ABN 73 149 230 811
2020 ANNUAL REPORT
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CORPORATE DIRECTORY
Directors
Peter Meagher
Simon Jackson
Grant Ferguson
Company Secretaries
Sarah Wilson
Shannon Coates
Non-executive Chairman
Managing Director
Non-executive Director
Head Office and Registered Office
Suite 5, 62 Ord Street
WEST PERTH WA 6005
Telephone:
+61 (0)8 9322 1587
Facsimile:
+61 (0)8 9322 5230
Securities Exchange Listing
Australian Securities Exchange
Level 40, Central Park, 152-158 St Georges Terrace
PERTH WA 6000
Telephone:
131 ASX (131 279) (within Australia)
Website:
https://www.koporemetals.com
Telephone:
+61 (0)2 9338 0000
Facsimile:
+61 (0)2 9227 0885
Website:
https://www.asx.com.au
ASX Code:
KMT
Auditor
RSM Australia Partners
Level 32, Exchange Tower, 2 The Esplanade
PERTH WA 6000
Share Registry
Automic Group Pty Ltd
Level 2, 267 St Georges Terrace
PERTH WA 6000
Telephone:
1300 288 664
Email:
hello@automicgroup.com.au
Website:
https://www.automicgroup.com.au
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
ANNUAL REPORT
30 JUNE 2020
CONTENTS
Chairman's Letter .................................................................................................................................................................. 3
Operations Review ................................................................................................................................................................ 4
Directors' Report ................................................................................................................................................................... 6
Auditor's Independence Declaration .................................................................................................................................. 16
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................... 17
Consolidated Statement of Financial Position .................................................................................................................... 19
Consolidated Statement of Changes in Equity .................................................................................................................... 20
Consolidated Statement of Cash Flows ............................................................................................................................... 21
Notes to the Consolidated Financial Statements ................................................................................................................ 22
Directors' Declaration ......................................................................................................................................................... 54
Independent Auditor's Report ............................................................................................................................................ 55
Additional information for listed public companies ............................................................................................................ 58
Tenements Schedule ........................................................................................................................................................... 61
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CHAIRMAN'S LETTER
Dear Fellow Shareholders,
I am pleased to present the Kopore Metals Limited (Kopore) Annual Report for 2020.
The past year for Kopore has been one of challenge, but of achievement as well.
In our exploration endeavours in Botswana and Namibia we had a number of successful drill results, but so far not the discovery
we have been seeking.
This being the case and in order to not make dilutive capital raisings in what were challenging equity markets, we made the
decision to divest our Namibian exploration properties, which resulted in a significant transaction with Sandfire Resources Limited
(Sandfire), for a cash amount of approximately $2.0 million , while still retaining some upside exposure to the divested properties
should Sandfire make a decision to mine.
In addition, we have retained our highly valuable, wholly owned exploration licences located on Botswana’s Kalahari Copper Belt.
These licences cover structures upon which, so far, two world class copper discoveries have been made, including that by Cupric
Canyon where a large mine is currently under construction.
With regard to current activities, our recent exploration in Botswana has been minimal and is currently constrained by COVID-19
restrictions, although we have undertaken planning for next steps, including an airborne survey over the Kara Dome. As a small
company and with such a large ground holding, we believe our best strategy is to enter into joint arrangements with partners
who have the resources that are required for large-scale, continuous exploration.
Whilst looking at these ventures, we have also been actively assessing opportunities involving assets not outside Australia and
we are confident of achieving a transaction to add some more immediate value for shareholders.
As a measure to reduce costs, during the year we reduced the size of our Board, with Non-executive Director Shannon Coates
retiring. I want to thank Shannon for her contribution as a Director and for her on going work as our joint Company Secretary,
along with Sarah Wilson.
I would also like to thank our Managing Director Simon Jackson, and my fellow Non-executive Director Grant Ferguson for all
their hard work during the year, along with our consultants and staff in Botswana.
Thank you also to my fellow shareholders for your continued support. I look forward to 2021 and success in growing the value of
our shares.
Yours faithfully
Peter Meagher
NON-EXECUTIVE CHAIRMAN
Kopore Metals Limited
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
OPERATIONS REVIEW 2020
Kopore Metals Limited (ASX: KMT) (Kopore or the Company) is pleased to present its review of operations for the financial year
ended 30 June 2020 (FY20).
Key activities and achievements for FY20 include:
CORPORATE
Sale of Namibian exploration properties to Sandfire Resources Limited (ASX: SFR) for a total of over $2 million consideration.
On 16 March 2020, as part of the Company’s expenditure reduction measures, Ms Shannon Coates resigned as a Non-
Executive Director of the Company.
Settlement agreement executed with Hebron Prospecting Pty Ltd for the withdrawal of Hebron's High Court Application
against the Namibian Ministry of Mines and Energy in respect of four of the Company’s nine granted exclusive prospecting
licences in Namibia.
NAMIBIA
Drilling program at the Otjari Domal Prospect with the intent to test the D’Kar/Ngwako Pan Formations.
Drilling program at the high priority target, Qembo Domal Prospect located in the Otjari/Qembo corridor.
Successful divestment of Nambinian prospects, for upfront consideration and potential further upside at a ‘Decision to Mine’
point, per ASX Announcement on 1 May 2020.
BOTSWANA
Kopore retains eight prospecting licences in Botswana with a total land holding of approximately 3,592km2
The Company is currently assessing the re-commencement of exploration activities in Botswana as that country removes a
number of COVID-19 related restrictions.
Following receipt of drilling results in late 2019 and integration of these results into the geological database, activities in 2020
comprised scoping, planning and costing of work programs.
REGIONAL SETTING
The Kalahari Copper Belt which straddles the borders of Botswana and Namibia is a relatively underexplored and emerging world
class copper province with total reported Mineral Resources of over 7Mt of contained Copper and 260Moz contained silver.
Kopore is a large licence landholder on the Kalahari Copper Belt, with the Company holding 8 prospecting licences in Botswana,
totalling 3,592km2. The region has recently undergone an exploration transformation, with discoveries of copper-silver deposits
making it an emerging world-class destination for new mines. With global copper supplies coming under pressure from industrial
action, falling ore grades and a lack of new mine development, new discoveries across the Kalahari Copper Belt have made the
region a global mining focus.
NAMIBIA PROJECTS
Kopore, through its formerly owned 100% owned Namibian subsidiary, Trans Kalahari Copper (TKC) Namibia, controlled a
significant portion of the Kalahari Copper Belt in the Republic of Namibia. The Company’s prospecting license portfolio was
located approximately 305km north-east of the Namibian capital city of Windhoek close to the Namibia and Botswana national
border.
During the period, and prior to the above-mentioned sale of TKC to Sandfire Resources Limited, the Company continued its
aggressive exploration program at its nine copper-silver prospecting licences.
Otjari Domal Prospect: The Company undertook a drilling program at the Otjari Domal Prospect with the intent to test the
D’Kar/Ngwako Pan Formations, which are known to host copper mineralisation across the Kalahari Copper Belt. The initial two
drill holes interpreted contact made with the lower D’Kar Formation with trace amounts of visible copper mineralisation,
including chalcocite and bornite (see ASX announcement on 28 October 2019).
Qembo Dome Prospect: During the second half of 2019, the Company commenced a drilling program at the high priority target,
Qembo Domal Prospect located in the Otjari/Qembo corridor. The Qembo Domal Prospect geological model had been interpreted
as comparable domes to those located in the north-west of the Kalahari Copper Belt, including Cupric Canyon’s currently in
construction Zone 5 copper mine. The Company successfully encountered the D’Kar/Ngwako Pan Formation with diamond drill
hole QBDB001, and the Ngwako Pan Formation from QBDD002 (see ASX announcement on 18 November 2019).
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Understanding of the Otjari/Qembo corridor is early stage for the Company, and following the logging and analysis of the maiden
drilling program, the Company intends to conduct follow up exploration on this high priority target through airborne
electromagnetic survey and further drilling.
BOTSWANAN PROJECTS
During the period, the Company undertook a ground magnetic survey to further its knowledge and understanding of its Virgo
Project licences, and the underlying soil anomalies. In addition, the Company has been utilising the knowledge obtained from
the recent Namibian exploration programs to further refine targeting of its high priority Botswana prospects.
In FY2020 the Company also rationalised its land holdings in Botswana. A number of less prospective licences were relinquished
and some licences were reduced in size in line with government shedding requirements. Kopore now has eight licences with a
total area of 3,592km2 which cover extensions of the regional structures which host Cupric Canyon’s Zone 5 mine and Sandfire
Resources’ T3 development project (Figure 1).
IMPACT OF COVID-19
Botswana’s significant lock down protocols as a result of the COVID-19 pandemic continued throughout the June 2020 quarter
and the Company’s decision in the March 2020 quarter to halt all exploration activities and instead focus on cost control remained
in place. The Company is currently assessing the re-commencement of exploration activities in Botswana as that country removes
a number of COVID-19 related restrictions.
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
Your Directors present their report together with the financial statements of the Group, being the Company and its controlled
entities, for the financial year ended 30 June 2020.
1.
DIRECTORS
The names, qualifications, experience and special responsibilities of the Directors in office at any time during or since year-end
are as follows. Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
PETER MEAGHER Non-Executive Chairman
B.Econ. B.Com. CPA
Mr Meagher is an accountant, who has worked in corporate advisory roles in stockbroking and merchant banking and as a
finance Director, in Australia and overseas. He has been a Director of listed companies over a long period, including listed
resources companies involved in exploration for copper, gold and other metals.
Directorships held in other listed entities:
Former Non-Executive Chairman of Castillo Copper Ltd (ASX:CCZ) (February 2019 - June 2019)
SIMON JACKSON Managing Director
B.Com., FCA
Mr Jackson is a Chartered Accountant with over 25 years’ experience in the mining sector. He has previously held senior
management positions at Beadell Resources Limited, Orca Gold Limited and Red Back Mining Inc.
Mr Jackson specialises in M&A, public equity markets management and corporate finance. His career has included corporate
transactions in Canada, Australia, Africa and Indonesia and he holds a Bachelor of Commerce degree from the University of
Western Australia and is a Fellow of the Institute of Chartered Accountants in Australia.
Directorships held in other listed entities:
Non-Executive Director of Cygnus Gold Limited (ASX:CY5) since November 2017, Sarama Resources Limited (TSXV:SWA) since
March 2011 and Corizon Resources Limited (ASX:CZR) since January 2019. Simon is also former director of Orca Gold
Inc.(TSXV:ORG) (April 2013 – May 2019), Beadell Resources Limited (ASX:BDR) (November 2015 – July 2019) and Cardinal
Resources Limited (ASX:CDV) (September 2015 – October 2017).
GRANT FERGUSON Non-Executive Director
BSc (Geology), PGradDip (Mining and Mineral Exploration)
Mr Ferguson is a geologist with over 24 years’ experience in all aspects of gold and base metal operations including significant
African and country experience. He has experience in exploration, scoping/pre-feasibility/feasibility studies, project
development and mining operations with a range of public and private companies. His experience includes precious and
base metals, bulk commodities (coal & iron ore) and renewable energy projects across Australia, Africa, Asia, North America,
Europe, and the Middle East. Mr Ferguson is a Fellow of the Australian Institute of Geoscientists (AIG), and a Member of the
Australian Institute of Mining and Metallurgy (AusIMM).
