owned tenements at
Widgiemooltha were submitted to the Department of
Mines, Industry Regulation and Safety (DMIRS) in July/
August 2020 with drilling expected to commence in the
December quarter.
OTHER ASSETS
Prospect Ridge (magnesite)
(Jindalee 100%)
The Prospect Ridge Project comprises a single granted
Exploration Licence (EL5/2016) located 55km southwest
of Burnie in NW Tasmania. The project covers the Arthur
River and Lyons River magnesite deposits, containing
the third largest inventory of magnesite Economic
Demonstrated Resources in Australia (refer www.
ga.gov.au). The project has been explored by companies
including Mineral Holdings Australia, CRAE (now Rio
Tinto), TasMag, Crest Magnesium and most recently by
Resources to Indicated status, ahead of a possible
Beacon Hill Resources Plc.
Scoping Study.
Drilling is expected to commence in October, subject to
permitting and availability of appropriate personnel.
Since grant of the licence, Jindalee has compiled the
extensive historical database for the project, defined a
JORC (2012) compliant resource at Arthur River8, and
completed a program of metallurgical testwork that
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R E V I E W O F A C T I V I T I E S
demonstrated the potential for upgrading higher grade
The project covers the Aries kimberlite cluster,
portions of the deposit9. Jindalee is currently seeking
including the Aries, Athena, Helena and Persephone
suitably experienced partners to move this project
diamondiferous kimberlite pipes. Although significant
forward.
Aries (diamonds)
(Jindalee 100%)
Jindalee’s Aries Project is located in the central Kimberley
region of Western Australia, approximately 270km east
exploration was undertaken in the period from 1986
to 2005, Jindalee believes that there is good potential
to find additional diamondiferous pipes and alluvial
diamond deposits in the area. Encouragingly, 95% of the
diamonds recovered from the project have been gem
of Derby and 230km west of Rio Tinto’s Argyle diamond
quality.
mine.
Figure 4: Widgiemooltha Project tenements (as at 30 June 2020) over aeromagnetic imagery. Note some portions of the
tenements are excised by pre-existing mining and other leases.
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Given the diamond specific skill set required to progress
INDIRECT INTERESTS
this project further a search for a partner to advance the
project and test the new targets generated by Jindalee is
underway.
Alchemy Resources (Jindalee 2.6% of issued capital)
The Company’s holding in Alchemy Resources Limited
(ASX: ALY) provides Jindalee shareholders with exposure
JOINT VENTURES and NON-MANAGED PROJECTS
to Alchemy’s Bryah Basin gold and base metals project
Leinster Projects
(Jindalee 100%; Auroch earning 70%)
In July 2020 Jindalee formed a joint venture with Auroch
Minerals (ASX: AOU) whereby Auroch can earn a 70%
interest in Jindalee’s Leinster tenements (comprising
E’s 36/895, 36/910, 36/953 & 37/1370) by spending $0.5m
within 3 years, with Jindalee’s 30% free-carried to
Decision to Mine, based on a Bankable Feasibility Study10.
Auroch is primarily targeting nickel mineralisation at
Leinster but is also expected to follow up historic gold
anomalies recorded from both drilling and soil sampling.
Joyners
(Jindalee 20% free carried)
The Joyners joint venture with GWR Group Limited (ASX:
GWR) forms a part of GWR’s much larger Wiluna West
project. GWR has earned an 80% interest in M53/1078,
with Jindalee retaining 20%, free-carried through to
completion of a Bankable Feasibility Study. Combined
Indicated and Inferred iron oxide resources on the joint
venture tenement total 7.9 Mt @ 62.2% Fe11.
In August 2019 GWR announced the signing of a Term
Sheet for a Mining Rights Agreement that contemplates
mining of up to 3 Mt of the ‘JWD Deposit’ situated
(WA), the Karonie gold project (WA), and a farm in
and joint venture with Heron Resources Limited over
properties in central NSW (the Cobar Basin/Lachlan Fold
Belt and West Lynn Projects) prospective for gold, base
metals and high purity alumina. Further information on
Alchemy’s activities can be found in their announcements
and on their website, www.alchemyresources.com.au
Energy Metals
(Jindalee 6.7% of issued capital)
Jindalee holds approximately 14 million Energy Metals
(ASX: EME) shares, giving shareholders continued
exposure to the development of the Bigrlyi uranium-
vanadium deposit and the potential of Energy Metals’
other uranium projects. Further information on Energy
Metals’ activities can be found in Energy Metals ASX
announcements and on their website,
www.energymetals.net
Other
(Jindalee various holdings)
Jindalee holds interests in several other mineral
exploration and development companies as a result
of previous transactions. These shareholdings will be
realised at appropriate times to fund additional activity.
approximately 1km to the south of the joint venture
OUTLOOK
ground12, and in August 2020 GWD announced that
mining approvals had been secured for the C4 deposit,
located 11km to the north13. The development of these
deposits and associated establishment of infrastructure
at Wiluna West has positive implications for the eventual
development of the Joyners project.
Other
Jindalee’s strategy is to identify and acquire projects
with the potential to transform the Company and this
continues to be our primary focus. At the same time
the Company maintains the flexibility to deal on other
projects as opportunities present, with the transactions
on the Paris and Leinster projects being recent examples.
The strategic land packages acquired at McDermitt and
Jindalee continued its strategy of adding value to
Widgiemooltha are examples of larger scale undertakings
non-core projects prior to divestment, including via
where Jindalee believes there is excellent potential to
acquisition of adjacent prospective ground, compilation
create significant value for shareholders and therefore
of historic data and target generation.
substantial effort to crystallise this value is warranted.
During the year Jindalee announced that it had
At 30 June 2020, Jindalee held cash and marketable
completed the sale of several non-core royalties and
securities worth approximately $3.1M. On 14 September
its minority interest in Kelly Well and New Bore to Vox
2020 the Company announced a capital raising of up to
Royalty Corp (TSX-V: VOX) for $0.5M, comprising $0.25M
$1.85M at $0.32, comprising a placement of 3.85m shares
cash and $0.25M as VOX shares14. The Company also
to raise $1.23M (completed 18 September 2020) and a 1
announced that it had completed a small placement to
for 20 pro-rata entitlement issue to Shareholders to raise
a corporate sophisticated investor at 30 cents to raise
$0.62M (expected to close 16 October 2020)16.
$110,000, further increasing cash reserves15.
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This capital raising further strengthens our financial
position and, combined with our tight capital structure
(a maximum of only 44.7M shares on issue following the
raising), provides a strong base for advancing existing
projects and leveraging into new opportunities.
References:
Competent Persons Statement
1.
2.
3.
4.
JRL’s ASX announcement 19 November 2019: “Maiden
Lithium Resource at McDermitt”.
JRL’s ASX announcement 16 June 2020: “Encouraging
Metallurgical Test results from McDermitt”.
JRL’s ASX announcement 17 August 2020: “More
Encouraging Metallurgical Test results from McDermitt”.
JRL’s ASX announcement 4 February 2020: “Jindalee
Expands Size of McDermitt Project”.
5. MCR’s ASX announcement 16 April 2020: “Quarterly
Activities Report”.
6.
7.
8.
9.
AAR’s ASX announcement 27 February 2020: “Anglo
Australian Corporate Update”.
JRL’s ASX announcement 16 April 2020: “Jindalee to
Partner with Torque at Paris”.
JRL’s ASX announcement 10 October 2017: “Arthur River
Magnesite Deposit – JORC (2012) Resource Estimate”.
JRL’s ASX announcement 8 August 2018: “Positive
Metallurgical Results from Prospect Ridge”.
10. AOU’s ASX announcement 27 July 2020: “Auroch Increases
Tenement Package in Highly Prospective Nickel Belt”.
11. GWR’s ASX announcement 24 February 2010: “Wiluna West
Resource Upgrade”.
12. GWR’s ASX announcement 5 August 2019: “Mining Rights
Agreement for Wiluna West Iron Deposit”.
13. GWR’s ASX announcement 28 August 2020: “Mining
Approvals Obtained for C4 Iron Ore Deposit”.
14.
15.
16.
JRL’s ASX announcement 20 May 2020: “Jindalee receives
$0.5M from Sale of Royalties”.
JRL’s ASX announcement 17 June 2020: “Funds raised to
advance McDermitt”.
JRL’s ASX announcement 14 September 2020: “Placement
and Non-Renounceable Entitlements Offer”.
The information in this report that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information
compiled by Mr Lindsay Dudfield. Mr Dudfield is consultant
to the Company and a Member of the Australasian Institute
of Mining and Metallurgy and the Australian Institute of
Geoscientists. Mr Dudfield has sufficient experience relevant
to the styles of mineralisation and types of deposits under
consideration, and to the activity being undertaken, to qualify
as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Minerals
Resources and Ore Reserves.’ Mr Dudfield consents to the
inclusion in this report of the matters based on this information
in the form and context in which it appears.
The information in this report that relates to the Exploration
Target and the Mineral Resource Estimate for the McDermitt
deposit is based on information compiled by Mr. Arnold van
der Heyden, who is a Member and Chartered Professional
(Geology) of the Australasian Institute of Mining and Metallurgy
and a Director of H&S Consultants Pty Ltd. Mr. van der Heyden
has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined
in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’ (JORC
Code). Mr. van der Heyden consents to the inclusion in this
report of the matters based on the information in the form and
context in which it appears.
Forward-Looking Statements
This document may contain certain forward-looking statements.
Forward-looking statements include but are not limited
to statements concerning Jindalee Resources Limited’s
(Jindalee’s) current expectations, estimates and projections
about the industry in which Jindalee operates, and beliefs
and assumptions regarding Jindalee’s future performance.
When used in this document, the words such as “anticipate”,
“could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”,
“potential”, “should”, and similar expressions are forward-looking
statements. Although Jindalee believes that its expectations
reflected in these forward-looking statements are reasonable,
such statements are subject to known and unknown risks,
uncertainties and other factors, some of which are beyond the
control of Jindalee and no assurance can be given that actual
results will be consistent with these forward-looking statements.
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J I N D A L E E
R E S O U R C E S
L I M I T E D
A N D
C O N T R O L L E D
E N T I T I E S
F I N A N C I A L
R E P O R T
J U N E 3 0 2 0 2 0
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D I R E C T O R S '
R E P O R T
The Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Jindalee
Resources Limited and the entities it controlled at the end of, or during the year ended 30 June 2020.
Directors
The following persons were Directors of Jindalee Resources Limited during the whole of the financial year and up to
the date of this report unless noted otherwise:
Lindsay Dudfield
Justin Mannolini
Patricia Farr
Pip Darvall - resigned as a director on 31 December 2019.
Principal activities
The principal activity during the year of Jindalee Resources Limited was mineral exploration. During the year there was
no change in the nature of this activity.
Financial results
The consolidated loss of the Group after providing for income tax for the year ended 30 June 2020 was $250,878 (2019:
loss $1,019,707).
Dividends
No dividends have been declared since the end of the previous financial year and no dividends have been
recommended by the Directors.