Directorships held in other listed entities:
None
SHANNON COATES Non-Executive Director (Resigned 16 March 2020)
LLB, BJuris, GAICD, ACIS/ACSA
Ms Coates holds a Bachelor of Laws from Murdoch University and has over 20 years’ experience in corporate law and
compliance. Ms Coates is an experienced non-executive Director and Chartered Secretary and is Managing Director of Perth
based corporate advisory firm Evolution Corporate Services, which specialises in the provision of company secretarial and
corporate advisory services to ASX listed companies.
Directorships held in other listed entities:
Non-Executive Director of Flinders Mines Limited (ASX:FMS) (June 2018 – November 2019), Vmoto Limited (ASX:VMT) (May
2014 – present) and Bellevue Gold Limited (ASX: BGL) (13 May 2020 – present).
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
2.
COMPANY SECRETARY
The following persons held the position of Company Secretary at any time during or since the year end:
SARAH WILSON
Ms Wilson is a Corporate Advisor with Evolution Corporate Services Pty Ltd and has over 10 years’ experience in company
secretarial, corporate advisory and corporate governance roles, which has included the provision of company secretarial
services to resource companies. Ms Wilson holds a Certificate in Governance Practice and is a Certified Member of the
Governance Institute of Australia.
SHANNON COATES (Appointed Joint Company Secretary 28 August 2019)
See above.
3.
DIRECTORS’ MEETINGS
The number of Directors’ meetings attended by each of the Directors of the Company who hold or held office during the financial
year was:
Peter Meagher
Grant Ferguson
Shannon Coates
Simon Jackson
DIRECTORS' MEETINGS
Number eligible to attend
Number Attended
10
10
8
10
10
10
8
10
As at the date of this report, the Company has not established Remuneration, Nomination, Audit or Risk Committees as the
Directors believe the Company is not currently of a size nor are its affairs of such complexity as to warrant the establishment of
these separate committees. Accordingly, all matters capable of delegation to such committees are considered by the full Board
of Directors.
4.
DIRECTORS’ INTERESTS
The relevant interests of Directors in the shares and options of the Company up to the date of this report were as follows:
2020
Peter Meagher1
Grant Ferguson2
Simon Jackson3
Shares
(Direct)
No.
-
-
-
-
Shares
(Indirect)
No.
4,500,000
20,266,717
5,000,000
29,766,717
Options
(Direct)
No.
-
-
-
-
Options
(Indirect)
No.
4,000,000
18,000,000
8,000,000
30,000,000
1.
2.
3.
Held by Bond Street Custodians Limited as custodian for Peter Meagher Superfund Trust.
16,979,302 Shares and Options held by Fehu Capital Pty Ltd ; 3,287,415 Shares held by The Steele Group Pty Ltd
.
Held by Bigjac Investments Pty Ltd .
5.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the course of the financial year was copper/base metals exploration.
6.
OPERATING RESULTS
For the 2020 financial year the Group delivered a profit after tax of $3,241 (2019: $3,253,172 loss).
7.
REVIEW OF OPERATIONS
During the year, the Group continued its exploration of the Kalahari Copper Belt prospecting licence portfolio. Refer to the
detailed Operations Review on page 4 of the Annual Report.
8.
DIVIDENDS
The Directors have not paid an interim dividend nor do they recommend the payment of a final dividend.
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
9.
FINANCIAL POSITION
The net assets of the Group have increased from 30 June 2019 by $110,987 to $1,733,220 at 30 June 2020 (2019: $1,622,233).
As at 30 June 2020, the Group's cash and cash equivalents decreased from 30 June 2019 by $225,121 to $1,673,029 at 30 June
2020 (2019: $1,898,150) and had working capital of $1,637,316 (2019: $1,468,014), as noted in Note 9.
The Directors believe the Group is in a satisfactorily stable financial position to continue its current operations.
10. SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no other significant changes in the state of affairs of the Group during the year ended 30 June 2020.
11. EVENTS SUBSEQUENT TO REPORTING DATE
There were no events which occurred subsequent to the reporting date that are not covered in this Directors’ Report or within
the financial statements at Note 14.
12. LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Likely future developments in the operations of the Group are referred to in the Operations Review on page 4 of this Annual
Report.
13. DIRECTORS’ SHAREHOLDINGS, CONTRACTS AND BENEFITS
Since the end of the previous financial year no Director of the Company has received, or become entitled to receive a benefit
(other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in the
accounts) by reason of a contract made by the Company with the Director or with a firm of which the Director is a member, or a
Company in which the Director has a substantial financial interest, other than as disclosed in the remuneration report below.
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
14. REMUNERATION REPORT (AUDITED)
The full Board currently fulfils the role of a Remuneration Committee in line with a Remuneration Committee Charter and in
accordance with the Company’s adopted remuneration policy.
14.1. Remuneration Policy
This policy governs the operations of the Remuneration Committee. The Committee shall review and reassess the policy at
least annually and obtain the approval of the Board.
a. Executive Remuneration
The Company’s remuneration policy for Executive Directors and senior management is designed to promote superior
performance and long-term commitment to the Company. Executive Directors receive a base remuneration which is
market related, and may be entitled to performance-based remuneration at the ultimate discretion of the Board.
Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect competitive
market and business conditions where it is in the interests of the Company and shareholders to do so.
Executive Directors’ remuneration and other terms of employment are reviewed annually by the Remuneration
Committee having regard to performance, relevant comparative information and expert advice.
The Committee’s reward policy reflects its obligation to align Executive Directors’ remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Company. The main principles of
the policy are:
(i) reward reflects the competitive market in which the Company operates;
(ii) individual reward should be linked to performance criteria; and
(iii) Executive Directors should be rewarded for both financial and non-financial performance.
The total remuneration of executives and other senior managers consists of the following:
(i) salary - Executive Directors and senior managers receive a sum payable monthly in cash;
(ii) bonus - Executive Directors and nominated senior managers are eligible to participate in a bonus or profit
participation plan if deemed appropriate;
(iii) long term incentives - Executive Directors may participate in share option schemes with the prior approval of
shareholders. Executives may also participate in employee share option schemes, with any option issues generally
being made in accordance with thresholds set in plans approved by shareholders. The Board however, considers it
appropriate to retain the flexibility to issue options to executives outside of approved employee option plans in
exceptional circumstances; and
(iv) other benefits - Executive Directors and senior managers are eligible to participate in superannuation schemes and
other appropriate additional benefits.
Remuneration of other executives consists of the following:
(i) salary - senior executives receive a sum payable monthly in cash;
(ii) bonus - each executive is eligible to participate in a bonus or profit participation plan if deemed appropriate;
(iii) long term incentives - each senior executive may, where appropriate, participate in share option schemes which
have been approved by shareholders; and
(iv) other benefits – senior executives are eligible to participate in superannuation schemes and other appropriate
additional benefits.
b. Non-Executive Remuneration
Shareholders approve the maximum aggregate remuneration for Non-Executive Directors. The full Board recommends
the actual payments to Directors and the Board is responsible for ratifying any recommendations, if appropriate. The
maximum aggregate remuneration approved for Non-Executive Directors is currently $300,000.
It is recognised that Non-Executive Directors’ remuneration is ideally structured to exclude equity-based remuneration.
However, whilst the Company remains small and the full Board, including the Non-Executive Directors, are included in
the operations of the Company more closely than may be the case with larger companies, the Non-Executive Directors
are entitled to participate in equity-based remuneration schemes subject to shareholder approval.
All Directors are entitled to have their indemnity insurance paid by the Company.
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
14. REMUNERATION REPORT (AUDITED) (CONTINUED)
14.1. Remuneration Policy (Continued)
c. Bonus or Profit Participation Plan
Performance incentives may be offered to Executive Directors and senior management of the Company through the
operation of a bonus or profit participation plan at the ultimate discretion of the Board.
d. Voting and comments made at the Company's 2019 Annual General Meeting (“AGM”)
At the 2019 AGM, 91.7% of the votes received supported the adoption of the remuneration report for the year ended
30 June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
e. Additional information
The loss of the Group for the four years to 30 June 2020 are summarised below:
Sales revenue
EBITDA
EBIT
Loss after income tax
2020
$
-
2019
$
2018
$
-
-
(1,494,199)
(1,499,978)
(1,499,978)
(2,724,961)
(4,725,945)
(2,730,502)
(4,727,556)
(2,730,502)
(4,727,556)
2017*
$
-
(131,696)
(131,696)
(131,696)
The factors that are considered to affect total shareholders return (TSR) are summarised below:
Share price at financial year end ($)
Total dividends declared (cents per share)
Basic loss per share (cents per share)
2020
2019
2018
2017*
0.007
-
-
0.009
-
(0.6)
0.03
-
(1.7)
N/A
-
N/A
* 30 June 2017 financial information is that of Global Exploration Technologies Pty Ltd as a result of the reverse acquisition
accounting. The years prior to 30 June 2018 are deemed not to be relevant for comparison as the reverse acquisition
occurred during the year ended 30 June 2018 and therefore the Group was engaged in a different scope of business
operations prior to this.
14.2. Details of remuneration
Details of the nature and amount of each element of the emoluments of each of the key management personnel (KMP) of
the Company for the year ended 30 June 2020 are set out in the following tables.
2020
Group KMP
Short-term benefits
Salary, fees
and leave
$
Profit share
and bonuses
$
Non-
monetary
$
Other
Peter Meagher
Simon Jackson
Grant Ferguson1
Shannon Coates2,3
60,000
240,000
161,200
21,136
482,336
-
-
-
-
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
5,700
22,800
-
2,008
30,508
$
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
Other
$
-
-
-
-
-
Equity /
Perf. Rights
$
-
-
-
-
-
$
-
-
-
-
-
Options
$
-
$
65,700
27,090
289,890
37,350
198,550
-
23,144
64,440
577,284
1. Including $131,200 in fees relating to consultancy for the year ended 30 June 2020. (2019: $194,000)
2. Evolution Corporate Services Pty Ltd, an entity related to Ms Coates, received $40,500 in fees relating to company secretarial services for
the period 1 July 2019 to 31 March 2020 (resigned 16 March 2020). (2019: $38,903)
3. Resigned on 16 March 2020.
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
14. REMUNERATION REPORT (AUDITED) (CONTINUED)
14.2. Details of remuneration (Continued)
2019
Group KMP
Peter Meagher
Simon Jackson1
Grant Ferguson
Shannon Coates2
Short-term benefits
Salary, fees
and leave
$
54,795
Profit share
and bonuses
$
-
Non-
monetary
$
-
Other
60,000
224,000
30,000
368,795
-
-
-
-
-
-
-
-
Post-
employment
benefits
Super-
annuation
$
5,205
5,700
-
-
10,905
$
-
-
-
-
-
Long-term
benefits
Termination
benefits
Equity-settled share-
based payments
Total
Other
$
-
-
-
-
-
Equity /
Perf. Rights
$
-
-
-
-
-
$
-
-
-
-
-
Options
$
44,010
2,491
32,846
22,006
$
104,010
68,191
256,846
52,006
101,353
481,053
1. Appointed 6 March 2019. Mr Jackson received $61,875 in consultancy fee prior to his appointment as the Managing Director.