Significant changes in the state of affairs
During the year there has been no significant change in the state of affairs of the Group.
Operations and financial review
Jindalee’s strategy is to identify and acquire projects with the potential to transform the Company and this continued to
be the Group’s primary focus.
During the year efforts were concentrated on the McDermitt lithium project (US) and included drilling to deliver both an
expanded exploration target and a maiden inferred resource, as well as metallurgical testwork to further derisk the
project. The Company also increased its ground position in the Widgiemooltha area and acquired other projects in
Western Australia.
McDermitt
Nine diamond holes were completed at the McDermitt Project during the period, with substantial thicknesses of lithium
mineralisation intersected in all holes and in November the Company announced that an independently estimated
update to the Exploration Target Range had confirmed McDermitt as a major new lithium discovery and one of the
largest lithium deposits in the US.1
In November 2019 Jindalee announced a maiden Inferred Mineral Resource estimate at McDermitt of 150Mt at an
average grade of 2,000 ppm Li (0.43% Li2O)2, using a relatively high cut-off grade of 1,750 ppm Li. This cut-off grade
is appropriate in the context of similar projects and based on an assessment of the likelihood of future economic
extraction as required by the JORC (2012) Code.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in this market announcement and that all material assumptions and technical parameters underpinning the
estimates of mineral resources referenced in this market announcement continue to apply and have not materially
changed.
*Note that the potential quantity and grade of the ETR is conceptual in nature, there has been insufficient exploration
to estimate a Mineral Resource over the Exploration Target and it is uncertain if further exploration will result in the
estimation of additional Mineral Resources.
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Additional work planned for McDermitt includes further metallurgical test work, commencement of early stage
permitting activities and drilling to build on the current Mineral Resource estimate.
Western Australia
During the year the Company added to its existing ground position in the Widgiemooltha area of Western Australia and
pegged additional prospective tenements in Western Australia.
At Widgiemooltha a targeting study focussing on the Chalice greenstone belt highlighted several untested gold targets
obscured by transported cover which warrant follow-up.
Impact of COVID-19
The Group continues to monitor the ongoing and evolving situation relating to the Coronavirus pandemic (COVID-19)
and the potential implications for the health and wellbeing of the Group’s employees, contractors and stakeholders.
The Company implemented various health and safety measures and cost saving initiatives and has concluded at this
time that there has been no material impact on the Group’s exploration activities, solvency or its ability to continue as a
going concern.
Financial
The net assets of the Group have increased by $794,733 from $4,580,207 at 30 June 2019 to $5,374,940 at 30 June 2020,
principally due to raising $1,126,655 (net of costs) from the issue of 3,866,145 fully paid ordinary shares at $0.30/share
during the year net of the Group’s loss for the year of $250,878.
The Directors believe the Group is in a sound financial position to continue its exploration endeavours.
Competent Persons Statement:
The information in this report that relates to Exploration Results is based on information compiled by Mr Lindsay Dudfield. Mr Dudfield is a
consultant to the Company and a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.
Mr Dudfield has sufficient experience, relevant to the styles of mineralisation and types of deposits under consideration, and to the activity
which is being undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Minerals Resources and Ore Reserves’. Mr Dudfield consents to the inclusion in the report of the matters based on this
information in the form and context in which it appears.
The information in this Report that relates to Mineral Resource Estimates and Exploration Target Ranges for the McDermitt deposit is based
on information compiled by Mr. Arnold van der Heyden, who is a Member and Chartered Professional (Geology) of the Australian Institute
of Mining and Metallurgy and a Director of H&S Consultants Pty Ltd. Mr. van der Heyden has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr. van der
Heyden consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
Forward-Looking Statements:
This document may include forward-looking statements. Forward-looking statements include but are not limited to statements concerning
Jindalee Resources Limited’s (Jindalee’s) planned exploration program and other statements that are not historical facts. When used in this
document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-
looking statements. Although Jindalee believes that its expectations reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking
statements.
References:
Additional details including JORC 2020 reporting tables, where applicable, can be found in the ASX announcements reference in this report and
the below announcements lodged with the Australian Securities Exchange (ASX) during the period:
1. Jindalee Resources Limited ASX Announcement 13/11/2019 ‘Exploration Target Confirms Huge Scale at McDermitt’.
2. Jindalee Resources Limited ASX Announcement 19/11/2019 ‘Maiden Lithium Resource at McDermitt.’
3. Jindalee Resources Limited ASX Announcements 30/12/2019 ‘Company Update’ and 30/01/2020 ‘Quarterly Activities Report.’
Events since the end of the financial year
As announced to ASX on 27 July 2020, the Group entered into a binding agreement with Auroch Minerals Limited
(Auroch) (ASX: AOU) agreeing to vend a 70% interest in exploration licences 36/895, 36/910, 36/953 and 37/1370. Under
the terms of the agreement, the Group received $50,000 cash with a further $50,000 cash due upon completion of all
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earn-in commitments. Auroch must spend $500,000 on exploration across the four tenements over a three year period,
including $100,000 in the first 12 months. The Group maintains a 30% free carried position until a decision to mine.
As announced to ASX on 3 August 2020, the Group appointed Ms Karen Wellman Chief Executive Officer of the
Company with an effective date of 12 October 2020. Mrs Wellman will be paid a base salary of $220,000 per annum
exclusive of statutory superannuation and subject to shareholder approval at the Company’s Annual General Meeting
will be issued 1,000,000 unlisted options exercisable at $0.40 vesting on 30 April 2021 and expiring 30 June 2025; and
1,000,000 unlisted options exercisable at $0.50 vesting on 30 April 2022 and expiring on 30 June 2025.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group
up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting
date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and
other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic
stimulus that may be provided.
Other than the matters outlined above, there has not arisen in the interval between the end of the financial year and the
date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors,
to affect significantly the operations, the results of those operations, or the state of affairs of the Group in future
financial years.
Likely developments and expected results of operations
The Directors are not aware of any developments that might have a significant effect on the operations of the Group in
subsequent financial years not already disclosed in this report.
Environmental regulation
The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in
Western Australia are granted subject to adherence to environmental conditions with strict controls on clearing,
including a prohibition on the use of mechanised equipment or development without the approval of the relevant
government agencies, and with rehabilitation required on completion of exploration activities. These regulations are
controlled by the Department of Mines, Industry resulation and Safety.
Jindalee’s claims in the United States of America are all located on Federally owned land managed by the Bureau
of Land Management. There are a range of requirements that must be met when undertaking exploration activities,
including seeking approval depending on the nature of the activities and undertaking rehabilitation once activities are
complete. Bonds are payable prior to the commencement of exploration activities and are returned on satisfactory
completion of rehabilitation. Jindalee conducts its exploration activities in an environmentally sensitive manner and the
Group is not aware of any breach of statutory conditions or obligations.
Greenhouse gas and energy data reporting requirements
The Directors have considered compliance with both the Energy Efficiency Opportunity Act 2006 and the National
Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and
energy use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June
2020, however reporting requirements may change in the future.
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Information on Directors
J Mannolini B.Com/LL (Hons), LLB (Law), GAICD. Non-Executive Chairman
Experience and expertise
Mr Mannolini was appointed to the Jindalee Board as a Non-Executive Director
in September 2013 and as Chairman in July 2016. Mr Mannolini is a partner in the
Corporate Advisory Group of Australian law firm Gilbert + Tobin. He was an Executive
Director with Macquarie Capital, the investment banking division of the Macquarie
Group from March 2013 to May 2016 and was responsible for cross-industry coverage of
the Western Australian market. Prior to joining Macquarie, Mr Mannolini was Managing
Director and head of Gresham Advisory Partners’ Perth office, and before that, a partner
in the mergers and acquisitions group of Australian law firm Freehills. In May 2016 Mr
Mannolini was appointed to the board of the Northern Australia Infrastructure Facility,
a $5B fund set up by the Australian Government to encourage population growth and
economic development in northern Australia. As a lawyer and investment banker, Mr
Mannolini has more than 20 years experience in corporate finance ranging across
industry sectors and product lines, including mergers and acquisitions transactions and
general strategic advisory mandates for companies in the resources sector.
Other current directorships None
Former directorships in last
3 years
None
Special responsibilities
Chairman
Interests in shares and
options
Ordinary Shares – Jindalee Resources Limited
Unlisted $0.40 Options expiring 30/06/2022
342,564
500,000 (vested 22/11/2017)
L Dudfield B.Sc. Executive Director
Experience and expertise
Mr Dudfield is a qualified geologist with over 40 years experience exploring for gold
and base metals in Australia and abroad, including close involvement with a number of
greenfields discoveries. Mr Dudfield is a member of the AusIMM, SEG, AIG and GSA.
He is a founding director of Jindalee Resources Limited and has been a Director for 16
years.
Other current directorships
Energy Metals Limited - Non-Executive Director Alchemy Resources Limited – Non-
Executive Chairman
Former directorships in last
3 years
None
Special responsibilities
None
Interests in shares and
options
Ordinary Shares – Jindalee Resources
Limited
Unlisted $0.40 Options expiring 30/06/2022
13,072,065
1,000,000 (vested 22/11/2017)
P Farr GradCertProfAcc. GradDipACG. GAICD FGIA/FCIS (CS, CGP) Executive Director / Company Secretary
Experience and expertise
Ms Farr is an experienced Chartered Secretary with over 20 years experience in the
exploration and mining industry in the areas of corporate governance, compliance
and administration. Ms Farr has provided Company secretarial services to several ASX
listed companies including Musgrave Minerals Limited and prior to that Energy Metals
Limited and Fox Resources Limited. Ms Farr is a graduate member of the Australia
Institute of Company Directors, fellow member of Governance Institute of Australia
(formerly Chartered Secretaries Australia) and the Institute of Chartered Secretaries
and Administrators. Mrs Farr was appointed to the Jindalee Board in 2008.
Other current directorships None
Former directorships in last
3 years
None
Special responsibilities
None
Interests in shares and
options
Ordinary Shares – Jindalee Resources
Limited
Unlisted $0.40 Options expiring 30/06/2022
440,000
500,000 (vested 22/11/2017)
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P Darvall M.Sc.(Geology), MBA, GAICD Managing Director Resigned 31 December 2019
Experience and expertise
Mr Darvall is a geologist with exploration experience
across a range of commodities, in Australia, PNG
and the USA. From 2010 to 2014 he was Exploration
Manager for Atlas Iron overseeing a rapid growth in
Atlas’ resource base, before starting his own consultancy
company specialising in resource project evaluation
and management. Mr Darvall has a MSc (Geology) from
Monash University, an MBA from Curtin University and
is a graduate of the AICD Company Directors Course. Mr
Darvall is also a member of the AusIMM, AIG and SEG.
Mr Darvall was appointed Managing Director on
28/05/2018 and resigned on 31/12/2019.