2. Evolution Corporate Services Pty Ltd, an entity related to Ms Coates, received $38,903 in fees relating to company secretarial services for
the year ended 30 June 2020. (2018: $40,000)
14.3. The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Fixed remuneration
Short-term Incentive
Long-term Incentive
Peter Meagher
Simon Jackson
Grant Ferguson
Shannon Coates
2020
100%
91%
81%
100%
2019
58%
96%
87%
58%
2020
2019
-
-
-
-
-
-
-
-
2020
-
9%
19%
-
2019
42%
4%
13%
42%
14.4. Equity instruments disclosure relating to KMP
a. Shareholdings
Number of shares held by Parent Entity Directors and other KMP of the Group, including their personally related
parties, are set out below:
2020
Peter Meagher
Simon Jackson
Grant Ferguson
Shannon Coates2
Balance on
Appointment
No.
Received during
the year as
compensation
No.
Received during
the year on
the exercise of
options
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other changes
during the year
No1
1,000,000
5,000,000
Balance at
end of year/
(Resignation)
No.
2,000,000
5,000,000
800,000
20,266,717
1,000,000
2,001,696
7,800,000
29,268,413
Balance at
start of year
No.
1,000,000
-
19,466,717
1,001,696
21,468,413
1.
2.
Other changes during the year represent shares placement as announced on 9 May 2019 and approved by Shareholders on 26 June 2019. Shares were
issued on 1 July 2019.
Resigned 16 March 2020
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KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
14. REMUNERATION REPORT (AUDITED) (CONTINUED)
14.4. Equity instruments disclosure relating to KMP (Continued)
b. Option holdings
The number of options over ordinary shares in the Company held during the financial year by each Director and other
members of KMP of the Group, including their personally related parties, is set out below:
2020
Peter Meagher
Simon Jackson
Grant Ferguson
Shannon Coates1
Balance at
start of year
No.
4,000,000
Granted as
Compensation
No.
-
Options
Exercised/
lapsed
No.
-
Net Change
Other
No.
-
Balance on
Appointment
No.
-
Balance
at end of
year/(resignation)
No.
4,000,000
Total
Exercisable
No.
4,000,000
Total
at end of
year/(resignation)
No.
4,000,000
8,000,000
18,000,000
3,500,000
33,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,000,000
2,666,667
8,000,000
18,000,000
12,666,667
18,000,000
3,500,000
3,500,000
3,500,000
33,500,000
22,833,334
33,500,000
1.
Resigned 16 March 2020
14.5. Other transactions with KMP and their related parties
a. Receivable from and payable to related parties are as follows:
The following balances were outstanding at the reporting date in relation to transactions with related parties:
Director’s fee payable to The Steele Group1
30 June 2020
$
30 June 2019
$
2,750
-
1 Grant Ferguson is a Director of The Steele Group which has a Contract Services Agreement with the Company.
b. Loans to / from KMP
There were no loans with KMP or their related parties. (2019: Nil)
c. Transactions with Related Parties of KMP
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Evolution Corporate Services Pty Ltd
Evolution Corporate Services Pty Ltd, a company associated with Ms.
Shannon Coates, provides company secretarial services in accordance with
a service agreement.
The Steele Group
30 June 2020
$
30 June 2019
$
40,500
38,903
The Steele Group, a Company where Mr Grant Ferguson is a director,
provides consulting services in accordance with a service agreement.
131,200
194,000
There have been no other transactions in addition to those described in the tables or as detailed in Note 16 Related
Party Transactions.
P a g e | 12
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
14. REMUNERATION REPORT (AUDITED) (CONTINUED)
14.6. Options issued as part of remuneration
During the year, no options were granted to KMP of the Company as remuneration (2019: 22,000,000).
KMP
Number Options
Granted During
the 2019 Year
Grant Date
Fair Value per
Option
Exercise Price
per Option
Expiry Date Number Options
Vested During
the 2019 Year
Number Options
Vested During
the 2020 Year
Peter Meagher
4,000,000
19-11-2018
$0.011
Simon Jackson
8,000,000
29-05-2019
$0.0058
Shannon Coates
2,000,000
19-11-2018
Grant Ferguson
8,000,000
19-11-2018
$0.011
$0.011
$0.045
$0.036
$0.045
$0.045
7-12-2023
4,000,000
-
29-5-2024
-
2,666,667
7-12-2023
2,000,000
-
7-12-2023
-
2,666,667
14.7. Shares issued as part of remuneration
During the year, no shares were granted to KMP of the Company as remuneration.
14.8. Service contracts of KMP
The KMP terms are formalised in service agreements, a summary of which is set out below.
Name
Grant Ferguson
Simon Jackson
Contract Duration
Termination Notice period by
Company
Termination Notice period by Executive
On going
On going
one month
six months
one month
six months
Non-Executive Directors
All Non-Executive Directors were appointed by a letter of appointment.
END OF REMUNERATION REPORT
P a g e | 13
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
INDEMNIFYING OFFICERS
15.
In accordance with the Constitution, except as may be prohibited by the Corporations Act 2001, every Officer of the Company
shall be indemnified out of the property of the Company against any liability incurred by him/her in his/her capacity as officer or
agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in
defending any proceedings, whether civil or criminal.
The Company has entered into Deeds of Indemnity and Access with each of its Directors. Pursuant to the Deeds, the Company
will indemnify each Director to the extent permitted by the Corporations Act against any liability arising as a result of the Director
acting as an officer of the Company. The Company will be required under the Deeds to maintain insurance policies for the benefit
of the relevant Director for the term of the appointment and for a period of 7 years after the relevant Director’s retirement or
resignation.
During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the Company, the
Company Secretaries and all executive officers of the Company and of any related body corporate against a liability incurred as
such a Director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of any liability and the amount of the premium.
16. SHARES
As at the date of this report, there are 642,888,900 fully paid ordinary shares on issue.
17. OPTIONS
At the date of this report, there are 80,000,000 unissued ordinary shares of the Company under option as follows:
Unlisted options
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Date of Expiry
Exercise Price
8 November 2020
7 December 2023
19 November 2023
29 May 2024
$0.06
$0.045
$0.045
$0.036
Number
55,000,000
14,000,000
3,000,000
8,000,000
During the financial year to 30 June 2020, the following Options lapsed unexercised:
30,000,000 options exercisable at $0.0363 each on or before 19 November 2019.
Option holders do not have any rights to participate in new issues of shares or other interests in the Company or any other
entity.
INDEMNITY AND INSURANCE OF AUDITOR
18.
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
P a g e | 14
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' REPORT
19. ENVIRONMENTAL REGULATION
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all
regulations when carrying out any exploration work. The Directors of the Group are not aware of any breach of environmental
regulations for the year under review.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities
to report annual greenhouse gas emissions and energy use. For the first measurement period, the Directors have assessed that
there are no current reporting requirements, but may be required to do so in the future.
20. NON-AUDIT SERVICES
During the year, RSM Australia Partners, the Company’s auditor, provided taxation compliance services, in addition to their
statutory audits. Details of remuneration paid to the auditor can be found within the financial statements at Note 17.
In the event that non-audit services are provided by RSM Australia Partners, the Board has established certain procedures to
ensure that the provision of non-audit services are compatible with, and do not compromise, the auditor independence
requirements of the Corporations Act 2001 (Cth). These procedures include:
non-audit services will be subject to the corporate governance procedures adopted by the Company and will be reviewed
by the Board to ensure they do not impact the integrity and objectivity of the auditor; and
ensuring non-audit services do not involve reviewing or auditing the auditor's own work, acting in a management or decision-
making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards.
21. PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which
the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
22. AUDITORS INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under s.307C of the Corporations Act 2001 (Cth) is set out on page 16.
23. AUDITORS
The auditor, RSM Australia Partners continues in accordance with s.327 of the Corporations Act 2001 (Cth).
This report of the Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of Directors made
pursuant to s.298(2)(a) of the Corporations Act 2001 (Cth).
Simon Jackson
Managing Director
Dated this Monday, 21 September 2020
P a g e | 15
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Kopore Metals Limited for the year ended 30 June 2020, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 21 September 2020
ALASDAIR WHYTE
Partner
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Note
2020
$
2019
$
Other income
1
77,327
35,313
Administration expense
Compliance and regulatory
Consulting and legal
Depreciation and amortisation
Employee benefit expense
Exploration expense
Travel and accommodation
Share based payments
Other expenses
Unrealised gain / (loss) on foreign exchange
Loss before income tax
Income tax expense
Loss from continuing operations
Discontinued Operations
2.1
19
Profit / (loss) from discontinued operations (attributable to equity holders of the
Company)
11
Net profit / (loss) for the year
Other comprehensive income for the year:
Items that may be reclassified subsequently to profit or loss:
◼ Exchange differences on translation of foreign operations
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Total Comprehensive Loss is attributable to:
Equity holders of the Company
Total comprehensive income/(loss) attributable to owners of the Company arises from:
Continuing operations
Discontinuing operations
P a g e | 17
(76,389)
(211,214)
(265,755)
(5,779)
(83,854)
(213,535)
(353,171)
(5,541)
(400,059)
(494,028)
(354,927)
(1,227,423)
(78,252)
(64,440)
(121,164)
674
(153,652)
(101,354)
(131,930)
(1,327)
(1,499,978)
(2,730,502)
-
-
(1,499,978)
(2,730,502)
1,503,219
(522,670)
3,241
(3,253,172)
(36,257)
(59,515)
(36,257)
(59,515)
(33,016)
(3,312,687)
(33,016)
(3,312,687)
(33,016)
(3,312,687)
(1,536,235)
(2,790,017)
1,503,219
(522,670)
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Earnings per share:
Basic loss per share
Basic loss per share from continuing operations
Basic Profit/(loss) per share from discontinued operations
2020
₵
0.00
(0.23)
0.23
18
18
18
2019
₵
(0.59)
(0.50)
(0.10)
The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.
P a g e | 18
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Current assets
Cash and cash equivalents
Other receivables
Other current assets
Total current assets
Non-current assets
Plant and equipment
Mineral exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Note
2020
$
2019
$
5.1
5.2
5.3
6.1
6.2
5.4
1,673,029
1,898,150
51,665
14,186
26,212
24,010
1,738,880
1,948,372
15,291
66,427
81,718
21,071
109,138
130,209
1,820,598
2,078,581
87,378
87,378
456,348
456,348
87,378
456,348
1,733,220
1,622,233
7.1.1
7.3
9,055,837
8,976,274
925,806
998,144
(8,248,423)
(8,352,185)
Capital and reserves attributable to owners of Kopore Metals Limited
1,733,220
1,622,233
Total equity
1,733,220
1,622,233
The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
P a g e | 19
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
d
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Contributed equity
Reserve
Accumulated
Losses
Non
Sub-total
Controlling Interest
$
$
$
$
$
Total
Equity
$
5,755,416
823,134
(5,125,938)
1,452,612
26,925
1,479,537
-
(3,253,172)
(3,253,172)
(59,515)
-
(59,515)
(59,515)
(3,253,172)
(3,312,687)
-
-
-
(3,253,172)
(59,515)
(3,312,687)
Balance at 1 July 2018
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Transactions with owners in their capacity
as owners:
Transfer for non-controlling interest of
disposal of subsidiaries
-
-
-
-
Contributions of equity, net of
transaction costs
7.1.1
3,220,858
Share-based payments – Directors’ and
advisors’ options
19
-
234,525
-
-
3,220,858
234,525
Balance at 30 June 2019
8,976,274
998,144
(8,352,185)
1,622,233
26,925
26,925
(26,925)
-
-
-
Balance at 1 July 2019
Profit for the year
Other comprehensive loss for the year
Total comprehensive loss for the year
Transactions with owners in their capacity
as owners:
Contributions of equity, net of
transaction costs
8,976,274
998,144
(8,352,185)
1,622,233
-
-
-
-
3,241
3,241
(36,257)
(36,257)
-
(36,257)
3,241
(33,016)
7.1.1
79,563
-
-
-
79,563
64,440
Share-based payments – Directors’
options
19
Options expired during the year
7.2.1
-
-
64,440
(100,521)
100,521
-
Balance at 30 June 2020
9,055,837
925,806
(8,248,423)
1,733,220
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
-
-
-
-
-
-
-
-
-
-
-
3,220,858
234,525
1,622,233
1,622,233
3,241
(36,257)
(33,016)
79,563
64,440
-
1,733,220
P a g e | 20
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flow from operating activities
Payments to suppliers & employees
Interest received
Payments for exploration expenditure
Note
2020
$
2019
$
(1,008,760)
(1,397,813)
7,163
34,017
(1,069,491)
(1,635,602)
Net cash outflow from operating activities
5.1.2a
(2,071,088)
(2,999,398)
Cash flow from investing activities:
Proceed from disposal of investments net of costs
Proceed from disposal of subsidiary net of costs
Net cash inflow from investing activities
Cash flow from financing activities:
Proceeds from issue of shares
Cost of capital raising
Net cash inflow from financing activities
Net (decrease) / increase in cash held
Effect of foreign exchange movement on cash
Cash and cash equivalents at the beginning of the year
1,003,285
848,789
1,852,074
-
-
-
10,000
3,660,000
-
(270,621)
10,000
3,389,379
(209,014)
(16,107)
389,981
-
1,898,150
1,508,169
Cash and cash equivalents at the end of year
5.1
1,673,029
1,898,150
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
P a g e | 21
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
In preparing the 2020 financial statements, Kopore Metals Limited has grouped notes into sections under five key categories:
Section A: How the numbers are calculated .........................................................................................................................23
Section B: Risk.......................................................................................................................................................................35
Section C: Group structure ...................................................................................................................................................39
Section D: Unrecognised items .............................................................................................................................................42
Section E: Other Information ................................................................................................................................................43
Significant accounting policies specific to each note are included within that note. Accounting policies that are determined to be
non-significant are not included in the financial statements.
The presentation of the notes to the financial statements has changed from the prior year and is supported by the IASB’s
Disclosure Initiative. As part of this project, the AASB made amendments to AASB 101 Presentation of Financial Statements which
have provided preparers with more flexibility in presenting the information in their financial reports.
The financial report is presented in Australian dollars, except where otherwise stated.
The registered office and principal place of business of the
Company is:
Address:
Suite 5, 62 Ord Street
WEST PERTH WA 6005
+61 (0)8 9322 1587
+61 (0)8 9322 5230
Telephone:
Facsimile:
P a g e | 22
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SECTION A. HOW THE NUMBERS ARE CALCULATED
This section provides additional information about those individual line items in the financial statements that the Directors
consider most relevant in the context of the operations of the entity, including:
(a) accounting policies that are relevant for an understanding of the items recognised in the financial statements. These cover
situations where the accounting standards either allow a choice or do not deal with a particular type of transaction
(b) analysis and sub-totals, including segment information; and
(c)
information about estimates and judgements made in relation to particular items.
NOTE 1
REVENUE AND OTHER INCOME
1.1
From continuing operations:
Interest – unrelated parties
Other income
Total revenue and other income
1.1.1 Accounting Policy
a.
Interest revenue
2020
$
7,163
70,164
77,327
2019
$
34,017
1,296
35,313
Interest revenue is recognised in accordance with Note 3.1 Finance income and expenses.
b. Other income
Other income is recognised when the Group obtains control over the funds, which is at the time of receipt.
All revenue is stated net of the amount of GST (Note 22.4 Goods and Services Tax (GST)).
NOTE 2
LOSS BEFORE INCOME TAX
Loss before income tax has been determined after including the following
expenses:
2.1
Depreciation and amortisation:
2020
$
2019
$
Depreciation and amortisation of plant and equipment
5,779
5,541
2.1.1 Accounting Policy
a. Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave is expected to
be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to
the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
b. Retirement benefit obligations: Defined contribution superannuation funds
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions onto a
separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to
defined contribution superannuation funds are recognised as an expense in the income statement as incurred.
c.
Long service leave
Any liability for employee benefits relating to long service leave represents the present value of the estimated future cash
outflows to be made by the employer resulting from employees' services provided up to the reporting date.
P a g e | 23
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2
LOSS BEFORE INCOME TAX (CONT.)
d. Equity-settled compensation
The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair
value is measured at grant date and spread over the period during which the employees become unconditionally entitled
to the options. The fair value of the options granted is measured using the Black-Scholes pricing model, considering the
terms and conditions upon which the options were granted. The amount recognised is adjusted to reflect the actual number
of share options that vest except where forfeiture is only due to market conditions not being met.
NOTE 3
OTHER SIGNIFICANT ACCOUNTING POLICIES RELATED TO ITEMS OF PROFIT AND LOSS
3.1
Finance income and expenses
Finance income comprises interest income on funds invested (including available-for-sale financial assets), gains on the
disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit
or loss. Interest revenue is recognised on a time proportionate basis that considers the effective yield on the financial
asset.
Financial expenses comprise interest expense on borrowings calculated using the effective interest method, unwinding
of discounts on provisions, changes in the fair value of financial assets at fair value through profit or loss and impairment
losses recognised on financial assets. All borrowing costs are recognised in profit or loss using the effective interest
method
NOTE 4
INCOME TAX
4.1
The prima facie tax on loss from ordinary activities before income tax is
reconciled to the income tax expense as follows:
Loss before income tax
Prima facie tax payable on loss from ordinary activities before income tax
at 30% (2019: 30%)
Capital-raising costs deductible
Non-deductible expenses
Share based payments
Other
Tax effect of discontinued operations
Deferred tax asset not brought to account
Income tax expense
4.2
Deferred tax liability
Exploration and evaluation expenditure – Australia Mining Properties
Temporary differences – Australia
Off-set of deferred tax assets
Net deferred tax liability recognised
2020
$
2019
$
(1,499,978)
(2,730,502)
(449,993)
(819,151)
(40,774)
236,539
19,332
1,447
(52,340)
580,931
40,201
-
450,965
(156,801)
(217,516)
407,160
-
-
-
-
-
-
-
-
-
-
-
-
P a g e | 24
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4
INCOME TAX (CONT.)
4.3
Unrecognised deferred tax assets arising on timing
Tax Losses
Temporary Differences
Capital losses
Off-set of deferred tax liabilities
Net deferred tax assets unrecognised
2020
$
2019
$
2,625,800
2,798,145
67,115
137,571
1,190,849
1,640,850
3,883,764
4,576,566
-
-
3,883,764
4,576,566
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 Group has tax losses of $9,575,265 (2019: $8,380,297) that have the ability to be carried forward indefinitely for offset
against future taxable profits of the Group. The recoupment of available tax losses as at 30 June 2020 are contingent upon the
Group satisfying the following conditions:
deriving future assessable income of a nature and of an amount sufficient to enable the benefit from the losses to be
realised;
the conditions for deductibility imposed by tax legislation continuing to be complied with and the company meeting either
its continuity of ownership test or in the absence of satisfying that test the company can satisfy the same business test; and
there being no changes in tax legislation which would adversely affect the Group from realising the benefits from the losses.
In the event that the Group fails to satisfy these conditions above or the Commissioner of Taxation challenges the Group’s ability
to utilise its losses, the Group may be liable for future income tax on assessable income derived by the Company.
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of
Directors. These estimates consider both the financial performance and position of the Company as they pertain to current
income taxation legislation, and the Directors understanding thereof. No adjustment has been made for pending or future
taxation legislation. The current income tax position represents that Directors' best estimate, pending an assessment by tax
authorities in relevant jurisdictions.
4.4
Accounting Policy
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the
national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused
tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the
deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an
asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or
taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
P a g e | 25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5
FINANCIAL ASSETS AND FINANCIAL LIABILITIES
5.1
Cash and cash equivalents
Cash at bank and on hand
Bank term deposits
Reconciliation of Cash
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Note
2020
$
2019
$
673,029
1,378,150
1,000,000
520,000
1,673,029
1,898,150
Cash at the end of the financial year as shown in the statement of cash
flow is reconciled to items in the consolidated statement of financial
position as follows:
Cash and cash equivalents
1,673,029
1,898,150
5.1.1
The Group’s exposure to interest rate risk is discussed in Note 8.2.4.
5.1.2 Cash Flow Information
a. Reconciliation of cash flow from operations to loss after income tax
Operating loss after income tax
Add / (less) non-cash items:
Depreciation
Gain on disposal of subsidiary
Share-based payments
Foreign exchange differences (unrealised)
Mineral exploration and evaluation assets
Changes in assets and liabilities
Other receivables
Trade and other payables
3,241
(3,253,172)
5,779
11.1.4
(1,885,700)
64,440
(20,150)
42,711
6,155
(287,564)
5,541
-
134,004
(55,303)
(3,195)
84,306
88,421
Net Cash Flow used in Operating Activities
(2,071,088)
(2,999,398)
b. Non-cash financing and investing activities
2020
-
Nil.
2019
-
30,000,000 options issued as capital raising fee.
5.1.3 Accounting Policy
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and
bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
P a g e | 26
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5
FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
5.2
Other receivables
5.2.1 Current
GST refundable
Other receivables
2020
$
15,633
36,032
51,665
2019
$
26,212
-
26,212
5.2.2
The Group’s financial instruments consist mainly of deposits with banks, accounts receivables and payables and loans to
subsidiaries. Risk exposure arising from current receivables is set out in Note 8.
Due to the short-term nature of the current receivables, their carrying amount is assumed to approximate their fair value.
5.2.3
The Group did not recognise any losses in profit or loss in respect of the expected credit losses for the year ended 30
June 2020.
5.2.4 Accounting Policy
Other receivables are generally due for settlement within periods ranging from 15 days to 30 days. Receivables expected
to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables
are classified as non-current assets.
Other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Allowance for expected credit losses of receivables is
continually reviewed and those that are considered to be uncollectible are written off by reducing the carrying amount
directly. An allowance account is used when there is objective evidence that the Group will not be able to collect all
amounts due according to the original contractual terms. Factors considered by the Group in making this determination
include known significant financial difficulties of the debtor, review of financial information and significant delinquency
in making contractual payments to the Group. The allowance is set equal to the difference between the carrying amount
of the receivable and the present value of estimated future cash flows, discounted at the original effective interest rate.
Where receivables are short-term discounting is not applied in determining the allowance.
The amount of the allowance for expected credit losses is recognised in the statement of profit or loss and other
comprehensive income within other expenses. When an other receivable for which an allowance had been recognised
becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of
amounts previously written off are credited against other expenses in the statement of profit or loss and other
comprehensive income.
2020
$
14,186
14,186
2019
$
24,010
24,010
5.3
Other Assets
5.3.1 Current:
Prepayments
P a g e | 27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5
FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
5.4
Trade and other payables
5.4.1 Current:
Unsecured
Trade payables
Other payables and accruals
Share application monies received in advance
Total unsecured liabilities
5.4.2 Accounting Policy
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
2020
$
2019
$
38,631
48,747
-
192,577
195,771
68,000
87,378
456,348
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods and services. Trade creditors and other payables are presented
as current liabilities unless payment is not due within 12 months.