Other current directorships
Former directorships in last 3 years
Special responsibilities
Interests in shares and options
Company Secretary Information
None
None
Managing Director
Nil
Nil
Ms Farr is an experienced Chartered Secretary having provided Company Secretarial services to several listed and
unlisted companies, the majority of which operate in the mineral resources sector in Australia. Ms Farr is a graduate
member of the Australian Institute of Company Directors and Fellow member of Governance Institute of Australia
(formerly Chartered Secretaries Australia).
Meetings of Directors
The following table sets out the number of meetings of the Company’s Directors held during the year ended 30 June
2020 the numbers of meetings attended by each Director.
Name
J Mannolini
L Dudfield
P Farr
P Darvall (resigned 31 December 2019)
Board of Directors
Meetings Held
Meetings Attended
8
8
8
4
8
8
8
4
As at the date of this report, the Group did not have an Audit Committee of the Board of Directors. The Board considers
that due to the Group’s size, an Audit Committee’s functions and responsibilities can be adequately and efficiently
discharged by the Board as a whole, operating in accordance with the Group’s mechanisms designed to ensure
independent judgement in decision making.
Retirement, election and continuation in office of directors
Ms Patricia Farr is the Director retiring by rotation who, being eligible, may offer herself for re-election at the Company’s
2020 Annual General Meeting.
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AUDITED REMUNERATION REPORT
The Directors are pleased to present Jindalee Resources Limited 2020 remuneration report which sets out remuneration
information for the Company’s non-executive directors, executive directors and other key management personnel.
The report contains the following sections:
(a) Key management personnel disclosed in this report
(b) Remuneration governance and the use of remuneration consultants
(c) Executive remuneration policy and framework
(d) Relationship between remuneration and the Group’s performance
(e) Non-executive director remuneration policy
(f) Voting and comments made at the Company’s 2019 Annual General Meeting
(g) Details of remuneration
(h) Service agreements
(i) Details of share-based compensation and bonuses
(j)
Equity instruments held by key management personnel
(k) Loans to key management personnel
(l) Other transactions with key management personnel
(a) Key management personnel disclosed in this report
J Mannolini Non-Executive Chairman
L Dudfield
Executive Director
P Farr
Executive Director/Company Secretary
P Darvall
Managing Director (resigned 31 December 2019)
For further details on each director see pages 14-15.
(b) Remuneration governance and use of remuneration consultants
The Company has a Remuneration Policy, however has not established a separate Remuneration Committee.
Due to the early stage of development and small size of the Company a separate Remuneration Committee
was not considered to add any efficiency to the process of determining the levels of remuneration for directors
and key executives. The Board considers that it is more appropriate to set aside time at a Board meeting each
year to specifically address matters that would ordinarily fall to a remuneration committee such as reviewing
remuneration, recruitment, retention and termination procedures and evaluating senior executives remuneration
packages and incentives. A copy of the Remuneration Policy can be found on the Company’s website www.
jindalee.net
In addition, all matters of remuneration will continue to be in accordance with the Corporations Act requirement,
especially with regard to related party transactions. That is, none of the directors participate in any deliberations
regarding their own remuneration or related issues.
Independent external advice is sought from remuneration consultants when required, however no advice has
been sought during the year ended 30 June 2020.
The Corporate Governance Statement provides further information on the Company’s remuneration governance.
Further details on the Corporate Governance Statement can be found on the Company’s website www.jindalee.net
(c) Executive remuneration policy and framework
In determining executive remuneration, the Board aims to ensure that remuneration practices are:
•
•
•
•
Competitive and reasonable, enabling the Company to attract and retain key talent
Aligned to the Company’s strategic and business objectives and the creation of shareholder value
Transparent and easily understood, and
Acceptable to shareholders.
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All executives receive consulting fees or a salary, part of which may be taken as superannuation, and from time to
time, options. Options issued to Directors are subject to approval by Shareholders. The Board reviews executive
packages annually by reference to the executive’s performance and comparable information from industry sectors
and other listed companies in similar industries.
Board members are allocated superannuation guarantee contributions as required by law, and do not receive any
other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting
fees to increase payments towards superannuation.
All remuneration paid to directors and specified executives is valued at the cost to the Group and expensed.
Options are valued using the Black-Scholes methodology.
(d) Relationship between remuneration and the Group’s performance
The policy setting the terms and conditions for the executive directors, was developed and approved by the Board
and is considered appropriate for the current exploration phase of the Group’s development. Emoluments of
Directors are set by reference to payments made by other companies of similar size and industry, and by reference
to the skills and experience of directors. Fees paid to directors are not linked to the performance of the Group. This
policy may change once the exploration phase is complete and the Company is generating revenue. At present
the existing remuneration policy is not impacted by the Group’s performance including earnings and changes in
shareholder wealth (dividends, changes in share price or returns of capital to shareholders). The Board has not
set short term performance indicators, such as movements in the Company’s share price, for the determination
of director emoluments as the Board believes this may encourage performance which is not in the long-term
interests of the Company and its shareholders. The Board has structured its remuneration arrangements in such
a way it believes is in the best interests of building shareholder wealth in the longer term. The Board believes
participation in the Company’s Employee Share Option Plan motivates key management and executives with the
long-term interests of shareholders.
The following table shows the share price and the market capitalisation of the Group at the end of each of the last
five financial years.
Share Price
2016
$0.23
2017
$0.21
2018
$0.28
2019
$0.39
2020
$0.32
Market Capitalisation
$8.03M
$7.33M
$9.77M
$13.65M
$12.4M
Dividends (cents per share)
–
–
–
–
–
(e) Non-executive director remuneration policy
On appointment to the Board, all non-executive directors enter into a service agreement with the Company in
the form of a letter of appointment. The letter summarises the Board policies and terms including remuneration,
relevant to the office of director.
The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies
for their time, commitment and responsibilities.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by
shareholders at the Annual General Meeting and is currently set at $200,000 per annum.
Fees for non-executive directors are not linked to the performance of the Group. Non-executive directors’
remuneration may also include an incentive portion consisting of options, subject to approval by Shareholders.
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(f) Voting and comments made at the Company’s 2019 Annual General Meeting
Jindalee received 93% of “yes” votes on its remuneration report for the 2019 financial year. The Company did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
(g) Details of remuneration
The following table sets out details of the remuneration received by the Group’s key management personnel
for the current and previous financial year measured in accordance with the requirements of the accounting
standards.
Short-term benefits
Cash
Salary,
Consulting
Fees
$
–
–
Directors
Fees
$
40,000
20,000
–
–
–
–
–
–
89,100
91,575
106,000
106,000
240,000
133,918
Post-
employment
benefits
Super-
annuation
$
3,800
1,900
–
–
10,070
10,070
22,800
11,575
Long
Service
Leave
$
–
–
–
–
7,305
14,682
–
–
Share-based payment
Options
$
Shares
$
–
–
–
–
–
–
–
(81,044)*
–
–
–
–
–
–
–
–
Total
$
43,800
21,900
89,100
91,575
123,375
129,720
262,800
64,449
Remuneration
consisting of
options
Percentage
%
–
–
–
–
–
–
–
–
Non-Executive
Director/Chairman
J Mannolini
2019
2020
Executive Directors
L Dudfield
P Farr
P Darvall#
2019
2020
2019
2020
2019
2020
# resigned 31 December 2019.
* negative number due to reversal of previously issued options cancelled due to vesting conditions not being met.
(h) Service Agreements
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. The service agreements specify the components of remuneration, benefits and notice periods.
J Mannolini
Mr Mannolini was appointed a Non-Executive Director on 30 September 2013 and appointed Chairman on 1 July
2016.
Mr Mannolini’s is entitled to directors’ fees of $40,000 per annum plus statutory superannuation in accordance
with his letter of appointment. As a result of uncertainty in financial markets following COVID-19, Mr Mannolini
elected to suspend payment of his remuneration until further notice and was paid Directors fees of $20,000 for
the year. Mr Mannolini’s appointment is contingent upon satisfactory performance and successful re-election by
shareholders of the Company as and when required by the Constitution of the Company and the Corporations Act.
Mr Mannolini is not entitled to any termination benefits.
L Dudfield
Mr Dudfield was appointed a director on 22 January 1996. Mr Dudfield is remunerated pursuant to the terms
and conditions of a consultancy agreement entered into with Mr Dudfield and Jopan Management Pty Ltd trading
as Western Geological Services. During the financial year ended 30 June 2020, Mr Dudfield was paid consulting
fees of $91,575. Unless extended for a further period, the current consultancy agreement will expire in June 2021.
The agreement may be terminated by either party on the giving on 90 days notice or earlier in the event of a
default not remedied within 14 days. Mr Dudfield is not entitled to any termination benefits.
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P Farr
Ms Farr was appointed as a director on 29 August 2008. Ms Farr is paid a salary plus statutory superannuation
pursuant to the terms and conditions of an ongoing employment contract. Due to reduced hours during the
financial year Ms Farr was paid a salary of $106,000 and statutory superannuation of $10,070 for the year ended 30
June 2020. Ms Farr’s employment contract may be terminated by either party on the giving of one month’s notice.
Upon termination of the contract for any reason the Company will pay leave entitlements due to Ms Farr.
P Darvall (resigned 31 December 2019)
Mr Darvall was appointed Managing Director on 28 May 2018 and resigned on 31 December 2019. Mr Darvall was
paid an annual salary of $240,000 per annum plus statutory superannuation pursuant to an Executive Services
Agreement. Upon his resignation on 31 December 2019 leave entitlements due to Mr Darvall were paid in full.
(i) Details of share-based compensation and bonuses
Options over shares in Jindalee Resources Limited are granted under the Company’s Employee Share Option Plan.
Participation in the plan and any vesting criteria, is at the Board’s discretion and no individual has a contractual
right to participate in the plan or to receive any guaranteed benefits. Any options issued to directors of the
Company are subject to shareholder approval.
Details of options over ordinary shares in the Company provided as remuneration to each director of the Company
are set out below.
No options were issued as remuneration to any director for the year ended 30 June 2020.
The fair value of services received in return for share options granted to employees is measured by reference to
the fair value of options granted. The estimate of the fair value of the services is measured based on Black-
Scholes option valuation methodology. The life of the options and early exercise option are built into the option
model.
No bonuses were paid during the year and there is currently no bonus scheme in place.
Following the resignation of Mr Pip Darvall (former director), 1,500,000 options with an exercise price of $0.60 and
expiry date of 30 June 2022 were cancelled on 31 December 2019. The fair value of options upon cancellation were
$81,044, being tranche C of options issued to Mr Pip Darvall on 22 November 2017. Tranches A and B were fully
expensed in prior periods.
Further information on the fair value of share options and assumptions is set out in Note 18 to the financial
statements.
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(j)
Equity instruments held by key management personnel
The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the
Company that were held during the financial year and the previous financial year by key management personnel
and their associated related parties.