Trade and other payables are classified as financial liabilities. Financial liabilities are measured at amortised cost using
the effective interest method.
5.5
5.5.1
Other Significant Accounting Policies related to Financial Assets and Liabilities
Investments and other financial assets
a. Classification
The Group classifies its financial assets in the following measurement categories:
those to be measured subsequently at fair value (either through OCI or through profit or loss), and
those to be measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual terms of
the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in
equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election
at the time of initial recognition to account for the equity investment at fair value through other comprehensive income
(FVOCI).
The Group reclassifies debt investments when and only when its business model for managing those assets changes.
b. Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits
to purchase or sell the asset. 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.
c. Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVPL are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows
are solely payment of principal and interest.
P a g e | 28
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5
FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
5.5
Other Significant Accounting Policies related to Financial Assets and Liabilities (cont.)
i. Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and
the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies
its debt instruments:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. Interest income from these financial
assets is included in finance income using the effective interest rate method. Any gain or loss arising on
derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign
exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or
loss.
FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income
and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is
derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss
and recognised in other gains/(losses). Interest income from these financial assets is included in finance income
using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses)
and impairment expenses are presented as separate line item in the statement of profit or loss.
FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a
debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within
other gains/(losses) in the period in which it arises.
ii. Equity instruments
The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected
to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to profit or loss following the derecognition of the investment. Dividends from such
investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments
is established.
Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the statement of profit
or loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI
are not reported separately from other changes in fair value.
Impairment
d.
The Group assesses on a forward-looking basis, the expected credit losses associated with its debt instruments carried
at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.
For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime
losses to be recognised from initial recognition of the receivables.
NOTE 6
NON-FINANCIAL ASSETS AND FINANCIAL LIABILITIES
6.1
Plant and equipment
6.1.1 Non-current:
Furniture, fittings and equipment at cost
Less accumulated depreciation
2020
$
594
(429)
165
2019
$
594
(309)
285
P a g e | 29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 6
NON-FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
6.1
Plant and equipment (cont.)
6.1.1 Non-current: (cont.)
Motor vehicles at cost
Less accumulated depreciation
6.1.2 Accounting Policy
a. Recognition and measurement
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
2020
$
27,775
(12,649)
15,126
15,291
2019
$
27,775
(6,989)
20,786
21,071
All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
b. Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive
income during the financial period in which they are incurred.
c. Depreciation
Depreciation on plant and equipment is calculated using the straight-line method to allocate their cost or re-valued
amounts, net of their residual values, over their estimated useful lives, as follows:
Furniture, fittings and equipment
Motor vehicles
5 years
5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
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.
d. Derecognition and disposal
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in
the statement of profit or loss and other comprehensive income.
P a g e | 30
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 6
NON-FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
6.2
Mineral Exploration and Evaluation Assets
6.2.1 Non-current:
Balance at the beginning of the year
Written off during the year
Foreign exchange movements
2020
$
109,138
(35,308)
(7,403)
2019
$
105,943
-
3,195
Balance at the end of the financial year
66,427
109,138
6.2.2 Recoverability of the carrying amount of exploration assets is dependent on the successful exploration of the areas of
interest.
6.2.3 Key Estimate – Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to
impairment of assets and in particular exploration assets. Where an impairment trigger exists, the recoverable amount
of the asset is determined and is dependent upon the ability of the Group to successfully continue exploration of all areas
of interest and satisfy the requirements under AASB 6.
Specifically, the Company has reviewed its exploration tenements with regard to AASB 6 and have determined that:
the period for which the Group has the right to explore in the exploration tenements has not expired during the
period or will not expire in the near future, and is expected to be renewed;
substantive expenditure on further exploration for and evaluation of mineral resources in the exploration tenements
is planned;
exploration will be ongoing for some time and as such it is far too early to state that a discovery of commercially
viable quantities of mineral resources has not occurred; and
as the exploration is still ongoing, there is no sufficient data to conclude that the carrying amount of the exploration
and evaluation asset is unlikely to be recovered.
6.2.4
Key Judgments – Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current. These costs
are carried forward in respect of an area that has not at reporting date reached a stage that permits reasonable
assessment of the existence of economically recoverable reserves, refer to the accounting policy stated below. The
carrying value of capitalised expenditure at reporting date is $66,427 (2019: $109,138).
During the financial year, the Group undertook assessment of its tenement assets. As a result of this assessment, the
Group decided that no impairment of its exploration assets was necessary.
6.2.5 Accounting Policy
a. Exploration and evaluation expenditure
Exploration and evaluation project acquisition costs incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
Ongoing exploration and evaluation expenditures are expensed as incurred.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of
the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
b.
Impairment of exploration and evaluation assets
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively sale, of the respective area of interest.
P a g e | 31
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 6
NON-FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT.)
6.3
Other Significant Accounting Policies related to Non-Financial Assets and Liabilities
6.3.1
Impairment of non-financial assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating
units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each
reporting date.
NOTE 7
EQUITY
7.1
Issued capital
Fully paid ordinary shares at no par
value
7.1.1 Ordinary shares
Note
2020
No.
2019
No.
2020
$
2019
$
7.1.1
642,888,900
634,776,400
9,055,837
8,976,274
At the beginning of the year
634,776,400
435,776,400
8,976,274
5,755,416
Shares issued during the year:
Placement @ $0.025 per share
-
106,800,000
-
2,670,000
Placement @ $0.01 per share
7,800,000
92,200,000
78,000
922,000
Shares issued @ $0.005 per
share
312,500
Transaction costs relating to share
issues:
Share-based payments
(Options)
Share issue costs – Cash-based
-
-
-
-
-
1,563
-
-
-
(100,521)
(270,621)
At end of the year
642,888,900
634,776,400
9,055,837
8,976,274
Total contributions of equity net of transaction costs is $79,563 for the year ended 30 June 2020 (2019: $3,220,858).
7.1.2
Terms and Conditions
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number
of shares held. At shareholders meetings each ordinary share is entitled to one vote when a poll is called otherwise each
shareholder has one vote on a show of hands.
7.1.3 Accounting Policy
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new
shares or options, or for the acquisition of a business, are not included in the cost of the acquisition as part of the purchase
consideration.
P a g e | 32
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7
EQUITY (CONT.)
7.2
Options
For information relating to the share-based payment plan, including details of options issued and/or lapsed during the
financial year, and the options outstanding at balance date, refer to Note 19 Share-based Payments. The total number of
options on issue are as follows:
Note
2020
No.
2019
No.
2020
$
2019
$
7.2.1 Unlisted options
At the beginning of the year
110,000,000
55,029,250
1,059,524
825,000
19.1.2
19.1.1
19.1.1
19.1.1
Options issued during the year:
Issued to Broker – Ex. Date:
19.11.19 Ex. Price: $0.0363
Issued to Directors – Ex. Date:
7.12.23 Ex. Price: $0.045
Issued to Consultants – Ex.
Date: 19.11.23 Ex. Price: 0.045
Issued to Directors – Ex. Date:
29.05.24 Ex. Price: $0.036
Expired unexercised – Ex. Date:
16.07.18 Ex. Price: $2.92
Expired unexercised –Ex. Date:
9.03.19 Ex. Price: $7.60
Expired unexercised – Ex. Date:
19.11.19 Ex. Price: $0.0363
Amortisation of options issued
to directors – Note 19
-
-
-
-
-
-
30,000,000
14,000,000
3,000,000
8,000,000
(21,750)
(7,500)
-
-
-
-
-
-
(30,000,000)
-
-
-
(100,521)
64,440
100,521
98,862
32,650
2,491
-
-
-
-
At end of the year
80,000,000
110,000,000
1,023,443
1,059,524
P a g e | 33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7
EQUITY (CONT.)
7.3
Reserves
Foreign currency translation reserve
Share-based payment reserve
7.3.1
Foreign currency translation reserve
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Note
7.3.1
7.3.2
2020
$
2019
$
(97,638)
(61,381)
1,023,444
1,059,525
925,806
998,144
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
Balance at beginning of the year
Change in reserve
Balance at end of the year
2020
$
(61,381)
2019
$
(1,866)
(36,257)
(59,515)
(97,638)
(61,381)
7.3.2 Share-based payment reserve (formerly Option reserve)
The share-based payment reserve records the value of options issued to Directors, employees or consultants.
Balance at beginning of the year
Options issued
Amortisation of options issued to directors in 30 June 2019 financial
year
Options expired
Balance at end of the year
2020
$
2019
$
1,059,525
825,000
-
234,525
64,440
(100,521)
-
-
1,023,444
1,059,525
P a g e | 34
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SECTION B. RISK
This section of the notes discusses the Group’s exposure to various risks and shows how these could affect the Group’s
financial position and performance.
NOTE 8
FINANCIAL RISK MANAGEMENT
8.1
Financial Risk Management Policies
The Group’s financial instruments consist mainly of deposits with banks, short-term investments, and accounts
receivables and payables, loans to subsidiaries. The Group does not speculate in the trading of derivative instruments.
Risk management has focused on limiting liabilities to a level which could be extinguished by sale of assets if necessary.
The Group's activities expose it to a variety of financial risks; market risk (including fair value interest rate risk and price
risk), credit risk, liquidity risk and cash flow interest rate risk. The Group's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of
the Group. The Group is engaged in mineral exploration and evaluation, and does not currently sell product and derives
only limited revenue from interest earned.
Risk management is carried out by the Board as a whole and no formal risk management policy has been adopted but is
in the process of development.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Other receivables
Financial liabilities
Trade and other payables
Net financial instruments
Specific Financial Risk Exposures and Management
8.2
8.2.1 Market risk
a. Foreign exchange risk
2020
$
2019
$
1,673,029
1,898,150
51,665
26,212
1,724,694
1,924,362
87,378
87,378
456,348
456,348
1,637,316
1,468,014
Foreign exchange risk arises from future commitments, assets and liabilities that are denominated in a currency that
is not the functional currency of the Group being Namibian dollar and Botswana Pula. Currently there are no foreign
exchange programs in place. The Group treasury function manages the purchase of foreign currency to meet
operational requirements. The impact of reasonably possible changes in foreign exchange rates for the Group has the
potential to be material. The Group monitors this risk on a regular basis.
b. Price risk
The Group is not exposed to securities price risk on investments held for trading or for medium to longer term as no
such investments are currently held.
8.2.2 Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in
the statement of financial position and notes to the financial statements. The Group does not have any material credit
risk exposure to any single receivable or group of receivables.
The Group applies simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance
for all receivables and contract assets.
Credit risk related to balances with banks and other financial institutions is managed by the Directors in accordance with
approved Company policy.
P a g e | 35
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 8
FINANCIAL RISK MANAGEMENT (CONT.)
8.2
Specific Financial Risk Exposures and Management (cont.)
8.2.3
Liquidity risk
Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due. The objective of
the Group is to maintain sufficient liquidity to meet commitments under normal and stressed conditions.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, and the availability of
funding through an adequate amount of committed credit facilities. Due to the lack of material revenue, the Group aims
at maintaining flexibility in funding by maintaining adequate reserves of liquidity.
The Group did not have access to any undrawn borrowing facilities at the reporting date.