2020
Balance at
the start of
the year
Options/
Shares
granted as
compensation
Received
during the
year on the
exercise of
options
Number of
options
vested
during
year
Number
of options
forfeited
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable Unvested
250,000
500,000
1,000,000
12,480,844
Name
J Mannolini
Ordinary fully
paid shares
Unlisted
Options
L Dudfield
Ordinary fully
paid shares
Unlisted
Options
P Farr
Ordinary fully
paid shares
Unlisted
Options
P Darvall (resigned 31/12/2019)
Ordinary fully
paid shares
Unlisted
Options
4,500,000
500,000
404,533
54,500
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
92,564*
342,564
–
–
500,000
500,000
591,221* 13,072,065
–
–
1,000,000
1,000,000
35,467*
440,000
–
–
500,000
500,000
–
–
–
–
–
–
–
(54,500)*
1,500,000 (3,000,000)#
–#
–#
–
–
–
–
–
–
–
–
–
–
* Changes during the year relate to participation in 2019 entitlement offer and on-market purchases.
# P Darvall resigned 31/12/2019 and is no longer a member of Key Management Personnel.
Securities Policy
The Company has implemented a policy on trading in the Company’s securities designed to ensure that all
directors, senior management and employees of the Company act ethically and do not use confidential inside
information for personal gain. The policy states acceptable and unacceptable times for trading in Company
securities and outlines the responsibility of directors, senior management and employees to ensure that trading
complies with the Corporations Act 2001, the Australian Securities Exchange (ASX) Listing Rules and Company
Policy. A copy of this policy was lodged with the ASX and is available on the Company’s website.
Any transaction conducted by Directors with regards to shares of the Company requires notification to the ASX.
Each Director has entered into an agreement to provide any such information with regards to Company dealings
directly to the Company Secretary promptly to allow the Company to notify the ASX within the required reporting
timeframes.
Shares provided on exercise of options
During the year, no ordinary shares in the Company were provided as a result of the exercise of remuneration
options.
For details on the valuation of the options, including models and assumptions used, please refer to Note 18. There
were no alterations to the terms and conditions of options granted as remuneration since their grant date. No
options were granted as remuneration during the year ended 30 June 2020.
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ABN 52 064 121 133ANNUAL REPORT 2017
D I R E C T O R S '
R E P O R T
(k) Loans to key management personnel
There were no loans to individuals or members of key management personal during the financial year or the
previous financial year.
(l) Other transactions with key management personnel
During the year the Group paid a total of $91,575 to Western Geological Services (a division of Jopan Management
Pty Ltd), the fees being for the provision of technical and management services provided to the Group by Mr
Lindsay Dudfield. These fees are included in the remuneration table on page 10. Mr Dudfield’s spouse is the major
shareholder of and the sole director and company secretary of Jopan Management Pty Ltd.
End of Audited Remuneration Report
Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Grant Date
Number
22/08/2017
22/11/2017
22/11/2017
22/11/2017
16/01/2019
400,000
2,000,000
1,500,000
1,500,000
200,000
Date vested &
exercisable
22/08/2017
22/11/2017
30/06/2018
30/06/2019
16/01/2019
Expiry Date
Exercise Price
30/06/2022
30/06/2022
30/06/2022
30/06/2022
30/06/2022
$0.40
$0.40
$0.40
$0.50
$0.50
No option holder has any right under the options to participate in any other share issue of the Company or any other
entity.
Shares Issued on Exercise of Options
There were no shares issued on exercise of options during the year and up to the date of this report.
Directors and Officers insurance
Jindalee Resources Limited paid a premium during the year in respect of directors’ and officers’ liability insurance
policy, insuring the directors and officers of the company against a liability incurred whilst acting in the capacity of
a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The Directors have not
included details of the nature of the liabilities covered or the amount of the premium paid in respect of the policy as
such disclosure is prohibited under the terms of the contract of insurance.
Corporate Governance Statement
The Company’s 2020 Corporate Governance Statement has been released as a separate document and is located on the
Company’s website at http://jindalee.net/corporate-governance/.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
Non-audit services
The Company from time to time may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Company is important.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors
are satisfied that the provision of non-audit services by the auditor as set out below did not compromise the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
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ABN 52 064 121 133ANNUAL REPORT 2017
D I R E C T O R S '
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•
•
the non-audit services have been reviewed by the Board to ensure they do no impact on the impartiality and
objectivity of the auditor; and
none the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
During the year ended 30 June 2020 and in the previous financial year there were no fees paid or payable for non-audit
services provided by the auditor of Jindalee Resources Limited.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is included
on page 53.
This report is signed in accordance with a resolution of the Directors.
L Dudfield
Executive Director
Perth
14 August 2020
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ABN 52 064 121 133ANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Revenue from continuing operations
Other income
Employee benefits expense
Share-based payments
Depreciation expense
Exploration expenditure
Impairment of exploration assets
Fair value movement on financial assets
Tenancy and operating expenses
Gain on foreign exchange
Other administration expenses
Corporate and regulatory expenses
Finance costs
Note
2020
$
2019
$
4
4
18
13
11
7,063
32,470
582,662
(157,905)
81,044
(75,011)
(66,702)
(189,694)
(134,801)
(29,834)
2,681
(139,217)
(110,249)
386,766
(217,965)
(172,239)
(6,568)
(189,186)
(2,966)
(564,676)
(95,941)
13,837
(147,112)
(62,059)
(20,915)
Loss before income tax
(250,878)
(1,019,707)
Income tax benefit
5
–
–
Loss after income tax
(250,878)
(1,019,707)
Loss attributable to owners of Jindalee Resources Limited
(250,878)
(1,019,707)
Other comprehensive income
Items that may be reclassified to profit or loss
Revaluation of investments taken to equity
Other comprehensive income for the year
–
–
–
–
Total comprehensive loss for the year attributable to the ordi-
nary equity holders of the Company
(250,878)
(1,019,707)
Loss per share attributable to the ordinary equity holders of
the Company
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(0.66)
(0.66)
(2.92)
(2.92)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction
with the accompanying notes.
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ABN 52 064 121 133ANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Note
2020
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Total Current Assets
NON-CURRENT ASSETS
Other receivables
Property, plant and equipment
Right of use assets
Exploration and evaluation expenditure
Financial assets at fair value through profit or loss
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provision for annual leave
Lease liabilities
Total Current Liabilities
NON-CURRENT LIABILITIES
Provision for long service leave
Lease liabilities
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY
2019
$
908,486
18,867
–
927,353
60,216
21,856
–
1,381,602
2,228,085
3,691,759
839,726
54,092
305,858
1,199,676
61,106
19,788
122,215
2,310,327
1,827,574
4,341,010
9
10
11
10
12
13
11
14
5,540,686
4,619,112
12,513
1,748
63,299
77,560
13,650
74,536
88,186
14,495
17,105
–
31,600
7,305
–
7,305
165,746
38,905
5,374,940
4,580,207
15
16
17
8,381,909
(5,537,977)
2,531,008
7,255,254
(5,287,099)
2,612,052
5,374,940
4,580,207
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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ABN 52 064 121 133ANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows from operating activities
Payments in the course of operations
Interest received
Interest paid
Note
2020
$
(470,828)
7,063
(20,915)
2019
$
(660,431)
43,825
–
Net cash outflow from operating activities
6
(484,680)
(616,606)
Cash flows from investing activities
Payments for exploration and evaluation
Payments for property, plant and equipment
Payment of bonds
Proceeds from sale of tenements and royalty
(1,155,140)
(3,861)
–
260,000
(847,342)
–
(1,800)
40,000
Proceeds from sale of financial assets at fair value through
profit or loss
11
241,727
88,761
Net cash outflow from investing activities
(657,274)
(720,381)
Cash flows from financing activities
Lease principal repayments
Proceeds from issue of shares net of costs
15
Payment of dividend
Net cash inflow/(outflow) from financing activities
(53,461)
1,126,655
–
1,073,194
–
–
(66,610)
(66,610)
Net decrease in cash and cash equivalents
(68,760)
(1,403,597)
Cash and cash equivalents at the beginning of the financial
year
Cash and cash equivalents at the end of the financial year
Non-cash financing and investing activities
9
11
908,486
2,312,083
839,726
908,486
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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ABN 52 064 121 133ANNUAL REPORT 2017
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated
Contributed
equity
Share-based
payment
reserve
Available
for sale
investments
revaluation
reserve
Accumulated
losses
Total
equity
$
$
$
$
$
Balance at 30 June 2018 as originally
stated
7,227,254
2,467,813
937,392
(5,204,784)
5,427,675
Change in accounting policy
–
–
(937,392)
937,392
–
Restated balance at 1 July 2018
7,227,254
2,467,813
Total comprehensive loss for the year:
Loss for the year
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
–
–
–
–
Share-based payments
Balance at 30 June 2019
28,000
144,239
7,255,254
2,612,052
Total comprehensive loss for the year:
Loss for the year
Total comprehensive loss for the year
Transactions with owners in their
capacity as owners
–
–
Issue of shares net of costs
1,126,655
–
–
–
Share-based payments
Balance at 30 June 2020
–
(81,044)
8,381,909
2,531,008
–
–
–
–
–
–
–
–
–
–
(4,267,392)
5,427,675
(1,019,707)
(1,019,707)
(1,019,707)
(1,019,707)
–
172,239
(5,287,099)
4,580,207
(250,878)
(250,878)
(250,878)
(250,878)
–
–
1,126,655
(81,044)
(5,537,977)
5,374,940
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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1.
CORPORATION INFORMATION
These financial statements of Jindalee Resources Limited for the year ended 30 June 2020 were authorised for
issue in accordance with a resolution of directors on 14 August 2020.
The financial statements cover the Group of Jindalee Resources Limited and it’s controlled entities. Jindalee
Resources Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on
the Australian Securities Exchange.
The nature of the operations and principal activities of the Group are described in Note 3.
Unless otherwise stated, policies adopted in the preparation of the financial statements are consistent with those
of the previous year.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
In order to assist in the understanding of the financial statements, the following summary explains the material
accounting policies that have been adopted in the preparation of the accounts.
(a) Statement of Compliance
These general-purpose financial statements have been prepared in accordance with Australian
Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board,
Urgent Issues Group Interpretations and the Corporations Act 2001.
Compliance with IFRS
The consolidated financial statements of Jindalee Resources Limited also comply with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
(b) Adoption of New Accounting Standards
AASB 16 Leases
The Group leases office space for its corporate office.
Impact of application of AASB 16 Leases (“AASB 16”)
AASB 16 provides a model for the identification and treatment of lease arrangements in the financial
statements. AASB 16 superseded the lease guidance including AASB 117 Leases and the related
Interpretations, when it became effective for the Group for the accounting period beginning 1 July 2019.
The Group has chosen the modified retrospective application of AASB 16. Consequently, the Group has not
restated the comparative information.
Impact of the new definition of a lease
The Group has made use of the practical expedient available on transition to AASB 16 not to reassess
whether a contract is or contains a lease. Accordingly, the definition of a lease in accordance with AASB 117
and Interpretation 4 will continue to apply to those leases entered or modified before 1 July 2019.
The change in definition of a lease mainly relates to the concept of control. AASB 16 distinguishes between
leases and service contracts on the basis of whether the use of an identified asset is controlled by the
customer. Control is considered to exist if the customer has:
•
•
The right to obtain substantially all of the economic benefits from the use of an identified asset; and
The right to direct the use of that asset.
The Group has applied the definition of a lease and related guidance set out in AASB 16 to all lease contracts
entered into or modified on or after 1 July 2019. The Directors have determined that the new definition in
AASB 16 will not change significantly the scope of contracts that meet the definition of a lease for the Group.
A N N U A L R E P O R T 2 0 2 0
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Operating leases
AASB 16 has changed how the Group accounts for leases previously classified as operating leases under
AASB 117, which were off-balance sheet.
On initial application of AASB 16, for all leases (except as noted below), the Group has:
(a) Recognised Right-of-Use assets (“ROU Assets”) and lease liabilities in the consolidated statement
of financial position, initially measured at the present value of the future lease payments;
(b) Recognised depreciation of ROU Assets and interest on lease liabilities in the consolidated statement of
profit or loss; and
(c) Separated the total amount of cash paid into a principal portion (presented within financing activities)
and interest (presented within operating activities) in the consolidated cash flow statement.
Under AASB 16 lease incentives (eg rent-free period) are recognised as part of the measurement of the
ROU Assets and lease liabilities. Previously lease incentives resulted in the recognition of a lease liability
incentive amortised as a reduction of rental expenses on a straight-line basis.
Under AASB 16, ROU Assets will be tested for impairment in accordance with AASB 136 Impairment of
Assets. This replaces the previous requirement to recognise a provision for onerous lease contracts.
For short-term leases (lease term of 12 months or less) and leases of low-value assets the Group opted to
recognise a lease expense on a straight-line basis as permitted by AASB 16.
As at 1 July 2019 the Group had non-cancellable lease commitments of $191,297, excluding leases that are of
a short-term nature and leases of low-value assets. The Group recognised ROU Assets with a net book value
of $191,297 and corresponding lease liabilities of $191,297 at 1 July 2019. After accounting for depreciation
and lease principal payments during the year the balances as at 30 June 2020 were ROU Assets with a net
book value of $122,215 and lease liabilities of $137,835.
The impact on the consolidated statement of profit or loss (increase / (decrease)) for the year is:
Expense
Tenancy and operating
Depreciation expense
Finance costs
$
53,461
(69,082)
(20,915)
Rent expense on previously recognised operating lease
Depreciation of lease asset recognised under AASB 16
Interest on lease recognised under AASB 16
Notes
Net impact on loss for the period
(36,536)
Under AASB 117, lease payments from operating leases were included in cash flows from operating activities.
Under AASB 16 lease repayments are included in cash flows from financing activities. The impact on cash
flows for the period from adopting AASB 16 is to increase cash flows from operating activities by $32,546
and to reduce cash flows from financing activities by $32,546.
There is no impact on other comprehensive income and the basic and diluted loss per share.
Determination of whether variable payments are in-substance fixed
For lease agreements subject to lease payments with fixed increases, the Group factored in the fixed
increases into the calculation of the lease liability. The Group has no lease agreements subject to lease
payments based on a variable index.
Determination of the appropriate rate to discount the lease payments
The Group estimated the incremental borrowing rate applicable to its lease as the rate of interest that a
lessee would have to pay to borrow over a similar term and with similar security the funds necessary to
obtain an asset of a similar value to the ROU Asset. The estimate was based on a risk adjusted rate and
considered the materiality of the impacts of applying a range of interest rates. The incremental borrowing
rate applied is 12.5%.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The following is a reconciliation of total operating lease commitments at 30 June 2019 to the lease liabilities
recognised at 1 July 2019:
Operating lease commitments disclosed at 30 June 2019
Less: discount applied using incremental borrowing rate
Lease liability recognised at 1 July 2019
Right-of-Use asset (value determined solely with reference to the lease liability value)
$
231,042
(39,745)
191,297
191,297
The recognised ROU Asset relates to office premises.
Summary of new accounting policies
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Unless the Group is
reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-
of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease
term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably certain to be exercised by the Group and
payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to
terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense
in the period on which the event or condition that triggers the payment occurs. In calculating the present
value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date
if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount
of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the
lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the
underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and
do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to
leases of office equipment that are considered of low value (i.e., below $5,000). Lease payments on short-
term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease
term.
New and revised Accounting Standards for Application in Future Periods
A number of new standards, amendments to standards and interpretations issued by the AASB which are
not yet mandatorily applicable to the Group have not been applied in preparing these consolidated financial
statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt
these standards early.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
AASB 2018-6: Amendments to the Australia Accounting Standards – Definition of a business
This standard amends AASB 3 Business Combinations’ (“AASB 3”) definition of a business. To be considered
a business, an acquisition would have to include an input and a substantive process that together
significantly contributes to the ability to create outputs. The new guidance provides a framework to evaluate
when an input and a substantive process are present. The revisions to AASB 3 also introduced an optional
concentration test. If the concentration test is met, the set of activities and assets acquired is determined not
to be a business combination and asset acquisition accounting is applied. The concentration test is met if
substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or
group of similar identifiable assets. The Group’s assessment of the impact of this new amendment is that it is
not expected to have a material impact on the Group in the current or future reporting periods.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January
2020 and early adoption is permitted. The Conceptual Framework contains new definition and recognition
criteria as well as new guidance on measurement that affects several Accounting Standards. Where the
Group has relied on the existing framework in determining its accounting policies for transactions,
events or conditions that are not otherwise dealt with under the
Australian Accounting Standards, the Group may need to review such policies under the revised framework.
At this time, the application of the Conceptual Framework is not expected to have a material impact on the
Group’s financial statements.
(c) Basis of Preparation/Accounting
The financial statements have been prepared on an accruals basis and are based on historical costs and
do not take into account changing money values or, except where stated, current valuations of non-current
assets. Cost is based on the fair values of the consideration given in exchange for assets.
In applying International Financial Reporting Standards (“IFRS”), management is required to make
judgements, estimates and assumptions that affect the application of accounting policies and reported
amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making judgements about carrying values of assets and
liabilities that are not readily available from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Accounting policies are selected and applied in a manner which ensures that the resulting financial
information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the
underlying transactions or other events is reported. These accounting policies have been consistently applied
throughout the period, except for the adoption of AASB 16. Refer to note 2(b) for further detail.
The significant accounting policies set out below have been applied in the preparation and presentation of
the financial statements for the year ended 30 June 2020 and the comparative information.
(d) Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of the subsidiary of Jindalee
Resources Limited (“Company” or “Parent Entity”) as at 30 June 2020 and the results of all subsidiaries for
the year then ended. Jindalee Resources Limited and its subsidiaries together are referred to in the financial
statements as the Group or consolidated entity.
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to
govern the financial and operating policies, generally accompanying a shareholding of more than one-
half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group controls another entity.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-
consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment
of the asset transferred. Accounting policies of subsidiaries are changed where necessary to ensure
consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the parent entity information disclosures of Jindalee
Resources Limited.
Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests
and any consideration paid or received is recognised in a separate reserve within equity attributable to
owners of Jindalee Resources Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair
value is the initial carrying amount for the purposes of subsequently accounting for the retained interest
as an associate, jointly controlled entity or financial asset. In addition, any amounts previously recognised
in other comprehensive income in respect of that entity are accounted for as if the Group had directly
disposed of the related assets or liabilities. This may mean that the amounts previously recognised in other
comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or
significant influence is retained, only a proportionate share of the amounts previously recognised in other
comprehensive income are reclassified to profit or loss where appropriate.
(e) Cash and Cash Equivalents
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, and
term deposits repayable on demand with a financial institution. The cash and cash equivalents balance
primarily consists of funds on term deposit with original maturity at time of purchase of three months or less
that are readily convertible to known amounts of cash and which are subject to minimal risk of changes in
value.
(f)
Trade and Other Receivables
Trade and other receivables are recognised initially at fair value, less any allowance for expected credit
losses. See note 10 for further information about the group’s accounting for trade and other receivables.
(g) Revenue Recognition
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
All revenue is stated net of the amount of goods and services tax.
(h) Property, Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Depreciation is calculated using the diminishing value and prime cost methods and is brought to account
over the estimated economic lives of all property, plant and equipment. The rates used are based on the
useful life of the assets and range from 10% to 40%.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
(i)
Impairment of Assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the asset’s
values in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment
as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-
generating unit exceeds its’ recoverable amount, the asset or cash-generating unit is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset.
As assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last impairment
loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable
amount. That increased amount cannot exceed the carrying amount that would have been determined,
net of depreciation, had the impairment loss been recognised for the asset in prior years. Such reversal is
recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is
treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to
allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining
useful life.
(j)
Exploration and Evaluation Expenditure
The Group’s policy with regards to exploration and evaluation expenditure, including the costs of acquiring
licences and permits, are capitalised as exploration and evaluation assets on an area of interest basis. Under
this method exploration and evaluation expenditure is carried forward on the following basis:
i)
ii)
Each area of interest is considered separately when deciding whether, and to what extent, to carry
forward or write off exploration and evaluation costs.
Exploration and evaluation expenditure related to an area of interest is carried forward provided that
rights to tenure of the area of interest are current and that one of the following conditions is met:
-
-
such evaluation costs are expected to be recouped through successful development and
exploitation of the area of interest or alternatively, by its sale; or
exploration and/or evaluation activities in the area of interest have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves and active and significant operations in relation to the area are continuing.
Exploration and evaluation costs accumulated in respect of each particular area of interest include only net
direct expenditure.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k) Trade and Other Payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and
services provided to the Group prior to the end of the financial year that are unpaid and arise when the
Group becomes obliged to make future payments in respect of the purchase of these goods and services. The
amounts are unsecured and usually paid within 30 days of recognition.
(l)
Employee Entitlements
The Group’s liability for employee entitlements arising from services rendered by employees to reporting
date are recognised in current liabilities. Employee entitlements expected to be settled within one year
together with entitlements arising from wages and salaries, and annual leave which will be settled within one
year, have been measured at their nominal amount and include related on-costs.
(m) Share Based Payment Transactions
Share based payments
Under AASB 2 Share Based Payments, the Group must recognise the fair value of options granted to
directors, employees and consultants as remuneration as an expense on a pro-rata basis over the vesting
period in the statement of profit or loss and other comprehensive income with a corresponding adjustment
to equity.
The Group provides benefits to employees (including directors) of the Group in the form of share based
payment transactions, whereby employees render services in exchange for shares or rights over shares
(“equity-settled transactions”). The cost of these equity-settled transactions with employees (including
directors) is measured by reference to fair value at the date they are granted. For options the fair value is
determined using a Black-Scholes model.
(n) Loss Per Share
(i) Basic Loss Per Share
Basic loss per share is determined by dividing the operating loss attributable to the equity holder of
the Group after income tax by the weighted average number of ordinary shares outstanding during the
financial period.
(ii) Diluted Loss Per Share
Diluted loss per share adjusts the figures used in determination of basic earnings per share by taking
into account amounts unpaid on ordinary shares and any reduction in earnings per share that will arise
from the exercise of options outstanding during the period.