All liabilities are current and will be repaid in normal trading terms.
a. Contractual Maturities
The following are the contractual maturities of financial assets and liabilities of the Group:
Within 1 Year
Greater Than 1 Year
2020
$
2019
$
2020
$
2019
$
Total
2020
$
2019
$
Financial liabilities due for payment
Trade and other payables
87,378
456,348
Total contractual outflows
87,378
456,348
Financial assets
Cash and cash equivalents
Other receivables
1,673,029
51,665
1,898,150
26,212
Total anticipated inflows
1,724,694
1,924,362
Net (outflow)/inflow on financial
instruments
1,637,316
1,468,014
-
-
-
-
-
-
-
-
-
-
-
-
87,378
456,348
87,378
456,348
1,673,029
51,665
1,898,150
26,212
1,724,694
1,924,362
1,637,316
1,468,014
It is not expected that the cash flows included in the maturity analysis could occur significantly later or at significantly
different amounts.
8.2.4 Cash flow and interest rate risk
From time to time the Group has significant interest-bearing assets, but they are as a result of the timing of equity raising
and capital expenditure rather than a reliance on interest income. The interest rate risk arises on the rise and fall of
interest rates. The Group’s income and operating cash flows are not expected to be materially exposed to changes in
market interest rates in the future and the exposure to interest rates is limited to the cash and cash equivalents balances.
As such, this is not considered a material exposure and no sensitivity analysis has been prepared.
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rates on classes of financial assets and
financial liabilities, is below.
P a g e | 36
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 8
FINANCIAL RISK MANAGEMENT (CONT.)
2020
Financial assets
Cash and cash equivalents
Other receivables
Weighted average interest rate
Financial Liabilities
Trade and other payables
2019
Financial assets
Cash and cash equivalents
Other receivables
Weighted average interest rate
Financial Liabilities
Trade and other payables
Floating interest
rate
$
Fixed interest
maturing in 1 year
or less
$
Non-interest
bearing
$
Total
$
673,029
1,000,000
-
1,673,029
-
-
673,029
1,000,000
1.08%
0.9%
-
-
-
-
51,665
51,665
N/A
87,378
87,378
Floating interest
rate
$
Fixed interest
maturing in 1 year
or less
$
Non-interest
bearing
$
51,665
1,724,694
87,378
87,378
Total
$
1,378,150
520,000
-
1,898,150
-
-
1,378,150
520,000
0.87%
2.40%
-
-
-
-
26,212
26,212
N/A
456,348
456,348
26,212
1,924,362
456,348
456,348
8.2.5 Net fair value of Financial Assets and Liabilities
The net fair value of cash and cash equivalents and non-interest bearing monetary assets and financial liabilities
approximates their carrying values.
a. Fair value hierarchy
AASB 13 Fair Value Measurement: Disclosures requires disclosure of the fair value measurements by level of the
following fair value measurement hierarchy:
Level 1 - quoted prices (unadjusted) in active markets for identical assets and 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)
All financial assets are classified as Level 1 and their value has been calculated in line with accounting policy note 22.8
Fair Value.
P a g e | 37
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 9
CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that they may
continue to provide returns for shareholders and benefits for other stakeholders. The capital structure of the Group consists of equity
attributable to equity holders of the parent comprising issued capital, reserves and accumulative losses.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with
the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current
working capital position against the requirements of the Group to meet exploration programs and corporate overheads. The Group’s
strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required.
The Group is not subject to any externally imposed capital requirements.
The working capital position of the Group at 30 June 2020 and 30 June 2019 is as follows:
Cash and cash equivalents
Other receivables
Trade and other payables
Working capital position
Note
5.1
5.2
5.4
2020
$
2019
$
1,673,029
1,898,150
51,665
(87,378)
26,212
(456,348)
1,637,316
1,468,014
P a g e | 38
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SECTION C. GROUP STRUCTURE
This section provides information which will help users understand how the Group structure affects the financial
position and performance of the Group as a whole. In particular, there is information about:
(a) changes to the structure that occurred during the year as a result of business combinations and the disposal of a
discontinued operation
(b) transactions with non-controlling interests, and
(c)
interests in joint operations.
A list of significant subsidiaries is provided in Note 10.
NOTE 10
INTEREST IN SUBSIDIARIES
Shares in controlled entities are unlisted and comprise:
Alvis-Crest Holdings (Pty) Ltd
Ashmead Holdings (Pty) Ltd
Icon-Trading Company (Pty) Ltd
Global Exploration Technologies Pty Ltd
Trans-Kalahari Copper Namibia (Pty) Ltd1
Kopore (WA) Pty Ltd
Country of Incorporation
Botswana
Botswana
Botswana
Australia
Namibia
Australia
Percentage Owned
2020
100
100
100
100
-
100
2019
100
100
100
100
100
100
1 Trans-Kalahari Copper Namibia (Pty) Ltd ceased being subsidiary on 27 May 2020, refer note 11.1.
Investments in subsidiaries are accounted for at cost and have been written down to nil.
The Group has no equity accounted investments at 30 June 2020 (2019: Nil)
P a g e | 39
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11 DISCONTINUED OPERATIONS
11.1 Sale of Trans-Kalahari Copper Namibia (Pty) Ltd (TKC)
On 27 May 2020, the Company completed a Share Sale Agreement (SSA) to sell its entire equity in TKC. Comparative
balances in the Statement of Profit or Loss and Other Comprehensive income have been adjusted for this disposal.
Operating results of the business are not included in operating segment disclosed in note 20 Segment Reporting.
Financial information relating to the discontinued operation to the date of sale is set out below
11.1.1 The financial performance of the discontinued operation to the date of
sale, which is included in the profit/(loss) from the discontinued
operations per the statement of comprehensive income, is as follows:
Revenue and other income
Expenses
Loss before income tax
Income tax expense
Loss after income tax of discontinued operation
Gain on sale of the subsidiary after income tax
Profit / (loss) from discontinued operation
2020
$
-
2019
$
-
(382,482)
(382,482)
(522,670)
(522,670)
-
-
(382,482)
(522,670)
1,885,701
-
1,503,219
(522,670)
11.1.2 The net cash flows of the discontinued operation of the discontinued
operation, which have been incorporated into the statement of cash
flows, are as follows:
Net cash inflow/(outflow) from operating activities
Net cash inflow/(outflow) from investing activities
Net cash inflow/(outflow) from financing activities
(406,231)
(476,765)
-
-
-
-
Net cash flow generated by the discontinued operations
(406,231)
(476,765)
Profit on disposal of the operation is included in discontinued operations
per the statement of profit and loss and comprehensive income.
11.1.3 Carrying amounts of assets and liabilities disposed:
Cash and cash equivalents
Trade and other receivables
Total assets
Trade and other payables
Total liabilities
Net liabilities
668
40,650
41,318
52,486
52,486
(11,168)
-
-
-
-
-
P a g e | 40
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11
11.1.4 Details of the disposal
DISCONTINUED OPERATIONS (CONT.)
Sales consideration - cash
Sales consideration – shares at fair value
Carrying amount of net assets disposed
Disposal costs
Gain on disposal before income tax
Gain on disposal after income tax
2020
$
2019
$
1,000,000
1,036,226
11,168
(161,693)
1,885,701
1,885,701
-
-
-
-
-
-
P a g e | 41
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SECTION D. UNRECOGNISED ITEMS
This section of the notes includes other information that must be disclosed to comply with the accounting standards
and other pronouncements, but that is not immediately related to individual line items in the financial statements.
NOTE 12
COMMITMENTS
12.1 Operating expenditure commitments payable:
Within one year
After one year but not more than five years
After five years
2020
$
292,379
608,419
-
2019
$
742,112
459,000
-
Total Exploration tenement minimum expenditure requirements
900,798
1,201,112
The commitments of the Group above are the same as those for Kopore Metals Limited.
The Group has halted all exploration activities in Botswana due to significant lock down protocols as a result of the
COVID-19 pandemic. As at the date of this report, the Company is assessing the re-commencement of exploration
activities in Botswana as that country removes a number of COVID-19 related restrictions.
NOTE 13
CONTINGENT ASSETS AND LIABILITIES
13.1
Virgo Licence Acquisition
In accordance with the agreement between Kopore Metals Limited, Alvis Crest (Proprietary) Limited and Virgo Business
Solutions CO (Virgo).
To issue fully paid shares in the Company to Virgo with a deemed value of A$650,000 (with the deemed issue price
being the higher of $0.04 or the 30-day VWAP of the shares at the date of the Announcement, as defined below upon
satisfaction of the following performance-based milestones:
(i) First announcement by the Company of a JORC Code 2012 Compliant Measured or Indicated Mineral Resource,
on any of the licences, of greater than 1 million tonnes of contained copper at a grade of greater than 1.2%.
13.2
Contingent liabilities
The Directors are not aware of any other contingent liabilities that may have arisen from the Groups operations as at 30
June 2020.
NOTE 14
EVENTS SUBSEQUENT TO REPORTING DATE
There were no other significant events after the end of the reporting year.
P a g e | 42
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
SECTION E. OTHER INFORMATION
This section of the notes includes other information that must be disclosed to comply with the accounting standards
and other pronouncements, but that is not immediately related to individual line items in the financial statements.
NOTE 15 KEY MANAGEMENT PERSONNEL COMPENSATION
Short term employee benefits
Post-employment benefits
Share based payments
NOTE 16 RELATED PARTY TRANSACTIONS
16.1
KMP and related party transactions
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties unless
otherwise stated.
Evolution Corporate Services Pty Ltd
Evolution Corporate Services Pty Ltd, a company associated with Ms.
Shannon Coates, provides company secretarial services in accordance with
a service agreement.
The Steele Group
2020
$
482,336
30,508
64,440
577,284
2020
$
2019
$
368,795
10,905
101,353
481,053
2019
$
40,500
38,903
The Steele Group, a Company where Mr Grant Ferguson is a director,
provides consulting services in accordance with a service agreement.
131,200
194,000
16.2
KMP and related party balances
a. Contained within other creditors and accruals are the following
accruals for fees payable to KMP:
The Steele Group, a Company where Mr Grant Ferguson is a
director
Evolution Corporate Services Pty Ltd, a company associated with
Ms. Shannon Coates
Ms. Shannon Coates
2,750
-
-
-
4,950
2,500
There are no other related party transactions other than those payments to Directors as disclosed in the remuneration report.
NOTE 17 AUDITOR’S REMUNERATION
Remuneration of the auditors, RSM Australia Partners, for:
Auditing or reviewing the accounts
Tax services
2020
$
32,500
9,100
41,600
2019
$
30,000
9,000
39,000
P a g e | 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18
LOSS PER SHARE
18.1
Reconciliation of loss to profit or loss
Loss for the year
Loss used in the calculation of basic and diluted loss per share
18.2
Reconciliation of loss to profit or loss from continuing operations
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
2020
$
3,241
3,241
2019
$
(3,253,172)
(3,253,172)
Loss for the year from continuing operations
(1,499,978)
(2,730,502)
Loss used in the calculation of basic and diluted EPS continuing operations
(1,499,978)
(2,730,502)
18.3
Reconciliation of loss to profit or loss from discontinued operations
Profit/(loss) for the year from discontinued operations
1,503,219
(522,670)
Profit/(loss) used in the calculation of basic and diluted EPS discontinued
operations
1,503,219
(522,670)
2020
No.
2019
No.
18.4 Weighted average number of ordinary shares outstanding during the year
used in calculation of basic loss per share
642,585,818
547,479,696
18.5
The Group does not report diluted earnings per share where options would not result in the issue of ordinary shares for less
than the average market price during the period (out of the money). In addition, the Group does not report diluted earnings per
share on annual losses generated by the Group. At the end of the 2020 financial year, the Group had no unissued shares under
options that were out of the money which are anti-dilutive (2019: nil).
18.6
Accounting Policy
18.6.1 Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year.
18.6.2 Diluted earnings per share
Potential shares as a result of options outstanding at the end of the year are not dilutive and therefore have not been
included in the calculation of diluted earnings per share.
NOTE 19 SHARE-BASED PAYMENTS
The following share-based payment arrangements were entered into during the
period:
Unlisted options issued to consultants in lieu of services
Unlisted options issued to Directors
Amortisation of options issued to Directors in 30 June 2019 financial year
Total shares-based payments included in statement of profit or loss and other
comprehensive income.
Unlisted options issued to advisers in lieu of services
Total share-based payments included in statement of financial position as capital
raising costs.
Total share-based payments recognised in reserves is $64,440 (2019: $234,525)
2020
$
-
-
64,440
2019
$
32,650
101,354
-
64,440
134,004
-
-
100,521
100,521
P a g e | 44
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 19
Share-based payments (cont.)
Share-based payment arrangements in effect during prior year
19.1
19.1.1 Share-based payments recognised in profit and loss
i. Consultant Options
In consideration for services, the Company has issued 3,000,000 Options on 7 December 2018 with terms and summaries
below:
Number of Options
3,000,000(1)
Date of Expiry
19/11/2023
Exercise Price
$0.045
(1) Unquoted options issued to the consultant in lieu of services provided were valued at Nil (2019: $32,650).
ii. Director Options
Following shareholder approval, the Company issued 14,000,000 Options to Directors on 7 December 2018, on the
following terms:
Number of Options
Date of Expiry
Exercise Price
6,000,000(1)
8,000,000(2)
7/12/2023
7/12/2023
$0.045
$0.045
(1) Unquoted options issued to the Directors were valued at nil (2019: $66,016) and had no vesting conditions.
(2) Unquoted option issued to the Director were valued at $37,350 (2019: $32,846) and had the following vesting conditions:
a. 1/3 of options issued vest 12 months after the date of issue
b. 1/3 of options issued vest 24 months after the date of issue
c. 1/3 of options issued vest 36 months after the date of issue
iii. Director Options
Following shareholder approval, the Company issued 8,000,000 Options to a Director on 29 May 2019, on the following
terms:
Number of Options
8,000,000(1)
Date of Expiry
29/05/2024
Exercise Price
$0.036
(1) Unquoted option issued to the Managing Director were valued at $27,090 (2019: $2,491) and had the following vesting
conditions:
a. 1/3 of options issued vest on 29 May 2020
b. 1/3 of options issued vest on 29 May 2021
c. 1/3 of options issued vest on 29 May 2022
19.1.2 Share-based payments recognised in capital raising costs
i.
Broker Options
In consideration for services provided by the lead manager for the $2.67m raise, the Company issued 30,000,000 Options on 7
December 2018 on the following terms:
Number of Options
30,000,000(1)
Date of Expiry
19/11/2019
Exercise Price
$0.0363
(1) Unquoted options issued to the lead manager in lieu of services provided were valued at nil (2019: $100,521).
P a g e | 45
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 19
Share-based payments (cont.)
19.2
Fair value of options grants during the year
No options were issued or granted during the year.
The fair value of the options granted during the year ended 30 June 2019 were calculated using the Black-Scholes option
pricing model, applying the following inputs to options issued:
Grant date:
Grant date share price:
Option exercise price:
19/11/2018
19/11/2018
19/11/2018
29/05/2018
$0.017
$0.045
$0.017
$0.045
$0.017
$0.0363
$0.010
$0.036
Number of options issued:
3,000,000
14,000,000
30,000,000
8,000,000
Term (years):
Expected share price volatility:
Risk-free interest rate:
Value per option
5
104%
2.29%
5.10
104%
2.29%
1
104%
2.02%
5
104%
1.17%
$0.0109
$0.0110
$0.0034
$0.0058
The expected life of the option is based on historical data and is not necessarily indicative of exercise patterns that may
occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may
also not necessarily be the actual outcomes.
19.2.1 Accounting Policy
The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments,
whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined by using a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the
price of the shares of Kopore (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully
entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each balance date until vesting date reflects (i) the extent
to which the vesting period has expired and (ii) the Group’s best estimate of the number of equity instruments that will
ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these
conditions is included in the determination of fair value at grant date. The statement of profit or loss and other comprehensive
income charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end
of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a
market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based
payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
P a g e | 46
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 19
Share-based payments (cont.)
19.3 Movement in share-based payment arrangements during the year
A summary of the movements of all company options issued as share-based payments is as follows:
2020
2019
Number of Options
Weighted Average
Exercise Price
(cents)
Number of Options
Weighted Average
Exercise Price
(cents)
Outstanding at the beginning of the year
110,000,000
4.9
55,029,250
Kopore options on acquisition
Granted – in lieu of creditors and Directors’
fees
Granted – capital raising costs
Expired
Outstanding at year-end
Exercisable at year-end
-
-
(30,000,000)
80,000,000
64,000,000
-
-
3.6
5.4
5.8
-
25,000,000
30,000,000
6.2
-
4.2
1.0
(29,250)
526.0
110,000,000
94,000,000
4.9
5.1
i. No share-based payment options were exercised during the year.
ii. The weighted average remaining contractual life of share-based payment options outstanding at year end was 1.37
years (2019: 1.83 years).
NOTE 20
SEGMENT REPORTING
20.1
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of
Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of business category and geographical areas. Operating segments are therefore
determined on the same basis.
Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar
economic characteristics. The Group considers that it has only operated in one segment, being the exploration business.
20.2
Basis of accounting for purposes of reporting by operating segments
20.2.1 Accounting policies adopted
The accounting policies used by the Group in reporting segments are in accordance with the measurement principles of
Australian Accounting Standards.
20.2.2
Inter-segment transactions
All such transactions are eliminated on consolidation of the Group's financial statements.
Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of
transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to fair
value based on market interest rates. This policy represents a departure from that applied to the statutory financial statements.
20.2.3 Segment assets
During the year ended 30 June 2020 and 30 June 2019, all assets were in the same business segment, which is the Group’s
exploration business.
P a g e | 47
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 20
SEGMENT REPORTING (CONT.)
20.2.4 Segment liabilities
During the year ended 30 June 2020 and 30 June 2019, all liabilities were in the same business segment, which is the
Group’s exploration business.
20.3
Revenue by geographical region
There is no revenue attributable to external customers for the year ended 30 June 2020 and 30 June 2019.
20.4
Assets by geographical region
During the year ended 30 June 2020 and 30 June 2019, all reportable segment assets are located in Africa, with the
Group’s financial assets located in Africa and Australia.
NOTE 21 PARENT ENTITY DISCLOSURES
21.1
Financial Position of Kopore Metals Limited
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
21.2
Financial Performance of Kopore Metals Limited
Loss for the year
Total comprehensive loss
21.3 Guarantees entered into by Kopore Metals Limited
2020
$
2019
$
1,694,741
1,794,737
39,333
-
1,734,074
1,794,737
77,124
204,568
-
-
77,124
204,568
1,656,950
1,590,169
30,516,789
30,437,226
5,933,894
5,969,975
(34,793,733)
(34,817,032)
1,656,950
1,590,169
(194,223)
(3,260,454)
(194,223)
(3,260,454)
There are no guarantees entered into by Kopore Metals Limited for the debts of its subsidiaries as at 30 June 2020 (2019:
none).
21.4
Contingent liabilities of Kopore Metals Limited
The contingent liabilities of Kopore Metals Limited are the same as those for the Group disclosed in Note 13.
21.5
Commitments of Kopore Metals Limited
The commitments of Kopore Metals Limited are the same as those for the Group disclosed in Note 12.
P a g e | 48
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 22
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements
to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the
years presented, unless otherwise stated.
Basis of preparation
22.1
22.1.1 Reporting Entity
Kopore Metals Limited is a listed public company limited by shares, domiciled and incorporated in Australia. The Company’s
registered office is at Suite 5, 62 Ord Street, West Perth, Western Australia. These are the consolidated financial statements
and notes of Kopore Metals Limited (the Company) and controlled entities (collectively the Group). The financial statements
comprise the consolidated financial statements of the Group. For the purposes of preparing the consolidated financial
statements, the Company is a for-profit entity. The Group is a for-profit entity and is primarily involved in the exploration,
development and mining of minerals.
The separate financial statements of Kopore Metals Limited, as the parent entity, have not been presented with this financial
report as permitted by the Corporations Act 2001 (Cth).
22.1.2 Basis of accounting
These financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board (AAS Board) and
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and the
Corporations Act 2001 (Cth).
Australian Accounting Standards (AASBs) set out accounting policies that the AAS Board has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions to which they apply.
Compliance with AASBs ensures that the financial statements and notes also comply with IFRS as issued by the IASB.
The financial statements were authorised for issue on 21 September 2020 by the Directors of the Company.
22.1.3 Comparative Figures
Where required by AASBs comparative figures have been adjusted to conform to changes in presentation for the current
financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its
financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in
addition to the minimum comparative financial statements is presented.
22.2
Principles of Consolidation
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial
statements as well as their results for the year then ended. Where controlled entities have entered (left) the Group during
the year, their operating results have been included (excluded) from the date control was obtained (ceased).
22.2.1 Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the parent, Kopore Metals Limited,
and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to,
or has right to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. A list of the subsidiaries is provided in Note 10.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the
date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control
ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are fully
eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary
to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as non-controlling interests.
The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled
to a proportionate share of the subsidiary's net assets on liquidation at either fair value or at the non-controlling interests'
proportionate share of the subsidiary's net assets. Subsequent to initial recognition, non-controlling interests are attributed
their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown
separately within the equity section of the statement of financial position and statement of comprehensive income.
P a g e | 49
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 22
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
22.3
Discontinued operations
A discontinued operation is a component of the consolidated entity that has been disposed of or is classified as held for
sale and that represents a separate major line of business or geographical area of operations, is part of a single co-
ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a
view to resale. The results of discontinued operations are presented separately on the face of the statement of profit or
loss and other comprehensive income.
22.4 Goods and Services Tax (GST)
Goods and Services Tax (GST) is the generic term for the broad-based consumption taxes that the Group is exposed to
such as: Australia (Goods and Services Tax or GST) and in Botswana and Namibia (Value-added tax or VAT), hereafter
collectively referred to as GST.
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the consolidated
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
22.5
Foreign currency translation
The financial statements are presented in Australian dollars, which is Kopore Metals Limited's functional and presentation
currency.
22.5.1 Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
22.5.2 Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the
reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign
exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
P a g e | 50
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 22
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
22.6
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held
primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
22.7
Use of estimates and judgments
The preparation of consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
These estimates and associated assumptions are based on historical experience and various factors that are believed to
be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates.
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 and in any future periods affected.
Judgements made by management in the application of AASBs that have significant effect on the consolidated financial
statements and estimates with a significant risk of material adjustment in the next year are discussed in 22.7.1.
22.7.1 Critical Accounting Estimates and Judgements
Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group
makes assumptions concerning the future. All judgements, estimates and assumptions made are believed to be
reasonable based on the most current set of circumstances available to management. The resulting accounting estimates
will, by definition, seldom equal the related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts and assets and liabilities within the next financial
year are discussed further at Note 6.2.3.