(o) Contributed Equity
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Any
transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of
the share proceeds received.
(p)
Income Tax and Other Taxes
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 reporting 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 liabilities are recognised for all taxable temporary differences except:
• When the deferred income tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• When the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax
losses can be utilised, except:
• When the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
• When the deductible temporary difference is associated with investments in subsidiaries, associates or
interest 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 statement of financial position 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 statement of financial position 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.
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 & Services Tax
Revenues, expenses and assets are recognised net of the amount of GST except:
• Where 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 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
flow 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.
(q) Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Group and that are
believed to be reasonable under the circumstances.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounting for capitalised exploration and evaluation expenditure
The Group’s accounting policy is stated at Note 2(j). There is some subjectivity involved in the carrying
forward as capitalised or writing off to the statement of profit or loss and other comprehensive income
exploration and evaluation expenditure, however management give due consideration to areas of interest
on a regular basis and are confident that decisions to either write off or carry forward such expenditure fairly
reflect the prevailing situation.
Share-based payments
The Group measures share-based payments at fair value at the grant date. The fair value is determined using
a Black-Scholes model or other valuation technique appropriate for the instrument being valued.
Deferred tax balances
Deferred tax assets in respect of tax losses are not recognised in the financial statements as management
considers that it is currently not probable that future taxable profits will be available to utilise those tax
losses. Management reviews on a regular basis the future profitability of the Group to consider if tax losses
should be recognised and to ensure that any tax losses recognised will be utilised.
(r)
Investment and other financial assets
Financial Instruments
The Group has exposure to interest rate risk which is the risk that the Group’s financial position will be
adversely affected by movements in interest rates. Interest rate risk on cash and short term deposits is not
considered to be a material risk due to the short term nature of these financial instruments.
The Group has no monetary foreign currency assets or liabilities.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They are included in current assets, except for those with maturities greater than
12 months after the reporting date which are classified as non-current assets.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss (“FVTPL”) include financial assets that are trading or
that meet certain conditions and are designated at FVTPL upon initial recognition. All derivative financial
instruments fall into this category, except for those designated and effective as hedging instruments, for
which the hedge accounting requirements apply.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair
values of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists.
Recognition and derecognition
Regular purchases and sales of financial assets are recognised on trade-date – the date on which the Group
commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs
for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value
through profit and/or loss are initially recognised at fair value and transaction costs are expensed in the
statement of profit or loss and other comprehensive income. Financial assets are derecognised when the
rights to receive cash flows from the financial assets have expired or have been transferred and the Group
has transferred substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised
in equity are included in the statement of profit or loss and other comprehensive income as gains and losses
from investment securities.
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2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Subsequent measurement
Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective
interest method.
Financial assets at fair value through profit or loss are subsequently carried at fair value. Gains on financial
assets at fair value through profit or loss are recognised in profit or loss.
Details on how the fair value of financial instruments is determined is disclosed in Notes 19 and 22.
(s) Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the reporting date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and the risks specific to the liability.
(t) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.
(u) Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group
as lessee are classified as operating leases. Payments made under operating leases (net of any incentives
received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
(v) Farm-in arrangements
In accounting for farm-ins inside the exploration and expenditure phase, the Group:
•
•
•
The Group does not record any expenditure made by the farmee on its behalf;
The Group does not recognise a gain or loss on the farm-out arrangement but rather,
redesignates any costs previously capitalised in relation to the whole interest as relating to the partial
interest retained; and
Any cash consideration received is credited against costs previously capitalised in relation to the whole
interest with any excess accounted for by the Group as a gain on disposal.
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3.
SEGMENT INFORMATION
Management has determined that the Group has two reportable segments, being mineral exploration in Australia
and the United States. As the Group is focused on mineral exploration, the Board periodically monitors the Group
based on actual versus budgeted exploration expenditure incurred in each of these geographical locations. This
internal reporting framework is most relevant to assist the Board with making decisions regarding the Group and
its ongoing exploration programmes and activities, while also taking into consideration the results of exploration
work that has been performed to date.
Mineral exploration
Total
Australia
$
USA
$
Year ended 30 June 2020
Reconciliation of segment revenue to Group revenue
Revenue from external sources
–
–
Unallocated revenue
Total revenue
Reconciliation of segment result to Group loss
Segment result
Unallocated
- Interest revenue
- Corporate expenses and other costs, net of other income
Loss before tax
As at 30 June 2020
Reconciliation of segment assets to Group assets
Segment assets
Intersegment eliminations
Total assets
Reconciliation of segment liabilities to Group liabilities
Segment liabilities
Intersegment eliminations
Total liabilities
–
7,063
7,063
(51,076)
(2,680)
(53,756)
7,063
(204,185)
(250,878)
5,523,859
1,418,222
6,942,081
(1,401,395)
5,540,686
(165,746)
(1,401,395)
(1,567,141)
1,401,395
(165,746)
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3.
SEGMENT INFORMATION (continued)
Mineral exploration
Total
Australia
$
USA
$
Year ended 30 June 2019
Reconciliation of segment revenue to Group revenue
Revenue from external sources
–
–
Unallocated revenue
Total revenue
Reconciliation of segment result to Group loss
Segment result
Unallocated
- Interest revenue
- Corporate expenses and other costs, net of other income
Loss before tax
As at 30 June 2019
Reconciliation of segment assets to Group assets
Segment assets
Intersegment eliminations
Total assets
Reconciliation of segment liabilities to Group liabilities
Segment liabilities
Intersegment eliminations
Total liabilities
4.
REVENUE AND OTHER INCOME
Revenue from continuing operations
Interest
Other income
Gain on sale of tenements and royalty#
Other
–
32,470
32,470
(613,744)
(14,133)
(627,877)
32,470
(424,300)
(1,019,707)
4,604,980
567,614
5,172,594
(553,482)
4,619,112
(592,387)
553,482
(38,905)
2019
$
32,470
370,402
16,364
386,766
(38,905)
(553,482)
2020
$
7,063
555,155
27,507
582,662
# Refers to: sale of 80% of tenements 15/1736, 15/4747 & 15/1752 to Torque Metals Ltd; payment of non-refundable
option payment on Millrose tenement by Golden Eagle Mining; cash payment and equity received for sale of gold
royalty interests to Vox Royalty Corp.
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5.
TAXATION
(a) Income tax expense/(benefit)
Current tax
Deferred tax
Deferred income tax expense included in income tax expense/
(benefit) comprises:
(Decrease)/increase in deferred tax liability
Opening balance - deferred tax (asset)/ liability
Movement for period
Closing Balance – deferred tax (asset)/ liability
2020
$
2019
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(b) Numerical reconciliation of income tax expense to prima facie tax
payable
Loss before income tax:
Tax at the Australian tax rate of 30% (2019: 30%)
(250,878)
(75,263)
(1,019,707)
(305,912)
Tax effect of amounts which are not deductible in calculating
taxable income:
Foreign income not assessable
Non-deductible (income)/expenses
Share-based payments
Tax losses not recognised
Total income tax benefit
(804)
(8,925)
(24,313)
109,305
–
(4,240)
(1,972)
51,672
260,452
–
The franking account balance at year end was $nil (2019: $nil).
Jindalee Resources Limited and its wholly owned subsidiaries have not implemented the tax consolidation
legislation.
Jindalee Resources Limited has unrecognised deferred tax assets at year-end of $1,328,985 (2019:
$1,214,460) representing unrecognised tax losses.
Jindalee Resources Limited is not considered to be a base rate entity for income tax purposes and is therefore
subject to income tax at a rate of 30% (2019: 30%).
Net deferred tax assets have not been brought to account as it is not probable within the immediate future that
tax profits will be available against which deductible temporary differences and tax losses can be utilised. The
Company’s ability to use losses in the future is subject to the Company satisfying the relevant tax authority’s
criteria for using these losses.
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6.
RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Loss after income tax
Exploration expenditure written off
Depreciation
Gain on sale of tenements and royalty
Share-based payments
Fair value movement on financial assets
Change in operating assets and liabilities during the financial year:
Decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
2020
$
(250,878)
189,694
75,011
(555,155)
(81,044)
134,801
14,774
(2,871)
(9,012)
2019
$
(1,019,707)
(2,966)
6,569
(370,332)
172,239
564,676
11,354
4,771
16,790
Net cash outflow from operating activities
(484,680)
(616,606)
7.
LOSS PER SHARE
Loss used in calculation of basic and diluted loss per share
(250,878)
(1,019,707)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
(0.66)
(0.66)
(2.92)
(2.92)
Weighted average number of ordinary shares used as the denominator
in calculating basic and diluted loss per share.
37,999,169
34,940,105
2020
$
2019
$
Options on issue were not considered to be dilutive as their impact would have been to increase the loss per
share.
8. DIVIDENDS
No dividend has been declared for the year ended 30 June 2020 (2019: nil).
9.
CASH AND CASH EQUIVALENTS
Cash at bank
2020
$
839,726
839,726
2019
$
908,486
908,486
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10. TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
Non-current
Other receivables (deposits)
2020
$
2019
$
54,092
18,867
61,106
60,216
Trade and other receivables are denominated in Australian dollars and are interest free with settlement terms
of between 7 and 30 days. No trade receivables were past due or impaired as at 30 June 2020 (2019: nil).
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible
are written off by reducing the carrying amount directly. Allowance for expected credit loss is established, using
the expected credit loss model under AASB9 when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of the receivables.
The amounts held in trade and other receivables do not contain impaired assets and are not past due. Based on
the credit history of these trade and other receivables, it is expected that these amounts will be received when
due.
Due to the short-term nature of these receivables their carrying value is assumed to be their fair value. Please refer
to Note 19 for information on credit risk.
11. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Current
Shares in listed corporations
- Opening balance
- Additions1
- Disposals
- Fair value movement
- Closing balance
Shares in listed corporations
Non-Current
Shares in listed corporations
- Opening balance
- Additions
- Disposals
- Fair value movement
- Closing balance
2020
$
–
281,875
–
23,983
305,858
2019
$
–
–
–
–
–
2,228,085
–
(241,727)
(158,784)
1,827,574
2,601,522
280,000
(88,761)
(564,676)
2,228,085
The fair value of listed financial assets at fair value through profit and loss has been determined directly by
reference to published price quotations in an active market.
At 30 June 2020 the market value of the Group’s shareholding in Energy Metals Limited was $1,467,195
(2019: $1,824,977).
Refer to Note 19 for information on Group’s exposure to price risk.
1
These financial assets are shares issued in the capital of Vox Royalty Corp (TSX-V: VOX) which were
acquired as consideration for tenement sales and were non-cash transactions.