22.7.2 Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the consolidated entity based on known information. This consideration extends to the nature of the supply
chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific
notes, there does not currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
P a g e | 51
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 22
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fair Value
22.8
22.8.1 Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending
on the requirements of the applicable AASB.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly
unforced transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to
determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset
or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market
data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the
market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the
most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the
receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account
transaction costs and transport costs).
For non-financial assets, the fair value measurement also considers a market participant's ability to use the asset in its
highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this
information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective
note to the financial statements.
22.8.2 Fair value hierarchy
AASB 13 Fair Value Measurement requires the disclosure of fair value information by level of the fair value hierarchy,
which categorises fair value measurements into one of three possible levels based on the lowest level that an input that
is significant to the measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements based on quoted prices
(unadjusted) in active markets for identical
assets or liabilities that the entity can
access at the measurement date.
Measurements based on inputs other than
quoted prices included in Level 1 that are
observable for the asset or liability, either
directly or indirectly.
Measurements based on unobservable
inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all
significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more
significant inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy
(i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances
occurred.
P a g e | 52
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Note 22
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
22.8
Fair Value (cont.)
22.8.2 Fair value hierarchy (cont.)
iii. Valuation techniques
The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available
to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of
the asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of
the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated by market transactions
for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing the
asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to
those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that
are developed using market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable,
whereas inputs for which market data is not available and therefore are developed using the best information available
about such assumptions are considered unobservable.
22.9
Accounting Standards that are mandatorily effective for the current reporting period
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (the AASB) that are relevant to its operations and effective for the current reporting period.
New and revised Standards and amendments thereof and Interpretations effective for the current period that are
relevant to the Group include:
a. AASB 16: Leases
AASB 16 removes the classification of leases as either operating leases or finance leases for the lessee effectively treating
all leases as finance leases. Short term leases (less than 12 months) and leases of a low value are exempt from the lease
accounting requirements. Lessor accounting remains similar to current practice.
Impact of adoption:
AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated.
During the year ended 30 June 2020, the Group has adopted the practical expedient for short-term leases. As such, there
was no impact to the consolidated financial report.
22.10 New Accounting Standards and Interpretations not yet mandatory or early adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2020
reporting periods and have not been early adopted by the Group. These standards are not expected to have a material
impact on the entity in the current or future reporting periods and on foreseeable future transactions.
P a g e | 53
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
DIRECTORS' DECLARATION
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages 17 to 53, are in accordance with the Corporations Act 2001 (Cth) and:
(a) comply with Accounting Standards;
(b) are in accordance with International Financial Reporting Standards issued by the International Accounting Standards
Board, as stated in notes to the financial statements; and
(c) give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended on that
date of the Company and Group.
(d) the Directors have been given the declarations required by s.295(5)(a) of the Corporations Act 2001 (Cth);
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.
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:
Simon Jackson
Managing Director
Dated this Monday, 21 September 2020
P a g e | 54
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
KOPORE METALS LIMITED
Opinion
We have audited the financial report of Kopore Metals 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 statements, including a
summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(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 then ended; 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 auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We 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.
Key Audit Matter
How our audit addressed this matter
Disposal of Trans-Kalahari Copper Namibia (Pty) Ltd
Refer to Note 11 and the statement of profit or loss and other comprehensive income.
On 27 May 2020, the Company completed a Share
Sale Agreement resulting in the loss of control on
disposal of its subsidiary, Trans-Kalahari Copper
Namibia (Pty) Ltd. Accordingly Trans-Kalahari Copper
Namibia (Pty) Ltd was deconsolidated in accordance
with AASB 10 Consolidated Financial Statements as
of 27 May 2020.
Our audit procedures included:
• Reviewing
the Share Sale Agreement
to
understand the terms of the transaction, the
consideration received and related accounting
issues;
• Evaluating management’s assessment of the loss
of control of Trans-Kalahari Copper Namibia (Pty)
Ltd and the date this was effective;
We identified the disposal and deconsolidation of
Trans-Kalahari Copper Namibia (Pty) Ltd as a key
audit matter as it is as significant transaction and the
judgments involved in applying the requirements of
AASB 10 Consolidated Financial Statements
in
relation to determining the date when control of the
Trans-Kalahari Copper Namibia (Pty) Ltd was lost and
the fair value of consideration received.
Exploration expense
Refer to accounting policy at Note 6.2.5 and the statement of profit or loss and other comprehensive income.
• Reviewing the Company's accounting treatment
for the deconsolidation in accordance with AASB
10 Consolidated Financial Statements; and
• Assessing the adequacy of the disclosures in the
financial report.
The Group has recognised exploration expenditures
of $354,927 in the statement of statement of profit or
loss and other comprehensive income for the year
ended 30 June 2020.
Our audit procedures included:
• Ensuring that the right to tenure of the area of
interests was current;
• Performing substantive testing on the expenditure
We determined this to be a key audit matter because
it is a significant expense in the statement of profit or
loss and other comprehensive income and due to the
inherent risk in incurring expenditure in a foreign
country.
on a sample basis;
• Reviewing expenditure for any large or unusual
items;
• Assessing whether the Group’s accounting policy
for exploration and evaluation expenditure is in
compliance with Australian Accounting Standards;
and
• Assessing the adequacy of the disclosures in the
financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2020 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
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 at: https://www.auasb.gov.au/auditors_responsibilities/ar2.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 in the directors’ report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Kopore Metals 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.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 21 September 2020
ALASDAIR WHYTE
Partner
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Additional information for listed public companies
The following additional information is required by the Australian Securities Exchange in respect of listed public companies and
is current as at 25 August 2020.
Issued Capital
The Company has 642,888,899 ordinary fully paid shares on issued, held by 1,430 shareholders. Each ordinary share is entitled
to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.
The Company has 80,000,000 unlisted options on issue, as set out below. Options do not entitle the holders to vote in respect of
that option, nor participate in dividends, when declared, until such time as the options are exercised and subsequently registered
as ordinary shares.
Unlisted options exercisable at $0.06 on or before 8 November 2020
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
4
17
21
-
-
-
320,000
54,680,000
55,000,000
-
-
-
0.58
99.42
100.00
Unlisted options exercisable at $0.045 on or before 19 November 2023
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
11
1
-
-
-
-
-
-
-
-
3,000,000
3,000,000
100.00
100.00
1. Discovery Services Pty Ltd holds 3,000,000 Options comprising 100% of this class.
Unlisted options exercisable at $0.045 on or before 7 December 2023
Total Holders
Category (size of holding)
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
31,2
3
-
-
-
-
-
-
-
-
14,000,000
14,000,000
100.00
100.00
1. Fehu Capital Pty Ltd holds 8,000,000 options comprising 57.14% of this class.
2. Bond Street Custodians Limited holds 4,000,000 options comprising 28.57% of this class.
Unlisted options exercisable at $0.036 on or before 29 May 2024
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
11
1
-
-
-
-
-
-
-
-
8,000,000
8,000,000
100.00
100.00
1. BigJac Investments Pty Ltd holds 8,000,000 options comprising 100% of this class.
P a g e | 58
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Additional information for listed public companies
Substantial Shareholders as at 25 August 2020
Name
The Gas Super Pty Ltd
Number of Ordinary Fully
Paid Shares Held
64,561,766
% Held of Issued Ordinary
Capital
10.04
Distribution of Shareholders as at 25 August 2020
Category (size of holding)
Total Holders
Number
Ordinary
% Held of Issued
Ordinary Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Unmarketable Parcels as at 25 August 2020
737
141
18
153
381
1,430
174,205
291,286
131,029
8,180,937
634,111,442
642,888,899
0.03
0.05
0.02
1.27
98.63
100.00
Number of Shares
Holders
`
1,603,053
945
As at 25 August 2020 there were 945 shareholders holding less than a marketable parcel of shares.
On-Market Buy-Back
There is no current on-market buy-back.
Restricted Securities
The Company has no restricted securities on issue.
P a g e | 59
Additional information for listed public companies
20 Largest Shareholders — Ordinary Shares as at 25 August 2020
Rank / Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
THE GAS SUPER FUND PTY LT
WILGUS INVESTMENTS PTY LTD
MR MARK TRENT
FEHU CAPITAL PTY LTD
LEE MILLER INVESTMENTS PTY LTD
DISCOVERY SERVICES PTY LTD
SILVERINCH PTY LIMITED
PHEAKES PTY LTD
ICON HOLDINGS PTY LTD
10. EQUITY TRUSTEES LIMITED
11.
MOLLYGOLD SUPERANNUATION PTY LTD
12. PETERLYN PTY LTD
13. TONEHILL PTY LTD
14. MAX ASSET HOLDINGS PTY LTD
15.
SACCO DEVELOPMENTS AUSTRALIA PTY LIMITED
16. D LANEWAY INVESTMENTS PTY LTD
17.
MR KIMBERLEY ROSS GARTRELL &
MRS JENNIFER MARGARET GARTRELL
18. GLEN SUMMER INVESTMENTS PTY LTD
19. BREAMLINE PTY LTD
20. ELDON HOLDINGS PTY LTD
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Number of Ordinary Fully
Paid Shares Held
64,561,766
% Held of Issued Ordinary
Capital
10.04
30,569,318
17,000,000
16,979,302
16,000,000
15,827,925
11,800,000
11,413,806
11,187,876
10,000,000
9,187,581
9,000,000
8,600,000
8,135,541
7,513,092
7,462,695
7,000,000
6,000,000
6,000,000
6,000,000
4.75
2.64
2.64
2.49
2.46
1.84
1.78
1.74
1.56
1.43
1.40
1.34
1.27
1.17
1.16
1.09
0.93
0.93
0.93
TOTAL
280,238,902
43.59
Corporate Governance Statement
The Company’s Corporate Governance Statement for the 2020 financial year is available from the Company’s website at
www.koporemetals.com/about/corporate-governance/
P a g e | 60
KOPORE METALS LIMITED
ABN 73 149 230 811
ANNUAL REPORT 30 JUNE 2020
Tenements Schedule
Prospecting
Licence
Holder
Date Granted
PL203/2016
Icon-Trading Company (Proprietary)
PL204/2016
Icon-Trading Company (Proprietary)
PL205/2016
Icon-Trading Company (Proprietary)
PL127/2017
Ashmead Holdings (Pty) Ltd
PL128/2017
Ashmead Holdings (Pty) Ltd
PL129/2017
Ashmead Holdings (Pty) Ltd
PL135/2017
Alvis Crest (Proprietary) Limited
PL162/2017
Alvis Crest (Proprietary) Limited
1/10/2019
1/10/2019
1/10/2019
1/07/2020
1/07/2020
1/07/2020
1/10/2017
1/10/2017
Expiry Date
30/09/2021
30/09/2021
30/09/2021
30/06/2022
30/06/2022
30/06/2022
30/09/2020
30/09/2020
Project Area
(km2)
928.6
925
870.6
358.89
232.27
66.31
142.89
72.6
% Ownership
100%
100%
100%
100%
100%
100%
100%
100%
Competent Person Statement
The information in this Annual Report that relates to exploration results is based on information compiled by Mr David Catterall,
a Competent Person and a member of a Recognised Professional Organisations (ROPO). David Catterall was previously engaged
by Kopore as a consultant Exploration Manager. David Catterall has sufficient experience that is 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 2012). David Catterall is a member of the South African Council for Natural Scientific Professions, a recognised
professional organisation. The Company confirms it is not aware of any new information or data that materially affects the
information included in the relevant market announcement.
P a g e | 61