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12. NON-CURRENT ASSETS - PROPERTY, PLANT AND EQUIPMENT
Plant and equipment - at cost
Less: accumulated depreciation
Reconciliation of the carrying amount of property, plant and equipment:
Carrying amount at beginning of year
Additions
Less: depreciation expense for year
Carrying amount at end of year
2020
$
183,526
(163,738)
19,788
21,856
3,861
(5,929)
19,788
2019
$
179,776
(157,920)
21,856
28,424
–
(6,568)
21,856
Total property, plant and equipment
19,788
21,856
13. NON-CURRENT ASSETS – EXPLORATION AND EVALUATION EXPENDITURE
Balance at beginning of year
Exploration expenditure incurred
Disposal of tenements/interest in JV
Exploration expenditure written off
Balance at the end of the year
2020
$
1,381,602
1,155,139
(36,720)
(189,694)
2019
$
545,961
847,343
(8,736)
(2,966)
2,310,327
1,381,602
The balance carried forward represents projects in the exploration and evaluation phase.
Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and
commercial exploitation, or alternatively, sale of respective areas.
The exploration expenditure written off during the year relates to exploration and evaluation expenditure on
tenements surrendered, or to which the Group does not currently have right to tenure.
14. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Trade and other payables
2020
$
12,513
2019
$
14,495
Trade and other payables are non-interest bearing and are normally settled on 30 day terms.
The carrying value of trade and other payables are assumed to be the same as their fair values, due to their short
term nature. Refer to note 19.
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15. CONTRIBUTED EQUITY
Share capital
2020
$
2019
$
38,860,920 ordinary fully paid shares (2019: 34,994,775)
8,381,909
7,227,254
Balance at the beginning of year
Issue of shares net of costs1
Balance at the end of the year
Number
4,994,775
3,866,145
38,860,920
$
7,255,254
1,126,655
8,381,909
1 Pursuant to a non-renounceable entitlement offer as announced to ASX on 12 August 2019, the Company issued
3,499,478 fully paid ordinary shares at $0.30 per share for a total of $1,049,843 before costs associated with the
issue. On 17 June 2020 the Company announced a placement and issued 366,667 fully paid ordinary shares at
$0.30 for a total of $110,000 before costs associated with the issue.
Ordinary shares participate in dividends. On winding up of the Group any proceeds would be distributed in
proportion to the number of shares held.
At shareholder meetings on a show of hands every holder of ordinary shares present at a meeting in person or by
proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
16. ACCUMULATED LOSSES
Retained earnings at the beginning of the financial year
Loss attributable to members of the Group
Transfer from available for sale investments revaluations reserve
Accumulated losses at the end of the financial year
17. RESERVES
Share-based payment reserve
Balance at the beginning of the year
Share-based payments (refer to note 18)
Balance at the end of the year
Available for sale investments revaluations reserve
Balance at the beginning of year
Transfer to retained earnings following change in accounting policy
Balance at the end of the year
2020
$
(5,287,099)
(250,878)
–
(5,537,977)
2020
$
2,612,052
(81,044)
2,531,008
–
–
–
2019
$
(5,204,784)
(1,019,707)
937,392
(5,287,099)
2019
$
2,467,813
144,239
2,612,052
937,392
(937,392)
–
Total reserves
2,531,008
2,612,052
Nature and purpose of the reserves:
(i)
The share-based payments reserve is used to recognise the fair value of options issued but not exercised.
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18. SHARE BASED PAYMENT TRANSACTIONS
Share based payments transactions are recognised at fair value in accordance with AASB 2 Share based
payments. The adoption of AASB 2 is equity-neutral for equity-settled transactions. The gain in the year was
$81,044, representing reversal of prior year expense related to options that lapsed in the current year following
the resignation of Mr Pip Darvall on 31 December 2019 (2019: expense of $172,239).
Employee Share Option Plan
Jindalee Resources Limited Employee Share Option Plan (“ESOP”) was established to encourage all eligible
directors, executive officers and employees who have been continuously employed by the Group to have a
greater involvement in the achievement of the Group’s objectives and to provide an incentive to strive to that end
by participating in the future growth and prosperity of the Group through share ownership.
The ESOP allows the Group to issue free options to eligible persons. The options can be granted free of charge and
are exercisable at a fixed price in accordance with the rules of the ESOP.
All options currently on issue are fully vested.
Summary of Options
Set out below are summaries of options granted during and in prior financial years. No options were granted
during the year ended 30 June 2020:
Grant
Date
Expiry
Date
Exercise
Price
Balance
at the start
of the year
Number
Granted
during the
year
Number
Exercised
during
the year
Number
Expired/
lapsed
during
the year
Number
Balance at
the end of the
year
Number
Vested and
exercisable
at the end
of the year
Number
22/11/2017
30/06/2022
$0.50 T4
1,500,000
22/11/2017
30/06/2022
$0.60 T5
1,500,000
16/01/2019
30/06/2022
$0.50 T6
200,000
Weighted average exercise price
$0.50
–
–
–
–
–
1,500,000
1,500,000
– (1,500,000)
–
–
–
–
200,000
200,000
The weighted average remaining contractual life of share options outstanding at the end of the period is 2 years
(2019: 3 years).
Fair Value of Share Options and Assumptions
The fair value of services received in return for share options granted is measured by reference to the fair value
of options granted. The estimate of the fair value of the services is measured based on a Black-Scholes option
valuation methodology. This life of the options and early exercise option are built into the option model.
The assumptions used for the options valuation are as follows:
T4
T5
T6
22/11/2017
22/11/2017
16/01/2019
$0.50
$0.60
$0.50
4.77 years
4.77 years
3.45 years
$0.25
$0.25
$0.28
Grant Date
Exercise Price
Expected Life
Share Price at Time of
Issue
Expected Volatility
Dividend Yield
Risk Free Interest Rate
2.14%
65%
0%
65%
0%
2.14%
65%
0%
1.92%
Option Value
$0.09518
$0.08464
$0.08891
As a result, a share-based payment gain of $81,044 was recognised during the year ended 30 June 2020 in relation
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options that lapsed and were cancelled in the current year following the resignation of Mr Pip Darvall on 31
December 2019.
19. FINANCIAL AND CAPITAL RISK MANAGEMENT
(a) Capital Risk Management
The Group manages its capital to ensure that it will be able to continue as a going concern.
In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent
return for its equity shareholders. In order to achieve this object, the Group seeks to maintain a capital structure
that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to enable
the Group to meet its working capital and strategic investment needs. In making decisions to adjust its capital
structure to achieve these aims, either through new share issues, or sourcing of debt, the Group considers not
only its short-term position but also its long-term operational and strategic objectives.
There have been no significant changes to the Group’s capital management objectives, policies and processes in
the year nor has there been any change in what the Group considers to be its capital.
The capital structure of the Group consists of cash and cash equivalents (Note 9) and equity attributable to equity
holders of the Group, comprising issued capital, reserves and retained earnings (accumulated losses) as disclosed
in Notes 15, 16 and 17 respectively.
(b) Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis
of measurement and the basis on which income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument are disclosed in Note 2 of the financial statements.
(c) Categories of Financial Instruments
Financial Assets
Current
Cash and cash equivalents
Trade and other receivables
Total Current Financial Assets
Non-current
Financial assets at fair value through profit and loss
Other receivables
Total Non-Current Financial Assets
Financial Liabilities
Current
Trade and other payables
Lease liabilities
Total Current Financial Liabilities
Non-current
Lease liabilities
Total Current Financial Liabilities
(d) Credit Risk Exposure
2020
$
2019
$
839,726
54,092
893,818
2,133,432
61,106
2,194,538
12,513
63,299
75,812
74,537
74,537
908,486
18,867
927,353
2,228,085
60,216
2,288,301
14,495
–
14,495
–
–
As at the reporting date, the Group has no significant concentrations of credit risk. The carrying amount
reflected above represents the Group’s maximum exposure to credit risk.
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ABN 52 064 121 133ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE CONSOLIDATEDFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2020
19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(e)
Interest Rate Risk Exposure
The Group’s exposure to interest rate risk arises from assets bearing variable interest rates. The weighted
average interest rate on cash holdings was 0.90% at 30 June 2020 (2019: 2.00%). All other financial assets
and liabilities are non-interest bearing. The net fair value of the Group’s financial assets and liabilities
approximates their carrying value.
The Group invests its surplus funds on deposit with Australian banking financial institutions, namely the
National Australia Bank and ANZ Bank. For banks and financial institutions, only independently rated parties
with a minimum rating of AA- are accepted.
The table below summarises the impact of an increase/decrease in interest rates received on financial
instruments held at year end on the Group’s pre-tax profit for the year and on equity. The analysis is based
on the assumption that rates increased/decreased proportionally by 10% of the current weighted average
interest rate with all other variables held constant.
Impact on profit and equity
Increase of 10%
Decrease of -10%
(f)
Price Risk
2020
$
(1,385)
1,385
2019
$
3,247
(3,247)
The Group is exposed to equity securities price risk. This arises from investments held by the Group and
classified in the statement of financial position as financial assets at fair value through profit and loss. The
Group is not exposed to commodity price risk.
To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
The table below summarises the impact of an increase/decrease in prices of securities held at year end on
the Group’s pre- tax profit for the year and on equity. The analysis is based on the assumption that the prices
of all securities increased/decreased by 10% with all other variables held constant.
Impact on profit and equity
Increase of 10%
Decrease of -10%
(g) Liquidity Risk
2020
$
2019
$
213,343
(213,343)
222,808
(222,808)
The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet our
financial commitments in a timely and cost-effective manner. The Board reviews the Group’s liquidity
position on a regular basis including cash flow statements to determine the forecast liquidity position and
maintain appropriate liquidity levels. Note 14 details the Group’s current obligations which, in addition to
finance lease liabilities disclosed in the statement of financial position, are all due within 12 months and
reflect the actual cash flows given the short-term nature of these liabilities.
There are no unused borrowing facilities from any financial institution.
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19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)
(h) Fair Values
The carrying amounts and estimated fair values of financial assets and financial liabilities are as follows:
Consolidated
Financial Assets
Cash and cash equivalents
Trade and other receivables
Non-current deposits
Financial assets at fair value through profit and loss
Total Financial Assets
Financial Liabilities
Trade and other payables
Lease liabilities
Total Financial Liabilities
2020
$
839,726
54,092
61,106
2,133,432
3,088,356
12,513
137,835
150,348
2019
$
908,486
18,867
60,218
2,228,085
3,215,656
14,495
–
14,495
The methods and assumptions used to estimate the fair value of financial instruments are outlined below:
Cash
The carrying amount is fair value due to the liquid nature of these assets.
Receivables/payables
Due to the short-term nature of these financial rights and obligations, their carrying amounts are estimated
to represent their fair values. Non-current receivables receive a market rate of interest and are assessed as
representing their fair values.
Financial assets at fair value through profit and loss
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair
values of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists. Refer to Note 22 for further details.
20. CONTINGENCIES
Contingent Liabilities
Claims of Native Title
To date the Group has been notified by the Native Title Tribunal of native title claims which cover some of the
Group’s licence holdings. Until further information arises in relation to the claims and its likelihood of success, the
Group is unable to assess the likely effect, if any, of the claims.
Performance Bonds and Security Documents
In support of titles granted to or operated by the Group, various securities are submitted to the Department of
Mines, Industry Regulation and Safety. These consist of unconditional performance bonds and securities or Form
32 security documents. The Company has no liability outstanding.
Contingent Assets
Tenement Subject to Option
The Group entered into an agreement with Torque Metals Limited agreeing to vend an 80% interest in exploration
licences 15/1736, 15/1747 and 15/1752. Under the terms of the agreement, the Group received $10,000
reimbursement for previous tenement costs. The Group maintains a 20% free carried position to completion of a
Pre-Feasibility Study (PFS). On completion of the PFS the Group can either contribute pro-rata or dilute, with the
Group reverting to a 1.5% gross royalty if the Group’s interest falls below 5%.
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20. CONTINGENCIES (continued)
The Group entered into an agreement with Vox Royalty Corp (Vox) for the sale of several non-core royalty and
project interests over gold tenements at Kookynie, West Kundana, Millrose and a free-carried interest (convertible
to a royalty) in the New Bore and Kelly Well projects.
Due to the early stage of these agreements, no royalty payment has been recognised as at 30 June 2020.
Other than the above, there has been no change in contingent liabilities, contingent assets or commitments since
the last annual reporting date, 30 June 2019.
There are no other contingencies of the Group at balance date.
21. COMMITMENTS
Capital Commitments
There are no capital expenditure commitments for the Group as at 30 June 2020.
22. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
The carrying values of financial assets and liabilities of the Group approximate their fair values. Fair values of
financial assets and liabilities have been determined for measurement and / or disclosure purposes.
Fair value hierarchy
The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the
significance of the inputs used in determining that value. The table following analyses financial instruments carried
at fair value by the valuation method. The different levels in the hierarchy have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices); and
Level 3:
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Recurring fair value measurements
Level 1
Level 2
Level 3
30 June 2020
$
Financial assets at fair value through profit
and loss
2,133,432
Total as at 30 June 2020
2,133,432
30 June 2019
Financial assets at fair value through profit
and loss
2,228,085
Total as at 30 June 2019
2,228,085
$
–
–
–
–
$
–
–
–
–
Total
$
2,133,432
2,133,432
2,228,085
2,228,085
Due to their short-term nature, the carrying amount of the current receivables and current payables is assumed to
approximate their fair value.
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23. CONTROLLED ENTITIES
Controlled Entity
Eastmin Pty Limited
HiTec Minerals Pty Ltd
HiTech Minerals Inc.
% held
2019
100%
100%
100%
2018
100%
100%
100%
State of
Incorporation
Date of
Incorporation
WA
WA
15/04/2005
13/04/2016
Nevada, USA
21/02/2018
Class
Ord
Ord
Ord
Investment at Cost
2020
2019
$
2
100
2
$
2
100
2
The date of acquisition of the controlled entities was on the date of incorporation.
24. RELATED PARTY TRANSACTIONS
(a) Parent entity
The parent entity within the Group is Jindalee Resources Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 23.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
2020
$
351,493
38,227
(81,044)
308,676
2019
$
482,405
36,670
126,458
645,533
Refer to the remuneration report contained within the Directors’ Report and Note 18 for further details on other
transactions with key management personnel and share based compensation.
25. REMUNERATION OF AUDITORS
Amounts paid or payable at 30 June to the auditors for
Audit and review of financial statements
Total remuneration for audit and other assurance services
2020
$
29,671
29,671
2019
$
27,733
27,733
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ABN 52 064 121 133ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE CONSOLIDATEDFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2020
26. PARENT ENTITY FINANCIAL INFORMATION
The following details information related to the parent entity, Jindalee Resources Limited, at 30 June 2020 and 30
June 2019.
The information presented here has been prepared using consistent accounting policies as presented in Note 2.
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Reserves
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2020
$
2019
$
846,433
5,073,260
5,919,693
614,492
3,712,312
4,326,804
284,636
527,424
812,060
31,599
7,305
38,904
5,107,633
4,287,900
8,381,909
(5,805,283
2,531,008
5,107,633
7,255,254
(6,516,798)
3,549,444
4,287,900
(225,877)
(1,029,170)
–
–
(225,877)
(1,029,170)
No guarantees have been entered into by Jindalee Resources Limited in relation to the debts of its subsidiary
companies.
Jindalee Resources Limited had no commitments or contingent liabilities or assets at year end other than those
disclosed in Notes 20 and 21.
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27. EVENTS OCCURING AFTER THE REPORTING PERIOD
As announced to ASX on 27 July 2020, the Group entered into a binding agreement with Auroch Minerals Limited
(Auroch) (ASX: AOU) agreeing to vend a 70% interest in exploration licences 36/895, 36/910, 36/953 and 37/1370.
Under the terms of the agreement, the Group received $50,000 cash with a further $50,000 cash due upon
completion of all earn-in commitments. Auroch must spend $500,000 on exploration across the four tenements
over a three year period, including $100,000 in the first 12 months. The Group maintains a 30% free carried
position until a decision to mine.
As announced to ASX on 3 August 2020, the Group appointed Ms Karen Wellman Chief Executive Officer of the
Company with an effective date of 12 October 2020. Mrs Wellman will be paid a base salary of $220,000 per annum
exclusive of statutory superannuation and subject to shareholder approval at the Company’s Annual General
Meeting will be issued 1,000,000 unlisted options exercisable at $0.40 vesting on 30 April 2021 and expiring 30
June 2025; and 1,000,000 unlisted options exercisable at $0.50 vesting on 30 April 2022 and expiring on 30 June
2025.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the
Group up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the
reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government and other countries, such as maintaining social distancing requirements, quarantine, travel
restrictions and any economic stimulus that may be provided.
Other than the matters outlined above, there has not arisen in the interval between the end of the financial year
and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion
of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the
Group in future financial years.
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ABN 52 064 121 133ANNUAL REPORT 2017 NOTES TO AND FORMING PART OF THE CONSOLIDATEDFINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2020
DIRECTORS' DECLARATION
JINDALEE RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
ACN 064 121 133
DECLARATION BY DIRECTORS
In the Directors’ opinion:
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive in-
come, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement
of changes in equity, accompanying notes, are in accordance with the Corporations Act 2001, and:
(a)
complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory profes-
sional reporting requirements; and
(b) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020 and of its perfor-
mance for the year ended on that date.
2.
In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they become due and payable.
3.
The Directors have been given the declarations as required by section 295A of the Corporations Act 2001.
4. Note 2(a) confirms that the financial statements also comply with International Reporting Standards as issued by
the International Accounting Standards Board.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
L Dudfield
Executive Director
14th day of August 2020 at Perth, Western Australia.
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ABN 52 064 121 133ANNUAL REPORT 2017
AUDITORS’ INDEPENDENCE DECLARATION
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY ASHLEIGH WOODLEY TO THE DIRECTORS OF JINDALEE
RESOURCES LIMITED
As lead auditor of Jindalee Resources Limited for the year ended 30 June 2020, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Jindalee Resources Limited and the entities it controlled during the
period.
Ashleigh Woodley
Director
BDO Audit (WA) Pty Ltd
Perth, 14 August 2020
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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ABN 52 064 121 133ANNUAL REPORT 2017
AUDITORS’ REPORT
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Jindalee Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Jindalee Resources Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, 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:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year ended on that date; and
(ii)
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
45
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AUDITORS’ REPORT
Recoverability of exploration and evaluation expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 13 to the Financial Report,
the carrying value of capitalised exploration and
evaluation expenditure represents a significant
asset of the Group.
Refer to Note 2 of the Financial Report for a
description of the accounting policy and
significant judgements applied to capitalised
exploration and evaluation expenditure.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources (AASB 6), the
recoverability of exploration and evaluation
expenditure requires significant judgment by
management in determining whether there are
any facts or circumstances that exist to suggest
that the carrying amount of this asset may
exceed its recoverable amount. As a result, this
is considered a key audit matter.
Our procedures included, but were not limited to:
· Obtaining a schedule of the areas of
interest held by the Group and assessing
whether the rights to tenure of those
areas of interest remained current at
balance date;
·
·
·
·
Considering the status of the ongoing
exploration programmes in the respective
areas of interest by holding discussions
with management, and reviewing the
Group’s exploration budgets, ASX
announcements and directors’ minutes;
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
Considering whether any facts or
circumstances existed to suggest
impairment testing was required; and
Assessing the adequacy of the related
disclosures in Notes 2 and 13 to the
Financial Report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2020, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
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.
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AUDITOR’S REPORT
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included pages 8 to 13 of the directors’ report for the year
ended 30 June 2020.
In our opinion, the Remuneration Report of Jindalee Resources Limited, for the year ended 30 June
2020, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO WA (Audit) Pty Ltd
Ashleigh Woodley
Director
Perth, 14 August 2020
47
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A N N U A L R E P O R T 2 0 2 0
ABN 52 064 121 133ANNUAL REPORT 2017
ADDITIONAL INFORMATION
The following additional information not shown elsewhere in this report is required by the Australian Securities
Exchange in respect of listed public companies only. This information is current as at 18 September 2020.
Securities
Quotation has been granted for 42,710,920 ordinary shares of the Company on the Australian Stock Exchange.
Quoted Securities
ASX Code
JRL
Unquoted Securities
ASX Code
JRLAA
JRLAB
Number of
Holders
810
Number of
Holders
6
2
Security
Description
Ordinary Fully Paid
Total
Securities
42,710,920
Security
Description
Options expiring 30/06/22
Exercisable at $0.40
Total
Securities
3,900,000
Options expiring 30/06/22
1,700,000
exercisable at $0.50
(Mr Pip Darvall holds 3,000,000 unlisted options equivalent to 54% of total unlisted options.)
Voting Rights
The voting rights attached to each class of security are as follows:
•
•
Ordinary Fully Paid shares – one vote per share held.
Options – no voting rights are attached to unexercised options.
Distribution schedule
Spread of Holdings -
Ordinary Shares (ASX Code: JRL)
1
1,001
5,001
10,001
100,001
-
-
-
-
-
1,000
5,000
10,000
100,000
99,999,999
TOTAL
Unmarketable Parcel
Holders
171
263
125
197
54
810
Units
77,367
749,142
991,465
6,037,095
34,855,851
42,710,920
Percentage
0.18%
1.75%
2.32%
14.13%
81.61%
100%
There are 185 Shareholders holding less than a marketable parcel of fully paid ordinary shares (a minimum parcel is
$500 being 1,190 shares using a market value of $0.42 per Share).
Substantial Shareholding
The Company has received the following notices of substantial holding:
•
Kale Capital Corporation Limited in relation to 3,250,565 ordinary shares
A N N U A L R E P O R T 2 0 2 0
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ABN 52 064 121 133ANNUAL REPORT 2017
ADDITIONAL INFORMATION
Register of Securities
The Register of securities is held at Advanced Share Registry Limited at unit 2, 150 Stirling Highway, Nedlands, Western
Australia. Telephone: +61 (8) 9389 8033.
Buyback
No on-market share buy-back is current.
Top 20 Shareholders
The names of the twenty largest shareholders (ASX Code: JRL) are listed below:
Mr LG Dudfield
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